For the three months ended September 30, 2024, from continuing operations:

• Revenues of $674.9 million
• GAAP net loss of $(18.5) million
• Adjusted EBITDA of $64.2 million
• GAAP and adjusted net income (loss) per diluted share of $(0.21) and $0.23, respectively
• Book-to-bill ratio of 1.23x, resulting in 1.15x book-to-bill for the trailing 12 months

"We had a solid quarter of execution” said Tom Pike, chairman and CEO of Fortrea. "Our book-to-bill ratio for the quarter, as expected, is a nice mix of both large pharma and biotech awards. We have continued to make strong progress in the post-spin separation from our former parent. On the technology front for instance, we have migrated more than 90 percent of our IT applications and servers to the Fortrea environment.”

All commentary in this press release relates to continuing operations unless otherwise noted.

Third Quarter 2024 Financial Results

Revenue for the third quarter was $674.9 million, compared to $713.8 million in the third quarter of 2023.

Third quarter GAAP net loss was $(18.5) million and diluted loss per share was $(0.21) compared to third quarter of 2023 GAAP net loss of $(16.1) million and diluted loss per share of $(0.18). Third quarter adjusted EBITDA was $64.2 million, compared to third quarter of 2023 adjusted EBITDA of $68.2 million. Adjusted EBITDA increased sequentially by 16.3% in the quarter.

Backlog as of September 30, 2024, increased to $7,571 million, and the book-to-bill ratio for the quarter was 1.23x.

Year-To-Date 2024 Financial Results

Year-to-Date Revenue was $1,999.4 million, compared to $2,132.8 million in 2023.

Year-to-Date GAAP net loss was $(197.6) million and diluted loss per share was $(2.21) compared to 2023 GAAP net income of $16.9 million and diluted earnings per share of $0.19. Year-to-Date adjusted EBITDA was $146.5 million, compared to 2023 adjusted EBITDA of $186.9 million.

The Company's cash and cash equivalents were $105.3 million, and gross debt was $1,142.0 million on September 30, 2024. Operating cash flow for the nine months ended September 30, 2024, was $245.7 million, and free cash flow was $217 million.

Full-year 2024 revenue guidance has been updated to $2,700 million to $2,725 million. Full-year 2024 adjusted EBITDA guidance remains unchanged at a range of $220 million to $240 million.

Earnings Call and Replay

Fortrea will host its quarterly conference call on Friday, November 8, 2024, at 8:00 am ET to review its third quarter performance. The conference can be accessed through the Fortrea Investor Relations website or the earnings webcast link. To avoid potential delays, please join at least 10 minutes prior to the start of the call. A replay of the live conference call will be available shortly after the conclusion of the event and accessible on the events and presentations section of the Fortrea website. A supplemental slide presentation will also be available on the Fortrea Investor Relations website prior to the start of the call.

About Fortrea

Fortrea (Nasdaq: FTRE) is a leading global provider of clinical development solutions to the life sciences industry. We partner with emerging and large biopharmaceutical, biotechnology, medical device and diagnostic companies to drive healthcare innovation that accelerates life changing therapies to patients. Fortrea provides phase I-IV clinical trial management, clinical pharmacology and consulting services. Fortrea's solutions leverage three decades of experience spanning more than 20 therapeutic areas, a passion for scientific rigor, exceptional insights and a strong investigator site network. Our talented and diverse team working in about 100 countries is scaled to deliver focused and agile solutions to customers globally. Learn more about how Fortrea is becoming a transformative force from pipeline to patient at Fortrea.com and follow us on LinkedIn and X (formerly Twitter).

