Kelly Services, Inc.
- Open
- 12.51
- Day high
- 13.21
- Day low
- 12.34
- Prev close
- 12.28
- Volume
- 148K
- Mkt cap
- $447M
- P/E (TTM)
- —
- EPS (TTM)
- —
- P/B
- 0.5
- P/S
- 0.1
- Yield
- 2.33%
- Per share
- $0.30
- ▼Insiders net selling -$293K over the last 3 months (0 open-market buys, 1 sale)
- 🏛Institutions mixed (13F)
Kelly Services, Inc. (KELYA) is a Industrials company listed on NASDAQ. The stock is up 0% over the past year. Over the trailing 3 months, insiders filed 0 open-market buys and 1 sale (SEC Form 4).
Kelly Services, Inc. (KELYA) financials & analyst ratings
Fundamentals (TTM)
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
KELYA earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| May 7, 2026 | $0.07 | $0.03 | -57.1% | $1.0B | +2.0% |
| Feb 12, 2026 | $0.45 | $0.16 | -64.4% | $1.0B | -1.3% |
| Nov 6, 2025 | $0.42 | $0.18 | -57.1% | $935M | -9.6% |
| Aug 7, 2025 | $0.54 | $0.54 | +0.0% | $1.1B | +3.3% |
| May 8, 2025 | $0.53 | $0.39 | -26.4% | $1.2B | +1.2% |
| Feb 13, 2025 | $0.65 | $0.82 | +26.2% | $1.2B | +2.9% |
| Nov 7, 2024 | $0.44 | $0.21 | -52.3% | $1.0B | -3.2% |
| May 9, 2024 | $0.47 | $0.56 | +19.1% | $1.0B | +0.0% |
| Feb 15, 2024 | $0.55 | $0.93 | +69.1% | $1.2B | +0.7% |
| Nov 9, 2023 | $0.25 | $0.50 | +100.0% | $1.1B | -4.7% |
| Aug 10, 2023 | $0.39 | $0.36 | -7.7% | $1.2B | -2.0% |
| May 11, 2023 | $0.28 | $0.40 | +42.9% | $1.3B | +2.8% |
KELYA insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Jun 22, 2026 | Young George Haywood IIIdirector | Grant | 6,000 | — |
| Jun 22, 2026 | Wartell Michael J.director | Grant | 5,000 | — |
| Jun 22, 2026 | CUBBIN ROBERT Sdirector | Grant | 5,000 | $1.00 |
| May 15, 2026 | Williams Vanessa Petersonofficer: EVP, Gen Counsel & Corp Sec | Sell | 29,999 | $9.78 |
| May 11, 2026 | McCrory Ryan B.director | Grant | 15,463 | $9.70 |
| May 11, 2026 | Wartell Michael J.director | Grant | 15,464 | — |
| May 11, 2026 | Escudero Edwarddirector | Grant | 15,464 | — |
| May 11, 2026 | Hunt James Kdirector | Grant | 15,463 | $9.70 |
| May 11, 2026 | Escudero Edwarddirector | Grant | 10,309 | — |
| May 11, 2026 | Brock-Kyle Angeladirector | Grant | 10,309 | — |
| May 11, 2026 | MURPHY LESLIE Adirector | Grant | 15,463 | — |
| May 11, 2026 | Hunt James Christopherdirector | Grant | 17,010 | — |
| May 11, 2026 | Wartell Michael J.director | Grant | 10,309 | — |
| May 11, 2026 | Hunt James Christopherdirector | Grant | 20,619 | — |
| May 11, 2026 | Brock-Kyle Angeladirector | Grant | 15,464 | — |
Source: KELYA SEC Form 4 filings, latest Jun 22, 2026. For informational purposes only — not investment advice.
