分组1 - TrueBlue reported a quarterly loss of $0.07 per share, significantly better than the Zacks Consensus Estimate of a loss of $0.31, representing an earnings surprise of +77.42% [1] - The company posted revenues of $396.3 million for the quarter ended June 2025, slightly missing the Zacks Consensus Estimate by 0.02%, and showing a year-over-year revenue increase from $396.23 million [2] - TrueBlue has surpassed consensus EPS estimates three times over the last four quarters and topped consensus revenue estimates two times during the same period [2] 分组2 - TrueBlue shares have declined approximately 20.8% since the beginning of the year, contrasting with the S&P 500's gain of 6.1% [3] - The company's earnings outlook will be crucial for future stock performance, with current consensus EPS estimate for the coming quarter at $0.04 on revenues of $385.21 million, and for the current fiscal year at -$0.64 on revenues of $1.53 billion [7] - The Staffing Firms industry, to which TrueBlue belongs, is currently ranked in the bottom 26% of over 250 Zacks industries, indicating potential challenges for stock performance [8]

Financial Data and Key Metrics Changes - Total revenue for the quarter was $396 million, flat compared to the prior year, near the low end of the outlook range, with a four percentage point growth from the acquisition of HSP [17][18] - Gross margin decreased to 23.6%, down 280 basis points, primarily due to changes in revenue mix and certain software depreciation now reported in cost of services [18][19] - Adjusted net loss was $2 million, while adjusted EBITDA was $3 million [20] Business Line Data and Key Metrics Changes - PeopleReady revenue declined by 5%, driven by reduced client volumes across most verticals and geographies, but skilled businesses grew double digits for the quarter [21][22] - PeopleManagement grew for the second consecutive quarter with revenue up 2%, driven by strong results from the commercial drivers business [22][23] - People Solutions revenue grew by 20%, with HSP contributing 40 percentage points of inorganic growth, offsetting a 20% organic decline [23] Market Data and Key Metrics Changes - Improved on-demand trends were noted in California and Florida, indicating growing momentum as the quarter ended [22] - The company is expanding its presence in the energy sector, particularly in renewable energy and skilled labor, with ongoing infrastructure investments fueling demand [12][53] Company Strategy and Development Direction - The company aims to accelerate digital transformation, grow market share in high-growth end markets, and optimize sales functions while maintaining operational excellence [8][9] - A strategic partnership program has been launched to unlock new client acquisition channels and deepen enterprise client relationships [11] - The company has identified high-potential areas for long-term sustainable growth and has strategically invested to position itself ahead of secular tailwinds [10][13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the positive momentum and return to company-wide growth expected in the third quarter, driven by cost actions and strategic focus [15][31] - The outlook for the third quarter anticipates revenue growth of 5% to 11% year-over-year, including four percentage points from the acquisition of HSP [25] Other Important Information - The company has simplified its cost structure, achieving approximately $90 million in permanent SG&A savings from the 2022 base [9] - The company reported a net loss of $200,000 for the quarter, which included a noncash intangible asset impairment charge [20] Q&A Session Summary Question: Monthly trends and green shoots - Management noted double-digit growth in skilled businesses and signs of stabilization, with PeopleReady seeing low single-digit weekly sequential revenue growth throughout the quarter [31][32] Question: Unsolicited buyout offer from HireQuest - The board rejected the offer, focusing on maximizing shareholder value and positioning the company to take advantage of market drivers [34][35] Question: Sustaining revenue growth - Management is encouraged by momentum and stabilization, with clients beginning to experience positive trends [40][41] Question: Pricing competition trends - Pay rates increased by 1.2% and bill rates by 1.8%, leading to a 10 basis points improvement in margin, indicating disciplined pricing strategies [42][43] Question: Renewable energy business outlook - The renewable pipeline remains strong, with multiple new deals signed, and the company is focused on expanding into additional energy end markets [52][53]

