Category: Business

First Eagle Moves to Acquire Diamond Hill in $473 Million Deal

Posted on by slightbourne@noblecapitalmarkets.com

The asset-management industry is entering another phase of consolidation, highlighted by First Eagle Investments’ agreement to acquire Diamond Hill Investment Group in a deal valued at approximately $473 million. The all-cash transaction marks a significant premium for Diamond Hill shareholders and positions both firms to expand their capabilities in an increasingly competitive market for active management.

Under the terms of the agreement, First Eagle will purchase all outstanding shares of Diamond Hill for $175 per share. The price reflects a premium of nearly 50% over Diamond Hill’s closing price on December 10, 2025, and more than 40% above the company’s 30-day volume-weighted average price. With this valuation, Diamond Hill shareholders realize immediate financial benefit, while First Eagle secures a platform that strengthens its presence across key asset classes.

The strategic rationale centers on complementary strengths between the two firms. First Eagle, which oversees a diversified mix of equity, fixed income, alternative credit, and multi-asset strategies, gains a larger footprint in traditional fixed income through Diamond Hill’s growing franchise in that category. For Diamond Hill, the combination adds global resources, broader distribution reach, and operational depth without altering the core investment philosophy that has shaped the firm for more than two decades.

Diamond Hill’s U.S.-focused multi-cap equity approach aligns with First Eagle’s existing global equity and small-cap capabilities. This creates a more rounded platform for clients who want differentiated active-management styles across both domestic and international markets. Importantly, Diamond Hill will maintain its brand, investment process, and headquarters in Columbus following the completion of the transaction. Its investment teams are expected to remain in place, preserving continuity for existing clients.

The combined organization will oversee roughly $208 billion in assets under management and advisement on a pro forma basis as of the most recent reporting date. By operating at a larger scale, the firms anticipate improved efficiency, stronger product breadth, and enhanced competitiveness across the financial advisor and institutional channels.

The agreement also includes a formal “go-shop” period, allowing Diamond Hill to solicit alternative acquisition proposals for 35 days following the announcement. While there is no guarantee of a competing bid, the mechanism ensures fiduciary flexibility while the board evaluates shareholder value.

Subject to shareholder and regulatory approvals, the transaction is expected to close by the third quarter of 2026. Diamond Hill will suspend its quarterly dividends through closing, and its shares will be delisted from Nasdaq once the acquisition is finalized. There are no financing contingencies tied to the deal, which adds clarity to the expected timeline.

The acquisition underscores how firms with long-term investment philosophies are adapting to market pressures through scale, resource expansion, and strategic alignment. By combining Diamond Hill’s valuation-driven discipline with First Eagle’s global reach and historical focus on capital stewardship, the new partnership aims to create a more robust platform positioned for varied market cycles.

As consolidation continues across the asset-management industry, this transaction highlights how firms are pursuing strategic combinations to strengthen client offerings while delivering value to shareholders.

The ODP Corporation (ODP) – Acquisition Approved

Posted on by slightbourne@noblecapitalmarkets.com


Tuesday, December 09, 2025

Office Depot, Inc., together with its subsidiaries, supplies a range of office products and services. It offers merchandise, such as general office supplies, computer supplies, business machines and related supplies, and office furniture through its chain of office supply stores under the Office Depot, Foray, Ativa, Break Escapes, Worklife, and Christopher Lowell brand names. The company also provides graphic design, printing, reproduction, mailing, shipping, and other services through design, print, and ship centers. It has operations throughout North America, Europe, Asia, and Central America. The company also sells its products and services through direct mail catalogs, contract sales force, Internet sites, and retail stores, through a mix of company-owned operations, joint ventures, licensing and franchise agreements, alliances, and other arrangements. As of December 31, 2008, Office Depot operated 1,267 North American retail division office supply stores and 162 international division retail stores, as well as participated under licensing and merchandise arrangements in 98 stores. The company was founded in 1986 and is based in Boca Raton, Florida.

Joe Gomes, CFA, Managing Director, Equity Research Analyst, Generalist , Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Acquisition Approved. On December 5th, The ODP Corporation held a special meeting of stockholders at which holders of ODP’s common stock approved the acquisition of ODP by an affiliate of Atlas Holdings for $28 per share. With shareholder approval, the acquisition is expected to be completed on December 10th, at which time ODP common shares will cease to trade.

Details. Of the 30,117,856 shares of ODP Common Stock issued and outstanding at the close of business on October 21, 2025, the record date for the ODP Special Meeting, 22,656,187 shares were present or represented by proxy at the ODP Special Meeting. A total of 22,540,259 shares voted in favor of the acquisition.


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This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision. 

ISG to Evaluate Snowflake Ecosystem Partners

Posted on by slightbourne@noblecapitalmarkets.com

12/2/2025

STAMFORD, Conn.–(BUSINESS WIRE)– Information Services Group (ISG) (Nasdaq: III), a global AI-centered technology research and advisory firm, has launched a research study examining provider capabilities within the fast-growing Snowflake services ecosystem.

