📊 FTRE Key Takeaways
Is Fortrea Holdings Inc. (FTRE) a Good Investment?
Fortrea is experiencing severe financial distress with massive operating and net losses (-32% operating margin, -36.2% net margin) despite 2.7B in revenue, indicating fundamental operational problems. The company is burning shareholder value with negative ROE of -175% and ROA of -36.3%, while maintaining a dangerously low current ratio of 0.98x and high leverage ratio of 1.86x that limit financial flexibility. The only positive signal is positive free cash flow of 88.3M, suggesting some operational cash generation, but this is insufficient to offset the severe profitability crisis and deteriorating financial position.
Fortrea's fundamentals are weak: revenue growth is only 1.0% while profitability has collapsed, with deeply negative operating and net margins and a sharp deterioration in earnings. Although the business still generates positive operating cash flow and free cash flow, liquidity is tight and leverage is elevated, which leaves little room for sustained execution missteps if losses persist.
Why Buy Fortrea Holdings Inc. Stock? FTRE Key Strengths
- Positive operating cash flow of 113.5M demonstrates ability to generate cash from operations despite losses
- Free cash flow of 88.3M provides liquidity buffer for near-term obligations
- Stable revenue base of 2.7B with modest 1% YoY growth showing market presence
- Positive operating cash flow of $113.5M despite net losses
- Free cash flow remained positive at $88.3M
- Revenue was at least stable year over year with modest 1.0% growth
FTRE Stock Risks: Fortrea Holdings Inc. Investment Risks
- Severe profitability crisis with -986.2M net loss and -200.2% YoY deterioration indicates fundamental operational failure
- Negative interest coverage ratio of -12.5x indicates inability to service debt from operating earnings
- Liquidity crisis with current ratio of 0.98x and high debt-to-equity of 1.86x creating solvency risk
- Negative ROE of -175% and ROA of -36.3% demonstrate complete destruction of shareholder and asset value
- 11 Form 4 filings in 90 days suggest potential insider concern or leadership turnover
- Severe profitability deterioration with -32.0% operating margin and -36.2% net margin
- Weak balance sheet flexibility, including a 0.98x current ratio and 1.86x debt/equity
- Negative interest coverage indicates earnings do not currently support debt servicing
Key Metrics to Watch
- Operating margin recovery trajectory and path to profitability
- Current ratio and working capital trends for solvency assessment
- Operating cash flow sustainability and free cash flow adequacy relative to debt service
- Debt reduction progress and debt-to-equity ratio improvement
- Operating margin and net income trend
- Operating cash flow and current ratio
Fortrea Holdings Inc. (FTRE) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 3.2% FCF margin may limit capital allocation flexibility. The current ratio below 1.0x warrants monitoring of short-term liquidity.
FTRE Profit Margin, ROE & Profitability Analysis
FTRE vs Healthcare Sector: How Fortrea Holdings Inc. Compares
How Fortrea Holdings Inc. compares to Healthcare sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Fortrea Holdings Inc. Stock Overvalued? FTRE Valuation Analysis 2026
Based on fundamental analysis, Fortrea Holdings Inc. shows some fundamental concerns relative to the Healthcare sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Fortrea Holdings Inc. Balance Sheet: FTRE Debt, Cash & Liquidity
FTRE Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Fortrea Holdings Inc.'s revenue has remained relatively flat over the 5-year period, with a 9% decline. The most recent EPS of $-0.29 indicates the company is currently unprofitable.
FTRE Revenue Growth, EPS Growth & YoY Performance
FTRE Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $674.9M | -$15.9M | $-0.17 |
| Q2 2025 | $662.4M | -$101.0M | $-1.55 |
| Q1 2025 | $651.3M | -$101.0M | $-1.13 |
| Q3 2024 | $674.9M | $12.5M | $-0.16 |
| Q2 2024 | $662.4M | $12.5M | $0.35 |
| Q1 2024 | $662.1M | $12.5M | $0.14 |
| Q3 2023 | $762.3M | -$13.1M | $-0.15 |
| Q2 2023 | $793.0M | $17.4M | $0.32 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Fortrea Holdings Inc. Dividends, Buybacks & Capital Allocation
FTRE SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Fortrea Holdings Inc. (CIK: 0001965040)
📋 Recent SEC Filings
❓ Frequently Asked Questions about FTRE
What is the AI rating for FTRE?
Fortrea Holdings Inc. (FTRE) has a Combined AI Rating of STRONG SELL from Claude (STRONG SELL) and ChatGPT (STRONG SELL) with 91% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are FTRE's key strengths?
Claude: Positive operating cash flow of 113.5M demonstrates ability to generate cash from operations despite losses. Free cash flow of 88.3M provides liquidity buffer for near-term obligations. ChatGPT: Positive operating cash flow of $113.5M despite net losses. Free cash flow remained positive at $88.3M.
What are the risks of investing in FTRE?
Claude: Severe profitability crisis with -986.2M net loss and -200.2% YoY deterioration indicates fundamental operational failure. Negative interest coverage ratio of -12.5x indicates inability to service debt from operating earnings. ChatGPT: Severe profitability deterioration with -32.0% operating margin and -36.2% net margin. Weak balance sheet flexibility, including a 0.98x current ratio and 1.86x debt/equity.
What is FTRE's revenue and growth?
Fortrea Holdings Inc. reported revenue of $2.7B.
Does FTRE pay dividends?
Fortrea Holdings Inc. does not currently pay dividends.
Where can I find FTRE SEC filings?
Official SEC filings for Fortrea Holdings Inc. (CIK: 0001965040) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is FTRE's EPS?
Fortrea Holdings Inc. has a diluted EPS of $-10.81.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is FTRE a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Fortrea Holdings Inc. has a STRONG SELL rating with 91% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is FTRE stock overvalued or undervalued?
Valuation metrics for FTRE: ROE of -175.0% (sector avg: 15%), net margin of -36.2% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy FTRE stock in 2026?
Our dual AI analysis gives Fortrea Holdings Inc. a combined STRONG SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is FTRE's free cash flow?
Fortrea Holdings Inc.'s operating cash flow is $113.5M, with capital expenditures of $25.2M. FCF margin is 3.2%.
How does FTRE compare to other Healthcare stocks?
Vs Healthcare sector averages: Net margin -36.2% (avg: 12%), ROE -175.0% (avg: 15%), current ratio 0.98 (avg: 2).
Is Fortrea Holdings Inc. carrying too much debt?
FTRE has a debt-to-equity ratio of 1.86x, which is above the Healthcare sector average of 0.6x. Combined with a current ratio below 1, this warrants careful monitoring of the balance sheet.