Kelly Services Posts $4.3B Revenue Down 1.9%, $114M Free Cash Flow
Kelly Services reported full-year 2025 revenue of $4.3 billion, down 1.9%, while free cash flow rose sixfold to $114 million and it deployed $158 million toward debt reduction and buybacks. In Q4, adjusted EBITDA was $21.0 million (2.0% margin); company forecasts organic revenue growth and margin expansion in H2 2026.
1. Full-Year 2025 Results
Kelly Services generated $4.3 billion in revenue for 2025, down 1.9% as reported and flat on an adjusted basis excluding acquisitions and discrete impacts. Free cash flow rose to $114 million, a sixfold increase year-over-year, and the company deployed $158 million toward debt repayment and share repurchases.
2. Q4 Performance
In the quarter ended December 28, 2025, revenue fell 11.9% to $1.1 billion, driven by weaker demand in ETM and SET segments and discrete impacts totaling 8%. The company posted a $0.7 million operating loss versus $56.7 million last year, while adjusted EBITDA reached $21.0 million with a 2.0% margin.
3. Cost Efficiency Initiatives
Adjusted SG&A expenses declined 11.1% in Q4, reflecting progress on structural and demand-driven expense optimization, including integration of recent acquisitions and technology modernization. The first milestone of consolidating SET acquisitions onto a unified platform was completed, laying groundwork for enterprise-wide deployment.
4. 2026 Outlook
For Q1 2026, revenue is expected to decline 11%–13% year-over-year (3%–5% on an underlying basis) with an adjusted EBITDA margin of about 1.5%. The company anticipates sequential improvement each successive quarter and aims for organic revenue growth and adjusted EBITDA margin expansion in the second half of 2026.