Financial Data and Key Metrics Changes - Total revenue for Q2 2025 was $396 million, flat compared to the prior year, near the low end of the outlook range, with a 4% growth contribution from the acquisition of HSP [17][18] - Gross margin decreased to 23.6%, down 280 basis points, primarily due to changes in revenue mix and certain software depreciation now reported in cost of services [18][19] - The company reported a net loss of $200,000 for the quarter, including a noncash intangible asset impairment charge of $200,000 [20] - Adjusted net loss was $2 million, while adjusted EBITDA was $3 million [20] Business Line Data and Key Metrics Changes - PeopleReady revenue declined by 5%, driven by reduced client volumes across most verticals and geographies, but skilled businesses delivered double-digit growth [21][22] - PeopleManagement grew for the second consecutive quarter with revenue up 2%, supported by strong results from the commercial drivers business [22][23] - People Solutions revenue grew by 20%, with HSP contributing 40 percentage points of inorganic growth, offsetting a 20% organic decline [23][24] Market Data and Key Metrics Changes - Improved on-demand trends were noted in California and Florida, indicating growing momentum as the quarter ended [22] - The company is expanding its presence in the energy sector, with ongoing infrastructure investment fueling sustained demand for skilled labor [12][55] Company Strategy and Development Direction - The company is focused on accelerating digital transformation, growing market share in high-growth end markets, and optimizing sales functions to capture demand [8][9] - Strategic partnerships, such as with Omnia Partners, are aimed at unlocking new client acquisition channels and deepening enterprise client relationships [11] - The company has simplified its organizational structure and implemented targeted cost reductions, achieving approximately $90 million in permanent SG&A savings [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the positive momentum and signs of stabilization, expecting a return to company-wide growth in Q3 [15][26] - The outlook for Q3 includes expected revenue growth of 5% to 11% year-over-year, reflecting current market trends [26] Other Important Information - The company has strategically invested to position itself ahead of secular tailwinds while maintaining a strong balance sheet [10][12] - The digital transformation includes embedding AI-powered job matching and predictive analytics to enhance workforce solutions [14][15] Q&A Session Summary Question: Monthly trends and green shoots - Management noted double-digit growth in skilled businesses and signs of stabilization, with a return to company-wide growth expected in Q3 [32][34] Question: Unsolicited buyout offer from HireQuest - The board rejected the offer, focusing on maximizing shareholder value and positioning the company to take advantage of market drivers [36][37] Question: Sustainability of revenue growth - Management is encouraged by momentum and stabilization, with clients beginning to experience positive trends [41][42] Question: Pricing competition trends - Pay rates increased by 1.2% and bill rates by 1.8%, leading to a slight margin improvement despite ongoing pricing pressure [44][45] Question: Renewable energy business performance - The renewable pipeline remains strong, with multiple new deals signed, and the company is focused on expanding into additional energy end markets [55][57]

