AMN Healthcare Services(US:AMN)2025-11-06 23:11Financial 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].