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REVENUES
 3 Months Ended
Mar. 31, 2026
Revenue from Contract with Customer [Abstract]  
REVENUES REVENUES
The Company’s revenues by geography for the three months ended March 31, 2026 and 2025 are as follows:
Three Months Ended March 31, 2026Three Months Ended March 31, 2025
North AmericaEuropeOtherTotalNorth AmericaEuropeOtherTotal
Revenues
$296.8 $213.9 $125.8 $636.5 $309.5 $200.3 $141.5 $651.3 
Revenue from the United States comprises substantially all revenue in North America.
Contract Costs
The following table provides information about contract asset balances:
March 31, 2026December 31, 2025
Sales commission assets$21.5 $21.4 
Deferred contract costs0.3 0.4
Total$21.8 $21.8 
Amortization related to sales commission assets for the three months ended March 31, 2026 and 2025 was $3.3 and $3.1, respectively. Amortization related to deferred contract costs for the three months ended March 31, 2026 and 2025 was $0.1 and $0.2, respectively. The Company applies the practical expedient to not recognize the effect of financing in its contracts with customers when the difference in timing of payment and performance is one year or less.
Accounts Receivable, Unbilled Services and Unearned Revenue
The following table provides information about accounts receivable, unbilled services and unearned revenue from contracts with customers:
March 31, 2026December 31, 2025
Accounts receivable$129.0 $113.6 
Unbilled services527.5 517.3 
Less: allowance for credit losses(36.9)(41.2)
Total$619.6 $589.7 
Unearned revenue$481.3 $473.8 
Revenue recognized during the period that was included in the unearned revenue balance at the beginning of the period was $154.9 and $88.7 for the three months ended March 31, 2026 and 2025, respectively. Additionally, as of the quarter ended March 31, 2026, the Company had sold $300.0 of receivables as described in the Receivables Securitization Program section below.
Credit Loss Rollforward
The Company estimates future expected losses on accounts receivable and unbilled services over the remaining collection period of the instrument.
The rollforward for the allowance for credit losses for the three months ended March 31, 2026 is as follows:
Allowance for credit losses as of December 31, 2025$41.2 
Credit loss expense3.0 
Write-offs(7.3)
Allowance for credit losses as of March 31, 2026$36.9 
Performance Obligations Under Long-Term Contracts
As of March 31, 2026, approximately $4,615.6 of revenues are expected to be recognized from remaining performance obligations. The Company expects to recognize approximately 27% of the existing performance obligations as of March 31, 2026 as revenue over the next 12 months and the remaining balance thereafter. The Company’s long-term contracts generally range from one to eight years. The customer contract transaction price allocated to the remaining performance obligations differs from backlog in that it does not include wholly unperformed contracts under which the customer has a unilateral right to cancel the arrangement.
During the three months ended March 31, 2026, there were reductions of approximately $1 in revenue related to performance obligations partially satisfied in previous periods. The change was associated with both changes in estimated effort to complete customer contract obligations of $(5) and changes in scope or price of $4.
During the three months ended March 31, 2025, there were reductions of approximately $16 in revenue related to performance obligations partially satisfied in previous periods. The majority of the change was associated with changes in scope or price of $(13) and a smaller portion related to changes in estimated effort to complete customer contract obligations of $(3).
The Company applies the practical expedient and does not disclose information about remaining performance obligations where (i) the performance obligation is part of a contract that has an original expected duration of one year or less or (ii) when the Company recognizes revenue from the satisfaction of the performance obligation in accordance with the right-to-invoice practical expedient.
Receivables Securitization Program
On May 6, 2024, the Company entered into a three-year $300.0 accounts receivable securitization program (the “Receivables Facility”). Under this program, Fortrea Inc. conveys receivable balances to a wholly-owned, bankruptcy-remote special purpose entity (“SPE”), who in turn, may sell receivables to a third-party financial institution in exchange for cash. The facility is without recourse to the Company or any subsidiaries of the Company, other than with respect to limited indemnity obligations of Fortrea Inc., in respect to the character of the receivables sold and as to the performance of its duties as servicer and a limited performance guaranty by the Company. All unsold accounts receivable held by the SPE are pledged as collateral to secure the collectability of the sold receivables.
On February 24, 2026, the Company amended its Receivables Facility, which had been scheduled to terminate on May 6, 2027. The amended Receivables Facility is scheduled to terminate on February 23, 2029, unless terminated earlier pursuant to its terms.
As of March 31, 2026, the Company had sold $300.0 of receivables, which were derecognized from the Company’s consolidated balance sheet as described in the Accounts Receivable, Unbilled Services and Unearned Revenue section above. Total costs associated with the sale were $4.7 and $4.4 for the three months ended March 31, 2026 and 2025, respectively, and are included within selling, general and administrative costs in the condensed consolidated statements of operations.