[Financial Highlights](index=1&type=section&id=First%20Quarter%202025%20Financial%20Results) Fortrea reported Q1 2025 revenue of $651.3 million, a GAAP net loss of $562.9 million due to goodwill impairment, and increased adjusted EBITDA Q1 2025 Key Financial Metrics | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Revenues ($ millions) | $651.3 | $662.1 | | GAAP Net Loss ($ millions) | $(562.9) | $(79.8) | | Diluted Loss Per Share (GAAP) ($) | $(6.25) | $(0.89) | | Adjusted EBITDA ($ millions) | $30.3 | $27.1 | | Adjusted Diluted EPS ($) | $0.02 | $(0.05) | | Book-to-Bill Ratio | 1.02x | N/A | - The first quarter GAAP net loss included a significant non-cash goodwill impairment charge of **$488.8 million**[6](index=6&type=chunk) - The company's backlog stood at **$7,721 million** as of March 31, 2025[6](index=6&type=chunk) - The trailing 12-month book-to-bill ratio was **1.14x**[9](index=9&type=chunk) [Full Year 2025 Guidance](index=1&type=section&id=Full%20Year%202025%20Guidance) Fortrea reiterates its full-year 2025 guidance, targeting revenues between $2,450 million and $2,550 million and adjusted EBITDA Full Year 2025 Guidance | Metric | Guidance Range | | :--- | :--- | | Revenues ($ millions) | $2,450 - $2,550 | | Adjusted EBITDA ($ millions) | $170 - $200 | - The guidance assumes that foreign currency exchange rates as of December 31, 2024, will remain in effect for the forecast period[7](index=7&type=chunk) [Management Changes](index=1&type=section&id=Other%20Developments) Thomas Pike steps down as Chairman and CEO, with Peter M. Neupert appointed Interim CEO and Board Chair, as a search for a permanent CEO progresses - **Thomas Pike** is stepping down as Chairman and CEO, with **Peter M. Neupert** appointed as **Interim CEO** and **Board Chair**[8](index=8&type=chunk) - A succession planning process is underway, and an executive search for a new CEO is at an advanced stage[8](index=8&type=chunk) - Mr. Pike will continue to serve as a resource to the leadership team through a consulting agreement during the transition[8](index=8&type=chunk) [Financial Statements](index=4&type=section&id=Financial%20Statements) The consolidated financial statements for Q1 2025 reflect a significant net loss driven by goodwill impairment, reduced assets, and increased cash usage [Condensed Consolidated Statements of Operations](index=4&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS) Q1 2025 revenues decreased to $651.3 million, with a $488.8 million goodwill impairment leading to a $562.9 million net loss from continuing operations Q1 2025 vs Q1 2024 Statement of Operations | Line Item | Q1 2025 ($ millions) | Q1 2024 ($ millions) | | :--- | :--- | :--- | | Revenues | $651.3 | $662.1 | | Total costs and expenses | $1,171.4 | $699.5 | | Goodwill and other asset impairments | $488.8 | $— | | Operating loss | $(520.1) | $(37.4) | | Loss from continuing operations | $(562.9) | $(79.8) | | Basic and diluted loss per share ($) | $(6.25) | $(1.13) | [Condensed Consolidated Balance Sheets](index=5&type=section&id=CONDENSED%20CONSOLIDATED%20BALANCE%20SHEETS) Total assets decreased to $3,121.1 million as of March 31, 2025, primarily due to reduced goodwill, resulting in a significant drop in total equity Balance Sheet Comparison | Line Item | March 31, 2025 ($ millions) | December 31, 2024 ($ millions) | | :--- | :--- | :--- | | Total current assets | $970.3 | $948.2 | | Goodwill, net | $1,242.5 | $1,710.4 | | Total assets | $3,121.1 | $3,579.2 | | Total current liabilities | $999.1 | $949.5 | | Total liabilities | $2,262.3 | $2,216.8 | | Total equity | $858.8 | $1,362.4 | [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) Net cash used for operating activities significantly increased to $124.2 million in Q1 2025, leading to a $16.9 million decrease in cash and cash equivalents Q1 2025 vs Q1 2024 Cash Flows | Cash Flow Activity | Q1 2025 ($ millions) | Q1 2024 ($ millions) | | :--- | :--- | :--- | | Net cash used for operating activities | $(124.2) | $(25.6) | | Net cash provided by (used for) investing activities | $16.1 | $(9.2) | | Net cash provided by financing activities | $88.4 | $21.3 | | Net change in cash and cash equivalents | $(16.9) | $(15.8) | | Cash and cash equivalents at end of period | $101.6 | $92.8 | [Reconciliation of Non-GAAP Measures](index=7&type=section&id=RECONCILIATION%20OF%20NON-GAAP%20MEASURES) The company provides reconciliations for non-GAAP measures, including Adjusted EBITDA of $30.3 million and a negative free cash flow of $127.1 million for Q1 2025 - The company uses non-GAAP measures like Adjusted EBITDA and Adjusted Net Income in its operational and financial decision-making to provide a more meaningful indicator of underlying operating performance[14](index=14&type=chunk) [Net Income to Adjusted EBITDA Reconciliation](index=7&type=section&id=NET%20INCOME%20TO%20ADJUSTED%20EBITDA%20RECONCILIATION) Adjusted EBITDA from continuing operations increased to $30.3 million in Q1 2025, reconciled from a GAAP net loss by adding back significant non-cash charges Adjusted EBITDA Reconciliation | Line Item | Q1 2025 ($ millions) | Q1 2024 ($ millions) | | :--- | :--- | :--- | | Net loss from continuing operations | $(562.9) | $(79.8) | | Goodwill and other asset impairments | $488.8 | $— | | Interest expense, net | $22.3 | $34.3 | | Depreciation and amortization | $19.5 | $21.9 | | Stock based compensation | $14.6 | $13.5 | | One-time spin-related costs | $10.0 | $17.0 | | **Adjusted EBITDA from continuing operations** | **$30.3** | **$27.1** | [Net Income to Adjusted Net Income Reconciliation](index=8&type=section&id=NET%20INCOME%20TO%20ADJUSTED%20NET%20INCOME%20RECONCILIATION) Adjusted net income from continuing operations improved to $1.9 million in Q1 2025, resulting in an adjusted diluted EPS of $0.02 after key non-GAAP adjustments Adjusted Net Income Reconciliation | Line Item | Q1 2025 ($ millions) | Q1 2024 ($ millions) | | :--- | :--- | :--- | | Net loss from continuing operations | $(562.9) | $(79.8) | | Goodwill and other asset impairments | $488.8 | $— | | Stock based compensation | $14.6 | $13.5 | | Amortization | $14.5 | $15.3 | | **Adjusted net income (loss) from continuing operations** | **$1.9** | **$(4.9)** | | **Adjusted diluted EPS from continuing operations ($)** | **$0.02** | **$(0.05)** | [Free Cash Flow Reconciliation](index=10&type=section&id=NET%20CASH%20USED%20FOR%20OPERATING%20ACTIVITIES%20TO%20FREE%20CASH%20FLOW%20RECONCILIATION) Free cash flow for Q1 2025 was a negative $127.1 million, primarily due to $124.2 million in net cash used for operating activities Q1 2025 Free Cash Flow | Line Item | Q1 2025 ($ millions) | | :--- | :--- | | Net cash used for operating activities | $(124.2) | | Capital expenditures | $(2.9) | | **Free cash flow** | **$(127.1)** |

