Fortrea Holdings Inc.
🔔 Watch stock
Assessment
Our Rating
A journalistic assessment by our editorial team at the time of the deep dive — it rates the company, not the entry point. Not investment advice and not a solicitation to buy or sell.
We found at least one documented issue that threatens the company itself — regardless of how the stock is currently valued.
Why this colour
No going-concern qualification, covenants met, an almost break-even first quarter of 2026 and a $7.8 billion order book — but an Altman Z of 0.78, four distress flags, equity below the remaining goodwill and the 2028/2030 debt wall make the stock a bet on proof: the order book first has to turn back into reliable profit before the refinancing comes due. Whoever buys in after plus 93 percent in three months pays for half the comeback in advance. The decision is yours.
What the thesis turns on
Assessment: Opportunities & Risks
Fortrea is not an empty warning-scanner ghost but a genuine global contract research company with stable revenue, a bulging order book and measurable cost progress. But the filings show what the ex-parent Labcorp packed for its daughter: a debt dowry of originally $1.64 billion whose covenants already had to be loosened, and an acquisition goodwill of which almost $800 million was written off in 2025 — triggered by the company's own share-price crash. Add one customer at 18.1 percent of revenue, $300 million of sold receivables and an ongoing class action. Not investment advice.
Business model & order book
An established, global CRO business with more than 30 years of history, about 14,300 employees and an order backlog of $7.8 billion (March 31, 2026) — revenue stayed remarkably stable from 2023 through 2025 at $2.7 to $2.8 billion. The report's own caveat: the backlog is not a reliable revenue indicator, and most contracts can be terminated on 30 to 90 days' notice.
Turnaround progress
The cost-cutting works: administrative expenses minus 18.6 percent (2025) and minus 17.5 percent (Q1 2026), an operating loss of only $3.4 million in the first quarter of 2026 after $520.1 million in the prior-year quarter; a new CEO since August 2025. The threshold to operating profit is reachable — it is not yet proven.
Balance sheet & goodwill
A $797.9 million goodwill impairment in 2025 (trigger: the company's own share-price slide to $4.94), a net loss of $986.2 million, equity halved from $1,362.4 to $563.5 million — and the remaining goodwill ($960.0 million) exceeds total equity. The report itself warns of possible further impairments.
Debt & liquidity
About $1,066.3 million in principal debt as the spin-off dowry, $91.4 million of interest in 2025 against an operating loss even before the impairment; credit covenants loosened on February 28, 2025 "for additional flexibility"; maturities of $387.5 million (2028) and $649.0 million (2030) against $147.5 million of cash — in addition, $300 million of receivables are sold (with a rating trigger since February 2026).
Customers & legal risks
A single customer accounted for 18.1 percent of 2025 revenue, the top 20 for 69 percent with a rising trend; revenue fell 2.3 percent in the first quarter of 2026. On top of that, a shareholder class action has been running since June 2025 (motion to dismiss January 2026), and the board has installed a poison pill with a 10 percent threshold.
Worth Noting
Scanner membership ("Going Concern (Distress Proxy)", plus the P/S, price-to-cash-flow and price-to-free-cash-flow rankings) verified live on the platform on July 14, 2026; metrics data as of July 8, 2026.
The 2025 net loss (−$986.2 million) contains $797.9 million of non-cash goodwill impairment; without it, an operating loss of about $75 million would have remained. The 2024 loss (−$328.5 million) contains −$57.0 million from the discontinued Enabling Services business.
Price and valuation figures dated July 8, 2026 (about $17.70, about 93 million shares); analyses are evergreen, daily prices are not a buy argument.
Stock Watch
This analysis is as of August 26, 2026. Stock Watch will tell you what's changed at FTRE since then.
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Price history
Chart
Interactive price chart (TradingView).
52-week range: 8.40 $ to 20.70 $ · Last price: 20.30 $ (As of: September 17, 2026)
Key figures
Key figures at a glance
Every figure we hold for this stock, grouped by topic. The question mark next to a label explains what the number means.
Basics
Performance
Technical Indicators
Calculated from the price history · as of 09/18/2026
Valuation
Profitability
Balance Sheet & Safety
Growth
Dividend
This stock currently pays no dividend.
Quality & Screener
Highlighted are things our editorial team noticed: green = stands out as strong, red = deserves a closer look. No single metric is a verdict on its own — always read it in context.