Financial Performance Overview - Total revenue remained flat at $396 million compared to Q2 2024[5,8] - Organic revenue decreased by 4%[7,8] - Net loss was $0 million, a significant improvement from a net loss of $104.7 million in Q2 2024[5,8] - Adjusted EBITDA increased by 147% to $26 million from $11 million in Q2 2024[7,8] - Gross margin decreased by 3 percentage points due to changes in business mix[7] - SG&A expenses improved by 7% due to disciplined cost management[7] Segment Performance - PeopleReady revenue was $213 million, a decrease of 5%[12] - PeopleManagement revenue was $134 million, an increase of 2%[12] - PeopleSolutions revenue was $49 million, a 20% increase, including $16 million from HSP, but decreased 20% on an organic basis[12] Liquidity and Capital Allocation - The company has a solid liquidity position with $22 million in cash, $54 million in debt, and $79 million of borrowing availability, totaling $101 million in liquidity[7] - Debt was reduced by $4 million, and working capital increased by $14 million[7] Outlook for Q3 2025 - Revenue is projected to be between $400 million and $425 million, representing a 5% to 11% increase compared to the prior year, including a 4 percentage point contribution from the HSP acquisition[18] - SG&A is expected to be between $93 million and $97 million, a decrease of 7% to 3% compared to the prior year[18]

PART I. FINANCIAL INFORMATION This section presents the company's consolidated financial statements, management's discussion, market risk, and internal controls [Item 1. Consolidated Financial Statements](index=3&type=section&id=Item%201.%20Consolidated%20financial%20statements%20(unaudited)) Presents TrueBlue, Inc.'s unaudited consolidated financial statements, including balance sheets, income, cash flows, and notes [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) Total assets decreased to **$672.8 million**, liabilities increased to **$367.6 million**, impacting shareholders' equity Consolidated Balance Sheet Highlights (in thousands) | Account | June 29, 2025 | December 29, 2024 | | :--- | :--- | :--- | | **Total current assets** | $286,854 | $277,093 | | Goodwill | $42,569 | $24,543 | | Intangible assets, net | $19,410 | $5,863 | | **Total assets** | **$672,784** | **$675,376** | | **Total current liabilities** | $148,056 | $160,125 | | Long-term debt | $53,800 | $7,600 | | **Total liabilities** | **$367,592** | **$360,017** | | **Total shareholders' equity** | **$305,192** | **$315,359** | [Consolidated Statements of Operations and Comprehensive Income (Loss)](index=4&type=section&id=Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Income%20(Loss)) Net loss for the quarter was **$0.2 million**, a significant improvement from the prior year's **$104.7 million** loss Consolidated Statement of Operations Highlights (in thousands, except per share data) | Metric | Thirteen Weeks Ended June 29, 2025 | Thirteen Weeks Ended June 30, 2024 | Twenty-six Weeks Ended June 29, 2025 | Twenty-six Weeks Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Revenue from services | $396,299 | $396,230 | $766,553 | $799,083 | | Gross profit | $93,564 | $104,423 | $179,906 | $203,809 | | Income (loss) from operations | $(2,941) | $(59,960) | $(17,064) | $(75,469) | | Net income (loss) | $(160) | $(104,710) | $(14,508) | $(106,408) | | Diluted EPS | $(0.01) | $(3.45) | $(0.49) | $(3.46) | [Consolidated Statements of Cash Flows](index=5&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash used in operations increased to **$33.9 million**, with financing providing **$45.1 million** for the HSP acquisition Cash Flow Summary (in thousands) | Cash Flow Activity | Twenty-six weeks ended June 29, 2025 | Twenty-six weeks ended June 30, 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(33,909) | $(16,062) | | Net cash used in investing activities | $(19,791) | $(5,311) | | Net cash provided by (used in) financing activities | $45,118 | $(20,519) | | **Net change in cash, cash equivalents and restricted cash** | **$(8,652)** | **$(42,449)** | [Notes to Consolidated Financial Statements](index=6&type=section&id=Notes%20to%20consolidated%20financial%20statements) Notes detail accounting policies, the HSP acquisition, asset impairment, debt, and a shareholder rights agreement - Acquired Healthcare Staffing Professionals (HSP) for cash consideration of **$35.2 million**, adding **$17.5 million** in goodwill[35](index=35&type=chunk)[36](index=36&type=chunk)[38](index=38&type=chunk) - Recorded a **$0.2 million** impairment charge on the SMX trademark during the annual impairment test in the second quarter of 2025[28](index=28&type=chunk)[46](index=46&type=chunk)[66](index=66&type=chunk) - Adopted a limited duration shareholder rights agreement on May 14, 2025, set to expire on May 13, 2026, unless extended or terminated earlier[90](index=90&type=chunk)[92](index=92&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=25&type=section&id=Item%202.