olivLaw · US equity research
Fortrea Holdings Inc. FTRE
Services-Medical Laboratories · SIC 8071 · Vertical: Services-Medical Laboratories (SIC 8071)
Fortrea is a global contract research organization (CRO) that provides clinical development services to pharmaceutical, biotechnology and medical device companies. The company reported revenue of 2723.4 million USD in 2025 and a backlog of 7.8 billion USD at June 30, 2026, while quarterly revenue has been declining.
The AI analysis may be outdated: new filings came after its sources (see the «AI analysis» section).
At the close of 04 Nov 2026, Fortrea Holdings Inc. (FTRE) stock was 20.83 USD (−0.57% on the day), with market capitalisation 2.0 bn USD, beta 1.87, 52-week range 8.87–25.88 USD. Latest reported quarter (Q3 2026): revenue of 691.5 m USD (−1.4% YoY), net income of 600.0 k USD, diluted EPS 0.01 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
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Technical reading
- RSI (14)
- 45.4
- neutral
- Bollinger (20, 2)
- 19.22 – 25.47
- in the lower half of the band · %B 0.26 · band width 28.0%
- SMA 50 / 200
- 20.41 / 15.76
- uptrend (price > SMA50 > SMA200)
- MACD (12, 26, 9)
- 0.33 / 0.78
- MACD below signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | −1.3% | −1.1% | −0.2 pp | — |
| 3 months | +9.3% | −0.5% | +9.8 pp | — |
| 6 months | +33.2% | +4.4% | +28.8 pp | — |
| Year to date | +20.8% | +12.3% | +8.4 pp | — |
| 1 year | +114.7% | +13.5% | +101.2 pp | −3.1% |
| 3 years | −30.2% | +76.4% | −106.6 pp | +74.2% |
| 5 years | unavailable | +63.7% | unavailable | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q3 2026 · 30 Sept 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 | Q3 '26 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 697.0 m | 651.3 m | 710.3 m | 701.3 m | 660.5 m | 636.5 m | 678.2 m | 691.5 m |
| Cost of revenue | 556.1 m | 534.8 m | 576.8 m | 578.6 m | 529.4 m | 512.9 m | 539.0 m | 552.0 m |
| SG&A | 148.1 m | 121.8 m | 124.8 m | 106.8 m | 103.0 m | 100.5 m | 102.1 m | 103.8 m |
| Operating income | -55.6 m | -520.1 m | -330.3 m | -8.6 m | -13.6 m | -3.4 m | 14.8 m | 15.0 m |
| Depreciation & amortisation | 20.8 m | 19.5 m | 19.6 m | 19.6 m | 19.3 m | 19.8 m | 19.6 m | 20.0 m |
| Pre-tax income | -74.9 m | -548.0 m | -370.7 m | -28.7 m | -35.6 m | -12.3 m | -1.2 m | -3.6 m |
| Income tax | -1.0 m | 14.9 m | 4.2 m | -12.8 m | -3.1 m | 11.3 m | 12.0 m | -4.2 m |
| Net income | -61.2 m | -562.9 m | -374.9 m | -15.9 m | -32.5 m | -23.6 m | -13.2 m | 600.0 k |
| Diluted EPS | -0.68 ≈ | -6.25 | -4.14 | -0.17 | — | -0.25 | -0.14 | 0.01 |
