Total Revenue

-16%

Lower revenues across segments: Q1 2025 revenue fell to $689.5 million from $820.9 million in Q1 2024. This decline is driven by lower performance across all key segments—most notably, a ~20% decline in Nurse and Allied Solutions, along with modest drops in Physician and Leadership Solutions (~7.7%) and Technology and Workforce Solutions (~9%)—reflecting a continuation of market normalization seen in prior periods. " " " " "

Nurse and Allied Solutions

-20% (approx)

Substantial operational declines: The segment dropped from $519.3 million in Q1 2024 to $413.3 million in Q1 2025 primarily due to a 22% reduction in the average number of travelers on assignment and a 5% decrease in the average bill rate. These factors, observed previously, were only partially offset by a $39.0 million increase in labor disruption revenue. " "

Physician and Leadership Solutions

-7.7%

Reduced demand and fewer days filled: Revenue decreased from $188.8 million to $174.1 million. The decline was largely attributable to fewer days filled in the locum tenens business and lower performance in both the interim leadership and permanent placement segments, trends that were already emerging in previous periods due to a contracting demand in acute care settings. " " "

Technology and Workforce Solutions

-9%

Weakened VMS and outsourced solutions performance: Revenue declined from $112.8 million to $102.2 million, primarily because of lower demand in the Vendor Management Systems (VMS) and outsourced solutions businesses, despite offsetting growth in language services. This pattern is consistent with earlier indications from FY 2024 where the sales mix shifted away from higher-margin services. " " "

Operating Income

-69%

Severe margin compression: Operating income plunged from $39.9 million to $12.5 million, driven by reduced high-margin revenue streams and increased cost pressures. This contraction has been more pronounced than in prior periods, indicating that the adverse effects on profitability have compounded over time. " "

Net Income

Reversal to Negative

Profitability erosion: Net income swung from a positive $17.33 million in Q1 2024 to a loss of $1.09 million in Q1 2025, with EPS declining from $0.45 to –$0.03. The worsening margin compression and continued operational challenges outpaced any cost efficiencies, mirroring deteriorations seen in the operating income metrics. " "

Operating Cash Flow

+14%

Improved operational efficiencies: Operating cash flow increased from $81.39 million to $92.67 million, reflecting better cash management and cost containment strategies despite the overall revenue decline. This improvement suggests that while top-line performance weakened, disciplined execution on working capital and expense control enhanced cash generation compared to previous periods. " "

Consolidated revenue

Q1 2025

$660 million to $680 million (down 17% to 20% YoY)

No guidance provided

no current guidance

Gross margin

Q1 2025

28.1% to 28.6%

No guidance provided

no current guidance

SG&A expenses

Q1 2025

22.2% to 22.7% of revenue

No guidance provided

no current guidance

Operating margin

Q1 2025

-0.3% to 0.4%

No guidance provided

no current guidance

Adjusted EBITDA margin

Q1 2025

7.7% to 8.2%

No guidance provided

no current guidance

Labor disruption revenue assumption

Q1 2025

$24 million

No guidance provided

no current guidance

Capital expenditures (full year 2025)

Q1 2025

$40 million to $50 million

No guidance provided

no current guidance

Stock-based compensation expense (FY 2025)

Q1 2025

$35 million

No guidance provided

no current guidance

Non-GAAP tax rate (FY 2025)

Q1 2025

26% to 28%

No guidance provided

no current guidance

Technology & Operational Enhancements

Across Q2–Q4 2024, AMN detailed a suite of enhancements including ShiftWise Flex, AI matching, AMN Passport app improvements, integration of WorkWise and other operational automation efforts " " " " "

Q1 2025 highlights continued rollout of a new gross margin tool, further AI matching capabilities in Locum Tenens, expanded AMN Passport functionality, rollout of ShiftWise Flex completion, and integrated platform enhancements to boost efficiency " "

Consistent emphasis on technology-driven efficiency. The focus remains on automation and integration, evolving from earlier rollouts to deeper integration and productivity improvement in Q1 2025.

Diversified Demand & Market Expansion

Q2–Q4 2024 discussions showcased initiatives to shift from a heavy MSP focus toward broader non-MSP opportunities, with strong demand across allied, locum, and language services driven by integrated solutions " " "

Q1 2025 emphasizes diversified solutions, operating leverage, robust client wins across multiple segments, and strong trends in allied, locum tenens, strike services, and language services " " " "

Steady expansion with a more positive tone. While the prior periods focused on market mix and repositioning, Q1 2025 projects further growth and robust pipeline development, reinforcing a diversified approach.

Locum Tenens Staffing Dynamics

Q2–Q4 2024 earnings calls detailed revenue increases driven by acquisitions, seasonal boosts, gross margin pressure from lower bill-pay spreads, and evolving specialty mix challenges " " " " "

In Q1 2025, locum tenens revenue reached $141 million, with sequential growth, ongoing competitive pressure on margins and adjustments in specialty contributions (like internal medicine and psychiatry showing strength) " " "

Steady but cautious sentiment. The recurring challenges with margins and competitive pressures persist even as sequential growth returns, with adjustments in specialty mix offering potential for margin improvement.