%20Management's%20discussion%20and%20analysis%20of%20financial%20condition%20and%20results%20of%20operations) Management discusses Q2 2025 financial performance, segment results, cost management, liquidity, and Q3 2025 outlook [Business Overview and Q2 2025 Summary](index=25&type=section&id=Business%20Overview%20and%20Q2%202025%20Summary) Q2 2025 revenue was flat at **$396.3 million**, gross margin declined to **23.6%**, and net loss improved to **$0.2 million** - The company's business strategy focuses on accelerating digital transformation, expanding in high-growth markets, optimizing sales, and maintaining operational excellence[110](index=110&type=chunk) Q2 2025 Financial Highlights vs. Q2 2024 | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Total Revenue | $396.3M | $396.2M | | Gross Profit % | 23.6% | 26.4% | | SG&A Expense | $89.8M | $97.0M | | Net Loss | $(0.2)M | $(104.7)M | [Results of Operations](index=27&type=section&id=Results%20of%20Operations) Total revenue was flat, gross margin contracted by **280 basis points**, and SG&A expense decreased by **7.4%** Revenue by Segment - Q2 2025 vs Q2 2024 (in thousands) | Segment | Q2 2025 Revenue | Q2 2024 Revenue | Growth (Decline) % | | :--- | :--- | :--- | :--- | | PeopleReady | $213,226 | $223,409 | (4.6)% | | PeopleManagement | $133,895 | $131,751 | 1.6% | | PeopleSolutions | $49,178 | $41,070 | 19.7% | | **Total Company** | **$396,299** | **$396,230** | **0.0%** | - Gross profit margin declined by **280 basis points**, primarily due to a **250 basis point** contraction from revenue mix shifts toward lower-margin staffing businesses[125](index=125&type=chunk) - SG&A expense improved by **$7.2 million (7.4%)** due to operational cost management actions, resulting in a leaner cost structure[127](index=127&type=chunk) [Future Outlook](index=31&type=section&id=Future%20Outlook) Q3 2025 revenue is projected to grow **5-11%**, with gross margin declining and SG&A between **$93 million and $97 million** - Q3 2025 revenue growth is expected to be between **5% and 11% YoY**, including **~4%** inorganic growth from the HSP acquisition[140](index=140&type=chunk) - Q3 2025 gross profit as a percentage of revenue is expected to decline between **240 and 280 basis points YoY**[140](index=140&type=chunk) - Anticipated SG&A expense for Q3 2025 is projected to be between **$93 million and $97 million**[140](index=140&type=chunk) [Liquidity and Capital Resources](index=32&type=section&id=Liquidity%20and%20Capital%20Resources) Total liquidity was **$100.9 million**, with cash used in operations and investing offset by financing activities - As of June 29, 2025, the company had **$21.9 million** in cash, **$53.8 million** in debt, and **$79.0 million** available for borrowing, for a total liquidity of **$100.9 million**[119](index=119&type=chunk)[141](index=141&type=chunk) - The primary use of cash for investing activities in the first half of 2025 was the acquisition of HSP[151](index=151&type=chunk) - Draws on the Revolving Credit Facility were primarily used to fund the HSP acquisition and finance working capital needs[153](index=153&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=36&type=section&id=Item%203.%20Quantitative%20and%20qualitative%20disclosures%20about%20market%20risk) No material changes to market risk disclosures have occurred since the last annual report - There have been no material changes in market risk disclosures since the last annual report[170](index=170&type=chunk) [Item 4. Controls and Procedures](index=37&type=section&id=Item%204.%20Controls%20and%20procedures) Management concluded disclosure controls were effective, with no material changes to internal control over financial reporting - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of the end of the quarter[172](index=172&type=chunk) - No material changes were made to the company's internal control over financial reporting during the most recent fiscal quarter[173](index=173&type=chunk) PART II. OTHER INFORMATION This section covers legal proceedings, risk factors, equity sales, other information, and an index to exhibits [Item 1. Legal Proceedings](index=38&type=section&id=Item%201.