ISG (Information Services Group) (Nasdaq: III) is a leading global technology research and advisory firm. A trusted business partner to more than 700 clients, including more than 75 of the world’s top 100 enterprises, ISG is committed to helping corporations, public sector organizations, and service and technology providers achieve operational excellence and faster growth. The firm specializes in digital transformation services, including automation, cloud and data analytics; sourcing advisory; managed governance and risk services; network carrier services; strategy and operations design; change management; market intelligence and technology research and analysis. Founded in 2006, and based in Stamford, Conn., ISG employs more than 1,300 digital-ready professionals operating in more than 20 countries—a global team known for its innovative thinking, market influence, deep industry and technology expertise, and world-class research and analytical capabilities based on the industry’s most comprehensive marketplace data. For additional information, visit www.ISG-One.com
Joe Gomes, CFA, Managing Director, Equity Research Analyst, Generalist , 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.
Q1 Results. Reported Q1 revenue of $59.6 million, slightly over the top end of management’s issued guidance and our estimate of $59.0 million. Net income totaled $1.5 million, or $0.03 per diluted share, an improvement from a loss of $3.4 million, or $0.07 per share, last year. We estimated a net income of $0.78 million or $0.02 per share. Adjusted EBITDA was $7.4 million, near the high end of management’s issued guidance and above our estimate of $6.5 million. Adjusted EPS for Q1 came in at $0.07 per share, up from $0.01 per share last year, and above our estimate of $0.05 per share.
Favorable Developments. Notably, adj. EBITDA increased 68%, and adj. EBITDA margin increased by more than 550 basis points compared to the prior year period. The favorable growth in adj. EBITDA and adj. EBITDA margin are reflective of the Company’s disciplined operating approach and improved business mix. Additionally, we believe the Company is well-positioned to benefit from the uncertain economic environment as more companies look to optimize costs with investments in technology.
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*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.
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.
Jacob Mutchler, Research Associate, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Q1 Results. The Company recorded revenue of $1.16 billion, up 11.5% year over year, in line with our estimate of $1.16 billion. Adj. EBITDA came in at $34.9 million, up 4.8% over the prior year period and modestly lower than our estimate of $36.5 million. Adj. EBITDA margin decreased 20 basis points to 3.0%. Furthermore, Kelly reported net income of $0.16/sh. On an adjusted basis, EPS was $0.39/sh compared to $0.56/sh last year and our estimate of $0.60/sh.
Solid Results. The y-o-y revenue growth of 11.5% was largely driven by the Company’s May 2024 acquisition of Motion Recruitment Partners (MRP). On an organic basis, total revenue was only up 0.2%, which includes a 0.8% decrease in revenue from U.S. federal contractors and a 6.3% increase in Education segment revenue.
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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.
For more than 45 years, 1-800-Flowers.com has offered truly original floral arrangements, plants and unique gifts to celebrate birthdays, anniversaries, everyday occasions, and seasonal holidays, and to deliver comfort during times of grief. Backed by a caring team obsessed with service, 1-800-Flowers.com provides customers thoughtful ways to express themselves and connect with the most important people in their lives. 1-800-Flowers.com is part of the 1-800-FLOWERS.COM, Inc. family of brands. Shares in 1-800-FLOWERS.COM, Inc. are traded on the NASDAQ Global Select Market, ticker symbol: FLWS.
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.
Fiscal Q3 disappoints. Fiscal Q3 revenues of $311.5 million was well below our $367.8 million estimate. Adj. EBITDA loss of $38.6 million was below our seasonal loss estimate of $12.4 million. In spite of a good Valentine’s Day, fiscal third quarter results were adversely affected by weakened consumer confidence and macro economic forces.
Pulls guidance. In lieu of recent trade policies and a weakened consumer, management pulled fiscal full year 2025 guidance. We estimate that fiscal Q4 revenues will decline roughly 6.3% (including the benefit of Easter) and that the company will report an adj. EBITDA loss of $20.5 million. Fiscal full year 2025 revenue and adj. EBIDA are revised to $1.687 billion and $29.2 million, respectively.
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*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.
DLH delivers improved health and readiness solutions for federal programs through research, development, and innovative care processes. The Company’s experts in public health, performance evaluation, and health operations solve the complex problems faced by civilian and military customers alike, leveraging digital transformation, artificial intelligence, advanced analytics, cloud-based applications, telehealth systems, and more. With over 2,300 employees dedicated to the idea that “Your Mission is Our Passion,” DLH brings a unique combination of government sector experience, proven methodology, and unwavering commitment to public health to improve the lives of millions. For more information, visit www.DLHcorp.com.
