Trueblue (TBI) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue grew 8% year-over-year to $399 million, with 7% organic growth, driven by skilled verticals such as energy and commercial driving, while net loss widened to $20 million due to a $4 million non-cash goodwill impairment charge.

• Gross margin declined to 19.8% from 23.3%, mainly due to lower workers' compensation reserve benefits and a revenue mix shift toward lower-margin energy work.

• SG&A expenses decreased by 8% to $87 million, reflecting disciplined cost management and improved operational efficiency.

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

• Enhanced sales capacity, strategic partnerships, and digital innovation, including AI integration, supported new business wins and operational scalability.

Financial highlights

• Total revenue reached $399 million (up 8% year-over-year; 7% organic growth), with $4 million contributed by the HSP acquisition.

• Gross margin was 19.8%, down from 23.3% year-over-year.

• Net loss was $19.8 million, including a $4 million non-cash goodwill impairment; adjusted net loss was $12 million.

• Cash at period end: $24 million; debt: $74 million; total liquidity: $60 million.

• SG&A as a percentage of revenue improved to 21.9% from 25.6% year-over-year.

Outlook and guidance

• Q2 2026 revenue expected between $405 million and $430 million, up 2% to 8% year-over-year, with gross margin projected at 21.1% to 21.5%.

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

• Highest volumes anticipated in the second half of 2026 due to seasonality, with further margin improvement projected.

• Management expects continued expansion in skilled and healthcare verticals, but notes ongoing cost pressures and market uncertainty in permanent hiring.

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