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DATE

May 5, 2026

CALL PARTICIPANTS

  • President & Chief Executive Officer — Taryn R. Owen
  • Chief Financial Officer — Carl R. Schweihs
  • Operator — [Name not provided]

TAKEAWAYS

  • Total Revenue -- $399 million, up 8% due to expansion in skilled verticals and inorganic growth from the HSP acquisition.
  • Organic Revenue Growth -- 7%, with HSP acquisition adding 1% to the total year-over-year growth.
  • Gross Margin -- 19.8%, down 350 basis points from prior year, primarily due to a $7 million less favorable workers' compensation adjustment and lower-margin energy revenue mix.
  • PeopleReady Revenue -- Grew 19%, driven by energy vertical performance; energy sector revenue more than doubled for the third consecutive quarter.
  • PeopleReady Segment Profit Margin -- Up 10 basis points, supported by targeted cost actions despite headwinds from workers' compensation.
  • PeopleManagement Revenue -- Declined 6%, attributed to lower on-site retail volumes; secured $13 million in annualized new business during the quarter.
  • PeopleManagement Segment Profit Margin -- Up 50 basis points through disciplined cost management and efficiency gains.
  • PeopleSolutions Revenue -- Increased 2%, with organic revenue down 7%; HSP performed in line with expectations.
  • PeopleSolutions Segment Profit Margin -- Up 150 basis points, reflecting cost and efficiency initiatives.
  • SG&A Expense -- Down 8% year over year, demonstrating improved operating leverage amid revenue growth.
  • Net Loss -- Reported at $20 million, which includes a $4 million non-cash goodwill impairment driven by a lower share price and market capitalization during the quarter.
  • Adjusted Net Loss -- $12 million for the quarter.
  • Adjusted EBITDA -- -$3 million for the quarter.
  • Cash and Debt Position -- $24 million in cash, $74 million in debt, with $36 million of unused borrowing base, totaling $60 million in liquidity.
  • Commercial Driver Business -- Achieved ninth consecutive quarter of growth, with increased order volume observed at quarter-end and into April.
  • Annualized New Business Wins -- Approximately $11 million secured through a strategic partnership with a group purchasing organization; additional $13 million in annualized business won in PeopleManagement.
  • Pricing Spread -- Pay rates rose 7.5%, bill rates climbed 6.7%, resulting in a 20-basis-point decline in margin due to legislative minimum wage increases and skill scarcity.
  • Sales Investments -- SG&A in PeopleReady declined 10%, attributed to efficiency improvements and enhanced digital capabilities.
  • International Expansion -- Nine-year engagement secured to serve a UK law enforcement agency with RPO and talent advisory solutions, following a prior UK Armed Forces win.
  • 2026 Outlook -- Revenue growth expected in the range of 2%-8%, with anticipated gross margin expansion of 130 to 170 basis points sequentially and improved profitability through ongoing cost discipline.
  • AI and Technology Platforms -- AI integrated across proprietary platforms (JobStack, Affinix, StaffTrack) is increasing operational efficiency, fill rates, revenue per headcount, and margin expansion.
  • Capital Expenditure -- Under 1% of revenue, with priority on liquidity and debt reduction before share repurchases.
  • Share Repurchase Authorization -- $34 million remaining under current authorization.

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RISKS

  • Gross margin decreased by 350 basis points; CFO Schweihs noted this was primarily due to less favorability in prior-year workers' compensation reserve adjustments and changes in revenue mix.
  • Net loss of $20 million included a non-cash $4 million goodwill impairment driven largely by a lower share price and market capitalization during the quarter.
  • PeopleManagement revenue declined 6% from lower volumes in the retail vertical, reflecting ongoing macroeconomic softness in that segment.
  • PeopleSolutions organic revenue declined 7%, with underlying client hiring volumes characterized as "subdued."

