TrueBlue Narrows Losses Amid Revenue Growth, Debt Rises

Ticker: TBI · Form: 10-Q · Filed: Nov 3, 2025 · CIK: 768899

Trueblue, INC. 10-Q Filing Summary
FieldDetail
CompanyTrueblue, INC. (TBI)
Form Type10-Q
Filed DateNov 3, 2025
Risk Levelmedium
Pages15
Reading Time18 min
Sentimentmixed

Sentiment: mixed

Topics: Staffing Industry, Quarterly Earnings, Net Loss Improvement, Revenue Growth, Increased Debt, Government Assistance, Goodwill Impairment

Related Tickers: TBI

TL;DR

**TBI is showing signs of a turnaround with narrower losses and revenue growth, but watch that ballooning debt.**

AI Summary

TrueBlue, Inc. reported a net loss of $1.916 million for the thirteen weeks ended September 28, 2025, a significant improvement from the $7.635 million net loss in the prior year period. For the thirty-nine weeks ended September 28, 2025, the net loss was $16.424 million, substantially better than the $114.043 million net loss for the same period in 2024. Revenue from services increased to $431.266 million for the thirteen-week period, up from $382.357 million, and to $1.197 billion for the thirty-nine-week period, up from $1.181 billion. Gross profit, however, decreased to $97.892 million for the thirteen weeks from $100.037 million, and to $277.798 million for the thirty-nine weeks from $303.846 million. Selling, general and administrative expenses decreased to $91.728 million for the thirteen weeks from $99.973 million, and to $276.147 million for the thirty-nine weeks from $303.928 million. The company recognized $9.2 million in government assistance for payroll tax credits during the thirty-nine weeks ended September 28, 2025, which positively impacted cost of services and SG&A. A goodwill and intangible asset impairment charge of $0.2 million was recorded for the thirty-nine weeks ended September 28, 2025, a sharp reduction from the $59.674 million charge in the prior year. Long-term debt increased significantly to $68.200 million from $7.600 million at December 29, 2024, primarily due to a net change in the revolving credit facility of $60.600 million.

Why It Matters

TrueBlue's ability to significantly reduce its net loss while growing revenue suggests improving operational efficiency and a potential turnaround, which is crucial for investor confidence. The substantial increase in long-term debt, primarily from the revolving credit facility, indicates a strategic financing move, possibly for working capital or acquisitions, which investors should scrutinize for its impact on future profitability and leverage. For employees, a more stable financial outlook could mean greater job security and potential for growth. Customers might benefit from a more financially robust TrueBlue, potentially leading to better service offerings. In the competitive staffing market, TrueBlue's improved performance could allow it to better compete with rivals by investing in technology or expanding services.

Risk Assessment

Risk Level: medium — The company's long-term debt increased dramatically from $7.600 million at December 29, 2024, to $68.200 million at September 28, 2025, primarily due to a $60.600 million net change in the revolving credit facility. While net losses have decreased, the significant increase in leverage could pose a risk if market conditions deteriorate or interest rates rise, impacting the company's ability to service its debt.

Analyst Insight

Investors should monitor TrueBlue's upcoming earnings calls for management's explanation of the increased long-term debt and its intended use. Evaluate the company's cash flow generation in future quarters to ensure it can comfortably manage its higher debt load, especially given the net cash used in operating activities of $53.674 million for the thirty-nine weeks ended September 28, 2025.

Financial Highlights

debt To Equity
0.22
revenue
$1.197B
operating Margin
-1.44%
total Assets
$690.527M
total Debt
$68.200M
net Income
-$16.424M
eps
N/A
gross Margin
23.20%
cash Position
$19.893M
revenue Growth
+1.37%

Revenue Breakdown

SegmentRevenueGrowth
PeopleReady$1,197,819+1.37%

Key Numbers

Key Players & Entities

FAQ

What were TrueBlue's revenues for the thirteen weeks ended September 28, 2025?