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.
Moving Forward. While the path forward has been more challenging than we had anticipated, we believe DLH remains on the right path to strong operating results. We believe the Company’s core competencies are well aligned with the Federal government’s goals.
New Business. Management expects some $1 billion of business to be awarded by the end of the fiscal year, providing a substantial opportunity for DLH to win its fair share and drive organic growth in 2026. Yesterday, the Company announced it had been awarded a five year task order valued at up to $37.7 million to continue delivering scientific research and development, modeling & simulation, artificial intelligence, machine learning, robotic process automation, biomedical engineering, and cloud-enabled big data analytic solutions for the Telemedicine and Advanced Technology Research Center.
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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.
InPlay Oil is a junior oil and gas exploration and production company with operations in Alberta focused on light oil production. The company operates long-lived, low-decline properties with drilling development and enhanced oil recovery potential as well as undeveloped lands with exploration possibilities. The common shares of InPlay trade on the Toronto Stock Exchange under the symbol IPO and the OTCQX Exchange under the symbol IPOOF.
Mark Reichman, Managing Director, Equity Research Analyst, Natural Resources, Noble Capital Markets, Inc.
Hans Baldau, Associate Analyst, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
First quarter financial results. InPlay Oil reported a first quarter net loss of C$2.9 million or C$0.18 per share compared to net income of C$1.7 million or C$0.02 per share during the prior year period. This was below our net income estimate of C$4.2 million or C$0.15 per share, primarily due to an unrealized loss on derivative contracts of C$4.6 million and higher-than-expected expenses. Moreover, commodity prices declined slightly during the first quarter, leading to lower revenues of C$38.4 million compared to our estimate of C$40.4 million.
Corporate 2025 guidance. The company generated quarterly production of 9,076 barrels of oil equivalent per day (boe/d), a 5% increase year-over-year and above our expectations of 8,800 boe/d. The company is raising its estimated field production expectations to 21,500 boe/d, a marked increase from 18,750 boe/d, and expects 2025 full year production to be in the range of 16,000 to 16,800 boe/d. Revenue guidance has been adjusted downward to C$46.75 to C$51.75 boe/d from C$56.50 to C$61.50 boe/d. Adjusted funds flow is expected to be between C$124 million and C$133 million, down from $204 million.
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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.
Townsquare is a community-focused digital media and digital marketing solutions company with market leading local radio stations, principally focused outside the top 50 markets in the U.S. Our assets include a subscription digital marketing services business, Townsquare Interactive, providing website design, creation and hosting, search engine optimization, social media and online reputation management as well as other digital monthly services for approximately 26,800 SMBs; a robust digital advertising division, Townsquare IGNITE, a powerful combination of a) an owned and operated portfolio of more than 330 local news and entertainment websites and mobile apps along with a network of leading national music and entertainment brands, collecting valuable first party data, and b) a proprietary digital programmatic advertising technology stack with an in-house demand and data management platform; and a portfolio of 321 local terrestrial radio stations in 67 U.S. markets strategically situated outside the Top 50 markets in the United States. Our portfolio includes local media brands such as WYRK.com, WJON.com, and NJ101.5.com and premier national music brands such as XXLmag.com, TasteofCountry.com, UltimateClassicRock.com and Loudwire.com.
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.
Solid first quarter results. Total company revenues were down a modest 1% to $98.7 million, in line with our $98.5 million estimate. Digital revenues increased 6.4%, nearly completely offsetting the weakness in legacy broadcast. Notably, Digital revenue in the quarter represented 57% of total revenue, but, more importantly, 62% of total company adj. EBITDA. Q1 adj. EBITDA of $18.1 million was better than our $17.0 million estimate.
Ignite continues to be on fire. Ignite, the company’s programmatic/advertising solutions business, increased revenues an attractive 7.6% in the quarter. Management indicated that the growth of Ignite will be enhanced by its white label initiative, which is expected to account for $10 million in revenue in 2025 and is expected to grow to $50 million in the next 3 to 5 years and with a 20% operating margin.
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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.
Saga Communications, Inc. is a broadcast company whose business is primarily devoted to acquiring, developing and operating radio stations. Saga currently owns or operates broadcast properties in 27 markets, including 79 FM and 33 AM radio stations. Saga’s strategy is to operate top billing radio stations in mid sized markets, defined as markets ranked (by market revenues) from 20 to 200. Saga’s radio stations employ a myriad of programming formats, including Active Rock, Adult Album Alternative, Adult Contemporary, Country, Classic Country, Classic Hits, Classic Rock, Contemporary Hits Radio, News/Talk, Oldies and Urban Contemporary. In operating its stations, Saga concentrates on the development of strong decentralized local management, which is responsible for the day-to-day operations of the stations in their market area and is compensated based on their financial performance as well as other performance factors that are deemed to effect the long-term ability of the stations to achieve financial objectives. Saga began operations in 1986 and became a publicly traded company in December 1992. The stock trades on NASDAQ under the ticker symbol “SGA”.