Comparison
Industry comparison
The stock alongside the largest companies in the same group. The median row is the middle value of the companies shown above — not of the whole industry.
Industry: Biotechnology
| Company | Market cap ($B) | P/E | EV/EBITDA | Gross Margin % | EBIT Margin % | Sales Growth (Year) % | Perf. 1Y % |
|---|---|---|---|---|---|---|---|
| Fortrea Holdings Inc. FTRE | 1.8 | – | 33.4 | 19.3 | 0.5 | 1.0 | 96.7 |
| Vertex Pharmaceuticals Inc VRTX | 130.6 | 31.3 | 24.5 | 55.0 | 38.1 | 9.6 | 33.4 |
| Regeneron Pharmaceuticals Inc REGN | 82.0 | 19.9 | 13.1 | 44.5 | 20.7 | 1.0 | 35.5 |
| Moderna Inc MRNA | 62.7 | – | 4.6 | -66.0 | -131.1 | -39.2 | 532.3 |
| argenx NV ARGX | 61.9 | 38.1 | 34.2 | 59.1 | 32.0 | 89.6 | 30.9 |
| Revolution Medicines Inc RVMD | 40.9 | – | -9.7 | -174,708.6 | 0.0 | -100.0 | 338.3 |
| BeiGene, Ltd. ONC | 40.0 | 63.1 | 34.1 | 88.9 | 19.1 | 40.2 | 6.4 |
| Alnylam Pharmaceuticals Inc ALNY | 32.6 | 61.8 | 28.4 | 79.7 | 23.0 | 65.2 | -48.1 |
| Royalty Pharma Plc RPRX | 32.5 | 31.8 | 19.6 | 95.8 | 100.3 | 5.1 | 68.6 |
| Median of companies shown | 40.9 | 34.9 | 24.5 | 55.0 | 20.7 | 5.1 | 35.5 |
Based on the most recently reported figures. Only stocks from the same trading venue are lined up, so the market caps are counted in one currency. Compare in a chart →
Fiscal years
Annual Figures
Fiscal years from the audited annual reports, oldest first. EBIT is the operating profit before interest and taxes; total assets are everything the company owns.
Revenue, operating income and net income per fiscal year $M
Revenue Operating income Net income
| Fiscal Year | Revenue ($M) | EBIT ($M) | Net Income ($M) | EPS ($) | Operating Cash Flow ($M) | Equity ($M) | Total Assets ($M) |
|---|---|---|---|---|---|---|---|
| 2020 | 2,580 | -314 | -359 | -4.06 | 201 | – | – |
| 2021 | 3,058 | 114 | 98 | 1.11 | 170 | 3,261 | 4,369 |
| 2022 | 2,837 | 187 | 186 | 2.11 | 83 | 3,343 | 4,288 |
| 2023 | 2,843 | 32 | -25 | -0.28 | 168 | 1,714 | 4,333 |
| 2024 | 2,696 | -162 | -329 | -3.67 | 263 | 1,362 | 3,579 |
| 2025 | 2,723 | -31 | -986 | -10.81 | 114 | 564 | 2,716 |
Quarters
Quarterly Figures
Each bar is one quarter, the last one is the most recent. Use the switch to step through the individual figures.
Revenue & Profit
Cash Flow
Balance Sheet
Margins
Per Share
Click the chart or tab into it, then use ← and → to step through the periods.
None of the selected stocks reports this metric. Pick another metric or switch between annual and quarterly.
· Total · per year
These companies report in different currencies — switch on “Indexed” or pick a margin for a fair comparison.
The figures could not be loaded right now.
Source: fundamental data
| Quarter | EPS (Earnings Per Share) | EPS YoY (%) | Sales ($M) | Sales YoY (%) | Net Margin (%) | OCF ($M) | FCF ($M) |
|---|---|---|---|---|---|---|---|
| 2024: Q4 | -0.68 | – | 697 | -10.10 | -8.80 | 17 | 20 |
| 2025: Q1 | -6.30 | – | 651 | -1.60 | -86.40 | -124 | -127 |
| 2025: Q2 | -4.14 | – | 710 | 7.20 | -52.80 | 22 | 14 |
| 2025: Q3 | -0.17 | – | 701 | 3.90 | -2.30 | 87 | 80 |
| 2025: Q4 | -0.28 | – | 661 | -5.20 | -4.90 | 129 | 122 |
| 2026: Q1 | -0.26 | – | 637 | -2.30 | -3.70 | -17 | -25 |
| 2026: Q2 | -0.14 | 96.60 | 678 | -4.50 | -1.90 | 29 | 29 |
What Do These Terms Mean?
