Fortrea Reports Third Quarter 2025 Results
Fortrea (Nasdaq: FTRE) reported third-quarter 2025 continuing-operations results with Q3 revenue of $701.3M and a Q3 adjusted EBITDA of $50.7M. GAAP net loss for the quarter was $15.9M and adjusted net income was $11.7M (diluted EPS $0.12). Backlog stood at $7,644M and book-to-bill was 1.13x. Year-to-date revenue was $2,062.9M, while YTD GAAP net loss was $953.7M, which included a $797.9M non-cash goodwill impairment impacting EPS by $8.81. The company raised full-year 2025 revenue guidance to $2,700M–$2,750M and narrowed adjusted EBITDA guidance to $175M–$195M.
Management said cost-saving initiatives remain on track and there were no impairment indicators in Q3.
Fortrea (Nasdaq: FTRE) ha riportato risultati delle operazioni continuative del terzo trimestre 2025 con entrate del Q3 di 701,3 milioni di dollari e un EBITDA rettificato del Q3 di 50,7 milioni di dollari. La perdita netta GAAP per il trimestre è stata 15,9 milioni di dollari e l’utile netto rettificato è stato 11,7 milioni di dollari (EPS diluito 0,12 USD). Il backlog era 7.644 milioni di dollari e il rapporto book-to-bill era 1,13x. I ricavi da inizio anno sono stati 2.062,9 milioni di dollari, mentre la perdita netta GAAP YTD è stata 953,7 milioni di dollari, che includeva una svalutazione non monetaria dell’avviamento di 797,9 milioni di dollari che ha impattato l’EPS di 8,81. L’azienda ha elevato la guidance per i ricavi per l’intero 2025 a 2.700–2.750 milioni di dollari e ristretta la guidance sull’EBITDA rettificato a 175–195 milioni di dollari.
La direzione ha dichiarato che le iniziative di risparmio sui costi restano in carreggiata e nel Q3 non sono stati segnalati indicatori di impairment.
Fortrea (Nasdaq: FTRE) informó resultados de operaciones continuas del tercer trimestre de 2025 con ingresos del T3 de 701,3 millones de dólares y un EBITDA ajustado del T3 de 50,7 millones de dólares. La pérdida neta GAAP del trimestre fue 15,9 millones de dólares y el ingreso neto ajustado fue 11,7 millones de dólares (EPS diluido 0,12 USD). El backlog fue de 7,644 millones de dólares y la relación book-to-bill fue de 1,13x. Los ingresos acumulados del año hasta la fecha fueron 2,0629 millones de dólares, mientras que la pérdida neta GAAP YTD fue de 953,7 millones de dólares, que incluyó una impairment de goodwill no monetaria de 797,9 millones de dólares que impactó el EPS en 8,81. La empresa elevó la guía de ingresos para todo 2025 a 2.700–2.750 millones de dólares y estrechó la guía de EBITDA ajustado a 175–195 millones de dólares.
La dirección indicó que las iniciativas de ahorro de costos siguen en marcha y no hubo indicadores de impairment en el Q3.
Fortrea(Nasdaq: FTRE)가 2025년 3분기 계속 영업 실적을 발표했습니다. 3분기 매출은 701.3백만 달러이고 3분기 조정 EBITDA는 50.7백만 달러였습니다. GAAP 순손실은 분기당 15.9백만 달러였고, 조정 순이익은 11.7백만 달러였습니다 (희석된 주당순이익 0.12달러). 미결재 주문장(backlog)은 76.44억 달러였고 북-투-빌 백분율은 1.13x였습니다. 연간 누계 매출은 206.29백만 달러, 반면 누계 GAAP 순손실은 953.7백만 달러였으며 797.9백만 달러의 비현금 영업권 손상으로 EPS가 8.81만큼 영향 받았습니다. 회사는 2025년 연간 매출 가이던스를 2,700–2,750백만 달러로 올리고 조정 EBITDA 가이던스를 175–195백만 달러로 좁혔습니다.
