Core Insights - AMN Healthcare Services, Inc. reported adjusted earnings per share (EPS) of 30 cents for Q2 2025, a decline of 69.4% year over year, but exceeded the Zacks Consensus Estimate by 76.5% [1] - The company’s revenues for Q2 2025 were $658.2 million, down 11.1% year over year, yet also surpassed the Zacks Consensus Estimate by 0.9% [2] - AMN Healthcare's gross profit fell 14.5% year over year to $196.4 million, with a gross margin of 29.8% [7] Revenue Breakdown - The Nurse and Allied Solutions segment generated revenues of $381.9 million, down 13.7% year over year, with travel nurse staffing revenues declining by 25% [4] - The Physician and Leadership Solutions segment reported revenues of $174.5 million, a decrease of 6.2% year over year, with interim leadership revenues down 25% [5] - The Technology and Workforce Solutions segment's revenues totaled $101.8 million, down 9.3% year over year, with vendor management systems revenue declining by 31% [6] Margin and Financial Position - Selling, general & administrative expenses increased by 3.7% year over year to $154.6 million, while adjusted operating profit fell by 48.2% to $41.8 million [7] - AMN Healthcare ended Q2 2025 with cash and cash equivalents of $41.5 million, down from $55.8 million at the end of Q1 2025, and total debt decreased to $920 million from $1 billion [8] Future Guidance - For Q3 2025, AMN Healthcare expects revenues in the range of $610 million to $625 million, reflecting a decline of 9-11% compared to the prior year [11] - The company anticipates a decline of 11-14% in revenues for the Nurse and Allied Solutions segment and 12-14% for the Technology and Workforce Solutions segment in Q3 [12] Overall Assessment - The overall performance of AMN Healthcare in Q2 2025 was disappointing, with declines across all segments and contracting margins [13] - Despite the challenges, there was an encouraging uptick in Language interpretation services revenues and positive customer adoption of AMN Passport [14] - The recent sale of the Smart Square nurse scheduling software and the partnership with symplr is seen as a promising development for the company [15]

Financial Data and Key Metrics Changes - Second quarter revenue was $658 million, down 11% year over year and down 5% sequentially, but at the upper end of guidance [19][7] - Adjusted EBITDA for the second quarter was $58 million, down 38% year over year and 9% sequentially, with an adjusted EBITDA margin of 8.9% [25][26] - Net loss for the second quarter was $116 million, compared to net income of $16 million in the prior year period [27] - Days sales outstanding decreased to 54 days, which is nine days lower than a year ago [28] Business Line Data and Key Metrics Changes - Nurse and Allied revenue was $382 million, down 14% year over year, primarily due to lower volume [20] - Physician and Leadership Solutions segment revenue was $175 million, down 6% year over year [22] - Technology and Workforce Solutions revenue was $102 million, down 9% year over year [24] - Language services revenue was $76 million, up 1% year over year [24] Market Data and Key Metrics Changes - Academic medical centers accounted for about 20% of consolidated revenue year to date, with spending reductions due to federal funding cuts [8] - Travel nurse orders in June were 15% lower than in March, indicating client uncertainty [8] - Locum Tenens demand was 5% higher than Q2, showing signs of recovery [13] Company Strategy and Development Direction - The company aims to diversify revenues and enhance technology-enabled services, with AMN Passport achieving over 300,000 registered users [15] - Focus on operational efficiency and cost management while driving volume growth [17] - The company is positioned to benefit from market share gains in an environment where competitors are struggling [14][92] Management's Comments on Operating Environment and Future Outlook - Management noted that uncertainty regarding government policy has led to cautious client behavior, impacting staffing orders [7] - There are signs of demand stabilization in July, with expectations for improved metrics in the second half of the year [10][38] - The company anticipates double-digit growth in international nurse staffing by 2026, driven by visa retrogression improvements [96][97] Other Important Information - The company recorded a non-cash goodwill impairment charge of $110 million related to the Physician and Leadership Solutions segment [26] - The sale of SmartSquare for $75 million is expected to reduce annualized revenue by approximately $17 million starting in Q3 [25] Q&A Session Summary Question: Insights on clients' contingent labor needs - Management observed that clients are normalizing their utilization of labor, with a focus on permanent hiring and building flexibility [39][40] Question: Drivers behind gross margin improvements in Nurse and Allied - Management indicated that underlying spreads in Nurse and Allied have stabilized, contributing to improved gross margins [43][44] Question: Timing for potential recovery in demand - Management expects to see stabilization and potential growth in demand as the year progresses, particularly in Q4 [56][57] Question: Competitive pricing environment - Management noted that pricing has remained stable, with no significant changes despite competitive pressures [108][109] Question: Future growth expectations for language services - Management anticipates modest growth in language services, with a focus on managing competitive pricing pressures [82]

