TrueBlue Reports Second Quarter 2025 Results

TACOMA, Wash.--(BUSINESS WIRE)-- TrueBlue (NYSE:TBI) today announced its second quarter results for 2025.

Second Quarter 2025 Financial Highlights

  • Revenue of $396 million, flat compared to the prior year period
    • $16 million of revenue from the January HSP acquisition
  • Net loss of $0 million compared to net loss of $105 million in the prior year period
    • Prior year included $100 million in non-cash impairment and tax valuation charges
    • SG&A expense improved 7 percent to $90 million compared to $97 million in the prior year period
    • Adjusted EBITDA1 increased to $3 million compared to $1 million in the prior year period
  • Cash of $22 million, debt of $54 million and $79 million of borrowing availability, for total liquidity of $101 million at period end
    • Reduced debt by $4 million and increased working capital by $14 million during the quarter

Commentary

“We are encouraged to see positive momentum with double-digit growth for our skilled businesses, overall signs of stabilization and a return to company-wide growth expected in the third quarter,” said Taryn Owen, President and CEO of TrueBlue. “As customers navigate today’s complex business landscape, our teams are focused on retaining and expanding existing relationships, winning new business, and delivering flexible, high-quality solutions tailored to our clients’ changing needs.”

Ms. Owen continued, “We continue to support our clients with excellent service, and advance our strategic priorities to capture market share, enhance operational efficiency, and maximize our long-term profitability. We are strengthening our position in skilled trades while building momentum in attractive markets like healthcare and energy, in addition to higher-value, professional roles. We are strategically investing in our innovative, proprietary technologies to address evolving user needs, while leveraging inherent strengths that drive competitive advantage and deliver long-term, profitable growth for shareholders. We are energized by the opportunities ahead as we maintain our strategic focus and unwavering commitment to deliver top-line growth and margin expansion.”

Results

Second quarter revenue was $396 million, flat compared to revenue of $396 million in the second quarter of 2024. Net loss per diluted share was $0.01 compared to net loss per diluted share of $3.45 in the prior year period. Adjusted net loss1 per diluted share was $0.07 compared to adjusted net loss per diluted share of $0.35 in the prior year period.

2025 Outlook

TrueBlue is providing certain forward-looking information to help investors form their estimates, which can be found in the quarterly earnings presentation filed today.

Management will discuss second quarter 2025 results on a webcast at 2:00 p.m. PT (5:00 p.m. ET), today, Monday, Aug. 4, 2025.

The quarterly earnings presentation and webcast can be accessed on the Investor Relations section of the TrueBlue website: investor.trueblue.com.

About TrueBlue

TrueBlue (NYSE: TBI) is transforming the way organizations connect with talent in an ever-changing world of work. As The People Company®, we put people first – connecting job seekers with meaningful opportunities while delivering smart, scalable workforce solutions for enterprises across industries and worldwide. Powered by innovative technology and decades of expertise, our brands – PeopleReady, PeopleScout, Staff Management | SMX, Centerline, SIMOS, and Healthcare Staffing Professionals – offer flexible staffing, workforce management, and recruitment solutions that propel businesses and careers. Discover how we’re shaping the future of work at www.trueblue.com.

