Washington, DC 20549 ——————— FORM 10-Q ——————— ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the Quarterly Period Ended June 30, 2025 Or ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the Transition Period From _________ to _________ UNITED STATES SECURITIES AND EXCHANGE COMMISSION ——————— CROSS COUNTRY HEALTHCARE, INC. (Exact name of registrant as specified in its charter) ——————— Delaware 0-33169 13-4066229 (St ...

Exhibit 99.1 CROSS COUNTRY HEALTHCARE ANNOUNCES SECOND QUARTER 2025 FINANCIAL RESULTS BOCA RATON, Fla., August 6, 2025--Cross Country Healthcare, Inc. (the Company) (Nasdaq: CCRN) today announced financial results for its second quarter ended June 30, 2025. Selected Financial Information: | | | | | Variance | | Variance | | --- | --- | --- | --- | --- | --- | --- | | | | | | Q2 2025 vs | | Q2 2025 vs | | Dollars are in thousands, except per share amounts | | Q2 2025 | | Q2 2024 | | Q1 2025 | | Revenue | $ | ...

Core Viewpoint - Wall Street anticipates a year-over-year decline in earnings for Cross Country Healthcare (CCRN) due to lower revenues, with actual results being crucial for stock price movement [1][2]. Earnings Expectations - The upcoming earnings report is expected to show quarterly earnings of $0.07 per share, reflecting a 30% decrease year-over-year, and revenues of $293.95 million, down 13.5% from the previous year [3]. - The consensus EPS estimate has been revised down by 2.27% over the last 30 days, indicating a bearish sentiment among analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that the Most Accurate Estimate for Cross Country is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -44.44%, suggesting a challenging outlook for beating earnings expectations [12]. - The stock currently holds a Zacks Rank of 4, further complicating the prediction of an earnings beat [12]. Historical Performance - In the last reported quarter, Cross Country was expected to post earnings of $0.04 per share but exceeded expectations with earnings of $0.06, resulting in a surprise of +50.00% [13]. - Over the past four quarters, the company has beaten consensus EPS estimates twice [14]. Conclusion - Cross Country does not appear to be a strong candidate for an earnings beat, and investors should consider additional factors when evaluating the stock ahead of the earnings release [17].

I last covered Cross Country Healthcare, Inc. (NASDAQ: CCRN ) in April, when I laid out the nature of the company's acquisition by Aya Healthcare. I rated the stock a sell, arguing that there was a good chanceI am a software developer by trade who focuses on finding value in the market wherever it may lie. I'm looking mainly in small caps for opportunities that provide asymmetric upside. I'm also interested in generating income through my investments, which leads me to look at high dividend yields that are ...

Company Overview and Strategy - Cross Country Healthcare aims to be a digitally transformed, innovative enterprise addressing clients' labor challenges[5] - The company's mission is connecting people and jobs through technology and solutions, prioritizing clinical excellence and patient care[6] - A key strategy involves expanding market presence with the Intellify Vendor Management System (VMS) and other technology enhancements[13] Financial Performance and Outlook - In Q3 2024, Cross Country Healthcare reported revenue of $315.1 million, a gross margin of 20.4%, adjusted EBITDA of $10.3 million, and adjusted EPS of $0.12[70] - Q4 2024 guidance includes revenue between $300 million and $310 million, adjusted EBITDA between $11 million and $13 million, and adjusted EPS between $0.10 and $0.14[72] - The company has a strong liquidity profile with $64 million in cash and cash equivalents and zero net funded debt[76] Market Dynamics and Trends - Healthcare jobs represented 26% of all job growth over the last twelve months[59] - September 2024 employment increased approximately 4% compared to the prior year[59] - Aging demographics are driving increased demand for healthcare professionals, with the 65-and-older population projected to grow by 36% as of 2020[51, 52] ESG Initiatives - In 2023, the company recycled 13,603 lbs of electronic waste[28] - The company supported a community initiative to plant over 100,000 trees in the Northwest region of the US in 2022[32] - In 2023, Cross Country Healthcare raised and donated approximately $300,000 to nearly 30 non-profit partner organizations[37]

