Financial Data and Key Metrics Changes - Third quarter revenue was $634 million, exceeding the high end of guidance by $9 million, but down 8% year-over-year and 4% sequentially [4][13] - Consolidated gross margin for Q3 was 29.1%, a decline of 190 basis points year-over-year and 70 basis points sequentially [13] - Adjusted EBITDA for Q3 was $57.5 million, representing 9.1% of revenue, which was 90 basis points above the high end of guidance [4][13] - Net income for Q3 was $29 million, compared to a net loss of $116 million in the prior quarter [19] Business Line Data and Key Metrics Changes - Nurse and Allied revenue was $361 million, down 9% year-over-year but exceeding guidance due to higher travel nurse volume and $12 million in labor disruption revenue [14] - Physician and Leadership Solutions segment revenue was $178 million, down 1% year-over-year but up 2% sequentially, with locum tenens revenue growing 3% year-over-year [16] - Technology and Workforce Solutions revenue was $95 million, down 12% year-over-year and 7% sequentially, primarily due to lower VMS revenue and the sale of SmartSquare [18] Market Data and Key Metrics Changes - Permanent hiring activity in the healthcare sector fell notably in Q3, indicating a shift towards more flexible workforce strategies [5] - The spread between travel nurse bill rates and fully loaded permanent nurse compensation is at a historical low, which may influence future hiring strategies [5] - Demand for travel nurses has increased by approximately 50% since mid-May, although it remains slightly below year-over-year levels [31] Company Strategy and Development Direction - The company aims to gain market share by enhancing technology, processes, and customer focus, with a strong emphasis on total talent solutions [11][41] - The strategy includes expanding service lines and improving fill rates, particularly in vendor-neutral programs [11][12] - The company expects to see more favorable revenue mix and growth in higher-margin businesses, particularly in international staffing [37] Management's Comments on Operating Environment and Future Outlook - Management noted that while the market remains competitive, there is rationality among competitors, and the focus is shifting towards total talent solutions [41] - The company anticipates modest year-over-year growth in nurse and allied revenue for Q4, with expectations for improved gross margins in 2026 [10][20] - Management expressed confidence in the recovery of demand and the ability to fill orders effectively, particularly as clients recognize the affordability of contingent labor [45][49] Other Important Information - The company completed a debt refinancing transaction, improving its financial position and extending the earliest debt expiration to 2029 [10][20] - Cash and equivalents as of September 30 were $53 million, with total debt at $850 million and a net leverage ratio of 3.3 times [19] Q&A Session Summary Question: Can you help us understand the drivers of gross margin guidance? - Management explained that the gross margin in Q3 was positively impacted by labor disruption, and the expected decline in Q4 is due to a mix of lower-margin revenue from certain segments [24][26] Question: What is the underlying performance of the business excluding labor disruption? - Management indicated that excluding labor disruption, the EBITDA margin would be in the mid-sixes range, reflecting the impact of the labor disruption event on overall performance [28] Question: Are the recent increases in demand due to winter orders or underlying improvements? - Management noted that demand has improved due to both seasonal factors and broader market conditions, with a significant recovery since mid-May [31] Question: How do you view the competitive landscape currently? - Management stated that while competition remains, it is rational, and there is a growing preference for total talent solutions among clients [41] Question: What are the expectations for clinician supply and demand? - Management reported a healthy supply of clinicians overall, with specific challenges in locums, and emphasized the importance of pricing orders correctly to fill them [56][58] Question: How is the company leveraging MSP relationships for locums? - Management highlighted intentional moves to support locums MSPs and noted significant improvements in fill rates for these clients [76][78]

Q3 2025 Financial Performance - Revenue for Q3 2025 was $634.5 million, compared to $687.5 million in Q3 2024, a decrease of 7.7%[9] - Gross profit for Q3 2025 was $184.4 million, with a gross margin of 29.1%, compared to $213.1 million and 31.0% respectively in Q3 2024[9] - Operating income for Q3 2025 was $47.6 million, resulting in an operating margin of 7.5%, compared to $22.3 million and 3.2% respectively in Q3 2024[9] - Net income for Q3 2025 was $29.3 million, or $0.76 per share, compared to $7.0 million, or $0.18 per share in Q3 2024[9] - Adjusted EBITDA for Q3 2025 was $57.5 million, with an adjusted EBITDA margin of 9.1%, compared to $73.9 million and 10.7% respectively in Q3 2024[9] Segment Performance - Nurse & Allied Solutions revenue was $361 million in Q3 2025, a 9.5% decrease year-over-year[9] - Physician & Leadership Solutions revenue was $175 million in Q3 2025, a 1.3% decrease year-over-year[9] - Technology & Workforce Solutions revenue was $95 million in Q3 2025, an 11.8% decrease year-over-year[9] Balance Sheet and Cash Flow - Cash and cash equivalents totaled $53 million as of September 30, 2025, compared to $42 million as of June 30, 2025[35] - Net cash provided by operating activities was $23 million in Q3 2025, compared to $67 million in Q3 2024[37] - Free cash flow was $15 million in Q3 2025, compared to $47 million in Q3 2024[37] Q4 2025 Financial Guidance - Consolidated revenue is projected to be between $715 million and $730 million[39] - Gross margin is expected to be between 25.5% and 26.0%[39] - Adjusted EBITDA margin is projected to be between 6.8% and 7.3%[39]

Company Overview - AMN Healthcare is a leader and innovator in total talent solutions for healthcare, uniquely positioned to serve growing health systems and diverse care settings[5] - The company has over 12,000 total employees[8] - AMN Healthcare has a strong ESG/CSR track record[8] Financial Performance - In 2019, AMN Healthcare's revenue was $2.222 billion, with a gross profit of $743 million and a gross margin of 33.5%[8] - Adjusted EBITDA for 2019 was $277 million, representing an adjusted EBITDA margin of 12.5%[8] - Free cash flow in 2019 was $190 million, with a free cash flow conversion rate of 68%[8] - As of Q3 2020, Nurse and Allied Solutions accounted for 69% of revenue, Physician and Leadership Solutions 20%, and Technology and Workforce Solutions 11%[8, 11] - Managed Services Programs (MSPs) account for 56% of revenue from these segments[12] Market Position and Strategy - AMN Healthcare manages over $3.4 billion in spend under management[19] - The company is well-positioned to capture long-term U.S secular trends, including the aging population and healthcare professionals, job openings/turnover, and healthcare spend[37] - The total addressable market is approximately $22 billion, including $17 billion for the U.S Healthcare Staffing Market and $5 billion for other addressable markets[42, 43] - The company's strategic approach to M&A focuses on accretive profit margins and revenue growth, with a ROIC greater than the cost of capital[104]