1 Refer to the financial statements accompanying this release for more information regarding non-GAAP terms.

Forward-looking statements and non-GAAP financial measures

This document contains forward-looking statements relating to our plans and expectations including, without limitation, statements regarding the future performance and operations of our business, expectations regarding stabilization in demand, and expected growth from our digital investments, all of which are subject to risks and uncertainties. Such statements are based on management’s expectations and assumptions as of the date of this release and involve many risks and uncertainties that could cause actual results to differ materially from those expressed or implied in our forward-looking statements including: (1) national and global economic conditions, which can be negatively impacted by factors such as rising interest rates, inflation, changes in government policies, political instability, epidemics and global trade uncertainty, (2) factors relating to any unsolicited offer (“Offer”) to purchase the shares of the Company, actions taken by the Company or its stockholders in respect to such an Offer, and the effects of such an Offer, or the completion or failure to complete an Offer on the Company’s business, or other developments involving such an Offer and the activist shareholders or others who disagree with the composition of the board, our strategy, or the way the Company is managed; (3) our ability to maintain profit margins, (4) our ability to attract and retain clients, (5) our ability to access sufficient capital to finance our operations, including our ability to comply with covenants contained in our revolving credit facility, (6) our ability to successfully execute on business strategies and further digitalize our business model, (7) our ability to attract sufficient qualified candidates and employees to meet the needs of our clients, (8) new laws, regulations, and government incentives that could affect our operations or financial results, (9) any reduction or change in tax credits we utilize, including the Work Opportunity Tax Credit, (10) our ability to successfully integrate acquired businesses, and (11) the timing and amount of common stock repurchases, if any, which will be determined at management’s discretion and depend upon several factors, including market and business conditions, the trading price of our common stock and the nature of other investment opportunities. Other information regarding factors that could affect our results is included in our Securities and Exchange Commission (SEC) filings, including the company’s most recent reports on Forms 10-K and 10-Q, copies of which may be obtained by visiting our website at www.trueblue.com under the Investor Relations section or the SEC’s website at www.sec.gov. We assume no obligation to update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise, except as required by law. Any other references to future financial estimates are included for informational purposes only and subject to risk factors discussed in our most recent filings with the SEC.

In addition, we use several non-GAAP financial measures when presenting our financial results in this document. Please refer to the reconciliations between our U.S. GAAP and non-GAAP financial measures in the appendix to this document and on our website at www.trueblue.com under the Investor Relations section for additional information on both current and historical periods. The presentation of these non-GAAP financial measures is used to enhance the understanding of certain aspects of our financial performance. It is not meant to be considered in isolation, superior to, or as a substitute for the directly comparable financial measures prepared in accordance with U.S. GAAP, and may not be comparable to similarly titled measures of other companies.

TRUEBLUE, INC.

SUMMARY CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

 

 

13 weeks ended

 

26 weeks ended

(in thousands, except per share data)

Jun 29, 2025

 

Jun 30, 2024

 

Jun 29, 2025

 

Jun 30, 2024

Revenue from services

$

396,299

 

 

$

396,230

 

 

$

766,553

 

 

$

799,083

 

Cost of services

 

302,735

 

 

 

291,807

 

 

 

586,647

 

 

 

595,274

 

Gross profit

 

93,564

 

 

 

104,423

 

 

 

179,906

 

 

 

203,809

 

Selling, general and administrative expense

 

89,798

 

 

 

97,018

 

 

 

184,419

 

 

 

203,955

 

Depreciation and amortization

 

6,507

 

 

 

7,691

 

 

 

12,351

 

 

 

15,649

 

Goodwill and intangible asset impairment charge

 

200

 

 

 

59,674

 

 

 

200

 

 

 

59,674

 

Loss from operations

 

(2,941

)

 

 

(59,960

)

 

 

(17,064

)

 

 

(75,469

)

Interest and other income (expense), net

 

2,903

 

 

 

1,741

 

 

 

3,096

 

 

 

3,340

 

Loss before tax expense

 

(38

)

 

 

(58,219

)

 

 

(13,968

)

 

 

(72,129

)

Income tax expense

 

122

 

 

 

46,491

 

 

 

540

 

 

 

34,279

 

Net loss

$

(160

)

 

$

(104,710

)

 

$

(14,508

)

 

$

(106,408

)

 

 

 

 

 

 

 

 

Net loss per common share:

 

 

 

 

 

 

 

Basic

$

(0.01

)

 

$

(3.45

)

 

$

(0.49

)

 

$

(3.46

)

Diluted

$

(0.01

)

 

$

(3.45

)

 

$

(0.49

)

 

$

(3.46

)

 

 

 

 

 

 

 

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

Basic

 

29,856

 

 

 

30,349

 

 

 

29,777

 

 

 

30,725

 

Diluted

 

29,856

 

 

 

30,349

 

 

 

29,777

 

 

 

30,725

 

TRUEBLUE, INC.

