Revenue has stabilized near $690M while gross margin recovered to 20.2% and operating margin reached a thin 2.2% in 2026Q3, leaving SG&A of $103.8M consuming most of the $139.5M gross profit.
Fortrea Holdings Inc. (FTRE) annual income statement — 5-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 |
|---|
| Sales/Revenue | 2.67B | 2.72B | 2.7B | 2.84B | 2.84B | 3.06B |
| Revenue Growth % | -3.38% | 1% | -5.14% | 0.19% | -7.21% | - |
| Cost of Goods Sold | 2.17B | 2.3B | 2.16B | 2.25B | 2.11B | 2.45B |
| COGS % of Revenue | - | 84.37% | 80.19% | 79.22% | 74.47% | 80.23% |
| Gross Profit | 494.3M | 425.8M | 534.2M | 590.6M | 724.4M | 604.4M |
| Gross Margin % | 18.54% | 15.63% | 19.81% | 20.78% | 25.53% | 19.77% |
| Gross Profit Growth % | - | -20.29% | -9.55% | -18.47% | 19.85% | - |
| Operating Expenses | 452.4M | 456.4M | 696.1M | 558.6M | 537.3M | 490.1M |
| OpEx % of Revenue | - | 16.76% | 25.82% | 19.65% | 18.94% | 16.03% |
| Selling, General & Admin | 409.4M | 456.4M | 560.7M | 448.1M | 416.1M | 303.1M |
| SG&A % of Revenue | - | 16.76% | 20.79% | 15.76% | 14.67% | 9.91% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - |
| Other Operating Expenses | 2M | 0 | 135.4M | 110.5M | 121.2M | 187M |
| Operating Income | 41.9M | -30.6M | -161.9M | 32M | 187.1M | 114.3M |
| Operating Margin % | 1.57% | -1.12% | -6% | 1.13% | 6.59% | 3.74% |
| Operating Income Growth % | - | 81.1% | -605.94% | -82.9% | 63.69% | - |
| EBITDA | 120.6M | 47.4M | -75M | 130M | 280.7M | 280.6M |
| EBITDA Margin % | 4.52% | 1.74% | -2.78% | 4.57% | 9.89% | 9.18% |
| EBITDA Growth % | 123.06% | 163.2% | -157.69% | -53.69% | 0.04% | - |
| D&A (Non-Cash Add-back) | 78.7M | 78M | 86.9M | 98M | 93.6M | 166.3M |
| EBIT | 25.6M | -891.6M | -151.2M | 39.2M | 187.2M | 136.6M |
| Net Interest Income | -81.6M | -91.4M | -123.8M | -69.7M | -200K | -200K |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 81.6M | 91.4M | 123.8M | 69.8M | 200K | 200K |
| Other Income/Expense | -94.6M | -952.4M | -113.1M | -62.5M | -100K | 22.1M |
| Pretax Income | -52.7M | -983M | -275M | -30.5M | 187M | 136.4M |
| Pretax Margin % | -1.98% | -36.09% | -10.2% | -1.07% | 6.59% | 4.46% |
| Income Tax | 16M | 3.2M | -3.5M | 1.2M | 41.1M | 38.4M |
| Effective Tax Rate % | -30.36% | -0.33% | 1.27% | -3.93% | 21.98% | 28.15% |
| Net Income | -68.7M | -986.2M | -328.5M | -25.2M | 186.2M | 98M |
| Net Margin % | -2.58% | -36.21% | -12.18% | -0.89% | 6.56% | 3.21% |
| Net Income Growth % | 93.23% | -200.21% | -1203.57% | -113.53% | 90% | - |
| Net Income (Continuing) | -68.7M | -986.2M | -271.5M | -31.7M | 145.9M | 98M |
| Discontinued Operations | 0 | 0 | -57M | 6.5M | 40.3M | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -0.68 | -10.81 | -3.67 | -0.04 | 2.11 | 1.11 |
| EPS Growth % | 93.32% | -194.55% | -9075% | -101.9% | 90.09% | - |
| EPS (Basic) | - | -10.81 | -3.67 | -0.04 | 2.11 | 1.11 |
| Diluted Shares Outstanding | 101.2M | 91.2M | 89.5M | 88.8M | 88.4M | 88.4M |
| Basic Shares Outstanding | 95.6M | 91.2M | 89.5M | 88.8M | 88.4M | 88.4M |
| Dividend Payout Ratio | - | - | - | - | - | - |
Quick answers to the most common questions about buying FTRE stock.
