Kelly Services, Inc. Class B (KELYB) AI Stock Analysis

Kelly Services, Inc. Class B

(NASDAQ:KELYB)

Select Model

Rating:52Neutral

Price Target:$26.00▼(-3.35% Downside)

Action:initiatedcoverage

Date:10/23/26

The score is held down primarily by severe operating deterioration, a large net loss, and weakening free cash flow. A strong balance sheet, positive technical momentum, and a broadly constructive earnings call provide meaningful but insufficient offsets; the negative P/E further limits the valuation score.

Positive Factors

Conservative balance sheetLow leverage gives Kelly financial flexibility during staffing-market cycles and leaves more capacity to fund technology, pursue selective growth, or absorb weaker demand. The improved debt profile also reduces balance-sheet pressure while profitability recovers.

Negative Factors

Sustained profitability deteriorationLarge losses and negative operating earnings show that stable gross margins are not currently translating into profitable operations. Persistent losses can erode equity, constrain reinvestment, and make margin recovery dependent on successful cost actions and improving demand.

Kelly Services, Inc. Class B (KELYB) vs. SPDR S&P 500 ETF (SPY)

Market Cap: $633.86M
Dividend Yield: 1.12%
Average Volume (3M): 7,597
Price to Earnings (P/E): -2.1
Beta (1Y): 0.80
Revenue Growth: -9.63%
EPS Growth: -4468.44%
Country: US
Employees: 4,900
Sector: Industrials
Sector Strength: 63
Industry: Staffing & Employment Services

Kelly Services, Inc. Class B Business Overview & Revenue Model

Company Description

Kelly Services, Inc., along with its affiliated companies, delivers staffing and talent management solutions across a diverse range of industries. Its operations are strategically divided into five distinct divisions: Professional & Industrial, Scien...

Kelly Services, Inc. Class B Financial Statement Overview

Summary

Weak operating performance and sharply deteriorating cash-flow trends outweigh the low-leverage balance sheet. Income statement, balance sheet, and cash-flow scores were 18, 79, and 42, respectively.

Income Statement

18Very Negative

Balance Sheet

79Positive

Cash Flow

42Neutral

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.06B	4.25B	4.33B	4.84B	4.97B	4.91B
Gross Profit	789.50M	853.00M	882.60M	961.40M	1.01B	919.20M
EBITDA	-32.30M	112.60M	39.90M	115.40M	121.90M	103.60M
Net Income	-273.40M	-254.10M	-600.00K	36.40M	-62.50M	156.10M
Balance Sheet
Total Assets	2.28B	2.25B	2.63B	2.58B	2.66B	2.89B
Cash, Cash Equivalents and Short-Term Investments	24.20M	33.00M	39.00M	125.80M	153.70M	112.70M
Total Debt	128.70M	159.10M	302.60M	51.30M	70.40M	78.90M
Total Liabilities	1.30B	1.27B	1.40B	1.33B	1.41B	1.56B
Stockholders Equity	982.00M	976.50M	1.23B	1.25B	1.25B	1.34B
Cash Flow
Free Cash Flow	20.50M	114.10M	15.80M	61.40M	-88.30M	73.80M
Operating Cash Flow	27.10M	122.60M	26.90M	76.70M	-76.30M	85.00M
Investing Cash Flow	-2.20M	22.30M	-361.60M	-14.10M	167.50M	-180.70M
Financing Cash Flow	-19.60M	-161.10M	214.80M	-59.60M	-50.60M	-8.10M

Kelly Services, Inc. Class B Technical Analysis

Technical Analysis SentimentPositive

Last Price26.90

Price Trends

50DMA23.36Positive

100DMA22.49Positive

200DMA19.06Positive

Market Momentum

MACD1.28Negative

RSI64.55Neutral

STOCH80.25Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KELYB, the sentiment is Positive. The current price of 26.90 is above the 20-day moving average (MA) of 24.14, above the 50-day MA of 23.36, and above the 200-day MA of 19.06, indicating a bullish trend. The MACD of 1.28 indicates Negative momentum. The RSI at 64.55 is Neutral, neither overbought nor oversold. The STOCH value of 80.25 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for KELYB.

Kelly Services, Inc. Class B Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

KELYB against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
KELYB	52Neutral	$610.19M	-2.12	-27.06%	1.12%	-9.63%	-4468.44%

* Industrials Sector Average

Performance Comparison

KELYB and its peers over the selected period
Show on chart	Ticker	Company Name	Price	Change	% Change
	KELYB	Kelly Services, Inc. Class B	26.90	16.07	148.45%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Oct 23, 2026

Kelly Services, Inc. Class B AI Stock Analysis