KELLY SERVICES INCKELYA

KELLY SERVICES INC Earnings Per Share Disclosure

10-KFiled Feb 12, 20262 min read
13. Earnings (Loss) Per Share

The reconciliation of basic earnings (loss) per share on common stock for 2025, 2024 and 2023 follows:

 202520242023
Net earnings (loss)$(254.1)$(0.6)$36.4 
Less: Earnings allocated to participating securities— — (0.7)
Net earnings (loss) available to common shareholders$(254.1)$(0.6)$35.7 
Average common shares outstanding (millions):
Basic35.1 35.5 35.9 
Dilutive share awards— — 0.4 
Diluted35.1 35.5 36.3 
Basic earnings (loss) per share$(7.24)$(0.02)$0.99 
Diluted earnings (loss) per share$(7.24)$(0.02)$0.98 

Due to the Company's net loss in 2025 and 2024, potentially dilutive shares outstanding, primarily related to deferred common stock associated with the non-employee directors deferred compensation plan and performance shares, of 0.5 million shares and 0.4 million shares in 2025 and 2024, respectively, had an anti-dilutive effect on diluted earnings per share and were excluded from the computation. Potentially dilutive shares outstanding for 2023 are primarily related to deferred common stock associated with the non-employee directors deferred compensation plan and performance shares (see Stock-Based Compensation footnote for a description of performance shares).

The Company presents earnings per share for the Company's two classes of common stock on a combined basis. This presentation is consistent with the earnings per share computations that result for each class of common stock utilizing the two-
class method, which is an earnings allocation formula that determines earnings per share for each class of common stock according to the dividends declared (or accumulated) and participation rights in the undistributed earnings. In applying the two-class method, the Company has determined that the undistributed earnings should be allocated to each class on a pro rata basis after consideration of all of the participation rights of the Class B shares (including voting and conversion rights) and the Company's history of paying dividends equally to each class of common stock on a per share basis.

The Company’s certificate of incorporation allows the board of directors to declare a cash dividend to Class A shares without declaring equal dividends to the Class B shares. However, the board of directors has historically declared and the Company has historically paid equal per share dividends on both the Class A and Class B shares. Each class has participated equally in all dividends declared since 1987.

Class B shares are the only shares with voting rights and are convertible, at the option of the holder, into Class A shares on a one-for-one basis. Class B shareholders are therefore able to exercise voting control with respect to all matters requiring stockholder approval, including the election of or removal of directors. As a result of Class B shares’ voting and conversion rights, Class B shares can participate equally in any dividends declared on Class A shares by exercising their conversion rights.

Dividends paid per share for Class A and Class B common stock were $0.30 for 2025, 2024 and 2023.

Historical Timeline

Fiscal YearFiled
2025Feb 12, 2026Showing above
2024Feb 13, 2025
2023Feb 20, 2024
2021Feb 18, 2021
2019Feb 13, 2020
2018Feb 14, 2019
2017Feb 20, 2018
2016Feb 18, 2016

About Earnings Per Share Disclosures

The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.

Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.

Other Available Disclosures

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