The study results will be published in a comprehensive ISG Provider Lens® report, called Snowflake Ecosystem Partners, scheduled to be released in June 2026. The report will cover companies offering Snowflake-focused modernization and AI and ML enablement capabilities, along with ongoing managed data and optimization services.

Enterprise buyers will be able to use information from the report to evaluate their current vendor relationships, potential new engagements and available offerings, while ISG advisors use the information to recommend providers to the firm’s buy-side clients.

Snowflake has emerged as a critical data platform that redefines how enterprises store, process and activate data for analytics and AI. Its cloud-native architecture offers improved scalability, flexibility and cost efficiency, helping enterprises move beyond the constraints of traditional data warehouses. Globally, enterprises are increasingly adopting this platform to unify structured, semi-structured and unstructured data under a single governance and security model. This approach streamlines complex data operations while enabling faster insights and AI-driven innovation.

“Enterprises are prioritizing providers that offer automation maturity, FinOps discipline and robust governance,” said Aman Munglani, senior director and principal analyst at ISG. “Using Snowflake-native tools such as Snowpark, Cortex AI and Native Apps enables them to achieve meaningful, measurable improvements in data management.”

ISG has distributed surveys to more than 100 Snowflake ecosystem partners. Working in collaboration with ISG’s global advisors, the research team will produce two quadrants representing the Snowflake offerings the typical enterprise is buying, based on ISG’s experience working with its clients. The two quadrants are:

  • Modernization and AI/ML Enablement Services, evaluating providers that deliver end-to-end strategy, advisory and implementation support to help enterprises get the most from their Snowflake investments. These providers are assessed on their ability to guide data modernization efforts and facilitate integration of AI and ML into operations.
  • Managed Data and Optimization Services,assessing providers offering management, monitoring and optimization services for Snowflake environments. These providers should specialize in managing Snowflake infrastructure across cloud platforms and offer training and change management initiatives.

Geographically focused reports from the study will cover the global Snowflake ecosystem and examine products and services available worldwide. ISG analysts Gowtham Kumar Sampath and Hemangi Patel will serve as authors of the report.

A list of identified providers and vendors and further details on the study are available in this digital brochure. Companies not listed as Snowflake ecosystem partners can contact ISG and ask to be included in the study.

All 2025 ISG Provider Lens® evaluations feature expanded customer experience (CX) data that measures actual enterprise experience with specific provider services and solutions, based on ISG’s continuous CX research.

About ISG Provider Lens® Research

The ISG Provider Lens® Quadrant research series is the only service provider evaluation of its kind to combine empirical, data-driven research and market analysis with the real-world experience and observations of ISG’s global advisory team. Enterprises will find a wealth of detailed data and market analysis to help guide their selection of appropriate sourcing partners, while ISG advisors use the reports to validate their own market knowledge and make recommendations to ISG’s enterprise clients. The research currently covers providers offering their services globally, across Europe, as well as in the U.S., Canada, Mexico, Brazil, the U.K., France, Benelux, Germany, Switzerland, the Nordics, Australia and Singapore/Malaysia, with additional markets to be added in the future. For more information about ISG Provider Lens research, please visit this webpage.

About ISG

ISG (Nasdaq: III) is a global AI-centered technology research and advisory firm. A trusted partner to more than 900 clients, including 75 of the world’s top 100 enterprises, ISG is a long-time leader in technology and business services that is now at the forefront of leveraging AI to help organizations achieve operational excellence and faster growth. The firm, founded in 2006, is known for its proprietary market data, in-depth knowledge of provider ecosystems, and the expertise of its 1,600 professionals worldwide working together to help clients maximize the value of their technology investments.

Source: Information Services Group, Inc.

Associated Bank Expands Midwest Footprint With $604 Million Acquisition of American National Bank

Posted on by slightbourne@noblecapitalmarkets.com

Associated Bank is accelerating its Midwest expansion strategy with a major acquisition that will reshape its competitive position across the central U.S. The Green Bay, Wisconsin–based lender announced Monday that it will acquire Omaha, Nebraska–based American National Bank in an all-stock deal valued at $604 million, marking one of the most significant regional banking transactions of the year.

The acquisition will bring Associated Bank an additional 33 branches across Nebraska, Minnesota, and Iowa and add $5.3 billion in assets, $3.8 billion in loans, and $4.7 billion in deposits to its balance sheet. When the deal closes—expected in the second quarter of 2026—Associated will instantly become the No. 2 bank in the Omaha metro area and the No. 10 bank in Minneapolis–St. Paul based on deposit market share.

A Strategic Entry Into a High-Growth Market

Some industry analysts described the bank’s entry into Omaha as unexpected, but Associated Bank CEO Andy Harmening pushed back against that view. Omaha, he said, fits seamlessly into the bank’s geographically connected strategy and represents “a great banking market” with strong population gains, accelerating economic growth, and a business community deeply embedded in the region.

