Short answer
Fortrea Holdings Inc. (FTRE) filed its fiscal 2025 10-K annual report with the SEC on Feb 26, 2026. It reported revenue of $2.7B (+1.0% year over year) and net income of −$986M.
- Top risk flagged: FTC scrutiny under Transition Services Agreement post-Spin from Labcorp completed June 30, 2023, affecting centralized function costs allocation
FY2025 key financial metrics · XBRL
- Revenue
- $2.7B
- +1.0% YoY
- Net income
- −$986M
- −200.2% YoY
- Operating margin
- -32.0%
- −26.0 pp YoY
- EPS (diluted)
- −$10.81
- −194.6% YoY
- ROE
- -175.0%
- −150.9 pp YoY
- Operating cash flow
- $114M
- −56.8% YoY
Source: XBRL data from the Fortrea Holdings Inc. (FTRE) FY2025 10-K on SEC EDGAR. USD.
Fortrea Holdings Inc. FY2025 10-K analysis
AI summary of each section, grounded in the filing text
Business Overview
- Core business model: global contract research organization (CRO) providing clinical trial management and consulting services across 20+ therapeutic areas
- Strategic shift: spun off from Labcorp Holdings on June 29, 2023, becoming standalone publicly traded company
- Notable transaction: sold Enabling Services Segment (Fortrea Patient Access Inc. and Endpoint Clinical, Inc.) to Arsenal Capital Partners in Q2 2024
- Workforce scale: approximately 14,300 employees operating in about 100 countries
- Reporting structure: operates under one clinical services segment post-separation
Management Discussion & Analysis
- Revenue $2,723.4M, up 1.0% YoY vs $2,696.4M in 2024; organic growth 0.8%, FX benefit 0.2%
- Operating costs: direct costs 81.5% of revenue vs 80.2% in 2024; SG&A down 18.6% to $456.4M from $560.7M
- Segment impairment: Clinical Development goodwill impairment $797.9M in 2025, none in 2024
- Cash flow: operating cash $113.5M vs $262.8M in 2024; capital expenditures $25.2M vs $25.5M; repurchased $75.7M notes in 2025
- Outlook: monitors new OECD global minimum tax, no Pillar Two tax accrued in 2025; believes existing cash and credit suffice for 12 months operations
Risk Factors
- FTC scrutiny under Transition Services Agreement post-Spin from Labcorp completed June 30, 2023, affecting centralized function costs allocation
- Revenue exposure from geopolitical risks in ~100 countries with operations, disrupting clinical trials and regulatory approvals
- Post-sale of Enabling Services Segment assets for $340M in Q2 2024, operational shift risk in transition service dependencies
- Market competition risk from larger CROs like IQVIA and ICON impacting contract awards in key therapeutic areas
- Financial risk from potential backlog cancellations despite $7.7B backlog as of December 31, 2025, with contracts having 30-90 day termination notice
Generated from the filing text; verify against the original. How to read a 10-K
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