SUMMARY

TrueBlue (TBI +0.17%) management emphasized clear progress in enhancing growth across skilled verticals and securing new strategic wins in both domestic and international markets. The company highlighted that approximately one-third of active energy projects now address the power needs of data centers, capitalizing on AI-driven demand for physical infrastructure. Order momentum in the commercial driver segment accelerated at quarter-end, setting up potential future growth as volumes improve. The asset-backed credit facility transition in January 2026 increased borrowing flexibility and produced cost savings by lowering related fees. The company expects to drive margin expansion through sequential volume increases, reduced SG&A, and continued technology-driven operational efficiencies.

  • CFO Schweihs said, "Our skilled businesses continue to outperform the broader market, delivering double-digit growth for the fourth consecutive quarter due in large part to our continued success capturing rising demand in the energy vertical."
  • CFO Schweihs said, "We have noted in previous quarters that our skilled businesses represent about a fourth of our staffing businesses. With the significant growth that we have experienced, that is going to be approaching about one-third."
  • CFO Schweihs quantified the workers' compensation adjustment: "There would be about a $7 million differential between the quarters."
  • Taryn R. Owen said, "Expanding our sales function enables a more targeted, localized sales strategy and deeper client engagement. Enhanced sales focus, coupled with our improved operating model, positions us well to drive scalable growth."
  • The company reported a $5 million prior-year SG&A benefit from government subsidies that did not repeat in the current quarter.
  • PeopleReady's on-demand business is seeing recovering growth, with a majority of territories in PeopleReady On Demand returning to growth for the year, driven by local account business growth.

INDUSTRY GLOSSARY

  • RPO (Recruitment Process Outsourcing): A human resource outsourcing arrangement where an external provider manages all or part of a company's recruitment activities.
  • SG&A (Selling, General, and Administrative Expenses): Overhead costs of operating a company, excluding production costs.
  • AI (Artificial Intelligence): Software-enabled automation and analytics to optimize recruitment, placement, and operational workflows in staffing.

Full Conference Call Transcript

Taryn R. Owen: Thank you, operator, and welcome, everyone, to today’s call. I am joined by our Chief Financial Officer, Carl R. Schweihs. We entered this year focused on strengthening our sales reach, expanding in growing markets, and leveraging our efficient operating structure to drive top-line growth with enhanced margins. We have made meaningful progress and have clear momentum underway, but we have more work to do to improve performance. We delivered first quarter results toward the high end of expectations, driven by continued expansion in skilled verticals alongside stabilizing demand trends and disciplined operational execution to improve profitability.

Our revenue in the energy sector more than doubled this quarter as we continue to leverage our strong market position and expertise to capture demand in this growing market. There are an increasing number of secular growth drivers in the energy space, positioning us to capture further upside as we continue to expand into adjacent subsectors, including those supporting data centers and energy storage facilities. In fact, addressing the power needs of data centers now represents approximately a third of our active energy projects. The sustained growth of our commercial driver business also speaks to our success expanding in attractive end markets. Our team continues to outperform the broader market, delivering its ninth consecutive quarter of growth.

We have strong client relationships and deep expertise in high-demand skilled sectors, positioning us to help address the structural labor shortages leading to rising demand in skilled roles and end markets, with energy and commercial driving being just two examples. We are also expanding our presence in the government vertical, most notably with our RPO and talent advisory solutions. We recently secured a nine-year engagement serving a law enforcement agency in the UK, further demonstrating our growth in the government sector, alongside our previous UK Armed Forces win. We continue to diversify our business mix, building momentum to expand our market share and increase our revenue potential.

Healthcare remains yet another significant long-term market opportunity for us, with strong secular growth drivers. We continue to strengthen our position in the U.S. healthcare market with new business wins across our brand portfolio and geographic expansion of our healthcare staffing business as we leverage the combined strength of our deep expertise, recruitment agility, and sophisticated technology to expand in this underpenetrated market. We are also making significant progress enhancing our sales to accelerate growth and capture incremental demand. We continue to strategically increase our sales capacity within our on-demand territory-based structure to further extend our market reach. Expanding our sales function enables a more targeted, localized sales strategy and deeper client engagement.

