Cross ntry Healthcare(US:CCRN)2025-11-12 22:06Financial 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].