| Operating cash flow | 17.1 m | -124.2 m | 21.8 m ≈ | 86.8 m ≈ | 129.1 m | -17.0 m | 28.9 m ≈ | 60.8 m ≈ |
| Capex | -3.2 m | 2.9 m | 7.5 m ≈ | 7.3 m ≈ | 7.5 m | 8.0 m | 9.0 m ≈ | 8.3 m ≈ |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Fiscal years
| Fiscal year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | 3.1 bn | 2.8 bn | 2.8 bn | 2.7 bn | 2.7 bn |
| Revenue YoY | unavailable | −7.2% | +0.2% | −5.1% | +1.0% |
| Net income | 98.0 m | 186.2 m | -25.2 m | -328.5 m | -986.2 m |
| Net income YoY | unavailable | +90.0% | −113.5% | unavailable | unavailable |
| Diluted EPS | 1.10 | 2.09 | -0.29 | -3.67 | -10.81 |
| Diluted EPS YoY | unavailable | +90.0% | −113.9% | unavailable | unavailable |
| net % | 3.2% | 6.6% | -0.9% | -12.2% | -36.2% |
| Free cash flow | 143.3 m | 28.3 m | 128.1 m | 237.3 m | 88.3 m |
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2025 · 31 Dec 2025
- Cash
- 174.6 m USD
- Financial debt
- 1.1 bn USD
- Net debt
- 878.2 m USD
- Equity
- 563.5 m USD
- Total assets
- 2.7 bn USD
- Debt / equity
- 1.87x
- Current ratio
- 0.98x
- ROE
- -102.4%
- ROA
- -31.3%
- FCF margin
- 3.2%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|
| Revenue | 3.1 bn | 2.8 bn | 2.8 bn | 2.7 bn | 2.7 bn | SEC (XBRL)· 26 Feb 2026verified |
| Cost of revenue | 2.5 bn | 2.1 bn | 2.3 bn | 2.2 bn | 2.2 bn | SEC (XBRL)· 26 Feb 2026verified |
| Gross profit | 604.4 m ≈ | 724.4 m ≈ | 590.6 m ≈ | 534.2 m ≈ | 503.8 m ≈ | SEC (XBRL)· 26 Feb 2026derived |
| SG&A | 303.1 m | 416.1 m | 448.1 m | 560.7 m | 456.4 m | SEC (XBRL)· 26 Feb 2026verified |
| Operating income | 114.3 m | 187.1 m | 32.0 m | -161.9 m | -872.6 m | SEC (XBRL)· 26 Feb 2026verified |
| Depreciation & amortisation | 166.3 m | 93.6 m | 98.0 m | 86.9 m | 78.0 m | SEC (XBRL)· 26 Feb 2026verified |
| EBITDA | 280.6 m ≈ | 280.7 m ≈ | 130.0 m ≈ | -75.0 m ≈ | -794.6 m ≈ | SEC (XBRL)· 26 Feb 2026derived |
| Interest expense | 200.0 k | 200.0 k | 69.8 m | — | — | SEC (XBRL)· 13 Mar 2024verified |
| Pre-tax income | 136.4 m | 187.0 m | -30.5 m | -275.0 m | -983.0 m | SEC (XBRL)· 26 Feb 2026verified |
| Income tax | 38.4 m | 41.1 m | 1.2 m | -3.5 m | 3.2 m | SEC (XBRL)· 26 Feb 2026verified |
| Net income | 98.0 m | 186.2 m | -25.2 m | -328.5 m | -986.2 m | SEC (XBRL)· 26 Feb 2026verified |
| Diluted EPS | 1.10 | 2.09 | -0.29 | -3.67 | -10.81 | SEC (XBRL)· 26 Feb 2026verified |
| Weighted average diluted shares | 88.8 m | 88.8 m | 88.8 m | 89.5 m | — | SEC (XBRL)· 03 Mar 2025verified |
≈ computed by olivLaw from the reported lines of the same year: Revenue − Cost of revenue; Operating income + Depreciation & amortisation.
