REVENUES

9 Months Ended

Sep. 30, 2025

Revenue from Contract with Customer [Abstract]

REVENUES

REVENUES

The Company’s revenues by geography for the three and nine months ended September 30, 2025 and 2024 are as follows:

	Three Months Ended September 30, 2025								Three Months Ended September 30, 2024
	North America		Europe		Other		Total		North America		Europe		Other		Total
Revenues	$	332.7	$	213.2	$	155.4	$	701.3	$	319.7	$	191.8	$	163.4	$	674.9

	Nine Months Ended September 30, 2025								Nine Months Ended September 30, 2024
	North America		Europe		Other		Total		North America		Europe		Other		Total
Revenues	$	986.5	$	632.2	$	444.2	$	2,062.9	$	944.4	$	595.1	$	459.9	$	1,999.4

Revenue from the United States comprises substantially all revenue in North America.

Contract Costs

The following table provides information about contract asset balances:

	September 30, 2025		December 31, 2024
Sales commission assets	$	21.0	$	22.1
Deferred contract costs	0.5		1.1
Total	$	21.5	$	23.2

Amortization related to sales commission assets for the three months ended September 30, 2025 and 2024 was $3.0 and $2.9, respectively, and for the nine months ended September 30, 2025 and 2024 was $8.9 and $8.5, respectively. Amortization related to deferred contract costs for the three months ended September 30, 2025 and 2024 was $0.2 and $0.6, respectively, and for the nine months ended September 30, 2025 and 2024 was $0.6 and $1.5, 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:

	September 30, 2025		December 31, 2024
Accounts receivable	$	163.4	$	156.5
Unbilled services	549.4		542.3
Less: allowance for credit losses	(49.6)		(39.3)
Total	$	663.2	$	659.5
Unearned revenue	$	411.6	$	353.3

Revenue recognized during the period that was included in the unearned revenue balance at the beginning of the period was $217.9 and $147.6 for the nine months ended September 30, 2025 and 2024, respectively. Additionally, as of the quarter ended September 30, 2025, 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 nine months ended September 30, 2025 is as follows:

Allowance for credit losses as of December 31, 2024	$	39.3
Credit loss expense	13.5
Write-offs	(3.2)
Allowance for credit losses as of September 30, 2025	$	49.6

Performance Obligations Under Long-Term Contracts

As of September 30, 2025, approximately $4,547.7 of revenues are expected to be recognized from remaining performance obligations. The Company expects to recognize approximately 29% of the existing performance obligations as of September 30, 2025 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.

During the three and nine months ended September 30, 2025, there were reductions of approximately $10 and $26, respectively, in revenue related to performance obligations partially satisfied in previous periods. For the three months ended September 30, 2025, the majority of the change was associated with changes in estimated effort to complete customer contract obligations and a smaller portion related to changes in scope or price. For the nine months ended September 30, 2025, the change was associated with both changes in estimated effort to complete customer contract obligations and changes in scope or price. For the three months ended September 30, 2025, the change in estimate resulted in an estimated reduction to revenue of $7, and an increase in loss from continuing operations of $4 and in loss per share of $0.04. For the nine months ended September 30, 2025, the change in estimate resulted in an estimated reduction to revenue of $13, and an increase in loss from continuing operations of $13 and in loss per share of $0.14.

During the three and nine months ended September 30, 2024, there were reductions of approximately $6 and $58, respectively, in revenue related to performance obligations partially satisfied in previous periods. For the three months ended September 30, 2024, the majority of the change was associated with changes in estimated effort to complete customer contract obligations and a smaller portion related to changes in scope or price. For the three months ended September 30, 2024, the change in estimate resulted in an estimated reduction to revenue of $4, and an increase in loss from continuing operations of $2 and in loss per share of $0.02. For the nine months ended September 30, 2024, the change in estimate resulted in an estimated reduction to revenue of $25, and an increase in loss from continuing operations of $25 and in loss per share of $0.28.

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. The Receivables Facility is scheduled to terminate on May 6, 2027, unless terminated earlier pursuant to its terms.

As of September 30, 2025, 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 $4.5 and $13.4 for the three and nine months ended September 30, 2025, and $5.3 and $7.4 for the three and nine months ended September 30, 2024, respectively. These costs are included within selling, general and administrative costs in the condensed consolidated statements of operations.