Fortrea Reports Second Quarter 2025 Results
Fortrea (Nasdaq: FTRE), a leading contract research organization (CRO), reported its Q2 2025 financial results with revenues of $710.3 million, up from $662.4 million in Q2 2024. The company posted a GAAP net loss of $(374.9) million, largely due to a $309.1 million non-cash goodwill impairment charge.
Key highlights include adjusted EBITDA of $54.9 million and adjusted earnings per share of $0.19. The company reported a book-to-bill ratio of 0.79x for Q2, with a trailing 12-month ratio of 1.10x. Fortrea raised its 2025 revenue guidance to $2,600-$2,700 million while affirming adjusted EBITDA guidance of $170-$200 million.
The company welcomed Anshul Thakral as CEO on August 4, 2025, succeeding Interim CEO Peter M. Neupert, who remains chairman of the Board.
Fortrea (Nasdaq: FTRE), una delle principali organizzazioni di ricerca a contratto (CRO), ha comunicato i risultati finanziari del secondo trimestre 2025 con ricavi pari a 710,3 milioni di dollari, in aumento rispetto ai 662,4 milioni di dollari del secondo trimestre 2024. La società ha registrato una perdita netta GAAP di (374,9) milioni di dollari, principalmente a causa di una rettifica non monetaria per riduzione di valore dell'avviamento di 309,1 milioni di dollari.
Tra i principali dati, si evidenziano un EBITDA rettificato di 54,9 milioni di dollari e un utile rettificato per azione di 0,19 dollari. La società ha riportato un rapporto book-to-bill di 0,79x per il secondo trimestre, con un rapporto a 12 mesi trascorsi di 1,10x. Fortrea ha aumentato le previsioni di ricavo per il 2025 a 2.600-2.700 milioni di dollari, confermando la guidance sull'EBITDA rettificato tra 170 e 200 milioni di dollari.
La società ha accolto Anshul Thakral come CEO il 4 agosto 2025, succedendo all'amministratore delegato ad interim Peter M. Neupert, che rimane presidente del Consiglio di amministrazione.
Fortrea (Nasdaq: FTRE), una destacada organización de investigación por contrato (CRO), reportó sus resultados financieros del segundo trimestre de 2025 con ingresos de 710,3 millones de dólares, frente a 662,4 millones en el segundo trimestre de 2024. La compañía registró una pérdida neta GAAP de (374,9) millones de dólares, principalmente debido a un cargo no monetario por deterioro del fondo de comercio de 309,1 millones de dólares.
Los aspectos clave incluyen un EBITDA ajustado de 54,9 millones de dólares y ganancias ajustadas por acción de 0,19 dólares. La empresa reportó una relación book-to-bill de 0,79x para el segundo trimestre, con una relación de 12 meses acumulados de 1,10x. Fortrea elevó su previsión de ingresos para 2025 a 2.600-2.700 millones de dólares y confirmó la guía de EBITDA ajustado entre 170 y 200 millones de dólares.
La compañía dio la bienvenida a Anshul Thakral como CEO el 4 de agosto de 2025, sucediendo al CEO interino Peter M. Neupert, quien permanece como presidente del Consejo.
Fortrea (나스닥: FTRE)는 선도적인 계약 연구 기관(CRO)으로서 2025년 2분기 재무 실적을 발표했으며, 매출은 7억 1,030만 달러로 2024년 2분기의 6억 6,240만 달러에서 증가했습니다. 회사는 3억 7,490만 달러의 GAAP 순손실을 기록했는데, 이는 주로 3억 909만 달러의 비현금성 영업권 손상차손 때문입니다.
주요 내용으로는 조정 EBITDA가 5,490만 달러이고 조정 주당순이익이 0.19달러입니다. 회사는 2분기 북-투-빌 비율을 0.79배로 보고했으며, 최근 12개월 비율은 1.10배입니다. Fortrea는 2025년 매출 전망을 26억~27억 달러로 상향 조정했으며, 조정 EBITDA 가이던스는 1억 7,000만~2억 달러로 유지했습니다.
