Accessibility StatementSkip Navigation NEW YORK, Sept. 9, 2025 /PRNewswire/ -- Kuehn Law, PLLC, a shareholder litigation law firm, is investigating whether certain officers and directors of Fortrea Holdings, Inc. (NASDAQ: FTRE) breached their fiduciary duties to shareholders. According to a federal securities lawsuit, Insiders at Fortrea caused the company to misrepresent or fail to disclose that (i) Fortrea overestimated the amount of revenue the Pre-Spin Projects were likely to contribute to the Company ...

Group 1 - A lawsuit is pending against Fortrea Holdings Inc. for alleged violations of securities laws, specifically concerning the company's financial disclosures and projections [1][2] - The lawsuit claims that Fortrea Holdings Inc. overstated revenue contributions from Pre-Spin Projects and inflated EBITDA targets for 2025, leading to misleading public statements about the company's financial health [2] - Investors who purchased shares of Fortrea Holdings Inc. prior to July 2023 are encouraged to contact the Shareholders Foundation for potential options [1][3] Group 2 - The Shareholders Foundation, Inc. provides services related to shareholder issues, including legal monitoring and information on securities class actions [3] - The organization is not a law firm and does not initiate legal actions, but serves as a public service to inform investors [3]

PART I. FINANCIAL INFORMATION [Item 1. Financial Statements (unaudited)](index=5&type=section&id=Item%201.%20Financial%20Statements%20(unaudited)) This section presents the unaudited condensed consolidated financial statements for Fortrea Holdings Inc for the periods ended June 30, 2025 [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheet shows a significant decrease in total assets and equity, primarily driven by a large reduction in goodwill Condensed Consolidated Balance Sheet Highlights (in millions) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$2,835.1** | **$3,579.2** | | Goodwill, net | $965.2 | $1,710.4 | | Total current assets | $960.0 | $948.2 | | **Total Liabilities** | **$2,245.9** | **$2,216.8** | | Long-term debt, less current portion | $1,100.9 | $1,049.7 | | **Total Equity** | **$589.2** | **$1,362.4** | | Accumulated deficit | $(1,334.8) | $(397.0) | [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Revenues increased slightly, but a substantial goodwill impairment charge drove a significant net loss for the first half of 2025 Statement of Operations Summary (in millions) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Revenues | $710.3 | $662.4 | $1,361.6 | $1,324.5 | | Goodwill and other asset impairments | $309.1 | $— | $797.9 | $— | | Operating loss | $(330.3) | $(50.9) | $(850.4) | $(88.3) | | Net loss | $(374.9) | $(138.4) | $(937.8) | $(239.4) | | Basic and diluted EPS | $(4.14) | $(1.55) | $(10.37) | $(2.69) | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) The company experienced a significant negative shift in operating cash flow, moving from a source of cash to a use of cash year-over-year Cash Flow Summary (in millions) | Cash Flow Activity | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash (used for) provided by operating activities | $(102.4) | $248.1 | | Net cash provided by investing activities | $8.6 | $256.2 | | Net cash provided by (used for) financing activities | $49.4 | $(482.7) | | Net change in cash and cash equivalents | $(37.3) | $17.6 | [Notes to Unaudited Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) Key disclosures include the sale of a business segment, a significant goodwill impairment, debt structure details, and a new stockholder rights plan - The company operates as a **single reportable segment**, Clinical Services, after selling its Enabling Services Segment in Q2 2024, with results now classified as discontinued operations[20](index=20&type=chunk)[21](index=21&type=chunk)[23](index=23&type=chunk) - The company recorded **goodwill impairment charges of $797.9 million** for the first six months of 2025, triggered by sustained declines in its share price and macroeconomic uncertainties[53](index=53&type=chunk)[54](index=54&type=chunk)[57](index=57&type=chunk) - On June 11, 2025, the company adopted a limited duration **stockholder rights plan** (a "poison pill") that is triggered if a person or group acquires 10% or more of outstanding common shares[76](index=76&type=chunk)[78](index=78&type=chunk)[79](index=79&type=chunk) - The company entered into a three-year, **$300.0 million accounts receivable securitization program** on May 6, 2024, and had sold $300.0 million of receivables under this facility as of June 30, 2025[43](index=43&type=chunk)[44](index=44&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=26&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q2 revenue growth, the severe impact of goodwill impairment on profitability, and changes in liquidity and capital resources [Results of Continuing Operations](index=28&type=section&id=Results%20of%20Continuing%20Operations) Q2 2025 revenues grew 7.2%, but a $309.1 million goodwill impairment led to a significant operating loss for the quarter Revenue Growth (Q2 2025 vs Q2 2024) | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Revenues | $710.3M | $662.4M | +7.2% | - Revenue growth was primarily driven by a **6.6% increase in organic revenues**, mainly from the clinical pharmacology business, while clinical development