Harmening also emphasized the importance of acquiring an institution with strong local roots. American National Bank, founded in 1856, has long served as a leading financial partner for middle-market and family-owned businesses—a customer base that aligns well with Associated’s own commercial banking focus. The CEO noted that local connectivity was essential: “If you’re going to buy a bank in Omaha … you better have connectivity to the community, and we do.”

How the Partnership Strengthens Both Banks

For American National, the acquisition brings a valuable expansion of capabilities. It will gain access to Associated Bank’s broader product set, including capital markets services, equipment finance solutions, and more robust consumer banking tools. These additions are expected to enhance the bank’s ability to compete in its core commercial markets while offering customers a more comprehensive suite of financial services.

Associated Bank, meanwhile, will benefit from American National’s deep customer relationships and its portfolio of roughly 79,000 deposit accounts. The acquisition solidifies Associated’s presence in key markets where it has long sought additional scale and strengthens its position as a leading Midwest regional bank.

Under the terms of the transaction, American National shareholders will receive 36.250 shares of Associated stock for each of their own shares, giving them a 12% stake in the combined company, while Associated shareholders will hold the remaining 88%.

Financial Impact and Leadership Structure

From a financial standpoint, the deal is projected to be 1.2% dilutive to tangible book value per share at closing, with an expected 2.25-year earnback period. However, by 2027, it is anticipated to be 2% accretive to earnings per share, adding meaningful long-term value for shareholders.

As part of the agreement, American National co-chairperson and co-CEO Wende Kotouc will join Associated’s board, ensuring continued representation from the Omaha market. Meanwhile, fellow co-CEO John Kotouc will remain involved in a consultancy role as the banks integrate and expand their regional collaboration. The institutions also plan to establish an Omaha advisory board to support community-focused decision-making.

Growing Consolidation Across the Midwest Banking Landscape

This acquisition comes amid a surge in regional bank consolidation across the Midwest. Just weeks earlier, another Green Bay-based institution, Nicolet Bankshares, announced its $864 million purchase of MidWestOne Financial Group. Industry analysts say rising technology expenses, succession issues, and the increasing importance of scale are pressuring smaller banks to merge with larger regional players.

While Harmening stressed that Associated Bank does not intend to become a frequent acquirer, he acknowledged that opportunities fitting the bank’s long-term strategy will continue to be evaluated. The American National deal, he said, represents “the right partner, the right time, and the right markets,” reinforcing Associated’s commitment to serving the communities and businesses that define the Midwest.

Redefining What You Should Expect From Your Accountant

Posted on by slightbourne@noblecapitalmarkets.com

About Grassi

For more than 45 years, Grassi has redefined what it means to be an advisor and accountant to today’s businesses and individuals. Founded in 1980 by Louis C. Grassi, with just an empty filing cabinet and a desk, the firm has grown into one of the nation’s largest accounting and advisory firms, with more than 550 professionals across ten offices in the U.S. and abroad.

Recognized as the 52nd-largest accounting firm in the nation and 8th-largest in the Mid-Atlantic, Grassi provides a full range of advisory, tax, accounting, audit and technology services to both publicly and privately held companies, as well as individuals. The firm serves key industries including construction, architecture and engineering, manufacturing and distribution, real estate, health care, financial services and nonprofit organizations.

At the heart of Grassi’s work is a simple but powerful mission: to create success for clients and people. This purpose drives every engagement and client relationship. Grassi advisors work alongside their clients to help them solve problems, plan for growth and prepare for the future — placing people at the center of every solution.

 Grassi has garnered client satisfaction rates more than twice the industry average and received the Best of Accounting Award for exemplary client service for five consecutive years. The firm has also been ranked 15 times as a “Best of the Best” firm by INSIDE Public Accounting and named a Best Place to Work by multiple publications, including Vault’s Top 25 Best Accounting Firms to Work For, where it achieved the #1 ranking for Client Interaction.

Independence Through Employee Ownership

In an accounting industry marked by rapid consolidation and private equity investment, Grassi took a pioneering step toward sustaining its independence by launching an Employee Stock Ownership Plan (ESOP). This privately funded ESOP, free from outside investors, aligns the firm’s achievements directly with those of its clients. Every U.S. employee has the opportunity to share in ownership, fostering a culture of shared success, long-term stability, and commitment to excellence.

SEC & Capital Markets Team

Grassi’s dedicated SEC & Capital Markets Team has the deep expertise to help you prepare for the demands of being a public company, assisting with compliance while positioning your company for long-term success. Working collaboratively with your attorney, investment banker and other consultants, our public company audit and IPO specialists will guide your business every step of the way – from pre-audit readiness to post-IPO reporting.

Registered with the PCAOB, Grassi helps private companies meet compliance requirements, achieve their IPOs and maintain ongoing compliance with SEC requirements. Our professionals combine this big-firm experience with Grassi’s hands-on approach to provide unparalleled service.

