AMN Healthcare Services(US:AMN)2025-11-06 21:18Financial 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].