KELYBHIGH SIGNALFINANCIAL10-K

KELYB experienced massive revenue growth (+322.5%) but catastrophic profitability deterioration with net losses expanding from -$600K to -$254.1M.

This extreme divergence between revenue growth and profitability suggests either a major acquisition, significant operational inefficiencies, or substantial one-time charges that management has not adequately explained. The dramatic swing in financial performance coupled with reduced disclosure about business segments raises serious questions about the company's strategic direction and operational control.

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

KELYB's financials present a highly concerning picture despite strong top-line growth, with revenue surging 322.5% to $5.4B while net losses exploded over 42,000% to -$254.1M and operating losses widened 362% to -$69.8M. The company did improve its balance sheet by reducing total debt 57% and generating much stronger operating cash flow (+355.8% to $122.6M), but stockholders' equity declined 20.9% and overall assets contracted 14.5%. This combination of massive revenue growth with deteriorating profitability and shrinking equity base suggests either poorly integrated acquisitions or fundamental operational challenges that pose significant risks to shareholder value.

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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