Company Performance - Cross Country Healthcare (CCRN) reported quarterly earnings of $0.06 per share, exceeding the Zacks Consensus Estimate of $0.04 per share, but down from $0.19 per share a year ago [1] - The earnings surprise for this quarter was 50%, while the previous quarter saw a negative surprise of -63.64% [2] - The company posted revenues of $293.41 million for the quarter, missing the Zacks Consensus Estimate by 3.67%, and down from $379.17 million year-over-year [3] Market Position - Cross Country shares have declined approximately 24.1% since the beginning of the year, compared to a decline of -4.7% for the S&P 500 [4] - The current Zacks Rank for Cross Country is 4 (Sell), indicating expectations of underperformance in the near future [7] Future Outlook - The consensus EPS estimate for the upcoming quarter is $0.09 on revenues of $306.93 million, and for the current fiscal year, it is $0.36 on revenues of $1.24 billion [8] - The staffing firms industry, to which Cross Country belongs, is currently ranked in the bottom 15% of over 250 Zacks industries, suggesting potential challenges ahead [9]

Revenue Performance - Consolidated revenue for Q1 2025 decreased by 22.6% year-over-year to $293.4 million, down from $379.2 million in Q1 2024, primarily due to declines in travel nurse and allied staffing volumes and average bill rates [117][126]. - Nurse and Allied Staffing segment accounted for approximately 83% of total revenue in Q1 2025, while Physician Staffing represented about 17% [115][116]. - Revenue from Nurse and Allied Staffing decreased by $89.9 million, or 27.1%, to $242.3 million in Q1 2025, driven by an 18.8% decline in professionals on assignment [140]. - Physician Staffing revenue increased by $4.1 million, or 8.8%, to $51.1 million in Q1 2025, attributed to higher rates and a favorable specialty mix [143]. - Average revenue per FTE per day in Nurse and Allied Staffing decreased by $37, or 9.3%, to $360 in Q1 2025 [139]. - Total days filled in Physician Staffing decreased by 4.6% to 22,692 in Q1 2025, while revenue per day filled increased by $277, or 14.0%, to $2,253 [145]. Financial Performance - Net loss attributable to common stockholders for Q1 2025 was $0.5 million, compared to net income of $2.7 million in Q1 2024, marking a decline of 118.2% [117][125]. - Cash and cash equivalents as of March 31, 2025, totaled $80.7 million, with cash flow from operating activities at $5.7 million for the quarter [118]. - Corporate overhead decreased to $15.1 million in Q1 2025 from $17.6 million in Q1 2024, representing 5.2% of consolidated revenue [146]. - Net cash provided by operating activities decreased by $0.3 million to $5.7 million in Q1 2025 compared to $6.0 million in Q1 2024 [150]. - Cash and cash equivalents were reported at $80.7 million as of March 31, 2025, with working capital increasing by $1.6 million to $216.2 million [147]. Expenses - Direct operating expenses decreased by 22.2% to $234.8 million in Q1 2025, representing 80.0% of total revenue, up from 79.6% in the prior year [127]. - Selling, general and administrative expenses decreased by 17.0% to $52.5 million, but as a percentage of total revenue, they increased to 17.9% from 16.7% [128]. - Acquisition and integration-related costs of $2.0 million were incurred in Q1 2025 related to the pending Aya Merger, with no such costs in Q1 2024 [131]. Tax and Income - Income tax benefit for Q1 2025 was $0.4 million, compared to an expense of $1.0 million in Q1 2024, primarily due to a decrease in book income [137]. Merger and Acquisition - The Aya Merger is expected to close in the second half of 2025, pending regulatory approvals and other customary closing conditions [119].