Core Insights - Fortrea reported a solid start to 2025 with a focus on disciplined execution of its strategy and improving efficiency to better serve customers [2][4] Financial Performance - Revenue for Q1 2025 was $651.3 million, a decrease from $662.1 million in Q1 2024 [3] - GAAP net loss for Q1 2025 was $562.9 million, with a diluted loss per share of $6.25, which included a non-cash goodwill impairment charge of $488.8 million [4][9] - Adjusted EBITDA for Q1 2025 was $30.3 million, compared to $27.1 million in Q1 2024 [4][9] - The backlog as of March 31, 2025, was $7,721 million, with a book-to-bill ratio of 1.02x for the quarter [4][9] Guidance - The company reiterated its full-year 2025 guidance, targeting revenues between $2,450 million and $2,550 million and adjusted EBITDA between $170 million and $200 million [5] Leadership Changes - Fortrea announced that Peter M. Neupert will serve as Interim CEO and Board Chair as Tom Pike steps down from his role effective May 13, 2025 [6] Cash Flow and Balance Sheet - Net cash used for operating activities in Q1 2025 was $124.2 million, with free cash flow also reported at $(127.1) million [21][37] - Total assets as of March 31, 2025, were $3,121.1 million, down from $3,579.2 million at the end of 2024 [20]

Core Points - Thomas Pike is stepping down as CEO and Chairman of Fortrea, with Peter M. Neupert appointed as Interim CEO and Board Chair starting May 13, 2025 [1][2] - The transition is part of a succession planning process, with an executive search already in advanced stages [1] - Neupert expressed gratitude for Pike's leadership during a challenging period and noted the company's progress towards independence since its spin-off [2] Company Overview - Fortrea is a leading global contract research organization (CRO) that provides clinical development solutions to the life sciences industry [4] - The company partners with biopharmaceutical, biotechnology, medical device, and diagnostic companies to drive healthcare innovation [4] - Fortrea 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]

Company Overview - Oculis Holding AG (OCS) is expected to report a year-over-year decline in earnings with a projected loss of $0.51 per share, reflecting a change of -15.9% compared to the previous year [3] - Revenues are anticipated to remain flat at $0.22 million, unchanged from the year-ago quarter [3] Earnings Expectations - The consensus EPS estimate has been revised 5.01% higher in the last 30 days, indicating a reassessment by analysts [4] - The Most Accurate Estimate for Oculis is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -7.32%, suggesting a bearish outlook on earnings prospects [10][11] Historical Performance - Oculis has not been able to beat consensus EPS estimates in any of the last four quarters, with the last reported quarter showing a surprise of -58.33% [12][13] Market Reaction - The stock may experience upward movement if the actual results exceed expectations, while a miss could lead to a decline [2] - The combination of a negative Earnings ESP and a Zacks Rank of 3 makes it challenging to predict an earnings beat for Oculis [11][16]

