TrueBlue reported $9.25 million net income for Q3 2026.

Cover page 2 changes

3 unchanged paragraphs

For the quarterly period ended: June 28, September 27, 2026

20 unchanged paragraphs

As of July 26, October 25, 2026, there were 30,444,344 30,484,377 shares of the registrant's common stock outstanding.

1 unchanged paragraph

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 4 changes

2 unchanged paragraphs

The preparation of the financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. The results of operations for the twenty-six thirty-nine weeks ended June 28, September 27, 2026 are not necessarily indicative of the results expected for the full fiscal year nor or for any other fiscal period.

4 unchanged paragraphs

We evaluate goodwill and indefinite-lived intangible assets for impairment on an annual basis as of the first day of our fiscal second quarter, or whenever events or circumstances make it more likely than not that an impairment may have occurred. These events or circumstances could include a significant change in general economic conditions, deterioration in the industry environment, changes in cost factors, declining operating performance indicators, legal factors, competition, client engagement, changes in the carrying amount of net assets, a sale or disposition of a significant portion of a reporting unit, or a sustained decrease in stock price. We monitor the existence of potential impairment indicators throughout the fiscal year.

We test for goodwill impairment at the reporting unit level. We consider our reporting units to be our operating segments or one level below (the component level) based on our organizational structure. Our reporting units with remaining goodwill as of June 28, September 27, 2026 were Centerline, PeopleScout, and Healthcare Staffing Professionals ("HSP").

1 unchanged paragraph

The quantitative impairment test, if necessary, involves comparing the fair value of each reporting unit to its carrying value, including goodwill. Fair value reflects the price a market participant would be willing to pay in a potential sale of the reporting unit. If the fair value exceeds the carrying value, we conclude that no goodwill impairment has occurred. If the carrying value of the reporting unit exceeds its fair value, we recognize an impairment loss charge in an amount equal to the excess, not to exceed the carrying value of the goodwill. We consider a reporting unit's fair value to be substantially in excess of its carrying value at a 20 % premium or greater.

1 unchanged paragraph

Notes to the financial statements 2 changes

6 unchanged paragraphs

There were no new accounting standards adopted during the twenty-six thirty-nine weeks ended June 28, September 27, 2026 that had a material impact on our financial statements.

4 unchanged paragraphs

In September 2025, the FASB issued ASU 2025-06, "Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): - Targeted Improvements to the Accounting for Internal-Use Software." This ASU eliminates references to project stages and instead requires an entity to start capitalizing software costs once both of the following criteria have been met: (1) management has authorized and committed to funding the software project, and (2) it is probable that the project will be completed and the software will be used for its intended function. This ASU is effective for fiscal years beginning after December 15, 2027 (fiscal 2028 for TrueBlue) and interim reporting periods within those annual reporting periods (fiscal Q1 2028 for TrueBlue). The guidance can be applied on a prospective basis, a modified basis for in-process projects or on a retrospective basis, and early adoption is permitted. We are currently evaluating the impact of this ASU; however, it is not anticipated to have a material impact on our consolidated financial statements.

Note 2: ACQUISITION 1 change

1 unchanged paragraph

Under the terms of the share purchase agreement, the base purchase price of $ 42.0 million was adjusted for estimated unpaid pre-close liabilities of the selling shareholders, cash acquired and estimated excess working capital. The purchase price allocated to acquired assets and liabilities was cash consideration of $ 35.2 million. As part of the share purchase agreement, certain Healthcare Staffing Professionals, Inc. employees can earn up to an additional $ 14.0 million based on the financial performance of the business over the first two years after acquisition, which we have concluded would be treated as compensation expense. We have not recorded any contingent compensation expense associated with this acquisition, since, as of September 27, 2026 we do not anticipate that this contingent compensation will be earned. as of June 28, 2026. Any amounts probable of being paid out under the agreement would be expensed over the required service period. We incurred acquisition-related costs of $ 0.8 million for the twenty-six thirty-nine weeks ended June 29, September 28, 2025, which are included in selling, general and administrative ("SG&A") expense on the Consolidated Statements of Operations and Comprehensive Income (Loss).

