Core Viewpoint - Cross Country Healthcare is experiencing a stabilization in the healthcare staffing market, particularly in travel staffing, with expectations for growth in 2026 despite a challenging 2025 due to a terminated merger [3][2]. Financial Performance - Q4 revenue was $237 million, down 24% year-over-year, and full-year revenue was $1.05 billion, down 22% [5][7]. - Adjusted EBITDA for Q4 was $4 million, with a full-year adjusted EBITDA of $27 million, reflecting margins of 1.7% and 2.5% respectively [9][5]. - The company recorded a $78 million non-cash impairment charge related to the terminated merger, impacting below-EBITDA results [10][5]. Market Outlook - The company expects travel staffing to be flat to slightly up sequentially, with Travelers On Assignment projected to grow each month into Q2 [2][6]. - Management anticipates a revenue run rate exceeding $1 billion by the end of 2026, with an adjusted EBITDA margin of 4% to 5% [4][22]. Operational Strategy - The company is focusing on technology and operational efficiency, with plans to expand its workforce intelligence platform, Intellify, into new staffing markets [16][17]. - Cross Country Healthcare aims to enhance recruiter productivity and back-office efficiency through automation and AI initiatives [17][18]. Segment Performance - Travel staffing revenue declined 30% year-over-year, while home-based staffing grew 34% year-over-year, indicating a shift in demand [11][14]. - Education staffing revenue increased 48% sequentially, with expectations for growth in 2026 [13][12]. Balance Sheet and Shareholder Actions - The company ended the quarter with $109 million in cash and no debt, having repurchased over 1.3 million shares recently [4][19]. - Management believes the stock does not reflect its underlying value and anticipates further share repurchases [20].

Financial Data and Key Metrics Changes - Consolidated revenue for Q4 2025 was $237 million, down 5% sequentially and 24% year-over-year. Full-year revenue was $1.05 billion, down 22% from the prior year [15][16] - Gross profit for the quarter was $48 million, representing a gross margin of 20.3%, down 10 basis points sequentially but up 30 basis points year-over-year [16] - Adjusted EBITDA was $40 million for the quarter, with a margin of 1.7%, and $27 million for the full year, with a margin of 2.5% [18] Business Line Data and Key Metrics Changes - Nurse and Allied reported revenue of $194 million for the quarter, down 4% sequentially and 24% year-over-year. Travel Nurse revenue was down 9% sequentially and 30% year-over-year [21] - Home-based staffing revenue was $34 million in Q4, up 34% year-over-year, with continued growth anticipated [23] - Education staffing revenue was $18 million, up 48% sequentially but down 7% year-over-year [22] Market Data and Key Metrics Changes - The healthcare staffing market is stabilizing, with demand and bill rates showing signs of improvement. The number of Travelers On Assignment is expected to grow each month into Q2 2026 [7][21] - The company anticipates a flat to slightly up sequential growth in travel staffing for the first time in over three years [7] Company Strategy and Development Direction - The company aims to expand market share within large health systems, improve operational efficiency, and leverage technology as a differentiator [6][10] - A focus on operational rigor, technology-powered workforce solutions, and disciplined capital allocation is central to the company's strategy for long-term shareholder value [5][6] - The company plans to expand its proprietary technology portfolio, including Intellify, into adjacent sectors such as home-based and education staffing [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in returning to revenue and earnings growth by the end of 2026, supported by a strong balance sheet and cash position [6][12] - The company is optimistic about the stabilization of the market and expects to see sequential growth across all lines of business throughout 2026 [30][64] Other Important Information - The company ended Q4 with $109 million in cash and no outstanding debt, positioning it well for strategic investments and capital allocation [24] - The company has repurchased over 800,000 shares in December and continued to buy back shares in Q1 2026, indicating confidence in its stock value [24] Q&A Session Summary Question: What is the confidence in achieving the revenue run rate above $1 billion and EBITDA margins of 4%-5%? - Management expressed high confidence due to a large sales pipeline, market-leading technology, and a strong balance sheet [30][32] Question: What are the opportunities for M&A in the current market? - The company is focused on strategic acquisitions in home-based staffing and is looking for accretive tuck-in acquisitions while being patient in capital allocation [36][37] Question: How is the technology platform Intellify being expanded into other markets? - The company plans to expand Intellify into home care and education staffing markets in 2026, with a strategy to provide solutions across the continuum of care [41][42] Question: What impact has labor disruption had on the business? - The company has participated in labor disruption events but noted that it is not a core business and the impact has been minimal [45][46] Question: What is the outlook for sequential revenue growth throughout 2026? - Management expects sequential growth across all quarters, with a target for year-over-year growth in the back half of 2026 [63][64]

