Kelly Services, Inc. (KELYA): Business Model Canvas [Dec-2025 Updated]

You're looking at Kelly Services, Inc.'s Business Model Canvas now, which is the right move since they've been busy buying up specialized talent firms like Motion Recruitment Partners and Sevenstep to reshape their core. Honestly, the old staffing model is evolving fast; they are now heavily leaning on outcome-based contracts and high-demand sectors like SET (Science, Engineering, and Technology) to drive results. This shift is tangible: Q2 2025 revenue came in at $1.1 billion, marking a 4.2% increase year-over-year, showing their new structure is starting to work. Below, I've mapped out the nine essential blocks-from their key activities to their cost structure-so you can see the exact blueprint Kelly Services, Inc. is using to compete in this tight labor market.

Kelly Services, Inc. (KELYA) - Canvas Business Model: Key Partnerships

You're looking to understand the backbone of Kelly Services, Inc.'s (KELYA) operations through its Key Partnerships as of late 2025. This network is critical, especially following major inorganic moves designed to shift the company toward higher-margin, technology-enabled solutions.

Strategic Acquisitions: Motion Recruitment Partners (MRP) and Sevenstep Integration

The acquisitions of Motion Recruitment Partners (MRP) in 2024 and its brand Sevenstep in 2025 were pivotal. This integration combined KellyOCG's global Recruitment Process Outsourcing (RPO) specialty with Sevenstep's brand and client base. This deliberate consolidation elevated Kelly Services into the top five global talent solutions providers. The RPO market itself is estimated to be worth $6-8 billion globally, growing at 8-10% annually. The initial cash outlay for MRP was $425 million, with an additional earnout potential up to $60 million based on performance criteria. This move was intended to capture higher-margin business and accelerate EBITDA margin expansion.

The scale of this newly unified RPO business line is substantial:

Global Network of Third-Party Staffing Suppliers (KellyOCG Supplier Excellence)

Kelly Services connects over 400,000 people with work annually, largely facilitated by its global supply chain managed through KellyOCG. The Supplier Excellence Awards, in their 12th iteration in May 2025, highlight the best performers within this vast network. These recognized suppliers represent the elite, making up less than 1% of the total KellyOCG supply chain.

Here's a look at the structure and recognition within this partnership tier:

• Total active partnerships in the KellyOCG supply chain: 5,400 around the world.
• Number of 2024 Supplier Excellence Award winners recognized in May 2025: 11.
• The Innovative Partner Award went to US Tech Solutions for developing Kelly's Direct Sourcing 360 product.

Technology Partners for AI and Platform Modernization

Modernization is heavily reliant on technology partnerships and internal development. Kelly Services is integrating AI into core SaaS platforms like Bullhorn and Workday. Internally, the proprietary AI interface, Grace, supports close to 5,000 users, with an associated AI spend of about $700 a month as of June 2025. This technology focus is yielding results; the AI-powered platform Kelly Now has demonstrated the ability to cut the typical hiring timeline from 45 days to just hours in some instances. The company's Q1 2025 revenue of $1.16 billion reflected growth partly driven by these AI-driven modernization efforts.

Key Enterprise Clients like John Deere for Outsourcing Services

Long-standing, high-value client relationships remain a core partnership element. KellyOCG supplies Managed Service Provider (MSP) and RPO solutions to John Deere's operations across the U.S. and Canada. KellyOCG has consistently achieved the Partner-level supplier status in the John Deere Achieving Excellence Program, which is Deere & Company's highest rating. This recognition was earned for 2023 (announced April 2024) and again for 2024 (announced April 2025), marking the fifth time at this level. This evaluation is based on key performance categories including quality, delivery, process alignments, and value creation.

Partnerships with Educational Institutions to Address Talent Gaps

Kelly Education is a segment that showed growth in Q3 2025, indicating active partnerships in the education sector. For example, Kelly Education launched a tiered professional learning program in Illinois in April 2025 to elevate substitute teaching standards, addressing the fact that 90% of Illinois districts struggled to fill teacher vacancies.