%20Legal%20proceedings) The company believes liabilities from legal proceedings are immaterial and have been appropriately accrued - The company believes that liabilities from legal proceedings are immaterial and that the range of reasonably possible losses in excess of amounts accrued is also expected to be immaterial[86](index=86&type=chunk) [Item 1A. Risk Factors](index=38&type=section&id=Item%201A.%20Risk%20factors) Updated risk factors include economic dependency, acquisition impacts, the shareholder rights plan, and unsolicited proposals - Demand for workforce solutions is highly dependent on the state of the economy, and a deterioration in economic conditions could negatively impact the business[179](index=179&type=chunk)[180](index=180&type=chunk) - The shareholder rights plan adopted on May 14, 2025, has anti-takeover effects and could discourage transactions that shareholders may consider favorable[186](index=186&type=chunk)[189](index=189&type=chunk) - The company has been subject to unsolicited acquisition proposals, such as the one from HireQuest, Inc. on May 13, 2025, which can cause significant expense and business disruption[191](index=191&type=chunk)[192](index=192&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=40&type=section&id=Item%202.%20Unregistered%20sales%20of%20equity%20securities%20and%20use%20of%20proceeds) No shares were repurchased under the public program, with **$33.5 million** remaining available for future repurchases - No shares were repurchased under the publicly announced plan during the quarter[193](index=193&type=chunk) - **$33.5 million** remains available for repurchase under the company's share repurchase program as of June 29, 2025[195](index=195&type=chunk) [Item 5. Other Information](index=42&type=section&id=Item%205.%20Other%20information) No directors or executive officers adopted or terminated Rule 10b5-1 trading plans during the second fiscal quarter - No directors or executive officers adopted or terminated Rule 10b5-1 trading plans during the second quarter of 2025[198](index=198&type=chunk) [Item 6. Index to Exhibits](index=43&type=section&id=Item%206.%20Index%20to%20exhibits) This section provides an index of all exhibits filed as part of the Form 10-Q report

[Financial Highlights and Management Commentary](index=1&type=section&id=Financial%20Highlights%20and%20Management%20Commentary) TrueBlue reported flat Q2 2025 revenue of $396 million, significantly reducing net loss to $0.01 per share, with management anticipating Q3 growth and focusing on strategic priorities - Management is encouraged by momentum in skilled businesses and anticipates a return to company-wide growth in **Q3 2025**[4](index=4&type=chunk) - Strategic priorities include capturing **market share**, enhancing **operational efficiency**, maximizing **long-term profitability**, and investing in **proprietary technologies**[4](index=4&type=chunk) Q2 2025 Key Financial Results | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Revenue | $396 million | $396 million | Flat | | Net Loss per Diluted Share | $0.01 | $3.45 | Improved | | Adjusted Net Loss per Diluted Share | $0.07 | $0.35 | Improved | Q2 2025 Additional Highlights | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | SG&A Expense | $90 million | $97 million | -7% | | Adjusted EBITDA | $3 million | $1 million | +200% | | Total Liquidity (at period end) | $101 million | N/A | N/A | [Consolidated Financial Statements](index=4&type=section&id=Consolidated%20Financial%20Statements) The unaudited consolidated financial statements for Q2 2025 detail a significant reduction in net loss, stable total assets with increased long-term debt, and cash flow movements across operations, investing, and financing [Statements of Operations](index=4&type=section&id=Summary%20Consolidated%20Statements%20of%20Operations) For the 13 weeks ended June 29, 2025, revenue remained flat at $396.3 million, while gross profit declined, and net loss significantly improved to $0.2 million from $104.7 million in the prior