Core Insights - AMN Healthcare Services reported a third-quarter earnings beat, but shares fell 0.9% due to significant year-over-year declines in revenue and profits [1][2] - Revenue for the quarter was $634.5 million, down 7.7% from the previous year, while adjusted earnings per share were $0.39, a decrease from $0.61 in the same quarter last year [2] - Sales volumes fell 10.6% year-over-year, indicating weakening demand, and free cash flow margin contracted to 3.6% from 6.9% a year ago [2] - The company’s guidance for the fourth quarter suggests continued challenges, forecasting a 1.7% year-over-year revenue decline [2] Market Reaction - The stock has shown extreme volatility, with 34 moves greater than 5% over the last year, indicating that the market considers the recent news significant but not fundamentally altering its perception of the business [4] - AMN Healthcare Services has declined 23.7% since the beginning of the year and is trading 54.3% below its 52-week high of $40.92 from November 2024 [6] Analyst Insights - Truist Securities recently reiterated a "Buy" rating and increased its price target for AMN Healthcare Services from $20.00 to $24.00, reflecting a positive outlook on the company's future performance [5]

Core Viewpoint - AMN Healthcare Services reported a decline in revenue and earnings for the quarter ended September 2025, with a notable surprise in EPS performance compared to analyst expectations [1][3]. Financial Performance - Revenue for the quarter was $634.5 million, down 7.7% year-over-year, but exceeded the Zacks Consensus Estimate of $615.14 million by 3.15% [1]. - Earnings per share (EPS) was $0.39, a decrease from $0.61 in the same quarter last year, but significantly higher than the consensus estimate of $0.19, resulting in an EPS surprise of 105.26% [1]. Segment Performance - Physician and leadership solutions reported revenue of $178.21 million, slightly above the average estimate of $175.12 million, but down 1.3% year-over-year [4]. - Nurse and allied solutions generated $361.48 million in revenue, surpassing the estimated $346.66 million, but reflecting a 9.5% decline compared to the previous year [4]. - Technology and workforce solutions achieved $94.81 million in revenue, exceeding the average estimate of $93.42 million, with an 11.8% year-over-year decrease [4]. Operating Income - Segment operating income for nurse and allied solutions was $28.76 million, above the estimated $24.57 million [4]. - Operating income for technology and workforce solutions was $30.89 million, below the average estimate of $33.09 million [4]. - Physician and leadership solutions had an operating income of $15.73 million, slightly above the estimated $15.37 million [4]. Stock Performance - AMN Healthcare shares returned 7.1% over the past month, outperforming the Zacks S&P 500 composite, which saw a 1.3% change [3]. - The stock currently holds a Zacks Rank of 5 (Strong Sell), indicating potential underperformance in the near term [3].

分组1 - AMN Healthcare Services reported quarterly earnings of $0.39 per share, exceeding the Zacks Consensus Estimate of $0.19 per share, but down from $0.61 per share a year ago, resulting in an earnings surprise of +105.26% [1] - The company achieved revenues of $634.5 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 3.15%, although this is a decrease from year-ago revenues of $687.51 million [2] - AMN Healthcare has consistently surpassed consensus EPS estimates over the last four quarters, indicating a strong performance trend [2] 分组2 - Despite the positive earnings report, AMN Healthcare shares have declined approximately 13.8% year-to-date, contrasting with the S&P 500's gain of 15.6% [3] - The company's earnings outlook is critical for investors, with current consensus EPS estimates at $0.13 for the upcoming quarter and $1.08 for the current fiscal year, alongside revenues of $613.36 million and $2.58 billion respectively [7] - The Zacks Industry Rank places the Medical Services sector in the bottom 40% of over 250 Zacks industries, suggesting potential challenges for stock performance [8]

