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Get filing alertsFortrea reports Q1 revenue of $636.5M, 1.15x book-to-bill, and affirms FY 2026 guidance
Filed May 5, 2026 · Period ending May 5, 2026 · ~1 min read
Key Changes
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Q1 revenue of $636.5M declined 2.3% year-over-year, but adjusted EBITDA surged 55% to $47.0M as the company improved profitability. GAAP loss of $23.6M ($0.25/share) compares favorably to prior year's $562.9M loss driven by goodwill impairment.
Exhibit 99.1 view on EDGAR → -
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Book-to-bill ratio of 1.15x marks third consecutive quarter above 1.1x, with backlog reaching $7,846M. Trailing 12-month book-to-bill of 1.05x indicates new business wins are outpacing revenue recognition, supporting future growth.
Exhibit 99.1 view on EDGAR → -
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Management affirmed full-year 2026 guidance of $2,550M–$2,650M revenue and $190M–$220M adjusted EBITDA, stating Q1 performance was in line with expectations and reinforces confidence in achieving targets.
Exhibit 99.1 view on EDGAR → -
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Negative free cash flow of $25.0M in Q1 as operating activities used $17.0M and capex totaled $8.0M. Cash declined from $174.6M to $147.5M while long-term debt stood at $1,042.6M.
Exhibit 99.1 view on EDGAR → -
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Launched Fortrea Intelligent Technology platform as part of strategic push toward outcomes-based innovation. Management highlighted commercial traction with biotech and large pharma clients.
Exhibit 99.1 view on EDGAR →
Summary
Fortrea reported mixed Q1 2026 results that showed profitability improvement despite a modest revenue decline. Revenue of $636.5 million fell 2.3% year-over-year, but the company delivered a 55% surge in adjusted EBITDA to $47.0 million, demonstrating operational leverage as it executes its margin expansion strategy. The GAAP loss of $23.6 million represents substantial improvement from the prior year's $562.9 million loss, which was driven by a $488.8 million goodwill impairment charge.
The standout metric is the 1.15x book-to-bill ratio, the third consecutive quarter above 1.1x, indicating Fortrea is winning new contracts at a pace 15% faster than it recognizes revenue. With backlog at $7,846 million and a trailing 12-month book-to-bill of 1.05x, the company has built revenue visibility that supports management's decision to affirm full-year guidance of $2,550M–$2,650M in revenue and $190M–$220M in adjusted EBITDA. The negative $25 million free cash flow in Q1 and declining cash balance from $174.6M to $147.5M warrant monitoring, particularly given $1.04 billion in long-term debt, but management's confidence in the full-year outlook suggests this is a timing issue rather than a structural concern.
Section-by-Section Diff
Event · Exhibit 99.1
Fortrea reported Q1 2026 results with revenue of $636.5M, a 1.15x book-to-bill ratio, and affirmed full-year guidance.
Added in current filing · view on EDGAR →
Revenue for the first quarter was $636.5 million, compared to $651.3 million in the first quarter of 2025.
First quarter GAAP net loss was $23.6 million and diluted loss per share was $0.25, compared to first quarter of 2025 GAAP net loss of $562.9 million and diluted loss per share of $6.25, inclusive of a non-cash goodwill impairment charge of $488.8 million. First quarter adjusted net income was $15.2 million and adjusted diluted EPS was $0.16 compared to first quarter of 2025 adjusted net income of $1.9 million and adjusted diluted EPS of $0.02. First quarter adjusted EBITDA was $47.0 million, compared to first quarter of 2025 adjusted EBITDA of $30.3 million.
Fortrea reported Q1 2026 revenue of $636.5 million, down 2.3% year-over-year. The company posted a GAAP net loss of $23.6 million ($0.25 per share), a significant improvement from the prior year's $562.9 million loss which included a $488.8 million goodwill impairment. Adjusted EBITDA increased 55% to $47.0 million, and adjusted net income improved to $15.2 million ($0.16 per share) from $1.9 million ($0.02 per share) in Q1 2025.
Added in current filing · view on EDGAR →
The recent launch of Fortrea Intelligent Technology demonstrates our commitment to outcomes-based innovation that spans the R&D ecosystem. Our collaborative approach and disciplined execution power our progress as a leading CRO.
CEO Anshul Thakral highlighted the launch of Fortrea Intelligent Technology as part of the company's strategic journey toward growth and margin expansion. Management emphasized commercial traction across biotech and large pharma clients and continued investment in solutions and people to support the company's position as a leading contract research organization.
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Figures/quotes linked to EDGAR · Narrative written by AI · Jul 2, 2026 · How we verify