EHS Comments on Disappointing TrueBlue Fourth Quarter Earnings Results

Rhea-AI Summary

EHS Investments criticized TrueBlue (NYSE: TBI) following 4Q25 results and 1Q26 guidance, saying missed targets, declining gross profit and EBITDA, continued negative free cash flow, and a ~9% expected 1Q26 gross profit drop underline urgent need for Board change.

EHS cites a 24% stock decline in late February and says it will seek to nominate directors for the 2026 annual meeting.

Positive

• 190,131 shares directly owned by EHS Azure
• 840,689 shares directly owned by Eric H. Su

Negative

• Forecasted ~9% year-over-year gross profit decline in 1Q26
• TrueBlue stock fell 24% from 2/18/26–2/24/26
• Negative free cash flows reported and cited as ongoing
• Missed targets: $14M revenues vs ~$15M guidance in 3Q25

Argus Mar 3 session

-0.24% close to close Open Argus

Details

News Market Reaction – TBI

On Mar 3, the day this news came out, TBI closed 0.24% below the previous close.

Data tracked by StockTitan Argus for the Mar 3 session.

Key Figures

HSP actual revenue: $14M HSP revenue guidance: $15M Actual gross profit: $90M +5 more

HSP actual revenue

$14M

Actual revenues from Healthcare Staffing Professionals in 3Q25

HSP revenue guidance

$15M

Guidance for Healthcare Staffing Professionals revenue in 3Q25

Actual gross profit

$90M

Reported gross profit vs. ~$93M guidance in 3Q25

Gross profit guidance

$93M

Guided gross profit for 3Q25

Guided GP decline

9%

Expected year-over-year gross profit decline at 1Q26 guidance midpoint

Post-earnings drop

24%

Share price decline from 2/18/26 to 2/24/26 after earnings

EHS Azure stake

190,131 shares

Common Stock beneficially owned by EHS Azure

Eric H. Su stake

840,689 shares

Common Stock directly beneficially owned by Eric H. Su

Historical Context

5 past events · Latest: Feb 26

5 events

1. Feb 26

   Leadership appointment

   24h Move

   +4.0%

   New president appointed to lead PeopleReady On-Demand operations and strategy.

2. Feb 25

   Conference participation

   24h Move

   +4.0%

   Company scheduled to attend Truist virtual human capital investor conference.

3. Feb 18

   Earnings results

   24h Move

   -13.5%

   Q4 2025 results with net loss and low adjusted EBITDA despite revenue growth.

4. Feb 04

   Earnings date set

   24h Move

   -0.4%

   Announcement of timing and webcast details for Q4 and full-year 2025 results.

5. Feb 04

   Awards recognition

   24h Move

   +0.2%

   Multiple brands received Best of Staffing awards for sustained service excellence.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

ebitda, free cash flows, staffing index, proxy statement, +2 more

6 terms

ebitda financial

"missed targets(1), deteriorating gross profits and EBITDA, continued negative free cash flows"

EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It measures a company's profitability by focusing on the money it makes from its core operations, ignoring expenses like taxes and accounting adjustments. Investors use EBITDA to compare how well different companies are performing financially, as it provides a clearer picture of operational success without the influence of financial structure or accounting choices.

View in glossary

free cash flows financial

"deteriorating gross profits and EBITDA, continued negative free cash flows, and mounting signs"

Free cash flow is the cash a company has left after paying for day-to-day operations and necessary upkeep or replacements of equipment — like the money left in your wallet after covering bills and basic home repairs. It matters to investors because it shows how much real, spendable cash a business can use to pay dividends, buy growth opportunities, pay down debt or survive a slowdown, so it helps reveal financial strength beyond reported profits.

staffing index technical

"While the American Staffing Association's real-time Staffing Index has inflected to growth"

A staffing index is a numerical measure that tracks how many workers a company or sector has relative to a chosen baseline (such as past periods, planned headcount, or operational need). Investors use it as a quick signal of hiring strength, labor costs and capacity to grow or deliver products and services — like checking a fuel gauge to see if a business has enough people to meet demand or is overstaffed and carrying extra expense.

proxy statement regulatory

"intend to file a preliminary proxy statement and accompanying WHITE proxy card"

A proxy statement is a document companies send to shareholders ahead of a meeting that lays out the items up for a vote—like who will sit on the board, executive pay, and major corporate decisions—and provides background so shareholders can decide how to cast their votes or appoint someone to vote for them. Think of it as an agenda plus a ballot and briefing notes, important because the outcomes can change control, strategy, and value.

