Fortrea Q1 2026: Revenue down 2.3%, margins improve, no repeat of prior-year $488.8M impairment

Filed May 5, 2026 · Period ending March 31, 2026 · Compared to 10-Q May 12, 2025 · ~1 min read

Key Changes

• high

  Q1 2025's $488.8 million goodwill impairment (Clinical Development unit) did not recur in Q1 2026, reflecting improved business conditions or valuation after prior-year share-price decline and macro uncertainties.

  MD&A: Goodwill Impairment verify on EDGAR →
• high

  Revenue declined 2.3% to $636.5M on lower pass-through costs and weaker FSP demand, partially offset by full-service growth from net new business. Direct-cost margin improved 150bp to 80.6% from restructuring savings.

  MD&A: Revenue & Direct Costs verify on EDGAR →
• high

  Operating cash outflow improved $107.2M to $17.0M used (vs $124.2M prior year) on better receivables collection and higher net income excluding the prior-year impairment, partially offset by variable compensation outflows.

  MD&A: Cash Flow verify on EDGAR →