회사는 2025년 8월 4일에 Anshul Thakral을 CEO로 영입했으며, 임시 CEO였던 Peter M. Neupert는 이사회 의장직을 계속 맡고 있습니다.
Fortrea (Nasdaq : FTRE), une organisation de recherche sous contrat (CRO) de premier plan, a publié ses résultats financiers du deuxième trimestre 2025 avec un chiffre d'affaires de 710,3 millions de dollars, en hausse par rapport à 662,4 millions de dollars au deuxième trimestre 2024. La société a enregistré une perte nette GAAP de (374,9) millions de dollars, principalement en raison d'une charge de dépréciation non monétaire de l'écart d'acquisition de 309,1 millions de dollars.
Les points clés incluent un EBITDA ajusté de 54,9 millions de dollars et un bénéfice ajusté par action de 0,19 dollar. La société a déclaré un ratio book-to-bill de 0,79x pour le deuxième trimestre, avec un ratio sur 12 mois glissants de 1,10x. Fortrea a relevé ses prévisions de chiffre d'affaires pour 2025 à 2 600-2 700 millions de dollars tout en confirmant ses prévisions d'EBITDA ajusté entre 170 et 200 millions de dollars.
La société a accueilli Anshul Thakral en tant que PDG le 4 août 2025, succédant au PDG par intérim Peter M. Neupert, qui reste président du conseil d'administration.
Fortrea (Nasdaq: FTRE), ein führendes Auftragsforschungsunternehmen (CRO), meldete seine Finanzergebnisse für das zweite Quartal 2025 mit einem Umsatz von 710,3 Millionen US-Dollar, gegenüber 662,4 Millionen US-Dollar im zweiten Quartal 2024. Das Unternehmen verzeichnete einen GAAP-Nettogewinnverlust von (374,9) Millionen US-Dollar, hauptsächlich aufgrund einer nicht zahlungswirksamen Wertminderung des Firmenwerts in Höhe von 309,1 Millionen US-Dollar.
Wichtige Kennzahlen umfassen ein bereinigtes EBITDA von 54,9 Millionen US-Dollar und bereinigte Gewinne je Aktie von 0,19 US-Dollar. Das Unternehmen meldete ein Book-to-Bill-Verhältnis von 0,79x für das zweite Quartal, mit einem gleitenden 12-Monats-Verhältnis von 1,10x. Fortrea hob seine Umsatzprognose für 2025 auf 2,600-2,700 Millionen US-Dollar an und bestätigte die EBITDA-Guidance von 170-200 Millionen US-Dollar.
Das Unternehmen begrüßte Anshul Thakral als CEO am 4. August 2025, als Nachfolger des Interim-CEOs Peter M. Neupert, der weiterhin Vorstandsvorsitzender bleibt.
- Revenue increased to $710.3 million from $662.4 million in Q2 2024
- Raised 2025 revenue guidance to $2,600-$2,700 million
- Positive adjusted net income of $17.6 million vs loss in Q2 2024
- Strong backlog of $7,547 million
- Positive cash flow reported
- GAAP net loss of $(374.9) million, including $309.1 million goodwill impairment
- Book-to-bill ratio declined to 0.79x in Q2
- Significant goodwill impairments due to share price declines
- Market-driven increase in discount rate affecting Q2 performance
Insights
Fortrea reports mixed Q2 2025 results with revenue growth and positive adjusted metrics amid significant goodwill impairment charges.
Fortrea's Q2 2025 financial performance presents a mixed picture with notable contrasts between GAAP and adjusted figures. Revenue increased
Looking beyond this accounting charge reveals more positive fundamentals. Adjusted EBITDA remained essentially flat at
Several forward-looking indicators merit attention. The quarterly book-to-bill ratio of 0.79x signals potential near-term revenue challenges, though the trailing 12-month ratio of 1.10x suggests longer-term stability. Backlog stands at
The leadership transition to new CEO Anshul Thakral represents a key inflection point as the company fully emerges from its spin-off phase. The goodwill impairments, primarily triggered by share price declines and increased discount rates, reflect market perception challenges rather than operational deficiencies. Cash flow positivity and progress on cost-saving initiatives provide foundation for potential margin improvement as the company refocuses on growth strategies under new leadership.