Balance sheet · USD
| Line | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|
| Cash | 94.6 m | 112.0 m | 108.6 m | 118.5 m | 174.6 m | SEC (XBRL)· 26 Feb 2026verified |
| Current assets | — | 1.2 bn | 1.3 bn | 948.2 m | 897.2 m | SEC (XBRL)· 26 Feb 2026verified |
| Property, plant & equipment, net | — | 164.9 m | — | — | — | SEC (XBRL)· 14 Aug 2023verified |
| Goodwill | 2.1 bn | 1.7 bn | 1.7 bn | 1.7 bn | 960.0 m | SEC (XBRL)· 26 Feb 2026verified |
| Intangibles (excl. goodwill) | — | 823.3 m | 728.1 m | 655.7 m | 622.0 m | SEC (XBRL)· 26 Feb 2026verified |
| Total assets | — | 4.3 bn | 4.3 bn | 3.6 bn | 2.7 bn | SEC (XBRL)· 26 Feb 2026verified |
| Accounts payable | — | 81.5 m | 132.9 m | 138.2 m | 29.7 m | SEC (XBRL)· 26 Feb 2026verified |
| Short-term debt | — | 0 | 26.1 m | 74.8 m | 4.8 m | SEC (XBRL)· 26 Feb 2026verified |
| Long-term debt | — | 0 | 1.6 bn | 1.0 bn | 1.0 bn | SEC (XBRL)· 26 Feb 2026verified |
| Current liabilities | — | 699.0 m | 778.4 m | 949.5 m | 913.3 m | SEC (XBRL)· 26 Feb 2026verified |
| Total liabilities | — | 945.3 m | 2.6 bn | 2.2 bn | 2.2 bn | SEC (XBRL)· 26 Feb 2026verified |
| Equity | 3.3 bn † | 3.3 bn † | 1.7 bn † | 1.4 bn † | 563.5 m † | SEC (XBRL)· 26 Feb 2026verified |
† equity attributable to the parent's shareholders: in these years the issuer no longer reports the total including non-controlling interests.
Cash flow · USD
| Line | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|
| Operating cash flow | 169.8 m | 82.7 m | 168.4 m | 262.8 m | 113.5 m | SEC (XBRL)· 26 Feb 2026verified |
| Capex | 26.5 m | 54.4 m | 40.3 m | 25.5 m | 25.2 m | SEC (XBRL)· 26 Feb 2026verified |
| Free cash flow | 143.3 m ≈ | 28.3 m ≈ | 128.1 m ≈ | 237.3 m ≈ | 88.3 m ≈ | SEC (XBRL)· 26 Feb 2026derived |
| Investing cash flow | -26.2 m | -54.0 m | -31.8 m | 251.6 m | 14.4 m | SEC (XBRL)· 26 Feb 2026verified |
| Financing cash flow | -128.5 m | -6.3 m | -140.8 m | -497.8 m | -76.3 m | SEC (XBRL)· 26 Feb 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
1 indicators that do not apply to the sector.
Valuation
olivLaw classification
- score weight coverage: 58.3% of at least 60%
A scoring methodology on indicators and valuation, not investment advice.
Closing price
04 Nov 2026Source: olivLaw, closing series
Market cap: 2.0 bn USD
Key indicators
Coverage and freshness
Score by group
58% · Insufficient data
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 5.70 – 7.20 USD.
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (USD per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)unavailable · the reported interest expense is far older than the latest period (the filer changed its XBRL tag): a stale figure is not used
- Peers: EV/EBITDA5.70 – 7.20 (Mid 6.27)4 companies used · median multiple 15.7x · quartiles 15.1x – 16.7xAMS, BLLN, DGX, LH
- Peers: P/Eunavailable · the base of the ratio is not positive
- Dividend discount (DDM)unavailable · the company pays no dividend: a dividend model needs an explicit initiation assumption
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Insufficient data
Minimum-evidence gate: score weight coverage: 58.3% of at least 60%
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | 0.7% | 63 (vs peers) | 18% |
| Net margin · Quality | -2.6% | 65 (vs peers) | 11% |
| FCF conversion · Quality | unavailable | unavailable | — |
| Revenue CAGR 3Y · Growth | -1.4% | 0 (on a fixed band) | 14% |
| EPS CAGR 3Y · Growth | unavailable | unavailable | — |
| Net debt / EBITDA · Balance sheet | 9.1x | 20 (vs peers) | 18% |
| Interest coverage · Balance sheet | unavailable | unavailable | — |
| Current ratio · Balance sheet | 1.0x | 14 (on a fixed band) | 7% |
| P/E (TTM) · Valuation | unavailable | unavailable | — |
| EV/EBITDA · Valuation | 31.1x | 0 (vs peers) | 18% |
| FCF yield · Valuation | 8.4% | 100 (on a fixed band) | 14% |
| Shareholder yield (distributions) · Returns | unavailable | unavailable | — |
| Payout ratio (FCF) · Returns | unavailable | unavailable | — |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet18/100 · 2/3 factors with a value
- Growth· partial0/100 · 1/2 factors with a value
- Quality64/100 · 2/3 factors with a value
- Returns· partialunavailable · 0/2 factors with a value
- Valuation44/100 · 2/3 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
Fortrea Holdings Inc. (FTRE). Latest full fiscal year: 2025; data up to 2026-09-30.
