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]

FORM 10-Q [Filing Information](index=1&type=section&id=Filing%20Information) This section provides filing details for Cross Country Healthcare, Inc.'s Q2 2025 Form 10-Q, identifying it as an accelerated filer on Nasdaq - The report is a Quarterly Report on Form 10-Q for the period ended **June 30, 2025**[2](index=2&type=chunk) Registrant Information | Detail | Value | | :--- | :--- | | Registrant Name | CROSS COUNTRY HEALTHCARE, INC. | | State of Incorporation | Delaware | | Commission File Number | 0-33169 | | Trading Symbol | CCRN | | Exchange Registered | The Nasdaq Stock Market | | Filer Status | Accelerated filer | | Common Stock Outstanding (as of July 18, 2025) | 32,761,995 shares | Information Relating to Forward-Looking Statements [Forward-Looking Statements and Risk Factors](index=2&type=section&id=Forward-Looking%20Statements%20and%20Risk%20Factors) This section outlines forward-looking statements and key risks, including the proposed Aya Merger and macroeconomic factors - Forward-looking statements are predictive and subject to known and unknown risks, including those related to the proposed Aya Merger[7](index=7&type=chunk) - Key risks associated with the proposed Aya Merger include: * Timing and closing conditions (e.g., regulatory approval from FTC) * Diversion of management time and disruption to business operations * Adverse effects on stock price, customer retention, and key personnel * Potential litigation and unexpected costs - General risk factors include the overall macroeconomic environment (inflation, interest rates), demand for healthcare services, ability to attract and retain personnel, cybersecurity risks, and government regulation[7](index=7&type=chunk) Part I. Financial Information [Item 1. Condensed Consolidated Financial Statements](index=4&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements) This section presents unaudited condensed consolidated financial statements, including balance sheets, operations, equity, cash flows, and notes [Condensed Consolidated Balance Sheets (Unaudited)](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets%20(Unaudited)) The Condensed Consolidated Balance Sheets provide a snapshot of the company's financial position at June 30, 2025, and December 31, 2024 Condensed Consolidated Balance Sheet Highlights (Amounts in thousands) | Item | June 30, 2025 | December 31, 2024 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Total Assets | $553,818 | $589,251 | $(35,433) | -6.0% | | Total Liabilities | $141,576 | $170,292 | $(28,716) | -16.9% | | Total Stockholders' Equity | $412,242 | $418,959 | $(6,717) | -1.6% | | Cash and cash equivalents | $81,193 | $81,633 | $(440) | -0.5% | | Accounts receivable, net | $201,694 | $223,238 | $(21,544) | -9.6% | | Total current assets | $309,056 | $335,000 | $(25,944) | -7.7% | | Total current liabilities | $96,165 | $120,402 | $(24,237) | -20.1% | [Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited)](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Loss%20(Unaudited)) The Condensed Consolidated Statements of Operations and Comprehensive Loss show decreased revenue and reduced net loss for Q2 2025, driven by lower operating expenses Key Financial Performance Indicators (Amounts in thousands, except per share data) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Revenue from services | $274,072 | $339,771 | $(65,699) | -19.3% | | Total operating expenses | $279,931 | $358,977 | $(79,046) | -22.0% | | Loss from operations | $(5,859) | $(19,206) | $13,347 | 69.5% | | Net loss attributable to common stockholders | $(6,659) | $(16,050) | $9,391 | 58.5% | | Basic Net loss per share | $(0.20) | $(0.47) | $0.27 | 57.4% | | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Revenue from services | $567,480 | $718,945 | $(151,465) | -21.1% | | Total operating expenses | $574,316 | $735,230 | $(160,914) | -21.9% | | Loss from operations | $(6,836) | $(16,285) | $9,449 | 58.0% | | Net loss