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.
Q1 Results. The company reported Q1 revenue of $24.2 million and an adj. EBITDA loss of $0.5 million, both of which declined over the prior year period, but were modestly better than our estimates of $23.0 million and a loss of $1.1 million, respectively, as illustrated in Figure #1 Q1 Results. Notably, the company is focused on its blended digital growth strategy and improving profitability. We believe the company’s strategic actions are a step in the right direction for returning toward revenue and adj. EBITDA growth.
Digital growth strategy. The company’s blended growth strategy combines radio and digital advertising to provide a consistent message to customers on both mediums and to drive radio listeners to digital platforms. Notably, year to date, the company has generated digital revenue of $5.3 million, surpassing the company’s $5.0 million generated for full year 2024.
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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.
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 Solid Start. ONE Group reported results modestly above our expectations for 1Q25. The accomplishments were driven by another quarter of sequential improvement in comparable sales trends, positive comparable sales at the Benihana restaurants, and strong positive transaction growth of 4.1% at the flagship STK brand.
1Q25 Results. ONE Group reported revenue of $211.1 million, up nearly 150% y-o-y, driven by the May 2024 Benihana acquisition. Same Store Sales declined 3.2%, compared to guidance of a negative 3-4%. Adjusted EBITDA was $25.2 million, up from $7.6 million. Adjusted EPS came in at $0.14, compared to an adjusted loss of $0.02/sh last year.
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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).
Lucky Strike Entertainment is one of the world’s premier location-based entertainment platforms. With over 360 locations across North America, Lucky Strike Entertainment provides experiential offerings in bowling, amusements, water parks, and family entertainment centers. The company also owns the Professional Bowlers Association, the major league of bowling and a growing media property that boasts millions of fans around the globe. For more information on Lucky Strike Entertainment, please visit ir.luckystrikeent.com.
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.
Lackluster Q3 Results. The company reported Q3 revenue of $339.9 million and adj. EBITDA of $117.3 million, both of which were lower than our estimates of $360.0 million and $130 million, respectively, as illustrated in Figure #1 Q3 Results. Notably, the soft results were largely driven by a decrease in corporate events in California and Seattle, and partially offset by high single digit increase in food sales and stable retail and league business. While Q3 results were lackluster, we believe the company will gain momentum heading into the summer.
Favorable developments. The company’s Summer Season Pass program, aimed at driving retail traffic, increased sales by more than 200% compared with this time last year. Additionally, the company is heading into summer with three water parks and seven family entertainment centers that were acquired this year. We believe the company is well positioned to benefit from its enhanced scale, in spite of the economic uncertainty.
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Key Points: – IonQ has agreed to acquire Capella Space to accelerate its development of a global quantum key distribution (QKD) network. – Capella’s radar imaging satellites will help enable space-based secure communication for defense and commercial sectors. – The acquisition follows IonQ’s broader strategy to dominate quantum networking through vertical integration and space-based infrastructure
Quantum computing firm IonQ is doubling down on its ambitions in secure communication. On Wednesday, the Maryland-based company announced a deal to acquire Capella Space, a satellite imaging firm known for its synthetic aperture radar (SAR) technology, in a move designed to supercharge its push into quantum networking.
The acquisition marks a pivotal moment for IonQ, as it shifts from primarily offering quantum computing solutions to developing a space-based quantum key distribution (QKD) network. QKD is seen as essential for enabling unhackable communication channels in a future where classical encryption could be rendered obsolete by quantum computers.
Capella, based in San Francisco, operates four commercial satellites that collect high-resolution X-band SAR imagery, useful for intelligence, disaster response, and maritime surveillance. The company has additional satellite launches planned for this year, which will expand its imaging capabilities and support IonQ’s space-to-space and space-to-ground QKD efforts.
According to IonQ CEO Niccolo de Masi, the acquisition will “deepen and accelerate IonQ’s quantum networking leadership” by combining Capella’s satellite infrastructure with IonQ’s quantum technologies. “We have an exceptional opportunity to accelerate our vision for the quantum internet,” he said.
In addition to providing satellite assets, Capella also brings a valuable facility security clearance, enabling closer collaboration with U.S. defense and intelligence agencies—key customers for quantum-secure communications.