Cautionary Statement Regarding Forward-Looking Statements

This press release contains "forward-looking statements” within the meaning of the federal securities laws, including Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including, without limitation, the Company's 2024 financial guidance, and continued progression towards exiting the remainder of the Transition Services Agreements. In this context, forward-looking statements often address expected future business and financial performance and financial condition, and often contain words such as "guidance,” "expect,” "assume,” "anticipate,” "intend,” "plan,” "forecast,” "believe,” "seek,” "see,” "will,” "would,” "target,” similar expressions, and variations or negatives of these words that are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Actual results may differ materially from the Company's expectations due to a number of factors, including, but not limited to, the following: if the Company does not realize some or all of the benefits expected to result from the spin-off of the Company (the "Spin”) from Laboratory Corporation of America Holdings ("Labcorp”), or if such benefits are delayed; risks and consequences that are a result of the Spin; the impacts of becoming an independent public company; the Company's reliance on Labcorp to provide financial reporting and other financial and accounting information for periods prior to the Spin through the end of the relevant transition agreements, as well as IT, accounting, finance, legal, human resources, and other services critical to the Company's businesses; the Company's dependence on third parties generally to provide services critical to the Company's businesses throughout the transition period and beyond; the establishment of the Company's accounting, enterprise resource planning, and other management systems post the transition period, which could cost more or take longer than anticipated; the impact of the rebranding of the Company; the Company's ability to successfully implement the Company's business strategies and execute the Company's long-term value creation strategy; risks and expenses associated with the Company's international operations and currency fluctuations; the Company's customer or therapeutic area concentrations; any further deterioration in the macroeconomic environment, which could lead to defaults or cancellations by the Company's customers; the risk that the Company's backlog and net new business may not be indicative of the Company's future revenues and that the Company might not realize all of the anticipated future revenue reflected in the Company's backlog; the Company's ability to generate sufficient net new business awards, or if net new business awards are delayed, terminated, reduced in scope, or fail to go to contract; if the Company underprices its contracts, overruns its cost estimates, or fails to receive approval for, or experiences delays in documentation of change orders; the Company's ability to realize the full benefits from the divestiture of Endpoint Clinical and Fortrea Patient Access businesses; and other factors described from time to time in documents that the Company files with the SEC. For a further discussion of the risks relating to the Company's business, see the "Risk Factors” Section of the Company's Annual Report on Form 10-K, as filed with the Securities and Exchange Commission (the "SEC"), as such factors may be amended or updated from time to time in the Company's subsequent periodic and other filings with the SEC, which are accessible on the SEC's website at www.sec.gov. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this release and in the Company's filings with the SEC. Comparisons of results for current and any prior periods are not intended to express any future, or indications of future performance, unless expressed as such, and should only be viewed as historical data. All forward-looking statements are made only as of the date of this release and the Company does not undertake any obligation, other than as may be required by law, to update or revise any forward-looking statements to reflect future events or developments.

Note on Non-GAAP Financial Measures

This release includes information based on financial measures that are not recognized under generally accepted accounting principles in the United States ("GAAP"), such as Adjusted EBITDA, Adjusted Net Income, Adjusted Basic and Diluted EPS, and Free Cash Flow. Non-GAAP financial measures are presented only as a supplement to the Company's financial statements based on GAAP. Non-GAAP financial information is provided to enhance understanding of the Company's financial performance, but none of these non-GAAP financial measures are recognized terms under GAAP, and non-GAAP measures should not be considered in isolation from, or as a substitute analysis for, the Company's results of operations as determined in accordance with GAAP.

The Company uses non-GAAP measures in its operational and financial decision making and believes that it is useful to exclude certain items in order to focus on what it regards to be a more meaningful indicator of the underlying operating performance of the business. For example, in calculating Adjusted EBITDA, the Company excludes all the amortization of intangible assets associated with acquired customer relationships and backlog, databases, non-compete agreements and trademarks, trade names and other from non-GAAP expense and income measures as such amounts can be significantly impacted by the timing and size of acquisitions. Although the Company excludes amortization of acquired intangible assets from the Company's non-GAAP expenses, the Company believes that it is important for investors to understand that revenue generated from such intangibles is included within revenue in determining net income attributable to the Company. As a result, internal management reports feature non-GAAP measures which are also used to prepare strategic plans and annual budgets and review management compensation. The Company also believes that investors may find non-GAAP financial measures useful for the same reasons, although investors are cautioned that non-GAAP financial measures are not a substitute for GAAP disclosures.

The non-GAAP financial measures are not presented in accordance with GAAP. Please refer to the schedules attached to this release for relevant definitions and reconciliations of non-GAAP financial measures contained herein to the most directly comparable GAAP measures. The Company's full-year 2024 guidance measures (other than revenue) are provided on a non-GAAP basis without a reconciliation to the most directly comparable GAAP measure because the Company is unable to predict with a reasonable degree of certainty certain items contained in the GAAP measures without unreasonable efforts. Such items include, but are not limited to, acquisition-related expenses, restructuring and related expenses, stock-based compensation and other items not reflective of the Company's ongoing operations.

Non-GAAP measures are frequently used by securities analysts, investors and other interested parties in their evaluation of companies comparable to the Company, many of which present non-GAAP measures when reporting their results. Non-GAAP measures have limitations as an analytical tool. They are not presentations made in accordance with GAAP, are not measures of financial condition or liquidity and should not be considered as an alternative to profit or loss for the period determined in accordance with GAAP or operating cash flows determined in accordance with GAAP. Non-GAAP measures are not necessarily comparable to similarly titled measures used by other companies. As a result, you should not consider such performance measures in isolation from, or as a substitute analysis for, the Company's results of operations as determined in accordance with GAAP.

Fortrea Contacts

Hima Inguva (Investors) - 877-495-0816, hima.inguva@fortrea.com

Sue Zaranek (Media) - 919-943-5422, media@fortrea.com

Kate Dillon (Media) - 646-818-9115, kdillon@prosek.com