Finance: review Q4 2025 forecast for the Education segment against Q3 actuals by next Tuesday.

Kelly Services, Inc. (KELYA) - Canvas Business Model: Key Activities

You're looking at how Kelly Services, Inc. actually makes money and keeps the lights on in late 2025, which is all about executing complex talent solutions across specialized areas. The core activities revolve around service delivery, strategic integration, and heavy technology deployment.

Delivering specialized staffing services across three core segments.

Kelly Services, Inc. focuses its delivery across distinct segments, though the financial picture shows variability depending on the macro environment and the impact of recent inorganic growth. For instance, in the second quarter of 2025, the Education segment showed resilience, growing by 5.6% year-over-year when excluding the MRP acquisition impact, and by 6.1% overall for that quarter. However, the Science, Engineering & Technology (SET) segment faced headwinds, with its organic revenue declining by 8.5% in Q2 2025. By the third quarter of 2025, revenue for the entire company was $935.0 million, a 9.9% decrease year-over-year, with the SET segment showing a consistent rate of decline.

Here's a quick look at how the revenue stacked up in the first three quarters of 2025:

The Education segment, tied to K-12 staffing, remains a more stable area, showing growth of 0.9% in Q3 2025.

Executing Recruitment Process Outsourcing (RPO) and BPO contracts.

A key activity is managing large-scale outsourcing contracts, which is a major focus following recent strategic moves. Kelly Services, Inc. is now positioned among the top five global talent solutions providers, largely due to its RPO scale. In Q2 2025, the company noted strong performance in the Payroll Process Outsourcing (PPO) specialty within its Enterprise Talent Management (ETM) segment. The integration of Sevenstep, which brought an industry-leading brand and client base, specifically aimed to elevate the KellyOCG RPO segment. This execution involves managing complex global service delivery across 71 countries supported by 33 in-country teams.

Integrating acquired businesses (MRP, Sevenstep) for cost and market efficiencies.

The integration of Motion Recruitment Partners (MRP), acquired in May 2024 for $425 million plus potential earnouts up to $60 million, is a critical, ongoing activity. This integration is explicitly designed to drive EBITDA margin expansion. In Q2 2025, the reported revenue increase of 4.2% was primarily attributed to the MRP acquisition. Specifically within the SET segment, the reported revenue was up 19% on a reported basis, driven by MRP's inclusion, and this acquisition contributed 70 basis points of gross profit rate improvement in the quarter. The integration of Sevenstep with KellyOCG formed a new integrated permanent hiring solutions business line.

• The acquisition of MRP was the largest in Kelly Services, Inc.'s history as of its announcement.
• The integration effort involves realigning sales, recruiting, and functional teams under a specialty-based go-to-market strategy.
• The goal is to leverage MRP's modern tech stack, which includes Workday, Bullhorn, and a CRM, to streamline operations.

Developing and deploying AI-driven recruitment technology like GRACE.

Kelly Services, Inc. is actively deploying proprietary technology to enhance recruiter productivity and client service quality. The internal AI interface, named Grace, is a significant part of this. Currently, Grace supports close to 5,000 users across the organization. The operational cost for this powerful tool is remarkably low, running at about $700 a month in AI spend. This technology helps automate repetitive tasks; for example, resume reformatting functionality was built directly into Grace based on user feedback. Early testing showed tangible benefits, including a 20% reduction in time-to-hire for specific roles like data scientists. This AI-driven modernization contributed to Q1 2025 revenue growth of 11.5% to $1.16 billion.

Managing a global contingent workforce and compliance for clients.

