KELYAHIGH SIGNALFINANCIAL10-K

KELYA experienced massive revenue growth (+322.5%) but suffered catastrophic profitability deterioration with net losses exploding from -$0.6M to -$254.1M.

This extreme disconnect between revenue growth and profitability suggests either a major acquisition integration gone wrong, significant one-time charges, or fundamental operational inefficiencies at scale. The 42,250% increase in net losses despite quadrupling revenue indicates severe margin compression that requires immediate management attention and investor scrutiny.

Comparing 2026-02-12 vs 2025-02-13View on EDGAR →
FINANCIAL ANALYSIS

The company's financial profile underwent a dramatic transformation with revenue surging 322.5% to $5.4B while profitability collapsed spectacularly, turning a modest $0.6M loss into a devastating $254.1M loss. Operating cash flow improved significantly (+355.8%) and debt was substantially reduced (-57.4%), suggesting the underlying business generates cash despite massive P&L losses, likely indicating major one-time charges or acquisition-related expenses. The combination of massive revenue growth, improved cash generation, and catastrophic reported losses creates a complex picture that demands detailed analysis of the underlying drivers behind these contradictory metrics.

FINANCIAL STATEMENT CHANGES
Net Income
P&L
-42250%
-$600K→-$254.1M

Net income declined 42250% — review whether driven by operations, interest costs, or non-recurring items.

Operating Income
P&L
-362.3%
-$15.1M→-$69.8M

Operating income deteriorated sharply — investigate whether driven by one-time charges or structural cost issues.

Operating Cash Flow
Cash Flow
+355.8%
$26.9M→$122.6M

Operating cash flow surged 355.8% — exceptional cash generation, highest quality earnings signal.

Revenue
P&L
+322.5%
$1.3B→$5.4B

Strong top-line growth of 322.5% — accelerating demand or successful expansion into new markets.

Total Debt
Balance Sheet
-57.4%
$239.4M→$101.9M

Debt reduced 57.4% — deleveraging strengthens balance sheet and reduces financial risk.

Stockholders Equity
Balance Sheet
-20.9%
$1.2B→$976.5M

Equity decreased 20.9% — buybacks or losses reducing book value, monitor solvency ratios.

Cash & Equivalents
Balance Sheet
-15.4%
$39.0M→$33.0M

Cash decreased 15.4% — monitor burn rate and upcoming capital needs.

Total Assets
Balance Sheet
-14.5%
$2.6B→$2.3B

Total assets contracted 14.5% — asset sales, write-downs, or balance sheet optimization underway.

LANGUAGE CHANGES
NEW — 2026-02-12
PRIOR — 2025-02-13
ADDED
Registrant had 30,915,587 shares of Class A and 3,295,941 shares of Class B common stock, par value $1.00 per share, outstanding as of February 01, 2026.
CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE.
SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS.
CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS AND DIRECTOR INDEPENDENCE.
45 INDEX TO FINANCIAL STATEMENTS 46 SCHEDULE II - VALUATION RESERVES 93 SIGNATURES 97 3 PART I Unless the context otherwise requires, throughout this Annual Report on Form 10-K the words Kelly, Kelly Services, the Company, we, us and our refer to Kelly Services, Inc.
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REMOVED
Registrant had 31,592,205 shares of Class A and 3,295,841 shares of Class B common stock, par value $1.00 per share, outstanding as of February 2, 2025.
2 PART I Unless the context otherwise requires, throughout this Annual Report on Form 10-K the words Kelly, Kelly Services, the Company, we, us and our refer to Kelly Services, Inc.
In 1996, Kelly established the industry s first Managed Service Provider ("MSP") program.
Three years later, the Company launched specialized offerings in engineering, IT and education.
In 2020, Kelly launched a new operating model comprising five specialty business units: Kelly Professional Industrial ("P I"); Kelly Science, Engineering Technology ("SET"); Kelly Education; KellyOCG ("Outsourcing Consulting" or "OCG"); and Kelly International.
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