TrueBlue(TBI) - 2025 Q2 - Quarterly Results

Financial Highlights and Management Commentary 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] - Strategic priorities include capturing market share, enhancing operational efficiency, maximizing long-term profitability, and investing in proprietary technologies[4] 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 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 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 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 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 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] Non-GAAP Financial Measures and Reconciliations 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][22] Reconciliation of Net Loss to Adjusted Net Loss 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 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 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 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] - 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]