For the three months ended June 30, 2025, from continuing operations:
- Revenues of
$710.3 million - GAAP net loss of
$(374.9) million , inclusive of a non-cash goodwill impairment charge - Adjusted EBITDA of
$54.9 million - GAAP and adjusted net (loss) income per diluted share of
$(4.14) and$0.19 , respectively - Book-to-bill ratio of 0.79x, resulting in 1.10x book-to-bill for the trailing 12 months
- Cost saving initiatives remain on track
- Raising 2025 revenue guidance to a range of
$2,600 million to$2,700 million ; affirming 2025 adjusted EBITDA guidance
DURHAM, N.C., Aug. 06, 2025 (GLOBE NEWSWIRE) -- Fortrea (Nasdaq: FTRE) (the “Company”), a leading global contract research organization (CRO), today reported financial results for the second quarter ended June 30, 2025.
“As Fortrea marked two years of independence at the end of June, the last remaining demands of the spin-related transition are firmly in the rear-view mirror,” said Fortrea Chief Financial Officer, Jill McConnell. “Fortrea is now positioned to fully focus on our future, with an unwavering dedication to creating value for our customers, employees and shareholders. Our second quarter performance demonstrated that our business fundamentals are sound, our cash flow is positive, and we delivered on our operational commitments. As we look ahead, we’re excited to welcome Anshul Thakral as our CEO and we’re looking forward to his leadership and the passion for patients that he will bring to Fortrea.”
As announced on June 11, 2025, Anshul Thakral joined Fortrea as CEO on August 4, 2025, succeeding Interim CEO Peter M. Neupert, who remains chairman of Fortrea’s Board of Directors (the “Board”). Thakral also serves as a director of the Board.
“My first impressions at Fortrea have underscored my confidence that we are well positioned to help customers navigate a complicated development landscape,” said Thakral. “Our team at Fortrea is engaged and experienced. Our customers have expressed to me how highly they value our people, our value proposition and our commitment to operational excellence. I’m looking forward to working with our team as we partner with our customers and strengthen a platform for growth that drives shareholder value and ultimately benefits the patients we serve.”
All commentary in this press release relates to continuing operations unless otherwise noted.
Second Quarter 2025 Financial Results
Revenue for the second quarter was
Second quarter GAAP net loss was
Backlog as of June 30, 2025 was
First Half 2025 Financial Results
Revenue for the first half was
First half GAAP net loss was
The goodwill impairments primarily resulted from declines in the Company’s share price. The second quarter was also impacted by a market-driven increase to the discount rate.
Full-Year 2025 Guidance
The Company is increasing its revenue guidance for the full year 2025, to a range of
Earnings Call and Replay
Fortrea will host a conference call at 8:00 am ET on August 6, 2025 to review its second quarter financial results and conduct a question and answer session. To participate in the earnings call, participants should register online at the Fortrea Investor Relations website. To avoid potential delays, please join at least 10 minutes prior to the start of the call. The conference call can also be accessed through the following earnings webcast link. A replay of the live conference call will be available shortly after the conclusion of the event and accessible on the events and presentations section of the Fortrea website. A supplemental slide presentation will also be available on the Investor Relations website prior to the start of the call.
About Fortrea
Fortrea (Nasdaq: FTRE) is a leading global provider of clinical development solutions to the life sciences industry. We partner with emerging and large biopharmaceutical, biotechnology, medical device and diagnostic companies to drive healthcare innovation that accelerates life changing therapies to patients. Fortrea provides phase I-IV clinical trial management, clinical pharmacology and consulting services. Fortrea’s solutions leverage three decades of experience spanning more than 20 therapeutic areas, a passion for scientific rigor, exceptional insights and a strong investigator site network. Our talented and diverse team working in about 100 countries is scaled to deliver focused and agile solutions to customers globally. Learn more about how Fortrea is becoming a transformative force from pipeline to patient at Fortrea.com and follow us on LinkedIn and X (formerly Twitter).