16 unchanged paragraphs

Note 3: FAIR VALUE MEASUREMENT 10 changes

4 unchanged paragraphs

Cash and cash equivalents $ 23,253 19,767 $ 23,253 19,767 $ — $ —

Restricted cash and cash equivalents 15,727 15,727 18,495 18,495 — —

1 unchanged paragraph

Municipal debt securities $ 4,763 $ — $ 4,763 $ —

Corporate debt securities 33,737 — 33,737 —

Municipal debt securities $ 1,750 $ — $ 1,750 $ —

Corporate debt securities 24,977 — 24,977 —

Agency mortgage-backed securities 4,361 3,568 — 4,361 3,568 —

U.S. government and agency securities 11,698 17,128 — 11,698 17,128 —

Restricted investments classified as held-to-maturity (2) $ 54,559 47,423 $ — $ 54,559 47,423 $ — (in thousands) Total fair value Quoted prices in active markets for identical assets (level 1) Significant other observable inputs (level 2) Significant unobservable inputs (level 3)

12 unchanged paragraphs

As of June 28, September 27, 2026, all criteria for classifying our Tacoma headquarters office building and related assets (the "disposal group") as held-for-sale were met. During fiscal 2026, the fair value of the disposal group was estimated using a market approach, based on the sales comparison approach, which reflects pricing observed in recent market transactions for similar office properties, adjusted for property-specific factors. Because certain inputs to this valuation are not observable in active markets, the measurement is classified within Level 3 of the fair value hierarchy. Refer to Note 5: Supplemental Balance Sheet Information for additional details on our assets held-for-sale.

Note 4: RESTRICTED CASH, CASH EQUIVALENTS AND INVESTMENTS 16 changes

1 unchanged paragraph

(in thousands) June 28,

(in thousands) September 27,

Cash collateral held by insurance carriers $ 7,663 7,692 $ 7,681

Cash and cash equivalents held in Trust 7,331 9,155 11,424

Investments held in Trust 54,445 47,685 70,601

Company-owned life insurance policies 48,646 49,225 46,477

Other restricted cash and cash equivalents 733 1,648 405

2 unchanged paragraphs

The amortized cost and estimated fair value of each of our held-to-maturity investments held in Trust, aggregated by investment category as of June 28, September 27, 2026 and December 28, 2025, were as follows:

1 unchanged paragraph

Municipal debt securities $ 4,764 $ — $ ( 1 ) $ 4,763

Corporate debt securities 33,590 192 ( 45 ) 33,737

Agency mortgage-backed securities 4,347 14 — 4,361

Municipal debt securities $ 1,750 $ — $ — $ 1,750

Corporate debt securities 25,165 31 ( 219 ) 24,977

Agency mortgage-backed securities 3,577 4 ( 13 ) 3,568

U.S. government and agency securities 11,744 17,193 — ( 46 65 ) 11,698 17,128

Total held-to-maturity investments $ 54,445 47,685 $ 206 35 $ ( 92 297 ) $ 54,559 47,423 (in thousands) Amortized cost Gross unrealized gains Gross unrealized losses Fair value

5 unchanged paragraphs

Note 5: SUPPLEMENTAL BALANCE SHEET INFORMATION 16 changes

2 unchanged paragraphs

Twenty-six weeks ended

(in thousands) June 28,

Thirty-nine weeks ended

(in thousands) September 27,

1 unchanged paragraph

Current period provision 376 435

Write-offs ( 1,424 ) ( 568 )

Current period provision 1,002 1,119

Write-offs ( 1,908 ) ( 1,055 )

