TrueBlue, Inc.

TrueBlue reported Q2 revenue of $443 million, up 12% year over year, with gross margin of 20.7% versus 23.6% last year. The company reported a net loss of $3 million, adjusted net income of $2 million versus a $2 million loss a year ago, and adjusted EBITDA of $11 million versus $3 million. SG&A was reduced by 7% while revenue grew 12%. By segment, PeopleReady revenue grew 23%, PeopleManagement was flat, and PeopleSolutions revenue declined 5%; PeopleReady segment margin rose 260 basis points, PeopleManagement margin rose 60 basis points, and PeopleSolutions margin increased 510 basis points to double digits. For Q3, management expects revenue growth of 7% to 11% year over year, with steady sequential gross margin and disciplined cost management helping profitability.

Taryn Owen framed the quarter as evidence that the company’s strategy is taking hold, highlighting stronger sales execution, expansion in attractive end markets, and efficiency gains from technology. She emphasized a return to growth in on-demand, nearly doubled energy revenue, and momentum in partnerships and cross-selling. Her tone was confident but measured, saying there is still more work ahead even as the company is encouraged by the progress.

Carl Schweihs focused on the operating leverage in the quarter: revenue of $443 million, gross margin of 20.7%, SG&A down 7%, adjusted EBITDA of $11 million, and liquidity of $79 million, supported by $23 million in cash, $82 million of debt, and $56 million unused on the borrowing base. He said the gross-margin decline was driven by prior-year workers' comp and a $3 million government subsidy benefit, plus mix from energy work, and noted a $3 million non-cash write-down of the Tacoma headquarters. He pointed to a $22 million increase in working capital from stronger revenue and said the company expects steady sequential gross margin and similar Q3 operating discipline.

Analysts asked whether demand had reached a positive inflection point, and management said the recovery is broad-based across geographies rather than isolated, with all four PeopleReady regions growing by quarter-end and July trends similar to the exit rate. On energy pacing, Carl said PeopleReady improved from plus 16% exiting Q1 to plus 30% exiting Q2, while PeopleManagement moved from minus 7% to plus 4% exiting the quarter. Management also said strategic partnerships are converting into revenue, and that a UK Armed Forces engagement is ramping with full value expected in 2027. On digital adoption, Taryn said AI tools across JobStack, Affinix, and StaffTrack are improving time-to-fill and reducing manual steps.