For fiscal year 2025, Fortrea Holdings Inc. (FTRE) reported total revenue of $2.72B. This represents a 10.9% decline compared to $3.06B in 2021.
Fortrea Holdings Inc. (FTRE) reported a net loss of $986.2M for the fiscal year ending 2025.
Fortrea Holdings Inc. (FTRE) reported an operating income of $-30.6M, resulting in an operating profit margin of -1.1%. This margin reflects the operational efficiency of the business before interest and taxes.
Fortrea Holdings Inc. (FTRE) generated $425.8M in gross profit for the year, representing a gross profit margin of 15.6%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Persistent thin operating margins
Metrics are mathematically derived from official filings.
Revenue Stabilizing After Sustained Contraction
Based on reported quarterly figures, Fortrea's revenue has moved from $710.3M in 2025Q2 to $691.5M in 2026Q3, with year-over-year declines narrowing to -1.4% in the latest quarter.
The shrinking top line through 2025 and early 2026 suggests demand or contract-volume pressure rather than a one-time timing effect, since declines persisted across multiple quarters. The narrowing decline in 2026Q3 may indicate stabilization, but a single quarter of improvement is insufficient to confirm a durable turn. Investors should monitor whether sequential revenue holds above $680M before concluding growth has bottomed.
Gross Margin Recovery Lacks Peer Parity
Fortrea's gross margin recovered from 16.3% in 2026Q1 to 20.2% in 2026Q3, still trailing the 26-39% gross margin range reported by peers such as IQVIA, Medpace, and ICON.
The sequential gross margin improvement suggests cost discipline or better service mix, though the level remains well below peers, which points to weaker pricing power or a less favorable contract structure. Because peer comparisons are drawn from the supplied set, the gap should be read as relative rather than absolute. The trajectory warrants monitoring to determine whether recovery reflects structural change or temporary cost timing.
Operating Margin Barely Positive Despite Cost Control
Operating margin improved to 2.2% in 2026Q3 from a loss of -7.7% in 2024Q2, yet SG&A of $103.8M consumed most of the $139.5M gross profit in the latest quarter.
SG&A absorbing roughly three-quarters of gross profit indicates limited operating leverage, as overhead has not scaled down meaningfully alongside the revenue base. The move into positive operating income appears driven more by gross margin gains than by overhead efficiency. Based on reported figures, the margin of safety remains thin enough that modest gross margin reversal could return operations to losses.
Net Income Swings Driven by Non-Operating Items
Net income swung from a -$562.9M loss in 2025Q1 to a $0.6M profit in 2026Q3, with the 2025Q2 loss of -$374.9M far exceeding its operating loss of -$10.9M.
The gap between operating and net results in 2025 suggests large non-operating charges, impairments, or other items that are not captured in operating income, which lowers confidence in the reported earnings trend. The sharp EPS growth figures in recent quarters largely reflect the easing of prior-period losses rather than operational improvement. Analysts should examine the reconciliation between operating income and net income before relying on reported EPS as a signal of earnings power.
Fragile Recovery Built on Thin Margins
The 2026Q3 profit of $0.6M on $691.5M revenue, a 0.1% net margin, leaves essentially no buffer against revenue softness or gross margin slippage.
Short-seller scrutiny would likely focus on the fact that the return to profitability rests on a net margin under one percent, which can reverse with small contract losses or cost overruns. The stabilization in revenue remains unproven after multiple declining quarters, and the EPS growth figures are inflated by low prior-period bases. Investors should monitor whether operating margins can exceed 5% sustainably before treating the recovery as durable.