1 unchanged paragraph

Ending balance $ 1,142 $ 876

Ending balance $ 1,284 $ 1,073

2 unchanged paragraphs

(in thousands) June 28,

(in thousands) September 27,

Prepaid software agreements $ 7,192 8,718 $ 6,997

Other prepaid expenses 5,880 4,080 7,484

1 unchanged paragraph

Other current assets 4,381 5,123 4,747

Prepaid expenses and other current assets $ 26,186 26,654 $ 30,987

Note 6: GOODWILL AND INTANGIBLE ASSETS 6 changes

6 unchanged paragraphs

Balance at June 28, 2026

Foreign currency translation — — 90 90 200 200

Balance at September 27, 2026

Goodwill before impairment 105,284 81,092 159,737 346,113 159,847 346,223

2 unchanged paragraphs

During the fiscal first quarter of 2026, the sustained decrease in share price and resulting decrease in market capitalization, as well as downward revisions to future revenue and profitability projections related to the HSP reporting unit due to reductions in government funding that has have impacted certain HSP clients, resulted in management determining that a triggering event occurred for the HSP reporting unit. Therefore, we performed an interim goodwill impairment test for this reporting unit as of the last day of our fiscal first quarter of 2026. The fair value of the reporting unit was estimated using a weighting of the income and market valuation approaches. The income approach applied a fair value methodology to the reporting unit based on discounted cash flows. This analysis requires significant judgments, including estimation of future cash flows, which is are dependent on internally-developed internal forecasts, estimation of the long-term rate of growth for our business, estimation of the useful life over which cash flows will occur, and determination of our weighted average cost of capital, which is risk-adjusted to reflect the specific risk profile of the reporting unit being tested. The weighted average cost of capital used in our most recent impairment test was 16.5 %. We also applied a market approach, which develops a value correlation based on the market capitalization of similar publicly traded companies, referred to as a multiple, to apply to the operating results of the reporting units. unit. The primary market multiples to which we compare are revenue and earnings before interest, taxes, depreciation and amortization. In our most recent interim impairment test associated with our HSP reporting unit, the market multiples were based on revenue. The income and market approaches were equally weighted in our most recent interim impairment test.

Based on our interim impairment test as of the last day of our fiscal first quarter of 2026, we concluded that the carrying amount of the HSP reporting unit exceeded its estimated fair value. Thus, we recorded a non-cash goodwill impairment charge of $ 3.7 million, which is included in goodwill and intangible asset impairment charge on our Consolidated Statements of Operations and Comprehensive Income (Loss) for the thirty-nine weeks ended September 27, 2026. The goodwill impairment was primarily driven by downward revisions to future projections associated with our HSP reporting unit, an increase in the weighted average cost of capital selected, and a decline in market capitalization of similar publicly traded companies. The remaining goodwill balance for HSP as of September 27, 2026 was $ 13.7 million. Any significant adverse change in our near- or long-term projections or macroeconomic conditions could result in future impairment charges. We will continue to closely monitor the operational performance of this reporting unit.

Note 7: WORKERS' COMPENSATION INSURANCE AND RESERVES 12 changes

1 unchanged paragraph

Our workers' compensation reserve for claims below the deductible limit is discounted to its estimated net present value. The discount rates used to estimate net present value are based on average returns of "risk-free" U.S. Treasury instruments available during the year in which the liability was incurred and the weighted average duration of the payments against the self-insured claims. Payments made against self-insured claims are made over a weighted average period of approximately 3 4.5 years as of June 28, September 27, 2026. The weighted average discount rate was 3.2 3.4 % and 3.1 % at June 28, September 27, 2026 and December 28, 2025, respectively.

1 unchanged paragraph

(in thousands) June 28,

(in thousands) September 27,

Undiscounted workers' compensation reserve (1) $ 95,025 93,107 $ 107,480

Less discount on workers' compensation reserve 9,052 9,401 10,736

Workers' compensation reserve, net of discount 85,973 83,706 96,744

Less current portion 23,114 23,629 24,193

Long-term portion $ 62,859 60,077 $ 72,551

1 unchanged paragraph

Payments made against self-insured claims were $ 24.5 million and $ 23.3 million for the twenty-six weeks ended June 28, 2026 and June 29, 2025, respectively.

Workers' compensation cost consists primarily of changes in self-insurance reserves net of changes in discount, monopolistic jurisdictions' premiums, insurance premiums and other miscellaneous expenses. Workers' compensation cost of $ 11.4 million and $ 5.3 million was recorded in cost of services on our Consolidated Statements of Operations and Comprehensive Income (Loss) for the thirteen weeks ended June 28, 2026 and June 29, 2025, respectively, and $ 21.4 million and $ 6.5 million for the twenty-six weeks ended June 28, 2026 and June 29, 2025, respectively.