SUMMARY CONSOLIDATED BALANCE SHEETS

(Unaudited)

 

(in thousands)

Jun 29, 2025

 

Dec 29, 2024

ASSETS

 

 

 

Cash and cash equivalents

$

21,899

 

$

22,536

Accounts receivable, net

 

225,744

 

 

214,704

Other current assets

 

39,211

 

 

39,853

Total current assets

 

286,854

 

 

277,093

Property and equipment, net

 

85,143

 

 

89,602

Restricted cash, cash equivalents and investments

 

154,054

 

 

179,916

Goodwill and intangible assets, net

 

61,979

 

 

30,406

Other assets, net

 

84,754

 

 

98,359

Total assets

$

672,784

 

$

675,376

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

Accounts payable and other accrued expenses

$

37,085

 

$

45,599

Accrued wages and benefits

 

60,942

 

 

61,380

Current portion of workers’ compensation claims reserve

 

28,296

 

 

34,729

Other current liabilities

 

21,733

 

 

18,417

Total current liabilities

 

148,056

 

 

160,125

Workers’ compensation claims reserve, less current portion

 

81,156

 

 

105,063

Long-term debt, less current portion

 

53,800

 

 

7,600

Other long-term liabilities

 

84,580

 

 

87,229

Total liabilities

 

367,592

 

 

360,017

Shareholders’ equity

 

305,192

 

 

315,359

Total liabilities and shareholders’ equity

$

672,784

 

$

675,376

TRUEBLUE, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

 

 

26 weeks ended

(in thousands)

Jun 29, 2025

 

Jun 30, 2024

Cash flows from operating activities:

 

 

 

Net loss

$

(14,508

)

 

$

(106,408

)

Adjustments to reconcile net loss to net cash used in operating activities:

 

 

 

Depreciation and amortization (inclusive of depreciation included in cost of services)

 

14,312

 

 

 

15,649

 

Goodwill and intangible asset impairment charge

 

200

 

 

 

59,674

 

Provision for credit losses

 

435

 

 

 

630

 

Stock-based compensation

 

4,421

 

 

 

4,844

 

Deferred income taxes

 

(113

)

 

 

33,997

 

Non-cash lease expense

 

5,524

 

 

 

6,200

 

Other operating activities

 

(1,438

)

 

 

(3,118

)

Changes in operating assets and liabilities:

 

 

 

Accounts receivable

 

2,260

 

 

 

21,061

 

Income taxes receivable and payable

 

279

 

 

 

430

 

Other assets

 

8,592

 

 

 

8,246

 

Accounts payable and other accrued expenses

 

(10,199

)

 

 

(18,849

)

Accrued wages and benefits

 

(10,808

)

 

 

(14,753

)

Workers’ compensation claims reserve

 

(30,340

)

 

 

(18,537

)

Operating lease liabilities

 

(5,688

)

 

 

(6,139

)

Other liabilities

 

3,162

 

 

 

1,011

 

Net cash used in operating activities

 

(33,909

)

 

 

(16,062

)

Cash flows from investing activities:

 

 

 

Capital expenditures

 

(8,936

)

 

 

(13,279

)

Acquisition of business, net of cash acquired

 

(30,140

)

 

 

 

Proceeds from business divestiture, net

 

 

 

 

2,928

 

Payments for company-owned life insurance

 

 

 

 

(4,000

)

Purchases of restricted held-to-maturity investments

 

 

 

 

(10,180

)

Maturities of restricted held-to-maturity investments

 

19,285

 

 

 

19,220

 

Net cash used in investing activities

 

(19,791

)

 

 

(5,311

)

Cash flows from financing activities:

 

 

 

Purchases and retirement of common stock

 

 

 

 

(16,986

)

Net proceeds from employee stock purchase plans

 

256

 

 

 

417

 

Common stock repurchases for taxes upon vesting of restricted stock

 

(942

)

 

 

(2,143

)

Net change in revolving credit facility

 

46,200

 

 

 

 

Other

 

(396

)

 

 

(1,807

)

Net cash provided by (used in) financing activities

 

45,118

 

 

 

(20,519

)

Effect of exchange rate changes on cash, cash equivalents and restricted cash and cash equivalents

 

(70

)

 

 

(557

)

Net change in cash, cash equivalents, and restricted cash and cash equivalents

 

(8,652

)

 

 

(42,449

)

Cash, cash equivalents and restricted cash and cash equivalents, beginning of period

 

61,100

 

 

 

99,306

 

Cash, cash equivalents and restricted cash and cash equivalents, end of period

$

52,448

 

 

$

56,857

 

TRUEBLUE, INC.

