Cross Country Healthcare (NasdaqGS:CCRN) Q4 2025 Earnings call March 04, 2026 05:00 PM ET Company ParticipantsAmiee Hawkins - Chief Solutions and Operations OfficerBill Burns - CFOJosh Vogel - VP of Investor RelationsKevin Clark - CEOMarc Krug - Group President of DeliveryTobey Sommer - Managing DirectorConference Call ParticipantsBill Sutherland - Equity Research AnalystConstantine Davides - Managing Director and Senior Equity AnalystKevin Steinke - Sell-Side Equity Research AnalystTrevor Romeo - Equity Re ...

Cross Country Healthcare (NasdaqGS:CCRN) Q4 2025 Earnings call March 04, 2026 05:00 PM ET Company ParticipantsAmiee Hawkins - Chief Solutions and Operations OfficerBill Burns - CFOJosh Vogel - VP of Investor RelationsKevin Clark - Chairman of the Board and CEOMarc Krug - Group President of DeliveryTobey Sommer - Managing DirectorConference Call ParticipantsBill Sutherland - Equity Research AnalystConstantine Davides - Managing Director and Senior Equity AnalystKevin Steinke - Sell-Side Equity Research Analy ...

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]