KELYB

• Announced agreement with Hunt Companies for Class B stock purchase, reconstituted board with new directors. - Fourth quarter revenue at top end of expectations, segments performed with Education growth, SET telecom growth offsetting IT pressure, ETM stable. - Technology modernization initiative: SET acquisitions cut over to modernized platform. - AI integration: Launched Grace Boost, AI recruiting solution deployed for a customer with positive results. - Appointed Pat McCall as Chief Growth Officer, initiated search for next President of SET.

For 2026, Q1 revenue expected to decline 11-13% y/y or underlying decline 3-5% ex-discrete, adjusted EBITDA margin ~1.5% stepping down from Q4. Expect relative improvement each quarter, modest revenue growth in H2, adjusted EBITDA margin expansion in H2 as discrete impacts anniversary and growth initiatives take effect.

For the fiscal year, revenue totaled $4,250,000,000, down 1.9% overall. At the segment level, Education grew 1.3%, reflecting continued fill rate improvement. SET’s underlying revenue declined 5.4% in the quarter, modestly better than expectations, with demand pressure in IT offset by telecom growth. Underlying ETM also declined 5.4%, relatively consistent across quarters. Reported gross profit was $197,000,000, down 18.4% vs prior year, with gross profit rate 18.8%, down 150bps. Education’s GP rate held flat at 14.2%, SET’s at 24.2% declined 130bps, and ETM’s at 18.1% declined 220bps.

• Discrete impacts from federal government and large customers. - Macroeconomic uncertainties affecting hiring. - Incremental gross margin pressure from employee-related costs (healthcare, workers' comp) and business mix changes. - Technology integration challenges with modernization initiative.

Q: Joseph Gomes asked about Hunt's expertise and impact on Class A shareholders.

A: Chris Layden said Hunt supports growth, no changes to business, governance protections align interests.

Q: Kartik Mehta asked about AI impact on Kelly.

A: Chris Layden said AI is net positive, enabling productivity and differentiation.

Q: Kevin Steinke asked about margin trend and 2026 outlook.

A: Troy Anderson and Chris Layden discussed margin drivers, growth initiatives like Chief Growth Officer and organic growth drivers, and AI's role in efficiency.