SEGMENT DATA

(Unaudited)

 

 

13 weeks ended

(in thousands)

Jun 29, 2025

 

Jun 30, 2024

Revenue from services:

 

 

 

PeopleReady

$

213,226

 

 

$

223,409

 

PeopleManagement

 

133,895

 

 

 

131,751

 

PeopleSolutions (1)

 

49,178

 

 

 

41,070

 

Total company

$

396,299

 

 

$

396,230

 

 

 

 

 

Segment profit (2):

 

 

 

PeopleReady

$

1,530

 

 

$

394

 

PeopleManagement

 

4,101

 

 

 

3,395

 

PeopleSolutions

 

2,534

 

 

 

3,430

 

Total segment profit

 

8,165

 

 

 

7,219

 

Corporate unallocated expense

 

(5,520

)

 

 

(6,150

)

Total company Adjusted EBITDA (3)

 

2,645

 

 

 

1,069

 

Third-party processing fees for hiring tax credits (4)

 

60

 

 

 

(90

)

Amortization of software as a service assets (5)

 

(1,036

)

 

 

(1,452

)

Acquisition/integration costs

 

(153

)

 

 

 

Goodwill and intangible asset impairment charge

 

(200

)

 

 

(59,674

)

Workforce reduction costs (6)

 

(3,445

)

 

 

(1,500

)

PeopleReady technology upgrade costs (7)

 

 

 

 

(39

)

COVID-19 government subsidies, net (8)

 

8,573

 

 

 

9,696

 

Other adjustments, net (9)

 

(1,883

)

 

 

(279

)

EBITDA (2)

 

4,561

 

 

 

(52,269

)

Depreciation and amortization (10)

 

(7,502

)

 

 

(7,691

)

Interest and other income (expense), net

 

2,903

 

 

 

1,741

 

Loss before tax expense

 

(38

)

 

 

(58,219

)

Income tax expense

 

(122

)

 

 

(46,491

)

Net loss

$

(160

)

 

$

(104,710

)

(1)

PeopleSolutions segment includes previously reported PeopleScout segment as well as Healthcare Staffing Professionals Inc. acquired on January 31, 2025.

(2)

We evaluate performance based on segment revenue and segment profit. Segment profit includes revenue, related cost of services, and ongoing operating expenses directly attributable to the reportable segment. Segment profit (loss) excludes depreciation and amortization expense, unallocated corporate general and administrative expense, interest expense, other income, income taxes, and other adjustments not considered to be ongoing.

(3)

See the Non-GAAP Financial Measures table on the next page for definitions of EBITDA and Adjusted EBITDA.

(4)

These third-party processing fees are associated with generating hiring tax credits.

(5)

Amortization of software as a service assets is reported in selling, general and administrative expense.

(6)

Workforce reduction costs of $3.4 million for the 13 weeks ended June 29, 2025 were reported as $0.1 million in cost of services and $3.3 million in selling, general and administrative expense. Workforce reduction costs of $1.5 million for the 13 weeks ended June 30, 2024 were reported as $0.2 million in cost of services and $1.3 million in selling, general and administrative expense.

(7)

Costs associated with upgrading legacy PeopleReady technology.

(8)

COVID-19 government subsidies net of related fees. $3.2 million reported in cost of services and $5.4 million in selling, general and administrative expense for the 13 weeks ended June 29, 2025. For the 13 weeks ended June 30, 2024, $2.9 million reported in cost of services and $6.8 million in selling, general and administrative.

(9)

Other adjustments for the 13 weeks ended June 29, 2025 include non-routine professional fees and other expenses.

(10)

Includes software depreciation reported in cost of services.

