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FTRE

Fortrea Holdings Inc.

FTRE

Fortrea Holdings Inc. • NASDAQ
$12.71 ▲ 0.63% (+0.08)
Market Cap $1.15 B
52w High $25.05
52w Low $3.97
Dividend Yield 0%
P/E -1.12
Volume 392.83K
Outstanding Shares 90.40M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q3-2025 $701.3M ▼ $119M ▼ $-15.9M ▲ -2.267% ▲ $-0.17 ▲ $13.5M ▲
Q2-2025 $710.3M ▲ $124.8M ▼ $-374.9M ▲ -52.781% ▲ $-4.14 ▲ $-327.9M ▲
Q1-2025 $651.3M ▼ $636.6M ▲ $-562.9M ▼ -86.427% ▼ $-6.296 ▼ $-506.2M ▼
Q4-2024 $697M ▲ $196.5M ▲ $-61.2M ▼ -8.78% ▼ $-0.68 ▼ $-32.2M ▼
Q3-2024 $674.9M $166.3M $-27.9M -4.134% $-0.31 $7.8M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q3-2025 $131.3M ▲ $2.742B ▼ $2.161B ▼ $580.8M ▼
Q2-2025 $81.2M ▼ $2.835B ▼ $2.246B ▼ $589.2M ▼
Q1-2025 $101.6M ▼ $3.121B ▼ $2.262B ▲ $858.8M ▼
Q4-2024 $118.5M ▲ $3.579B ▼ $2.217B ▲ $1.362B ▼
Q3-2024 $105.3M $3.664B $2.15B $1.514B

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q3-2025 $-15.9M ▲ $86.8M ▲ $13.3M ▲ $-50M ▼ $50.1M ▲ $79.5M ▲
Q2-2025 $-374.9M ▲ $21.8M ▲ $-7.5M ▼ $-39M ▼ $-20.4M ▼ $14.3M ▲
Q1-2025 $-562.9M ▼ $-124.2M ▼ $16.1M ▲ $88.4M ▲ $-16.9M ▼ $-127.1M ▼
Q4-2024 $-73.9M ▼ $17.1M ▲ $3.5M ▲ $-1.1M ▲ $13.2M ▲ $20.3M ▲
Q3-2024 $-27.9M $-2.4M $-8.1M $-14M $-20.9M $-10.6M

Revenue by Products

Product Q4-2023Q1-2025Q2-2025Q3-2025
Clinical Services Segment
Clinical Services Segment
 $1.40Bn ▲$650.00M ▼$710.00M ▲$700.00M ▼

Five-Year Company Overview

Income Statement

Income Statement Fortrea has a solid revenue base but growth has stalled and has recently drifted slightly downward. Profitability has been inconsistent: the company moved from losses, to decent profits, and then back into meaningful losses in the last two years, suggesting pressure from costs, restructuring, and spin‑off complexity. Margins have narrowed, and even at the operating cash level, the latest period shows strain, indicating the business model is currently being retooled rather than running at full efficiency.

Balance Sheet

Balance Sheet The balance sheet shows a business that still has a meaningful asset base but has become more financially stretched over time. Debt increased sharply around the spin‑off, while shareholder equity has shrunk, pointing to higher leverage and less of a cushion against shocks. Cash on hand is modest, so Fortrea appears to rely on ongoing cash generation and credit access rather than a large liquidity buffer.

Cash Flow

Cash Flow Despite the accounting losses, Fortrea has consistently generated positive cash from its operations, and free cash flow has been steadily positive as well. Capital spending needs are relatively low, which helps support free cash flow. This pattern suggests the underlying contracts and customer relationships still produce cash, even though reported profits are under pressure, but it also means there is less room for major missteps given the modest margin for error.

Competitive Edge

Competitive Edge Fortrea operates in a very competitive contract research market, facing large, well‑established peers and constant price and service pressure. Its strengths lie in global reach, deep experience in later‑stage trials, and a sizeable backlog of contracted work, which provides some visibility. However, its competitive moat is described as narrow, meaning it must continually execute well on quality, speed, and technology to avoid being squeezed by rivals or client insourcing.

Innovation and R&D

Innovation and R&D The company is leaning heavily into technology—especially artificial intelligence—to differentiate itself, with initiatives like its AI Innovation Studio, digital trial simulations, and smartphone‑enabled data platforms. Partnerships with specialized tech and scientific firms strengthen its toolkit and support more complex, high‑value work in areas like oncology and neuroscience. The upside is meaningful if these tools improve trial speed, quality, and diversity, but there is execution risk: the investments must translate into better margins and visible client adoption, not just promising announcements.

Summary

Fortrea is a relatively new standalone CRO still working through its transition, with steady but recently softening revenue and a return to losses after a brief period of solid profitability. The balance sheet carries more debt and less equity than a few years ago, which raises the importance of disciplined cost control and stable cash generation. On the positive side, the business continues to produce cash, has a global footprint, and serves complex, late‑stage trials where expertise matters. The key swing factors ahead are whether management can restore and expand margins, successfully commercialize its AI‑driven innovations, and maintain a strong backlog in a crowded, price‑sensitive market.

NEWS

November 25, 2025 · 7:00 AM UTC

Fortrea to Present at Upcoming Citi and Evercore Healthcare Conferences

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November 24, 2025 · 7:00 AM UTC

Fortrea Completes $75.7 Million Senior Notes Tender Offer Utilizing Cash on Hand

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November 17, 2025 · 7:00 AM UTC

Fortrea Appoints Agnieszka Gallagher as General Counsel

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November 12, 2025 · 7:06 AM UTC

Velocity Clinical Research Appoints Former Fortrea Executive, Andrew Reina, as Chief Revenue Officer

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November 5, 2025 · 6:30 AM UTC

Fortrea Reports Third Quarter 2025 Results

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