Cautionary Statement Regarding Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of the federal securities laws, including Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including, without limitation, the Company’s 2025 financial guidance. In this context, forward-looking statements often address expected future business and financial performance and financial condition, and often contain words such as “guidance,” “expect,” “assume,” “anticipate,” “intend,” “plan,” “forecast,” “believe,” “seek,” “see,” “will,” “would,” “target,” similar expressions, and variations or negatives of these words that are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Actual results may differ materially from the Company’s expectations due to a number of factors, including, but not limited to, the following: the Company’s ability to successfully implement the Company’s business strategies and execute the Company’s long-term value creation strategy; risks and expenses associated with the Company’s international operations, tariff policies, trade sanctions and other trade restrictions and currency fluctuations; the Company’s customer or therapeutic area concentrations; any further deterioration in the macroeconomic environment or further changes in government regulations and funding, which could lead to defaults or cancellations by the Company’s customers; the risk that the Company’s backlog and net new business may not be indicative of the Company’s future revenues and that the Company might not realize all of the anticipated future revenue reflected in the Company’s backlog; the Company’s ability to generate sufficient net new business awards, or if net new business awards are delayed, terminated, reduced in scope, or fail to go to contract; if the Company underprices its contracts, overruns its cost estimates, or fails to receive approval for, or experiences delays in documentation of change orders; and other factors described from time to time in documents that the Company files with the SEC. For a further discussion of the risks relating to the Company’s business, see the “Risk Factors” Section of the Company’s Annual Report on Form 10-K for the year ended December 31, 2024, as filed with the Securities and Exchange Commission (the "SEC"), as such factors may be amended or updated from time to time in the Company’s subsequent periodic and other filings with the SEC, which are accessible on the SEC’s website at www.sec.gov. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this release and in the Company’s filings with the SEC. Comparisons of results for current and any prior periods are not intended to express any future trends, or indications of future performance, unless expressed as such, and should only be viewed as historical data. All forward-looking statements are made only as of the date of this release and the Company does not undertake any obligation, other than as may be required by law, to update or revise any forward-looking statements to reflect future events or developments.
Note on Non-GAAP Financial Measures
This release includes information based on financial measures that are not recognized under generally accepted accounting principles in the United States ("GAAP"), such as Adjusted EBITDA, Adjusted Net Income, Adjusted Basic and Diluted EPS, and Free Cash Flow. Non-GAAP financial measures are presented only as a supplement to the Company’s financial statements based on GAAP. Non-GAAP financial information is provided to enhance understanding of the Company’s financial performance, but none of these non-GAAP financial measures are recognized terms under GAAP, and non-GAAP measures should not be considered in isolation from, or as a substitute analysis for, the Company’s results of operations as determined in accordance with GAAP.
The Company uses non-GAAP measures in its operational and financial decision making and believes that it is useful to exclude certain items in order to focus on what it regards to be a more meaningful indicator of the underlying operating performance of the business. For example, in calculating Adjusted EBITDA, the Company excludes all the amortization of intangible assets associated with acquired customer relationships and backlog, databases, non-compete agreements and trademarks, trade names and other from non-GAAP expense and income measures as such amounts can be significantly impacted by the timing and size of acquisitions. Although the Company excludes amortization of acquired intangible assets from the Company’s non-GAAP expenses, the Company believes that it is important for investors to understand that revenue generated from such intangibles is included within revenue in determining net income attributable to the Company. As a result, internal management reports feature non-GAAP measures which are also used to prepare strategic plans and annual budgets and review management compensation. The Company also believes that investors may find non-GAAP financial measures useful for the same reasons, although investors are cautioned that non-GAAP financial measures are not a substitute for GAAP disclosures.
The non-GAAP financial measures are not presented in accordance with GAAP. Please refer to the schedules attached to this release for relevant definitions and reconciliations of non-GAAP financial measures contained herein to the most directly comparable GAAP measures. The Company’s full-year 2025 guidance measures (other than revenue) are provided on a non-GAAP basis without a reconciliation to the most directly comparable GAAP measure because the Company is unable to predict with a reasonable degree of certainty certain items contained in the GAAP measures without unreasonable efforts. Such items include, but are not limited to, acquisition-related expenses, goodwill impairment, restructuring and related expenses, stock-based compensation and other items not reflective of the Company's ongoing operations.