Enhanced sales focus, coupled with our improved operating model, positions us well to drive scalable growth. This expanded sales capacity is already delivering clear results, with dedicated sales-supported territories delivering stronger sequential performance. Our strategic partnership with a leading group purchasing organization is unlocking new client acquisition channels and fueling a robust pipeline that includes several multi-brand prospects. During the quarter, our team secured roughly $11 million in annualized new business through this strategic partnership. Greater enterprise alignment and collaboration is also building stronger partnerships across our brand portfolio, leading to more cross-selling opportunities.

Our teams recently secured new business serving a global leader in health and medical devices with a tailored multi-service solution, highlighting the combined power of our brands and offering a full spectrum of specialized workforce solutions. While strategically investing in sales, we have continued to lower our total operating cost through disciplined and effective cost management as well as enhanced operational efficiencies enabled through our portfolio of proprietary technology platforms. We continue to lead on the digital front with AI-powered features, predictive analytics, and behavioral insights that enable us to connect people and work with speed, precision, and scale.

Advancing our digital ecosystem remains a priority, positioning us to deliver greater value to the customers and talent we serve with a differentiated experience and efficient solutions as we accelerate growth. As we continue to advance our long-term growth strategy, we remain committed to delivering improved profitability and sustainable growth. While our strategic priorities are taking hold, driving improved results and positioning us well to capitalize on the growth opportunities ahead, we are not done yet.

The staffing market has significant untapped potential, and we are confident our strategic focus on enhancing our sales model, expanding our share in attractive end markets, and unlocking efficiencies with technology and operational excellence will not only drive our improved performance in 2026 but also enable us to realize long-term sustainable value for our shareholders. I will now pass the call over to Carl R. Schweihs, who will share further details around our financial results and outlook.

Carl R. Schweihs: Thank you, Taryn. Total revenue for the quarter was $399 million, up 8% and near the high end of our outlook range. Organic revenue increased 7%, with our acquisition of HSP in January 2025 contributing one percentage point of inorganic growth year over year. Our skilled businesses continue to outperform the broader market, delivering double-digit growth for the fourth consecutive quarter due in large part to our continued success capturing rising demand in the energy vertical. As demand for skilled trades remains strong, broader demand trends continue to stabilize, driving solid momentum as we advance our growth strategy.

Gross margin was 19.8% for the quarter, down from 23.3% in the prior-year period as anticipated, primarily due to less favorability in prior-year workers’ compensation reserve adjustments and changes in revenue mix. As you may recall, last year’s gross margin benefited from a significant decrease in workers’ compensation costs due to favorable development of prior-year reserves. As expected, that degree of favorability did not repeat this year. For the revenue mix impact, this stems from outsized growth in PeopleReady energy work. As a reminder, energy work carries a lower gross margin than the general PeopleReady business due to pass-through travel costs involved. Outside of these costs, the underlying margin for energy work is consistent with other large PeopleReady accounts.

We successfully reduced SG&A by 8%, even while revenue grew 8% for the quarter. This improved leverage demonstrates our commitment to effectively manage costs and deliver enhanced profitability. We have made significant progress creating greater flexibility to scale and driving efficiencies that position us well to deliver strong incremental margins as industry demand improves and we continue to advance our growth initiatives. We reported a net loss of $20 million this quarter, which included a non-cash goodwill impairment charge of $4 million driven largely by our lower share price and market capitalization during the quarter.

Our results also included a small amount of income tax expense primarily associated with our foreign operations and essentially zero income tax benefit on U.S. operations due to the valuation allowance in effect on our U.S. deferred tax assets. As a reminder, the impairment charge and valuation allowance have no impact on our operations or liquidity. Adjusted net loss was $12 million, while adjusted EBITDA was -$3 million for the quarter. Now let us turn to our segments. PeopleReady grew 19%, driven by continued outperformance in the energy vertical.

