Trueblue (TBI) Q4 2024 earnings summary

Executive summary

• Q4 2024 revenue declined 22% year-over-year (16% on a comparable basis), with net loss widening to $12 million and adjusted EBITDA rising to $9 million, as the company focused on agility, digital transformation, and strategic market expansion.

• Full-year 2024 revenue was $1.6 billion, down 18% year-over-year (17% comparable), with a net loss of $126 million.

• Expanded client relationships in logistics and technology, launched the proprietary JobStack app, and simplified the organization.

• Acquired Healthcare Staffing Professionals (HSP) for $42 million, expanding into healthcare staffing, with up to $14 million additional consideration based on performance.

• Secured a major multi-year contract with the U.K. Armed Forces and increased field sales representatives by 50% in a cost-neutral manner.

Financial highlights

• Q4 2024 revenue was $386 million, down 22% year-over-year (16% comparable); full-year revenue was $1,567 million (-18% year-over-year; -17% comparable).

• Gross margin improved to 26.6% in Q4, up 50 basis points, aided by lower workers' compensation costs.

• Q4 net loss was $12 million; adjusted net loss was $1 million; adjusted EBITDA was $9 million, up 73% year-over-year.

• SG&A reduced by 18% (24% on an adjusted basis), outpacing revenue decline; Q4 adjusted SG&A was $95 million.

• Ended Q4 with $23 million in cash, $8 million in debt, and $119 million in borrowing availability.

Outlook and guidance

• Q1 2025 revenue expected between $347 million and $374 million, down 13% to 7% year-over-year, with a positive 3-point impact from HSP and a 1-point headwind from the Canadian divestiture.

• SG&A for Q1 2025 guided at $93–$97 million, about $12 million lower than prior year.

• Segment revenue guidance: PeopleReady down ~16%, PeopleManagement down ~3%, PeopleScout down ~27%.

• FY 2025 CapEx expected at $19–$23 million; minimal income tax expense anticipated.

• Guidance assumes current market conditions persist and includes HSP acquisition impact.