Grassi is proud to once again sponsor NobleCon, the annual investor conference hosted by Noble Capital Markets. As a returning sponsor, Grassi reaffirms its commitment to supporting the growth and success of emerging and publicly traded companies. Through its SEC & Capital Markets Team, the firm continues to help businesses navigate the complexities of going public, maintaining compliance, and achieving long-term success in the capital markets.

Conduent (CNDT) – 2026 Pipeline Growing Despite Q3 Headwinds

Posted on by slightbourne@noblecapitalmarkets.com


Wednesday, November 12, 2025

Patrick McCann, CFA, Research Analyst, Noble Capital Markets, Inc.

Michael Kupinski, Director of Research, Equity Research Analyst, Digital, Media & Technology , Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Q3 hits headwind. Conduent reported Q3 revenue of $767 million and adj. EBITDA of $40 million, modestly below our estimates of $794 million and $44 million. While sales in the Commercial segment lagged, Transportation delivered strong revenue growth (+15% Y/Y) and Government margins expanded to 25.6%. Totally company adj. EBITDA margins improved 110 bps year-over-year, underscoring steady operational progress.

Pipeline growing. Overall new business activity was solid with the qualified ACV pipeline rising 9% Y/Y to $3.4 billion, led by Government and Transportation momentum. While the Commercial segment struggled to close sales, we believe a streamlined go-to-market model and early software-licensing traction should support 2026 revenue stabilization.


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Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision. 

Expanding Your Footprint: Strategic Opportunities in U.S. Manufacturing, Distribution & Logistics

Posted on by slightbourne@noblecapitalmarkets.com

In our first article, we established the compelling case for why now is the right time for European enterprises to pursue acquisitions in the U.S. This favorable climate is driven by a confluence of economic resilience, attractive valuations, and a welcoming policy environment. For many European companies, this is best realized by acquiring strategic assets in core industrial sectors.

This article delves into the specific operational and technological advantages awaiting European acquirers in U.S. manufacturing, distribution, and logistics. Acquiring existing U.S. assets in these sectors provides a potent pathway to not only immediate market entry but also the creation of a more resilient, efficient, and technologically advanced global enterprise.

Immediate Market Access and Scalability

A U.S. acquisition provides European firms with far more than just a new address; it offers direct and rapid access to the world’s largest and most dynamic consumer market. For companies in manufacturing, distribution, and logistics, this means inheriting established production facilities and warehouse networks, a mature supply base, and a ready-made customer roster.

Rather than the long, costly process of greenfield site development, an acquisition allows you to bypass a significant time lag and immediately start serving customers from a U.S. base. For instance, a European manufacturer of industrial equipment could acquire a U.S.-based competitor with regional production facilities. This move immediately diversifies their manufacturing base and allows them to fulfill orders from domestic customers without the delays or costs of transatlantic shipping. This direct entry is a powerful engine for rapid expansion and scalability.

Another benefit of having a U.S. presence is potential access to free-trade agreements with Canada and Mexico in addition to further expansion to Latin America. According to the U.S. Census[1], the U.S. exported approximately $124.4 billion to South and Central America between January and June 2025, on track to surpass the total exports of $205.6 billion during 2024.

Building Resilient Supply Chains and Localized Production

Recent global events have highlighted the fragility of long, intricate supply chains. For European companies, a U.S. acquisition is a strategic solution for nearshoring production and distribution, reducing reliance on distant hubs and mitigating geopolitical risks. This localization effort is not merely a defensive play; it’s a proactive strategy for operational excellence.

By localizing production and distribution, European acquirers can:

  • Reduce Lead Times and Transportation Costs: Shorter distances between production facilities and end customers drastically cut down on delivery times and international shipping expenses, a critical advantage in today’s fast-paced market.
  • Optimize Inventory Management: A U.S. presence enables more flexible inventory strategies, balancing just-in-time principles with safety stock, to meet regional demand more accurately.
  • Enhance Resilience: A diversified supplier base within North America helps mitigate the impact of international trade disputes, tariffs, and shipping disruptions.

Embracing Advanced Technology and Automation

The U.S. industrial landscape is a leader in adopting advanced technologies, and an M&A transaction provides European firms with a fast track to integrate these innovations. The opportunity is to acquire not just physical assets but also the underlying technological platforms that drive efficiency and insight.

Key technologies to look for in target companies include:

  • Automation and Robotics: The logistics automation market is growing, and acquiring a company that has already invested in robotic process automation, automated guided vehicles (AGVs), or smart picking systems can immediately enhance operational efficiency.
  • Data and Analytics: Many U.S. firms leverage data analytics, IoT, and AI to optimize supply chain functions. This includes predictive maintenance in manufacturing, demand forecasting, and predictive route optimization in logistics.
  • Digital Platforms: The integration of robust Warehouse Management Systems (WMS) and Transportation Management Systems (TMS) is essential. An acquisition can provide access to these platforms, allowing European firms to enhance real-time visibility, track assets, and improve inventory control.

