Kelly Services, Inc. is a global leader in workforce solutions, founded in 1946 by William Russell Kelly and headquartered in Troy, Michigan. The company operates through five divisions: Professional & Industrial, Science, Engineering & Technology, Education, Outsourcing & Consulting, and International. It provides flexible staffing, permanent placement, RPO, payroll administration, ...Kelly Services, Inc. is a global leader in workforce solutions, founded in 1946 by William Russell Kelly and headquartered in Troy, Michigan. The company operates through five divisions: Professional & Industrial, Science, Engineering & Technology, Education, Outsourcing & Consulting, and International. It provides flexible staffing, permanent placement, RPO, payroll administration, and talent advisory services to clients in North America, Europe, and Asia-Pacific. With a workforce of over 5,000 internal employees, Kelly connects more than 450,000 people with work annually. Financially, the company has a market cap of ~$526 million, revenue per share of $117.09, and has faced recent losses with a net profit margin of -6.7%. Despite challenges, Kelly continues to innovate in human capital management, focusing on technology and specialized talent solutions.
YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength.
QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes.
RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three).
$4.3B
-1.9%
-0.2%
Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day.
$-254.1M
-42250.0%
+293.2%
Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials.
+20.1%
-1.5%
+13.9%
Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on).
-1.6%
-371.0%
+796.6%
Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales.
-6.0%
-43056.0%
+293.7%
Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock.
$114.1M
+622.2%
+280.0%
FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine.
+2.7%
+635.9%
+280.4%
Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe.
16.3%
-33.5%
-31.0%
Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking.
1.54x
-6.6%
-5.7%
Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground.
Operator: Good morning, and welcome to Kelly Services Second Quarter 2026 Earnings Conference Call. [Operator Instructions] Today's call is being recorded at the request of Kelly Services. If anyone has any objections, you may disconnect at this time. I would now like to turn the meeting over to your host, Mr. Scott Thomas, Kelly's Head of Investor Relations. Please go ahead.
Scott Thomas: Good morning, and welcome to Kelly's Second Quarter Conference Call. With me today are Kelly's Chief Executive Officer, Chris Layden; and our Chief Financial Officer, Troy Anderson. Before we begin, I'll remind you that the comments made during today's call, including the Q&A session, may include forward-looking statements about our expectations for future performance. Actual results could differ materially from those suggested by our comments. We do not assume any obligation to update the statements made on this call. Please refer to our SEC filings for a description of the risk factors that could influence the company's actual future performance. In addition, we'll discuss certain data on a reported and on an adjusted basis. Discussion of items on an adjusted basis are non-GAAP financial measures designed to give insight into certain trends in our operations. For more information regarding non-GAAP measures and other required disclosures, please refer to our earnings press release, presentation and once filed Form 10-Q, all of which can be accessed through our Investor Relations website at ir.kellyservices.com. With that, I'll turn the call over to Chris.
Chris Layden: Thank you, Scott, and good morning, everyone. It's great to be with all of you. In the second quarter, we measurably exceeded our guidance for both total company revenue and adjusted EBITDA margin. These results were driven primarily by positive momentum from our growth and efficiency initiatives. We continue to capitalize on organic growth drivers and constructive demand trends across the enterprise as well. Notably, Kelly's adjusted EBITDA margin returned to 3% in the quarter. This achievement demonstrates our ability to generate operating leverage in pursuit of growth as we continue to reengineer our cost base while driving greater value for our customers as a strategic workforce partner. The value we deliver continue to be recognized in the quarter as Everest Group named Kelly a leader in its 2026 Peak Matrix for RPO and for staffing and solutions in engineering, IT, business and professional and industrial. In addition, Forbes once again ranked Kelly among America's best temporary staffing and professional recruiting companies. These accolades are a testament to 80 years of industry leadership and our unwavering focus on meeting the evolving needs of our customers and talent. At the segment level, we delivered sequential improvements in each of our businesses. ETM capitalized on broad-based demand for professional and industrial staffing among both new and existing customers. Talent …