Financial Performance - First quarter 2025 revenue was $293.4 million, a decrease of 23% year-over-year and 5% sequentially [5]. - Net loss attributable to common stockholders was $0.5 million, compared to net income of $2.7 million in the prior year [5]. - Adjusted EBITDA for Q1 2025 was $8.6 million, representing 2.9% of revenue, down from $15.3 million or 4.0% of revenue in the prior year [5]. - For the three months ended March 31, 2025, Cross Country Healthcare reported a revenue of $293,408,000, a decrease of 23% compared to $379,174,000 for the same period in 2024 [26]. - Adjusted EBITDA for the same period was $8,619,000, with an adjusted EBITDA margin of 2.9%, down from 4.0% in the previous year [22]. - The net loss attributable to common stockholders for Q1 2025 was $(490,000), compared to a net income of $2,692,000 in Q1 2024 [22]. Revenue Breakdown - Nurse and Allied Staffing revenue was $242.3 million, a decrease of 27% year-over-year [6]. - Physician Staffing revenue increased by 9% year-over-year to $51.1 million [7]. - Nurse and Allied Staffing revenue per FTE per day decreased to $360 in Q1 2025 from $397 in Q1 2024 [30]. Cash Flow and Assets - Cash flows provided by operations were $5.7 million, down 5% year-over-year [8]. - As of March 31, 2025, the company had $80.7 million in cash and cash equivalents with no debt outstanding [10]. - Cash and cash equivalents at the end of Q1 2025 were $80,697,000, a slight decrease from $81,633,000 at the end of Q4 2024 [23]. - The total current assets decreased to $325,199,000 as of March 31, 2025, down from $335,000,000 at the end of 2024 [23]. - Total liabilities decreased to $158,025,000 as of March 31, 2025, compared to $170,292,000 at the end of 2024 [23]. - The company reported a net cash provided by operating activities of $5,681,000 for Q1 2025, down from $6,011,000 in Q1 2024 [28]. Costs and Expenses - The company incurred acquisition and integration-related costs of $2,041,000 in Q1 2025, compared to no such costs in Q1 2024 [26]. - The Company incurred a settlement expense of $1.2 million and recorded a $1.8 million recovery related to a previous loss in Q4 2024 [33]. - Legal and other losses in Q1 2024 amounted to $3.7 million, representing an offer to settle a lawsuit and estimated costs related to an unrecoverable asset [33]. - Impairment charges for Q1 2024 and Q4 2024 were related to right-of-use assets and included a write-off of goodwill and intangible assets [33]. Strategic Focus - The company is focused on driving productivity and leveraging AI automation for improved profitability [3]. - The merger with Aya Healthcare is expected to be consummated in the second half of 2025 [3]. Financial Metrics and Definitions - Adjusted EPS, a non-GAAP financial measure, is presented as a useful supplement to reported EPS, reflecting the Company's underlying business performance [33]. - Contribution income is defined as income from operations before various costs, used by management to assess segment performance [33]. - Gross profit margin is calculated by dividing gross profit by revenue from services, excluding allocated depreciation and amortization expense [33]. - Average revenue per FTE per day is calculated by dividing Nurse and Allied Staffing revenue per FTE by the number of days worked [33]. - Days filled is calculated by dividing total hours invoiced during the period by 8 hours [33]. - Revenue per day filled is calculated by dividing reported revenue by days filled for the period presented [33]. - Corporate overhead includes unallocated executive leadership and centralized corporate functional support costs [33].

Core Insights - Cross Country Healthcare (CCRN) reported a revenue of $309.94 million for the quarter ended December 2024, reflecting a year-over-year decline of 25.1% and an EPS of $0.04 compared to $0.29 a year ago [1] - The reported revenue exceeded the Zacks Consensus Estimate of $306.2 million by 1.22%, while the EPS fell short of the consensus estimate of $0.11, resulting in a surprise of -63.64% [1] Financial Performance - The company experienced a return of -7.5% over the past month, compared to a -3.5% change in the Zacks S&P 500 composite, and currently holds a Zacks Rank 3 (Hold) [3] - Nurse and allied staffing reported FTEs of 7,621, surpassing the two-analyst average estimate of 7,441 [4] - Physician staffing generated revenue per day filled of $2,085, exceeding the two-analyst average estimate of $1,910, with days filled in HRS totaling 25,427 compared to the estimated 19,207 [4] - Revenue from physician staffing was $53.01 million, above the four-analyst average estimate of $51.59 million, marking a year-over-year increase of 13.1% [4] - Revenue from nurse and allied staffing was $256.93 million, slightly above the four-analyst average estimate of $254.81 million, but represented a year-over-year decline of 30% [4]

Core Insights - Cross Country Healthcare (CCRN) reported quarterly earnings of $0.04 per share, missing the Zacks Consensus Estimate of $0.11 per share, and down from $0.29 per share a year ago [1] - The company posted revenues of $309.94 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 1.22%, but down from $414.04 million year-over-year [3] Earnings Performance - The earnings surprise for the quarter was -63.64%, with the company previously expected to post earnings of $0.10 per share but actually producing $0.12 per share in the prior quarter, resulting in a positive surprise of 20% [2] - Over the last four quarters, Cross Country has surpassed consensus EPS estimates two times [2] Revenue Insights - The company has topped consensus revenue estimates four times over the last four quarters [3] - Current consensus EPS estimate for the coming quarter is $0.08 on revenues of $301.78 million, and for the current fiscal year, it is $0.54 on revenues of $1.25 billion [8] Market Performance - Cross Country shares have declined approximately 6.6% since the beginning of the year, compared to a decline of -1.8% for the S&P 500 [4] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [7] Industry Context - The Staffing Firms industry, to which Cross Country belongs, is currently ranked in the bottom 22% of over 250 Zacks industries, suggesting potential challenges ahead [9] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Cross Country's stock performance [6]