TRUEBLUE, INC.
NON-GAAP FINANCIAL MEASURES AND NON-GAAP RECONCILIATIONS

In addition to financial measures presented in accordance with U.S. GAAP, we monitor certain non-GAAP key financial measures. The presentation of these non-GAAP financial measures is used to enhance the understanding of certain aspects of our financial performance. It is not meant to be considered in isolation, superior to, or as a substitute for the directly comparable financial measures prepared in accordance with U.S. GAAP, and may not be comparable to similarly titled measures of other companies.

Non-GAAP measure

 

Definition

 

Purpose of adjusted measures

Adjusted net loss and

Adjusted net loss per diluted share

 

Net loss and net loss per diluted share, excluding:

– amortization of intangibles,

– acquisition/integration costs,

– goodwill and intangible asset impairment charge,

– workforce reduction costs,

– PeopleReady technology upgrade costs,

– COVID-19 government subsidies, net,

– other adjustments, net, and

– tax effect of the adjustments and deferred tax asset valuation allowance.

 

 

– Enhances comparability on a consistent basis and provides investors with useful insight into the underlying trends of the business.

– Used by management to assess performance and effectiveness of our business strategies.

– Provides a measure, among others, used in the determination of incentive compensation for management.

 

EBITDA and

Adjusted EBITDA

 

EBITDA excludes from net loss:

– income tax expense,

– interest and other (income) expense, net, and

– depreciation and amortization.

 

Adjusted EBITDA further excludes:

– third-party processing fees for hiring tax credits,

– amortization of software as a service assets,

– acquisition/integration costs,

– goodwill and intangible asset impairment charge,

– workforce reduction costs,

– PeopleReady technology upgrade costs,

– COVID-19 government subsidies, net, and

– other adjustments, net.

 

 

– Enhances comparability on a consistent basis and provides investors with useful insight into the underlying trends of the business.

– Used by management to assess performance and effectiveness of our business strategies.

– Provides a measure, among others, used in the determination of incentive compensation for management.

Adjusted SG&A expense

 

Selling, general and administrative expense excluding:

– third-party processing fees for hiring tax credits,

– amortization of software as a service assets,

– acquisition/integration costs,

– workforce reduction costs,

– PeopleReady technology upgrade costs,

– COVID-19 government subsidies, net, and

– other adjustments, net.

 

– Enhances comparability on a consistent basis and provides investors with useful insight into the underlying trends of the business.

1.

RECONCILIATION OF U.S. GAAP NET LOSS TO ADJUSTED NET LOSS AND ADJUSTED NET LOSS PER DILUTED SHARE

(Unaudited)

   
 

 

13 weeks ended

 

(in thousands, except for per share data)

Jun 29, 2025

 

Jun 30, 2024

 

Net loss

$

(160

)

 

$

(104,710

)

 

Amortization of intangible assets

 

885

 

 

 

1,369

 

 

Acquisition/integration costs

 

153

 

 

 

 

 

Goodwill and intangible asset impairment charge

 

200

 

 

 

59,674

 

 

Workforce reduction costs (1)

 

3,445

 

 

 

1,500

 

 

PeopleReady technology upgrade costs (2)

 

 

 

 

39

 

 

COVID-19 government subsidies, net (3)

 

(8,573

)

 

 

(9,696

)

 

Other adjustments, net (4)

 

1,883

 

 

 

279

 

 

Tax effect of adjustments and deferred tax asset valuation allowance (5)

 

 

 

 

40,855

 

 

Adjusted net loss

$

(2,167

)

 

$

(10,690

)

 

 

 

 

 

 

Adjusted net loss per diluted share

$

(0.07

)

 

$

(0.35

)

 

 

 

 

 

 

Diluted weighted average shares outstanding

 

29,856

 

 

 

30,349

 

 

 

 

 

 

 

Margin / % of revenue:

 

 

 

 

Net loss

 

%

 

 

(26.4

)%

 

Adjusted net income (loss)

 

(0.5

)%

 

 

(2.7

)%

2.