Figures computed from the financial statements: revenue 2.7 bn USD in 2025; YoY growth 1.0%; net margin -2.6%; ROE -12.3%; net debt/EBITDA 9.1x.
The estimated value range is 5.70–7.20 USD per share (median of 1 methods, agreement: single method); assumptions are illustrative. Against the central value of 6.27 USD, the price of 20.83 USD leaves a potential of -69.9% (value / price − 1) and a margin of safety of -232.3% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
Insufficient data for a verdict (score weight coverage: 58.3% of at least 60%).
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- FCF yield: 8.4%
What contradicts it
- Revenue CAGR 3Y: -1.4%
- Net debt / EBITDA: 9.1x
- Current ratio: 1.0x
- EV/EBITDA: 31.1x
- The price is above the estimated value range
Not assessed (insufficient data or a ratio without meaning): FCF conversion, EPS CAGR 3Y, Interest coverage, P/E (TTM), Shareholder yield (distributions), Payout ratio (FCF).
Versus the vertical median
Services-Medical Laboratories (SIC 8071) · same industry (4-digit SIC) · compared with 23 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| NTRANatera, Inc. | 56.4 bn | — | -12.5% | -7.1% | +35.9% | +64% / +599% |
| LHLabcorp Holdings Inc. | 29.9 bn | 30.2 | 11.4% | 6.9% | +7.2% | +37% / +70% |
| DGXQuest Diagnostics Inc | 28.1 bn | 25.5 | 15.2% | 9.5% | +11.8% | +35% / +86% |
| GHGuardant Health, Inc. | 22.6 bn | — | — | -38.3% | +32.9% | +55% / +570% |
| CAICaris Life Sciences, Inc. | 9.5 bn | 97.6 | 17.2% | 9.2% | +97.0% | +30% / unavailable |
| GRALGRAIL, Inc. | 6.4 bn | — | -16.1% | -236.9% | +17.2% | +30% / unavailable |
| RDNTRadNet, Inc. | 6.3 bn | — | -2.1% | -0.9% | +11.5% | −3% / +142% |
| CDNACaredx, Inc. | 4.5 bn | 35.9 | 33.0% | 25.9% | +13.8% | +380% / +784% |
| VCYTVeracyte, Inc. | 4.2 bn | 37.5 | 8.8% | 20.4% | +16.0% | +11% / +105% |
| FTREFortrea Holdings Inc. | 2.0 bn | — | -12.3% | -2.6% | +1.0% | +115% / −30% |
| PSNLPersonalis, Inc. | 1.7 bn | — | -62.1% | -147.7% | −17.7% | +47% / +932% |
| BLLNBillionToOne, Inc. | 1.3 bn | 118.4 | 30.2% | 11.3% | +100.0% | −13% / unavailable |
| CSTLCastle Biosciences, Inc. | 1.1 bn | — | -4.2% | -5.4% | +3.7% | −11% / +79% |
| FLGTFulgent Genetics, Inc. | 541.5 m | — | -8.0% | -26.0% | +13.8% | −33% / −29% |
| YDESYD Bio Limited | 492.0 m | — | -445.1% | -1,392.6% | +16.9% | −40% / unavailable |
| BDSXBiodesix, Inc. | 226.7 m | — | -540.0% | -27.0% | +24.1% | +160% / −28% |
| XGNExagen Inc. | 206.2 m | — | -113.8% | -26.6% | +19.7% | +8% / +363% |
| SERASera Prognostics, Inc. | 59.0 m | — | -49.7% | -34,866.7% | +5.2% | −39% / +4% |
| AMSAmerican Shared Hospital Services | 8.2 m | — | -7.5% | -5.8% | −0.9% | −43% / −48% |
| MDXHMdxhealth SA | 8.0 m | — | -2,440.4% | -31.1% | +19.8% | −96% / −95% |
| ACONAclarion, Inc. | 5.0 m | — | -59.0% | -10,978.5% | +65.6% | −72% / −100% |
| ADVBAdvanced Biomed Inc. | 3.5 m | 0.4 | 84.8% | 5,231.3% | unavailable | −75% / unavailable |
| BGLCBioNexus Gene Lab Corp. | 2.8 m | — | -33.7% | -82.4% | −21.9% | −79% / −90% |
| BNRBurning Rock Biotech Limited | 0 | — | -10.1% | -10.3% | +9.2% | −41% / +55% |
1- and 3-year price returns: for FTRE from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable |
| 3 years | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable |
| 5 years | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable |
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 29 Jul 2026; since then the company filed 8-K (29 Oct 2026 · results), 10-Q (29 Oct 2026).