경영진은 비용 절감 이니셔티브가 순조롭게 진행 중이며 Q3에서 손상 신호는 없었다고 밝혔습니다.
Fortrea (Nasdaq : FTRE) a publié les résultats des activités continues du troisième trimestre 2025 avec un chiffre d'affaires du T3 de 701,3 M$ et un EBITDA ajusté du T3 de 50,7 M$. La perte nette GAAP du trimestre s’est élevée à 15,9 M$ et le résultat net ajusté à 11,7 M$ (EPS dilué 0,12 $). Le carnet de commandes s’éleva à 7 644 M$ et le ratio book-to-bill était de 1,13x. Le chiffre d’affaires cumulatif de l’année à ce jour s’élevait à 2 062,9 M$, tandis que la perte nette GAAP cumulée s’élevait à 953,7 M$, incluant une dépréciation d’intangible de goodwill non monétaire de 797,9 M$ qui a impacté l’EPS à 8,81. L’entreprise a relevé ses prévisions de chiffre d’affaires pour l’année 2025 à 2 700–2 750 M$ et a resserré ses prévisions d’EBITDA ajusté à 175–195 M$.
La direction a indiqué que les initiatives d’économies de coûts restent sur la bonne voie et qu’aucun indicateur d’ impairment n’a été observé au T3.
Fortrea (Nasdaq: FTRE) hat die Ergebnisse der fortlaufenden Aktivitäten im dritten Quartal 2025 gemeldet mit Q3-Umsatz von 701,3 Mio. USD und Q3-adjustiertem EBITDA von 50,7 Mio. USD. GAAP-Nettoverlust im Quartal betrug 15,9 Mio. USD und bereinigter Nettogewinn 11,7 Mio. USD (verwässerter EPS 0,12 USD). Auftragsbestand lag bei 7.644 Mio. USD und das Book-to-Bill-Verhältnis betrug 1,13x. Umsatzyear-to-date (YTD) betrug 2.062,9 Mio. USD, während GAAP-Nettoverlust YTD 953,7 Mio. USD war, der eine nicht zahlungswirksame Goodwill-Impairment in Höhe von 797,9 Mio. USD beinhaltete, was EPS um 8,81 beeinflusste. Das Unternehmen hob die Umsatzprognose für das Gesamtjahr 2025 auf 2.700–2.750 Mio. USD an und verschlankte die prognostizierte bereinigte EBITDA auf 175–195 Mio. USD.
Management sagte, dass Kostensenkungsinitiativen auf Kurs bleiben und es im Q3 keine Impairment-Indikatoren gab.
فورتريا (ناسداك: FTRE) أبلغت عن نتائج التشغيل المستمر للربع الثالث من 2025 مع إيرادات الربع الثالث 701.3 مليون دولار و EBITDA المعدل للربع الثالث 50.7 مليون دولار. صافي الخسارة وفق GAAP للربع كان 15.9 مليون دولار وصافي الدخل المعدل كان 11.7 مليون دولار (ربحية السهم المخففة 0.12 دولار). بلغ backlog 7,644 مليون دولار ونسبة book-to-bill كانت 1.13x. الإيرادات منذ بداية السنة حتى التاريخ كانت 2,062.9 مليون دولار، في حين بلغ صافي الخسارة وفق GAAP حتى تاريخه 953.7 مليون دولار، والتي شملت انخفاضاً غير نقدي في goodwill قدره 797.9 مليون دولار أثر على EPS بمقدار 8.81. رفعت الشركة توجيهات الإيرادات لسنة 2025 كاملة إلى 2,700–2,750 مليون دولار وضيّقت توجيهات EBITDA المعدلة إلى 175–195 مليون دولار.
قالت الإدارة إن مبادرات توفير التكاليف لا تزال على المسار الصحيح، ولم تكن هناك indicators على انخفاض القيمة في الربع الثالث.