Financial Data and Key Metrics Changes - Consolidated revenue for Q4 2025 was $237 million, down 5% sequentially and 24% year-over-year. Full-year revenue was $1.05 billion, down 22% from the prior year [15][16] - Gross profit for the quarter was $48 million, representing a gross margin of 20.3%, down 10 basis points sequentially but up 30 basis points year-over-year [16] - Adjusted EBITDA was $40 million for the quarter, with a margin of 1.7%, and $27 million for the full year, with a margin of 2.5% [18] Business Line Data and Key Metrics Changes - Nurse and Allied reported revenue of $194 million for the quarter, down 4% sequentially and 24% year-over-year. Travel Nurse revenue was down 9% sequentially and 30% year-over-year [21] - Home-based staffing revenue was $34 million in Q4, up 34% year-over-year, with continued growth anticipated due to an aging population [23] - Education staffing revenue was $18 million, up 48% sequentially but down 7% year-over-year, with expectations for growth in 2026 [22] Market Data and Key Metrics Changes - The healthcare staffing market is stabilizing, with demand and bill rates showing signs of improvement. The number of Travelers On Assignment is expected to grow each month into Q2 2026 [7][21] - The company anticipates a flat to slightly up sequential growth in travel staffing for the first time in over three years [7] Company Strategy and Development Direction - The company aims to restore momentum and sharpen execution, focusing on expanding market share within large health systems and leveraging technology as a differentiator [5][6] - A disciplined capital allocation strategy is in place, with plans for strategic investments and share repurchases to enhance shareholder value [12][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in returning to revenue and earnings growth by the end of 2026, supported by a strong balance sheet and cash position [6][12] - The company is optimistic about the stabilization of the market and expects to see sequential growth across all business lines throughout 2026 [50][66] Other Important Information - The company ended Q4 2025 with $109 million in cash and no outstanding debt, positioning it well for strategic investments [24] - The company has made significant investments in revenue producers, which are already yielding positive results [11] Q&A Session Summary Question: What is the confidence level in achieving the revenue run rate above $1 billion and EBITDA margins of 4%-5%? - Management expressed high confidence due to a strong sales pipeline, market-leading technology, and a solid balance sheet [30] Question: What needs to happen to achieve the higher margin levels by the end of the year? - Management indicated that operating leverage and a better mix of higher-margin businesses will contribute to margin improvement [33] Question: What opportunities do you see for M&A in the current market? - The company is focused on strategic acquisitions in high-growth areas like home-based staffing and is being patient in its capital allocation strategy [36] Question: Can you provide details on the expansion of the Intellify platform into other markets? - The company plans to expand Intellify into home-based and education staffing markets in 2026, with a focus on providing comprehensive solutions across all divisions [41][42] Question: How is the Center of Excellence in India contributing to cost savings? - The Center has reduced headcount and moved many business processes offshore, resulting in significant operational leverage and efficiency improvements [68]