See the full KELYA insider & 13F page →Kelly Services, Inc. company profile
Overview
Kelly Services, Inc. (NASDAQ:KELYA) is a global workforce solutions company founded in 1946 and headquartered in Troy, Michigan. The company has evolved from a traditional temporary staffing agency into a comprehensive talent solutions provider, offering services across multiple industries and geographies. Kelly went public in 1980 and has since grown through both organic expansion and strategic acquisitions to become one of the leading players in the staffing and employment services industry.
Business
Kelly Services operates in the staffing and employment services industry, which serves as an intermediary between companies seeking talent and individuals seeking employment opportunities. The staffing industry has evolved significantly from simple temporary labor placement to sophisticated workforce solutions that include permanent hiring, project-based work, and comprehensive talent management services. The company operates through five main business segments: 1. **Professional & Industrial (P&I)** - This segment provides traditional staffing services for office work, professional roles, light industrial positions, and contact center specialties. It represents Kelly's foundational business, connecting companies with temporary and permanent workers for general business functions. 2. **Science, Engineering & Technology (SET)** - This specialized segment focuses on highly skilled technical roles including science and clinical research, engineering, information technology, and telecommunications. The segment has been strengthened through acquisitions like Motion Recruitment Partners (MRP), which added significant IT staffing capabilities. 3. **Education** - Kelly is a market leader in K-12 educational staffing, providing substitute teachers, paraprofessionals, and other educational support staff to school districts. This segment has shown consistent double-digit growth and represents one of Kelly's most successful specialty areas. 4. **Outsourcing & Consulting Group (OCG)** - This segment offers more comprehensive solutions including Recruitment Process Outsourcing (RPO), where Kelly manages entire hiring processes for clients, Payroll Process Outsourcing (PPO), and talent advisory services. These are higher-margin services that provide ongoing relationships rather than transactional placements. 5. **International** - This segment provides staffing and direct-hire services primarily in Europe and Mexico, though the company has been divesting some international operations to focus on higher-growth domestic markets. The staffing industry serves as a crucial labor market intermediary, helping companies manage workforce flexibility during economic cycles while providing workers with employment opportunities and career development paths.
Revenue model
Kelly Services generates revenue through multiple business models depending on the service type. For traditional staffing services, the company operates on a markup model where it pays workers an hourly wage and charges clients a higher rate that includes the worker's pay plus Kelly's markup for services, benefits, and profit margin. This markup typically ranges from 25-50% depending on the skill level and specialization of the role. For permanent placement services, Kelly earns one-time fees typically calculated as a percentage of the placed candidate's first-year salary, usually ranging from 15-25%. Higher-skilled positions in the SET segment command higher fee percentages due to the specialized nature of the roles and the difficulty in finding qualified candidates. The company's higher-margin services come from outcome-based solutions and managed services in the OCG segment. RPO services involve Kelly managing entire recruitment processes for clients under multi-year contracts, providing predictable recurring revenue. PPO services generate ongoing fees for managing payroll functions, while talent advisory services command premium rates for strategic consulting. Several factors influence Kelly's profitability margins. **Positive margin drivers** include tight labor markets that increase demand for staffing services, allowing for higher bill rates; specialization in high-skill areas where Kelly can command premium pricing; and the shift toward outcome-based solutions that provide higher margins than traditional staffing. Economic growth generally increases demand for temporary and permanent staffing as companies expand operations. **Negative margin pressures** include economic downturns that reduce demand for staffing services; wage inflation that can compress margins if not passed through to clients quickly enough; increased competition from other staffing firms and direct hiring by companies; and regulatory changes that increase compliance costs or limit flexible employment arrangements. The company also faces pressure from technology platforms that enable direct connections between employers and workers, potentially disintermediating traditional staffing services.
