EHS Investments released a short‑report on March 3, 2026, criticizing TrueBlue’s fourth‑quarter 2025 earnings and calling for a board change. The next day, TrueBlue issued a formal response, denying the allegations and outlining its earnings performance and future outlook.
TrueBlue’s Q4 2025 results showed revenue of $418 million, an 8 % year‑over‑year increase that beat the consensus estimate of $413.31 million. The company posted a net loss of $31.5 million, a widening from the $11.7 million loss in Q4 2024, largely driven by an $18.4 million non‑cash impairment related to a Chicago support‑center sublease. Adjusted EBITDA fell to $2.4 million from $8.9 million in the prior year, and non‑GAAP earnings per share were –$0.25 versus the consensus estimate of –$0.08.
Revenue growth was supported by strong demand in the energy sector and the recent acquisition of Healthcare Staffing Professionals, which contributed 3 percentage points of organic growth. Gross margin compression of 5 percentage points was attributed to lower workers’ compensation reserve benefits from the prior year and a shift toward renewable‑energy work, which carries lower margins. The widened net loss and lower adjusted EBITDA reflect the impact of the impairment charge and the continued margin pressure.
In its response, President and CEO Taryn Owen said, “Throughout 2025, we executed on our strategic priorities with discipline and focus, building a strong foundation for sustainable, profitable growth. We are executing a clear strategy to improve margins and drive consistent revenue growth, underscoring our commitment to generate long‑term, sustainable value for all TrueBlue shareholders.” CFO Carl Schweihs added, “Total revenue for the quarter was $418 million, up 8 percent and near the high‑end of our outlook range. Organic revenue increased 5 percent with the acquired HSP business contributing 3 percentage points of growth. Gross margin was down 5 percentage points primarily due to lower workers’ compensation benefit from prior year reserves and changes in business mix with outsized growth in renewable energy work.”
TrueBlue guided Q1 2026 revenue to $381–$406 million and cautioned that gross margin pressure would continue, citing the non‑repeat of prior‑year workers’ compensation reserve benefits and the business‑mix shift. EHS Investments criticized the guidance as evidence of further deterioration. The market reacted negatively, with analysts noting concerns about margin compression, the EPS miss, and the activist’s push for board changes.
TrueBlue also announced that two new independent directors, William Greenblatt and William Seward, would join the board effective January 5 2026, while two existing directors would retire. The company said it had communicated these changes to EHS before the public statements and that the EHS‑nominated slate was not selected. EHS maintains that the board changes are insufficient to address the company’s strategic and governance concerns.
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