Trueblue (TBI) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue declined 8.1% year-over-year to $370.3 million, with $11 million contributed by the HSP acquisition, reflecting subdued market demand and client caution.

• Net loss widened to $14.3 million from $1.7 million in the prior year, driven by lower revenue and gross margin contraction.

• SG&A expense improved by 12% to $94.6 million due to disciplined cost management, partially offsetting revenue decline.

• Strategic focus remains on expanding in high-growth markets, especially healthcare, skilled trades, and professional roles, with continued investment in digital transformation.

• HSP integration is on track, expanding healthcare presence and supporting inorganic growth.

Financial highlights

• Revenue: $370.3 million, down 8.1% year-over-year; organic revenue down 11%.

• Net loss: $14.3 million vs. $1.7 million in Q1 2024; adjusted EBITDA: -$4 million.

• Gross margin: 23.3%, down 140 basis points year-over-year, impacted by revenue mix and pricing pressure.

• SG&A expense: $94.6 million, down from $106.9 million; adjusted SG&A: $91.3 million.

• Cash at quarter-end: $23 million; debt: $58 million; total liquidity: $94 million.

Outlook and guidance

• Q2 2025 revenue expected between -1% and +5% year-over-year, including 5% inorganic growth from HSP.

• Gross margin projected to decline 180–220 basis points in Q2 2025 due to business mix.

• SG&A expense for Q2 2025 projected between $91 million and $95 million, with continued cost management.

• FY 2025 capital expenditures and SaaS spending expected between $19 million and $23 million.

• Minimal income tax expense expected for Q2 2025 due to valuation allowance.