TrueBlue, Inc. reported revenue from services of $431.266 million for the thirteen weeks ended September 28, 2025, an increase from $382.357 million in the same period of the prior year.

How did TrueBlue's net income change for the thirty-nine weeks ended September 28, 2025?

For the thirty-nine weeks ended September 28, 2025, TrueBlue reported a net loss of $16.424 million, which is a substantial improvement compared to the net loss of $114.043 million for the thirty-nine weeks ended September 29, 2024.

What was the primary reason for the increase in TrueBlue's long-term debt?

TrueBlue's long-term debt increased significantly from $7.600 million at December 29, 2024, to $68.200 million at September 28, 2025, primarily due to a $60.600 million net change in its revolving credit facility.

Did TrueBlue recognize any government assistance during the period?

Yes, TrueBlue recognized $3.2 million within cost of services and $6.0 million within SG&A expense, totaling $9.2 million, for certain payroll tax credits during the thirty-nine weeks ended September 28, 2025.

What was the goodwill and intangible asset impairment charge for TrueBlue in the latest period?

TrueBlue recorded a goodwill and intangible asset impairment charge of $0.2 million for the thirty-nine weeks ended September 28, 2025, which is a significant reduction from the $59.674 million charge in the prior year period.

How did TrueBlue's cash flows from operating activities perform?

TrueBlue reported net cash used in operating activities of $53.674 million for the thirty-nine weeks ended September 28, 2025, an increase from $23.189 million used in the same period of the prior year.

What new accounting standards might impact TrueBlue in the future?

TrueBlue is evaluating ASU 2023-09 on income tax disclosures (effective fiscal 2025), ASU 2025-05 on credit losses (effective fiscal 2026), ASU 2024-03/2025-01 on disaggregation of income statement expenses (effective fiscal 2027), and ASU 2025-06 on internal-use software (effective fiscal 2027).

What was the change in TrueBlue's total assets?

TrueBlue's total assets increased to $690.527 million as of September 28, 2025, from $675.376 million as of December 29, 2024.

How many shares of TrueBlue common stock were outstanding as of October 26, 2025?

As of October 26, 2025, there were 29,939,468 shares of TrueBlue's common stock outstanding.

What was TrueBlue's gross profit for the thirteen weeks ended September 28, 2025?

TrueBlue's gross profit for the thirteen weeks ended September 28, 2025, was $97.892 million, a decrease from $100.037 million in the comparable period of the prior year.

Risk Factors

Industry Context

TrueBlue operates in the staffing and workforce solutions industry, which is sensitive to economic cycles and labor market dynamics. The industry is characterized by a mix of large, established players and smaller niche providers. Trends include increasing demand for flexible work arrangements, the gig economy, and the need for specialized skills, alongside ongoing challenges related to talent acquisition and retention.

Regulatory Implications

The company's operations are subject to various labor laws, employment regulations, and tax compliance requirements. The recognition of government assistance, such as payroll tax credits, highlights the impact of government policy on the industry. Changes in labor laws or tax regulations could materially affect TrueBlue's operating costs and profitability.

What Investors Should Do

  1. Monitor debt levels and repayment capacity.
  2. Analyze the sustainability of revenue growth and gross margins.
  3. Evaluate the trend in operating cash flow.
  4. Assess the impact of government assistance and potential future benefits.