Driving Operational Synergies and Efficiency

Operational synergies are a primary driver of M&A value, and in the manufacturing, distribution, and logistics sectors, the opportunities for a European acquirer are substantial. A well-executed integration plan can unlock significant efficiencies by combining operations, technology, and procurement.

Potential synergies include:

  • Streamlining Processes: Standardizing operational best practices (e.g., Lean or Six Sigma principles) across both the European and U.S. entities can eliminate redundancies and improve efficiency.
  • Leveraging Combined Procurement Power: Merging purchasing functions allows the combined entity to leverage greater scale, securing better terms and pricing from suppliers.
  • Cost Rationalization: Combining distribution networks, consolidating freight, and optimizing warehousing can lead to significant cost savings and improved service levels. These improvements directly impact EBITDA and working capital, demonstrating tangible value creation.

Conclusion: Solidifying Your Global Industrial Edge

For European companies seeking to expand their global footprint, strategic M&A in the U.S. manufacturing, distribution, and logistics sectors provides a compelling and timely opportunity. These acquisitions offer a direct pathway to market entry, the creation of more resilient and efficient supply chains, and a leap forward in technological adoption. A successful transaction in these core industrial sectors is not just about growth; it’s about solidifying a global edge and building an operationally robust, future-proof enterprise.

Our next article, “Capturing Consumers and Clients: M&A Opportunities in U.S. Business Services and Retail,” will explore the unique advantages and strategies for acquiring targets in the service economy.

ABOUT THE AUTHORS:

Nico Pronk is Managing Partner, CEO, and Head of Investment Banking at Noble Capital Markets. Nico has over 35 years of experience working with IPOs, Secondary Offerings, Private Placements and Mergers and Acquisitions including complex cross-border transactions. During his career he has served as Director or Advisor to numerous privately held and publicly traded companies.

Bruce C. Rosetto is a Senior Partner and Shareholder at Greenberg Traurig LLP and represents private and public companies, private equity funds, hedge funds, investment banks, and entrepreneurial clients in a wide variety of industries. He has broad experience in domestic and international mergers and acquisitions, raising capital, securities work, private placement financings, corporate governance, alternate assets, and projects qualifying for investment under the EB-5 Entrepreneur Investment Visa Program. He also forms private equity funds and family offices and represents affiliated portfolio companies.

Fred Campos is a Managing Director at CBIZ with more than 20 years of experience in accounting and finance and more than 300 executed buy-side and sell-side M&A engagements. Prior to joining CBIZ, Fred founded and led a boutique advisory services firm focused on mergers and acquisitions and exit readiness. Earlier in his career, he was part of the cross-border practice at Ernst & Young (EY) where he assisted EY’s global clients on cross-border deals. Fred also established and led the regional transaction advisory services practice for a global top tier public accounting firm.

Mark Chaves, Managing Director with CBIZ, assists companies with domestic and international tax planning and structuring, mergers and acquisitions, and business reorganizations. Mark has focused his career on working with multinational corporations to manage cross-border direct and indirect tax issues, foreign tax credit and repatriation planning, reorganization of expatriate and inpatriate tax matters, and ASC 740 reporting. Additionally, Mark assists individuals with international estate planning, inbound tax structuring of investments in U.S. real property, and pre-immigration planning as well as with cross-border tax issues   and filings for FINCEN compliance.

Matthew (Matt) Podowitz is the founder and Principal Consultant of Pathfinder Advisors LLC, bringing experience on 400+ global M&A engagements to his clients. Matt specializes in the critical operational and technology aspects of M&A transactions, providing due diligence, carve-out, integration, and value creation services. Leveraging his perspective as a dual US/EU citizen, he provides seamless support for cross-border M&A transactions through every step of the transaction lifecycle in both markets. His background includes leadership roles at firms like Ernst & Young, Grant Thornton, and CFGI.

Kelly Services (KELYA) – A Miss, But Some Positives

Posted on by slightbourne@noblecapitalmarkets.com


Monday, November 10, 2025

Kelly (Nasdaq: KELYA, KELYB) connects talented people to companies in need of their skills in areas including Science, Engineering, Education, Office, Contact Center, Light Industrial, and more. We’re always thinking about what’s next in the evolving world of work, and we help people ditch the script on old ways of thinking and embrace the value of all workstyles in the workplace. We directly employ nearly 350,000 people around the world and connect thousands more with work through our global network of talent suppliers and partners in our outsourcing and consulting practice. Revenue in 2021 was $4.9 billion. Visit kellyservices.com and let us help with what’s next for you.

Joe Gomes, CFA, Managing Director, Equity Research Analyst, Generalist , Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Overview. Kelly reported 3Q25 results below expectations, even after scrubbing away a number of one-time events. Lower demand from the federal government and a few large customers negatively impacted results. Nonetheless, Kelly continued to capture growth in certain markets. 

