"I believe in Cross Country and its future, and I am honored to be returning as its CEO,†said Mr. Clark. He continued, "Cross Country stands at a pivotal moment, with the opportunity to redefine its trajectory as an innovative tech-enabled workforce solutions leader built on a nearly 40-year legacy as an iconic brand in our industry. Our strong value proposition combines trust, unrelenting quality, clinical excellence and deep client relationships with modern digital platforms and data driven solutions that ...

On Wednesday, December 3rd, 2025, the stock of Cross Country Healthcare ( CCRN ) fell 6.16% after the company didn't release an update to their merger agreement with Aya Healthcare. December 3rd was a fallback deadline specifiedI 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 divide ...

U.S. stocks traded higher this morning, with the Dow Jones gaining around 0.1% on Thursday.Following the market opening Thursday, the Dow traded up 0.10% to 47,930.00 while the NASDAQ rose 0.01% to 23,454.19. The S&P 500 also rose, gaining, 0.10% to 6,856.66.Check This Out: Top 2 Tech Stocks That May Keep You Up At Night This MonthLeading and Lagging SectorsFinancial shares jumped by 0.4% on Thursday.In trading on Wednesday, health care stocks fell by 0.6%.Top HeadlineDollar General Corporation (NYSE:DG) sh ...

Following a request for additional information ("Second Request†) from the FTC received on February 20, 2025 by the Company and Aya Healthcare in connection with the Merger Agreement, each of the Company and Aya Healthcare certified to the FTC on August 29, 2025 that they had substantially complied with the Second Request. As a result of discussions with the FTC, the HSR waiting period was initially set to expire on November 17, 2025. In addition, the Merger Agreement end date was extended from September ...

Core Insights - Cross Country Healthcare (CCRN) reported quarterly earnings of $0.03 per share, missing the Zacks Consensus Estimate of $0.04 per share, and down from $0.12 per share a year ago [1] - The company posted revenues of $250.05 million for the quarter ended September 2025, missing the Zacks Consensus Estimate by 6.45%, and down from $315.12 million year-over-year [3] Earnings Performance - The earnings surprise for the quarter was -25.00%, and the company has surpassed consensus EPS estimates only once in the last four quarters [2] - A quarter ago, the company was expected to post earnings of $0.07 per share but instead reported a loss of $0.01, resulting in a surprise of -114.29% [2] Stock Performance - Cross Country shares have declined approximately 31.6% since the beginning of the year, contrasting with the S&P 500's gain of 16.4% [4] - The current Zacks Rank for the stock is 4 (Sell), indicating expectations of underperformance in the near future [7] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.05 on revenues of $279.41 million, and for the current fiscal year, it is $0.14 on revenues of $1.11 billion [8] - The estimate revisions trend for Cross Country was unfavorable prior to the earnings release, which may impact future stock movements [6][7] Industry Context - The Staffing Firms industry, to which Cross Country belongs, is currently ranked in the bottom 9% of over 250 Zacks industries, suggesting a challenging environment [9] - Another company in the same industry, Korn/Ferry (KFY), is expected to report quarterly earnings of $1.30 per share, reflecting a year-over-year change of +7.4% [10]