Non-GAAP measures are frequently used by securities analysts, investors and other interested parties in their evaluation of companies comparable to the Company, many of which present non-GAAP measures when reporting their results. Non-GAAP measures have limitations as an analytical tool. They are not presentations made in accordance with GAAP, are not measures of financial condition or liquidity and should not be considered as an alternative to profit or loss for the period determined in accordance with GAAP or operating cash flows determined in accordance with GAAP. Non-GAAP measures are not necessarily comparable to similarly titled measures used by other companies. As a result, you should not consider such performance measures in isolation from, or as a substitute analysis for, the Company’s results of operations as determined in accordance with GAAP.
Fortrea Contacts
Hima Inguva (Investors) – 877-495-0816, hima.inguva@fortrea.com
Tracy Krumme (Investors) – 984-385-6707, tracy.krumme@fortrea.com
Sue Zaranek (Media) – 919-943-5422, media@fortrea.com
Kate Dillon (Media) – 646-818-9115, kdillon@prosek.com
| FORTREA HOLDINGS INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in millions, except per share data) (unaudited) | |||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||
| Revenues | $ | 710.3 | $ | 662.4 | $ | 1,361.6 | $ | 1,324.5 | |||||||
| Costs and expenses: | |||||||||||||||
| Direct costs, exclusive of depreciation and amortization | 576.8 | 525.3 | 1,111.6 | 1,079.5 | |||||||||||
| Selling, general and administrative expenses, exclusive of depreciation and amortization | 124.8 | 156.2 | 246.6 | 276.3 | |||||||||||
| Depreciation and amortization | 19.6 | 21.4 | 39.1 | 43.3 | |||||||||||
| Goodwill and other asset impairments | 309.1 | — | 797.9 | — | |||||||||||
| Restructuring and other charges | 10.3 | 10.4 | 16.8 | 13.7 | |||||||||||
| Total costs and expenses | 1,040.6 | 713.3 | 2,212.0 | 1,412.8 | |||||||||||
| Operating loss | (330.3 | ) | (50.9 | ) | (850.4 | ) | (88.3 | ) | |||||||
| Other income (expense): | |||||||||||||||
| Interest expense | (23.3 | ) | (45.2 | ) | (45.6 | ) | (79.5 | ) | |||||||
| Foreign exchange loss | (19.9 | ) | (1.5 | ) | (25.5 | ) | (6.8 | ) | |||||||
| Other, net | 2.8 | 9.0 | 2.8 | 10.3 | |||||||||||
| Loss from continuing operations before income taxes | (370.7 | ) | (88.6 | ) | (918.7 | ) | (164.3 | ) | |||||||
| Income tax expense | 4.2 | 10.7 | 19.1 | 14.8 | |||||||||||
| Loss from continuing operations | (374.9 | ) | (99.3 | ) | (937.8 | ) | (179.1 | ) | |||||||
| Loss from discontinued operations, net of tax | — | (39.1 | ) | — | (60.3 | ) | |||||||||
| Net loss | $ | (374.9 | ) | $ | (138.4 | ) | $ | (937.8 | ) | $ | (239.4 | ) | |||
| Earnings (loss) per common share | |||||||||||||||
| Basic and diluted earnings (loss) per share from continuing operations | $ | (4.14 | ) | $ | (1.11 | ) | $ | (10.37 | ) | $ | (2.01 | ) | |||
| Basic and diluted earnings (loss) per share from discontinued operations | — | (0.44 | ) | — | (0.68 | ) | |||||||||
| Basic and diluted earnings (loss) per share | $ | (4.14 | ) | $ | (1.55 | ) | $ | (10.37 | ) | $ | (2.69 | ) | |||
| FORTREA HOLDINGS INC. CONDENSED CONSOLIDATED BALANCE SHEETS (dollars and shares in millions) (unaudited) | |||||||
| June 30, 2025 | December 31, 2024 | ||||||
| ASSETS | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 81.2 | $ | 118.5 | |||
| Accounts receivable and unbilled services, net | 739.2 | 659.5 | |||||
| Prepaid expenses and other | 139.6 | 170.2 | |||||
| Total current assets | 960.0 | 948.2 | |||||
| Property, plant and equipment, net | 148.7 | 156.3 | |||||
| Goodwill, net | 965.2 | 1,710.4 | |||||
| Intangible assets, net | 654.3 | 655.7 | |||||
| Deferred income taxes | 5.6 | 5.2 | |||||