Payments made against self-insured claims were $ 34.1 million and $ 34.4 million for the thirty-nine weeks ended September 27, 2026 and September 28, 2025, respectively.

Our workers' compensation reserve includes estimated expenses related to claims above our self-insured limits ("excess claims"), and we record a corresponding receivable for the insurance coverage on excess claims based on the contractual policy agreements we have with insurance carriers. We discount this reserve and the corresponding receivable to its their estimated net present value using the discount rates based on average returns of "risk-free" U.S. Treasury instruments available during the year in which the liability was incurred and the weighted average duration of the payments against the excess claims. The discounted workers' compensation reserve for excess claims was $ 20.2 19.0 million and $ 25.7 million as of June 28, September 27, 2026 and December 28, 2025, respectively. The discounted receivables from insurance companies, net of valuation allowance, were $ 20.2 18.9 million and $ 25.7 million as of June 28, September 27, 2026 and December 28, 2025, respectively.

Note 8: LONG-TERM DEBT 15 changes

We have a revolving credit agreement under the Amended and Restated Credit Agreement dated February 9, 2024 (the "Revolving Credit Facility"), with Bank of America, N.A., PNC Bank, N.A., HSBC Bank USA, N.A., Wells Fargo Bank, N.A., and Key Bank, KeyBank, N.A. On January 30, 2026, the Revolving Credit Facility was further amended by the Second Amendment to the Amended and Restated Credit Agreement (the "Second Amendment"), establishing (the "Amended Revolving Credit Facility"), which is set to mature on February 9, 2029. The Amended Revolving Credit Facility provides for a revolving line of credit of up to $ 175.0 million. We have an option to increase the amount by $ 150.0 million, subject to lender approval. Included in the Amended Revolving Credit Facility is a $ 25.0 million sub-limit for swingline loans and a $ 25.0 million sub-limit for letters of credit.

The maximum amount we can borrow under the Amended Revolving Credit Facility is subject to a borrowing base and minimum excess availability covenant. The borrowing base is determined by eligible receivable accounts as defined in the Second Amendment, Amended Revolving Credit Facility, less specific availability reserves. The minimum excess availability covenant is the greater of (a) 12.5 % of the lesser of the borrowing base or the total line of credit and (b) $ 17.5 million. The minimum excess availability covenant may subsequently will be replaced with a springing fixed charge coverage ratio covenant upon on the satisfaction first day of meeting a minimum fixed charge coverage ratio test for two consecutive quarters occurring on or after September 27, 2026. the fixed charge coverage ratio covenant fiscal fourth quarter of 2026, which will thereafter apply when excess availability is below certain thresholds.

1 unchanged paragraph

(in thousands) June 28,

(in thousands) September 27,

Term SOFR Loans (1) $ 65,000 82,000 $ 40,000

1 unchanged paragraph

Swingline loans 17,400 20,800

Total outstanding $ 93,721 $ 77,186

Swingline loans 20,300 20,800

Long-term debt 82,400 102,300 65,800

Letters of credit 11,321 6,235 11,386

Total outstanding $ 108,535 $ 77,186

1 unchanged paragraph

A commitment fee between 0.35 % and 0.50 % is applied against the Amended Revolving Credit Facility's unused borrowing capacity, with the specific rate determined by the consolidated leverage ratio, as defined in the Amended Revolving Credit Facility. Letters of credit are priced at a margin between 1.50 % and 3.25 %, with the specific rate determined by the consolidated leverage ratio, plus a fronting fee of 0.25 %.

As of June 28, September 27, 2026, the borrowing base in effect was $ 150.0 175.0 million, leaving $ 56.2 66.5 million of unused borrowing base available.

