FTREFortrea Holdings Inc.

Services-Medical Laboratories

Revenue: $2.7B; 1.0% YoY
Operating margin: -32.0%; 434% YoY
EBITDA: −$795M; 959% YoY
Market cap: $2.1B
Employees: 14,300; $190K revenue each
Net debt / EBITDA: —; $811M net debt
AI in 10-K: 6.7; mentions per 10K words

Takeover score 2 of 13

Fixable underperformance 1 of 7

TSR below peersYes
3 of 3 years
3+ of last 5 years
High CEO pay despite TSRNo
—
Median CEO pay ≥ $15M while TSR trails
Earnings not backed by cashNo
—
Cash flow under 80% of net income
Dilutive SBCNo
3% of revenue
Over 10% of revenue
Payouts exceed cash flowNo
0% of cash flow
Buybacks + dividends over cash flow
Goodwill-heavyNo
35% of assets
Over 40% of assets
Shareholder dissentNo
92% lowest support
Any vote under 80% support

Buyer economics 1 of 4

Low revenue per employeeNo
$190K · 36th pct
Bottom quartile of its SIC industry
Quiet on AINo
6.7 per 10K words · 87th pct
Bottom quartile of AI mentions in 10-Ks
Net cashNo
—
More cash than debt, positive EBITDA
Buyout-sizedYes
$2.1B market cap
Market cap $500M–$5B

Catalysts 0 of 2

Active 13DNo
0 filings
Active-intent 13D in 18 months
Net insider sellingNo
−$5M net
Net sales over $10M in 12 months

Financials

Metric	FY2021	FY2022	FY2023	FY2024	FY2025	YoY	Trend
Revenue	$3.1B	$2.8B	$2.8B	$2.7B	$2.7B	1.0%
Operating income	$114M	$187M	$32M	−$162M	−$873M	439%
Net income	$98M	$186M	−$25M	−$329M	−$989M	201%
Operating cash flow	$170M	$83M	$168M	$263M	$114M	57%
Capex	$27M	$54M	$40M	$26M	$25M	1.2%
Stock-based comp	$28M	$25M	$43M	$58M	$74M	27%

Deal filings

None.

13D filers

Filed	Filer	Form	Stake	Intent
May 12, 2025	Starboard Value LP	SCHEDULE 13D/A	3.0%	Passive
Feb 24, 2025	Starboard Value LP	SCHEDULE 13D/A	16.3%	Active
Jan 31, 2025	Starboard Value LP	SCHEDULE 13D/A	12.9%	Passive
Feb 26, 2024	Starboard Value LP	SC 13D/A	6.9%	Passive
Oct 17, 2023	Starboard Value LP	SC 13D	8.7%	Passive

Insider trading

Open-market buys, 12 mo: $0 · 0
Open-market sells, 12 mo: $5M · 24
Net: −$5M

Pay vs performance

Year	CEO total comp	Comp actually paid	TSR (indexed)	Peer TSR
FY2025	—	—	51	121
FY2024	—	—	55	107
FY2023	—	—	103	104