Financial Performance - Consolidated revenue for Q3 2025 decreased by 20.6% year-over-year to $250.1 million, primarily due to volume declines in the Nurse and Allied Staffing and Physician Staffing segments [124]. - Net loss attributable to common stockholders in Q3 2025 was $4.8 million, compared to net income of $2.6 million in the same period last year [124]. - Revenue from services decreased 20.9% to $817.5 million for the nine months ended September 30, 2025, compared to $1.0 billion for the same period in 2024, primarily due to volume declines in Nurse and Allied Staffing [145]. - Net loss attributable to common stockholders was $11.9 million for the nine months ended September 30, 2025, compared to a net loss of $10.8 million for the same period in 2024, representing a 10.4% increase in loss [144]. Segment Performance - Homecare Staffing segment experienced growth of 29.1% year-over-year, partially offsetting declines in other segments [124]. - Nurse and Allied Staffing accounted for approximately 81% of total revenue in Q3 2025, while Physician Staffing represented about 19% [126]. - Contribution income for Nurse and Allied Staffing decreased 26.1% to $14.2 million for the three months ended September 30, 2025, compared to $19.3 million for the same period in 2024 [162]. - Revenue for Physician Staffing decreased by $2.2 million, or 4.3%, to $48.1 million for the three months ended September 30, 2025, primarily due to a decrease in billable days [164]. - For the nine months ended September 30, 2025, Nurse and Allied Staffing revenue decreased by $220.0 million, or 24.8%, to $668.5 million, driven by a 17.4% decline in professionals on assignment [168]. Expenses and Costs - Direct operating expenses decreased by 20.7% to $199.1 million, reflecting the overall revenue decline [135]. - Selling, general and administrative expenses decreased by 13.6% to $46.9 million, with an increase in expenses as a percentage of total revenue to 18.8% [136]. - Direct operating expenses decreased 20.7% to $651.9 million for the nine months ended September 30, 2025, as compared to $821.8 million for the same period in 2024, with direct operating expenses as a percentage of total revenue increasing to 79.7% [146]. - Selling, general and administrative expenses decreased 16.0% to $149.4 million for the nine months ended September 30, 2025, compared to $177.8 million for the same period in 2024, with expenses as a percentage of total revenue increasing to 18.3% [147]. - Acquisition and integration-related costs totaled $12.2 million for the nine months ended September 30, 2025, primarily related to the pending Aya Merger, with no such costs reported for the same period in 2024 [150]. - Restructuring costs were $2.4 million for the nine months ended September 30, 2025, down from $4.1 million for the same period in 2024 [151]. - Legal and other losses decreased significantly to $2.2 million for the nine months ended September 30, 2025, compared to $7.6 million for the same period in 2024 [152]. Cash Flow and Liquidity - Cash and cash equivalents totaled $99.1 million as of September 30, 2025, with cash flow from operating activities at $20.1 million for the quarter [125]. - Net cash provided by operating activities decreased by $65.9 million to $30.0 million for the nine months ended September 30, 2025 [178]. - As of September 30, 2025, the company reported $99.1 million in cash and cash equivalents, with working capital decreasing by $5.0 million to $209.6 million [175]. - Borrowing base availability under the ABL was $121.4 million as of September 30, 2025, with no borrowings drawn [182]. Mergers and Acquisitions - The company is in the process of a merger with Aya Holdings II Inc., with the end date extended to December 3, 2025, pending regulatory review [127]. - The company continues to evaluate acquisition opportunities to enhance its business, including recent acquisitions like Workforce Solutions Group, Inc. [122]. Operational Metrics - Average Nurse and Allied Staffing revenue per FTE per day decreased to $351 for the nine months ended September 30, 2025, down from $383 for the same period in 2024, a decline of 8.4% [160]. - The average number of FTEs on contract decreased by 16.8% to 20,695 for the three months ended September 30, 2025, compared to the prior year [163]. - Total days filled decreased by 15.3% to 20,695 for the three months ended September 30, 2025, while revenue per day filled increased to $2,324 [166]. - Corporate overhead decreased to $13.7 million for the three months ended September 30, 2025, from $15.5 million in the prior year, representing 5.5% of consolidated revenue [167].