attributable to common stockholders | $(7,149) | $(13,358) | $6,209 | 46.5% | | Basic Net loss per share | $(0.22) | $(0.39) | $0.17 | 43.6% | - Acquisition and integration-related costs significantly increased to **$5.995 million** for the three months ended June 30, 2025, from $3 thousand in the prior year, primarily due to fees associated with the pending Aya Merger[14](index=14&type=chunk) - Credit loss expense decreased substantially to **$30 thousand** for the three months ended June 30, 2025, from $18.858 million in the prior year[14](index=14&type=chunk) [Condensed Consolidated Statements of Stockholders' Equity (Unaudited)](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity%20(Unaudited)) The Condensed Consolidated Statements of Stockholders' Equity detail changes for Q2 2025 and 2024, reflecting net losses, equity compensation, and prior year stock repurchases Changes in Stockholders' Equity (Three Months Ended June 30, Amounts in thousands) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Balances at March 31 | $418,210 | $462,448 | | Vesting of restricted stock | $(174) | $(247) | | Equity compensation | $870 | $2,259 | | Stock repurchase and retirement | — | $(14,946) | | Stock repurchase excise tax | — | $(143) | | Foreign currency translation adjustment, net of taxes | $(5) | $(1) | | Net loss | $(6,659) | $(16,050) | | Balances at June 30 | $412,242 | $433,320 | Changes in Stockholders' Equity (Six Months Ended June 30, Amounts in thousands) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Balances at December 31 | $418,959 | $467,651 | | Vesting of restricted stock | $(1,756) | $(2,953) | | Equity compensation | $2,188 | $3,457 | | Stock repurchase and retirement | — | $(21,314) | | Stock repurchase excise tax | — | $(159) | | Foreign currency translation adjustment, net of taxes | — | $(4) | | Net loss | $(7,149) | $(13,358) | | Balances at June 30 | $412,242 | $433,320 | [Condensed Consolidated Statements of Cash Flows (Unaudited)](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows%20(Unaudited)) The Condensed Consolidated Statements of Cash Flows show a significant decrease in operating cash flow for H1 2025, with stable investing and reduced financing cash outflows Cash Flow Summary (Six Months Ended June 30, Amounts in thousands) | Cash Flow Activity | 2025 | 2024 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Net cash provided by operating activities | $9,898 | $88,412 | $(78,514) | -88.8% | | Net cash used in investing activities | $(3,853) | $(5,059) | $1,206 | -23.8% | | Net cash used in financing activities | $(6,481) | $(30,846) | $24,365 | 79.0% | | Change in cash and cash equivalents | $(440) | $52,507 | $(52,947) | -100.8% | | Cash and cash equivalents at end of period | $81,193 | $69,601 | $11,592 | 16.7% | - The decrease in net cash from operating activities was primarily driven by changes in accounts receivable and accounts payable and accrued expenses[20](index=20&type=chunk) - Cash used in financing activities decreased significantly due to **no share repurchases in 2025**, compared to

Second Quarter 2025 Financial Results Overview [Selected Financial Highlights](index=1&type=section&id=Selected%20Financial%20Highlights) Q2 2025 revenue was **$274.1 million**, down 19% YoY and 7% QoQ, with a **$6.7 million** net loss and **$7.6 million** adjusted EBITDA | Metric | Q2 2025 | Q2 2025 vs Q2 2024 Change | Q2 2025 vs Q1 2025 Change | | :--------------------------------- | :-------- | :------------------------ | :------------------------ | | Revenue | $274,072 | (19) % | (7) % | | Gross profit margin* | 20.4 % | (40) bps | 40 bps | | Net loss attributable to common stockholders | $(6,659) | (59) % | (1,259) % | | Diluted EPS | $(0.20) | $0.27 | $(0.18) | | Adjusted EBITDA* | $7,591 | (46) % | (12) % | | Adjusted EBITDA margin* | 2.8 % | (140) bps | (10) bps | | Adjusted EPS* | $(0.01) | $(0.11) | $(0.07) | | Cash flows provided by operations | $4,217 | (95) % | (26) % | [Business