Trueblue Stock Earnings Reports

TrueBlue reported a stronger-than-expected Q3 2025 driven by stabilization in core businesses and momentum in higher-growth verticals. Total revenue was $431 million, up 13% YoY, led by double-digit growth in its skilled businesses; the recently acquired Healthcare Staffing Professionals (HSP) contributed meaningfully to growth. PeopleReady (on-demand staffing) grew 17% with energy sector revenue more than doubling and improved sequential trends after a territory-based sales reorganization (sales capacity +50%). PeopleManagement posted its third consecutive quarter of growth (commercial driver business delivered its fifth straight quarter of double-digit growth). PeopleSolutions revenue grew 28%, largely helped by HSP (39 percentage points of segment growth) offsetting organic softness. Gross margin declined to 22.7% from 26.2% YoY, primarily from revenue mix (lower-margin renewable energy work), less favorable prior-year workers’ compensation reserve development, and certain software depreciation now in cost of services (noncash). Management reduced SG&A by 8% YoY and delivered improved operating leverage (adjusted EBITDA $11 million; adjusted net income $1 million), while reporting a small GAAP net loss of $2 million. Balance sheet: $20M cash, $68M debt, $75M borrowing availability, total liquidity $95M; working capital increased $19M. Management sees continued focus on digital platform enhancements, sales investment in priority markets, cross-selling via strategic partnerships, and cost optimization (including a Chicago support center sublease unlocking >$30M cash flow over remaining lease term). Q4 guidance: revenue growth expected +4% to +10% YoY, with HSP contributing ~4 points of growth sequentially. Management characterizes customer sentiment as cautious but notes early signs of demand inflection and continued opportunities in compliant staffing solutions amid immigration/ICE-related dynamics.