- Q3 revenue of $701.3M
- Backlog of $7,644M
- Raised 2025 revenue guidance to $2,700M–$2,750M
- Narrowed 2025 adjusted EBITDA guidance to $175M–$195M
- YTD GAAP net loss of $953.7M
- Non-cash goodwill impairment of $797.9M impacting EPS by $8.81
- Q3 adjusted EBITDA declined to $50.7M from prior-year $64.2M
Insights
Fortrea raised full-year revenue guidance but shows mixed operating signals; adjusted metrics improved while GAAP results reflect prior goodwill charges.
Fortrea grew third-quarter revenue to
The GAAP results remain distorted by a prior non-cash goodwill impairment of
Watch the following near-term items: execution versus the revised guidance through the rest of
For the three months ended September 30, 2025, from continuing operations:
- Revenues of
$701.3 million - GAAP net loss of
$(15.9) million - Adjusted EBITDA of
$50.7 million - GAAP and adjusted net (loss) income per diluted share of
$(0.17) and$0.12 , respectively - Book-to-bill ratio of 1.13x, resulting in 1.07x book-to-bill for the trailing 12 months
- Cost saving initiatives remain on track
- Raising 2025 revenue guidance to a range of
$2,700 million to$2,750 million ; narrowing 2025 adjusted EBITDA guidance to a range of$175 million to$195 million
DURHAM, N.C., Nov. 05, 2025 (GLOBE NEWSWIRE) -- Fortrea (Nasdaq: FTRE) (the “Company”), a leading global contract research organization (CRO), today reported financial results for the third quarter ended September 30, 2025.
“Fortrea delivered a solid performance that met expectations in the third quarter by partnering with our clients and advancing the development of potentially life-changing treatments for patients,” said Anshul Thakral, CEO of Fortrea. “I’m pleased with how our strong team moved quickly through our leadership transition without missing a beat. I have spent my first few months connecting with clients and meeting with colleagues across the globe to build a holistic view of Fortrea today. I am confident that we have the global footprint, differentiated capabilities, therapeutic expertise, technology and innovation needed to deliver on our goals. We are committed to executing our plans with operational, commercial and financial excellence.”
All commentary in this press release relates to continuing operations unless otherwise noted.
Third Quarter 2025 Financial Results
Revenue for the third quarter was
Third quarter GAAP net loss was
Backlog as of September 30, 2025, was
Year-To-Date 2025 Financial Results
Year-to-Date revenue for the first nine months of 2025 was
Year-to-Date GAAP net loss was
The goodwill impairments occurred during the first half of 2025 and primarily resulted from declines in the Company’s share price, as well as a macroeconomic market-driven increase to the discount rate. There were no indicators of impairment in the third quarter of 2025.
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 November 5, 2025 to review its third 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; the risk that establishment of our accounting and other management systems, and our efforts to improve them, could cost more than anticipated or impact internal controls; 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
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 September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Revenues | $ | 701.3 | $ | 674.9 | $ | 2,062.9 | $ | 1,999.4 | ||||||||
| Costs and expenses: | ||||||||||||||||