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Financial Performance - Total revenue for Q3 2025 was $634.5 million, a decrease of 7.7% compared to $687.5 million in Q3 2024[18]. - Gross profit for Q3 2025 was $184.4 million, down 13.5% from $213.1 million in Q3 2024[18]. - Net income for Q3 2025 was $29.3 million, compared to $7.0 million in Q3 2024, reflecting a significant increase[18]. - Total revenue for the nine months ended September 30, 2025, was $1,982,204, a decrease of 11.9% compared to $2,249,072 for the same period in 2024[53]. - Gross profit for the nine months ended September 30, 2025, was $578,931, down from $700,388 in 2024, reflecting a gross margin decline[53]. - The company reported a comprehensive loss of $116,057 thousand for the nine months ended September 30, 2025[24]. - The company reported a net income of 4.6% for the three months ended September 30, 2025, compared to 1.0% for the same period in 2024[100]. Assets and Liabilities - Total assets decreased to $2.14 billion as of September 30, 2025, down from $2.42 billion at the end of 2024[16]. - Current liabilities slightly decreased to $542.2 million from $545.8 million at the end of 2024[16]. - Goodwill decreased to $755.8 million from $897.5 million at the end of 2024, indicating a reduction in intangible asset value[16]. - Cash and cash equivalents increased to $52.6 million from $10.6 million at the end of 2024, indicating improved liquidity[16]. - Total cash, cash equivalents, and restricted cash at the end of September 2025 was $82,894 thousand, a decrease from $89,305 thousand at the end of December 2024[33]. - As of September 30, 2025, the allowance for credit losses decreased to $17,379 from $32,421 at the beginning of the year, reflecting a provision for expected credit losses of $2,180 and write-offs of $17,131[36]. Impairment and Expenses - The company experienced a goodwill impairment loss of $109.5 million during the nine months ended September 30, 2025[18]. - Share-based compensation expenses increased to $24,921 thousand for the nine months ended September 30, 2025, compared to $19,651 thousand in 2024, reflecting a rise of approximately 26.5%[24]. - Selling, General and Administrative (SG&A) expenses were $440.9 million, or 22.2% of revenue, for the nine months ended September 30, 2025, compared to $473.6 million, or 21.1% of revenue, in 2024[1]. - Amortization expense decreased by 17% to $59.5 million for the nine months ended September 30, 2025, from $71.7 million in 2024[1]. Revenue Segmentation - The nurse and allied solutions segment generated revenue of $361,476, while the physician and leadership solutions segment brought in $178,214, and the technology and workforce solutions segment contributed $94,806 for the three months ended September 30, 2025[52]. - The nurse and allied solutions segment accounted for 58% of total consolidated revenue for the nine months ended September 30, 2025, compared to 60% in 2024[88]. - The physician and leadership solutions segment revenue increased to 27% of total consolidated revenue for the nine months ended September 30, 2025, up from 25% in 2024[89]. - The technology and workforce solutions segment maintained a steady contribution of 15% to total consolidated revenue for both the nine months ended September 30, 2025, and 2024[90]. Cash Flow and Financing Activities - Cash provided by operating activities for the nine months ended September 30, 2025, was $193,885 thousand, down from $247,604 thousand in 2024, representing a decrease of approximately 21.6%[24]. - Net cash used in financing activities was $212,651 thousand for the nine months ended September 30, 2025, compared to $179,550 thousand in 2024, indicating an increase of approximately 18.4%[25]. - The company made payments of $285,000 thousand on its revolving credit facility during the nine months ended September 30, 2025, compared to $260,000 thousand in 2024[25]. - As of September 30, 2025, the company had $729.8 million of available credit under its $750.0 million secured revolving credit facility[1]. Market and Operational Insights - The company generated substantially all of its revenue in the United States during the three and nine months ended September 30, 2025, indicating immaterial foreign currency risk[149]. - The company experienced a decrease in overall staffing volume in the nurse and allied solutions segment due to lower demand in travel nurse staffing[94]. - Travel nurse staffing revenue for the nine months ended September 30, 2025, was $619,360, down from $854,746 in 2024, representing a decrease of 27.5%[55]. - Temporary staffing revenue for the nine months ended September 30, 2025, was $1,648,729, compared to $1,870,492 in 2024, showing a decline of 11.8%[55]. - International nurse revenue for the nine months ended September 30, 2025, totaled $96,939, down from $139,313 in 2024, a decrease of 30.4%[56]. Accounting and Regulatory Updates - The FASB issued ASU 2023-09, effective after December 15, 2024, requiring enhanced income tax disclosures, including additional information on rate reconciliation and income taxes paid[142]. - ASU 2024-03, effective after December 15, 2026, mandates detailed expense disaggregation in income statements, requiring public entities to disclose amounts in a tabular format[143]. - The company is currently evaluating the impact of adopting new accounting standards on its disclosures[145].