Managing the contingent workforce involves balancing service delivery with compliance across a dynamic global footprint. While specific compliance metrics aren't detailed, the operational scale is evident in the company's reported performance metrics. For example, the company's Q2 2025 results showed a year-over-year revenue decline of 1.1% organically, partially due to reduced demand for U.S. federal government contractors. Furthermore, in Q3 2025, lower demand from federal contractors and certain large customers was a primary driver for the 9.9% year-over-year revenue decrease. This indicates that managing client-specific demand fluctuations, especially in government-related contracts, is a constant, high-stakes activity. The company also aims to expand gig worker optimization in volatile sectors like healthcare and construction.

Finance: draft Q4 2025 cash flow forecast by next Tuesday.

Kelly Services, Inc. (KELYA) - Canvas Business Model: Key Resources

You're looking at the core assets Kelly Services, Inc. (KELYA) relies on to deliver its specialty talent solutions. These aren't just line items on a balance sheet; they are the engines driving service delivery and market positioning in late 2025.

The most tangible resources are financial. As of the second quarter ended June 29, 2025, Kelly Services reported a cash and equivalents balance of $18.0 million. Total borrowing stood at $74 million at the end of that same quarter, following a $130 million net paydown on debt during the period. Total available liquidity was reported at $301 million, which included the $18 million cash on hand plus $283 million of available liquidity on credit facilities, giving the firm flexibility for capital deployment.

The human capital is centered around specialized expertise. Kelly Services organizes its operations around three primary business units: Enterprise Talent Management (ETM), Science Engineering and Technology (SET), and Education. The focus on high-demand areas is evident in the results; for instance, the SET segment saw reported revenue growth of 19.4% year-over-year in Q2 2025, largely due to the integration of the Motion Recruitment Partners acquisition. The scale of this human capital network is significant, with Kelly connecting more than 400,000 people with work every year.

Technological assets are increasingly critical for efficiency. Kelly is actively positioning itself to harness the potential of Artificial Intelligence (AI) to drive profitable growth. A concrete example of this digital resource is the Kelly Now mobile application, introduced in the U.S. to enhance local delivery models for both clients and talent.

The infrastructure supporting global Managed Service Provider (MSP) solutions is broad, though it has recently been streamlined. While the prompt mentioned 70 countries, recent operational shifts indicate a more focused global footprint. Kelly maintains a presence across key regions, specifically serving North and South America, AsiaPacific, Europe, the Middle East, and Africa. This infrastructure supports global solutions like MSP and Recruitment Process Outsourcing (RPO), even after the sale of its European staffing operations in 2024.

Brand equity is a foundational, long-term resource. Kelly Services invented the staffing industry, having been founded in 1946. This history of over 78 years provides strong brand recognition, which the company leverages as a leading specialty talent solutions provider serving 91 of the world's top 100 brands.

Here's a quick summary mapping the key financial and operational scale points as of Q2 2025:

The company's strategic focus is reflected in its segment performance, which you can see broken down by reported revenue contribution for the first half of 2025:

• Enterprise Talent Management (ETM): 51% (TTM Q2 2025)
• Science, Engineering & Technology (SET): 27% (TTM Q2 2025)
• Education (EDU): 22% (TTM Q2 2025)

If you're assessing KELYA's ability to execute on high-value contracts, note that the SET segment, which includes technology and engineering talent, is a major component of their reported revenue mix. Finance: draft 13-week cash view by Friday.

Kelly Services, Inc. (KELYA) - Canvas Business Model: Value Propositions

Access to high-quality, specialized talent in high-demand sectors like SET.

Kelly Services, Inc. connects more than 400,000 people with work every year through its network of suppliers and partners.

For the Science, Engineering & Technology (SET) segment, revenue for the thirteen-week period ended September 28, 2025, was $113.7 million, representing a year-over-year decline of 9.0% for the quarter. The year-to-date revenue for the SET segment through the first nine months of 2025 reached $335.0 million.

The value proposition is supported by the broader gig economy context in 2025, where:

• 70+ million Americans identify as gig workers.
• 5.6 million independent workers in the US earned over $100,000 annually in 2025.
• 82% of freelancers report more job opportunities in 2025 due to remote hiring.