| Direct costs, exclusive of depreciation and amortization | 578.6 | 526.6 | 1,690.2 | 1,606.1 | ||||||||||||
| Selling, general and administrative expenses, exclusive of depreciation and amortization | 106.8 | 136.3 | 353.4 | 412.6 | ||||||||||||
| Depreciation and amortization | 19.6 | 21.2 | 58.7 | 64.5 | ||||||||||||
| Goodwill and other asset impairments | — | — | 797.9 | — | ||||||||||||
| Restructuring and other charges | 4.9 | 8.8 | 21.7 | 22.5 | ||||||||||||
| Total costs and expenses | 709.9 | 692.9 | 2,921.9 | 2,105.7 | ||||||||||||
| Operating loss | (8.6 | ) | (18.0 | ) | (859.0 | ) | (106.3 | ) | ||||||||
| Other income (expense): | ||||||||||||||||
| Interest expense | (22.6 | ) | (22.4 | ) | (68.2 | ) | (101.9 | ) | ||||||||
| Foreign exchange loss | (2.6 | ) | (0.2 | ) | (28.1 | ) | (7.0 | ) | ||||||||
| Other, net | 5.1 | 4.8 | 7.9 | 15.1 | ||||||||||||
| Loss from continuing operations before income taxes | (28.7 | ) | (35.8 | ) | (947.4 | ) | (200.1 | ) | ||||||||
| Income tax (benefit) expense | (12.8 | ) | (17.3 | ) | 6.3 | (2.5 | ) | |||||||||
| Loss from continuing operations | (15.9 | ) | (18.5 | ) | (953.7 | ) | (197.6 | ) | ||||||||
| Loss from discontinued operations, net of tax | — | (9.4 | ) | — | (69.7 | ) | ||||||||||
| Net loss | $ | (15.9 | ) | $ | (27.9 | ) | $ | (953.7 | ) | $ | (267.3 | ) | ||||
| Earnings (loss) per common share | ||||||||||||||||
| Basic and diluted earnings (loss) per share from continuing operations | $ | (0.17 | ) | $ | (0.21 | ) | $ | (10.53 | ) | $ | (2.21 | ) | ||||
| Basic and diluted earnings (loss) per share from discontinued operations | — | (0.10 | ) | — | (0.78 | ) | ||||||||||
| Basic and diluted earnings (loss) per share | $ | (0.17 | ) | $ | (0.31 | ) | $ | (10.53 | ) | $ | (2.99 | ) | ||||
| FORTREA HOLDINGS INC. CONDENSED CONSOLIDATED BALANCE SHEETS (dollars and shares in millions) (unaudited) | ||||||||
| September 30, 2025 | December 31, 2024 | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 131.3 | $ | 118.5 | ||||
| Accounts receivable and unbilled services, net | 663.2 | 659.5 | ||||||
| Prepaid expenses and other | 124.0 | 170.2 | ||||||
| Total current assets | 918.5 | 948.2 | ||||||
| Property, plant and equipment, net | 147.6 | 156.3 | ||||||
| Goodwill, net | 958.1 | 1,710.4 | ||||||
| Intangible assets, net | 635.4 | 655.7 | ||||||
| Deferred income taxes | 8.3 | 5.2 | ||||||
| Other assets, net | 74.2 | 103.4 | ||||||
| Total assets | $ | 2,742.1 | $ | 3,579.2 | ||||
| LIABILITIES AND EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 49.5 | $ | 138.2 | ||||
| Accrued expenses and other current liabilities | 369.6 | 369.8 | ||||||
| Unearned revenue | 411.6 | 353.3 | ||||||
| Current portion of long-term debt | 74.5 | 74.8 | ||||||
| Short-term operating lease liabilities | 9.2 | 13.4 | ||||||
| Total current liabilities | 914.4 | 949.5 | ||||||
| Long-term debt, less current portion | 1,052.1 | 1,049.7 | ||||||
| Operating lease liabilities | 51.5 | 60.6 | ||||||
| Deferred income taxes and other tax liabilities | 106.9 | 121.7 | ||||||
| Other liabilities | 36.4 | 35.3 | ||||||
| Total liabilities | 2,161.3 | 2,216.8 | ||||||
| Commitments and contingent liabilities | ||||||||
| Equity: | ||||||||
| Common stock, 92.2 and 89.7 shares outstanding at September 30, 2025, and December 31, 2024, respectively | 0.1 | 0.1 | ||||||
| Additional paid-in capital | 2,101.8 | 2,042.2 | ||||||