In brief
Fortrea is a global contract research organization (CRO) that provides clinical development services to pharmaceutical, biotechnology and medical device companies. The company reported revenue of 2723.4 million USD in 2025 and a backlog of 7.8 billion USD at June 30, 2026, while quarterly revenue has been declining 123.
SWOT
Strengths
- The company has more than three decades of clinical development history, a diversified customer base and a high share of repeat customers, which gives visibility into future revenue 1.
- Oncology expertise and depth in other fast-growing therapeutic areas are competitive advantages, supported by a clinical site network with long-standing relationships 1.
- Fortrea reported a book-to-bill ratio above 1.0 for the last four quarters, indicating new demand that exceeds recognized revenue 3.
Weaknesses
- Revenue fell in the first six months of 2026 compared with the same period of 2025, and demand for the FSP model was weaker 2.
- The company recorded a major goodwill impairment in 2025 tied to the Clinical Development unit, showing vulnerability in asset value 1.
- Customer concentration is significant, with one customer representing a substantial share of revenue, and customers can cancel contracts on short notice 1.
Opportunities
- Rising biopharma R&D spending and the growth of advanced therapies could create new demand for complex clinical services 1.
- Investment in artificial intelligence and workflow automation could improve study speed and efficiency, if it produces measurable results 1.
- If outsourcing to CROs keeps growing, the company could capture a larger share of its addressable market 1.
Threats
- Lower biotech funding or changes in government policy could lead customers to delay or cancel studies 13.
- Competitors that control clinical site networks could gain priority access to investigators and patients, disadvantaging Fortrea 1.
- Currency fluctuations and trade tariffs could affect margins and revenue from international operations 13.
Risks
- Cancellation or delay of projectshigh
Customers can cancel or delay projects with short notice, which could reduce revenue and margins, especially for the Full Service model 1.
- Customer concentrationhigh
A single customer represents a significant share of revenue, and losing it could materially affect financial results 1.
- Value of goodwillmedium
The 2025 impairment shows that the value of assets tied to clinical development could be reassessed again if performance weakens 1.
- Regulatory and funding risksmedium
Changes in regulation or government policy could reduce demand for the company's services 1.
- Currency and tariff risklow
International operations expose the company to currency fluctuations and trade policy, which could affect results 13.
Investment thesis
What would need to be true (bull case)
- If the book-to-bill ratio stays above 1.0 and the backlog keeps growing, the company could gradually recover revenue lost in early 2026 23.
- The raised annual guidance, with higher revenue and adjusted EBITDA, could indicate better operational execution in the second half of the year 3.
- Expertise in oncology and other fast-growing therapeutic areas could allow the company to capture a larger share of an expanding market 1.
What would break the thesis
- The revenue decline in the first half of 2026 and weaker demand for the FSP model could signal weakening demand rather than a temporary issue 2.
- Dependence on one major customer and on industry research spending could make revenue volatile if funding declines 1.
- The second-quarter GAAP net loss and the gap to adjusted profitability could suggest that improvement in profitability remains fragile 3.