| Other assets, net | 101.3 | 103.4 | |||||
| Total assets | $ | 2,835.1 | $ | 3,579.2 | |||
| LIABILITIES AND EQUITY | |||||||
| Current liabilities: | |||||||
| Accounts payable | $ | 92.6 | $ | 138.2 | |||
| Accrued expenses and other current liabilities | 380.8 | 369.8 | |||||
| Unearned revenue | 381.7 | 353.3 | |||||
| Current portion of long-term debt | 74.8 | 74.8 | |||||
| Short-term operating lease liabilities | 12.4 | 13.4 | |||||
| Total current liabilities | 942.3 | 949.5 | |||||
| Long-term debt, less current portion | 1,100.9 | 1,049.7 | |||||
| Operating lease liabilities | 52.9 | 60.6 | |||||
| Deferred income taxes and other tax liabilities | 112.8 | 121.7 | |||||
| Other liabilities | 37.0 | 35.3 | |||||
| Total liabilities | 2,245.9 | 2,216.8 | |||||
| Commitments and contingent liabilities | |||||||
| Equity: | |||||||
| Common stock, 90.8 and 89.7 shares outstanding at June 30, 2025 and December 31, 2024, respectively | 0.1 | 0.1 | |||||
| Additional paid-in capital | 2,079.5 | 2,042.2 | |||||
| Accumulated deficit | (1,334.8 | ) | (397.0 | ) | |||
| Accumulated other comprehensive loss | (155.6 | ) | (282.9 | ) | |||
| Total equity | 589.2 | 1,362.4 | |||||
| Total liabilities and equity | $ | 2,835.1 | $ | 3,579.2 | |||
| FORTREA HOLDINGS INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) (unaudited) | |||||||
| Six Months Ended June 30, | |||||||
| 2025 | 2024 | ||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||
| Net loss | $ | (937.8 | ) | $ | (239.4 | ) | |
| Adjustments to reconcile net loss to net cash (used for) provided by operating activities: | |||||||
| Depreciation and amortization | 39.1 | 44.9 | |||||
| Stock compensation | 37.3 | 30.1 | |||||
| Credit loss expense | 9.0 | 12.5 | |||||
| Operating lease right-of-use asset expense | 6.0 | 11.9 | |||||
| Operating lease right-of-use asset impairment | 1.2 | — | |||||
| Goodwill and other asset impairments | 797.9 | 24.0 | |||||
| Deferred income taxes | (16.8 | ) | (11.6 | ) | |||
| Unrealized foreign exchange movements | 37.7 | (11.3 | ) | ||||
| Loss on sale of business | — | 23.2 | |||||
| Write-off of debt issuance costs | — | 12.2 | |||||
| Other, net | 2.3 | (7.8 | ) | ||||
| Changes in assets and liabilities: | |||||||
| (Increase) decrease in accounts receivable and unbilled services, net | (77.5 | ) | 346.9 | ||||
| Decrease (increase) in prepaid expenses and other | 24.5 | (11.7 | ) | ||||
| (Decrease) increase in accounts payable | (46.8 | ) | 13.0 | ||||
| Increase in deferred revenue | 23.2 | 34.2 | |||||
| Decrease in accrued expenses and other | (1.7 | ) | (23.0 | ) | |||
| Net cash (used for) provided by operating activities | (102.4 | ) | 248.1 | ||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||
| Capital expenditures | (10.4 | ) | (20.5 | ) | |||
| Proceeds from sale of business, net | 19.0 | 276.6 | |||||
| Proceeds from sale of assets | — | 0.1 | |||||
| Net cash provided by investing activities | 8.6 | 256.2 | |||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||
| Proceeds from revolving credit facilities | 316.4 | 474.5 | |||||
| Payments on revolving credit facilities | (266.4 | ) | (474.5 | ) | |||
| Debt issuance costs | (0.6 | ) | — | ||||
| Principal payments of long-term debt | — | (482.7 | ) | ||||
| Net cash provided by (used for) financing activities | 49.4 | (482.7 | ) | ||||
| Effect of exchange rate changes on cash and cash equivalents | 7.1 | (4.0 | ) | ||||
| Net change in cash and cash equivalents | (37.3 | ) | 17.6 | ||||
| Cash and cash equivalents at beginning of period | 118.5 | 108.6 | |||||
| Cash and cash equivalents at end of period | $ | 81.2 | $ | 126.2 | |||
The cash flows related to discontinued operations have not been segregated and are included in the condensed consolidated statements of cash flows.