Financial Data and Key Metrics Changes - Third quarter revenue was $634 million, exceeding the high end of guidance by $9 million, but down 8% year-over-year and 4% sequentially [4][13] - Consolidated gross margin for Q3 was 29.1%, a decline of 190 basis points year-over-year and 70 basis points sequentially [13] - Adjusted EBITDA for Q3 was $57.5 million, representing 9.1% of revenue, which was 90 basis points above the high end of guidance [4][13] - Net income for Q3 was $29 million, compared to a net loss of $116 million in the prior quarter [19] Business Line Data and Key Metrics Changes - Nurse and Allied revenue was $361 million, down 9% year-over-year but exceeding guidance due to higher travel nurse volume and $12 million in labor disruption revenue [14] - Physician and Leadership Solutions segment revenue was $178 million, down 1% year-over-year but up 2% sequentially, with locum tenens revenue growing 3% year-over-year [16] - Technology and Workforce Solutions revenue was $95 million, down 12% year-over-year and 7% sequentially, primarily due to lower VMS revenue and the sale of SmartSquare [18] Market Data and Key Metrics Changes - Permanent hiring activity in the healthcare sector fell notably in Q3, indicating a shift towards more flexible workforce strategies [5] - The spread between travel nurse bill rates and fully loaded permanent nurse compensation is at a historical low, which may influence future hiring strategies [5] - Demand for travel nurses has increased by approximately 50% since mid-May, although it remains slightly below year-over-year levels [31] Company Strategy and Development Direction - The company aims to gain market share by enhancing technology, processes, and customer focus, with a strong emphasis on total talent solutions [11][41] - The strategy includes expanding service lines and improving fill rates, particularly in vendor-neutral programs [11][12] - The company expects to see more favorable revenue mix and growth in higher-margin businesses, particularly in international staffing [37] Management's Comments on Operating Environment and Future Outlook - Management noted that while the market remains competitive, there is rationality among competitors, and the focus is shifting towards total talent solutions [41] - The company anticipates modest year-over-year growth in nurse and allied revenue for Q4, with expectations for improved gross margins in 2026 [10][20] - Management expressed confidence in the recovery of demand and the ability to fill orders effectively, particularly as clients recognize the affordability of contingent labor [45][49] Other Important Information - The company completed a debt refinancing transaction, improving its financial position and extending the earliest debt expiration to 2029 [10][20] - Cash and equivalents as of September 30 were $53 million, with total debt at $850 million and a net leverage ratio of 3.3 times [19] Q&A Session Summary Question: Can you help us understand the drivers of gross margin guidance? - Management explained that the gross margin in Q3 was positively impacted by labor disruption, and the expected decline in Q4 is due to a mix of lower-margin revenue from certain segments [24][26] Question: What is the underlying performance of the business excluding labor disruption? - Management indicated that excluding labor disruption, the EBITDA margin would be in the mid-sixes range, reflecting the impact of the labor disruption event on overall performance [28] Question: Are the recent increases in demand due to winter orders or underlying improvements? - Management noted that demand has improved due to both seasonal factors and broader market conditions, with a significant recovery since mid-May [31] Question: How do you view the competitive landscape currently? - Management stated that while competition remains, it is rational, and there is a growing preference for total talent solutions among clients [41] Question: What are the expectations for clinician supply and demand? - Management reported a healthy supply of clinicians overall, with specific challenges in locums, and emphasized the importance of pricing orders correctly to fill them [56][58] Question: How is the company leveraging MSP relationships for locums? - Management highlighted intentional moves to support locums MSPs and noted significant improvements in fill rates for these clients [76][78]