Financial Performance - AMN Healthcare reported quarterly revenue of $658 million, an 11% decrease year-over-year and a 5% decrease sequentially [5][8] - The company experienced a net loss of $116.2 million, translating to a diluted loss per share of ($3.02) [5][13] - Adjusted diluted EPS was $0.30, down 69% from the same quarter last year [5][13] Segment Performance - Revenue from the Nurse and Allied Solutions segment was $382 million, a 14% decline year-over-year and an 8% decline from the previous quarter [6][38] - The Physician and Leadership Solutions segment reported revenue of $175 million, down 6% year-over-year and flat sequentially [7][38] - Technology and Workforce Solutions segment revenue was $102 million, a decrease of 9% year-over-year and flat sequentially [10][38] Operational Highlights - The company achieved a consolidated gross margin of 29.8%, which is 120 basis points lower year-over-year but improved by 110 basis points sequentially [11][38] - SG&A expenses were $155 million, representing 23.5% of revenue, an increase from 20.1% in the same quarter last year [12][38] - Cash flow from operations was strong at $79 million, allowing the company to reduce debt by $80 million, resulting in a net leverage ratio of 3.3:1 [8][14] Future Outlook - For Q3 2025, consolidated revenue is expected to be 9-11% lower than the prior year, with specific segment declines projected [17][18] - The company anticipates a gross margin between 28.7% and 29.2% for the upcoming quarter [17] - Labor disruption revenue assumed in guidance is $5 million [18] Strategic Developments - The sale of Smart Square for $75 million is part of the company's strategy to enhance its partnership with symplr [15][16] - AMN Passport, the company's app for healthcare professionals, surpassed 300,000 users, indicating growth in its technology-enabled services [8]

Financial Data and Key Metrics Changes - The company reported first quarter revenue of $690 million, exceeding the high end of guidance by $10 million, primarily driven by strong performance in labor disruption, locum tenants, and allied businesses [6][18] - Adjusted EBITDA for the first quarter was $64 million, down 34% year over year and 15% sequentially, with an adjusted EBITDA margin of 9.3% [26] - The first quarter net loss was $1 million, compared to net income of $17 million in the prior year period [26] Business Line Data and Key Metrics Changes - Nurse and Allied Solutions revenue was $413 million, down 20% year over year, primarily due to lower volume and rates [19][20] - Travel nurse revenue decreased to $215 million, a 36% decline from the prior year [20] - Physician and Leadership Solutions segment revenue was $174 million, an 8% decrease year over year, with locum tenants revenue at $141 million, down 3% year over year [21][22] Market Data and Key Metrics Changes - The company experienced a 16% year-over-year decline in consolidated revenue, with a 6% sequential decrease [18] - Consolidated gross margin was 28.7%, slightly above guidance but down 270 basis points year over year [18][26] - Language services revenue increased by 5% year over year, while VMS revenue decreased by 33% year over year [25] Company Strategy and Development Direction - The company is focusing on enhancing its technology and automation capabilities to improve service delivery and operational efficiency [11][106] - AMN Healthcare is investing in AI tools to enhance recruiter productivity and improve service delivery [11][106] - The company aims to maintain operating leverage superior to competitors while generating cash flow for business investments and debt reduction [13] Management's Comments on Operating Environment and Future Outlook - Management noted that demand has not fully recovered to pre-pandemic levels in several business areas, including travel nursing and interim leadership [15] - The company is seeing heightened competition in language services, but believes it holds a distinct advantage due to high-quality solutions [16] - Management expressed confidence in the company's ability to support clients effectively while maintaining service quality [61] Other Important Information - The company generated $93 million in operating cash flow in the first quarter, reducing its revolving credit balance by $60 million [14][27] - The company has received industry recognition for innovation, including the 2025 Innovators Award from Modern Healthcare [14] Q&A Session Summary Question: Can you talk about the VMS and MSP wins? - Management indicated that recent wins reflect a strategy to