Fortrea Holdings Financials
Fortrea Holdings (FTRE) reported $2.7B in revenue for fiscal year 2025, up 1.0% from the prior fiscal year. This page shows its income statement, balance sheet, cash flow statement, and key financial ratios. View 5 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).
Fortrea’s reported losses reflect a business still producing cash but operating with a much thinner margin cushion and weaker equity support.
Over the last two fiscal years, goodwill and equity contracted together: goodwill fell from$1.74B to$960M while free cash flow stayed positive. That mismatch between a-$989M net loss and$88M of free cash flow implies the income statement was driven more by non-cash balance-sheet resets than by an immediate collapse in customer cash receipts.
Despite only modest top-line movement across the last three years, gross margin compressed from
The balance-sheet posture also changed sharply, with debt to equity ending at 1.9x after a much lower level earlier in the period. Meanwhile, the current ratio slipped from 1.6x to 1.0x, so creditors are supporting a larger share of the business while short-term flexibility has narrowed.
Financial Health Signals
Scored against operating companies for FY2025. Each of the six dimensions is a percentile rank within that peer group; the overall is their average, with missing dimensions counted as zero out of six. A high score means strong standing among peers, not absolute cross-industry strength. How this score is calculated →
Health score ≠ stock price. This rates the quality of Fortrea Holdings's business: profitability, growth, balance sheet strength. It doesn't tell you whether the stock is a good buy at today's price. Not financial advice. Use it alongside valuation analysis and your own research.
Fortrea Holdings has an operating margin of -32.0%, meaning the company loses $32 on every $100 of revenue. This results in a profitability score of 17/100. This is down from -6.0% the prior year.
Fortrea Holdings's revenue grew a modest 1.0% year-over-year to $2.7B. This slow but positive growth earns a score of 24/100.
Fortrea Holdings has a moderate D/E ratio of 1.86. This balance of debt and equity financing earns a leverage score of 32/100.
Fortrea Holdings's current ratio of 0.98 is below the typical benchmark, resulting in a score of 18/100. This tight liquidity could limit financial flexibility if cash inflows slow.
Fortrea Holdings has a free cash flow margin of 3.2%, earning a moderate score of 48/100. The company generates positive cash flow after capital investments, but with room for improvement.
Fortrea Holdings posts a -175.5% return on equity (ROE), meaning it loses $176 for every $100 of shareholders' equity. This results in a returns score of 15/100. This is down from -24.1% the prior year.
Fortrea Holdings scores -0.29, below the 1.81 distress threshold. The score is driven primarily by a large market capitalization ($1.7B) relative to total liabilities ($2.2B). This indicates elevated financial distress risk and warrants close attention to liquidity and debt levels.
Distress-screening estimate for non-financial companies. Not computed for banks or insurers, where the Altman model does not apply.
Fortrea Holdings passes 3 of 9 financial strength tests. 2 of 4 profitability signals pass, no leverage/liquidity signals pass (rising debt, declining liquidity, or share dilution), 1 of 2 efficiency signals pass.
Fortrea Holdings reported a net loss of $989.0M while generating $113.5M in operating cash flow. Operations generated cash despite the loss, but with no positive earnings behind it, the ratio between the two carries no quality signal.
Key Financial Metrics
Earnings & Revenue
Fortrea Holdings generated $2.7B in revenue in fiscal year 2025. This represents an increase of 1.0% from the prior year.
Fortrea Holdings's EBITDA was -$794.6M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization. This represents a decrease of 959.5% from the prior year.
Fortrea Holdings reported -$989.0M in net income in fiscal year 2025. This represents a decrease of 200.6% from the prior year.
Fortrea Holdings earned -$10.81 per diluted share (EPS) in fiscal year 2025. This represents a decrease of 194.6% from the prior year.
Cash & Balance Sheet
Fortrea Holdings generated $88.3M in free cash flow in fiscal year 2025, representing cash available after capex. This represents a decrease of 62.8% from the prior year.
