Kelly Third-Quarter Revenue Totals $927 Million: Up 2.3% Excluding Discrete Impacts as Board Renews $50 Million Buyback
Troy — Kelly (Nasdaq: KELYA, KELYB), the specialty talent solutions provider headquartered in Troy, Michigan, on November 5 reported results for the third quarter of 2026: revenue was $927.2 million, down 0.8% year over year, an improvement of 500 basis points versus the prior quarter, while underlying revenue excluding previously disclosed discrete impacts grew 2.3%.
By segment, Enterprise Talent Management (ETM) revenue rose 2.4% as reported and 7.7% on an underlying basis, while Science, Engineering and Technology (SET) revenue fell 2.0% as reported and 0.8% underlying, with underlying performance improving 460 and 220 basis points versus the prior quarter, respectively. The Education segment continued to be weighed down by reduced student enrollment in key markets.
Operating earnings were $0.6 million, compared with a loss of $102.1 million a year earlier, when results included a $102.0 million non-cash goodwill impairment charge. Adjusted operating earnings were $6.1 million, up from $4.3 million; adjusted EBITDA rose 29.1% to $21.3 million, with the margin expanding 50 basis points to 2.3% on a higher gross profit rate and continued expense discipline. The company posted a loss of $0.05 per share, versus a loss of $4.26 a year earlier, and adjusted earnings of $0.07 per share, versus $0.17.
For the first nine months of 2026, revenue fell 6.1% to $3.0 billion; discrete impacts from reduced demand for U.S. federal government contractors in SET and from three large commercial customers in ETM totaled about 5.4%, leaving an underlying decline of about 0.7%. Nine-month operating earnings were $11.6 million and adjusted EBITDA was $68.2 million.
Chief Executive Officer Chris Layden said third-quarter results came in above the midpoint of guidance, driven by progress on growth and efficiency initiatives and increasingly constructive demand trends, with year-over-year revenue improving sequentially for a third consecutive quarter and ETM pivoting to positive growth.
For the fourth quarter, Kelly expects revenue to be flat to up 1% year over year and adjusted EBITDA margin of 3.8% to 4.0%, up 180 to 200 basis points; the quarter includes an extra fiscal week expected to add about three points to revenue growth. For the full year, the company expects a mid-single-digit total revenue decline and an adjusted EBITDA margin of 2.6% to 2.7%.
On November 4, the board declared a dividend of $0.075 per share, payable December 2 to stockholders of record on November 18, and approved renewal and extension of the share repurchase program, authorizing repurchases of up to $50.0 million of Class A common stock with no expiration date. Founded in 1946 and headquartered in Troy, Kelly connects about 375,000 people with work each year; revenue in 2025 was $4.3 billion. (Source: Kelly Services)
Source: Kelly Services
Published by GSM · USA (original Chinese edition)
Photo: 图：密歇根大学一场招聘会现场，求职者与招聘方面对面交流（资料图）。University of Michigan School for Environment and Sustainability 摄，CC BY 2.0，经 Wikimedia Commons。 / Photo: Job seekers talk with recruiters at a University of Michigan career fair (file photo). By University of Michigan School for Environment and Sustainability, CC BY 2.0, via Wikimedia Commons.