| RECONCILIATION OF NON-GAAP MEASURES FORTREA HOLDINGS INC. NET INCOME TO ADJUSTED EBITDA RECONCILIATION (in millions) (unaudited) | |||||||||||||||||||
| Trailing Twelve Months Ended June 30, | Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||
| 2025 | 2025 | 2024 | 2025 | 2024 | |||||||||||||||
| Adjusted EBITDA from continuing operations: | |||||||||||||||||||
| Net loss from continuing operations | $ | (1,030.2 | ) | $ | (374.9 | ) | $ | (99.3 | ) | $ | (937.8 | ) | $ | (179.1 | ) | ||||
| Income tax expense | 0.8 | 4.2 | 10.7 | 19.1 | 14.8 | ||||||||||||||
| Interest expense, net | 89.9 | 23.3 | 45.2 | 45.6 | 79.5 | ||||||||||||||
| Foreign exchange loss | 29.3 | 19.9 | 1.5 | 25.5 | 6.8 | ||||||||||||||
| Depreciation and amortization (a) | 81.1 | 19.6 | 21.4 | 39.1 | 43.3 | ||||||||||||||
| Goodwill and other asset impairments | 797.9 | 309.1 | — | 797.9 | — | ||||||||||||||
| Restructuring and other charges (b) | 54.3 | 10.7 | 11.0 | 17.5 | 14.4 | ||||||||||||||
| Stock based compensation | 65.6 | 22.7 | 15.4 | 37.3 | 28.9 | ||||||||||||||
| Disposition-related costs (c) | 18.6 | 2.8 | 1.4 | 6.6 | 1.4 | ||||||||||||||
| One-time spin-related costs (d) | 79.5 | 10.4 | 53.9 | 20.4 | 70.9 | ||||||||||||||
| Customer matter (e) | 1.7 | — | 0.4 | — | 4.3 | ||||||||||||||
| Enabling Services Segment costs (f) | — | — | 2.5 | — | 7.3 | ||||||||||||||
| CEO transition related costs | 4.8 | 4.8 | — | 4.8 | — | ||||||||||||||
| Other (g) | 12.1 | 2.3 | (8.9 | ) | 9.2 | (10.2 | ) | ||||||||||||
| Adjusted EBITDA from continuing operations | $ | 205.4 | $ | 54.9 | $ | 55.2 | $ | 85.2 | $ | 82.3 | |||||||||
(a) Includes amortization of intangible assets acquired as part of business acquisitions.
(b) Restructuring and other charges represent amounts incurred in connection with the elimination of redundant positions to reduce overcapacity, align resources and facilities, and restructure certain operations.
(c) Disposition-related costs are short-term incremental costs to support the transition services agreement associated with the sale of the Enabling Services Segment.
(d) Represents one-time or incremental costs required to implement capabilities to exit the Transition Services Agreement with former parent.
(e) As part of working with a customer, the Company agreed to make concessions and provide discounts and other consideration to the customer as part of a multi-party solution. There were no related adjustments in 2025 as the agreed upon amounts had been satisfied.
(f) These adjustments remove the impact of certain Enabling Services costs not included in discontinued operations. The Enabling Services Segment was sold in the second quarter of 2024.