Revenue in the energy sector more than doubled for the third consecutive quarter as our team continues to leverage our strong market position and deep client relationships to capture share in this growing market. Our on-demand business is also showing improved trends, especially in the territories where we have invested in sales resources, and we were encouraged to see the East Region of the U.S. return to growth this quarter. Despite the workers’ compensation headwind I mentioned earlier, PeopleReady segment profit margin was up 10 basis points, driven by targeted cost actions to deliver efficiencies and improved profitability.

PeopleManagement revenue declined 6% due to lower on-site volumes, primarily in the retail vertical and consistent with the macro conditions in that space. While client volumes declined for the quarter, we are building momentum, having secured $13 million in annualized new business wins during the first quarter alone and positioning the business well to drive revenue expansion. Our commercial driver business also continues to outperform, delivering its ninth consecutive quarter of growth as our strong client relationships and deep expertise drive continued success capturing rising demand. PeopleManagement segment profit margin was up 50 basis points due to disciplined cost management actions to drive improved efficiencies and greater scalability.

PeopleSolutions revenue grew 2%, with HSP performing in line with expectations and driving the year-over-year growth. On an organic basis, PeopleSolutions declined 7% as overall hiring volumes remained subdued. While clients continue to navigate evolving market conditions, we are encouraged to see signs of stabilization with growing momentum in new business wins and expansions. We are adding new clients to our portfolio and expanding existing relationships, especially with higher skilled roles and serving growing end markets with long-term secular tailwinds. As client hiring volumes return, the scale of these engagements positions us well to accelerate growth. PeopleSolutions segment profit margin was up 150 basis points, primarily driven by cost actions to deliver efficiencies and greater operating leverage.

Now let us turn to the balance sheet. We finished the quarter with $24 million in cash, $74 million of debt, and $36 million unused on our borrowing base, resulting in total liquidity of $60 million. Effective January 30, 2026, we transitioned our revolving credit agreement to an asset-backed structure, creating greater flexibility given our strong working capital position. We also reduced the size of the facility to better align with our capital priorities, resulting in cost savings as we lowered the fees associated with the unused portion of the facility. We remain committed to managing a strong liquidity position and financial flexibility to ensure we are well positioned to capitalize on the growth opportunities ahead.

Looking ahead to 2026, we expect revenue growth of 2% to 8% year over year as we continue to build on our success in recent quarters. With strong momentum in attractive markets, we expect growth across all of our skilled businesses and a return to double-digit segment profit margins for our PeopleSolutions segment. We expect sequential gross margin expansion of 130 to 170 basis points paired with continued cost discipline, leading to improved profitability. Also keep in mind that we typically see our highest volumes in the second half of the year due to the seasonality of our business.

So while we expect improved operating leverage in the second quarter, our lean cost structure will lead to further margin improvement as we move through 2026. Additional information on our outlook can be found in our earnings presentation shared on our website today. Before we open the call up for questions, I want to turn it back over to Taryn for some closing remarks.

Taryn R. Owen: Thank you, Carl. As you have heard from us today, our strategic focus is producing meaningful results, and there is still more work to be done. We are executing our growth strategy with discipline and focus, strengthening our market position with an enhanced sales model and market expansion while unlocking efficiencies through technology and operational excellence to deliver sustainable, profitable growth. We have the right people, structure, and strategy to propel TrueBlue, Inc. forward. As our focused actions drive improved results, we are well positioned to deliver on our commitment to accelerate growth, enhance shareholder value, and advance our mission to connect people and work. This concludes our prepared remarks. Operator, please open the call now for questions.

