Kelly Services Reports Q1 Loss Amid Revenue Decline, Projects H2 Recovery

summarizeSummary

Kelly Services reported a Q1 2026 net loss and significant revenue and adjusted EBITDA declines, but maintained its full-year outlook, projecting a return to growth and margin expansion in the second half.

check_boxKey Events

• Q1 Revenue Decline

  Revenue decreased 10.7% year-over-year to $1.0 billion, with underlying revenue down 3.3% excluding discrete impacts.

• Net Loss Reported

  The company posted a net loss of $5.9 million, compared to net earnings of $5.8 million in Q1 2025.

• Adjusted EPS Drop

  Adjusted earnings per share fell sharply to $0.03 from $0.39 in the prior year quarter.

• Adjusted EBITDA Halved

  Adjusted EBITDA declined 54.7% to $15.8 million, with the margin decreasing by 150 basis points to 1.5%.

auto_awesomeAnalysis

Kelly Services reported a net loss of $5.9 million for Q1 2026, a significant deterioration from a net profit in the prior year, driven by a 10.7% year-over-year revenue decrease to $1.0 billion and a 54.7% drop in adjusted EBITDA. Adjusted earnings per share fell to $0.03 from $0.39. While these results reflect continued business stabilization challenges, management maintained its full-year outlook, anticipating sequential improvement in Q2 and a return to modest organic revenue growth and adjusted EBITDA margin expansion in the second half of 2026. This forward guidance provides a potential path to recovery, but investors will closely monitor whether the company can execute on these projections given the current declines.