The specialized talent offering is quantified by segment performance:

Scalable, flexible workforce solutions to manage client costs and risk.

Kelly Services, Inc. reported total revenue from services of $935.0 million for the thirteen-week period ended September 28, 2025. The company demonstrated expense management, with adjusted Selling, general and administrative expenses declining by 9.7% year-over-year in Q3 2025.

Flexibility and cost management are reflected in margin expectations:

• Q3 2025 adjusted EBITDA margin was 1.8%, a decrease of 70 basis points year-over-year.
• The company expects an adjusted EBITDA margin of approximately 3% for the fourth quarter of 2025.

Outcome-based solutions (RPO/BPO) for improved efficiency and talent supply chain.

The Enterprise Talent Management (ETM) segment, which includes outcome-based services like payroll process outsourcing, generated $129.1 million in revenue for Q3 2025. This segment experienced a decline of 13.1% year-over-year for the quarter. For the first nine months of 2025, adjusted earnings were $51.0 million.

Reliable K-12 staffing and fill-rate improvement for school districts.

The Education segment is a resilient area, posting revenue of $142.1 million in Q3 2025, marking growth of 0.9% year-over-year. Kelly Education supports over 10,000+ schools with their workforce needs.

Specific performance metrics in K-12 staffing include:

• One Florida district saw a 42 percentage point substitute teacher fill rate lift.
• In a prior period, Kelly covered nearly 1,000 long term substitute teacher positions at an 87% fill rate.
• The Education segment maintained a gross profit rate of 14.1% in Q3 2025, an increase of 20 basis points year-over-year.

Offering remote and flexible work opportunities for the professional gig worker.

The value proposition for the professional gig worker aligns with the overall market trend where 63% of gig workers say they prefer a flexible work schedule to a bigger salary. For the first nine months of 2025, total revenue was $3.2 billion.

The company's commitment to this segment is seen in its overall connection of people to work:

Kelly Services, Inc. (KELYA) - Canvas Business Model: Customer Relationships

You're looking at how Kelly Services, Inc. manages its client interactions in late 2025, a period where operational discipline and targeted growth are key, especially after the Q3 2025 results showed a 9.9% year-over-year revenue decrease to $935.0 million.

Consultative, high-touch sales for large Enterprise Talent Management (ETM) clients.

For large Enterprise Talent Management (ETM) clients, the relationship model centers on deep integration and maximizing value capture. Kelly Services, Inc. explicitly focuses on a market strategy within ETM to further enhance the delivery of its full suite of offerings and increase share-of-wallet. This consultative approach is critical, as evidenced by the significant impact of large customer dynamics; in Q3 2025, discrete impacts from three large private sector customers accounted for a portion of the revenue decline, which was consistent with expectations. For the fourth quarter of 2025 outlook, the company projected an 8.0% reduction related to these discrete customers and federal contractors within the ETM segment. The ETM segment itself saw an underlying revenue decline of approximately 1.9% in Q3 2025, excluding those discrete impacts.

Dedicated account management teams for specialized segments (SET, Education).

The structure relies on specialized teams aligning with the distinct needs of the Science, Engineering & Technology (SET) and Education segments. In Q2 2025, the Education segment showed reported revenue growth of 5.6% (or 5.3% organically), indicating successful relationship management in that market. Conversely, the SET segment organic revenue declined by 8.5% in Q2 2025, though this was partially masked by the acquisition impact. By Q3 2025, the SET segment revenue was down 9% reported, or 3.5% excluding the federal government impact. This segmentation necessitates dedicated management to navigate varied demand curves, such as the continued strength in K-12 staffing within Education noted in Q2 2025.

Tech-enabled self-service and AI-powered offerings for scale.

Kelly Services, Inc. is actively transforming operations to enhance efficiency, which includes technology modernization as a key expense optimization initiative. Management highlighted opportunities in AI talent solutions during the Q3 2025 earnings discussion. The focus on efficiency is reflected in the adjusted SG&A expense reduction of 9.7% year-over-year in Q3 2025, driven by structural and demand-driven efforts, which would include scaling technology use. While specific self-service adoption rates aren't public, the commitment to technology modernization supports scalable, less high-touch interactions where appropriate.