year due to reduced impairment charges Q2 Statements of Operations Highlights (in thousands) | Metric | 13 weeks ended Jun 29, 2025 | 13 weeks ended Jun 30, 2024 | | :--- | :--- | :--- | | Revenue from services | $396,299 | $396,230 | | Gross profit | $93,564 | $104,423 | | Goodwill and intangible asset impairment charge | $200 | $59,674 | | Loss from operations | $(2,941) | $(59,960) | | Net loss | $(160) | $(104,710) | | Diluted net loss per share | $(0.01) | $(3.45) | [Balance Sheets](index=5&type=section&id=Summary%20Consolidated%20Balance%20Sheets) As of June 29, 2025, total assets slightly decreased to $672.8 million, with cash at $21.9 million, while total liabilities increased to $367.6 million, primarily due to a significant rise in long-term debt to $53.8 million Balance Sheet Highlights (in thousands) | Metric | Jun 29, 2025 | Dec 29, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $21,899 | $22,536 | | Total current assets | $286,854 | $277,093 | | Total assets | $672,784 | $675,376 | | Long-term debt, less current portion | $53,800 | $7,600 | | Total liabilities | $367,592 | $360,017 | | Shareholders' equity | $305,192 | $315,359 | [Statements of Cash Flows](index=6&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For the first 26 weeks of 2025, net cash used in operating activities increased to $33.9 million, investing activities used $19.8 million (due to acquisition), and financing activities provided $45.1 million from credit facilities Cash Flow Summary - 26 Weeks Ended (in thousands) | Cash Flow Activity | Jun 29, 2025 | Jun 30, 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(33,909) | $(16,062) | | Net cash used in investing activities | $(19,791) | $(5,311) | | Net cash provided by (used in) financing activities | $45,118 | $(20,519) | [Segment Performance](index=7&type=section&id=Segment%20Data) Q2 2025 saw flat overall revenue with mixed segment performance, as PeopleManagement and PeopleSolutions grew, while PeopleReady declined, leading to a 13.1% increase in total segment profit Q2 Revenue from Services by Segment (in thousands) | Segment | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | PeopleReady | $213,226 | $223,409 | -4.6% | | PeopleManagement | $133,895 | $131,751 | +1.6% | | PeopleSolutions | $49,178 | $41,070 | +19.7% | | **Total company** | **$396,299** | **$396,230** | **~0%** | Q2 Segment Profit (in thousands) | Segment | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | PeopleReady | $1,530 | $394 | +288.3% | | PeopleManagement | $4,101 | $3,395 | +20.8% | | PeopleSolutions | $2,534 | $3,430 | -26.1% | | **Total segment profit** | **$8,165** | **$7,219** | **+13.1%** | - The PeopleSolutions segment now includes **Healthcare Staffing Professionals Inc.**, which was acquired on **January 31, 2025**[20](index=20&type=chunk) [Non-GAAP Financial Measures and Reconciliations](index=9&type=section&id=Non-GAAP%20Financial%20Measures%20and%20Reconciliations) This section defines and reconciles non-GAAP financial measures, including Adjusted Net Loss, Adjusted EBITDA, and Adjusted SG&A, providing a clearer view of underlying operational performance for Q2 2025 - The company uses **non-GAAP measures** such as **Adjusted Net Loss**, **Adjusted EBITDA**, and **Adjusted SG&A** to enhance **comparability** and provide insight into underlying business trends[21](index=21&type=chunk)[22](index=22&type=chunk) [Reconciliation of Net Loss to Adjusted Net Loss](index=10&type=section&id=Reconciliation%20of%20U.S.%20GAAP%20Net%20Loss%20to%20Adjusted%20Net%20Loss) For Q2 2025, GAAP net loss of $0.2 million adjusted to a non-GAAP net loss of $2.2 million ($0.07 per share), a significant improvement from Q2 2024's adjusted net loss of $10.7 million ($0.35 per share), primarily due to reduced impairment charges and other adjustments Reconciliation to Adjusted Net Loss (in thousands) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net loss (GAAP) | $(160) | $(104,710) | | Goodwill and intangible asset impairment charge | $200 | $59,674 | | COVID-19 government subsidies, net | $(8,573) | $(9,696) | | **Adjusted net loss (Non-GAAP)** | **$(2,167)** | **$(10,690)** | | **Adjusted net loss per diluted share** | **$(0.07)** | **$(0.35)** | [Reconciliation of Net Loss to EBITDA and Adjusted EBITDA](index=10&type=section&id=Reconciliation%20of%20U.S.