Financial Performance - Third quarter consolidated revenue was $250.1 million, a decrease of 21% year-over-year and 9% sequentially [3]. - Net loss attributable to common stockholders was $4.8 million, compared to net income of $2.6 million in the prior year, representing a 287% increase in loss [2]. - Adjusted EBITDA was $6.5 million, or 2.6% of revenue, down from $10.3 million, or 3.3% of revenue in the prior year [5]. - Revenue from services for Q3 2025 was $250,052, a decrease of 20.7% compared to $315,119 in Q3 2024 [22]. - Net loss attributable to common stockholders for Q3 2025 was $(4,774), compared to a net income of $2,555 in Q3 2024 [22]. - Adjusted EBITDA for Q3 2025 was $6,524, with an adjusted EBITDA margin of 2.6%, down from 3.3% in Q3 2024 [24]. - Contribution income for Q3 2025 was $18.550 million, down 22% from $23.880 million in Q3 2024 [28]. - The company reported a basic net loss per share of $(0.15) for Q3 2025, compared to earnings of $0.08 per share in Q3 2024 [22]. - Loss from operations for the nine months ended September 30, 2025 was $12.809 million, an improvement of 5% compared to a loss of $13.432 million in the same period of 2024 [28]. Cash Flow and Assets - Cash flows provided by operations were $20.1 million for the quarter, a 169% increase compared to the same quarter last year [9]. - The company had $99 million in cash and cash equivalents with no debt outstanding as of September 30, 2025 [11]. - Cash and cash equivalents increased to $99,132 as of September 30, 2025, compared to $81,633 at December 31, 2024 [26]. - Total current assets decreased to $295,113 as of September 30, 2025, from $335,000 at December 31, 2024 [26]. - Cash and cash equivalents at the end of Q3 2025 were $99.132 million, up from $64.021 million at the end of Q3 2024 [30]. - Net cash provided by operating activities for Q3 2025 was $20.114 million, significantly higher than $7.470 million in Q3 2024 [30]. Staffing and Operations - Homecare Staffing revenue grew more than 29% year-over-year, indicating strong performance in this segment [4]. - Average field contract personnel on a full-time equivalent (FTE) basis decreased to 6,371 from 7,660 in the prior year [7]. - Revenue per FTE per day was $343, down from $373 in the prior year [7]. - Nurse and Allied Staffing revenue per FTE per day decreased to $343 in Q3 2025 from $373 in Q3 2024 [32]. - Days filled for Physician Staffing decreased to 20,695 in Q3 2025 from 24,424 in Q3 2024 [32]. - Corporate overhead for Q3 2025 was $13.656 million, a decrease of 12% from $15.531 million in Q3 2024 [28]. Expenses and Liabilities - Total operating expenses for Q3 2025 were $256,025, down from $312,266 in Q3 2024, reflecting a reduction of 18% [22]. - Total liabilities decreased to $130,089 as of September 30, 2025, compared to $170,292 at December 31, 2024 [26]. - Retained earnings decreased to $206,136 as of September 30, 2025, from $218,059 at December 31, 2024 [26]. - Acquisition and integration-related costs for Q3 2025 were $4,147, compared to $0 in Q3 2024 [24]. - Acquisition and integration-related costs for the nine months ended September 30, 2025 were $12.183 million, compared to $3 million in the same period of 2024 [28]. Mergers and Acquisitions - The pending merger with Aya Healthcare is subject to regulatory approvals and has been extended to December 3, 2025 [12].

Core Insights - Cross Country Healthcare (CCRN) announced a merger at the end of 2024, which is a significant development for the company [1] Group 1: Company Overview - CCRN is focused on finding value in the market, particularly in small-cap opportunities that offer asymmetric upside [1] - The company is interested in generating income through investments, emphasizing high sustainable dividend yields [1] Group 2: Investment Strategy - Key factors for investment consideration include insider buying, high insider ownership, a history of free cash flow growth, and substantial catalysts for turnaround [1] - The company is open to various investment strategies, including high yield debt and selling puts, but is not interested in short positions [1] Group 3: Influences and Philosophy - Major investment influences include renowned investors such as Warren Buffett and Peter Lynch [1] - The preferred investment holding period is long-term, with a focus on matching market returns during bull runs and generating superior returns during market declines [1] Group 4: Educational Background - The company has a Bachelor of Science degree with a major in Economics and Finance, indicating a strong foundational knowledge in financial analysis [1]

Core Viewpoint - The analysis compares Kelly Services (KELYA) and Cross Country Healthcare (CCRN) to determine which stock represents a better value opportunity for investors [1]. Valuation Metrics - KELYA has a forward P/E ratio of 5.78, significantly lower than CCRN's forward P/E of 69.19, indicating KELYA may be undervalued [5]. - KELYA's PEG ratio is 0.44, while CCRN's PEG ratio is 6.92, suggesting KELYA has a more favorable earnings growth outlook relative to its price [5]. - KELYA's P/B ratio is 0.35, compared to CCRN's P/B of 0.92, further supporting KELYA's valuation as more attractive [6]. Zacks Rank and Estimate Revisions - KELYA holds a Zacks Rank of 2 (Buy), indicating a positive earnings outlook, while CCRN has a Zacks Rank of 5 (Strong Sell), suggesting a weaker earnings outlook [3]. - KELYA has experienced stronger estimate revision activity compared to CCRN, reinforcing its position as the superior investment choice for value investors [7]. Value Grades - KELYA has a Value grade of A, while CCRN has a Value grade of C, reflecting KELYA's more favorable valuation metrics [6].

Core Viewpoint - Cross Country Healthcare (NASDAQ: CCRN) experienced a 5% decline following news regarding the Federal Trade Commission's (FTC) review of its proposed sale to Aya Healthcare, valued at $615 million [2] Group 1 - The FTC is currently conducting a review of the planned transaction by deposing third parties involved in the process [2]