Highlights](index=1&type=section&id=Business%20Highlights) Q2 performance met expectations, driven by growth in home care and physician staffing, alongside effective cost control measures - Q2 performance met expectations, primarily due to growth momentum in home care and physician staffing businesses and continuous cost control[4](index=4&type=chunk) - Customer retention remained stable, with significant MSP implementation and expansion plans for H2 2025[5](index=5&type=chunk) - Home care staffing business showed strong performance, with revenue growing **over 30% year-over-year**[5](index=5&type=chunk) - Physician staffing revenue increased **3% year-over-year**, driven by favorable mix and pricing[5](index=5&type=chunk) - Selling, general and administrative expenses (SG&A) decreased **5% sequentially**, benefiting from further utilization of the low-cost center of excellence in India[5](index=5&type=chunk) [Six Months Ended June 30, 2025 Consolidated Results](index=2&type=section&id=Six%20Months%20Ended%20June%2030%2C%202025%20Consolidated%20Results) Consolidated revenue for the six months ended June 30, 2025, was **$567.5 million**, down 21.1% YoY, with a **$7.1 million** net loss | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Change (YoY) | | :--------------------------------- | :------------------------- | :------------------------- | :----------- | | Consolidated revenue | $567.5 million | $718.9 million | (21.1)% | | Consolidated gross profit margin | 20.2% | 20.6% | (40) bps | | Net loss attributable to common stockholders | $7.1 million | $13.4 million | 47% (Improvement) | | Diluted EPS | $(0.22) | $(0.39) | 44% (Improvement) | | Adjusted EBITDA | $16.2 million | $29.5 million | (45)% | | Adjusted EBITDA margin | 2.9% | 4.1% | (120) bps | | Adjusted EPS | $0.05 | $0.29 | (83)% | Business Segment Performance [Nurse and Allied Staffing](index=2&type=section&id=Nurse%20and%20Allied%20Staffing) Nurse and Allied Staffing revenue was **$224.3 million**, down 23% YoY and 7% QoQ, with contribution income of **$13.9 million**, up 139% YoY | Metric | Q2 2025 | Q2 2024 | Q1 2025 | YoY Change | QoQ Change | | :--------------------------------- | :-------- | :-------- | :-------- | :--------- | :--------- | | Revenue | $224.3 million | $291.5 million | $242.3 million | (23)% | (7)% | | Contribution income | $13.9 million | $5.8 million | $17.2 million | 139% | (19)% | | Average FTEs | 7,035 | 8,415 | 7,411 | (16.4)% | (5.1)% | | Revenue per FTE per day | $348 | $377 | $360 | (7.7)% | (3.3)% | [Physician Staffing](index=2&type=section&id=Physician%20Staffing) Physician Staffing revenue was **$49.8 million**, up 3% YoY and down 3% QoQ, with contribution income of **$4.6 million**, up 13% YoY | Metric | Q2 2025 | Q2 2024 | Q1 2025 | YoY Change | QoQ Change | | :--------------------------------- | :-------- | :-------- | :-------- | :--------- | :--------- | | Revenue | $49.8 million | $48.3 million | $51.1 million | 3% | (3)% | | Contribution income | $4.6 million | $4.0 million | $4.0 million | 13% | 14% | | Total days filled | 22,228 | 24,252 | 22,692 | (8.3)% | (2.0)% | | Revenue per day filled | $2,239 | $1,992 | $2,253 | 12.4% | (0.6)% | Financial Position and Liquidity [Cash Flow Highlights](index=2&type=section&id=Cash%20Flow%20Highlights) Net cash from operating activities in Q2 2025 was **$4.2 million**, a significant 95% YoY and 26% QoQ decrease | Metric | Q2 2025 | Q2 2024 | Q1 2025 | YoY Change | QoQ Change | | :--------------------------------- | :-------- | :-------- | :-------- | :--------- | :--------- | | Net cash provided by operating activities | $4,217 | $82,401 | $5,681 | (95)% | (26)% | | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | YoY Change | | :--------------------------------- | :----------------------------- | :----------------------------- | :--------- | | Net cash provided by operating activities | $9,898 | $88,412 | (88.8)% | [Balance Sheet Highlights](index=2&type=section&id=Balance%20Sheet%20Highlights) As of June 30, 2025, the company held **$81.2 