Under the terms of the Amended Revolving Credit Facility, we have the option to borrow funds under the revolving line of credit as a Term SOFR Loan, for a one-, three- or six-month term, or as a Base Rate Loan, as defined in the Amended Revolving Credit Facility. Under a Term SOFR Loan, we are required to pay a variable rate of interest on funds borrowed based on the Term SOFR Screen Rate two days prior for the equivalent term, plus an adjustment of 0.10 %, plus an applicable spread between 1.75 % and 3.50 %. Under a Base Rate Loan, we are required to pay a variable rate of interest on funds borrowed based on a base rate plus an applicable spread between 0.75 % and 2.50 %. The base rate is the greater of the one-month Term SOFR Screen Rate two days prior plus 1.00 %, the prime rate (as announced by Bank of America), or the federal funds rate plus 0.50 %. The applicable spread is determined by the consolidated leverage ratio, as defined in the Amended Revolving Credit Facility. As of June 28, September 27, 2026, the outstanding balance under Term SOFR Loans carried an applicable spread on the base rate of 3.50 % and a weighted average base rate of 3.73 3.85 %, resulting in a weighted average interest rate of 7.23 7.35 %. The Term SOFR Loans were primarily used to fund the acquisition of Healthcare Staffing Professionals, Inc. in the fiscal first quarter of 2025, and to support working capital requirements as revenue increased.

Under a swingline loan, we are required to pay a variable rate of interest on funds borrowed based on the base rate plus an applicable spread between 0.75 % and 2.50 %, as described above. As of June 28, September 27, 2026, the applicable spread on the base rate was 2.50 % and the base rate was 6.75 7.00 %, resulting in an interest rate of 9.25 9.50 %.

Note 9: COMMITMENTS AND CONTINGENCIES 8 changes

1 unchanged paragraph

(in thousands) June 28,

We have provided our insurance carriers and certain states with commitments in the form forms and amounts listed below:

(in thousands) September 27,

Cash collateral held by workers' compensation insurance carriers $ 3,358 3,387 $ 3,376

Cash and cash equivalents held in Trust 7,331 9,155 11,424

Investments held in Trust 54,445 47,685 70,601

1 unchanged paragraph

Surety bonds (2) 21,216 20,888 21,116

Total collateral commitments $ 89,500 84,265 $ 109,902

4 unchanged paragraphs

Note 10: SHAREHOLDERS' EQUITY 19 changes

2 unchanged paragraphs

Twenty-six weeks ended

(in thousands) June 28,

Thirty-nine weeks ended

(in thousands) September 27,

Beginning balance 30,378 29,833 30,444 29,892 29,987 29,588

1 unchanged paragraph

Ending balance 30,444 29,892 30,444 29,892

Ending balance 30,457 29,925 30,457 29,925

3 unchanged paragraphs

Beginning balance 277,767 324,438 296,203 337,551

Net loss ( 3,369 ) ( 160 ) ( 23,164 ) ( 14,508 )

Beginning balance 276,460 326,778 296,203 337,551

Net income (loss) 9,245 ( 1,916 ) ( 13,919 ) ( 16,424 )

1 unchanged paragraph

Stock-based compensation 2,053 2,361 3,846 4,421

Ending balance 276,460 326,778 276,460 326,778

Stock-based compensation 2,633 1,208 6,479 5,629

Ending balance 288,313 326,145 288,313 326,145

1 unchanged paragraph

Beginning balance, net of tax ( 21,686 21,795 ) ( 22,222 21,587 ) ( 21,647 ) ( 22,193 )

1 unchanged paragraph

Total shareholders' equity ending balance $ 254,666 $ 305,192 $ 254,666 $ 305,192

Ending balance, net of tax ( 21,795 21,710 ) ( 21,587 21,807 ) ( 21,795 21,710 ) ( 21,587 21,807 )

Total shareholders' equity ending balance $ 266,604 $ 304,339 $ 266,604 $ 304,339

Note 11: INCOME TAXES 1 change

2 unchanged paragraphs

During the twenty-six thirty-nine weeks ended June 28, September 27, 2026, we performed our deferred tax asset realizability assessments and, as a result, we maintained a valuation allowance against our U.S. federal, state and certain foreign deferred tax assets. Our conclusion was driven by U.S. and foreign pre-tax losses beginning in 2023 and continuing into 2026, combined with the non-cash goodwill impairment charge of $ 59.1 million recorded during fiscal 2024.