Long-term, performance-based contracts for outcome-based services.

The relationship is increasingly moving toward outcome-based service contracts, which are higher-margin. Since 2020, Kelly Services, Inc. has been shifting its revenue mix toward these higher-margin solutions, including Managed Service Provider (MSP) and Recruitment Process Outsourcing (RPO). In Q2 2025, outcome-based offerings (excluding contact center solutions) demonstrated resilience, growing 2% year-over-year, driven by the ETM segment. These contracts structure client payment contingent on volume managed, a monthly management fee, or a per-unit basis for services performed related to an outsourced process or project. The company maintained its quarterly cash dividend at $0.075 per share, reflecting confidence in its cash flow generation, which is supported by this strategic mix shift.

The following table summarizes the reported revenue performance across the three primary customer-facing segments for the third quarter of 2025, illustrating the current focus areas:

The gross profit rate for Q3 2025 was 20.8%, a 60 basis point decrease versus the prior year quarter, with ETM's rate down slightly and SET's rate declining 80 basis points.

Finance: draft 13-week cash view by Friday.

Kelly Services, Inc. (KELYA) - Canvas Business Model: Channels

You're mapping out how Kelly Services, Inc. (KELYA) gets its specialized talent solutions and consulting services to the enterprise client and the talent pool itself. The channels are deeply integrated with their three core operating segments, which dictates how they push value out to the market.

The delivery mechanism is segmented to match the specialized nature of the business, which, as of Q2 2025, centers on Enterprise Talent Management (ETM), Science, Engineering & Technology (SET), and Education. The channel strategy must support these distinct revenue streams. For instance, the SET segment, which saw reported revenue growth of 19.4% in Q2 2025 (largely due to the Motion Recruitment Partners acquisition), relies on channels that can deliver highly specialized, outcome-based solutions, often requiring direct, consultative engagement. Conversely, the Education segment, which showed reported revenue growth of 5.6% in Q2 2025, utilizes channels optimized for high-volume, localized staffing, like K-12 fill rates.

Here's a quick look at how the segments performed in Q2 2025, which informs the channel focus:

The total reported revenue for Q2 2025 was $1.1 billion, with a total gross profit rate of 20.5%, up 30 basis points from the prior year quarter.

Direct client engagement is managed through a dedicated sales structure. You'll find that the direct sales force and consulting teams are critical for landing the larger, more complex enterprise contracts, especially within the ETM and KellyOCG (Outsourcing & Consulting) offerings. These teams target decision-makers in procurement and HR, focusing on selling managed services and outcome-based solutions rather than just contingent labor. Targeted digital content marketing was a major channel driver in 2024, contributing to 45% of new enterprise client acquisitions that year. The sales team also leverages a proprietary CRM system to identify clients with high workforce volatility.

For talent acquisition, the channel mix is heavily weighted toward digital methods to source the high volume of workers Kelly Services places-over 400,000 people annually across 30 countries.

• Programmatic job advertising is used extensively for broad reach.
• A streamlined mobile application process is key for candidate conversion.
• The Kelly Now platform supports digital access for industrial staffing candidates and managers.
• The company attracted over 1.2 million new global workforce applicants in 2024 through these digital channels.

Talent retention, which directly impacts channel reliability, is supported by the Kelly Learning platform and a loyalty program offering preferred job access.

The physical and virtual office network provides the necessary local market delivery capability, which is essential for compliance and on-the-ground support, even as digital channels grow. Kelly Services operates across the Americas, Europe, and Asia-Pacific regions.

• The Americas region generated $1,073.1 million in revenue in Q2 2025.
• Europe accounts for 15% of total revenue, with key centers in the UK, Germany, and Ireland.
• Asia-Pacific contributed 21% of 2024 revenue.
• Managed Service Provider (MSP) solutions are available in 70 countries, while direct placement connects people in 30 countries.

