Kelly Services misses top-line and bottom-line estimates; initiates Q4 outlook

* Kelly Services press release [https://seekingalpha.com/pr/20296502-kelly-reports-third-quarter-2025-earnings] (KELYA [https://seekingalpha.com/symbol/KELYA]): Q3 Non-GAAP EPS of $0.18 misses by $0.23.
* Revenue of $935M (-10.1% Y/Y) misses by $85M.

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FISCAL 2025 FOURTH QUARTER FINANCIAL OUTLOOK:

FOR THE 2025 FISCAL FOURTH QUARTER, the Company assumes no material change in the macroeconomic or industry dynamics relative to the third quarter, and a positive resolution to the current federal government shutdown during the quarter. The Company’s fourth quarter outlook is as follows:

* Total year-over-year revenue decline of 12% to 14% (VS. ESTIMATED GROWTH OF -2.80% Y/Y) , including approximately 8% of impact due to reduced demand for federal contractors and from discrete large customers. The underlying revenue decline of 4% to 6% increased relative to the third quarter due to strong growth in the fourth quarter of last year and includes a modest impact related to the government shutdown.
* Adjusted EBITDA margin of approximately 3%, reflecting year-over-year decline similar to the third quarter of 2025, and a sequential increase from the third quarter consistent with 2024, despite the relative revenue pressure.

QUARTERLY CASH DIVIDEND:

Kelly also reported that on November 3, its board of directors declared a dividend of $0.075 per share. The dividend is payable on December 3, 2025 to stockholders of record as of the close of business on November 19, 2025.

MORE ON KELLY SERVICES

* Kelly Services, Inc. 2025 Q2 - Results - Earnings Call Presentation [https://seekingalpha.com/article/4812105-kelly-services-inc-2025-q2-results-earnings-call-presentation]
* Kelly Services, Inc. (KELYA) Q2 2025 Earnings Call Transcript [https://seekingalpha.com/article/4812104-kelly-services-inc-kelya-q2-2025-earnings-call-transcript]
* Kelly Services Q3 2025 Earnings Preview [https://seekingalpha.com/news/4515948-kelly-services-q3-2025-earnings-preview]
* Seeking Alpha’s Quant Rating on Kelly Services [https://seekingalpha.com/symbol/KELYA/ratings/quant-ratings]
* Historical earnings data for Kelly Services [https://seekingalpha.com/symbol/KELYA/earnings]