%20GAAP%20Net%20Loss%20to%20EBITDA%20and%20Adjusted%20EBITDA) Adjusted EBITDA for Q2 2025 increased to $2.6 million (0.7% of revenue) from $1.1 million (0.3% of revenue) in Q2 2024, after adjustments from GAAP net loss for taxes, interest, D&A, impairment, and other items Reconciliation to Adjusted EBITDA (in thousands) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net loss (GAAP) | $(160) | $(104,710) | | EBITDA | $4,561 | $(52,269) | | **Adjusted EBITDA (Non-GAAP)** | **$2,645** | **$1,069** | | Adjusted EBITDA Margin | 0.7% | 0.3% | [Reconciliation of SG&A to Adjusted SG&A](index=11&type=section&id=Reconciliation%20of%20U.S.%20GAAP%20Selling,%20General%20and%20Administrative%20Expense%20to%20Adjusted%20SG%26A%20Expense) GAAP SG&A expense decreased to $89.8 million (22.7% of revenue) in Q2 2025 from $97.0 million (24.5% of revenue) in the prior year, with Adjusted SG&A also decreasing to $88.9 million (22.4% of revenue) Reconciliation to Adjusted SG&A (in thousands) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | SG&A expense (GAAP) | $89,798 | $97,018 | | **Adjusted SG&A expense (Non-GAAP)** | **$88,853** | **$100,632** | | SG&A as % of revenue | 22.7% | 24.5% | | Adjusted SG&A as % of revenue | 22.4% | 25.4% | [Forward-Looking Statements and Disclaimers](index=3&type=section&id=Forward-looking%20statements%20and%20non-GAAP%20financial%20measures) This section outlines risks and uncertainties for forward-looking statements, including economic conditions and regulatory changes, and clarifies the use of non-GAAP financial measures to supplement GAAP results - The report contains **forward-looking statements** regarding future performance and operations, which are subject to significant risks and uncertainties such as **economic conditions**, **client retention**, and **regulatory changes**[9](index=9&type=chunk) - The company utilizes **non-GAAP financial measures** to enhance understanding of its financial performance. These are not substitutes for **GAAP measures** and may not be **comparable** to those of other companies[10](index=10&type=chunk)

Core Insights - Centerline Drivers, a leader in transportation staffing, has launched the inaugural Respect the Drive Customer Awards to honor businesses excelling in safety, driver culture, and inclusivity [1][3] - The Drive It Forward Scholarship, now in its third year, supports women entering the commercial truck driving profession, with this year's recipient being Cienna Townson from Georgia [4][5] - Bernard Shaw has been named Driver of the Year for his exceptional dedication to safety and service since joining Centerline in 2021 [5][6] Recognition Programs - The Respect the Drive Customer Awards feature four levels of distinction, celebrating organizations that prioritize inclusion, safety, and driver culture [3][8] - The inaugural honorees include Southern Glazers for the Onyx Open Road Award, Sugar Foods for the Diamond Driver Culture Award, TA Dedicated for the Sapphire Safety Award, and Standard Logistics for the Ruby Respect the Drive Award [8] Commitment to Workforce Development - Centerline Drivers connects over 4,500 drivers annually with Fortune 1000 and mid-sized companies, emphasizing its role in providing quality staffing solutions in the transportation sector [9] - The company has a long-standing tradition of investing in the future of trucking through scholarships and recognition programs, reinforcing its commitment to the industry [2][6]

Core Viewpoint - TrueBlue, Inc. reported subdued market demand in Q1 2025, continuing the trend discussed in the previous earnings call [5]. Group 1: Company Overview - TrueBlue, Inc. held its Q1 2025 Earnings Conference Call on May 5, 2025, with key participants including CEO Taryn Owen and CFO Carl Schweihs [1]. - The call included a question and answer session following the formal presentation [1]. Group 2: Financial Reporting - Management emphasized the use of non-GAAP measures in presenting financial results, encouraging a review of reconciliations for a complete understanding [3]. - Comparisons made during the call are based on the same period in the prior year unless stated otherwise [3].