Q3 2025 Financial Performance - Revenue for Q3 2025 was $634.5 million, compared to $687.5 million in Q3 2024, a decrease of 7.7%[9] - Gross profit for Q3 2025 was $184.4 million, with a gross margin of 29.1%, compared to $213.1 million and 31.0% respectively in Q3 2024[9] - Operating income for Q3 2025 was $47.6 million, resulting in an operating margin of 7.5%, compared to $22.3 million and 3.2% respectively in Q3 2024[9] - Net income for Q3 2025 was $29.3 million, or $0.76 per share, compared to $7.0 million, or $0.18 per share in Q3 2024[9] - Adjusted EBITDA for Q3 2025 was $57.5 million, with an adjusted EBITDA margin of 9.1%, compared to $73.9 million and 10.7% respectively in Q3 2024[9] Segment Performance - Nurse & Allied Solutions revenue was $361 million in Q3 2025, a 9.5% decrease year-over-year[9] - Physician & Leadership Solutions revenue was $175 million in Q3 2025, a 1.3% decrease year-over-year[9] - Technology & Workforce Solutions revenue was $95 million in Q3 2025, an 11.8% decrease year-over-year[9] Balance Sheet and Cash Flow - Cash and cash equivalents totaled $53 million as of September 30, 2025, compared to $42 million as of June 30, 2025[35] - Net cash provided by operating activities was $23 million in Q3 2025, compared to $67 million in Q3 2024[37] - Free cash flow was $15 million in Q3 2025, compared to $47 million in Q3 2024[37] Q4 2025 Financial Guidance - Consolidated revenue is projected to be between $715 million and $730 million[39] - Gross margin is expected to be between 25.5% and 26.0%[39] - Adjusted EBITDA margin is projected to be between 6.8% and 7.3%[39]

Core Insights - AMN Healthcare Services reported a year-on-year revenue decline of 7.7% to $634.5 million in Q3 CY2025, although it exceeded Wall Street expectations by 2.7% [6][7] - The company’s revenue guidance for the next quarter is $722.5 million at the midpoint, which is 16.4% above analysts' expectations [6][7] - Despite the revenue decline, AMN Healthcare's adjusted EPS of $0.39 was 95.2% above analysts' consensus estimates, although it represents a 10.5% annual decline [6][13] Revenue Performance - Over the last two years, AMN Healthcare's travelers on assignment averaged a 20.5% year-on-year decline, indicating a struggle with demand [1] - The company has experienced an 18.6% annual revenue decline over the past two years, reflecting a loss of previous gains [2] - AMN Healthcare's sales growth over the last five years was a modest 2.9% compounded annual growth rate, which is below industry standards [3] Profitability Metrics - The average operating margin for AMN Healthcare over the last five years was 7.1%, which is considered weak for a healthcare business [9] - The operating margin decreased by 20.2 percentage points over the last five years, indicating rising expenses that could not be passed onto customers [10] - In the latest quarter, the operating margin improved to 7.5%, up 4.3 percentage points year on year, suggesting improved efficiency despite revenue decline [11] Future Outlook - Company management is guiding for a 1.7% year-on-year decline in sales for the next quarter, while sell-side analysts expect a 7.3% revenue decline over the next 12 months [7] - The stock price increased by 5.3% to $19.40 immediately after the earnings report, indicating a positive market reaction despite underlying challenges [14]

Financial Performance - Q3 2025 consolidated revenue was $634 million, an 8% decrease year-over-year and a 4% decrease sequentially[1]. - Adjusted EBITDA for Q3 2025 was $58 million, a 22% decrease year-over-year, with an adjusted EBITDA margin of 9.1%[11]. - Net income for Q3 2025 was $29 million, or $0.76 per diluted share, compared to a net loss of $88 million in Q3 2024[1]. - Total revenue for Q3 2025 was $634.5 million, a decrease of 7.7% from $687.5 million in Q2 2025 and a decrease of 12.4% from $658.2 million in Q3 2024[31]. - Gross profit for Q3 2025 was $184.4 million, resulting in a gross margin of 29.1%, down from 31.0% in Q2 2025 and 29.8% in Q3 2024[31]. - Operating income for Q3 2025 was $47.6 million, with an operating margin of 7.5%, compared to an operating loss of $123.7 million in Q2 2025[31]. - Net income for Q3 2025 was $29.3 million, or $0.76 per diluted share, compared to a net loss of $116.2 million in Q2 2025[32]. - The total revenue for the nine months ended September 30, 2025, was $1.982 billion, down from $2.249 billion in the same period of 2024, indicating a decrease of approximately 11.9%[39]. Segment Performance - Nurse and Allied Solutions segment revenue was $361 million, down 9% year-over-year, with travel nurse staffing revenue decreasing by 20%[6]. - Physician and Leadership Solutions segment revenue was $178 million, down 1% year-over-year, with locum tenens revenue increasing by 3%[7]. - Technology and Workforce Solutions segment revenue was $95 million, a 12% decrease year-over-year, primarily due to the sale of Smart Square[8]. - The average number of travelers on assignment in the Nurse and allied solutions segment was 8,203 for the three months ended September 30, 2025, compared to 9,176 in the same