revenue was relatively flat[103](index=103&type=chunk) - Direct costs as a percentage of revenue increased from **79.3% to 81.2%** in Q2 2025, primarily due to higher pass-through costs and stock compensation[105](index=105&type=chunk)[106](index=106&type=chunk) - The company recorded **goodwill impairment charges of $309.1 million** for Q2 2025 and $797.9 million for the six months ended June 30, 2025, specific to the Clinical Development reporting unit[113](index=113&type=chunk) [Liquidity, Capital Resources and Financial Position](index=31&type=section&id=Liquidity%2C%20Capital%20Resources%20and%20Financial%20Position) Operating cash flow turned negative in H1 2025, with the company utilizing credit and receivables securitization facilities for liquidity Cash Flow Summary (Six Months Ended June 30) | Metric (in millions) | 2025 | 2024 | | :--- | :--- | :--- | | Net cash from operating activities | $(102.4) | $248.1 | | Net cash from investing activities | $8.6 | $256.2 | | Net cash from financing activities | $49.4 | $(482.7) | - The company entered into a three-year **$300.0 million accounts receivable securitization program** in May 2024 and had sold $300.0 million of receivables as of June 30, 2025[122](index=122&type=chunk) - As of June 30, 2025, the company had **$50.0 million outstanding** on its revolving credit facility, with **$400.0 million available** for borrowing[121](index=121&type=chunk) [Critical Accounting Policies and Estimates - Goodwill](index=33&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates%20-%20Goodwill) Declining share price and macroeconomic factors triggered interim goodwill impairment tests, resulting in significant charges in Q1 and Q2 2025 - **Sustained declines in share price** and macroeconomic uncertainties were identified as impairment indicators, triggering interim goodwill impairment tests in Q1 and Q2 2025[134](index=134&type=chunk) - Quantitative assessments led to **goodwill impairment charges of $488.8 million** as of March 31, 2025, and **$309.1 million** as of June 30, 2025, for the Clinical Development reporting unit[135](index=135&type=chunk) - Management warns that **further sustained declines in share price** or other impairment indicators could result in additional impairment charges in future periods[138](index=138&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=35&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces market risks from foreign currency exchange rates and interest rates on its variable-rate debt - A hypothetical **10% change in average foreign exchange rates** would have impacted operating loss by approximately **$0.8 million** for the six months ended June 30, 2025[141](index=141&type=chunk) - The company has **$622.0 million in outstanding variable-rate debt** as of June 30, 2025; a hypothetical 1% increase in interest rates would increase annual interest expense by **$6.2 million**[144](index=144&type=chunk) [Controls and Procedures](index=36&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective, with no material changes to internal controls during the quarter - The CEO and CFO concluded that as of June 30, 2025, the company's **disclosure controls and procedures were effective**[146](index=146&type=chunk) - There were **no changes in internal control over financial reporting** during the quarter ended June 30, 2025, that materially affected, or are reasonably likely to materially affect, internal controls[147](index=147&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=36&type=section&id=Item%201.%20Legal%20Proceedings) The company is facing a shareholder class action lawsuit alleging securities law violations, which it intends to defend vigorously - A **shareholder class action complaint**, Lucas Deslande v. Fortrea Holdings Inc., et al., was filed on June 2, 2025, in the U.S. District Court for the Southern District of New York[70](index=70&type=chunk) - The lawsuit alleges omissions and misrepresentations to investors; the company is currently **unable to estimate the possible loss** or range of loss[70](index=70&type=chunk) [Risk Factors](index=36&type=section&id=Item%201A.%20Risk%20Factors) Updated risk factors include potential impacts from trade policies and the anti-takeover effects of the new stockholder rights plan - The company identifies risks from changes in U.S. and foreign government policies, including **tariffs, sanctions, and trade restrictions**, which could increase costs and disrupt supply chains[151](index=151&type=chunk)[152](index=152&type=chunk) - The **stockholder rights plan** adopted in June 2025 is identified as a risk factor that could make a takeover more difficult and potentially reduce the market value of the common stock[155](index=155&type=chunk)[156](index=156&type=chunk) [Other Information](index=38&type=section&id=Item%205.%20Other%20Information) This section details the employment inducement awards granted to the incoming CEO and notes no new Rule 10b5-1 plans by insiders - The company granted **inducement awards to incoming CEO Anshul Thakral**, consisting of **1,250,000 restricted stock units (RSUs)** and **1,250,000 performance share units (PSUs)**[158](index=158&type=chunk) [Exhibits](index=38&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including agreements, compensation plans, and required certifications