Competitive moat
Kelly Services operates in a highly competitive industry with relatively low barriers to entry, resulting in a narrow economic moat. The company's competitive advantages are primarily based on scale, specialization, and operational efficiency rather than structural moats. **Kelly's competitive strengths** include its market-leading position in education staffing, where it has built strong relationships with school districts and developed specialized expertise in educational requirements and compliance. The company's scale provides advantages in recruiting, training, and managing large pools of temporary workers, while its broad geographic presence allows it to serve national clients across multiple locations. The recent acquisition of Motion Recruitment Partners has strengthened Kelly's position in high-growth technology staffing, providing access to specialized talent networks and client relationships in the IT sector. Kelly's investment in technology platforms like Kelly Arc for AI and automation talent represents an attempt to build differentiation in emerging skill areas. **However, the company faces significant competitive pressures** from multiple directions. Large competitors like Adecco, ManpowerGroup, and Randstad have similar scale and capabilities. Regional and specialized staffing firms often compete aggressively on price and service. Technology platforms like Upwork, LinkedIn, and Indeed increasingly enable direct connections between employers and workers, potentially reducing demand for traditional staffing intermediation. The staffing industry's low switching costs mean clients can easily move between providers, limiting pricing power. Kelly's moat is further constrained by the commoditized nature of many staffing services, where differentiation is primarily based on execution quality and pricing rather than unique capabilities or network effects. **The company's moat is best described as narrow**, relying primarily on operational excellence, specialized expertise in certain verticals, and scale advantages rather than structural competitive barriers. Success depends heavily on execution, market positioning, and the ability to adapt to changing labor market dynamics.
Risks & safety
Kelly Services presents a moderate margin of safety profile with mixed financial health indicators. **Cash and Liquidity Position:** - Cash and short-term investments of $28.2 million as of Q1 2025, down from $39 million in Q4 2024 - Current ratio of 1.64, indicating adequate short-term liquidity - Free cash flow of $21.4 million in Q1 2025, showing positive cash generation - Debt-to-equity ratio of 0.21, representing manageable leverage levels **Profitability and Earnings Stability:** - Volatile earnings with net income of $5.8 million in Q1 2025 vs. -$31 million in Q4 2024 - EBITDA of $25.2 million in Q1 2025 vs. negative $37.3 million in Q4 2024 - Adjusted EBITDA margins have improved but remain relatively low at 2-4% range - Revenue cyclicality tied to economic conditions creates earnings volatility **Valuation Metrics:** - P/E ratio of 19.9 based on recent quarters' earnings - Price-to-book ratio of 0.37, suggesting potential undervaluation - EV/EBITDA of 6.9, reasonable for the industry - Graham number of 11.5 vs. current price around $12.53 **Other Considerations:** - Integration costs from MRP acquisition creating near-term earnings pressure - Ongoing transformation initiatives requiring investment - Exposure to economic cycles affecting staffing demand - Leadership transition with CEO retirement adding uncertainty
Recent development
Kelly Services has undergone significant strategic transformation over the past few years, focusing on specialization, operational efficiency, and strategic acquisitions. The most significant development was the acquisition of Motion Recruitment Partners (MRP) for over $500 million, which substantially expanded Kelly's capabilities in technology staffing and added complementary services across IT, federal government, and telecommunications specialties. The company has been actively consolidating its operations for greater efficiency, most notably combining the Outsourcing & Consulting Group (OCG) and Professional & Industrial (P&I) segments into a unified Enterprise Talent Management (ETM) division. This organizational restructuring aims to eliminate redundancies and create synergies between related service offerings. Kelly has also been divesting non-core assets, including the sale of its European staffing business to GI Group for over $100 million, allowing the company to focus resources on higher-growth domestic markets. The company has invested heavily in technology platforms, including the development of Kelly Arc for AI and automation talent placement, positioning itself in emerging high-demand skill areas. The education segment has been a particular success story, achieving consistent double-digit growth and establishing Kelly as the market leader in K-12 staffing. The company has focused on improving fill rates and bill rates in this segment while expanding its geographic footprint. Recent quarters have seen the company implementing targeted cost improvement actions and accelerating the integration of MRP across its technology and government specialties. Kelly has also launched integrated permanent hiring solutions to complement its traditional staffing services, aiming to capture more value from client relationships through comprehensive talent solutions.
KELYA company profile · for informational purposes only — not investment advice.
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