Language Services Growth

Q2–Q4 2024 calls reported strong revenue growth (double-digit in parts, 12% in Q4, 18% in Q2) and anticipated robust growth with high gross margins; there were notes of slight challenges like the modest downturn in Spanish share " " " "

Q1 2025 saw Language Services revenue at $75 million with a modest 5% year-over-year increase and a 2% sequential decline; however, healthy growth is anticipated for the remainder of the year despite competitive pressures " " "

Growth remains positive but moderation is evident. Whereas earlier periods pointed to double-digit growth, Q1 2025 reflects a stabilization with modest increases and careful monitoring of language mix changes.

Nurse & Allied Staffing Challenges

Q2–Q4 2024 discussions pointed to significant revenue declines, margin pressures (from housing and reimbursement issues), lower volumes, and challenges with international assignments; seasonal factors and competitive pressures were highlighted " " " "

Q1 2025 continues to show challenges with a 20% year-over-year revenue decline, further margin pressure, seasonality impacts, and intense competition, although there are indications of stabilization in bill rates over time " "

Persistent challenges with slight stabilization signals. Nurse and allied staffing remain under pressure with revenue and margin declines; incremental signs of stabilization in bill rates are emerging, but overall sentiment remains cautious.

International Nurse Staffing & Visa Retrogression

In Q2–Q4 2024, significant headwinds were noted due to visa retrogression, with revenue impacts quantified (up to $100 million headwinds in Q4) and expectations of tapering impacts in later quarters, though margins were pressured " " " " "

Q1 2025 reported a sequential revenue decline of $3–4 million due to ongoing visa retrogression with expectations of stabilization by Q3 2025 and a turnaround in 2026 as visa dates improve "

Continuing headwinds with a planned recovery. The issue of visa retrogression is persistent across periods, with Q1 2025 emphasizing short-term challenges but setting expectations for stabilization and eventual growth in 2026.

Client Engagement & Multi-Solution Adoption

Q3 2024 highlighted strong multi-solution adoption with top clients using an average of 10 solutions, integrated engagement across various client departments, and initiatives around ShiftWise Flex and WorkWise prompting deeper integration " " " "

Q1 2025 reinforces client engagement with healthy pipeline growth, accelerated adoption of ShiftWise Flex, industry recognition, and strategic client wins, underscoring the multi-solution approach " "

An emerging point of emphasis after a gap. While detailed discussions appeared in Q3 and were missing in Q4/Q2, Q1 2025 brings client engagement back to the forefront with even stronger adoption and integration, signifying a renewed focus on relationship building and product stickiness.

Market Competition, M&A & Consolidation

Q2–Q4 2024 discussions underlined an intensely competitive landscape, rational competitor behavior, ongoing consolidation in segments (especially language services and nursing), and cautious M&A outlook with some exits and acquisitions noted " " "

Q1 2025 maintained that competition remains intense, with continued consolidation; however, the company’s focus shifted more explicitly to debt reduction over M&A activity, even as competitive pressures persist " "

Consistent intensity with a shift in capital focus. The competitive and consolidation themes are persistent, though Q1 2025 signals a strategic pivot to prioritize financial management (debt reduction) over aggressive M&A.

Financial Management & Leverage Concerns

In Q2–Q4 2024, the company repeatedly emphasized reducing leverage via debt paydowns, adjustments to leverage ratios, and careful management of CAPEX to bring ratios below target thresholds, reflecting disciplined financial management " " " "

Q1 2025 reiterated the commitment to use free cash flow to pay down debt, with a planned reduction in CAPEX spending (spending $40–50 million) to accelerate debt reduction while still investing in innovation and AI "

A steady, disciplined financial approach. The focus on debt reduction continues unabated in Q1 2025 with a slight recalibration in CAPEX allocation, reaffirming a long-term commitment to strong financial management and reduced leverage.

Vendor Management System Transformation

In Q2–Q4 2024, extensive discussion centered on replatforming efforts with ShiftWise Flex, progress in migrating clients, initial revenue challenges, and expectations for future growth once the transformation was complete " " " "

Q1 2025 notes healthy pipeline growth in MSP solutions and improved VMS revenue performance, reinforcing the ongoing transformation and suggesting that the rollout’s positive effects are beginning to materialize " "

Transformation in progress with signs of recovery. While earlier periods highlighted transition challenges and execution progress, Q1 2025 signals that the transformation is yielding benefits in pipeline and revenue, indicating a maturing technological platform.

Schools Business Performance

Q4 2024 reported headwinds stemming from post-COVID budget cuts and district-level consolidation, though there was optimism for improvement in upcoming bookings "

Q1 2025 reveals that bookings for the next full school year are trending toward year-over-year growth, driven by strong orders and candidate submission "

An improving trend. After facing challenges in Q4 2024, the Schools business shows early signs of recovery and improved performance in Q1 2025, suggesting a turnaround in this segment that could have significant future impact.