Key Dates

Glossary

Goodwill and intangible asset impairment charge
A non-cash expense recognized when the carrying value of goodwill or intangible assets on the balance sheet exceeds their fair value, indicating a loss in value. (A significant reduction in this charge to $0.2 million from $59.674 million in the prior year period indicates improved asset valuations or fewer impairment events.)
Revolving credit facility
A type of credit line that allows a company to borrow, repay, and re-borrow funds up to a certain limit over a specified period. (A $60.6 million net change in this facility was the primary driver for the substantial increase in TrueBlue's long-term debt.)
Government assistance
Financial aid provided by a government to businesses, often to support specific activities like payroll or job retention, as in the case of payroll tax credits. (TrueBlue recognized $9.2 million in payroll tax credits, which positively impacted cost of services and SG&A, demonstrating a benefit from government programs.)
Cost of services
Direct costs incurred by a company in providing its services, including labor, materials, and overhead directly related to service delivery. (This line item was positively impacted by government assistance, contributing to the overall improvement in the company's profitability metrics.)
Selling, general and administrative expense (SG&A)
Expenses incurred by a company that are not directly related to the production of goods or services, including marketing, sales, and administrative costs. (SG&A expenses decreased year-over-year and were also positively impacted by government assistance, contributing to the reduced net loss.)

Year-Over-Year Comparison

TrueBlue has demonstrated a significant improvement in its net loss, reducing it from $114.043 million to $16.424 million for the thirty-nine-week period. Revenue from services saw a modest increase of 1.37% to $1.197 billion. However, gross profit declined, and selling, general, and administrative expenses also decreased, partly due to government assistance. A major concern is the substantial increase in long-term debt, rising from $7.6 million to $68.2 million, driven by the revolving credit facility, alongside a worsening trend in operating cash flow.

Filing Stats: 4,461 words · 18 min read · ~15 pages · Grade level 15.7 · Accepted 2025-11-03 16:13:57

Filing Documents

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Consolidated financial statements (unaudited)

Item 1. Consolidated financial statements (unaudited) 3 Consolidated Balance Sheets 3 Consolidated Statements of Operations and Comprehensive Income (Loss) 4 Consolidated Statements of Cash Flows 5

Notes to consolidated financial statements

Notes to consolidated financial statements 6

Management's discussion and analysis of financial condition and results of operations

Item 2. Management's discussion and analysis of financial condition and results of operations 25

Quantitative and qualitative disclosures about market risk

Item 3. Quantitative and qualitative disclosures about market risk 36

Controls and procedures

Item 4. Controls and procedures 37

OTHER INFORMATION

PART II. OTHER INFORMATION

Legal proceedings

Item 1. Legal proceedings 38

Risk factors

Item 1A. Risk factors 38

Unregistered sales of equity securities and use of proceeds

Item 2. Unregistered sales of equity securities and use of proceeds 40

Defaults upon senior securities

Item 3. Defaults upon senior securities 40

Mine safety disclosures

Item 4. Mine safety disclosures 40

Other information

Item 5. Other information 41

Index to exhibits

Item 6. Index to exhibits 42

Signatures

Signatures 43 Page - 2 Table of Contents

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION Item 1. CONSOLIDATED FINANCIAL STATEMENTS TRUEBLUE, INC. CONSOLIDATED BALANCE SHEETS (unaudited) (in thousands, except par value and share count data) September 28, 2025 December 29, 2024 ASSETS Current assets: Cash and cash equivalents $ 19,893 $ 22,536 Accounts receivable, net of allowance of $ 1,073 and $ 1,009 , respectively 251,873 214,704 Prepaid expenses and other current assets 40,195 31,786 Income tax receivable 1,281 8,067 Total current assets 313,242 277,093 Property and equipment, net 81,843 89,602 Restricted cash, cash equivalents and investments 149,691 179,916 Deferred income taxes, net 1,095 886 Goodwill 42,291 24,543 Intangible assets, net 18,736 5,863 Operating lease right-of-use assets, net 46,930 47,334 Workers' compensation claims receivable, net 26,984 38,343 Other assets, net 9,715 11,796 Total assets $ 690,527 $ 675,376 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable and other accrued expenses $ 39,447 $ 45,599 Accrued wages and benefits 67,395 61,380 Income tax payable 377 315 Current portion of workers' compensation claims reserve 27,805 34,729 Current operating lease liabilities 11,093 11,127 Other current liabilities 9,585 6,975 Total current liabilities 155,702 160,125 Workers' compensation claims reserve, less current portion 75,090 105,063 Long-term debt 68,200 7,600 Long-term deferred compensation liabilities 39,144 38,109 Long-term operating lease liabilities 47,123 47,805 Other long-term liabilities 929 1,315 Total liabilities 386,188 360,017 Commitments and contingencies (Note 9) Shareholders' equity: Preferred stock, $ 0.131 par value, 20,000,000 shares authorized; No shares issued and outstanding — — Common stock, no par value, 100,000,000 shares authorized; 29,924,684 and 29,588,363 shares issued and outstanding 1 1 Accumulated other comprehensive loss ( 21,807 ) ( 22,193 ) Retained earnings 326,145 337,551 Total sh

