v3.26.1
BUSINESS SEGMENT INFORMATION
 3 Months Ended
Mar. 31, 2026
Segment Reporting [Abstract]  
BUSINESS SEGMENT INFORMATION BUSINESS SEGMENT INFORMATION
The following table is a summary of segment information for the three months ended March 31, 2026 and 2025. The segment information is based upon the way the management of the Company organizes segments within an enterprise for making operating decisions and assessing performance. Financial information is reported on the basis that it is used internally by the chief operating decision maker (“CODM”) for evaluating segment performance and deciding how to allocate resources to segments. The Fortrea Chief Executive Officer has been identified as the CODM.
The CODM allocates resources and assesses performance based on the underlying businesses which determines the Company's operating segments. When determining the reportable segments, the Company aggregated operating segments based on their similar economic and operating characteristics. The Company reports its business in one reportable segment: Clinical Services, which provides phase I-IV clinical trials, including clinical pharmacology and comprehensive clinical development capabilities. The measure of segment profit or loss that the CODM uses to evaluates performance and allocate resources is segment operating income. The CODM uses segment operating income to monitor budget versus actual results and to make decisions about resources to be allocated to the segment and assess its performance.
In accordance with ASU 2023-07, Improvements to Reportable Segment Disclosures, significant expenses included within segment operating income have been assessed and disclosed in the table below. Corporate costs not included in the segment operating income measure provided to the CODM are included within “Corporate costs not included in segment operating income.” Segment asset information is not presented because it is not used by the CODM at the segment level.
Segment operating income for the three months ended March 31, 2026 and 2025 is reconciled to loss before income taxes as follows:
Three Months Ended March 31,
20262025
Revenues$636.5 $651.3 
Less:
Pass through costs229.9 239.9 
Direct costs282.9 294.1 
Selling, general and administrative expenses89.1 104.8 
Depreciation5.2 5.0 
Segment operating income29.4 7.5 
Corporate costs not included in segment operating income11.5 17.8 
Amortization14.6 14.5 
Goodwill and other asset impairments— 488.8 
Restructuring and other charges6.7 6.5 
Operating loss(3.4)(520.1)
Interest expense(19.1)(22.3)
Foreign exchange gain (loss)9.7 (5.6)
Other, net0.5 — 
Loss before income taxes$(12.3)$(548.0)