Fortrea Holdings held $174.6M in cash against $1.0B in long-term debt as of fiscal year 2025.
Not reported for fiscal year 2025.
Margins & Returns
Fortrea Holdings's gross margin was 18.5% in fiscal year 2025, indicating the percentage of revenue retained after direct costs. This is down 1.3 percentage points from the prior year.
Fortrea Holdings's operating margin was -32.0% in fiscal year 2025, reflecting core business profitability. This is down 26.0 percentage points from the prior year.
Fortrea Holdings's net profit margin was -36.3% in fiscal year 2025, showing the share of revenue converted to profit. This is down 24.1 percentage points from the prior year.
Fortrea Holdings's ROE was -175.5% in fiscal year 2025, measuring profit generated per dollar of shareholder equity. This is down 151.4 percentage points from the prior year.
Capital Allocation
Fortrea Holdings invested $25.2M in capex in fiscal year 2025, funding long-term assets and infrastructure. This represents a decrease of 1.2% from the prior year.
Not reported for fiscal year 2025.
Not reported for fiscal year 2025.
FTRE Income Statement
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type.
| Metric | TTM | FY25 | FY24 | FY23 | FY22 | FY21 |
|---|---|---|---|---|---|---|
| Revenue | $2.7B | $2.7B+1.0% | $2.7B-5.1% | $2.8B+0.2% | $2.8B-7.2% | $3.1B |
| Cost of Revenue | $2.2B | $2.2B+2.7% | $2.2B-4.0% | $2.3B+6.6% | $2.1B-13.9% | $2.5B |
| Gross Profit | $516.6M | $503.8M-5.7% | $534.2M-9.5% | $590.6M-18.5% | $724.4M+19.9% | $604.4M |
| SG&A Expenses | $412.4M | $456.4M-18.6% | $560.7M+25.1% | $448.1M+7.7% | $416.1M+37.3% | $303.1M |
| Operating Income | -$10.8M | -$872.6M-439.0% | -$161.9M-605.9% | $32.0M-82.9% | $187.1M+63.7% | $114.3M |
| Interest Expense | N/A | N/A | N/A | $69.8M+34800.0% | $200K0.0% | $200K |
| Income Tax | $7.4M | $3.2M+191.4% | -$3.5M-391.7% | $1.2M-97.1% | $41.1M+7.0% | $38.4M |
| Net Income | -$88.0M | -$989.0M-200.6% | -$329.0M-1216.0% | -$25.0M-113.4% | $186.2M+90.0% | $98.0M |
| EPS (Diluted) | — | -$10.81-194.6% | -$3.67-1165.5% | -$0.29-113.9% | $2.09+90.0% | $1.10 |
Not reported in any period shown, so not listed: R&D Expenses.
TTM is the trailing twelve months, Q3 FY2025 through Q2 FY2026, summed from the four most recent quarterly filings. A row marked — cannot be summed at all, because a quarter in the window reports no per-share figure; a row marked N/A could be summed, but a quarter in the window does not report that metric.
FTRE Balance Sheet
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type.
| Metric | FY25 | FY24 | FY23 | FY22 | FY21 |
|---|---|---|---|---|---|
| Total Assets | $2.7B-24.1% | $3.6B-17.4% | $4.3B+1.0% | $4.3B | N/A |
| Current Assets | $897.2M-5.4% | $948.2M-24.2% | $1.3B+0.3% | $1.2B | N/A |
| Cash & Equivalents | $174.6M+47.3% | $118.5M+9.1% | $108.6M-3.0% | $112.0M+18.4% | $94.6M |
| Goodwill | $960.0M-43.9% | $1.7B-1.7% | $1.7B+1.9% | $1.7B-17.9% | $2.1B |
| Total Liabilities | $2.2B-2.9% | $2.2B-15.3% | $2.6B+177.0% | $945.3M | N/A |
| Current Liabilities | $913.3M-3.8% | $949.5M+22.0% | $778.4M+11.4% | $699.0M | N/A |
| Long-Term Debt | $1.0B-0.2% | $1.0B-33.0% | $1.6B | $0 | N/A |
| Total Equity | $563.5M-58.6% | $1.4B-20.5% | $1.7B-48.7% | $3.3B+2.4% | $3.3B |
| Retained Earnings | -$1.4B-248.4% | -$397.0M-479.6% | -$68.5M | $0 | N/A |
Not reported in any period shown, so not listed: Inventory, Accounts Receivable.