broaden market positioning and are characterized as small to medium wins, with competitive nature [35][36] Question: What is the outlook for language services? - Management expects continued healthy growth in language services despite competitive pressures and recent consolidation in the space [39][40] Question: Are bill rates stabilizing in the travel nurse segment? - Management noted stabilization in bill rates and indicated that unfilled orders are at similar levels as before, suggesting a potential for future increases [45][46] Question: What are the capital allocation priorities? - The company prioritizes using free cash flow to pay down debt while continuing to invest in innovation and technology [90][92] Question: How is the international business expected to progress? - Management anticipates stabilization in the international business with expectations of positive growth in 2026 as visa dates move forward [83][85]

Financial Data and Key Metrics Changes - Consolidated revenue for Q1 2025 was $690 million, exceeding the high end of guidance by $10 million, driven by strong performance in labor disruption, locum tenants, and allied businesses [6][19] - Adjusted EBITDA for Q1 2025 was $64 million, down 34% year over year and 15% sequentially, with an adjusted EBITDA margin of 9.3% [26][27] - Consolidated gross margin was 28.7%, slightly above guidance but down 270 basis points year over year and 110 basis points sequentially [19][10] - The company reported a net loss of $1 million for Q1 2025, compared to net income of $17 million in the prior year [26][27] Business Line Data and Key Metrics Changes - Nurse and Allied Solutions revenue was $413 million, down 20% year over year, primarily due to lower volume and rates [20][21] - Travel nurse revenue decreased by 36% year over year to $215 million, while allied revenue was $147 million, down 13% year over year [21][22] - Physician and Leadership Solutions segment revenue was $174 million, an 8% decrease year over year, with locum tenants revenue at $141 million, down 3% year over year [22][23] - Technology and Workforce Solutions revenue was $102 million, down 9% year over year, with language services revenue increasing by 5% year over year to $75 million [24][25] Market Data and Key Metrics Changes - Demand for allied business grew mid-teens year over year, with bookings for the next school year trending towards growth [8][9] - The company noted heightened competition in language services, with industry consolidation leading to price competition [16][41] - The travel nurse market is experiencing intense competition, with some orders priced at levels that are not being filled [9][15] Company Strategy and Development Direction - The company is focused on enhancing technology and automation to improve service delivery and operational efficiency, including the rollout of new tools for recruiters [11][105] - AMN is investing in AI tools to reduce costs and improve service delivery, with a focus on maintaining high-quality service [11][105] - The company aims to leverage its diversified solutions to maintain operating leverage superior to competitors and generate cash flow for business investment [13][92] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to support clients amid ongoing labor disruption, emphasizing the importance of technology and automation [17][61] - The company anticipates continued demand growth in healthcare, despite some segments not recovering to pre-pandemic levels [15][81] - Management acknowledged a slowdown in client decision-making but noted strong demand across various business lines [94][82] Other Important Information - The company received industry recognition for innovation, being named one of the 15 innovative healthcare organizations by Modern Healthcare [14] - AMN continues to focus on debt reduction, with a net leverage ratio of 3.1 times [28][90] Q&A Session Summary Question: Can you talk about the VMS and MSP wins? - Management indicated that recent wins are small to medium in size but carry significant weight, reflecting a strategy to broaden market positioning [36][37] Question: What is the outlook for language services? - Management expects healthy growth in language services, despite competitive pressures and some margin decline [40][41] Question: Are bill rates stabilizing in the travel nurse segment? - Management noted stabilization in bill rates, with a premium spread of contingent costs to permanent labor at about 11% [46][47] Question: What is the impact of labor disruption on revenue? - Management stated that the increase in labor disruption revenue is due to improved internal focus and technology, with a stronger pipeline of opportunities [60][61] Question: How is the international business progressing? - Management expects stabilization in the international business, with a positive outlook for 2026 as visa dates move forward [83][85] Question: What are the capital allocation priorities? - The company prioritizes debt reduction while continuing to invest in innovation and technology [89][90]