[Management View]
ManpowerGroup reported Q3 2025 revenue of $4.6 billion, a 2% YoY decrease in constant currency. Gross profit margin was 16.6%, and adjusted EBITDA was $96 million, down 22% YoY. Adjusted EPS was $0.83, a 39% decrease YoY. The Manpower brand grew 3% organically, while Experis and Talent Solutions declined 7% and 8%, respectively.

[Outlook]
For Q4 2025, EPS is projected at $0.78-$0.88, with constant currency revenue guidance ranging from -2% to +2%. The company anticipates a flat EBITDA margin at the midpoint versus the prior year. AI and digital initiatives, particularly the SoFi AI platform, are expected to drive future growth.

[Financial Performance]
- Revenue: $4.6 billion, down 2% YoY in constant currency
- Gross Profit Margin: 16.6%
- Adjusted EBITDA: $96 million, down 22% YoY
- Adjusted EPS: $0.83, down 39% YoY
- Free Cash Flow: $45 million, down from $67 million YoY

[Q&A Highlights]
Question 1: When business competition improves, would you expect an early cycle pickup in flexible staffing volumes? Also, can you comment on the gross margin with softer outplacement and perm at the same time?
Answer: It is a strange time in labor markets in Europe and North America, with very little hiring and few workforce reductions. Despite this, we see stabilization and growth in Manpower. If employer confidence returns, we expect better Manpower growth and other brands benefiting from an improved environment.

Question 2: Can you talk about the trends you saw during the quarter and if there were any changes due to the economy?
Answer: In France, trends improved during Q3, with revenue exiting at -4%. Italy also showed improvement. The US was more stable but had some volatility due to large RPO volumes from select clients. Manpower grew steadily, and Experis was stable.

Question 3: Regarding the gross margin, are you seeing any price pressure or mix issues impacting profit beyond staffing margin or perm still being in a recessionary standpoint?
Answer: Pricing is competitive, but no dramatic changes overall. The mix shift towards enterprise clients impacts the margin. Perm came in softer than expected, adding pressure along with lower outplacement volumes.

Question 4: When talking to customers, is there any more or less uncertainty perceived?
Answer: Clients are increasingly resilient to the policy environment and are preparing for 2026 with improved visibility. Employers are cautious but starting to gain stability in their outlook.

[Sentiment Analysis]
Analysts and management maintained a cautious but optimistic tone, focusing on stabilization and future growth driven by AI initiatives.

[Quarterly Comparison]
| Metric | Q3 2025 | Q3 2024 | YoY Change |
|-------------------------|---------------|---------------|--------------|
| Revenue | $4.6 billion | $4.7 billion | -2% |
| Gross Profit Margin | 16.6% | 17.0% | -0.4% |
| Adjusted EBITDA | $96 million | $123 million | -22% |
| Adjusted EPS | $0.83 | $1.36 | -39% |
| Free Cash Flow | $45 million | $67 million | -33% |

[Risks and Concerns]
- Continued geopolitical tensions and economic softening
- Competitive pricing pressures
- Lower permanent recruitment and outplacement activities

[Final Takeaway]
ManpowerGroup's Q3 2025 results showed a return to revenue growth after eleven quarters of declines, driven by stabilization in key markets and strategic AI initiatives. Despite mixed market dynamics and margin pressures, the company remains focused on cost control, modernization, and digital transformation to drive future growth. Investors should monitor the company's ability to navigate economic uncertainties and leverage AI-driven insights for sustained performance improvements.