3Q25 Results. 3Q25 revenue fell 9.9% to $935 million from $1.04 billion last year. Consensus was $973 million, and we were at $975 million. Adjusted EBITDA was $16.5 million, or a 1.9% margin, compared to $26.2 million, or a 2,5% margin, in 3Q24. Consensus was $33 million, and we were at $33.5 million. Adjusted EPS was $0.18 vs $0.21 last year. Consensus was $0.42, we were at $0.45.


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Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision. 

Release – Kelly Reports Third-Quarter 2025 Earnings

Posted on by aweinsoff@channelchek.com

Research News and Market Data on KELYA

November 6, 2025

PDF Version

TROY, Mich., Nov. 06, 2025 (GLOBE NEWSWIRE) — Kelly (Nasdaq: KELYA, KELYB), a leading specialty talent solutions provider, today announced results for the third quarter of 2025.

  • Q3 revenue of $935.0 million, down 9.9% year-over-year; excluding discrete U.S. federal government and large customer impacts, underlying revenue down approximately 2.0% year-over-year
  • Underlying revenue reflects continued growth in the Education segment, a consistent rate of decline in the SET segment, and a modest decline in the ETM segment
  • Q3 adjusted SG&A decline of 9.7% reflects increased momentum on structural and demand-driven expense optimization initiatives, including legacy acquisition integration, technology modernization, and process efficiencies
  • Q3 operating loss of $102.1 million including $102.0 million of non-cash goodwill impairment charges; $4.3 million of operating earnings on an adjusted basis
  • Q3 adjusted EBITDA of $16.5 million, adjusted EBITDA margin decreased 70 basis points (“bps”) to 1.8%
  • The Company expects to be active with Class A share repurchases in Q4, reflecting confidence in its strategy and commitment to an opportunistic approach to capital allocation

Chris Layden, chief executive officer, said, “As I step into this role at an important moment in Kelly’s strategic journey, the operating environment is evolving, driven by a dynamic macroeconomic landscape, global and domestic policy shifts, a sluggish labor market, and the AI boom. While Kelly continued to capture growth in more resilient markets where we have chosen to focus, these dynamics became more visible in our results in the third quarter. Our team knows that Kelly can achieve more, and we are addressing near-term opportunities to enhance our execution and agility while continuing to position the company for the future. I look forward to meeting this moment together and leading Kelly to drive profitable growth and lasting value for all our stakeholders.”

Financial Results for the thirteen-week period ended September 28, 2025:

Revenue of $935.0 million, a 9.9% decrease compared to the corresponding quarter of 2024 primarily driven by lower demand in our ETM and SET segments, partially offset by growth of 0.9% in the Education segment. Discrete impacts associated with reduced demand for U.S. federal government contractors and from three large private sector customers totaled approximately 8%, resulting in an underlying revenue decline of approximately 2%.

Operating loss of $102.1 million, compared to earnings of $2.6 million reported in the third quarter of 2024. Current quarter operating loss reflects non-cash goodwill impairment charges totaling $102.0 million related to reduced demand, integration of the Motion Recruitment Partners, LLC (“MRP”) and Softworld acquisitions in the SET segment and realignment in the SET segment. Adjusted earnings1 were $4.3 million in the third quarter of 2025 and $11.7 million in the third quarter of 2024. Adjusted EBITDA1 of $16.5 million, a decrease of 36.7% versus the prior year period. Adjusted EBITDA margin of 1.8%, a decrease of 70 basis points driven primarily by near-term margin pressure in SET and ETM reflecting lower gross margins and timing of revenue trends and related expense management actions.

Income tax expense of $46.4 million, compared to income tax benefit of $2.6 million reported in the third quarter of 2024. Current quarter expense reflects non-cash goodwill impairment charges and a $69.7 million valuation allowance established against a portion of our work opportunity credit carryforwards due to cumulative losses in recent years. On an adjusted basis1, income tax benefit of $3.8 million, compared to income tax benefit of $0.3 million in the third quarter of 2024.

Loss per share was $4.26 including non-cash goodwill impairment charges totaling $2.37 per share, net of tax, and a valuation allowance charge on deferred tax assets of $1.98 per share, compared to earnings per share of $0.02 in the third quarter of 2024. On an adjusted basis1, earnings per share were $0.18 in the third quarter of 2025 compared to $0.21 per share in the corresponding quarter of 2024.

Financial Results for the 39-week period ended September 28, 2025:

Revenue of $3.2 billion, a 1.9% increase compared to the corresponding period in 2024 resulting primarily from the May 2024 acquisition of MRP. Excluding the impact of the acquisition, revenue was down 4.2% on an organic basis and includes approximately 5.0% revenue decline due to discrete impacts associated with reduced demand for U.S. federal government contractors and from three large private sector customers, and growth of 5.0% in the Education segment.