This global footprint, supported by a broad base of strategic suppliers, ensures they can deliver workforce solutions where and when they are needed most, even while managing organic revenue headwinds, such as the 3.3% organic revenue decline in Q2 2025 (which included a 1.4% impact from reduced federal contractor demand).

Finance: draft Q3 2025 cash flow forecast by Friday.

Kelly Services, Inc. (KELYA) - Canvas Business Model: Customer Segments

You're hiring before product-market fit is fully solidified, so understanding exactly who pays you and who works for you is the first step in stabilizing the model. Kelly Services, Inc. serves a dual customer base: the enterprise clients who issue the requisitions and the talent pool who fulfill the work.

Enterprise Clients: Mid-to-large Businesses Seeking Flexible Staffing Globally

The core B2B customer base consists of mid-to-large enterprise clients looking for scalable, flexible workforce solutions across various geographies. Kelly Services, Inc. generated total revenue of approximately $4.3 billion in the 2024 fiscal year.

Customer concentration shows a reliance on a core group of large accounts. As of the end of 2024, the largest 100 customers accounted for an estimated 58% of total company revenue, with the top 10 customers contributing 29% of that total. Honestly, the largest single customer represented about 6% of total revenue in 2024. This concentration means relationship management with these top-tier clients is defintely critical for revenue stability.

Specialized Industries Driving Demand

Kelly Services, Inc. focuses its efforts on specific, high-growth industry verticals where specialized skills are in demand. The company explicitly tracks its business mix based on these specialties, which is a key part of its strategy to move toward higher-margin outcome-based solutions.

The breakdown of 2024 gross billings highlights the concentration in these areas:

The Education segment, which includes K-12 school districts, remains a strong customer base. For context on the scale, Kelly Education reported US education staffing revenue of $972 million in 2024. Looking at the most recent operational data from Q3 2025, the Education business edged up 0.8% year-over-year in revenue, showing resilience even as other areas faced headwinds.

Conversely, the Science, Engineering & Technology (SET) segment, which houses much of the Technology focus, saw revenue fall 9.0% year-over-year in Q3 2025, though it had shown strong reported growth in Q2 2025 at 19.4%, largely due to the prior acquisition of Motion Recruitment Partners (MRP).

Government Agencies and Educational Institutions

Business with government entities is a component, but the company has structured its contracts to limit single-source risk. As of 2024, no single federal, state, or local government contract represented more than 3% of total company revenue. However, reduced demand from U.S. federal government contractors was cited as a challenge impacting revenue in Q3 2025.

The Education segment specifically targets K-12 school districts and related institutions, providing substitute educators and other support staff. This segment showed reported revenue growth of 5.6% in Q2 2025.

The Talent Pool: The Supply Side of the Equation

Kelly Services, Inc. connects a vast number of workers with assignments annually. The company connects more than 400,000 people with work every year. This talent pool is segmented by skill level and preference for work structure.

Key characteristics of the talent pool include:

• Skilled professionals with bachelor's degrees or higher, aged 25-44, seeking project-based or temporary-to-hire roles.
• A growing segment of professional gig workers who prefer contract arrangements.
• Substitute educators servicing the Education segment.

The preference for flexible work is clear; the professional gig worker segment grew by 30% from 2023 to 2024. This indicates a structural shift in how a significant portion of their workforce prefers to engage with Kelly Services, Inc.

Finance: draft 13-week cash view by Friday.

Kelly Services, Inc. (KELYA) - Canvas Business Model: Cost Structure

You're looking at the major drains on Kelly Services, Inc.'s bottom line as of late 2025. The cost structure is heavily influenced by the nature of the staffing business and the recent inorganic growth strategy.

