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Contract research organization (CRO) providing clinical trial management and drug development services, spun off from Labcorp.
Contract research organization (CRO) providing clinical trial management and drug development services, spun off from Labcorp.
Paid by drug sponsors under contracts covering whole trials, billed as the work is done, so signed but unfinished studies form a backlog. Volume depends on sponsors' research budgets, and small biotechs' funding cycles matter as much as big pharma's. Cancelled or delayed trials remove revenue directly.
Moat: narrow (scale, process know-how, customer qualification). Established CRO with a large trial-management track record, though facing intense competition from larger CROs.
Headquarters: Durham, North Carolina · Founded: 2023 · Employees: 14,300
Size Fortrea (FTRE) is a United States Health Care company (Miscellaneous Commercial Services) with a market value of $2.12B, the 1756th largest of 3,117 United States companies the cockpit tracks. Shares closed at $21.96 on 6 Nov 2026.
Performance Over six months the shares gained 42.3%, against +28.7% for the median peer and -1.1% for the United States market (cap-weighted) — 3rd highest of 6 in its peer set.
Growth Revenue fell 3.4% over the last twelve months (peer median -1.1%); the operating margin is 1.7% (peer median -115.5%).
Valuation It trades at 22.8× forward earnings.
Price implies For today's price to make sense, revenue must grow about 33% a year for seven years (Req g). Recent delivered growth is +1%, so the hurdle is +32 pp: the price needs faster growth than the company has been delivering — of companies that just grew 25–50% a year, 93.8% slowed down over the next four years.
Capital Return on invested capital runs 8.6 points below its cost of capital (11.1% WACC).
Backlog Backlog (remaining performance obligations) was $4.39B at 30 Sep 2026, down 3% on a year earlier — 1.6 years of trailing revenue. Backlog detail →
Short interest Short interest is 8.1% of the free float (15 Oct 2026).
Next results Next results expected around 15 Mar 2027 (exchange calendar; dates can move).
| TTM | FY2025 | FY2024 | FY2023 | FY2022 | |
|---|---|---|---|---|---|
| Revenue | $2.67B | $2.72B | $2.70B | $2.84B | $3.10B |
| Revenue growth | — | +1% | -5% | -8% | — |
| Gross profit | $455M | $426M | $449M | $501M | $556M |
| EBITDA | $124M | $47.4M | -$26.5M | $142M | $394M |
| Net income | -$68.7M | -$986M | -$309M | -$25.2M | $193M |
| Free cash flow | $169M | $88.3M | $237M | $128M | $33.1M |
| Capital expenditure | $32.8M | $25.2M | $25.5M | $40.3M | $54.4M |
| Total debt | $1.12B | $1.12B | $1.20B | $1.67B | $63.4M |
The default views of Competitor Analysis ▸ Charts, drawn from the same data. Open them in the cockpit to change the axes, pin companies and read every value.
| Company | Market cap | 6M return | Revenue growth | Op. margin | Forward P/E | Req g |
|---|---|---|---|---|---|---|
| Fortrea FTRE | $2.12B | +42% | -3% | 2% | 22.8× | 32.9% |
| Iqvia IQV | $44.8B | +52% | +9% | 14% | 19.7× | 17.3% |
| ICON ICLR | $15.3B | +64% | +1% | 10% | 18.2× | 16.3% |
| Charles River Laboratories CRL | $16.1B | +90% | -1% | 15% | 26.6× | 25.3% |
Peer set: Industry: the same industry and sector in any market, nearest in size. This is the same default set the interactive Competitor Analysis opens with.
| Measure | FTRE | Peer median | Rank in peer set |
|---|---|---|---|
| 1-month return | +7.8% | +12.8% | 3rd lowest of 6 |
| 6-month return | +42.3% | +28.7% | 3rd highest of 6 |
| Distance from 52-week high | -16.1% | -19.7% | 3rd highest of 6 |
| Revenue growth (TTM) | -3.4% | -1.1% | 3rd highest of 5 |
| Operating margin | 1.7% | -115.5% | 2nd highest of 6 |
| Forward P/E | 22.8× | n/a | — |
| Growth the price implies (Req g, 7 yrs) | 32.9% | n/a | — |
| Growth delivered (Del g) | +1.1% | n/a | — |
| Hurdle (Req g minus delivered) | +31.8 pp | n/a | — |
| ROIC minus cost of capital | -8.6 pp | -21.3 pp | 2nd highest of 4 |
| Net debt / EBITDA | 7.2× | n/a | — |
| Company | Market | Market cap | 6M return | Revenue growth | Op. margin | Forward P/E | Req g | Delivered g |
|---|---|---|---|---|---|---|---|---|
| Fortrea FTRE | United States | $2.12B | +42% | -3% | 2% | 22.8× | 32.9% | +1.1% |
| Progyny PGNY | United States | $2.67B | +47% | +6% | 9% | 22.7× | 10.4% | +30.2% |
| Silence Therapeutics PLC Sponsored ADR SLN | United States | $1.23B | +184% | -97% | -10,478% | n/a | n/a | n/a |
| OmniAb OABI | United States | $734M | +29% | +91% | -116% | n/a | 59.6% | -31.9% |
| Evotec EVT.DE | Germany | $630M | -33% | -8% | -19% | n/a | n/a | n/a |
| Adlai Nortye Ltd. Sponsored ADR ANL | United States | $619M | -23% | n/a | -134% | n/a | n/a | n/a |
Fortrea reported $4.39B of remaining performance obligations at 30 Sep 2026, down 3% from a year earlier and down 1% from the previous quarter. That is 1.6 years of trailing revenue already under contract. Book-to-bill last quarter: 0.93.