| Accumulated deficit | (1,350.7 | ) | (397.0 | ) | ||||
| Accumulated other comprehensive loss | (170.4 | ) | (282.9 | ) | ||||
| Total equity | 580.8 | 1,362.4 | ||||||
| Total liabilities and equity | $ | 2,742.1 | $ | 3,579.2 | ||||
| FORTREA HOLDINGS INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) (unaudited) | ||||||||
| Nine Months Ended September 30, | ||||||||
| 2025 | 2024 | |||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
| Net loss | $ | (953.7 | ) | $ | (267.3 | ) | ||
| Adjustments to reconcile net loss to net cash (used for) provided by operating activities: | ||||||||
| Depreciation and amortization | 58.7 | 66.1 | ||||||
| Stock compensation | 59.6 | 43.1 | ||||||
| Credit loss expense | 13.5 | 17.0 | ||||||
| Operating lease right-of-use asset expense | 8.6 | 10.8 | ||||||
| Operating lease right-of-use asset impairment | 1.3 | 4.8 | ||||||
| Goodwill and other asset impairments | 797.9 | 24.0 | ||||||
| Deferred income taxes | (24.4 | ) | (23.2 | ) | ||||
| Unrealized foreign exchange movements | 38.8 | 4.2 | ||||||
| Loss on sale of business | — | 23.2 | ||||||
| Write-off of debt issuance costs | — | 12.2 | ||||||
| Other, net | 2.2 | 4.7 | ||||||
| Changes in assets and liabilities: | ||||||||
| (Increase) decrease in accounts receivable and unbilled services, net | (10.6 | ) | 290.9 | |||||
| Decrease (increase) in prepaid expenses and other | 43.8 | (33.3 | ) | |||||
| (Decrease) increase in accounts payable | (89.7 | ) | 5.8 | |||||
| Increase in unearned revenue | 54.6 | 106.4 | ||||||
| Decrease in accrued expenses and other | (16.2 | ) | (43.7 | ) | ||||
| Net cash (used for) provided by operating activities | (15.6 | ) | 245.7 | |||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
| Capital expenditures | (17.7 | ) | (28.7 | ) | ||||
| Proceeds from sale of business, net | 39.6 | 276.6 | ||||||
| Proceeds from sale of assets | — | 0.2 | ||||||
| Net cash provided by investing activities | 21.9 | 248.1 | ||||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
| Proceeds from revolving credit facilities | 453.9 | 617.0 | ||||||
| Payments on revolving credit facilities | (453.9 | ) | (617.0 | ) | ||||
| Debt issuance costs | (0.6 | ) | — | |||||
| Principal payments of long-term debt | — | (482.7 | ) | |||||
| Payments for taxes related to net share settlement of stock awards | — | (14.0 | ) | |||||
| Net cash used for financing activities | (0.6 | ) | (496.7 | ) | ||||
| Effect of exchange rate changes on cash and cash equivalents | 7.1 | (0.4 | ) | |||||
| Net change in cash and cash equivalents | 12.8 | (3.3 | ) | |||||
| Cash and cash equivalents at beginning of period | 118.5 | 108.6 | ||||||
| Cash and cash equivalents at end of period | $ | 131.3 | $ | 105.3 | ||||
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 | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||
| September 30, 2025 | 2025 | 2024 | 2025 | 2024 | ||||||||||||||||
| Adjusted EBITDA from continuing operations: | ||||||||||||||||||||
| Net loss from continuing operations | $ | (1,027.6 | ) | $ | (15.9 | ) | $ | (18.5 | ) | $ | (953.7 | ) | $ | (197.6 | ) | |||||
| Income tax expense (benefit) | 5.3 | (12.8 | ) | (17.3 | ) | 6.3 | (2.5 | ) | ||||||||||||
| Interest expense, net | 90.1 | 22.6 | 22.4 | 68.2 | 101.9 | |||||||||||||||
| Foreign exchange loss | 31.7 | 2.6 | 0.2 | 28.1 | 7.0 | |||||||||||||||