Operator: Thank you. We will now be conducting a question-and-answer session. You may press 2 to remove yourself from the queue. We will pause for a moment to poll for questions. Our first question today will come from Kartik Mehta with Northcoast Research.

Kartik Mehta: Hey, good afternoon, Taryn and Carl. Maybe we could talk a little bit about the core on-demand business. I apologize for that. From your perspective, how is the business doing, and are we at a positive inflection point for that business?

Taryn R. Owen: Hi, Kartik. Thank you for the question. We are encouraged by the positive results we are seeing in our PeopleReady on-demand business. We continue to see strong performance across our territories and sales organization, with results reflecting improved growth and profitability. A majority of our territories in PeopleReady On Demand have returned to growth for the year, driven by local account business growth. Weekly trends have been improving and, while there is more work ahead, we are confident in our ability to continue building on this momentum.

Carl R. Schweihs: Just to build on that with a few data points, Kartik. As we mentioned in prepared remarks, our PeopleReady East Region returned to growth in Q1, and I would also say that the momentum is shifting positively across the U.S. While it is not uniform, we are seeing more territories move back into growth each month. We have also been able to make these sales investments while managing our costs. SG&A for PeopleReady declined 10% for the first quarter, reflecting a more efficient cost structure. The progress is a result of our ongoing efforts to optimize our fixed cost base and enhance our digital capabilities, which gives us room to invest in growth while protecting our margins.

Momentum continues to build in PeopleReady On Demand, and our outlook for the second quarter reflects trends aligned to our historical sequential performance as we build this business from spring into the summer.

Kartik Mehta: Thanks, Carl. Taryn, the one question almost all my companies are getting, as you can imagine, is AI. I am wondering, with TrueBlueOne, how TrueBlue, Inc. might be using AI to become a little bit more efficient and to better serve your customers. From a competitive standpoint, are you seeing AI have an impact on your ability to serve your customers?

Taryn R. Owen: Sure. Thanks for the question. We are embracing AI, and it is differentiating TrueBlue, Inc.’s services in ways that improve scalability, productivity, and satisfaction, ultimately increasing value for our customers and our associates. AI is embedded across all of our proprietary technology—JobStack, Affinix, and StaffTrack—and it is helping us enhance every stage of the staffing life cycle. As importantly, AI is driving significant growth in demand for data centers. What often gets overlooked is that AI depends on physical infrastructure. Data centers require enormous amounts of reliable power, and that power—and the skilled workforce behind it—is where we have an opportunity to play a critical role.

We have seen increased project volume in our utility-scale solar business, and addressing the power needs of data centers now represents approximately a third of our active energy projects. Our PeopleReady skilled trades business has also seen an increase in revenue from the construction of data centers.

Carl R. Schweihs: To add a little on the P&L benefits we are seeing: from a revenue perspective, as Taryn mentioned, we saw our skilled business outperform the market with about 50% growth in Q1. From a cost and efficiency perspective, we are seeing positive trends in the important metrics we track. Our cost of delivery has gone down, with revenue per headcount increasing. We have also seen increased fill rates and lower cost due to recruiter efficiency. We are seeing both top-line growth and margin expansion as a result of the AI opportunity.

Kartik Mehta: And then just one last question, Taryn. On the pricing environment, as the job market maybe is not as tight as it used to be, are you seeing any pricing competition in any of the segments?

Taryn R. Owen: I would say that we are seeing the typical pricing pressure that we would in this type of environment, not only from competitive forces but also as our clients remain very cost conscious during what remains an uncertain time. Our team is doing a great job of maintaining pricing discipline and continuing to look for ways to deliver enhanced efficiencies and value so that we can remain competitive across all of our service offerings.

Operator: Thank you. Our next question will come from Mark Steven Marcon with Baird.

Mark Steven Marcon: Hey, good afternoon, and thanks for taking my questions. Really nice to see the revenue growth—good job there. I am wondering if you can talk a little bit more about the elements of the revenue growth. Specifically, on the energy side, can you size that for us? How big was it this past quarter, and how big was it a year ago?