(g) Includes adjustments to estimated contingent consideration on a sale of a facility, income related to services provided under Transition Services Agreements, settlements related to litigation initiated prior to the Spin, the yield expense incurred on amounts received under the Company’s Receivables Securitization Program, and amortization of implementation costs deferred in connection with cloud computing arrangements.
| FORTREA HOLDINGS INC. NET INCOME TO ADJUSTED NET INCOME RECONCILIATION (dollars and shares in millions, except per share data) (unaudited) | ||||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Adjusted net income (loss) from continuing operations: | ||||||||||||||||
| Net loss from continuing operations | $ | (374.9 | ) | $ | (99.3 | ) | $ | (937.8 | ) | $ | (179.1 | ) | ||||
| Foreign exchange loss | 19.9 | 1.5 | 25.5 | 6.8 | ||||||||||||
| Amortization (a) | 14.6 | 15.1 | 29.1 | 30.4 | ||||||||||||
| Goodwill and other asset impairments | 309.1 | — | 797.9 | — | ||||||||||||
| Restructuring and other charges (b) | 10.7 | 11.0 | 17.5 | 14.4 | ||||||||||||
| Stock based compensation | 22.7 | 15.4 | 37.3 | 28.9 | ||||||||||||
| Disposition-related costs (c) | 2.8 | 1.4 | 6.6 | 1.4 | ||||||||||||
| One-time spin-related costs (d) | 10.4 | 53.9 | 20.4 | 70.9 | ||||||||||||
| Customer matter (e) | — | 0.4 | — | 4.3 | ||||||||||||
| Enabling Services Segment costs (f) | — | 2.5 | — | 7.3 | ||||||||||||
| CEO transition related costs | 4.8 | — | 4.8 | — | ||||||||||||
| Other (g) | 2.3 | (8.9 | ) | 9.2 | (10.2 | ) | ||||||||||
| Income tax impact of adjustments (h) | (4.8 | ) | 4.7 | 9.0 | 17.7 | |||||||||||
| Adjusted net income (loss) from continuing operations | $ | 17.6 | $ | (2.3 | ) | $ | 19.5 | $ | (7.2 | ) | ||||||
| Basic shares | 90.6 | 89.4 | 90.4 | 89.3 | ||||||||||||
| Diluted shares | 91.1 | 89.4 | 91.1 | 89.3 | ||||||||||||
| Adjusted basic EPS from continuing operations | $ | 0.19 | $ | (0.03 | ) | $ | 0.22 | $ | (0.08 | ) | ||||||
| Adjusted diluted EPS from continuing operations | $ | 0.19 | $ | (0.03 | ) | $ | 0.21 | $ | (0.08 | ) | ||||||
(a) Includes amortization of intangible assets acquired as part of business acquisitions.
(b) Restructuring and other charges represent amounts incurred in connection with the elimination of redundant positions to reduce overcapacity, align resources and facilities, and restructure certain operations.
(c) Disposition-related costs are short-term incremental costs to support the transition services agreement associated with the sale of the Enabling Services Segment.
(d) Represents one-time or incremental costs required to implement capabilities to exit the Transition Services Agreement with former parent.
(e) As part of working with a customer, the Company agreed to make concessions and provide discounts and other consideration to the customer as part of a multi-party solution. There were no related adjustments in 2025 as the agreed upon amounts had been satisfied.
(f) These adjustments remove the impact of certain Enabling Services costs not included in discontinued operations. The Enabling Services Segment was sold in the second quarter of 2024.
(g) Includes adjustments to estimated contingent consideration on a sale of a facility, income related to services provided under Transition Services Agreements, settlements related to litigation initiated prior to the Spin, the yield expense incurred on amounts received under the Company’s Receivables Securitization Program, and amortization of implementation costs deferred in connection with cloud computing arrangements.
(h) Income tax impact of adjustments calculated based on the tax rate applicable to each item.
| FORTREA HOLDINGS INC. NET CASH USED FOR OPERATING ACTIVITIES TO FREE CASH FLOW RECONCILIATION (in millions) (unaudited) | ||||
| Six Months Ended June 30, 2025 | ||||
| Net cash used for operating activities | $ | (102.4 | ) | |
| Capital expenditures | (10.4 | ) | ||
| Free cash flow | $ | (112.8 | ) | |
FAQ
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