| Depreciation and amortization (a) | 79.5 | 19.6 | 21.2 | 58.7 | 64.5 | |||||||||||||||
| Goodwill and other asset impairments | 797.9 | — | — | 797.9 | — | |||||||||||||||
| Restructuring and other charges (b) | 51.7 | 6.3 | 8.9 | 23.8 | 23.3 | |||||||||||||||
| Stock based compensation | 74.9 | 22.3 | 13.0 | 59.6 | 41.9 | |||||||||||||||
| Disposition-related costs (c) | 15.0 | 2.3 | 5.9 | 8.9 | 7.3 | |||||||||||||||
| One-time spin-related costs (d) | 55.5 | 3.0 | 27.0 | 23.4 | 97.9 | |||||||||||||||
| Customer matter (e) | 0.8 | — | 0.9 | — | 5.2 | |||||||||||||||
| Enabling Services Segment costs (f) | — | — | — | — | 7.3 | |||||||||||||||
| CEO transition related costs | 5.1 | 0.3 | — | 5.1 | — | |||||||||||||||
| Other (g) | 12.0 | 0.4 | 0.5 | 9.6 | (9.7 | ) | ||||||||||||||
| Adjusted EBITDA from continuing operations | $ | 191.9 | $ | 50.7 | $ | 64.2 | $ | 135.9 | $ | 146.5 | ||||||||||
(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 September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Adjusted net income from continuing operations: | ||||||||||||||||
| Net loss from continuing operations | $ | (15.9 | ) | $ | (18.5 | ) | $ | (953.7 | ) | $ | (197.6 | ) | ||||
| Foreign exchange loss | 2.6 | 0.2 | 28.1 | 7.0 | ||||||||||||
| Amortization (a) | 14.8 | 15.2 | 43.9 | 45.6 | ||||||||||||
| Goodwill and other asset impairments | — | — | 797.9 | — | ||||||||||||
| Restructuring and other charges (b) | 6.3 | 8.9 | 23.8 | 23.3 | ||||||||||||
| Stock based compensation | 22.3 | 13.0 | 59.6 | 41.9 | ||||||||||||
| Disposition-related costs (c) | 2.3 | 5.9 | 8.9 | 7.3 | ||||||||||||
| One-time spin-related costs (d) | 3.0 | 27.0 | 23.4 | 97.9 | ||||||||||||
| Customer matter (e) | — | 0.9 | — | 5.2 | ||||||||||||
| Enabling Services Segment costs (f) | — | — | — | 7.3 | ||||||||||||
| CEO transition related costs | 0.3 | — | 5.1 | — | ||||||||||||
| Other (g) | 0.4 | 0.5 | 9.6 | (9.7 | ) | |||||||||||
| Income tax impact of adjustments (h) | (24.4 | ) | (32.4 | ) | (15.4 | ) | (14.7 | ) | ||||||||
| Adjusted net income from continuing operations | $ | 11.7 | $ | 20.7 | $ | 31.2 | $ | 13.5 | ||||||||
| Basic shares | 91.2 | 89.6 | 90.6 | 89.4 | ||||||||||||
| Diluted shares | 93.8 | 90.1 | 92.0 | 90.3 | ||||||||||||
| Adjusted basic EPS from continuing operations | $ | 0.13 | $ | 0.23 | $ | 0.34 | $ | 0.15 | ||||||||
| Adjusted diluted EPS from continuing operations | $ | 0.12 | $ | 0.23 | $ | 0.34 | $ | 0.15 | ||||||||
(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 represents the amount of additional tax expense that the Company estimates it would record if it used Non-GAAP results instead of GAAP results in the calculation of its provision. | ||||||||||||||||
| FORTREA HOLDINGS INC. NET CASH USED FOR OPERATING ACTIVITIES TO FREE CASH FLOW RECONCILIATION (in millions) (unaudited) | ||||
| Nine Months Ended September 30, 2025 | ||||
| Net cash used for operating activities | $ | (15.6 | ) | |
| Capital expenditures | (17.7 | ) | ||
| Free cash flow | $ | (33.3 | ) | |
FAQ
What were Fortrea (FTRE) third-quarter 2025 revenues and adjusted EBITDA?
How did Fortrea (FTRE) update 2025 full-year guidance on November 5, 2025?
What caused Fortrea's large year-to-date GAAP loss in 2025 (FTRE)?
What was Fortrea's backlog and book-to-bill in Q3 2025 (FTRE)?
Did Fortrea (FTRE) report any impairment indicators in Q3 2025?
How did Fortrea's Q3 2025 adjusted net income per share compare to Q3 2024 (FTRE)?