Carl R. Schweihs: Thanks for the question, Mark. Our renewable energy business, as we mentioned, more than doubled for the third consecutive quarter. Renewables is part of our skilled trades business within PeopleReady. We have noted in previous quarters that our skilled businesses represent about a fourth of our staffing businesses. With the significant growth that we have experienced, that is going to be approaching about one-third.

Mark Steven Marcon: So one third across both PeopleReady and managed? A year ago it would have been a quarter of it?

Carl R. Schweihs: That is a good proxy across both of those segments, and yes, a year ago it would have been closer to a quarter.

Mark Steven Marcon: Really good growth there. Is the element tied to data centers increasing at an even faster rate, and how sustainable is the runway for that growth?

Carl R. Schweihs: In our renewables business, we stay really close to our customers. We have a solid pipeline in renewables with several projects expected to ramp in Q2, supporting our outlook for the quarter. Longer term, there is an incredible amount of need for energy in this space, and we are well positioned to capture that.

Mark Steven Marcon: Can you talk a little bit about the driver side—how big are drivers at this point?

Taryn R. Owen: That is about that third, Mark, in the PeopleManagement segment that we are talking about.

Carl R. Schweihs: One thing I will add is that our commercial driver business has been doing well for us. We are in our ninth consecutive quarter of growth in Q1, and it has been coming in a very challenging environment for transportation. A really encouraging sign for us is that at the end of the quarter and into April, we saw an increase in our order volume, which is going to provide some incremental growth opportunity. Historically over the last couple of years, we have been talking about taking share in our managed solutions. This will provide some future growth in our flex and on-demand side.

Mark Steven Marcon: Our transportation analysts see transportation starting to pick up, so if you have a growing market and share gains, that is a huge positive. With regards to the overall revenue guide, you did 7% growth organically this quarter, and you are guiding to 2% to 8%. Which segments would you expect to slow?

Carl R. Schweihs: Great question. At the midpoint, it is about 5%. We should see some improvement in PeopleManagement as we had a slower quarter in Q1, and a little bit in PeopleSolutions as well as we move into the quarter. For PeopleReady, our on-demand has good trends as we move from spring to summer, but we are starting to lap some of those really large growth quarters in our renewables business, so there is a little bit less growth coming in on that side within our PeopleReady segment.

Mark Steven Marcon: So tougher comps will slow things down a little bit. You are not expecting the energy business to continue doubling?

Carl R. Schweihs: Not doubling, but we expect it to continue to grow and grow sizably.

Mark Steven Marcon: Shifting to gross margins, how big was the impact of workers’ comp? I know it basically subtracted 220 bps relative to a year ago, but what was the actual reversal last year, and what did you experience this year?

Carl R. Schweihs: There would be about a $7 million differential between the quarters.

Mark Steven Marcon: Can you talk a little bit about bill-pay spread and what percentage increase you saw in the bill rate and the pay rate?

Carl R. Schweihs: Happy to. Pay rates were up about 7.5%, while bill rates were up 6.7%, which led to about a 20 bps decline in margin for the quarter. The pay rate increase was largely due to statutory minimum wage increases as well as role-specific skill scarcity rather than general labor shortages. As Taryn mentioned earlier, while there is still some pricing pressure that we would expect, we have been very disciplined in our pricing. We also typically see in the seasonality of our business that bill-pay spread gets better as we move into the second and third quarter, and we are already starting to see that in April.

Mark Steven Marcon: In terms of SG&A, it is projected to be down relative to a year ago. How much more room do you have in terms of taking SG&A down relative to the midpoint of what you are projecting for the second quarter, and how should we think about the incremental margin improvement as we go into the second half?