FTRE Cash Flow Statement
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type.
| Metric | TTM | FY25 | FY24 | FY23 | FY22 | FY21 |
|---|---|---|---|---|---|---|
| Operating Cash Flow | $227.8M | $113.5M-56.8% | $262.8M+56.1% | $168.4M+103.6% | $82.7M-51.3% | $169.8M |
| Capital Expenditures | $31.8M | $25.2M-1.2% | $25.5M-36.7% | $40.3M-25.9% | $54.4M+105.3% | $26.5M |
| Free Cash Flow | $196.0M | $88.3M-62.8% | $237.3M+85.2% | $128.1M+352.7% | $28.3M-80.3% | $143.3M |
| Investing Cash Flow | -$9.2M | $14.4M-94.3% | $251.6M+891.2% | -$31.8M+41.1% | -$54.0M-106.1% | -$26.2M |
| Financing Cash Flow | -$125.7M | -$76.3M+84.7% | -$497.8M-253.6% | -$140.8M-2134.9% | -$6.3M+95.1% | -$128.5M |
Not reported in any period shown, so not listed: Dividends Paid, Share Buybacks.
TTM is the trailing twelve months, Q3 FY2025 through Q2 FY2026, summed from the four most recent quarterly filings. A row marked — cannot be summed at all, because a quarter in the window reports no per-share figure; a row marked N/A could be summed, but a quarter in the window does not report that metric.
FTRE Financial Ratios
Margins and returns are percentages; the remaining ratios are unitless multiples.
| Metric | FY25 | FY24 | FY23 | FY22 | FY21 |
|---|---|---|---|---|---|
| Gross Margin | 18.5%-1.3pp | 19.8%-1.0pp | 20.8%-4.8pp | 25.5%+5.8pp | 19.8% |
| Operating Margin | -32.0%-26.0pp | -6.0%-7.1pp | 1.1%-5.5pp | 6.6%+2.8pp | 3.7% |
| Net Margin | -36.3%-24.1pp | -12.2%-11.3pp | -0.9%-7.4pp | 6.6%+3.4pp | 3.2% |
| Return on Equity | -175.5%-151.4pp | -24.1%-22.7pp | -1.5%-7.0pp | 5.6%+2.6pp | 3.0% |
| Return on Assets | -36.4%-27.2pp | -9.2%-8.6pp | -0.6%-4.9pp | 4.3% | N/A |
| Current Ratio | 0.980.0x | 1.00-0.6x | 1.61-0.2x | 1.78 | N/A |
| Debt-to-Equity | 1.86+1.1x | 0.77-0.1x | 0.91+0.9x | 0.00 | N/A |
| FCF Margin | 3.2%-5.6pp | 8.8%+4.3pp | 4.5%+3.5pp | 1.0%-3.7pp | 4.7% |
Note: The current ratio is below 1.0 (0.98), indicating current liabilities exceed current assets, which may suggest potential short-term liquidity concerns.
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Where Fortrea Holdings Ranks
Frequently Asked Questions
What is Fortrea Holdings's annual revenue?
Fortrea Holdings (FTRE) reported $2.7B in total revenue for fiscal year 2025. This represents a 1.0% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.
How fast is Fortrea Holdings's revenue growing?
Fortrea Holdings (FTRE) revenue grew by 1.0% year-over-year, from $2.7B to $2.7B in fiscal year 2025.
Is Fortrea Holdings profitable?