View in glossary

securities and exchange commission regulatory

"with the Securities and Exchange Commission ("SEC") to be used to solicit votes"

A national government agency that enforces rules for buying, selling and disclosing information about stocks and other investments, acting like a referee and scorekeeper for financial markets. It requires companies to share clear, regular financial and business information and investigates fraud or rule-breaking, which matters to investors because those rules and disclosures help ensure fair prices, reduce hidden risks and make it easier to compare investment choices.

forward-looking statements regulatory

"Some of the materials in this press release contain forward-looking statements."

Forward-looking statements are predictions or plans that companies share about what they expect to happen in the future, like estimating sales or profits. They matter because they help investors understand a company's outlook, but since they are based on guesses and assumptions, they can sometimes be wrong.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Argues Continued Deterioration of Stock Price and Key Financial Metrics Demonstrate Urgent Need for Meaningful Board Change

Criticizes Failure of Board to Meaningfully Engage with EHS's Highly Qualified Director Nominees

NEW YORK, March 3, 2026 /PRNewswire/ -- EHS Investments ("EHS"), a significant shareholder of TrueBlue Inc. (NYSE: TBI) ("TrueBlue" or the "Company"), today issued the following statement:

We have argued publicly and privately that the minor refreshment to its Board of Directors ("Board") announced by TrueBlue earlier this year does not adequately address what is required to address the Company's serious operational and financial challenges, and that further change at the Board level is necessary to prevent continued and significant destruction of shareholder value. TrueBlue's fourth quarter results and 2026 guidance substantiate the immediate need for such change.

Shareholders are once again confronted with another quarter of missed targets⁽¹⁾, deteriorating gross profits and EBITDA, continued negative free cash flows, and mounting signs of financial strain. While the American Staffing Association's real-time Staffing Index has inflected to growth, TrueBlue's forecast for 1Q26 suggests further deterioration, with gross profits now expected to decline ~9% year-over-year in 1Q26⁽²⁾. While TrueBlue claims that it is "executing on a disciplined and decisive plan leading to improved financial results"⁽³⁾, the results speak for themselves: far from implementing a turnaround, the Company is rapidly losing ground.

Instead of confronting these failures and acknowledging the need for change, management continues to obscure underlying performance with opaque disclosures surrounding cost pass-through revenue accounting while characterizing its underperformance to shareholders as "producing results"⁽⁴⁾. Investors, however, are rendering their own verdict, with TrueBlue's stock falling 24% in the days following this latest earnings release⁽⁵⁾.

With a share price now near all-time lows, urgent and decisive change is required before further shareholder value is destroyed by a management team and Board that seemingly refuses to acknowledge, let alone begin to address, the serious challenges facing the Company. The perspective of industry veterans and shareholder representatives whose interests are aligned with those of TrueBlue's investors is needed now more than ever – and that is exactly what our slate of highly-qualified director nominees offers to bring to the table.

Unfortunately, our efforts to engage with the Board on a constructive settlement that delivers these desperately needed changes and avoids a lengthy and distracting proxy contest have been met with flat refusal. We urge the Board to take immediate action and engage in good faith with the director candidates and solutions we have offered before further value is destroyed. The Board should demonstrate alignment with shareholders by addressing the Company's challenges rather than continue in its defense of an unsustainable status quo.

We look forward to presenting to our fellow shareholders the detailed strategic value-creation plan developed by our experienced and highly qualified director nominees in the coming weeks.

EHS's previously released public materials can be found at www.ehsinvestments.com.

(1)	$14M of actual revenues from Healthcare Staffing Professionals vs. ~$15M guidance in 3Q25; $90M of actual gross profit vs. ~$93M guidance in 3Q25
(2)	At the midpoint of 1Q26 guidance
(3)	TrueBlue 1/8/26 Press Release "TrueBlue Highlights Recent Board Refreshment and Strategic Initiatives Underway to Achieve Long-Term Profitable Growth"
(4)	CEO Taryn Owen commentary on 4Q25 earnings call
(5)	TBI share price change from 2/18/26 - 2/24/26

CERTAIN INFORMATION CONCERNING THE PARTICIPANTS

EHS Management LLC, a Delaware limited liability company ("EHS Management"), together with the other participants named herein, intend to file a preliminary proxy statement and accompanying WHITE proxy card with the Securities and Exchange Commission ("SEC") to be used to solicit votes for the election of its slate of director nominees at the 2026 annual meeting of stockholders of TrueBlue, Inc., a Delaware corporation (the "Company").

EHS MANAGEMENT STRONGLY ADVISES ALL STOCKHOLDERS OF THE COMPANY TO READ THE PROXY STATEMENT AND OTHER PROXY MATERIALS AS THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION. SUCH PROXY MATERIALS WILL BE AVAILABLE AT NO CHARGE ON THE SEC'S WEB SITE AT HTTP://WWW.SEC.GOV. IN ADDITION, THE PARTICIPANTS IN THIS PROXY SOLICITATION WILL PROVIDE COPIES OF THE PROXY STATEMENT WITHOUT CHARGE, WHEN AVAILABLE, UPON REQUEST. REQUESTS FOR COPIES SHOULD BE DIRECTED TO THE PARTICIPANTS' PROXY SOLICITOR.