Cost of Services remains the single largest cost component, representing the direct compensation and associated expenses for the contingent workforce deployed to clients. While specific dollar figures for total Cost of Services for Q2 or Q3 2025 aren't itemized separately from revenue to calculate a Gross Profit Rate for the entire company in the same way, we know the overall Gross Profit Rate for Q2 2025 was 20.5%. This implies that approximately 79.5% of revenue is consumed by the Cost of Services, which is primarily wages and benefits for contingent workers.

Selling, General, and Administrative (SG&A) expenses are the next major category. For the second quarter of 2025, Kelly Services, Inc. reported SG&A expenses of $207.3 million. This figure is up from $192 million in Q2 2024, with the increase attributed in part to the Motion Recruitment Partners (MRP) acquisition. On an adjusted organic basis for Q2 2025, SG&A expenses actually declined 1% year-over-year, showing some underlying cost control efforts.

The company is actively managing costs related to its strategic moves, which fall into several buckets:

• Integration and realignment costs from acquisitions like MRP were reported as $6 million in charges during Q2 2025.
• These Q2 charges also included costs for improving technology and processes across the enterprise.
• The third quarter of 2025 saw significant non-cash charges, including $102.0 million in goodwill impairment charges related to the integration of MRP and Softworld acquisitions in the Science, Engineering & Technology (SET) segment, alongside realignment efforts.

Debt financing for acquisitions directly impacts the income statement through interest expense. For the first half of 2025, the year-over-year decline in adjusted earnings per share reflected higher net interest expense due to debt incurred for the MRP acquisition. Specifically, the year-over-year decline in Q2 2025 adjusted earnings per share included an impact of $0.08 per share from increased net interest expense.

Here is a snapshot of key reported expense and margin figures from the Q2 and Q3 2025 reporting periods:

Kelly Services, Inc. is focused on driving structural efficiencies through technology enhancements, including leveraging AI, to improve the SG&A expense profile. The largest variable cost, Cost of Services, is directly tied to the contingent worker base, which means labor market conditions and bill/pay rate spreads are critical drivers of gross margin.

The company's Q3 2025 results showed an operating loss of $102.1 million, which was heavily skewed by the non-cash goodwill impairment charge. On an adjusted basis, excluding this charge, operating earnings were $4.3 million for Q3 2025. Finance: draft 13-week cash view by Friday.

Kelly Services, Inc. (KELYA) - Canvas Business Model: Revenue Streams

You're looking at how Kelly Services, Inc. (KELYA) actually brings in the money, which is critical for understanding its valuation, especially given the recent market volatility. Here's the breakdown of their revenue sources based on late 2025 financial reporting.

The core of Kelly Services, Inc.'s revenue generation remains rooted in providing contingent and permanent talent, though the mix is evolving due to strategic acquisitions and market pressures. The primary revenue streams map closely to their operating segments: Science, Engineering & Technology (SET), Education, and Enterprise Talent Management (ETM).

The overall financial performance for the year-to-date shows a slight top-line increase despite organic challenges. Total Revenue for the first 9 months of 2025 was reported as $3,140.7 million. This compares to the Q2 2025 figure, which was $1.1 billion, marking a 4.2% increase year-over-year for that specific quarter, largely due to acquisitions like Motion Recruitment Partners (MRP).

Here is a look at the composition and recent performance of these streams, using Q2 2025 segment data as the best available proxy for service-line contribution:

You can see how the different services performed in the second quarter of 2025:

• Staffing Services: This remains the primary revenue source. In the ETM segment alone, staffing revenues declined by 7.7% year-over-year.
• Outcome-Based Solutions: These offerings, excluding contact center solutions, showed resilience, actually being up 2% year-over-year, driven by the ETM segment.
• Permanent Placement Fees: These commissions represented only about 1% of total revenue in Q2 2025.

The reliance on the core staffing model is evident, but the growth story is increasingly tied to the higher-margin, outcome-based solutions, even when the overall segment revenue is pressured. The fact that Perm fees were cited as a factor in gross profit rate compression suggests they aren't the current focus for margin expansion. Finance: draft 13-week cash view by Friday.