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- **Revenue decline**: Q3 2025 revenue down 9.9% YoY, driven by federal gov (-8%) and 3 large customers. 
- **AI strategy**: 50% of employers struggle with AI talent, Kelly positioning as flexible workforce partner. 
- **Restructuring**: 2% workforce reduction, $102M goodwill impairment, $70M tax allowance. 
- **Cash flow**: $94M operating cash flow YoY, $269M liquidity for M&A and buybacks. 
- **2026 focus**: SET tech stack integration, EBITDA margin target 3%+ in H2.

**【CEO Summary Section】**
- Chris Layden emphasized Kelly's market leadership in education (#1), engineering (#4), and technology (top 10), driven by acquisitions and organic growth. 
- Highlighted challenges: sluggish macroeconomy, federal government demand decline (8% of revenue), and restructuring (2% workforce reduction). 
- Strategic focus: AI-driven talent solutions, modernizing tech stack (MRP integration), and expanding high-margin specialties (SET, ETM MSP). 
- Long-term vision: grow share of wallet with enterprise customers, accelerate inorganic growth, and leverage AI for workforce transformation.

**【CFO Financial Commentary】**
- Q3 2025 Revenue: $935M (-9.9% YoY), impacted by federal gov (-8%), 3 large customers, and macro headwinds. 
- Key metrics: 
  - Education: +0.9% YoY (90% fill rate record), SET: telecom (+10%), engineering (+ve), ETM: MSP growth offset by staffing decline. 
  - Gross Profit: $194M (-12.5% YoY), margin 20.8% (-60bps YoY). 
  - OpEx: $194.4M (-11.2% YoY), SG&A -9.7% YoY (cost optimization). 
  - EBITDA: $16.5M (-7% YoY), margin 1.8% (down 120bps YoY). 
- Balance sheet: $269M liquidity, $94M operating cash flow (vs. $63M YoY). 
- Restructuring: $4.7M Q3 charges, $102M goodwill impairment (SET), $70M tax valuation allowance.

**【Q&A Highlights】**
1. **AI Impact**: 
   - Opportunity: 50% of employers struggle with AI talent, Kelly's flexible workforce solutions (e.g., data modernization) are in demand. 
   - Risk: short-term hiring delays as companies assess AI productivity. 
   - Internal: accelerating AI tech integration (MRP stack) to improve efficiency and go-to-market speed. 
2. **Customer Concentration**: 
   - 3 large customers (8% revenue impact) are unrelated, not indicative of concentration risk. 
   - Focus on sticky services (e.g., education, SET solutions) and new logo wins (ETM MSP). 
3. **2026 Outlook**: 
   - Federal gov demand and large customer impacts likely to persist. 
   - SET tech stack integration (MRP) to drive 2026 growth in SET, ETM, and Education. 
   - EBITDA margin target: 3%+ in 2026H2 with tech-enabled efficiency gains.

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