Note 12: NET INCOME (LOSS) PER SHARE 15 changes

2 unchanged paragraphs

Twenty-six weeks ended

Net loss $ ( 3,369 ) $ ( 160 ) $ ( 23,164 ) $ ( 14,508 )

Basic $ ( 0.11 ) $ ( 0.01 ) $ ( 0.76 ) $ ( 0.49 )

Diluted $ ( 0.11 ) $ ( 0.01 ) $ ( 0.76 ) $ ( 0.49 )

Anti-dilutive shares 2,922 1,863 2,616 1,689

Thirty-nine weeks ended

(in thousands, except per share data) June 28, September 27,

Net income (loss) $ 9,245 $ ( 1,916 ) $ ( 13,919 ) $ ( 16,424 )

Weighted average number of common shares used in basic net income (loss) per common share 30,439 29,896 30,333 29,817

Dilutive effect of non-vested stock-based awards — 2,193 — — —

Weighted average number of common shares used in diluted net income (loss) per common share 32,632 29,896 30,333 29,817

Net income (loss) per common share:

Basic $ 0.30 $ ( 0.06 ) $ ( 0.46 ) $ ( 0.55 )

Diluted $ 0.28 $ ( 0.06 ) $ ( 0.46 ) $ ( 0.55 )

Anti-dilutive shares 109 1,889 3,205 1,780

Note 13: SEGMENT INFORMATION 2 changes

6 unchanged paragraphs

We evaluate performance based on segment revenue and segment profit. (loss). Segment revenue is net of intercompany eliminations. Segment profit (loss) includes revenue, related cost of services, and ongoing operating expenses directly attributable to the reportable segment. Segment profit (loss) excludes loss on assets held-for-sale, goodwill and intangible asset impairment charges, depreciation and amortization expense, unallocated corporate general and administrative expense, interest and other income (expense), income taxes, and other costs and benefits not considered to be ongoing.

The following tables present our revenue from services by segment, with a reconciliation to total Company revenue. The tables also present significant segment expense categories regularly provided to the chief operating decision-maker ("CODM"), our Chief Executive Officer, and included in the calculation of segment profit. (loss). Cost of services and SG&A expense for the individual segments, as presented in the tables below, exclude certain costs and benefits that are also excluded from the calculation of segment profit. (loss). Lastly, the tables include a reconciliation of segment profit (loss) to income (loss) before tax expense.

MD&A 5 changes

1 unchanged paragraph

We believe we have a strong financial position and sufficient sources of funding to meet our short- and long-term obligations. Our Amended Revolving Credit Facility provides for a revolving line of credit of up to $175.0 million, with an option to increase the amount by $150.0 million, subject to lender approval. As of June 28, September 27, 2026, we had $23.3 $19.8 million in cash and cash equivalents and $82.4 $102.3 million of debt outstanding. Under the Amended Revolving Credit Facility, $11.3 $6.2 million was utilized by outstanding standby letters of credit. As of June 28, September 27, 2026, our borrowing base capacity was $150.0 $175.0 million, leaving $56.2 $66.5 million unused on our borrowing base.

Cash generated through our core operations is generally our primary source of liquidity. Our principal ongoing cash needs are to finance working capital, fund capital expenditures, repay outstanding Amended Revolving Credit Facility balances, and execute share repurchases. We may also need cash to fund future acquisitions. We manage working capital through timely collection of accounts receivable, which we achieve through focused collection efforts and tightly close monitoring of trends in days sales outstanding. While client payment terms are generally 90 days or less, we pay our associates daily and weekly, so additional financing through the use of our Amended Revolving Credit Facility is sometimes necessary to support working capital needs in times of revenue growth. We also manage working capital through efficient cost management and strategically the strategic timing payments of accounts payable payments.

We continue to make investments in online and mobile apps to increase the competitive differentiation of our services long-term and improve the efficiency of our service delivery model. In addition, we continue to transition our technology from on-premise software platforms to cloud-based software solutions, to increase while also increasing automation and the efficiency of running our business.