Carl R. Schweihs: Our adjusted SG&A was down about 8% in Q1, and we continue to manage costs very closely. We guided to about -7% year over year, so an improvement there. In Q2, we are guiding to a midpoint of $87 million, or down 3%. That includes about $2 million or so of adjustments, so on an adjusted basis, that will look closer to $85 million, or down 4%. An important call-out: on a reported basis, the prior year included a $5 million benefit from government subsidies that we did not expect to repeat.

Overall, we continue to manage our costs very closely, and with our optimized fixed cost base, we are poised for significant incremental margins and expanding profitability as we exit this lowest volume quarter in Q1 and demand improves into the year.

Mark Steven Marcon: Can you elaborate a little bit on the incremental margins you might expect during the second half?

Carl R. Schweihs: We expect expansion from our Q2 guide, and as we continue to move through the period, we would expect to see incremental margin, but we take it a quarter at a time, Mark.

Taryn R. Owen: Thank you, Mark.

Operator: Next, we will move to Marc Frye Riddick with Sidoti & Company.

Marc Frye Riddick: Hi. Good evening.

Taryn R. Owen: Hi, Marc. Hello.

Marc Frye Riddick: I wanted to start with the partnership with the leading group purchasing organization. In baseball terms, what inning are we in as far as that opportunity? Are we in the early stage? What do we think is the type of opportunity and the runway? Could you also talk about the scope as far as reach—nationwide or regional?

Taryn R. Owen: Thanks for the question, Marc. We are just at the tip of the iceberg here, and we are very encouraged by the progress we are seeing with this strategic partnership. It is driving new business opportunities and expanding our reach nationwide. As I mentioned in prepared remarks, we secured approximately $11 million of annualized new business wins in the quarter, and the partnership continues to build momentum as we expand the relationship into new sectors and across all of our service offerings. We had a couple of recent wins with two nationwide retail stores, with work that we expect to begin in the next couple of quarters.

Overall, we are very excited about the strong pipeline of opportunities ahead with this partnership.

Marc Frye Riddick: Along those lines, could you talk about international growth? What is the opportunity set there and what might we see internationally? Then I have one last follow-up.

Taryn R. Owen: Absolutely. We won a deal with UK law enforcement in the last quarter in our PeopleSolutions business to support them with hiring, and this follows the landmark deal we won in the UK to provide employer brand and candidate attraction services for the UK’s Armed Forces. As a reminder, that deal is in the transition phase now, and we will start to see the full value of that in the early part of 2027. Regarding the new law enforcement agency win, we will start to see revenue come online this year.

Marc Frye Riddick: Last one for me—shifting to cash usage, could you talk about the acquisition pipeline and appetite, valuations you are seeing, and share repurchase appetite given where we are?

Carl R. Schweihs: Thanks, Marc. We are focused on balancing ample liquidity first, making strategic growth investments into the business, and then, as we have historically done, returning excess capital to shareholders via share repurchases. Currently, with any excess cash and as free cash flow improves through the year, we are looking to pay down our debt first. We continue to manage our fixed cost base down, and our capital spend is now under 1% of revenue. With the business returning to organic growth, we would expect to pay down our debt throughout the year. Share repurchases remain important but balanced with maintaining a strong balance sheet. We have about $34 million remaining under our current authorization.

Marc Frye Riddick: Excellent. Thank you very much.

Carl R. Schweihs: Of course. Thanks, Marc.

Operator: Currently, there are no further questions. I would like to turn the floor back to Taryn R. Owen for any additional or closing remarks.

Taryn R. Owen: Thank you, operator, and thank you, everyone, for joining us today. I want to take this opportunity to thank the entire TrueBlue, Inc. team for their disciplined execution of our enterprise strategy and for their commitment to advancing our mission to connect people and work. We look forward to speaking with you at upcoming investor events and on our next quarterly call. If you have any questions, please do not hesitate to reach out. Thank you.

Operator: Thank you. This does conclude today’s teleconference. We thank you for your participation. You may disconnect your lines at this time.