No, Fortrea Holdings (FTRE) reported a net income of -$989.0M in fiscal year 2025, with a net profit margin of -36.3%.
What is Fortrea Holdings's EBITDA?
Fortrea Holdings (FTRE) had EBITDA of -$794.6M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization.
How much debt does Fortrea Holdings have?
As of fiscal year 2025, Fortrea Holdings (FTRE) had $174.6M in cash and equivalents against $1.0B in long-term debt.
What is Fortrea Holdings's gross margin?
Fortrea Holdings (FTRE) had a gross margin of 18.5% in fiscal year 2025, indicating the percentage of revenue retained after direct costs of goods sold.
What is Fortrea Holdings's operating margin?
Fortrea Holdings (FTRE) had an operating margin of -32.0% in fiscal year 2025, reflecting the profitability of core business operations before interest and taxes.
What is Fortrea Holdings's net profit margin?
Fortrea Holdings (FTRE) had a net profit margin of -36.3% in fiscal year 2025, representing the share of revenue converted into profit after all expenses.
What is Fortrea Holdings's return on equity (ROE)?
Fortrea Holdings (FTRE) has a return on equity of -175.5% for fiscal year 2025, measuring how efficiently the company generates profit from shareholder equity.
What is Fortrea Holdings's free cash flow?
Fortrea Holdings (FTRE) generated $88.3M in free cash flow during fiscal year 2025. This represents a -62.8% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.
What is Fortrea Holdings's operating cash flow?
Fortrea Holdings (FTRE) generated $113.5M in operating cash flow during fiscal year 2025, representing cash generated from core business activities.
What are Fortrea Holdings's total assets?
Fortrea Holdings (FTRE) had $2.7B in total assets as of fiscal year 2025, including both current and long-term assets.
What are Fortrea Holdings's capital expenditures?
Fortrea Holdings (FTRE) invested $25.2M in capital expenditures during fiscal year 2025, funding long-term assets and infrastructure.
What is Fortrea Holdings's current ratio?
Fortrea Holdings (FTRE) had a current ratio of 0.98 as of fiscal year 2025, which is below 1.0, which may suggest potential liquidity concerns.
What is Fortrea Holdings's debt-to-equity ratio?
Fortrea Holdings (FTRE) had a debt-to-equity ratio of 1.86 as of fiscal year 2025, measuring the company's financial leverage by comparing total debt to shareholder equity.
What is Fortrea Holdings's return on assets (ROA)?
Fortrea Holdings (FTRE) had a return on assets of -36.4% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.
What is Fortrea Holdings's Altman Z-Score?
Fortrea Holdings (FTRE) has an Altman Z-Score of -0.29, placing it in the Distress Zone (elevated bankruptcy risk). The Z-Score combines five financial ratios (working capital, retained earnings, EBIT, market capitalization, and revenue relative to total assets) to predict the likelihood of bankruptcy. Scores above 2.99 indicate financial safety while scores below 1.81 suggest financial distress. Learn more in our complete guide to financial health indicators.
What is Fortrea Holdings's Piotroski F-Score?
Fortrea Holdings (FTRE) has a Piotroski F-Score of 3 out of 9, indicating weak financial health. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7 to 9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.
Are Fortrea Holdings's earnings high quality?
Fortrea Holdings (FTRE) reported a net loss of $989.0M while generating $113.5M in operating cash flow. Operations generated cash despite the loss, but with no positive earnings behind it, the ratio between the two carries no quality signal. This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.
How financially healthy is Fortrea Holdings?
Fortrea Holdings (FTRE) scores 26 out of 100 on our Financial Health Score, indicating weak standing within its operating companies peer group. The score is a 0-100 composite of six dimensions (Profitability, Growth, Leverage, Liquidity, Cash Flow, Returns), each ranked as a percentile relative to companies in the same scoring family (banks against banks, REITs against REITs, and so on) rather than across all industries. It rates the quality of the business, not whether the stock is fairly priced, and is not financial advice. Learn more in our complete guide to financial health indicators.