RECONCILIATION OF U.S. GAAP NET LOSS TO EBITDA AND ADJUSTED EBITDA

(Unaudited)

   
 

 

13 weeks ended

 

(in thousands)

Jun 29, 2025

 

Jun 30, 2024

 

Net loss

$

(160

)

 

$

(104,710

)

 

Income tax expense

 

122

 

 

 

46,491

 

 

Interest and other (income) expense, net

 

(2,903

)

 

 

(1,741

)

 

Depreciation and amortization (6)

 

7,502

 

 

 

7,691

 

 

EBITDA

 

4,561

 

 

 

(52,269

)

 

Third-party processing fees for hiring tax credits (7)

 

(60

)

 

 

90

 

 

Amortization of software as a service assets (8)

 

1,036

 

 

 

1,452

 

 

Acquisition/integration costs

 

153

 

 

 

 

 

Goodwill and intangible asset impairment charge

 

200

 

 

 

59,674

 

 

Workforce reduction costs (1)

 

3,445

 

 

 

1,500

 

 

PeopleReady technology upgrade costs (2)

 

 

 

 

39

 

 

COVID-19 government subsidies, net (3)

 

(8,573

)

 

 

(9,696

)

 

Other adjustments, net (4)

 

1,883

 

 

 

279

 

 

Adjusted EBITDA

$

2,645

 

 

$

1,069

 

 

 

 

 

 

 

Margin / % of revenue:

 

 

 

 

Net loss

 

%

 

 

(26.4

)%

 

Adjusted EBITDA

 

0.7

%

 

 

0.3

%

3.

RECONCILIATION OF U.S. GAAP SELLING, GENERAL AND ADMINISTRATIVE EXPENSE TO ADJUSTED SG&A EXPENSE

(Unaudited)

   
 

 

13 weeks ended

 

(in thousands)

Jun 29, 2025

 

Jun 30, 2024

 

Selling, general and administrative expense

$

89,798

 

 

$

97,018

 

 

Third-party processing fees for hiring tax credits (7)

 

60

 

 

 

(90

)

 

Amortization of software as a service assets (8)

 

(1,036

)

 

 

(1,452

)

 

Acquisition/integration costs

 

(153

)

 

 

 

 

Workforce reduction costs (1)

 

(3,311

)

 

 

(1,329

)

 

PeopleReady technology upgrade costs (2)

 

 

 

 

(39

)

 

COVID-19 government subsidies, net (3)

 

5,378

 

 

 

6,803

 

 

Other adjustments, net (4)

 

(1,883

)

 

 

(279

)

 

Adjusted SG&A expense

$

88,853

 

 

$

100,632

 

 

 

 

 

 

 

% of revenue:

 

 

 

 

Selling, general and administrative expense

 

22.7

%

 

 

24.5

%

 

Adjusted SG&A expense

 

22.4

%

 

 

25.4

%

(1)

Workforce reduction costs of $3.4 million for the 13 weeks ended June 29, 2025 were reported as $0.1 million in cost of services and $3.3 million in selling, general and administrative expense. Workforce reduction costs of $1.5 million for the 13 weeks ended June 30, 2024 were reported as $0.2 million in cost of services and $1.3 million in selling, general and administrative expense.

(2)

Costs associated with upgrading legacy PeopleReady technology.

(3)

COVID-19 government subsidies net of related fees. $3.2 million reported in cost of services and $5.4 million in selling, general and administrative expense for the 13 weeks ended June 29, 2025. For the 13 weeks ended June 30, 2024, $2.9 million reported in cost of services and $6.8 million in selling, general and administrative.

(4)

Other adjustments for the 13 weeks ended June 29, 2025 include non-routine professional fees and other expenses.

(5)

The tax effect includes the application of our statutory rate of 26% to all taxable / deductible adjustments. For the 13 weeks ended June 30, 2024, the tax effect also included a valuation allowance of $55 million recorded against our deferred tax assets. For the 13 weeks ended June 29, 2025, there was no tax effect associated with the adjustments due to the valuation allowance recorded against our deferred tax assets.

(6)

Includes software depreciation reported in cost of services.

(7)

These third-party processing fees are associated with generating hiring tax credits.

(8)

Amortization of software as a service assets is reported in selling, general and administrative expense.

 

Investor Relations
InvestorRelations@trueblue.com

Source: TrueBlue