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited) NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Financial statement preparation The accompanying unaudited consolidated financial statements ("financial statements") of TrueBlue, Inc. (the "company," "TrueBlue," "we," "us," and "our") are prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") and rules and regulations of the Securities and Exchange Commission ("SEC") for interim financial information. Accordingly, certain information and footnote disclosures usually found in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. The financial statements reflect all adjustments which, in the opinion of management, are necessary to fairly state the financial statements for the interim periods presented. We follow the same accounting policies for preparing both quarterly and annual financial statements. The preparation of the financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. The results of operations for the thirty-nine weeks ended September 28, 2025 are not necessarily indicative of the results expected for the full fiscal year nor for any other fiscal period. These financial statements should be read in conjunction with the audited consolidated financial statements and related notes included in our Annual Report on Form 10-K for the fiscal year ended December 29, 2024. Accounts receivable and allowance for credit losses Accounts receivable are recorded at the invoiced amount. We establish an estimate for the allowance for credit losses resulting from the failure of our clients to make required payments by applying an aging schedule to pools of assets with similar risk characteristics. Based on an analysis of the risk chara

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited) Goodwill and indefinite-lived intangible assets We evaluate goodwill and indefinite-lived intangible assets for impairment on an annual basis as of the first day of our fiscal second quarter, or whenever events or circumstances make it more likely than not that an impairment may have occurred. These events or circumstances could include a significant change in general economic conditions, deterioration in industry environment, changes in cost factors, declining operating performance indicators, legal factors, competition, client engagement, changes in the carrying amount of net assets, a sale or disposition of a significant portion of a reporting unit, or a sustained decrease in stock price. We monitor the existence of potential impairment indicators throughout the fiscal year. Goodwill We test for goodwill impairment at the reporting unit level. We consider our reporting units to be our operating segments or one level below (the component level) based on our organizational structure. Our reporting units with remaining goodwill as of September 28, 2025 were Centerline, PeopleScout, and HSP. When evaluating goodwill for impairment, we may first assess qualitative factors to determine whether it is more likely than not the fair value of a reporting unit is less than its carrying amount. Qualitative factors include macroeconomic conditions, industry and market conditions, and overall company financial performance. If, after assessing the totality of events and circumstances, we determine that it is more likely than not the fair value of the reporting unit is greater than its carrying amount, the quantitative impairment test is unnecessary. The quantitative impairment test, if necessary, involves comparing the fair value of each reporting unit to its carrying value, including goodwill. Fair value reflects the price a market participant would be willing to pay in a potential sale of the reporting unit. If the