Operating loss of $69.1 million, compared to earnings of $41.6 million reported over the same period in 2024. Current year operating loss reflects non-cash goodwill impairment charges totaling $102.0 million related to reduced demand, integration of the MRP and Softworld acquisitions in the SET segment and realignment in the SET segment. Adjusted earnings1 were $51.0 million in the first nine months of 2025 and $62.9 million in the corresponding period of 2024. Adjusted EBITDA1 of $88.4 million, a decrease of 11.5% versus the prior year period. Adjusted EBITDA margin of 2.8%, a decrease of 40 basis points driven primarily by near-term margin pressure in SET and ETM reflecting timing of revenue trends and related expense management actions.

Income tax expense of $49.1 million, compared to income tax expense of $2.5 million reported over the same period in 2024. Current expense reflects non-cash goodwill impairment charges and a $69.7 million valuation allowance established against a portion of our work opportunity credit carryforwards due to cumulative losses in recent years. On an adjusted basis1, income tax expense of $3.4 million, compared to income tax expense of $7.6 million in the corresponding period of 2024.

Loss per share was $3.56 including non-cash goodwill impairment charges of $2.38 per share, net of tax, and a valuation allowance charge on deferred tax assets of $1.98 per share, compared to earnings per share of $0.85 in the same period of 2024. On an adjusted basis1, earnings per share were $1.16 for the first nine months of 2025 compared to $1.47 per share in the corresponding period of 2024 reflecting higher net interest expense following the MRP acquisition and lower operating earnings.
_________________________________________
1 Adjusted measures represent non-GAAP financial measures. Refer to our reconciliation of non-GAAP financial measures to the most closely related GAAP measure included in this document.

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%, 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.

In conjunction with its earnings release, Kelly has published a financial presentation and will host a live webcast of a conference call at 9 a.m. ET on November 6 to review the financial and operation results from the quarter. The presentation and a link to the live webcast will be accessible through the Company’s public website on the Investor Relations page under Events & Presentations. The webcast will be recorded, and a replay will be available within one hour of completion of the event through the same link as the live webcast.

Forward-Looking Statements:

This release contains statements that are forward looking in nature and, accordingly, are subject to risks and uncertainties. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. Statements that are not historical facts, including statements about Kelly’s financial expectations, are forward-looking statements. Factors that could cause actual results to differ materially from those contained in this release include, but are not limited to, (i) changing market and economic conditions, (ii) disruption in the labor market and weakened demand for human capital resulting from technological advances, loss of large corporate customers and government contractor requirements, (iii) the impact of laws and regulations (including federal, state and international tax laws), (iv) unexpected changes in claim trends on workers’ compensation, unemployment, disability and medical benefit plans, (v) litigation and other legal liabilities (including tax liabilities) in excess of our estimates, (vi) our ability to achieve our business’s anticipated growth strategies, (vii) our future business development, results of operations and financial condition, (viii) damage to our brands, (ix) dependency on second parties for the execution of critical functions, (x) conducting business in foreign countries, including foreign currency fluctuations, (xi) availability of temporary workers with appropriate skills required by customers, (xii) cyberattacks or other breaches of network or information technology security, and (xiii) other risks, uncertainties and factors discussed in this release and in the Company’s filings with the Securities and Exchange Commission. In some cases, forward-looking statements can be identified by words or phrases such as “may,” “will,” “expect,” “anticipate,” “target,” “aim,” “estimate,” “intend,” “plan,” “believe,” “potential,” “continue,” “is/are likely to” or other similar expressions. All information provided in this press release is as of the date of this press release and we undertake no duty to update any forward-looking statement, whether as a result of new information, future events, or otherwise, except as required by law.

About Kelly®

Kelly Services, Inc. (Nasdaq: KELYA, KELYB) helps companies recruit and manage skilled workers and helps job seekers find great work. Since inventing the staffing industry in 1946, we have become experts in the many industries and local and global markets we serve. With a network of suppliers and partners around the world, we connect more than 400,000 people with work every year. Our suite of outsourcing and consulting services ensures companies have the people they need, when and where they are needed most. Headquartered in Troy, Michigan, we empower businesses and individuals to access limitless opportunities in industries such as science, engineering, technology, education, manufacturing, retail, finance, and energy. Revenue in 2024 was $4.3 billion. Learn more at kellyservices.com.

KLYA-FIN

ANALYST & MEDIA CONTACT:
Scott Thomas
(248) 251-7264
scott.thomas@kellyservices.com

View full release here.

