The strong adjusted EPS beat and third consecutive quarter of book-to-bill above 1.1x suggest operational momentum, but the YoY revenue decline and negative free cash flow warrant caution. Monitor the Q2 2026 earnings for signs of revenue stabilization and progress toward positive free cash flow.
Price Chart
Executive Summary
Fortrea reported Q1 2026 revenue of $636.5M (down 2.3% YoY from $651.3M) and an adjusted diluted EPS of $0.16, significantly above the $0.03 Street consensus. The company affirmed its FY2026 guidance of $2.55B-$2.65B revenue and $190M-$220M adjusted EBITDA. While the adjusted EPS beat is notable, the ongoing revenue decline and negative free cash flow of -$25.0M temper the outlook.
Key Financial Metrics
Key Facts
- Q1 2026 revenue of $636.5M, down 2.3% YoY from $651.3M
- GAAP net loss of $23.6M ($0.25 loss per diluted share)
- Adjusted diluted EPS of $0.16 vs Street consensus of $0.03 (433% beat)
- Adjusted EBITDA of $47.0M, up 55% YoY from $30.3M
- Book-to-bill ratio of 1.15x, third consecutive quarter above 1.1x
- Backlog of $7,846M as of March 31, 2026
- FY2026 guidance affirmed: revenue $2.55B-$2.65B, adjusted EBITDA $190M-$220M
- Free cash flow of -$25.0M in Q1 2026
Financial Impact
Adjusted EPS of $0.16 beat consensus of $0.03 by $0.13, a 433% surprise. Revenue of $636.5M was above the $625.9M consensus estimate by 1.7%.
Risk Factors
- Continued YoY revenue decline of 2.3% signals ongoing top-line pressure
- Negative free cash flow of -$25.0M raises liquidity concerns
- High debt load of $1.05B long-term debt vs $147.5M cash
- Guidance affirmed but unchanged, leaving no upside catalyst
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001628280-26-030101 |
| Document: ftre-20260505.htm | 0001628280-26-030101 |
| Document: 0001628280-26-030101-index-headers.html | 0001628280-26-030101 |
| Document: 0001628280-26-030101-index.html | 0001628280-26-030101 |
| Document: 0001628280-26-030101.txt | 0001628280-26-030101 |
| 8-K Data (Synthetic) | 0001628280-26-030101 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 27, 2026 today | Press Release | $23.63 | awaiting T+1 | — | $24.23 (+2.52%) |
Oct 22, 2026 4d ago | Press Release | $23.63 $23.83 | ▲ +0.85% | ▲ +0.14% | $24.23 (+2.52%) |
Oct 19, 2026 7d ago | Press Release | $22.78 $24.06 | ▲ +5.62% | ▲ +5.09% | $24.23 (+6.34%) |
Oct 5, 2026 22d ago | Press Release | $21.11 $20.78 | ▼ −1.56% | ▼ −2.11% | $24.23 (+14.76%) |
Sep 30, 2026 26d ago | 8-K | $19.40 $20.00 | ▲ +3.09% | ▲ +2.35% | $24.23 (+24.87%) |
Sep 10, 2026 6w ago | Press Release | $17.20 $17.41 | ▲ +1.22% | ▲ +1.67% | $24.23 (+40.84%) |
Sep 10, 2026 6w ago | 8-K | $17.02 $17.20 | ▲ +1.06% | ▲ +0.21% | $24.23 (+42.33%) |
Sep 2, 2026 7w ago | Press Release | $18.36 $18.62 | ▲ +1.42% | ▲ +0.37% | $24.23 (+31.94%) |
Aug 22, 2026 9w ago | Institutional Cluster | $18.31 $18.27 | ▼ −0.22% | ▼ −0.54% | $24.23 (+32.30%) |
Aug 7, 2026 11w ago | Insider Cluster | $18.99 $19.52 | ▲ +2.79% | ▲ +3.11% | $24.23 (+27.57%) |
US Market Status
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