What to watch
- Revenue trend and 2026 guidanceQ3 2026
- Book-to-bill ratio and backlog developmentQ3 2026
- Customer concentration and contract cancellationsnext 10-K
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 29 Jul 2026; since then the company filed 8-K (29 Oct 2026 · results), 10-Q (29 Oct 2026).
The business
Fortrea Holdings Inc. is a CRO offering biopharmaceutical and medical device development solutions, from phase I through phase IV clinical trials, along with clinical pharmacology and consulting services 1. The company was separated from Labcorp through a spin-off completed on June 30, 2023, and trades on Nasdaq under FTRE 1. Activity is organized in one reporting segment, Clinical Services; revenue for fiscal 2025 was 2723.4 million USD, and the company had about 14000 employees in mid-2026 12.
Segments
Clinical Services
The single reporting segment, Clinical Services, includes clinical development, the company's largest revenue offering for five years, clinical pharmacology with its own research units in Leeds, Dallas, Daytona and Madison, and consulting on regulatory strategy and market access 1. Delivery models are Full Service, Functional Service Provider and Hybrid, each with a different level of customer control 1.
Clinical pharmacology
The research units, equipped with cGMP pharmacies, support first-in-human and biopharma label support studies, and the company states it is a recognized leader in this area 1. Revenue from pharmacology rose in 2025 but fell in the second quarter of 2026 as demand weakened and pass-through costs declined 12.
Market context
The company estimates its addressable market at approximately 41 billion USD, out of pharmaceutical and biotechnology clinical development spending forecast at about 145 billion USD in 2026 1. Large biopharma R&D spend is forecast to grow about 4-5% a year over 2025-2030, and outsourcing to CROs could support demand, although biotech funding was weaker in the first half of 2025 1.
Trends
- Rising R&D spendingtailwind
Biopharma R&D spending is forecast to grow, which could generate more clinical trials and demand for CRO services 1.
- Outsourcing to CROstailwind
Pharmaceutical companies increasingly outsource development to reduce costs and keep flexibility, which supports demand for Functional Service Provider models 1.
- Delays and cancellations of projectsheadwind
Customers can cancel or delay projects without significant notice before contracting, and demand for the Full Service model was affected by delays, which could reduce near-term revenue 12.
- Biotech funding and public policymixed
Biotech funding weakened in the first half of 2025 due to policy and macroeconomic factors, and changes in regulation or government funding could affect demand 13.
Competitive position
The filings do not name direct competitors, but note that several competitors have bought site networks or site management organizations, which gives them priority access to certain locations 1. Fortrea supports its position with more than 30 years of experience, long-term customer relationships and oncology expertise 1.
- CROs with owned clinical site networks
The filings mention competitors that bought site networks or site management organizations, without naming them.
- Clinical site management organizations
These entities could offer priority access to investigators and patients, which could disadvantage Fortrea in certain regions.
- Other clinical development service providers
Competition is based on flexible delivery models and therapeutic expertise, according to the company's description.
- Global contract research organizations
Global competition can influence winning new contracts and retaining large customers.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
Loading the links…
News & filings
In the press
No news in our archive over the last 180 days.
SEC filings
- Quarterly report29 Oct 2026
- Current report29 Oct 2026Results of operations · Financial statements and exhibits
- Current report30 Sept 2026Departure or appointment of officers
- Current report10 Sept 2026Departure or appointment of officers
- Quarterly report29 Jul 2026
- Current report29 Jul 2026Results of operations · Departure or appointment of officers · Financial statements and exhibits
- Current report14 Jul 2026Departure or appointment of officers
- Current report26 Jun 2026Departure or appointment of officers · Regulation FD disclosure · Financial statements and exhibits
- Current report12 Jun 2026Shareholder vote
- Quarterly report05 May 2026
Sources
- [1] Form 10-K, fiscal year ended 2025-12-31 · SEC / Fortrea Holdings Inc. · 26 Feb 2026
- [2] Form 10-Q, quarter ended 2026-06-30 · SEC / Fortrea Holdings Inc. · 29 Jul 2026
- [3] Form 8-K, results release (exhibit 99.1) · SEC / Fortrea Holdings Inc. · 29 Jul 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.