The ODP Corporation (ODP) – Reports 3Q Results

Posted on by slightbourne@noblecapitalmarkets.com


Thursday, November 06, 2025

Office Depot, Inc., together with its subsidiaries, supplies a range of office products and services. It offers merchandise, such as general office supplies, computer supplies, business machines and related supplies, and office furniture through its chain of office supply stores under the Office Depot, Foray, Ativa, Break Escapes, Worklife, and Christopher Lowell brand names. The company also provides graphic design, printing, reproduction, mailing, shipping, and other services through design, print, and ship centers. It has operations throughout North America, Europe, Asia, and Central America. The company also sells its products and services through direct mail catalogs, contract sales force, Internet sites, and retail stores, through a mix of company-owned operations, joint ventures, licensing and franchise agreements, alliances, and other arrangements. As of December 31, 2008, Office Depot operated 1,267 North American retail division office supply stores and 162 international division retail stores, as well as participated under licensing and merchandise arrangements in 98 stores. The company was founded in 1986 and is based in Boca Raton, Florida.

Joe Gomes, CFA, Managing Director, Equity Research Analyst, Generalist , Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

3Q25 Results. In likely the last quarterly report before being acquired, ODP released 3Q25 results in-line with our projections. Revenue of $1.625 billion was down 9% y-o-y. We were at $1.675 billion. Adjusted EBITDA came in at $62 million, flat y-o-y, and compared to our $66 million estimate. Net income was $23 million, or $0.72/sh, in-line with our $23 million estimate. Adjusted net income $36 million, or $1.14/sh, compared to $24 million, or $0.71/sh, in 3Q24.

Business Solutions. Segment sales of $862 million were down 6% y-o-y due to the soft economy. However, revenue trends improved 200 basis points y-o-y, driven by success in onboarding new customers, including 600 new hotel properties, targeted sales initiatives, and incremental growth in the hospitality sector. The Company is making progress on potential new agreements with several leading hospitality management companies. Segment OpInc. totaled $14 million versus $28 million in 3Q24.


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Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision. 

Superior Group of Companies (SGC) – The Quarter Highlights Attractive Profit Growth Potential

Posted on by slightbourne@noblecapitalmarkets.com


Tuesday, November 04, 2025

Michael Kupinski, Director of Research, Equity Research Analyst, Digital, Media & Technology , Noble Capital Markets, Inc.

Jacob Mutchler, Research Associate, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

In-line quarter. While revenues were a tad lighter than we hoped, the company over delivered on its SG&A cuts. As such, adj. EBITDA was in line with expectations. The modest revenue variance was completely due to softer Contact Center revenue. A portion of the revenue decline was due to the loss of a client, but there appears to be a strong pipeline of business. As such,  Contact Center revenue trends should improve in subsequent quarters.

Cost cutting initiatives take center stage. SG&A expenses declined in each of the company’s operating segments, with cuts that exceeded expectations in each segment, as well. We believe that the cost reductions set the company up well for significant margin expansion as the market environment returns toward “normalcy.”


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Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision. 

Resources Connection (RGP) – A Transition At The Top

Posted on by slightbourne@noblecapitalmarkets.com


Tuesday, November 04, 2025

Resources Connection, Inc. provides agile consulting services in North America, Europe, and the Asia Pacific. The company offers finance and accounting services, including process transformation and optimization, financial reporting and analysis, technical and operational accounting, merger and acquisition due diligence and integration, audit readiness, preparation and response, implementation of new accounting standards, and remediation support. It also provides information management services, such as program and project management, business and technology integration, data strategy, and business performance management. In addition, the company offers corporate advisory, strategic communications, and restructuring services; and corporate governance, risk, and compliance management services, such as contract and regulatory compliance, enterprise risk management, internal controls management, and operation and information technology (IT) audits. Further, it provides supply chain management services comprising strategy development, procurement and supplier management, logistics and materials management, supply chain planning and forecasting, and unique device identification compliance; and human capital services, including change management, organization development and effectiveness, compensation and incentive plan strategies, and optimization of human resources technology and operations. Additionally, the company offers legal and regulatory supporting services for commercial transactions, global compliance initiatives, law department operations, and law department business strategies and analytics. It also provides policyIQ, a proprietary cloud-based governance, risk, and compliance software application. The company was formerly known as RC Transaction Corp. and changed its name to Resources Connection, Inc. in August 2000. Resources Connection, Inc. was founded in 1996 and is headquartered in Irvine, California.

Joe Gomes, CFA, Managing Director, Equity Research Analyst, Generalist , Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

A CEO Transition. Yesterday, Resources Connection announced the appointment of Board member Roger Carlile to serve as President and CEO, effective immediately. The leadership change comes as the Company seeks to advance its strategic transformation. Concurrently, former President and CEO  Kate Duchene has transitioned to Executive Advisor through  January 3, 2026.

Carlile at RGP. Mr. Carlile joined RGP’s Board of Directors in June 2024. Since joining the Board, Mr. Carlile has been working with the Company on the growth strategy with a focus on CFO Advisory and Digital Transformation consulting solutions. As CEO, Mr. Carlile brings a strong combination of skills, as both a former CFO of a public consulting firm and the founder and former CEO of a high-growth consulting firm, and has proven expertise in professional services management, investor engagement, and capital allocation strategies.


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Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.