Fortrea Holdings Inc. (FTRE): Results of Operations and Financial Condition
Fortrea Holdings Inc. (FTRE) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 Fortrea Reports Second Quarter 2026 Results Four consecutive quarters of execution to drive commercial, operational and financial excellence Increases full-year guidance Highlights For the three months ended June 30, 2026: • Revenues of $678.2 million • Book-to-bill
How this was made
The 30-second read
Why it matters
The key tradable update is the raised FY 2026 guidance range, supported by a book-to-bill ratio above 1.0x for the fourth consecutive quarter and a $7.8B backlog figure. However, the company still reported GAAP net losses, and revenue declined versus the prior-year quarter.
Market read
Guidance raise and improving operating KPIs are likely to drive earnings-model revisions and near-term sentiment, especially for investors focused on CRO growth and margin trajectory.
What to watch
Traders may discount guidance if backlog conversion or net new business awards are delayed; the filing emphasizes backlog and book-to-bill but does not quantify net new awards or customer concentration changes.
Fortrea Reports Second Quarter 2026 Results
Revenue was lower than the second quarter of 2025, but adjusted EBITDA and adjusted net income increased, the GAAP loss narrowed substantially, book-to-bill remained above 1.0x, and the Company increased full-year 2026 revenue and adjusted EBITDA guidance.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| RevenueGAAP | $678.2 million | – | – |
| GAAP net lossGAAP | $(13.2) million | – | – |
| Diluted loss per shareGAAP | $(0.14) | – | – |
| Adjusted net incomenon-GAAP | $22.7 million | – | – |
| Adjusted diluted EPSnon-GAAP | $0.23 | – | – |
| Adjusted EBITDAnon-GAAP | $58.7 million | – | – |
| Cash provided by operationsGAAP | $28.9 million | – | – |
| Free cash flownon-GAAP | $19.9 million | – | – |
| Backlog as of June 30, 2026other | $7,800 million | – | – |
| Book-to-bill ratioother | 1.06x | – | – |
| Trailing 12-month book-to-bill ratioother | 1.12x | – | – |
| First half revenueGAAP | $1,314.7 million | – | – |
| First half GAAP net lossGAAP | $(36.8) million | – | – |
| First half diluted loss per shareGAAP | $(0.39) | – | – |
| First half adjusted net incomenon-GAAP | $37.9 million | – | – |
| First half adjusted diluted EPSnon-GAAP | $0.38 | – | – |
| First half adjusted EBITDAnon-GAAP | $105.7 million | – | – |
| Second quarter of 2025 non-cash goodwill impairment chargeGAAP | $309.1 million | – | – |
| First half of 2025 non-cash goodwill impairment chargeGAAP | $797.9 million | – | – |
full-year 2026 outlook
- Revenue$2,620 million to $2,690 million
- NoteAdjusted EBITDA of $205 million to $220 million
What drove it
- The Company reported its fourth consecutive quarter with a book-to-bill ratio above 1.0x.
- The book-to-bill ratio was 1.06x for the quarter and 1.12x for the trailing 12 months.
- Management cited continued progress against its strategy, disciplined execution, commercial execution, operational excellence and financial discipline.
Concerns
- Second-quarter revenue was $678.2 million, compared to $710.3 million in the second quarter of 2025.
- First-half revenue was $1,314.7 million, compared to $1,361.6 million in the first half of 2025.
- The Company cautioned that backlog and net new business may not grow as anticipated or be indicative of future revenues, and that it might not realize all anticipated future revenue reflected in backlog.
What to watch
- Execution against full-year 2026 revenue guidance of $2,620 million to $2,690 million.
- Execution against full-year 2026 adjusted EBITDA guidance of $205 million to $220 million.
- Sustainability of book-to-bill above 1.0x and conversion of the $7,800 million backlog into revenue.
- Whether commercial and operational execution supports the Company's stated objective of sustainable growth and margin expansion.