Outside of ongoing cash needed to support core operations, our insurance carriers and certain state workers' compensation programs require us to collateralize a portion of our workers' compensation obligation, for which they become responsible should we become insolvent. On a regular basis, these entities assess the amount of collateral they will require from us relative to our workers' compensation obligation. Such amounts can increase or decrease independent independently of our assessments and reserves. We continue to have face the risk that these collateral requirements may be increased by our insurers due to our loss history and market dynamics. We generally anticipate that our collateral commitments will grow as our business grows. We pay our premiums and deposit our collateral, if required, in installments. The collateral typically takes the form of cash and cash-backed instruments, highly rated investment grade investment-grade securities, letters of credit and surety bonds. Restricted cash, cash equivalents and investments supporting our self-insured workers' compensation obligation are held in a trust at the Bank of New York Mellon ("Trust") and are used to pay workers' compensation claims as they are filed. See Note 7: Workers' Compensation Insurance and Reserves , and Note 4: Restricted Cash, Cash Equivalents and Investments , to our consolidated financial statements found in Item 1 of this Quarterly Report on Form 10-Q, for details on our workers' compensation program as well as the restricted cash, cash equivalents and investments held in Trust.

3 unchanged paragraphs

Total collateral commitments decreased $20.4 $25.6 million during the twenty-six-week thirty-nine-week period ended June 28, September 27, 2026, primarily due to the use of collateral to satisfy workers' compensation claims, as well as a decrease in collateral levels required by our insurance carriers, consistent with the $10.8 $13.0 million decrease in workers' compensation claims reserve. See Note 9: Commitments and Contingencies , to our consolidated financial statements found in Item 1 of this Quarterly Report on Form 10-Q, for additional details on our workers' compensation commitments. We continue to actively manage workers' compensation cost by focusing on improving our associate safety programs and actively control controlling costs with our network of service providers. These actions have had a positive impact, creating favorable adjustments to workers' compensation liabilities recorded in prior periods. Continued favorable adjustments to our prior year prior-year workers' compensation liabilities are dependent on our ability to continue to aggressively lower accident rates and costs of our claims. Due to our progress in worker safety improvements and the resulting reduction in the frequency and severity of accident rates, accidents, we expect diminishing favorable adjustments to our workers' compensation liabilities going forward.

Controls and procedures 2 changes

1 unchanged paragraph

During the fiscal second third quarter of 2026, we carried out an evaluation, under the supervision and with the participation of our management, including our Chief Executive Officer and our Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures at a reasonable assurance level, as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act. Based upon that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were effective at a reasonable assurance level, as of June 28, September 27, 2026.

1 unchanged paragraph

The certifications required by Rule 13a-14 of the Exchange Act are filed as exhibits 31.1 and 31.2 respectively, to this Quarterly Report on Form 10-Q.

Risk factors 8 changes

This Quarterly Report on Form 10-Q should be read in conjunction with the risk factors set forth in Part I, Item 1A of our Annual Report filed on Form 10-K for the fiscal year ended December 28, 2025. With the exception of the risk factors noted below, which update the specific risk factors in our Annual Report filed on Form 10-K for the fiscal year ended December 28, 2025, there have been no material changes from the risk factors previously disclosed therein.

Investing in our securities involves risk. In addition to the updated risk factors below and all other information set forth in this Quarterly Report on Form 10-Q, the risk factors described in Part I, Item 1A of our Annual Report filed on Form 10-K for the fiscal year ended December 28, 2025 should be considered in evaluating our future prospects. If any of the events described herein or therein occur, our business, financial condition, results of operations, liquidity, or access to the capital markets could be materially and adversely affected.

2 unchanged paragraphs

• no cumulative voting in the election of directors, which limits the ability of minority stockholders shareholders to elect director candidates;

3 unchanged paragraphs

In the past, in response to unsolicited offers to the Company, the Board has adopted a Shareholder Rights Plan and may do so again if faced with similar circumstances inconsistent with the best interests of our shareholders. In addition, because we are incorporated in the State of Washington, we are governed by the provisions of Chapter 23B.19 of the Washington Business Corporation Act, which prohibits certain business combinations between us and certain significant shareholders unless specified conditions are met. These provisions in our articles of incorporation, our bylaws and Washington law may also have the effect of delaying or preventing a change of control of the Company, even if this change of control would benefit our shareholders.