Financial Data and Key Metrics Changes - Fortria reported revenue of $710.3 million for Q2 2025, representing a 7.2% increase year-over-year, driven primarily by growth in the clinical pharmacology unit [7][23] - Adjusted EBITDA for the quarter was $54.9 million, relatively flat compared to $55.2 million in the prior year period [27] - The net loss for Q2 2025 was $374.9 million, compared to a net loss of $99.3 million in the prior year, primarily due to a noncash goodwill impairment charge of $309.1 million [28] - Adjusted net income was $17.6 million, compared to an adjusted net loss of $2.3 million in the prior year [28] Business Line Data and Key Metrics Changes - Clinical pharmacology revenue saw significant growth, while clinical development revenue remained relatively flat due to offsetting factors [23] - The backlog as of June 30, 2025, stood at $7.5 billion, with a book-to-bill ratio of 0.79x for the quarter [8] - The company achieved a 20.1% reduction in SG&A expenses year-over-year, primarily due to lower TSA and IT-related costs [24] Market Data and Key Metrics Changes - The volume of RFP opportunities remained high, although there was customer hesitancy primarily among new biotech clients during the CEO transition [8][9] - Win rates for existing large pharma and biotech customers remained consistent, but declined for new biotech customers [9][62] Company Strategy and Development Direction - Fortria is focusing on margin optimization initiatives, with a target of $150 million in gross savings for 2025, of which one-third has been achieved in the first half [10][38] - The company plans to enhance its commercial coverage of biotech and is launching a dedicated sales team for FSP work [35][36] - The leadership transition is expected to stabilize customer relationships and improve win rates in the biotech sector [44][115] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the demand environment in pharma and biotech, noting an upward trend in pipelines [53] - The company anticipates continued positive cash flow for the remainder of 2025, driven by lower cash outlays for restructuring and improved working capital [32] - Management reaffirmed its revenue guidance for 2025, increasing the target range to $2.6 billion to $2.7 billion while maintaining the adjusted EBITDA outlook [38] Other Important Information - The effective tax rate for continuing operations was negative 1.1%, impacted by a goodwill impairment and other factors [27] - The company has ample liquidity with $400 million available on its revolver and over $80 million in cash on hand [32] Q&A Session Summary Question: Inquiry about hesitant biotech clients - Management indicated that some new biotech clients chose to go in a different direction due to leadership uncertainty, but they expect this to be a short transition period [44][45] Question: Demand environment in pharma and biotech - Management is cautiously optimistic, noting an upward trend in RFPs and pipelines, with a strong biotech pipeline being a positive factor [53][54] Question: Cancellations and win rates - Cancellations remained in line with historical trends, and win rates for existing large pharma customers were consistent, though new biotech customer win rates declined [61][62] Question: Pricing environment and margin outlook - The pricing environment is competitive, but management believes they are handling it well and expects to see benefits from cost-saving initiatives in the future [65][66] Question: Guidance for the second half of the year - Management expects revenue to moderate in the second half, aligning more with Q1 levels, but with improved margins due to ongoing cost-saving measures [80][81]

Core Viewpoint - Fortrea Holdings Inc. reported quarterly earnings of $0.19 per share, significantly exceeding the Zacks Consensus Estimate of $0.06 per share, and showing a turnaround from a loss of $0.03 per share a year ago, indicating strong performance in the latest quarter [1][2] Financial Performance - The company achieved revenues of $710.3 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 12.60% and reflecting an increase from $662.4 million in the same quarter last year [2] - Over the last four quarters, Fortrea has exceeded consensus EPS estimates two times and topped revenue estimates three times [2] Stock Performance - Fortrea Holdings Inc. shares have declined approximately 64.8% since the beginning of the year, contrasting with the S&P 500's gain of 7.1% [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it is expected to perform in line with the market in the near future [6] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.14 on revenues of $607.87 million, while for the current fiscal year, the estimate is $0.42 on revenues of $2.5 billion [7] - The outlook for the Medical - Biomedical and Genetics industry, where Fortrea operates, is currently in the bottom 42% of over 250 Zacks industries, which may impact stock performance [8]

Q2 2025 Earnings Presentation 08.06.2025 Learn more at fortrea.com. ©2025 Fortrea Inc. All rights reserved. Fortrea Q2'2025 Earnings presentation FORWARD-LOOKING STATEMENTS & NON-GAAP FINANCIAL MEASURES Forward-Looking Statements Disclosure. Certain information in this presentation contains "forward-looking" statements. You should not place undue reliance on these statements. Forward-looking statements include information concerning our possible or assumed future results of operations, including description ...