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited) Government assistance As there is limited U.S. GAAP accounting guidance specific to for-profit business entities that receive government assistance, we have elected to analogize to International Financial Reporting Standards ("IFRS"), specifically International Accounting Standards ("IAS") 20, Accounting for Government Grants and Disclosures of Government Assistance. Following IAS 20, we recognize government assistance on a systematic basis over the periods in which we recognize the related costs for which the grant is intended to compensate, but only when there is reasonable assurance we will comply with all conditions attached to the grant and there is reasonable assurance the assistance will be received. We have interpreted "reasonable assurance" to mean "probable," as defined in loss contingencies guidance in U.S. GAAP. During the fiscal second quarter of 2025, we determined the reasonable assurance criteria was met for certain payroll tax credits for which recognition was previously deferred. As a result, $ 3.2 million and $ 6.0 million was recognized within cost of services and SG&A expense, respectively, on the Consolidated Statements of Operations and Comprehensive Income (Loss) for the thirty-nine weeks ended September 28, 2025. This also resulted in a reversal of previously accrued interest related to these benefits of $ 2.1 million, offset by recognition of related professional fee expenses of $ 0.6 million, which were recorded within interest and other income (expense), net and SG&A expense, respectively, on the Consolidated Statements of Operations and Comprehensive Income (Loss) for the thirty-nine weeks ended September 28, 2025. Based on the reasonable assurance criteria, we deferred recognition of certain benefits of $ 5.1 million and $ 15.7 million as of September 28, 2025 and December 29, 2024, respectively, until recognition becomes probable, which are included in accrued wages and benefi

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited) Internal-use software In September 2025, the FASB issued ASU 2025-06, "Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40) - Targeted Improvements to the Accounting for Internal-Use Software." This ASU eliminates references to project stages and instead requires an entity to start capitalizing software costs once both of the following criteria have been met: (1) management has authorized and committed to funding the software project, and (2) it is probable that the project will be completed and the software will be used for its intended function. This ASU is effective for fiscal years beginning after December 15, 2027 (fiscal 2028 for TrueBlue) and interim reporting periods within those annual reporting periods. The guidance can be applied on a prospective basis, a modified basis for in-process projects or on a retrospective basis, and early adoption is permitted. We are currently evaluating the impact of this ASU; however, it is not anticipated to have a material impact on our consolidated financial statements. NOTE 2: ACQUISITION Effective January 31, 2025, we acquired all of the outstanding equity interests of HSP. HSP is a long-term staffing and permanent hiring solutions provider, primarily focused on healthcare positions in the U.S. This acquisition allows us to expand revenue in the healthcare end-market while also diversifying our business. Under the terms of the share purchase agreement, the base purchase price of $ 42.0 million was adjusted for estimated unpaid pre-close liabilities of the selling shareholders, cash acquired, and estimated excess working capital. The purchase price allocated to acquired assets and liabilities was cash consideration of $ 35.2 million. The purchase price is s ubject to further adjustment based on HSP's final pre-close liabilities and working capital amounts . As part of the share purchase agreement, certain HSP employees can earn up to an additi

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited) Intangible assets include identifiable intangible assets for customer relationships and trade names/trademarks. We estimated the preliminary fair value of the acquired identifiable intangible assets, which are subject to straight line amortization, using an income approach. These fair value measurements were based on Level 3 inputs under the fair value hierarchy. The following table sets forth the components of identifiable intangible assets acquired, including immaterial measurement period adjustments, as of January 31, 2025: (in thousands, except percentages and estimated useful lives, in years) Estimated fair value Estimated useful life in years Valuation method Discount rate Customer relationships $ 14,300 6 Multi-period excess earnings 17.0 % Trade names/trademarks 650 7 Relief from royalty 17.0 % Total acquired identifiable intangible assets $ 14,950 The acquired assets and assumed liabilities of HSP are included on our Consolidated Balance Sheets as of September 28, 2025, and the results of its operations are reported on our Consolidated Statements of Operations and Comprehensive Income (Loss) for the period from February 1, 2025 to September 28, 2025. The amount of revenue and income from operations for HSP included on our Consolidated Statements of Operations and Comprehensive Income (Loss) was $ 41.9 million and $ 1.1 million for the thirty-nine weeks ended September 28, 2025, respectively. Income from operations includes $ 1.7 million of amortization expense related to acquired intangibles. HSP results hav

View Full Filing

View this 10-Q filing on SEC EDGAR

View on Read The Filing