Financial Data and Key Metrics Changes - Consolidated revenue for Q4 2025 was $237 million, down 5% sequentially and 24% year-over-year. Full-year revenue was $1.05 billion, down 22% from the prior year [13][14] - Gross profit for the quarter was $48 million, representing a gross margin of 20.3%, down 10 basis points sequentially but up 30 basis points year-over-year [15] - Adjusted EBITDA was $40 million for the quarter, with a margin of 1.7%, and $27 million for the full year, with a margin of 2.5% [17] Business Line Data and Key Metrics Changes - Nurse and Allied reported revenue of $194 million for the quarter, down 4% sequentially and 24% year-over-year. Travel Nurse revenue was down 9% sequentially and 30% year-over-year [20] - Home-based staffing revenue was $34 million in Q4, up 34% year-over-year, with continued growth anticipated [23] - Education staffing revenue was $18 million, up 48% sequentially but down 7% year-over-year, with expectations for growth in 2026 [21][22] Market Data and Key Metrics Changes - The healthcare staffing market is stabilizing, with demand and bill rates showing signs of improvement. The number of Travelers On Assignment is expected to grow each month into Q2 2026 [6][20] - The company anticipates a flat to slightly up sequential growth in travel staffing for the first time in over three years [6] Company Strategy and Development Direction - The company aims to expand market share within large health systems, improve operational efficiency, and leverage technology as a differentiator [5] - A focus on operational rigor, technology-powered workforce solutions, and disciplined capital allocation is central to the company's strategy for long-term shareholder value [4] - The company plans to expand its proprietary technology portfolio, particularly the Intellify platform, into adjacent markets such as home-based and education staffing [8][9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in returning to revenue and earnings growth by the end of 2026, supported by a strong balance sheet and cash position [5][11] - The company is optimistic about the stabilization of the market and the potential for growth in various business lines, particularly travel and home-based staffing [6][32] Other Important Information - The company ended Q4 with $109 million in cash and no outstanding debt, positioning it well for strategic investments and share repurchases [24] - The company has made significant investments in revenue producers, which are expected to drive organic growth throughout 2026 [10][17] Q&A Session Summary Question: What is the confidence in achieving the revenue run rate above $1 billion and 4%-5% EBITDA margins by the end of 2026? - Management expressed high confidence due to a strong sales pipeline, market-leading technology, and a solid balance sheet [31][32] Question: What are the opportunities for M&A in the current market? - The company is focused on disciplined capital allocation and is exploring accretive tuck-in acquisitions, particularly in home-based staffing [39] Question: How is the technology platform Intellify being expanded into other markets? - The company plans to expand Intellify into home care and education staffing markets in 2026, with a strategy to provide solutions across the continuum of care [43][44] Question: What impact has labor disruption had on the business? - The company has participated in labor disruption events but noted that it is not a core business and the impact has been minimal [46][48] Question: What is the outlook for sequential revenue growth throughout 2026? - Management expects sequential growth across all quarters, with a target for year-over-year growth in the back half of the year [65][66]

Company Overview and Strategy - Cross Country Healthcare aims to be a digitally transformed, innovative enterprise addressing clients' labor challenges[5] - The company's mission is connecting people and jobs through technology and solutions, prioritizing clinical excellence and patient care[6] - A key strategy involves expanding market presence with the Intellify Vendor Management System (VMS) and other technology enhancements[13] Financial Performance and Outlook - In Q3 2024, Cross Country Healthcare reported revenue of $315.1 million, a gross margin of 20.4%, adjusted EBITDA of $10.3 million, and adjusted EPS of $0.12[70] - Q4 2024 guidance includes revenue between $300 million and $310 million, adjusted EBITDA between $11 million and $13 million, and adjusted EPS between $0.10 and $0.14[72] - The company has a strong liquidity profile with $64 million in cash and cash equivalents and zero net funded debt[76] Market Dynamics and Trends - Healthcare jobs represented 26% of all job growth over the last twelve months[59] - September 2024 employment increased approximately 4% compared to the prior year[59] - Aging demographics are driving increased demand for healthcare professionals, with the 65-and-older population projected to grow by 36% as of 2020[51, 52] ESG Initiatives - In 2023, the company recycled 13,603 lbs of electronic waste[28] - The company supported a community initiative to plant over 100,000 trees in the Northwest region of the US in 2022[32] - In 2023, Cross Country Healthcare raised and donated approximately $300,000 to nearly 30 non-profit partner organizations[37]