TrueBlue (TBI) Stock Forecast & Price Target

TrueBlue Inc. reported a 2% year-over-year revenue increase, primarily driven by its commercial staffing segment, which experienced double-digit growth, indicating a strong demand for its services. The company's strategic cost actions led to a notable improvement in adjusted EBITDA margin, which rose by 50 basis points to 0.7%, aligning with forecasts and showcasing enhanced operational efficiency. Despite the revenue being slightly below guidance, the overall growth trends and improved profitability metrics provide a solid foundation for a favorable outlook on the company's financial performance.

TrueBlue Inc's financial outlook is negatively impacted by a significant decline in adjusted EBITDA margin, which decreased by 320 basis points year-over-year to 5.2%, indicating lower operating leverage due to a drop in organic revenues. The PeopleReady segment, which is the largest revenue contributor for the company, experienced a year-over-year revenue decline of 5%, surpassing the anticipated decrease of 3%, reflecting ongoing softness across various client verticals. Additionally, the company reported an adjusted loss per share of $(0.07) for the second quarter of 2025, further underscoring challenges in maintaining profitability.