Trueblue (TBI) investor relations material

Executive summary

• Q3 2025 revenue grew 13% year-over-year to $431.3 million, driven by strong demand in skilled businesses, energy, and the HSP acquisition.

• Net loss improved to $1.9 million from $7.6 million in the prior year, reflecting better cost management.

• Adjusted EBITDA more than doubled to $11 million, supported by operational efficiencies and technology integration.

• Strategic initiatives, including digital transformation and expansion in high-growth markets, contributed to new business wins and enterprise alignment.

• Acquisition of Healthcare Staffing Professionals (HSP) in January 2025 expanded healthcare staffing capabilities and contributed $14 million to Q3 revenue.

Financial highlights

• Q3 2025 revenue: $431.3 million (+13% YoY); net loss: $1.9 million; adjusted EBITDA: $11 million (2.5% margin); adjusted net income per diluted share: $0.03.

• Gross margin was 22.7%, down from 26.2% in the prior year, due to revenue mix and less favorable workers' compensation reserve adjustments.

• SG&A expense improved by 8% year-over-year to $92 million; adjusted SG&A as a percentage of revenue was 20.5%.

• Ended the quarter with $20 million in cash, $68 million in debt, and $95 million in total liquidity.

• Working capital increased by $19 million during the quarter.

Outlook and guidance

• Q4 2025 revenue expected to grow 4–10% year-over-year, including about 4 percentage points from the HSP acquisition.

• Gross margin projected to decline 370–410 basis points year-over-year in Q4 due to prior year reserve adjustments and business mix.

• SG&A for Q4 2025 projected at $91–95 million, with minimal income tax expense expected.

• Seasonal step-down and known headwinds, such as weather impacts and automotive supplier disruptions, factored into Q4 outlook.