[Highlights and Management Commentary](index=1&type=section&id=Highlights%20and%20Management%20Commentary) Fortrea appointed Anshul Thakral as CEO, completed its spin-related transition, and reported sound Q2 fundamentals - Anshul Thakral joined Fortrea as CEO on August 4, 2025, succeeding the Interim CEO[4](index=4&type=chunk) - The company stated that the demands of the spin-related transition are now complete, allowing for a full focus on future value creation[4](index=4&type=chunk) Q2 2025 Key Highlights | Metric | Value | | :--- | :--- | | Revenues ($ millions) | $710.3 | | GAAP Net Loss ($ millions) | $(374.9) | | Adjusted EBITDA ($ millions) | $54.9 | | GAAP Diluted EPS ($) | $(4.14) | | Adjusted Diluted EPS ($) | $0.19 | | Book-to-bill (Quarter) | 0.79x | | Book-to-bill (TTM) | 1.10x | [Financial Performance](index=1&type=section&id=Financial%20Performance) Fortrea reported Q2 and H1 2025 revenue growth, with GAAP results impacted by goodwill impairment, while adjusted metrics improved [Second Quarter 2025 Results](index=1&type=section&id=Second%20Quarter%202025%20Results) Q2 2025 revenue increased to **$710.3 million**, but a **$(374.9) million** GAAP net loss resulted from goodwill impairment, with adjusted net income improving Q2 2025 vs Q2 2024 Financial Results | Metric | Q2 2025 ($ millions) | Q2 2024 ($ millions) | | :--- | :--- | :--- | | Revenue | $710.3 | $662.4 | | GAAP Net Loss | $(374.9) | $(99.3) | | GAAP Diluted Loss per Share ($) | $(4.14) | $(1.11) | | Adjusted Net Income (Loss) | $17.6 | $(2.3) | | Adjusted Diluted Income (Loss) per Share ($) | $0.19 | $(0.03) | | Adjusted EBITDA | $54.9 | $55.2 | - The Q2 GAAP net loss included a significant non-cash goodwill impairment charge of **$309.1 million**, which impacted diluted loss per share by **$(3.41)**[7](index=7&type=chunk) [First Half 2025 Results](index=2&type=section&id=First%20Half%202025%20Results) H1 2025 revenue grew to **$1,361.6 million**, but a substantial **$(937.8) million** GAAP net loss was recorded due to goodwill impairment, with adjusted net income improving H1 2025 vs H1 2024 Financial Results | Metric | H1 2025 ($ millions) | H1 2024 ($ millions) | | :--- | :--- | :--- | | Revenue | $1,361.6 | $1,324.5 | | GAAP Net Loss | $(937.8) | $(179.1) | | GAAP Diluted Loss per Share ($) | $(10.37) | $(2.01) | | Adjusted Net Income (Loss) | $19.5 | $(7.2) | | Adjusted Diluted Income (Loss) per Share ($) | $0.21 | $(0.08) | | Adjusted EBITDA | $85.2 | $82.3 | - The goodwill impairments recorded during the year were primarily a result of declines in the Company's share price and a market-driven increase in the discount rate[12](index=12&type=chunk) [Backlog and Book-to-Bill](index=2&type=section&id=Backlog%20and%20Book-to-Bill) Fortrea's backlog was **$7,547 million** as of June 30, 2025, with a Q2 book-to-bill ratio of **0.79x** and a trailing twelve-month ratio of **1.10x** - Backlog was **$7,547 million** as of June 30, 2025[9](index=9&type=chunk) - The book-to-bill ratio was **0.79x** for the second quarter and **1.10x** for the trailing 12 months[8](index=8&type=chunk)[9](index=9&type=chunk) [Full-Year 2025 Guidance](index=2&type=section&id=Full-Year%202025%20Guidance) Fortrea raised its full-year 2025 revenue guidance while affirming its adjusted EBITDA forecast, indicating higher expected revenues with maintained profitability Full-Year 2025 Guidance | Metric | Guidance Range ($ millions) | | :--- | :--- | | Revenue | $2,600 to $2,700 | | Adjusted EBITDA | $170 to $200 | - The revenue guidance was increased, while the adjusted EBITDA guidance was affirmed[13](index=13&type=chunk) [Financial Statements](index=5&type=section&id=Financial%20Statements) The consolidated financial statements reflect significant GAAP net losses from goodwill impairments, reduced assets and equity, and a shift to cash used in operations for H1 2025 [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q2 2025 operating loss widened to **$(330.3) million** due to a **$309.1 million** goodwill impairment, resulting in a **$(374.9) million** loss from continuing operations Q2 2025 Statement of Operations Highlights | Line Item | Q2 2025 ($ millions) | Q2 2024 ($ millions) | | :--- | :--- | :--- | | Revenues | $710.3 | $662.4 | | Total costs and expenses | $1,040.6 | $713.3 | | Goodwill and other asset impairments | $309.1 | $— | | Operating loss | $(330.3) | $(50.9) | | Loss from continuing operations | $(374.9) | $(99.3) | [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2025, total assets decreased to **$2,835.1 million** from **$3,579.2 million** due to a goodwill reduction, leading to a sharp decline in total equity Balance Sheet Highlights | Line Item | June 30, 2025 ($ millions) | Dec 31, 2024 ($ millions) | | :--- | :--- | :--- | | Cash and cash equivalents | $81.2 | $118.5 | | Goodwill, net | $965.2 | $1,710.4 | | Total assets | $2,835.1 | $3,579.2 | | Total liabilities | $2,245.9 | $2,216.8 | | Total equity | $589.2 | $1,362.4 | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash used for operating activities was **$(102.4) million** for H1 2025, a reversal from the prior year, primarily due to net loss partially offset by non-cash charges Six Months Ended June 30 Cash Flow Highlights | Line Item | 2025 ($ millions) | 2024 ($ millions) | | :--- | :--- | :--- | | Net cash (used for) provided by operating activities | $(102.4) | $248.1 | | Net cash provided by investing activities | $8.6 | $256.2 | | Net cash provided by (used for) financing activities | $49.4 | $(482.7) | | Net change in cash and cash equivalents | $(37.3) | $17.6 | | Cash and cash equivalents at end of period | $81.2 | $126.2 | [Non-GAAP Financial Measures and Reconciliations](index=3&type=section&id=Non-GAAP%20Financial%20Measures%20and%20Reconciliations) This section reconciles GAAP to non-GAAP measures like Adjusted EBITDA and Net Income, explaining their use to reflect underlying business performance by excluding non-recurring or non-cash items [Explanation of Non-GAAP Measures](index=3&type=section&id=Explanation%20of%20Non-GAAP%20Measures) Fortrea uses non-GAAP measures like Adjusted EBITDA and Net Income to provide a more meaningful view of core operating performance by excluding non-recurring and non-cash items - The company uses non-GAAP measures to focus on what it considers a more meaningful indicator of underlying operating performance[19](index=19&type=chunk) - Non-GAAP measures should not be considered in isolation or as a substitute for GAAP results[18](index=18&type=chunk)[22](index=22&type=chunk) [Net Income to Adjusted EBITDA Reconciliation](index=8&type=section&id=Net%20Income%20to%20Adjusted%20EBITDA%20Reconciliation) Q2 2025 GAAP net loss of **$(374.9) million** was adjusted for a **$309.1 million** goodwill impairment to yield an Adjusted EBITDA of **$54.9 million**, similar to Q2 2024 Q2 Adjusted EBITDA Reconciliation | Line Item | Q2 2025 ($ millions) | Q2 2024 ($ millions) | | :--- | :--- | :--- | | Net loss from continuing operations | $(374.9) | $(99.3) | | Goodwill and other asset impairments | $309.1 | $— | | One-time spin-related costs | $10.4 | $53.9 | | Other adjustments | $63.3 | $45.4 | | **Adjusted EBITDA ($ millions)** | **$54.9** | **$55.2** | [Net Income to Adjusted Net Income Reconciliation](index=9&type=section&id=Net%20Income%20to%20Adjusted%20Net%20Income%20Reconciliation) The Q2 2025 GAAP net loss of **$(374.9) million** was reconciled to an Adjusted Net Income of **$17.6 million**, primarily by excluding the **$309.1 million** goodwill impairment Q2 Adjusted Net Income Reconciliation | Line Item | Q2 2025 ($ millions) | Q2 2024 ($ millions) | | :--- | :--- | :--- | | Net loss from continuing operations | $(374.9) | $(99.3) | | Goodwill and other asset impairments | $309.1 | $— | | One-time spin-related costs | $10.4 | $53.9 | | Other adjustments | $77.8 | $47.8 | | **Adjusted net income (loss) ($ millions)** | **$17.6** | **$(2.3)** | [Free Cash Flow Reconciliation](index=11&type=section&id=Free%20Cash%20Flow%20Reconciliation) Fortrea's Free Cash Flow for the six months ended June 30, 2025, was negative **$(112.8) million**, derived from net cash used for operating activities and capital expenditures Free Cash Flow for Six Months Ended June 30, 2025 | Line Item | Amount ($ millions) | | :--- | :--- | | Net cash used for operating activities | $(102.4) | | Capital expenditures | $(10.4) | | **Free cash flow ($ millions)** | **$(112.8)** |