- EPS (Earnings Per Share):
- Quarterly profit divided by the total share count — how much of the profit works out to a single share.
- YoY (Year over Year):
- Change versus the same quarter a year ago — this is how you compare without seasonal distortion (e.g. the holiday shopping season).
- Sales:
- All revenue for the quarter, before any costs are deducted — the top line of the income statement.
- Net Margin:
- What percentage of sales is left over as profit in the end. Negative means the company is posting a loss.
- OCF (Operating Cash Flow):
- The cash that actually flows into the till from the core business during the quarter — harder to dress up than book profit.
- FCF (Free Cash Flow):
- Operating cash flow minus capital expenditures — the money that's genuinely free to use, say for paying down debt, buybacks, or dividends.
Screening
Appears in These Scanners
This stock currently matches 20 of our scanner strategies — each hit links to the scanner.
Growth
Quality & Balance Sheet
Breakout & Setup
Momentum & Trend
- 21-EMA Trend
- Above the 50- & 200-SMA
- Gary Antonacci: Dual Momentum (Stock Adaptation)
- High ADR (≥5%)
- Mark Minervini: Trend Criteria — 1 Month
- Oliver Kell: Strength on Down Day
- Power Trend
- Qullamaggie: Trend Intensity (13/65)
- RS Leader (≥90)
- RS New Highs
- Richard Moglen: Top Performers 3/6 Month
- Stage 2 Leader
- Stan Weinstein: Stage 2
Research
Only genuine hits from verified scanners count; pure ranking metrics (P/E, P/S, and similar, which just sort the whole universe) don't count as a hit. View all scanners
Outlook
Analysts & Price Target
Combined picture of the price targets and recommendations of every analyst covering the stock. Price targets are expectations for the next 12 months, not promises — and they often follow the price rather than predict it.
Distribution of Recommendations
Estimates by Fiscal Year
| Fiscal Year | EPS Estimate ($) | EPS Range ($) | Revenue Estimate ($M) | Expected Growth | Analysts |
|---|---|---|---|---|---|
| 12/31/2026 | 0.84 | 0.76 – 1.00 | 2,663 | 95.4% | 11 |
| 12/31/2027 | 1.14 | 0.88 – 1.96 | 2,744 | 35.5% | 12 |
Average of the analyst estimates for the coming fiscal years. The range shows how far the most optimistic and the most cautious estimate sit apart — the wider it is, the less certain the expectation.
Valuation
What is priced in?
Instead of guessing what the stock is worth, we turn the question around: what free cash flow growth has to happen for today’s market value to add up? The assumptions behind it can be moved.
Today’s market value implies roughly 0.8% growth in free cash flow per year over ten years (assumptions: discount rate 10.0%, terminal growth 2.5%).
| Free cash flow (last twelve months) | $150.6M |
|---|---|
| Market cap | $1.82B |
| Free cash flow in year ten | $162.5M |
| Terminal value as a share of market value | 47.2% |
For comparison: over the past five years free cash flow shrank by 13.0% per year.
It shows which assumption is built into today’s price, not whether that assumption will hold. Every assumption can be changed with the sliders; the figures move with them.
A simplified model calculation — not a forecast and not a recommendation.
AI classification
AI Rating
Fortrea ist ein Auftragsforschungs-Konzern (CRO), dessen Umsatz aus klinischen Studien-Dienstleistungen stammt — nicht aus KI-Produkten. Die Filings belegen aber durchgängig operativen KI-Einsatz: Der Geschäftsbericht für 2025 beschreibt selbst entwickelte und im Einsatz befindliche KI-/ML-Werkzeuge für Tempo, Effizienz, Qualität und Patientensicherheit in der klinischen Forschung, ein eigenes Strategie-Kapitel („Selective Investment in Technology, Data and Application of Artificial Intelligence (AI) for Speed and Simplification“) sowie KI-gestützte Analytik für Studiendesign, Standort- und Patientenauswahl; der Geschäftsbericht für 2024 dokumentiert produktiven KI-Einsatz in der Klinik-Belegungsplanung. Eine KI-Umsatzquelle weisen die Filings nicht aus — daher „Nutzt KI“, nicht „Verkauft KI“.
