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- Securities Litigation (new) — Fortrea is a defendant in litigation alleging the newly-hired CFO violated restrictive covenants and retained confidential information from his prior employer; a Delaware court has barred him from working as CFO pending resolution.
Fortrea CFO placed on paid leave after court order; board director named interim
Filed July 29, 2026 · Period ending July 27, 2026 · ~2 min read
Key Changes
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CFO Jason Knoblauch, hired July 6, placed on paid leave after Delaware court granted temporary restraining order preventing him from working as CFO; prior employer alleges he violated restrictive covenants and retained confidential information. Fortrea is a defendant in the lawsuit.
Item 5.02 — Departure of Directors or Certain Officers; Election of Directors; Compensation verify on EDGAR → -
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Board director David Smith appointed Interim CFO; will receive $60,000/month salary plus RSU grants worth approximately $300,000 initially and similar monthly grants capped at $900,000 aggregate value, vesting in one year.
Item 5.02 — Departure of Directors or Certain Officers; Election of Directors; Compensation verify on EDGAR → -
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Q2 2026 revenue of $678.2M (down from $710.3M prior year); adjusted EBITDA rose to $58.7M from $54.9M; book-to-bill of 1.06x marks fourth consecutive quarter above 1.0x with backlog at $7,800M.
Exhibit 99.1 view on EDGAR → -
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Full-year 2026 guidance raised to revenue of $2,620M–$2,690M and adjusted EBITDA of $205M–$220M, reflecting management confidence following sustained book-to-bill strength.
Exhibit 99.1 view on EDGAR → -
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Q2 2026 GAAP net loss narrowed to $13.2M from $374.9M prior year (which included $309.1M goodwill impairment); adjusted diluted EPS improved to $0.23 from $0.19.
Exhibit 99.1 view on EDGAR →
Summary
Fortrea disclosed that its newly appointed CFO, Jason Knoblauch, has been placed on paid leave just three weeks into the role after a Delaware court granted a temporary restraining order preventing him from serving as CFO. The order stems from a lawsuit filed by Knoblauch's prior employer alleging he violated restrictive covenants and retained confidential information; Fortrea is a named defendant.
The duration of the leave is undetermined, creating uncertainty around the CFO role during a critical period for the company. Board director David Smith, who previously served as CFO of Charles River Laboratories from 2015 to 2022, has been appointed Interim CFO and will receive $60,000 per month plus RSU grants capped at $900,000 aggregate value. The litigation poses reputational and operational risk.
If the allegations are substantiated, Fortrea could face liability for hiring a CFO who brought confidential information from a competitor, and the company may need to conduct a prolonged search for permanent CFO leadership. The interim arrangement, while drawing on Smith's deep pharmaceutical industry experience, introduces execution risk as the company navigates a turnaround. Investors should monitor the litigation's progression and any disclosures regarding the CFO search timeline. Separately, Fortrea reported Q2 2026 results showing revenue of $678.2 million (down 4.5% year-over-year) but improved profitability, with adjusted EBITDA rising to $58.7 million from $54.9 million and a book-to-bill ratio of 1.06x—the fourth consecutive quarter above 1.0x. Management raised full-year 2026 guidance to revenue of $2,620–$2,690 million and adjusted EBITDA of $205–$220 million, reflecting confidence in the business despite the CFO disruption.
Section-by-Section Diff
Event · Item 5.02 — Departure of Directors or Certain Officers; Election of Directors; Compensation
Item 5.02 — Departure of Directors or Certain Officers; Election of Directors; Compensation filed; see Key Changes for terms.
Added in current filing · verify on EDGAR →
On July 27, 2026, the Board of Directors of the Company (the “Board”) appointed David Smith, a current director on the Board, to act as Interim Chief Financial Officer and principal financial officer (“Interim CFO”). In connection with this appointment, Mr. Smith will remain on the Board but has stepped down from the Audit Committee and the Management Development and Compensation Committee of the Board.
Board director David Smith, who previously served as CFO of Charles River Laboratories from 2015 to 2022, has been appointed Interim CFO. He remains on the Board but stepped down from the Audit and Compensation Committees. Smith has over 25 years of pharmaceutical industry experience and was CFO when Charles River entered the S&P 500 in 2021.
Event · Exhibit 99.1
Added in current filing · view on EDGAR →
Revenue for the second quarter was $678.2 million, compared to $710.3 million in the second quarter of 2025. ... Second quarter GAAP net loss was $(13.2) million and diluted loss per share was $(0.14), compared to second quarter of 2025 GAAP net loss of $(374.9) million and diluted loss per share of $(4.14), inclusive of a non-cash goodwill impairment charge of $309.1 million. Second quarter adjusted net income was $22.7 million and adjusted diluted EPS was $0.23 compared to second quarter of 2025 adjusted net income of $17.6 million and adjusted diluted EPS of $0.19. Second quarter adjusted EBITDA was $58.7 million, compared to second quarter of 2025 adjusted EBITDA of $54.9 million.
Fortrea reported Q2 2026 revenue of $678.2 million, down from $710.3 million in Q2 2025. The GAAP net loss narrowed significantly to $13.2 million from $374.9 million in the prior year, primarily because Q2 2025 included a $309.1 million goodwill impairment charge. On an adjusted basis, profitability improved: adjusted EBITDA rose to $58.7 million from $54.9 million, and adjusted diluted EPS increased to $0.23 from $0.19.
Added in current filing · view on EDGAR →
Book-to-bill ratio of 1.06x, resulting in 1.12x book-to-bill for the trailing 12 months ... Backlog as of June 30, 2026 was $7,800 million, and the book-to-bill ratio for the quarter was 1.06x.
Fortrea achieved a book-to-bill ratio of 1.06x in Q2 2026, marking the fourth consecutive quarter above 1.0x, and a trailing twelve-month ratio of 1.12x. Backlog stood at $7,800 million as of June 30, 2026. A book-to-bill above 1.0x indicates new business awards exceeded revenue recognized, supporting future revenue visibility.
Added in current filing · view on EDGAR →
Cash provided by operations of $28.9 million and free cash flow of $19.9 million
Fortrea generated $28.9 million in operating cash flow and $19.9 million in free cash flow during Q2 2026. Free cash flow is calculated as operating cash flow minus capital expenditures of $9.0 million for the quarter.
Added in current filing · view on EDGAR →
Revenue for the first half was $1,314.7 million, compared to $1,361.6 million in the first half of 2025. ... First half GAAP net loss was $(36.8) million and diluted loss per share was $(0.39), compared to first half of 2025 GAAP net loss of $(937.8) million and diluted loss per share of $(10.37), inclusive of a non-cash goodwill impairment charge of $797.9 million. First half adjusted net income was $37.9 million and adjusted diluted EPS was $0.38 compared to first half of 2025 adjusted net income of $19.5 million and adjusted diluted EPS of $0.21. First half adjusted EBITDA was $105.7 million, compared to first half of 2025 adjusted EBITDA of $85.2 million.
For the first half of 2026, Fortrea reported revenue of $1,314.7 million, down from $1,361.6 million in the prior year. The GAAP net loss improved dramatically to $36.8 million from $937.8 million, primarily due to a $797.9 million goodwill impairment charge in H1 2025. Adjusted EBITDA rose to $105.7 million from $85.2 million, and adjusted diluted EPS increased to $0.38 from $0.21, reflecting improved operational performance.
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Figures/quotes linked to EDGAR · Narrative written by AI · Jul 30, 2026 · How we verify