Trueblue (TBI) investor relations material

Executive summary

• Q1 2026 revenue grew 8% year-over-year to $399 million, with 7% organic growth, driven by skilled verticals, especially energy, and supported by the HSP acquisition.

• Net loss widened to $20 million from $14 million year-over-year, impacted by a $4 million non-cash goodwill impairment charge.

• Gross margin declined to 19.8% from 23.3% due to lower workers' compensation reserve benefits and revenue mix shifts.

• SG&A expense decreased by 8% year-over-year to $87 million, reflecting disciplined cost management.

• Adjusted EBITDA improved to -$3 million from -$4 million in the prior year.

Financial highlights

• Revenue: $399 million, up 8% year-over-year; organic growth 7%; HSP acquisition contributed $4 million.

• Net loss: $19.8 million (vs. $14.3 million prior year); adjusted net loss: $12 million.

• Gross margin: 19.8%, down from 23.3% last year.

• Cash: $24 million; Debt: $74 million; Total liquidity: $60 million.

• SG&A as % of revenue: 21.9%, improved from 25.6% year-over-year.

Outlook and guidance

• Q2 2026 revenue expected to grow 2%-8% year-over-year, with sequential gross margin expansion of 130-170 basis points.

• SG&A expected at $85M to $89M, down 5% to 1% year-over-year.

• FY 2026 CapEx planned at $11M to $15M; minimal income tax expense expected.

• Highest volumes expected in the second half of the year due to seasonality.

• Management expects continued expansion in skilled verticals and stabilization in demand.