Cross ntry Healthcare(US:CCRN)2026-03-09 10:25Financial Performance - For the year ended December 31, 2025, consolidated revenue decreased by 21.6% year-over-year to $1.1 billion, primarily due to volume declines in the Nurse and Allied Staffing and Physician Staffing segments [175]. - The net loss attributable to common stockholders for the year ended December 31, 2025 was $94.9 million, compared to a net loss of $14.6 million for the year ended December 31, 2024, representing an increase in losses of 551.6% [175][187]. - Total revenues from services decreased by $289.7 million, or 21.6%, to $1,054.3 million for the year ended December 31, 2025, compared to $1,344.0 million for 2024 [200][202]. - Nurse and Allied Staffing revenue decreased by $282.6 million, or 24.7%, to $862.8 million for the year ended December 31, 2025, primarily due to a decline in billable hours [202]. - Contribution income for Nurse and Allied Staffing decreased by $14.7 million, or 20.2%, to $57.9 million for the year ended December 31, 2025, with a contribution margin of 6.7% [203]. Expenses and Costs - Direct operating expenses decreased by 21.4% to $840.7 million for the year ended December 31, 2025, as a result of revenue decreases [189]. - Selling, general and administrative expenses decreased by 14.0% to $200.7 million for the year ended December 31, 2025, primarily due to decreases in compensation and benefit expenses [189]. - The Company recorded executive transition severance costs of $6.0 million related to the former Chief Executive Officer's separation from the Company in December 2025 [178]. - Corporate overhead decreased to $60.8 million for the year ended December 31, 2025, from $68.5 million in 2024, representing 5.8% of consolidated revenue [207]. Cash Flow and Liquidity - Cash and cash equivalents totaled $108.7 million as of December 31, 2025, with cash flow provided by operating activities amounting to $48.3 million for the year [179]. - Net cash provided by operating activities decreased by $71.8 million to $48.3 million for the year ended December 31, 2025, compared to $120.1 million for 2024 [212]. - As of December 31, 2025, the company reported $108.7 million in cash and cash equivalents, with working capital increasing by $1.2 million to $215.8 million [208]. - As of December 31, 2025, the borrowing base availability under the ABL was $114.6 million, with no borrowings drawn and $96.3 million available net of $18.3 million of letters of credit outstanding [219]. Impairments and Taxation - During the fourth quarter of 2025, the Company recorded a non-cash goodwill impairment charge of $77.9 million related to its Nurse and Allied and Physician Staffing segments [176]. - Non-cash impairment charges totaled $77.9 million for the year ended December 31, 2025, compared to $2.9 million for 2024, primarily due to goodwill impairment in the Nurse and Allied and Physician Staffing segments [195][199]. - The company recorded total unrecognized tax benefits of $10.4 million as of December 31, 2025 [241]. - A valuation allowance of $29.7 million was recorded on deferred tax assets as of December 31, 2025, with an additional $29.5 million recorded in Q4 2025 [240]. Operational Metrics - Total days filled decreased by 14.0% to 84,213 for the year ended December 31, 2025, compared to 97,888 for 2024 [206]. - Average revenue per day filled for Physician Staffing increased by $245, or 12.1%, to $2,274 for the year ended December 31, 2025 [206]. Claims and Reserves - The company had accrued $3.0 million and $4.8 million for incurred but not reported health insurance claims as of December 31, 2025 and 2024, respectively [228]. - As of December 31, 2025, the company had $12.0 million and $12.8 million accrued for case reserves and incurred but not reported workers' compensation claims, net of insurance receivables, for 2025 and 2024, respectively [228]. - The estimated amounts that had been worked but not billed totaled $48.3 million and $60.4 million as of December 31, 2025 and 2024, respectively [231]. - Total allowances for credit losses were $9.1 million and $9.3 million as of December 31, 2025 and 2024, respectively [234]. - The company maintains accruals for health, workers' compensation, and professional liability claims based on actuarial models reviewed semi-annually [228]. Interest and Currency Risks - Interest income increased to $3.1 million for the year ended December 31, 2025, up from $2.1 million in 2024, driven by higher average cash on hand [196]. - The company is exposed to variable interest rate risk from a Loan Agreement initiated on October 25, 2019, with a Term Loan Agreement repaid and terminated on June 30, 2023 [248]. - A 1% change in interest rates would have resulted in an immaterial fluctuation in interest expense for the years ended December 31, 2025 and 2024 [249]. - Approximately 5% of selling, general, and administrative expenses are related to software development and IT support from employees in Pune, India, indicating minor foreign currency risk exposure [250]. - Fluctuations in foreign currency exchange rates impact the translation of foreign-denominated assets and liabilities into U.S. dollars, affecting reported results [251]. - The translation of non-U.S. subsidiaries' assets and liabilities into U.S. dollars at the end of reporting periods affects stockholders' equity through accumulated other comprehensive loss [252]. Inflation Impact - Inflation did not significantly impact the company's operational results, and it aims to adjust billing rates to reflect cost increases due to inflation [247].