The Capella deal is the latest in a string of strategic moves by IonQ. Earlier this year, it acquired Qubitekk, a specialist in quantum networking, and Lightsynq Technologies, a startup founded by former Harvard researchers focused on quantum memory. IonQ has also signed a memorandum of understanding with Intellian Technologies, a satellite hardware manufacturer, to explore integrating quantum networking into future satellite ground systems.
Capella CEO Frank Backes echoed the enthusiasm, saying the integration of Capella’s radar imaging with IonQ’s quantum computing would enhance global defense and commercial missions through “ultra-secure environments.”
The transaction, expected to close in the second half of 2025 pending regulatory approval, continues a trend of quantum-tech consolidation as players position themselves to meet anticipated demand for secure communications in both government and private sectors. As cyber threats grow and classical encryption ages, the ability to offer end-to-end quantum-secure channels—especially via space infrastructure—may become a competitive necessity.
IonQ’s aggressive strategy has drawn investor interest, with its stock gaining momentum in recent weeks. As the quantum industry matures, vertical integration—spanning hardware, software, and infrastructure—is becoming increasingly critical.
If successful, IonQ’s vision for a global quantum-secure network could reshape how sensitive data is protected and transmitted across borders, laying the groundwork for a new era of secure, quantum-powered communication.
Key Points: – Tripledot Studios acquires AppLovin’s mobile gaming division for $800 million, expanding its global footprint. – The deal includes 10 studios and popular titles, boosting Tripledot’s daily active users to over 25 million. – AppLovin receives a 20% equity stake in Tripledot, signaling a strategic shift towards its core adtech business
In a significant move within the mobile gaming industry, London-based Tripledot Studios has announced the acquisition of AppLovin’s mobile gaming division for approximately $800 million. The transaction, structured as a combination of cash and equity, will see AppLovin become a minority shareholder in Tripledot, holding a 20% stake.
This acquisition encompasses 10 studios and a suite of popular titles, including “Wordscapes,” “Project Makeover,” and “Game of War.” With this expansion, Tripledot’s operational scale will increase to 12 studios across 23 cities, serving over 25 million daily active users and generating nearly $2 billion in annual gross revenue.
Founded in 2017, Tripledot Studios has rapidly ascended in the mobile gaming sector, known for hits like “Woodoku” and “Solitaire.com.” The company’s co-founder and CEO, Lior Shiff, emphasized the strategic importance of this deal, stating, “Acquiring AppLovin’s games portfolio is a big step towards achieving our goal of becoming the world’s most successful mobile game studio.”
For AppLovin, this divestiture marks a strategic pivot towards its core competency in advertising technology. The company, which provides software for app monetization and marketing, reported strong first-quarter earnings, with a 40% year-over-year increase in revenue to $1.48 billion. AppLovin’s CEO, Adam Foroughi, acknowledged the company’s shift, noting, “We’ve never been a game developer at heart,” and expressed confidence in Tripledot’s ability to nurture the acquired studios.
The mobile gaming industry has experienced a slowdown following a pandemic-induced surge, with a 6% decline in downloads last year due to market saturation. Despite these challenges, Tripledot has maintained profitability since its second year of operation, leveraging a diversified portfolio and advertising-driven revenue models.
Analysts view this acquisition as a consolidation move that positions Tripledot among the top-tier independent mobile game companies globally. The deal is expected to close by early summer 2025, pending regulatory approvals. Tripledot plans to invest further in artificial intelligence to enhance game development efficiency and user experience.
Key Points: – The U.S. will reduce tariffs on UK steel and aluminum to 0%, and lower car import duties to 10% for up to 100,000 vehicles annually. – The UK will eliminate tariffs on U.S. ethanol and expand access for American agricultural products, while maintaining strict food safety standards. – Both nations will initiate negotiations on a technology partnership focusing on AI, bioengineering, and quantum computing
In a significant development, President Donald Trump announced a new trade agreement with the United Kingdom on May 8, 2025. This marks the first major bilateral pact since the U.S. imposed sweeping tariffs earlier this year, signaling a potential shift in the ongoing global trade tensions.
Key Highlights of the Deal:
Tariff Reductions: The agreement includes a reduction of U.S. tariffs on U.K.-made steel from 25% to 0% and on car exports from 27.5% to 10%.
Agricultural Access: The U.K. will remove tariffs on U.S. ethanol and provide increased market access for American beef, machinery, and agricultural products.
Digital Services: Concessions were made regarding digital service taxes that impact U.S. tech companies, aiming to ease tensions in the technology sector.