million** in cash and equivalents with no outstanding debt, reflecting a healthy balance sheet - As of June 30, 2025, the company held **$81.2 million** in cash and cash equivalents with **no outstanding debt**[5](index=5&type=chunk)[12](index=12&type=chunk) - As of June 30, 2025, the balance sheet remained healthy, with **$553.8 million** in total assets and **$141.6 million** in total liabilities[25](index=25&type=chunk) | Metric | June 30, 2025 | December 31, 2024 | | :-------------------------- | :------------ | :---------------- | | Cash and cash equivalents | $81,193 | $81,633 | | Total assets | $553,818 | $589,251 | | Total liabilities | $141,576 | $170,292 | | Total stockholders' equity | $412,242 | $418,959 | Corporate Updates and Disclosures [Pending Merger Transaction](index=3&type=section&id=Pending%20Merger%20Transaction) A merger agreement with Aya Healthcare, Inc. was signed on December 3, 2024, expected to close in Q4, leading to no Q2 earnings call or forward guidance - The company signed a merger agreement with Aya Healthcare, Inc. on **December 3, 2024**, with the transaction expected to close in **Q4**[4](index=4&type=chunk)[13](index=13&type=chunk) - Due to the pending merger transaction, the company will not hold a Q2 earnings conference call or provide forward-looking guidance[13](index=13&type=chunk) [About Cross Country Healthcare](index=3&type=section&id=About%20Cross%20Country%20Healthcare) Cross Country Healthcare, Inc. is a market-leading, technology-driven workforce solutions and consulting firm with **39 years** of experience - Cross Country Healthcare is a market-leading, technology-driven workforce solutions and consulting company[14](index=14&type=chunk) - The company has **39 years** of industry experience, helping clients solve complex labor challenges and achieve high-quality outcomes through data-driven insights[14](index=14&type=chunk) [Non-GAAP Financial Measures Explanation](index=3&type=section&id=Non-GAAP%20Financial%20Measures%20Explanation) Non-GAAP financial measures are supplementary to GAAP, used by management to assess performance by excluding items not representative of future operating results - Non-GAAP financial measures (e.g., gross margin, adjusted EBITDA, adjusted EBITDA margin, and adjusted EPS) are provided as supplementary information and should not replace or be superior to GAAP measures[16](index=16&type=chunk) - Management uses non-GAAP measures for consistency and comparability with prior year results, believing they aid investors in evaluating performance by excluding items not representative of future operating performance[16](index=16&type=chunk) [Forward-Looking Statements](index=3&type=section&id=Forward-Looking%20Statements) This press release contains forward-looking statements regarding future performance and the Aya merger, subject to inherent risks and uncertainties, with no obligation to update - This press release contains forward-looking statements regarding the company's future performance, the expected timing, completion, and potential benefits of the Aya merger transaction, and other related matters[17](index=17&type=chunk) - Forward-looking statements are subject to inherent risks, uncertainties, and changes in circumstances that could cause actual results to differ materially from expectations[18](index=18&type=chunk) - The company undertakes no obligation to update or revise any forward-looking statements, and investors should refer to risks and uncertainties identified in the company's SEC filings[18](index=18&type=chunk)[19](index=19&type=chunk) Detailed Financial Statements [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) | | June 30, 2025 | June 30, 2024 | March 31, 2025 | June 30, 2025 (YTD) | June 30, 2024 (YTD) | | :------------------------------------- | :------------ | :------------ | :------------- | :------------------ | :------------------ | | Revenue from services | $274,072 | $339,771 | $293,408 | $567,480 | $718,945 | | Direct operating expenses | 218,068 | 268,966 | 234,750 | 452,818 | 570,843 | | Selling, general and administrative expenses | 50,050 | 60,255 | 52,486 | 102,536 | 123,507 | | Credit loss expense | 30 | 18,858 | 35 | 65 | 20,148 | | Depreciation and amortization | 4,101 | 4,719 | 4,772 | 8,873 | 9,361 | | Acquisition and integration-related costs | 5,995 | 3 | 2,041 | 8,036 | 3 | | Restructuring costs | 588 | 2,116 | 301 | 889 | 3,054 | | Legal and other losses | 1,099 | 3,946 | — | 1,099 | 7,596 | | Impairment charges | — | 114 | — | — | 718 | | Total operating expenses | 279,931 | 358,977 | 294,385 | 574,316 | 735,230 | | Loss from operations | (5,859) | (19,206) | (977) | (6,836) | (16,285) | | Interest expense | 549 | 568 | 543 | 1,092 | 1,030 | | Interest income | (702) | (235) | (681) | (1,383) | (408) | | Other expense (income) , net | 23 | 23 | 60 | 83 | (1,034) | | Loss before income taxes | (5,729) | (19,562) | (899) | (6,628) | (15,873) | | Income tax expense (benefit) | 930 | (3,512) | (409) | 521 | (2,515) | | Net loss attributable to common stockholders | $(6,659) | $(16,050) | $(490) | $(7,149) | $(13,358) | | Net loss per share attributable to common stockholders - Basic | $(0.20) | $(0.47) | $(0.02) | $(0.22) | $(0.39) | | Net loss per share attributable to common stockholders - Diluted | $(0.20) | $(0.47) | $(0.02) | $(0.22) | $(0.39) | | Weighted average common shares outstanding: Basic | 32,492 | 33,960 | 32,282 | 32,388 | 34,088 | | Weighted average common shares outstanding: Diluted | 32,492 | 33,960 | 32,282 | 32,388 | 34,088 | [Reconciliation of Non-GAAP Financial Measures](index=6&type=section&id=Reconciliation%20of%20Non-GAAP%20Financial%20Measures) | | June 30, 2025 | June 30, 2024 | March 31, 2025 | June 30, 2025 (YTD) | June 30, 2024 (YTD) | | :------------------------------------------------ | :------------ | :------------ | :------------- | :------------------ | :------------------ | | Net loss attributable to common stockholders | $(6,659) | $(16,050) | $(490) | $(7,149) | $(13,358) | | Interest expense | 549 | 568 | 543 | 1,092 | 1,030 | | Income tax expense (benefit) | 930 | (3,512) | (409) | 521 | (2,515) | | Depreciation and amortization | 4,101 | 4,719 | 4,772 | 8,873 | 9,361 | | Acquisition and integration-related costs | 5,995 | — | 2,041 | 8,036 | — | | Restructuring costs | 588 | 2,116 | 301 | 889 | 3,054 | | Legal, bankruptcy, and other losses | 1,099 | 23,319 | — | 1,099 | 26,969 | | Impairment charges | — | 114 | — | — | 718 | | Interest income | (702) | (235) | (681) | (1,383) | (408) | | Other expense (income), net | 23 | 23 | 60 | 83 | (1,034) | | Equity compensation | 870 | 2,259 | 1,318 | 2,188 | 3,457 | | System conversion costs | 797 | 857 | 1,164 | 1,961 | 2,186 | | **Adjusted EBITDA** | **$7,591** | **$14,178** | **$8,619** | **$16,210** | **$29,460** | | **Adjusted EBITDA margin** | **2.8 %** | **4.2 %** | **2.9 %** | **2.9 %** | **4.1 %** | | **Adjusted EPS, non-GAAP** | **$(0.01)** | **$0.10** | **$0.06** | **$0.05** | **$0.29** | [Consolidated Balance Sheets](index=7&type=section&id=Consolidated%20Balance%20Sheets) | | June 30, 2025 | December 31, 2024 | | :--------------------------------- | :------------ | :---------------- | | **Assets** | | | | Cash and cash equivalents | $81,193 | $81,633 | | Accounts receivable, net | 201,694 | 223,238 | | Total current assets | 309,056 | 335,000 | | Property and equipment, net | 28,221 | 28,850 | | Goodwill | 135,060 | 135,060 | | Other intangible assets, net | 37,744 | 42,186 | | Total assets | $553,818 | $589,251 | | **Liabilities and Stockholders' Equity** | | | | Accounts payable and accrued expenses | $49,004 | $64,946 | | Accrued compensation and benefits | 45,264 | 47,646 | | Total current liabilities | 96,165 | 120,402 | | Total liabilities | 141,576 | 170,292 | | Total stockholders' equity | 412,242 | 418,959 | | Total liabilities and stockholders' equity | $553,818 | $589,251 | [Segment Data](index=8&type=section&id=Segment%20Data) | | June 30, 2025 | June 30, 2024 | March 31, 2025 | YoY