TrueBlue — Third Quarter 2026 Earnings Summary

Financial Performance:

• Revenue reached $521 million for the third quarter of 2026, representing a 21% increase compared to the prior year period.
• Net income was $9 million ($0.28 per diluted share), a turnaround from a net loss of $2 million ($0.06 per share) in the prior year period.
• Adjusted net income per diluted share increased to $0.33 from $0.03 in the prior year period.
• Adjusted EBITDA improved to $21 million from $11 million in the prior year period.
• SG&A expense decreased 3% to $89 million from $92 million in the prior year period.
• The company held $20 million in cash and $102 million in debt at period end, with $66 million of unused borrowing capacity, resulting in total liquidity of $86 million.
• Working capital increased by $35 million during the quarter.
• Gross profit for the 13 weeks ended September 27, 2026, was $106.997 million compared to $97.892 million in the prior year period.
• Income from operations was $11.993 million compared to a loss of $146,000 in the prior year period.
• Net income for the 39 weeks ended September 27, 2026, was a loss of $13.919 million, compared to a loss of $16.424 million in the prior year period.

Guidance and Future Outlook:

• TrueBlue provided forward-looking information to assist investors in forming estimates, available in the quarterly earnings presentation filed with the release.
• Management indicated continued progress in expanding into attractive markets, strengthening the sales model, and driving efficiency through technology and discipline to achieve long-term growth and margin expansion.

Business Segments and Product Lines:

• PeopleReady revenue was $337.966 million, up from $251.436 million in the prior year period, with segment profit of $20.092 million compared to $8.099 million.
• PeopleManagement revenue was $135.362 million, up from $132.863 million in the prior year period, with segment profit of $5.960 million compared to $4.552 million.
• PeopleSolutions revenue was $47.409 million, up from $46.967 million in the prior year period, with segment profit of $4.499 million compared to $4.185 million.
• Total segment profit was $30.551 million compared to $16.836 million in the prior year period.
• Corporate unallocated expense was $9.802 million compared to $6.194 million in the prior year period.
• Management noted strong execution in skilled verticals and continued growth in the core on-demand business.

Market and Competitive Landscape:

• The company reported its fifth consecutive quarter of top-line growth.
• Recovery trends vary across verticals, geographies, and services, with improvement noted in areas aligned with the company's strategic positioning.

Risks and Challenges:

• Risks include national and global economic conditions, rising interest rates, inflation, changes in government policies, political instability, epidemics, and global trade uncertainty.
• Potential challenges involve the ability to maintain profit margins, attract and retain clients, and manage revenue concentration among a limited number of clients.
• Risks also include the ability to access sufficient capital to finance operations and comply with revolving credit facility covenants.
• Other risks include the ability to attract sufficient qualified candidates, the impact of new laws or regulations, changes in tax credits (including the Work Opportunity Tax Credit), and the successful integration of acquired businesses.
• The company faces risks related to unsolicited purchase offers, activist investor actions, and the timing of stock repurchases.

Management Commentary and Tone:

• Taryn Owen, President and CEO, stated the company "outperformed in the third quarter, exceeding expectations for both revenue and profitability."
• Management attributed results to a strategic focus on end market expansion, increased operating leverage, and strong execution in skilled verticals.
• The tone reflected confidence in the momentum building as the company expands in attractive markets and drives efficiency.

Other Key Points:

• The company has connected more than 10 million people with work and served over 3 million clients since its founding.
• TrueBlue operates under brands including PeopleReady, PeopleScout, Staff Management | SMX, Centerline, SIMOS, and Healthcare Staffing Professionals.
• Management will discuss results on a webcast on November 4, 2026, at 2:00 p.m. PT.
• The quarterly earnings presentation is available on the Investor Relations section of the TrueBlue website.
• The company utilized non-GAAP financial measures including Adjusted EBITDA, Adjusted Net Income, and Adjusted SG&A expense to enhance understanding of financial performance.