Market Reactions:
The announcement had immediate effects on the markets. U.S. stocks experienced an uptick, with the Dow Jones Industrial Average and S&P 500 both rising by over 1%. Investors viewed the deal as a positive step towards stabilizing trade relations and reducing economic uncertainty.
Unresolved Issues:
Despite the progress, several aspects remain under negotiation. Notably, the U.K. has maintained its food and animal welfare standards, meaning U.S. beef exports will still face regulatory hurdles. Additionally, the reduction in car tariffs applies only to the first 100,000 vehicles imported annually, aligning with current export levels.
Broader Implications:
This deal comes amid a backdrop of global trade tensions, with the U.S. having imposed a 10% baseline tariff on imports from nearly every country, along with higher tariffs on specific sectors like steel, aluminum, and automobiles. The agreement with the U.K. could serve as a template for future negotiations with other trade partners, potentially easing some of the strain caused by recent protectionist measures.
Conclusion:
The U.S.-U.K. trade agreement represents a noteworthy development in international trade relations. While it addresses key sectors and provides a framework for cooperation, the deal’s limited scope and the persistence of certain tariffs indicate that significant challenges remain. As negotiations continue, stakeholders will be closely monitoring how this agreement influences broader trade dynamics and economic policies.
TROY, Mich., May 08, 2025 (GLOBE NEWSWIRE) — Kelly (Nasdaq: KELYA, KELYB), a leading specialty talent solutions provider, today announced results for the first quarter of 2025.
Q1 revenue of $1.16 billion, up 11.5% year-over-year reflecting previously disclosed acquisitions, and up 0.2% on an organic basis
Q1 operating earnings of $10.8 million; $22.1 million on an adjusted basis, down 4.3% versus the prior year period
Q1 adjusted EBITDA of $34.9 million, up 4.8% versus the prior year; adjusted EBITDA margin decreased 20 basis points (bps) to 3.0%
Company expects year-over-year revenue growth of 6.0% to 7.0% in Q2. Also expects Q2 year-over-year adjusted EBITDA margin decline of 20 to 30 bps, with anticipated margin expansion in Q3 and Q4, and for the full year.
“In the first quarter, Kelly delivered organic revenue growth that was in-line with our expectations, and once again outperformed the market. Our performance was driven primarily by continued strength in Education, as well as growing demand for our higher-margin outcome-based solutions within the semiconductor and renewables sectors,” said Peter Quigley, president and chief executive officer. “Through our ongoing focus on efficiency and effectiveness, we are well prepared to navigate this rapidly evolving macroeconomic environment while driving further progress on our specialty growth journey. By staying close with our customers and executing our strategic priorities, Kelly will be well positioned to capitalize when demand rebounds.”
Financial Results for the thirteen-week period ended March 30, 2025:
Revenue of $1.16 billion, an 11.5% increase compared to the corresponding quarter of 2024 resulting primarily from the May 2024 acquisition of Motion Recruitment Partners, LLC (“MRP”). Excluding the impact of the MRP acquisition, revenue was up 0.2% on an organic basis, includes approximately 0.8% of revenue decline due to reduced demand for U.S. federal government contractors and growth of 6.3% in the Education segment.
Operating earnings of $10.8 million, compared to earnings of $26.8 million reported in the first quarter of 2024. Adjusted earnings1 were $22.1 million in the first quarter of 2025 and $23.1 million in the first quarter of 2024. Adjusted EBITDA1 of $34.9 million, an increase of 4.9% versus the prior year period. Adjusted EBITDA margin of 3.0%, a decrease of 20 basis points driven primarily by near-term margin pressure in SET reflecting timing of revenue trends and related expense actions.
Earnings per share was $0.16 compared to earnings per share of $0.70 in the first quarter of 2024. On an adjusted basis1, earnings per share were $0.39 in the first quarter of 2025 compared to $0.56 per share in the corresponding quarter of 2024. The year-over-year decline includes $0.15 of increased net interest expense due to an elevated cash balance in the prior year quarter and debt incurred in Q2 2024 in conjunction with the MRP acquisition.
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.
Quarterly Cash Dividend:
Kelly also reported that on May 6, its board of directors declared a dividend of $0.075 per share. The dividend is payable on June 3, 2025 to stockholders of record as of the close of business on May 19, 2025.
In conjunction with its earnings release, Kelly has published a financial presentation and will host a live webcast of a conference call with financial analysts at 9 a.m. ET on May 8 to review the results from the quarter and answer questions. 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 first 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 to conform the statement to actual results or changes in the Company’s expectations.
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.
