Fortrea Holdings Inc.
- Open
- 17.70
- Day high
- 18.34
- Day low
- 17.55
- Prev close
- 17.40
- Volume
- 794K
- Mkt cap
- $1.7B
- P/E (TTM)
- —
- EPS (TTM)
- —
- P/B
- 3.2
- P/S
- 0.6
- Yield
- —
- Per share
- —
- ▼Insiders net selling -$105K over the last 3 months (0 open-market buys, 2 sales)
- 🏛Institutions accumulating (13F)
Fortrea Holdings Inc. (FTRE) is a Healthcare company listed on NASDAQ. The stock is up 234% over the past year. Over the trailing 3 months, insiders filed 0 open-market buys and 2 sales (SEC Form 4).
Fortrea Holdings Inc. (FTRE) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 4 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
FTRE earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| May 5, 2026 | $0.03 | $0.16 | +433.3% | $637M | +1.3% |
| Feb 26, 2026 | $0.16 | $0.09 | -43.8% | $661M | +0.0% |
| Nov 5, 2025 | $0.16 | $0.12 | -25.0% | $701M | +5.4% |
| Aug 6, 2025 | $0.06 | $0.19 | +216.7% | $710M | +13.9% |
| Mar 3, 2025 | $0.36 | $0.18 | -50.0% | $697M | +5.4% |
| Nov 8, 2024 | $0.27 | $0.23 | -14.8% | $675M | -4.1% |
| Mar 11, 2024 | $0.23 | $0.19 | -17.4% | $775M | -0.5% |
| Nov 13, 2023 | $0.18 | $0.24 | +33.3% | $776M | +3.7% |
| Aug 14, 2023 | $0.39 | $0.52 | +33.3% | $793M | +2.8% |
FTRE insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Jun 12, 2026 | Russell Erin Ldirector | Option | 38,817 | — |
| Jun 12, 2026 | Pesicka Edward Adirector | Grant | 12,852 | — |
| Jun 12, 2026 | NEUPERT PETER Mdirector | Grant | 12,852 | — |
| Jun 12, 2026 | Morais Mark A.officer: Chief Operating Officer | Sell | 4,674 | $16.82 |
| Jun 12, 2026 | Ray Amritdirector | Option | 38,817 | — |
| Jun 12, 2026 | Ray Amritdirector | Grant | 12,852 | — |
| Jun 12, 2026 | Sharbaugh William Jdirector | Grant | 12,852 | — |
| Jun 12, 2026 | Russell Erin Ldirector | Grant | 12,852 | — |
| Jun 12, 2026 | SANDERS MACHELLEdirector | Option | 38,817 | — |
| Jun 12, 2026 | SANDERS MACHELLEdirector | Grant | 12,852 | — |
| Jun 12, 2026 | Smith David Rossdirector | Option | 38,817 | — |
| Jun 12, 2026 | Smith David Rossdirector | Tax | 18,244 | $16.34 |
| Jun 12, 2026 | Smith David Rossdirector | Grant | 12,852 | — |
| Jun 12, 2026 | Pesicka Edward Adirector | Option | 38,817 | — |
| May 20, 2026 | Parks Robertofficer: Chief Accounting Officer | Sell | 2,000 | $13.44 |
Source: FTRE SEC Form 4 filings, latest Jun 12, 2026. For informational purposes only — not investment advice.
See the full FTRE insider & 13F page →Fortrea Holdings Inc. company profile
Overview
Fortrea Holdings Inc. (NYSE:FTRE) is a contract research organization (CRO) that was spun off from Laboratory Corporation of America Holdings (LabCorp) in July 2023. The company was incorporated in 2023 and is headquartered in Durham, North Carolina. As a newly independent public company, Fortrea provides comprehensive clinical research services to pharmaceutical, biotechnology, and medical device companies worldwide, helping them navigate the complex process of bringing new treatments and medical devices to market.
Business
Fortrea operates as a contract research organization in the clinical research industry, which serves as a critical intermediary between pharmaceutical companies and regulatory approval for new drugs and medical devices. The clinical research industry exists because pharmaceutical companies typically outsource much of their clinical trial operations to specialized service providers rather than maintaining these capabilities in-house. The company operates through two primary business segments: Clinical Services represents the majority of Fortrea's business and encompasses the full spectrum of clinical trial management from Phase I through Phase IV studies. This includes Clinical Pharmacology Services, which focuses on early-stage drug development and understanding how new compounds behave in the human body, and Full-Service Outsourcing, where Fortrea manages entire clinical programs for clients. The Clinical Services segment also provides functional service provider arrangements where Fortrea handles specific aspects of clinical trials rather than the entire program. Enabling Services provides specialized technology solutions and patient access services that support clinical trials. This includes patient randomization systems, clinical trial supply management, and technology platforms that streamline the complex logistics of running multi-site clinical studies. The company serves a balanced mix of customers, with approximately 50% of revenue coming from large pharmaceutical companies and 50% from biotechnology companies. Fortrea's services span multiple therapeutic areas including oncology, diabetes, dermatology, autoimmune diseases, and ophthalmology, with particular strength in clinical pharmacology studies that are essential for early-stage drug development.
