Fortrea (FTRE)
NASDAQHealth CareBiotechnologySnapshot 2026-09-04
$17.70-4.94%
Close 2026-09-04 · 1-day change
NASDAQHealth CareBiotechnologySnapshot 2026-09-04
QuarterlyIQ Insights · FTRE
What must go right, what could break, what the price assumes, and what evidence comes next.
The current health of the standing investment case.
Recent financial performance is holding in the top half of its industry — the reason to own it looks intact.
One-year growth currently built into the price, compared with our model's estimate.
| Measure | Marker shape | Value |
|---|---|---|
| Growth built into the price | circle | 3.4% |
| Our one-year growth estimate | diamond | 1.9% |
For each item: what to watch, what would become a concern, and what would make it less concerning.
A reporting-risk estimate, not a forecast of the stock-price response.
Historical relationships that met the evidence threshold. They do not prove cause or forecast a move.
Usually moved in the same direction.
Price observations: 365 days
Most sensitive to the broad stock market.
Based on historical daily prices through 2026-09-04.
Past price behavior in dollars on a $10,000 position. This does not measure permanent business risk.
How much price usually moves either way.
Use the underlying financial and sector pages to investigate the cause.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Growth built into the price is above our model estimate.
The price assumes 1.5 percentage points more one-year growth.
The one-year revenue growth assumption on Valuation.
Model as of 2026-09-04 · Compared with 398 industry peers · Company calendar date is not available
FTRE — CFO transition
Dated 2026-07-29
Interim Chief Financial Officer — David Smith: David Smith was appointed as Interim Chief Financial Officer due to the pending litigation involving Jason Knoblauch.
Why it matters: Higher adjusted EBITDA shows Fortrea is working to make more money and grow margins.
Supportive ifAdjusted EBITDA is over $60 million in Q3. This shows good cost management.
Worry ifAdjusted EBITDA is under $58.7 million. This may mean there are cost control issues.
Why it matters: Better adjusted EBITDA is important for profit growth. Good performance shows good cost control.
Supportive ifAdjusted EBITDA is more than $205 million. This shows strong performance.
Worry ifAdjusted EBITDA is below $205 million. This shows possible margin issues.
Why it matters: A bigger backlog shows strong future revenue potential. It shows demand for Fortrea's services.
Supportive ifBacklog grows to over $8 billion.
Worry ifBacklog declines or stays below $7.8 billion.
Why it matters: Revenue stabilization is key for Fortrea's growth strategy. A decline may signal ongoing challenges.
Worry ifQ2 2026 revenue reported below $636.5 million, continuing the decline from Q1 2026.
Less concerning ifQ2 2026 revenue was over $636.5 million. This shows a recovery.
We watch for confirming and disproving signals on each item. Resolutions are found automatically where possible and checked by hand for unclear cases. Last 90 days shown.
A larger daily loss that occurred about once in every 20 trading days.
Deepest peak-to-trough drop in the last year.
| Measure | Value | Meaning |
|---|---|---|
| Typical day | ±$234 on $10,000 · ±2.3% | How much price usually moves either way. |
| Bad day | $686 loss on $10,000 · 6.9% | A larger daily loss that occurred about once in every 20 trading days. |
| Largest peak-to-trough drop in the past year | $5,179 loss on $10,000 · 51.8% | Deepest peak-to-trough drop in the last year. |
Past year. 1.00 means similar movement; 1.20 means about 20% more.
Past year. 1.00 means similar movement to the sector. This is secondary context.
Latest 30 trading days, shown as an annual percentage.
Latest 252 trading days, shown as an annual percentage.
20-trading-day average in US dollars.
Trading days used by the source risk snapshot.
Past results, not a forecast. Not investment advice.
Why it matters: Positive cash flow from operations shows financial health. It shows good management of costs and revenue.
Supportive ifOperating cash flow for Q2 2026 turns positive after being negative in Q1.
Worry ifOperating cash flow remains negative in Q2 2026.
Why it matters: A big drop in revenue might show problems with client demand or execution.
Worry ifQ3 revenue falls more than 5% year over year from $678.2 million.
Less concerning ifQ3 revenue remains stable or grows year over year.
Why it matters: Positive cash flow shows Fortrea can manage its money and invest in growth.
Supportive ifCash flow from operations is positive, over $28.9 million in Q2.
Worry ifCash flow turns negative again, raising concerns about financial health.
Why it matters: Improving operating income shows Fortrea is managing costs well. It supports long-term growth.
Supportive ifOperating income for Q2 is better than Q1.
Worry ifOperating income for Q2 is lower than Q1.
Why it matters: Growth in new business awards shows demand for Fortrea's services. It shows the company can attract clients.
Supportive ifNet new business awards increase by more than 10% compared to the previous quarter.
Worry ifNet new business awards decrease or grow less than 5% compared to the previous quarter.
Why it matters: A drop in sector revenue growth could impact Fortrea's performance. It shows broader challenges.
Worry ifSector revenue growth drops below its median of 10% year over year.
Less concerning ifSector revenue growth remains above its median.
Why it matters: A strong book-to-bill ratio shows good demand and future revenue growth.
Supportive ifBook-to-bill ratio for Q2 is reported above 1.1x.
Worry ifBook-to-bill ratio for Q2 drops below 1.0x.
Why it matters: The new CFO's plan may change Fortrea's financial strategy and focus. This affects investors.
Watch forManagement spoke positively about the new CFO. They said he is helping with strategy and actions.
Also watch forThere are concerns about the CFO change hurting financial performance.
Why it matters: Stabilizing or declining revenue will show if Fortrea can maintain its growth momentum. A strong backlog supports this.
Worry ifQ3 revenue shows no growth or declines compared to Q2's $678.2 million.
Less concerning ifQ3 revenue is over $700 million. This shows strong demand.