View the full file — quotes, sources, reviewed filings
„We have developed and are deploying AI and ML tools intended to improve speed, efficiency, quality and patient safety in clinical research, and we continue to evaluate additional uses of AI where appropriate and beneficial."
Wir haben KI- und ML-Werkzeuge entwickelt und setzen sie ein, um Geschwindigkeit, Effizienz, Qualität und Patientensicherheit in der klinischen Forschung zu verbessern, und wir prüfen laufend weitere KI-Einsatzfelder, wo dies sinnvoll und nützlich ist.
10-K · 2026-02-26 · View SEC filing
„Fortrea takes a focused, digital-led approach to technology, investing selectively in platforms, data assets, AI, ML, other advanced technologies, workflow automation and orchestration that accelerate trial execution and drive quality and simplification across clinical development."
Fortrea verfolgt einen fokussierten, digital geführten Technologie-Ansatz und investiert gezielt in Plattformen, Datenbestände, KI, ML, weitere fortgeschrittene Technologien sowie Workflow-Automatisierung und -Orchestrierung, die die Studiendurchführung beschleunigen und Qualität und Vereinfachung in der gesamten klinischen Entwicklung vorantreiben.
10-K · 2026-02-26 · View SEC filing
„Fortrea integrates its in-house datasets, those from strategic data partners and a broad range of additional third parties, using proprietary analytics and AI-enabled tools to guide protocol design, optimize study feasibility, identify diverse sites and patients, and accelerate study delivery."
Fortrea führt eigene Datenbestände, die strategischer Datenpartner und einer breiten Palette weiterer Dritter zusammen und nutzt proprietäre Analytik und KI-gestützte Werkzeuge, um das Studienprotokoll-Design zu steuern, die Machbarkeit von Studien zu optimieren, vielfältige Prüfzentren und Patienten zu identifizieren und die Studiendurchführung zu beschleunigen.
10-K · 2026-02-26 · View SEC filing
„We have integrated technology and artificial intelligence successfully within our clinic scheduling process to optimize the utilization of bedspace and have implemented bedside data capture technology to improve the speed and accuracy of data collection."
Wir haben Technologie und künstliche Intelligenz erfolgreich in unseren Klinik-Planungsprozess integriert, um die Auslastung der Bettenkapazität zu optimieren, und haben Technik zur Datenerfassung am Krankenbett eingeführt, um Geschwindigkeit und Genauigkeit der Datenerhebung zu verbessern.
10-K · 2025-03-03 · View SEC filing
Filings Reviewed: 10-Q 2026-05-05 · 10-Q 2025-11-05 · 10-Q 2025-08-06 · 10-Q 2025-05-12 · 10-K 2026-02-26 · 10-K 2025-03-03
Rated on July 14, 2026 · How the Rating Is Built
Growth
Growth Score
Ten checks against the annual reports — each one passed counts a point.
- Revenue grows by more than 15% a year over three years -1.4%
- More than 10% revenue growth is expected for the coming year 3.3%
- Share count grows by less than 3% a year 1.0%
- Revenue growth plus cash-flow margin add up to at least 40 ("Rule of 40") 4.2%
- Gross margin at 40% or higher and without meaningful erosion 15.6%
- Goodwill from acquisitions does not grow faster than revenue 35.4%
- Net debt below twice EBITDA failed
- Operating cash flow covers the profits of the last three years 1,885 m
- Return on capital at 15% or higher, or up versus two years ago -1.7%
- Insiders hold at least 10% or are net buyers 1.0%
A criterion without figures counts neither as passed nor as failed; a score is only produced from 7 judgeable criteria upwards. Source: fundamental data. All ten criteria in detail
Quality check
AAQS
0/10The AAQS (AlleAktien Quality Score) checks 10 quality criteria on growth, profitability, and balance-sheet strength — per the methodology developed and published by AlleAktien, calculated by us from our own fundamental data. A stock counts as a quality stock from 9 out of 10 points. Where a company has a shorter listing history, we calculate over the fiscal years available (at least five).
