Kelly Services Q1 Revenue Drops 10.7% to $1B, Adjusted EBITDA $15.8M
Kelly Services reported Q1 revenue of $1.0 billion, down 10.7% year-over-year with underlying revenue excluding discrete impacts declining 3.3% and improving 60 basis points sequentially. Adjusted EBITDA was $15.8 million, margin 1.5%, while adjusted SG&A fell 10.3% and operating loss narrowed relative to the prior quarter.
1. First-Quarter Financial Results
Kelly Services generated $1.0 billion in Q1 revenue, down 10.7% year-over-year. Adjusted SG&A fell 10.3%, yielding a $5.1 million operating loss and $4.1 million of adjusted operating earnings. Adjusted EBITDA reached $15.8 million with a 1.5% margin, improving 20 basis points sequentially.
2. Segment Performance
The ETM segment showed sequential strength, contributing to underlying revenue excluding discrete impacts down 3.3%. The SET segment saw pockets of growth in Telecom and Science specialties, while the Education segment faced headwinds from delayed contracts and lower enrollments.
3. Outlook and Guidance
The company affirmed expectations for year-over-year revenue and EBITDA margin improvements in each successive quarter of 2026, targeting a return to organic revenue growth and margin expansion in the second half of the year.
4. Dividend and Capital Allocation
The board declared a quarterly cash dividend of $0.075 per share, payable June 2, 2026 to shareholders of record as of May 18, 2026.