Revenue model
Fortrea generates revenue primarily through service fees charged to pharmaceutical and biotechnology companies for managing their clinical trials, along with pass-through revenues where the company bills clients for third-party costs incurred during studies such as laboratory testing, imaging, and other specialized services. The company's business model is project-based, with revenue recognition tied to the progress and completion of clinical trial milestones. Clients typically sign multi-year contracts with Fortrea to manage their clinical programs, creating a substantial backlog of committed work. As of the most recent quarter, Fortrea maintained a backlog of $7.7 billion, providing revenue visibility over multiple years. Several factors influence Fortrea's profitability and margins. Positive factors include the company's strong position in clinical pharmacology services, which typically command higher margins due to specialized expertise requirements, and the ongoing trend of pharmaceutical companies outsourcing more clinical research activities to focus on their core drug discovery capabilities. The company's balanced customer mix between large pharma and biotech also provides some stability, as these customer segments have different funding cycles and decision-making timelines. Challenging factors include the cyclical nature of biotech funding, which can affect the timing and volume of new project awards, and the inherent project management complexity of clinical trials where delays or scope changes can impact profitability. The company has also faced margin pressure from legacy projects that were initiated before its spinoff, which have proven less profitable than anticipated. Additionally, competitive pricing pressure in the CRO industry and the need for continuous technology investments to remain competitive can compress margins.
Competitive moat
Fortrea's competitive moat appears moderate but not particularly strong in the highly competitive CRO industry. The company's primary defensive characteristics include its specialized expertise in clinical pharmacology services, which requires significant scientific knowledge and regulatory experience that creates some barriers to entry. The company's established relationships with both large pharmaceutical companies and biotech clients, along with its global operational infrastructure, provide some competitive advantages. However, the CRO industry is intensely competitive with numerous well-established players including IQVIA, Syneos Health, PPD (now part of Thermo Fisher), and many smaller specialized competitors. Switching costs for clients are relatively low, as pharmaceutical companies regularly re-bid their clinical research contracts and often work with multiple CROs simultaneously to diversify risk and access different capabilities. The company's most significant competitive threat comes from larger, more diversified CROs that can offer broader service portfolios and potentially better pricing through economies of scale. Technology-enabled competitors and new entrants leveraging artificial intelligence and digital clinical trial platforms also pose disruption risks. Fortrea's recent independence as a spinoff company means it lacks the scale and diversification of some larger competitors, though this also provides focus and agility advantages. The company's ability to maintain and strengthen its moat will largely depend on its success in developing differentiated technology capabilities, building deeper therapeutic area expertise, and executing operationally better than competitors to earn client loyalty through superior trial outcomes and timelines.
Risks & safety
Fortrea's margin of safety appears concerning based on current financial metrics and operational challenges. • Cash and Liquidity: $101.6 million in cash with negative $127.1 million free cash flow in Q1 2025, indicating potential liquidity pressure • Debt Position: Debt-to-equity ratio of 1.50, representing significant leverage for a company with volatile earnings • Profitability: Negative EBITDA of -$506.2 million in Q1 2025, massive deterioration from positive territory in prior periods • Current Ratio: 0.97, indicating current liabilities exceed current assets and potential near-term solvency concerns • Valuation: Trading at 0.79x book value, but negative earnings make traditional valuation metrics less meaningful • Operational Burn: Significant cash burn with negative operating cash flow of -$124.2 million in Q1 2025 • Other Considerations: Recent CEO departure, ongoing business transformation costs, and margin pressure from legacy projects add execution risk
Recent development
Fortrea has undergone significant strategic transformation since its spinoff from LabCorp in July 2023. The company has focused on establishing its independence by exiting Transition Service Agreements (TSAs) with its former parent, having completed approximately 90% of these exits by the end of 2024. This process involved substantial investments in new IT infrastructure, ERP systems, and operational capabilities. A major strategic initiative has been the company's cost reduction program, targeting $150 million in gross cost reductions including significant SG&A optimization and reducing IT spending by approximately one-third. The company has also implemented AI tools and established an AI Innovation Studio to improve productivity and operational efficiency across clinical trial management. The company has experienced leadership transition with CEO Tom Pike stepping down and Peter Neupert appointed as Interim CEO while a permanent CEO search is conducted. This leadership change coincides with operational challenges, particularly around legacy projects from before the spinoff that have proven less profitable and slower-burning than anticipated. Commercial strategy evolution has focused on maintaining a balanced portfolio between large pharmaceutical and biotech customers while strengthening capabilities in high-growth therapeutic areas. The company has made particular investments in clinical pharmacology services, which have shown strong performance, and has been developing specialized solutions for diversity and inclusion in clinical trials. Despite market challenges, Fortrea has maintained a strong book-to-bill ratio averaging 1.2x since the spinoff, indicating healthy demand for its services.
FTRE company profile · for informational purposes only — not investment advice.
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