Core Insights - Fortrea reported a revenue of $710.3 million for Q2 2025, an increase from $662.4 million in Q2 2024, indicating a year-over-year growth of approximately 7.5% [4][21] - The company experienced a GAAP net loss of $(374.9) million in Q2 2025, which included a non-cash goodwill impairment charge of $309.1 million, compared to a net loss of $(99.3) million in Q2 2024 [5][21] - Adjusted net income for Q2 2025 was $17.6 million, with diluted earnings per share of $0.19, contrasting with an adjusted net loss of $(2.3) million and a diluted loss per share of $(0.03) in Q2 2024 [5][34] - The backlog as of June 30, 2025, was $7,547 million, with a book-to-bill ratio of 0.79x for the quarter [6][9] - The company raised its revenue guidance for the full year 2025 to a range of $2,600 million to $2,700 million, while affirming adjusted EBITDA guidance between $170 million and $200 million [11][9] Financial Performance - For the first half of 2025, Fortrea reported revenues of $1,361.6 million, up from $1,324.5 million in the first half of 2024 [7][21] - The GAAP net loss for the first half of 2025 was $(937.8) million, which included a non-cash goodwill impairment charge of $797.9 million, compared to a net loss of $(179.1) million in the first half of 2024 [8][21] - Adjusted EBITDA for Q2 2025 was $54.9 million, slightly down from $55.2 million in Q2 2024 [5][29] Leadership Transition - Anshul Thakral joined Fortrea as CEO on August 4, 2025, succeeding Interim CEO Peter M. Neupert, who remains chairman of the Board [2][3] - Thakral expressed confidence in the company's position to assist customers in navigating the development landscape and emphasized the value of the company's team and operational excellence [3][2] Operational Highlights - The company is on track with cost-saving initiatives, which are expected to enhance operational efficiency [9] - Fortrea's leadership is focused on creating value for customers, employees, and shareholders, as stated by CFO Jill McConnell [2][3]

Core Insights - Fortrea has appointed Tracy Krumme as the new senior vice president of investor relations, succeeding Hima Inguva, who is leaving for other career opportunities [1][2] - Krumme brings over 30 years of experience in investor relations and capital markets, with a strong background in the CRO, life sciences, and healthcare sectors [2][3] - The company aims to enhance its investor relations strategy and communicate its vision and value proposition effectively to the investment community [3] Company Overview - Fortrea is a leading global contract research organization (CRO) that provides clinical development solutions to the life sciences industry [3] - The company partners with biopharmaceutical, biotechnology, medical device, and diagnostic companies to accelerate healthcare innovation and deliver life-changing therapies [3] - Fortrea offers services including phase I-IV clinical trial management, clinical pharmacology, and consulting, leveraging three decades of experience across more than 20 therapeutic areas [3]

Core Points - Fortrea has granted employment inducement awards to Anshul Thakral, the newly appointed President and CEO, effective August 4, 2025 [1] - The awards include 1,250,000 performance share units (PSUs) and 1,250,000 restricted stock units (RSUs), with specific vesting conditions [2] - The grants were made under the Company's 2025 Inducement Award Plan and comply with Nasdaq Listing Rules [3] Company Overview - Fortrea is a leading global provider of clinical development solutions for the life sciences industry, partnering with biopharmaceutical, biotechnology, medical device, and diagnostic companies [4] - The company offers phase I-IV clinical trial management, clinical pharmacology, and consulting services, leveraging over 30 years of experience across more than 20 therapeutic areas [4] - Fortrea operates in approximately 100 countries, providing agile solutions to its global customers [4]