Balance sheet and cash flow
- Cash provided by operations of $28.9 million
- Free cash flow of $19.9 million
- Backlog as of June 30, 2026 was $7,800 million
Analysis
Fortrea reported second-quarter revenue of $678.2 million, compared to $710.3 million in the second quarter of 2025. Revenue was also lower for the first half, at $1,314.7 million compared to $1,361.6 million in the first half of 2025. The commercial indicators presented were more constructive: quarterly book-to-bill was 1.06x, trailing 12-month book-to-bill was 1.12x, and backlog as of June 30, 2026 was $7,800 million. Management characterized the quarter as its fourth consecutive period with book-to-bill above 1.0x.
Profitability improved on both GAAP and adjusted measures. The second-quarter GAAP net loss narrowed to $(13.2) million from $(374.9) million, while adjusted net income increased to $22.7 million from $17.6 million and adjusted EBITDA increased to $58.7 million from $54.9 million. The prior-year GAAP comparison included a non-cash goodwill impairment charge of $309.1 million, which is important context for the magnitude of the reported GAAP loss improvement.
First-half results showed the same pattern. GAAP net loss was $(36.8) million compared to $(937.8) million, while adjusted net income rose to $37.9 million from $19.5 million and adjusted EBITDA rose to $105.7 million from $85.2 million. The first-half 2025 GAAP loss included a non-cash goodwill impairment charge of $797.9 million. Second-quarter cash provided by operations was $28.9 million and free cash flow was $19.9 million.
Management increased full-year 2026 guidance to revenue of $2,620 million to $2,690 million and adjusted EBITDA of $205 million to $220 million. The release does not provide the prior guidance ranges, so the magnitude of the increase cannot be assessed from this document. The central operating items to monitor are revenue conversion from the reported backlog, persistence of book-to-bill above 1.0x, and whether the improved adjusted earnings and EBITDA performance continues while revenue remains below the prior-year period.
Management, verbatim
Our second quarter results reflect continued progress against our strategy and disciplined execution across the business.
Anshul Thakral, CEO of Fortrea
We delivered solid operating and financial performance, including our fourth consecutive quarter with a book-to-bill ratio above 1.0x, and raised our full-year 2026 guidance to reflect our confidence in the business.
Anshul Thakral, CEO of Fortrea
Not in the filing
stated, not guessed- Prior-quarter comparisons for reported second-quarter metrics.
- Percentage year-over-year and sequential changes for reported metrics.
- GAAP gross profit and gross margin.
- GAAP operating income or loss and operating margin.
- Non-GAAP gross margin.
- Cash balance, debt balance and liquidity measures.
- Capital return information, including share repurchases and dividends.
- Segment revenue and segment profitability disclosures.
- Prior full-year 2026 revenue and adjusted EBITDA guidance ranges.
- Full-year 2026 guidance for gross margin, operating expenses and tax rate.
- Reconciliation schedules and additional financial statement tables were not included in the provided filing text.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
This SEC 8-K includes Fortrea’s Q2 2026 operating results and an update to full-year 2026 financial guidance, plus an officer/director item (Item 5.02).
Ticker impact
Fortrea reported Q2 2026 results and raised full-year 2026 guidance to $2,620M-$2,690M revenue and $205M-$220M adjusted EBITDA.
Likely positive near-term bias as traders reprice FY 2026 revenue and adjusted EBITDA expectations; magnitude depends on how the market compares to prior consensus.
The filing is a primary earnings/guidance disclosure with specific updated ranges, and it includes operating KPIs (book-to-bill above 1.0x, backlog $7.8B) that typically drive CRO valuation multiples.
Market effects
A CRO guidance raise with book-to-bill above 1.0x can modestly improve sentiment for clinical research outsourcing demand and margin expansion expectations across the sector.
Limited direct regional read-through; Fortrea operates globally and the disclosure is company-specific.
Moderate global relevance as CRO spending is tied to multinational pharma/biotech clinical pipelines, but the article provides no cross-company datapoints.
Counterpoint
Despite guidance increase, revenue fell year over year and GAAP losses persist, so the market may focus on durability of growth and whether adjusted metrics mask underlying margin pressure.
Key entities
- companyFortrea Holdings Inc.
Global contract research organization reporting Q2 2026 results and raising FY 2026 guidance in an SEC 8-K.
- executiveAnshul Thakral
CEO quoted in the release discussing strategy execution and guidance increase.
