$FTRE

Fortrea Holdings Inc.

CIK:0001965040|SEC Filings

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Income Statement [Abstract]
Revenues	$ 678.2	$ 710.3	$ 1,314.7	$ 1,361.6
Costs and expenses:
Direct costs, exclusive of depreciation and amortization	539.0	576.8	1,051.9	1,111.6
Selling, general and administrative expenses, exclusive of depreciation and amortization	102.1	124.8	202.6	246.6
Depreciation and amortization	19.6	19.6	39.4	39.1
Goodwill and other asset impairments	0.0	309.1	0.0	797.9
Restructuring and other charges	2.7	10.3	9.4	16.8
Total costs and expenses	663.4	1,040.6	1,303.3	2,212.0
Operating income (loss)	14.8	(330.3)	11.4	(850.4)
Other income (expense):
Interest expense	(19.3)	(23.3)	(38.4)	(45.6)
Foreign exchange gain (loss)	3.5	(19.9)	13.2	(25.5)
Other, net	(0.2)	2.8	0.3	2.8
Loss before income taxes	(1.2)	(370.7)	(13.5)	(918.7)
Income tax expense	12.0	4.2	23.3	19.1
Net loss	$ (13.2)	$ (374.9)	$ (36.8)	$ (937.8)
Earnings (loss) per common share
Basic (in dollars per share)	$ (0.14)	$ (4.14)	$ (0.39)	$ (10.37)
Diluted (in dollars per share)	$ (0.14)	$ (4.14)	$ (0.39)	$ (10.37)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (36.8)	$ (937.8)
Adjustments to reconcile net loss to net cash provided by (used for) operating activities:
Depreciation and amortization	39.4	39.1
Stock compensation	24.0	37.3
Credit loss expense	4.0	9.0
Operating lease right-of-use asset expense	4.1	6.0
Operating lease right-of-use asset impairment	0.0	1.2
Goodwill and other asset impairments	0.0	797.9
Deferred income taxes	0.9	(16.8)
Unrealized foreign exchange movements	(8.7)	37.7
Other, net	2.5	2.3
Changes in assets and liabilities:
Increase in accounts receivable and unbilled services, net	(70.0)	(77.5)
Decrease in prepaid expenses and other	17.5	24.5
Increase (decrease) in accounts payable	24.6	(46.8)
Increase in unearned revenue	28.7	23.2
Decrease in accrued expenses and other	(18.3)	(1.7)
Net cash provided by (used for) operating activities	11.9	(102.4)
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures	(17.0)	(10.4)
Proceeds from sale of business, net	0.0	19.0
Proceeds from sale of assets	2.0	0.0
Net cash (used for) provided by investing activities	(15.0)	8.6
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from revolving credit facilities	0.0	316.4
Payments on revolving credit facilities	0.0	(266.4)
Debt issuance costs	0.0	(0.6)
Net cash provided by financing activities	0.0	49.4
Effect of exchange rate changes on cash and cash equivalents	(2.9)	7.1
Net change in cash and cash equivalents	(6.0)	(37.3)
Cash and cash equivalents at beginning of period	174.6	118.5
Cash and cash equivalents at end of period	$ 168.6	$ 81.2

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	Jun. 30, 2026	Dec. 31, 2025
Current assets:
Cash and cash equivalents	$ 168.6	$ 174.6
Accounts receivable and unbilled services, net	654.4	589.7
Prepaid expenses and other	100.6	132.9
Total current assets	923.6	897.2
Property, plant and equipment, net	156.2	149.5
Goodwill, net	950.3	960.0
Intangible assets, net	586.8	622.0
Deferred income taxes	6.2	6.2
Other assets, net	91.8	80.8
Total assets	2,714.9	2,715.7
Current liabilities:
Accounts payable	54.2	29.7
Accrued expenses and other current liabilities	380.8	395.8
Unearned revenue	502.7	473.8
Current portion of long-term debt	17.1	4.8
Short-term operating lease liabilities	8.9	9.2
Total current liabilities	963.7	913.3
Long-term debt, less current portion	1,037.2	1,048.0
Operating lease liabilities	54.3	54.0
Deferred income taxes and other tax liabilities	97.0	97.6
Other liabilities	38.5	39.3
Total liabilities	2,190.7	2,152.2
Commitments and contingent liabilities (Note 8)
Equity
Common stock, 95.1 and 93.1 shares outstanding at June 30, 2026 and December 31, 2025, respectively	0.1	0.1
Additional paid-in capital	2,140.6	2,116.6
Accumulated deficit	(1,420.0)	(1,383.2)
Accumulated other comprehensive loss	(196.5)	(170.0)
Total equity	524.2	563.5
Total liabilities and equity	$ 2,714.9	$ 2,715.7