2 unchanged paragraphs

For example, we have received unsolicited proposals to buy all or a portion of the Company. After a careful review of these proposals, including consultation with the Company's independent financial and legal advisors regarding the Company's business strategy, historic, historical, current and future valuation, and potential alternative opportunities, they have been unanimously rejected by our Board unanimously rejected them, as they failed to maximize value for, and were not in the best interests of, the Company's shareholders.

2 unchanged paragraphs

Responding to shareholder activism can be costly and time-consuming, be disruptive of disrupt our operations, and divert the attention of management and our employees from strategic initiatives. Activist campaigns can create perceived uncertainties as to our future direction, strategy, or leadership and may result in the loss of potential business opportunities, harm our ability to attract and retain employees, investors, and clients, and cause our stock price to experience periods of volatility or stagnation. The process of defending against such activities can divert management's focus from operating our business and implementing our strategic initiatives, and can adversely affect our business, financial condition, and results of operations.

The loss of, continued reduction in or substantial decline in revenue from larger clients or certain industries could have a material adverse effect on our revenues, profitability and liquidity.

We experience a degree of revenue concentration with large clients and in certain industries. Generally, our contracts do not contain guarantees of minimum duration, revenue levels, or profitability. Our clients have in the past and could in the future terminate their contracts or materially reduce their requested levels of service at any time. Currently, we have one client that represents over 10% of our consolidated revenue. The deterioration of the financial condition of a large client or a particular industry could have a material adverse effect on our business, financial condition and results of operations. In addition, a significant change to the business, staffing, or recruiting model of these clients, for example, a decision to insource our services, has had, and could again have, a material adverse effect on our business, financial condition and results of operations. Reduced demand for our services from larger clients or certain industries, or supply interruptions for manufacturing, have had, and could continue to have, a material adverse effect on our business, financial condition and results of operations. Client concentration also exposes us to concentrated credit risk, as a significant portion of our accounts receivable may be from a small number of clients. If payments on accounts receivable are slower than expected, if we are unable to collect our receivables, or if we are required to take additional reserves, our results and cash flows will be adversely affected.

Unregistered sales of stock 6 changes

The table below includes repurchases of our common stock pursuant to publicly announced plans or programs and those not made pursuant to publicly announced plans or programs during the thirteen weeks ended June 28, September 27, 2026.

6 unchanged paragraphs

05/25/2026 through 06/28/2026 147 $6.76 — $33.5 million

03/30/2026 06/29/2026 through 04/26/2026 07/26/2026 — $— — $33.5 million

04/27/2026 07/27/2026 through 05/24/2026 08/23/2026 — $— — $33.5 million

08/24/2026 through 09/27/2026 — $— — $33.5 million

(1) On January 31, 2022, our Board of Directors authorized a $100.0 million addition to our share repurchase program of our outstanding common stock. The share repurchase program does not obligate us to acquire any particular amount of common stock and does not have an expiration date. As of June 28, September 27, 2026, $33.5 million remains available for repurchase under the existing authorization.

Other information 1 change

During the fiscal second third quarter of 2026, none of our directors or executive officers adopted or terminated a "Rule 10b5-1 trading arrangement" or a "non-Rule 10b5-1 trading arrangement," as such terms are defined in paragraphs (a) and (c), respectively, of Item 408 of Regulation S-K promulgated under the Securities Act of 1933, as amended.

Index to exhibits 3 changes

5 unchanged paragraphs

10.1 F irst Amendment to Rights Agreement , dated as of May 6, 2026, by and between the Company and Computershare Trust Company, N.A., as rights agent.

10.2* 2016 Omnibus Incentive Plan, as amended and restated, effective May 11, 2026.

11 unchanged paragraphs

By: Brian Capone, Chief Accounting Officer and Senior Vice President