- Sales growth 10Y > 5% 1.1%
- Exp. sales growth 3Y > 5% 0.4%
- EBIT growth 10Y > 5% –
- Exp. EBIT growth 3Y > 5% 0.4%
- Net debt < 4x EBIT –
- EBIT positive, 10Y straight 3
- Max. EBIT decline < 50% 100.0%
- Return on equity > 15% –
- ROCE > 15% -1.7%
- Expected return > 10% 5.3%
View stocks with the full AAQS score · Read the methodology at AlleAktien
Source: fundamental data
Insiders
Insider Transactions
Reportable transactions by officers and major shareholders from SEC Form 4 filings. "Other" includes things like stock grants and option exercises without a buy/sell character.
| Date | Person | Role | Type | Shares | Price | Value |
|---|---|---|---|---|---|---|
| Sep 9, 2026 | Russell Carrie Elizabeth | Interim CAO | Sell | 246 | 16.85 | 4,145 |
| Sep 9, 2026 | Morais Mark A. | Chief Operating Officer | Sell | 3,149 | 16.85 | 53,061 |
| Sep 8, 2026 | Russell Carrie Elizabeth | Interim CAO | Other | 850 | 0.00 | – |
| Sep 8, 2026 | Morais Mark A. | Chief Operating Officer | Other | 7,157 | 0.00 | – |
| Aug 19, 2026 | Morais Mark A. | Chief Operating Officer | Sell | 4,892 | 18.19 | 88,985 |
| Aug 18, 2026 | Morais Mark A. | Chief Operating Officer | Other | 11,313 | 0.00 | – |
| Aug 6, 2026 | Thakral Anshul | Chief Executive Officer | Sell | 55,975 | 18.06 | 1,010,909 |
| Aug 6, 2026 | Thakral Anshul | Chief Executive Officer | Sell | 55,882 | 18.17 | 1,015,376 |
| Aug 5, 2026 | Thakral Anshul | Chief Executive Officer | Sell | 50,417 | 19.28 | 972,040 |
| Aug 5, 2026 | Thakral Anshul | Chief Executive Officer | Sell | 49,452 | 19.03 | 941,072 |
The company
About the Company
Fortrea Holdings Inc., ein Auftragsforschungsinstitut, bietet weltweit Lösungen für die Entwicklung von biopharmazeutischen Produkten und Medizinprodukten für Pharma-, Biotechnologie- und Medizinproduktekunden an.
- Employees
- 14,000
- Headquarters
- Durham, NC
- Address
- 8 Moore Drive, 27709 Durham, United States
- Phone
- 877 495 0816
- Website
- fortrea.com
- IPO Date
- 07/03/2023
- ISIN
- US34965K1079
Management
| Name | Title | Birth Year |
|---|---|---|
| Anshul Thakral | CEO & Director | 1978 |
| David Ross Smith | Interim CFO, Principal Financial Officer & Independent Director | 1966 |
| Mark A. Morais | COO & President of Clinical Services | 1977 |
| Jill McConnell | Executive Officer | 1974 |
| Drayton Virkler | President & Chief Commercial Officer | – |
| Carrie Russell | VP of Accounting & Interim Chief Accounting Officer | – |
| Alejandro Martinez Galindo | Chief Information Officer | – |
| Dave Cooper | Chief Administrative Officer | – |
| Tracy H. Krumme | Senior VP of Investor Relations | 1968 |
| Agnieszka M. Gallagher J.D. | General Counsel & Corporate Secretary | 1974 |
Executives per the latest required filings; titles kept in their original language. Source: fundamental data.
Filings
Company Filings (8-K)
An 8-K is the filing a US company must use to disclose material events immediately — takeovers, changes at the top, major contracts or payment troubles, for instance. The links open the original document at the US Securities and Exchange Commission (SEC).
- 09/10/2026 Fortrea Holdings Inc. (FTRE): Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers: Compensatory Arrangements of Certain Officers SEC ↗
- 07/29/2026 Fortrea Holdings Inc. (FTRE): Results of Operations and Financial Condition; Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers: Compensatory Arrangements of Certain Officers; Financial Statements and Exhibits SEC ↗
- 07/14/2026 Fortrea Holdings Inc. (FTRE): Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers: Compensatory Arrangements of Certain Officers SEC ↗
Data as of: September 17, 2026 · Source: fundamental data & SEC filings (annual and quarterly reports, 10-K/10-Q)
Note: pure fact-based analysis, not investment advice and not a solicitation to buy or sell. All figures without guarantee.