Company Overview - Fortrea Holdings Inc. (FTRE) is expected to report a year-over-year decline in earnings, with a projected loss of $0.08 per share, indicating a -100% change compared to the previous year [3] - Revenues for the upcoming quarter are anticipated to be $610.37 million, reflecting a decrease of 7.8% from the same quarter last year [3] Earnings Expectations - The consensus EPS estimate has been revised down by 28.64% over the last 30 days, indicating a reassessment by analysts [4] - The Most Accurate Estimate for Fortrea Holdings is higher than the Zacks Consensus Estimate, resulting in a positive Earnings ESP of +113.10% [10][11] Historical Performance - Fortrea Holdings has not been able to beat consensus EPS estimates in any of the last four quarters, with a notable surprise of -50% in the last reported quarter [12][13] Market Sentiment - The stock may experience upward movement if the actual results exceed expectations in the upcoming earnings report scheduled for May 12 [2] - Conversely, if the results fall short, the stock may decline [2] Industry Comparison - In the Zacks Medical - Biomedical and Genetics industry, Acadia Pharmaceuticals (ACAD) is expected to post earnings of $0.06 per share, representing a -40% year-over-year change, with revenues projected at $241.74 million, up 17.5% from the previous year [17] - Acadia's consensus EPS estimate has been revised down by 0.8% over the last 30 days, but it has a positive Earnings ESP of 17.37%, suggesting a likelihood of beating the consensus EPS estimate [18]

Core Insights - Fortrea has been recognized as a "Leader" in pharmacovigilance operations by Everest Group in its annual Pharmacovigilance Operations PEAK Matrix Assessment 2025, highlighting its strong position in both pre-and post-approval PV operations [1][2] Company Overview - Fortrea is a leading global contract research organization (CRO) that provides clinical development solutions to the life sciences industry, partnering with biopharmaceutical, biotechnology, medical device, and diagnostic companies [4] - The company offers end-to-end safety solutions that cover the entire product lifecycle, from early clinical phases to post-approval [2][3] Industry Context - The pharmacovigilance landscape is evolving with increased therapeutic complexity, regulatory scrutiny, and patient safety expectations, prompting sponsors to seek service providers that offer integrated scientific insights and strategic support [3] - Fortrea's dual-strength capabilities in clinical-stage safety services and robust post-marketing operations distinguish it in the market, supported by a global Qualified Person Responsible for Pharmacovigilance (QPPV) and technology-led innovations [3] Assessment Details - The Everest Group report evaluated 29 PV operations providers, assessing their service focus, solution offerings, and domain investments through a comprehensive RFI process and client reference checks [2] - Fortrea's strengths in scientific depth, scalability, and global reach have been consistently recognized by clients, contributing to its leadership position in the assessment [3]

NEW YORK, April 21, 2025 (GLOBE NEWSWIRE) -- Pomerantz LLP is investigating claims on behalf of investors of Fortrea Holdings Inc. ("Fortrea" or the "Company") (NASDAQ: FTRE). Such investors are advised to contact Danielle Peyton at newaction@pomlaw.com or 646-581-9980, ext. 7980. The investigation concerns whether Fortrea and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices. [Click here for information about joining the class action] On March 3, ...

Company Announcement - Fortrea will release its first quarter 2025 financial results on May 12, 2025, before the market opens [1] - A conference call will be held at 9:00 am ET on the same day to review the financial results and conduct a Q&A session [1] Participation Details - Participants can register for the earnings call online at the Fortrea Investor Relations website and are advised to join at least 10 minutes early to avoid delays [2] - A replay of the conference call will be available shortly after the event on the Fortrea Investor Relations website [2] Company Overview - Fortrea is a leading global provider of clinical development solutions to the life sciences industry, partnering with biopharmaceutical, biotechnology, medical device, and diagnostic companies [3] - 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 [3] - Fortrea operates in about 100 countries, providing focused and agile solutions to its customers globally [3]

NEW YORK, March 25, 2025 (GLOBE NEWSWIRE) -- Bragar Eagel & Squire, P.C., a nationally recognized shareholder rights law firm, is investigating potential claims against Fortrea Holdings Inc. (NASDAQ:FTRE) and Ibotta, Inc. (NYSE:IBTA). Our investigations concern whether these companies have violated the federal securities laws and/or engaged in other unlawful business practices. Additional information about each case can be found at the link provided. Fortrea Holdings Inc. (NASDAQ:FTRE) On March 3, 2025, For ...

NEW YORK, March 18, 2025 (GLOBE NEWSWIRE) -- Bragar Eagel & Squire, P.C., a nationally recognized stockholder rights law firm, is investigating potential claims against Fortrea Holdings Inc. (“Fortrea” or the “Company”) (NASDAQ:FTRE) on behalf of Fortrea stockholders. Our investigation concerns whether Fortrea has violated the federal securities laws and/or engaged in other unlawful business practices. Click here to participate in the action. On March 3, 2025, Fortrea announced its fourth quarter and full y ...