Change | QoQ Change | | :-------------------------- | :------------ | :------------ | :------------- | :--------- | :--------- | | **Revenue from services:** | | | | | | | Nurse and Allied Staffing | $224,305 | $291,451 | $242,291 | (23)% | (7)% | | Physician Staffing | 49,767 | 48,320 | 51,117 | 3% | (3)% | | **Total Revenue** | **$274,072** | **$339,771** | **$293,408** | **(19)%** | **(7)%** | | **Contribution income:** | | | | | | | Nurse and Allied Staffing | $13,887 | $5,820 | $17,244 | 139% | (19)% | | Physician Staffing | 4,577 | 4,033 | 4,029 | 13% | 14% | | **Total Contribution Income** | **$18,464** | **$9,853** | **$21,273** | **87%** | **(13)%** | | Loss from operations | $(5,859) | $(19,206) | $(977) | 69% | (500)% | | | June 30, 2025 (YTD) | June 30, 2024 (YTD) | YoY Change | | :-------------------------- | :------------------ | :------------------ | :--------- | | **Revenue from services:** | | | | | Nurse and Allied Staffing | $466,596 | $623,637 | (25)% | | Physician Staffing | 100,884 | 95,308 | 6% | | **Total Revenue** | **$567,480** | **$718,945** | **(21)%** | | **Contribution income:** | | | | | Nurse and Allied Staffing | $31,131 | $33,003 | (6)% | | Physician Staffing | 8,606 | 7,171 | 20% | | **Total Contribution Income** | **$39,737** | **$40,174** | **(1)%** | | Loss from operations | $(6,836) | $(16,285) | 58% | [Summary Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Summary%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) | | June 30, 2025 | June 30, 2024 | March 31, 2025 | June 30, 2025 (YTD) | June 30, 2024 (YTD) | | :------------------------------------ | :------------ | :------------ | :------------- | :------------------ | :------------------ | | Net cash provided by operating activities | $4,217 | $82,401 | $5,681 | $9,898 | $88,412 | | Net cash used in investing activities | (1,967) | (2,849) | (1,886) | (3,853) | (5,059) | | Net cash used in financing activities | (1,756) | (15,193) | (4,725) | (6,481) | (30,846) | | Change in cash and cash equivalents | 496 | 64,359 | (936) | (440) | 52,507 | | Cash and cash equivalents at end of period | $81,193 | $69,601 | $80,697 | $81,193 | $69,601 | [Other Financial Data](index=9&type=section&id=Other%20Financial%20Data) | | June 30, 2025 | June 30, 2024 | March 31, 2025 | June 30, 2025 (YTD) | June 30, 2024 (YTD) | | :------------------------------------ | :------------ | :------------ | :------------- | :------------------ | :------------------ | | Revenue from services | $274,072 | $339,771 | $293,408 | $567,480 | $718,945 | | Less: Direct operating expenses | 218,068 | 268,966 | 234,750 | 452,818 | 570,843 | | Gross profit | $56,004 | $70,805 | $58,658 | $114,662 | $148,102 | | Consolidated gross profit margin | 20.4 % | 20.8 % | 20.0 % | 20.2 % | 20.6 % | | **Nurse and Allied Staffing statistical data:** | | | | | | | FTEs | 7,035 | 8,415 | 7,411 | 7,223 | 8,770 | | Average Nurse and Allied Staffing revenue per FTE per day | $348 | $377 | $360 | $354 | $388 | | **Physician Staffing statistical data:** | | | | | | | Days filled | 22,228 | 24,252 | 22,692 | 44,920 | 48,037 | | Revenue per day filled | $2,239 | $1,992 | $2,253 | $2,246 | $1,984 |

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].

Core Insights - The article discusses the acquisition of Cross Country Healthcare, Inc. (NASDAQ: CCRN) by Aya Healthcare, highlighting the potential implications for the company's stock performance [1]. Group 1: Company Overview - Cross Country Healthcare, Inc. is involved in the healthcare staffing industry, and the acquisition by Aya Healthcare is a significant event for the company [1]. Group 2: Investment Perspective - The author previously rated CCRN as a sell, indicating concerns about the stock's future performance following the acquisition [1]. - The author emphasizes a focus on finding value in small-cap stocks and sustainable high dividend yields, which may influence investment decisions regarding CCRN [1].

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].