period of 2024[39]. - Revenue per day filled in the Physician and leadership solutions segment was $2,764 for the three months ended September 30, 2025, compared to $2,562 in the same period of 2024, showing an increase of approximately 7.8%[39]. Cash Flow and Financial Position - Cash flow from operations was $23 million, and the company paid off its revolving line of credit using proceeds from the sale of Smart Square, totaling $65 million[3]. - Cash and cash equivalents at the end of Q3 2025 were $82.9 million, an increase from $72.5 million at the beginning of the period[36]. - Total assets decreased to $2.14 billion as of September 30, 2025, down from $2.42 billion at the end of 2024[34]. - Total liabilities were $1.49 billion as of September 30, 2025, compared to $1.71 billion at the end of 2024[34]. - Net cash provided by operating activities for Q3 2025 was $22.7 million, a significant decrease from $66.7 million in Q2 2025[36]. - The company reported a net cash used in financing activities of $71.2 million in Q3 2025, compared to $60.5 million in Q2 2025[36]. Guidance and Future Outlook - Fourth quarter 2025 revenue guidance is projected at $715 - $730 million, with a gross margin of 25.5% - 26.0%[15]. - Labor disruption revenue in Q4 2025 is expected to be approximately $100 million, compared to $62 million in the prior-year quarter[16]. - The company provided guidance for the adjusted EBITDA margin for the fourth quarter of 2025, estimating it to be between 6.8% and 7.3%[42]. Debt and Financial Management - The company refinanced its senior unsecured notes due in 2027 with new notes due in 2031, enhancing financial flexibility[4]. - The company’s leverage ratio as of September 30, 2025, was 3.3, an increase from 2.8 as of December 31, 2024[41]. Goodwill and Impairment - Goodwill decreased to $755.8 million as of September 30, 2025, down from $897.5 million at the end of 2024[34]. - The company reported a goodwill impairment loss of $109.515 million for the nine months ended September 30, 2025[38]. Non-GAAP Measures - Management included non-GAAP measures to provide investors with an alternative method for assessing the Company's operating results focused on operating performance[10]. - Management believes adjusted net income is not indicative of the Company's operating performance but is used in conjunction with GAAP measures[10]. - Tax benefits and deficiencies related to equity awards vested and ESPP are included in the adjustments for non-GAAP measures[10].

Core Insights - AMN Healthcare Services reported third quarter 2025 revenue of $634 million, an 8% decrease year-over-year, with adjusted EBITDA of $58 million, reflecting a 22% decline from the previous year [1][4][10] - The company achieved a net income of $29 million, significantly up from $7 million in Q3 2024, resulting in diluted earnings per share of $0.76 compared to $0.18 a year ago [1][4][10] - The company anticipates fourth quarter 2025 revenue to be between $715 million and $730 million, with expectations of a sequential increase in travel nursing demand [14][15] Financial Performance - Consolidated revenue for Q3 2025 was $634.5 million, down 8% from Q3 2024 and down 4% from Q2 2025 [1][4] - Gross profit for the quarter was $184.4 million, a 13% decrease year-over-year, with a gross margin of 29.1% [1][9] - Adjusted diluted EPS was $0.39, down 36% from $0.61 in Q3 2024 [1][10] Segment Performance - Nurse and Allied Solutions segment revenue was $361 million, a 9% decrease year-over-year, with travel nurse staffing revenue down 20% [5][36] - Physician and Leadership Solutions segment reported revenue of $178 million, down 1% year-over-year, while locum tenens revenue increased by 3% [6][36] - Technology and Workforce Solutions segment revenue was $95 million, a decrease of 12% year-over-year, primarily due to the sale of Smart Square scheduling software [8][36] Operational Highlights - Cash flow from operations was $23 million, and the company paid off its revolving line of credit with proceeds from the sale of Smart Square totaling $65 million [6][11] - The company refinanced its senior unsecured notes due in 2027 with new notes due in 2031, enhancing financial flexibility [12][13] - Staffing orders rebounded in Q3, with winter order volume higher than the previous year, indicating potential growth in travel nursing for Q4 [4][6] Guidance and Outlook - For Q4 2025, the company expects revenue to be 1-3% lower than the prior year but up 13-15% sequentially [15] - Labor disruption revenue is projected at approximately $100 million, compared to $62 million in the prior-year quarter [15] - The company anticipates a gross margin of 25.5% to 26.0% for Q4, reflecting a decrease due to lower margins on labor disruption revenue [14][15]