The participants in the proxy solicitation are anticipated to be EHS Management, EHS Azure Opportunity Fund, LP ("EHS Azure"), Eric H. Su (collectively, "EHS") and the individuals to be nominated by EHS Azure as director candidates at the Company, who have not yet been identified. As of the date hereof, EHS Azure directly beneficially owns 190,131 shares of Common Stock, no par value, of the Company (the "Common Stock"). EHS Management, as the general partner of EHS Azure, may be deemed the beneficial owner of the 190,131 shares of Common Stock directly owned by EHS Azure. As of the date hereof, Eric H. Su directly beneficially owns 840,689 shares of Common Stock. As the sole owner and manager of EHS Management, Mr. Su may be deemed to beneficially own the 190,131 shares of Common Stock directly owned by EHS Azure.

Disclaimer
This letter has been prepared by EHS. The views expressed herein reflect the opinions of EHS and are based on publicly available information with respect to TrueBlue, Inc. ("TrueBlue" or the "Company"). EHS recognizes that there may be confidential information in the possession of the Company that could lead it or others to disagree with his conclusions. EHS reserves the right to change or modify any of such views or opinions at any time and for any reason and expressly disclaims any obligation to correct, update, or revise the information contained herein or to otherwise provide any additional materials.

For the avoidance of doubt, this press release was not produced by any person that is affiliated with the Company, nor was its content endorsed by the Company. This press release is provided merely as information and is not intended to be, nor should it be construed as, an offer to sell or a solicitation of an offer to buy any security nor as a recommendation to purchase or sell any security.

Some of the materials in this press release contain forward-looking statements. All statements contained herein that are not clearly historical in nature or that necessarily depend on future events are forward-looking, and the words "anticipate," "believe," "expect," "potential," "could," "opportunity," "estimate," "plan," "once again," "achieve," and similar expressions are generally intended to identify forward-looking statements. The projected results and statements contained herein that are not historical facts are based on EHS's current expectations, speak only as of the date of these materials and involve risks, uncertainties and other factors that may cause actual results, performances or achievements to be materially different from any future results, performances or achievements expressed or implied by such projected results and statements. Assumptions relating to the foregoing involve judgments with respect to, among other things, future economic competitive and market conditions and future business decisions, all of which are difficult or impossible to predict accurately and many of which are beyond the control of EHS.

CONTACT:
Investors:
Okapi Partners LLC
Bruce Goldfarb / Chuck Garske / Lisa Patel
(212) 297 – 0720
Email: info@okapipartners.com

View original content to download multimedia:https://www.prnewswire.com/news-releases/ehs-comments-on-disappointing-trueblue-fourth-quarter-earnings-results-302701745.html

SOURCE EHS Investments

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What did EHS say about TrueBlue's (TBI) 1Q26 gross profit outlook?

EHS says TrueBlue's 1Q26 gross profit is expected to decline about 9% year-over-year. According to EHS, that midpoint guidance signals further operational deterioration after disappointing fourth-quarter results and supports EHS's call for Board change.

How did TrueBlue (TBI) shares react after the 4Q25 earnings release?

TrueBlue shares fell about 24% in the days following the earnings release. According to EHS, the decline occurred from February 18–24, 2026, and is cited as evidence of investor concern over the company's performance.

What specific fourth-quarter misses did EHS highlight for TrueBlue (TBI)?

EHS highlighted $14M actual Healthcare Staffing Professionals revenues versus ~$15M guidance and $90M actual gross profit versus ~$93M guidance. According to EHS, these misses illustrate a pattern of missed targets contributing to weakened results.

What action is EHS proposing for TrueBlue's (TBI) board composition?

EHS plans to nominate a slate of director candidates and intends to file a proxy statement for the 2026 annual meeting. According to EHS, its nominees are industry veterans with a detailed strategic value-creation plan to present to shareholders.

How many TrueBlue (TBI) shares do EHS principals currently beneficially own?

EHS Azure directly owns 190,131 shares and Eric H. Su directly owns 840,689 shares. According to EHS, EHS Management may be deemed beneficial owner of the 190,131 shares held by EHS Azure.

What financial signals did EHS cite as evidence of TrueBlue's (TBI) strain?

EHS pointed to deteriorating gross profits, lower EBITDA, continued negative free cash flow, and missed guidance as key strain indicators. According to EHS, these concrete financial metrics justify urgent board-level changes.