TrueBlue Swings to Profit as Revenue Growth Reaccelerates
The staffing company posted $521 million of third-quarter revenue, 21% higher than a year earlier, and net income of $9 million, or $0.28 a share.
TrueBlue (TBI), a provider of specialized workforce solutions, reported third-quarter revenue of $521 million, up 21% from a year earlier, after 12% growth in the second quarter and 8% in the first.
The company swung to net income of $9 million, or $0.28 a share, from a $2 million net loss, or $0.06 a share, in the year-ago quarter. The immediately preceding quarter had produced a $3.4 million net loss.
President and CEO Taryn Owen said the company “outperformed in the third quarter, exceeding expectations for both revenue and profitability as our strategic focus on end market expansion continues to produce meaningful results.” She said the results were the fifth consecutive quarter of top-line growth, with operating leverage from skilled verticals and continued growth in the core on-demand business.
Adjusted EBITDA rose to $21 million from $11 million a year earlier, a 95% increase, and the adjusted EBITDA margin expanded to 4.0% from 2.5%. Adjusted net income per share was $0.33, compared with $0.03 a year earlier.
Gross margin declined 2 percentage points to 20.5% from 22.7% a year earlier. The company attributed the decline primarily to an anticipated shift in business mix with continued growth in attractive skilled energy work.
Selling, general and administrative expense fell 3% to $89 million from $92 million a year earlier despite the 21% revenue increase. SG&A as a percent of revenue dropped to 17.1% from 21.3%. The company said the SG&A improvement was driven by disciplined cost management.
PeopleReady, the on-demand staffing brand, was the growth engine. Segment revenue rose 34% to $338 million, and segment profit rose 148% to $20 million, with margin up 270 basis points to 5.9%. The company cited outperformance in the energy vertical and continued growth in the core on-demand business, with margin expansion from cost actions and improved operating leverage.
PeopleManagement revenue rose 2% to $135 million and segment profit rose 31% to $6 million, with margin up 100 basis points to 4.4%. The company said growth in commercial driving services was partially offset by lower on-site client volumes, with momentum building from on-site wins and expansions. PeopleSolutions revenue rose 1% to $47 million and segment profit rose 8% to $4 million, with margin up 60 basis points to 9.5%. The company said PeopleSolutions returned to growth as business trends continued to stabilize.
Cash was $20 million, debt was $102 million, and unused borrowing capacity was $66 million, for total liquidity of $86 million at period end. The company said it increased working capital by $35 million during the quarter.
For the fourth quarter of 2026, TrueBlue guided revenue of $499 million to $519 million, or 20% to 24% versus the prior year, assuming current market conditions continue with improved trends across all three segments and continued strength in skilled businesses. Gross margin is guided at 19.8% to 20.2%, a decline of 1.7 to 1.3 percentage points versus the prior year, which the company said is due primarily to changes in business mix.
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