KELYA | Market Cap: $496.1M (07/13/26)
Industry:
Commercial Services

DESCRIPTION

Kelly is a specialty talent solutions company that places roughly 375,000 workers annually with employers across North America. Kelly operates three segments: Science, Engineering & Technology (SET), Education, and Enterprise Talent Management (ETM). SET provides specialized staffing and project-based services in technology, telecom, life sciences, and engineering. Education places substitute teachers, permanent hires, and pediatric therapy staff with K-12 school districts—Kelly claims to be the #1 K-12 substitute staffing provider in the U.S. ETM, the largest segment by revenue, covers light industrial, contact center, and office/clerical staffing, as well as managed service provider (MSP), recruitment process outsourcing (RPO), and payroll outsourcing solutions globally. Kelly's core business model is straightforward: Kelly places temporary workers with clients, charges a bill rate above the worker's pay rate, and retains the spread as gross profit. Kelly remains the employer of record for temporary workers, handling payroll, benefits, and taxes. Higher-margin engagements—outcome-based project work, permanent placement, and consulting—are a growing focus, particularly in SET. In MSP, Kelly manages a client's entire contingent labor supply chain rather than placing workers directly, which reduces margin but also reduces working capital needs. Kelly's business is cyclical, with Education somewhat insulated given its dependence on school budgets rather than corporate hiring. Kelly's growth strategy centers on expanding fill rates in Education, growing statement-of-work and consulting in SET, and winning new MSP and RPO contracts in ETM through its Kelly Helix technology platform.

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