Group 1: Earnings Performance - TrueBlue reported a quarterly loss of $0.40 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.23, and compared to earnings of $0.03 per share a year ago, indicating a significant decline [1] - The company posted revenues of $370.25 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 2.53%, but down from $402.85 million in the same quarter last year [2] - TrueBlue has surpassed consensus EPS estimates two times over the last four quarters [2] Group 2: Stock Performance and Outlook - TrueBlue shares have declined approximately 47.1% since the beginning of the year, contrasting with the S&P 500's decline of only 3.3% [3] - The current consensus EPS estimate for the upcoming quarter is -$0.18 on revenues of $368.34 million, and for the current fiscal year, it is -$0.37 on revenues of $1.48 billion [7] - The estimate revisions trend for TrueBlue is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Group 3: Industry Context - The Staffing Firms industry, to which TrueBlue belongs, is currently ranked in the bottom 9% of over 250 Zacks industries, suggesting a challenging environment [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact TrueBlue's stock performance [5]

Financial Data and Key Metrics Changes - Total revenue for the quarter was $370 million, a decline of 8% year-over-year, but at the high end of the outlook range [13][4] - Gross margin was 23.3%, down 140 basis points, with lower workers' compensation costs contributing to a 130 basis point expansion [14] - The company reported a net loss of $14 million for the quarter, with adjusted net loss at $12 million and adjusted EBITDA at minus $4 million [16][18] Business Line Data and Key Metrics Changes - The People Solutions segment, which includes PeopleScout and the newly acquired HSP business, saw revenue decline by 2%, with HSP contributing 24 percentage points of inorganic growth [18] - PeopleReady revenue declined by 15%, including a 1% decline from the sale of the on-demand business in Canada [19] - PeopleManagement returned to growth with a 1% increase in revenue, driven by strong results from the commercial drivers business [20] Market Data and Key Metrics Changes - Client volumes continued to decline across most verticals, with the largest declines in hospitality and manufacturing [20] - Positive trends were observed in transportation, retail, and professional services, particularly driven by the centerline business [51] Company Strategy and Development Direction - The company is focusing on expanding its presence in high-growth and underpenetrated markets, particularly in healthcare staffing [6] - Strategic partnerships, such as with Omnia Partners, are being pursued to enhance growth opportunities [10] - The company is investing in digital transformation and proprietary technologies to improve user experience and operational efficiencies [9] Management's Comments on Operating Environment and Future Outlook - Management noted that evolving governmental policies have hindered business confidence, impacting the staffing industry [5] - Despite economic uncertainty, the long-term staffing outlook remains positive, with confidence in capturing market share and enhancing profitability [11][12] - The company expects revenue for the second quarter to range from a decline of 1% to an increase of 5% year-over-year [22] Other Important Information - The company finished the quarter with $23 million in cash and $58 million in debt, maintaining a total liquidity of $94 million [21] - The company is on track to increase its field sales representatives by 50% by the end of Q2 [10] Q&A Session Summary Question: How did each month look in the quarter? - Management indicated that PeopleManagement returned to growth in Q1, with positive trends continuing into April [25][26] Question: Any signs of how new field sales reps are performing? - The new PeopleReady field sales reps are performing better than the rest of the business, with sales enabled territories showing stronger performance [29][31] Question: How did HSP perform in Q1? - HSP's financial results were in line with expectations, delivering about $11 million in revenue for the quarter [38][42] Question: What are the trends in candidate availability? - The company is seeing expansions in fill rates, with rates reaching 90% in Q1 [64] Question: Are there any pricing pressures? - Pricing pressures are consistent with current market conditions, but the company is maintaining pricing discipline [65] Question: What is the outlook for revenue guidance across segments? - The midpoint for PeopleReady is minus 3%, PeopleManagement is plus 3%, and People Solutions is plus 29%, excluding HSP [56]