Sign in

AMN HEALTHCARE SERVICES INC (AMN) Q1 2025 Earnings Summary

Executive Summary

  • Q1 2025 delivered revenue of $689.5M and adjusted EPS of $0.45, both above the high end of guidance; GAAP EPS was ($0.03) on a modest net loss .
  • Results beat Wall Street consensus: revenue by ~$19M and EPS by ~$0.24, driven by $39M labor disruption revenue, stronger locum tenens bookings, and healthy allied demand ; estimates marked with asterisks and S&P Global disclaimer below.
  • Gross margin was 28.7% (10 bps above guidance range) with SG&A discipline (21.4% of revenue), producing operating leverage despite segment margin pressure .
  • Q2 2025 guidance implies sequential revenue decline (down 4–7% vs Q1) and adjusted EBITDA margin of 7.8–8.3%, including $16M labor disruption; management cites policy uncertainty slowing client decisions, but ongoing momentum in locums and allied .
  • Cash from operations of $93M enabled $60M revolver paydown; net leverage at quarter end was 3.1x, an improving de-leveraging trajectory that can act as a support for equity sentiment .

What Went Well and What Went Wrong

What Went Well

  • Revenue/EPS beat with above-high-end performance: revenue $689.5M and adjusted EPS $0.45, led by labor disruption ($39M), locums sequential growth, and allied demand resilience .
  • Gross margin outperformed guidance (28.7% vs 28.1–28.6%), aided by process changes and tech rollouts (recruiter productivity tools, AI matching) improving speed and fill .
  • Strong cash generation ($93M) and $60M debt reduction lowered the revolver balance; net leverage 3.1x demonstrates continued balance sheet improvement .
    • Quote: “We are benefiting from…market adoption of our tech-enabled talent solutions” — Cary Grace .
    • Quote: “We continue to invest in technology…including AI tools that reduce costs and improve how we deliver our services” — Cary Grace .

What Went Wrong

  • Consolidated revenue declined 16% YoY and 6% QoQ; Nurse & Allied revenue down 20% YoY; travel nurse revenue down 36% YoY as industry normalization persists .
  • Segment gross margins fell YoY (Nurse & Allied -240 bps; P&L Solutions -430 bps; Tech/Workforce -440 bps) reflecting pricing/mix pressures and lower spreads in locums .
  • Vendor Management Systems (VMS) revenue was $19M (down 33% YoY) and language services faced intensified competition, pressuring margins despite volume growth .

Financial Results

MetricQ3 2024Q4 2024Q1 2025
Revenue ($USD Millions)$687.5 $734.7 $689.5
Gross Margin %31.0% 29.8% 28.7%
Adjusted EBITDA ($USD Millions)$73.9 $75.1 $64.2
Adjusted EBITDA Margin %10.7% 10.2% 9.3%
GAAP Diluted EPS ($)$0.18 ($4.90) ($0.03)
Adjusted Diluted EPS ($)$0.61 $0.75 $0.45

Segment revenue breakdown:

Segment Revenue ($USD Millions)Q3 2024Q4 2024Q1 2025
Nurse & Allied Solutions$399.4 $454.7 $413.3
Physician & Leadership Solutions$180.6 $173.1 $174.1
Technology & Workforce Solutions$107.5 $106.9 $102.2
Total$687.5 $734.7 $689.5

KPIs:

KPIQ3 2024Q4 2024Q1 2025
Average Travelers on Assignment (Nurse & Allied)9,151 9,206 8,981
Locum Tenens Days Filled55,315 51,641 51,342
Locum Revenue per Day Filled ($)$2,562 $2,646 $2,743

Vs estimates (S&P Global consensus):

MetricQ4 2024 EstimateQ4 2024 ActualQ1 2025 EstimateQ1 2025 Actual
Revenue ($USD Millions)$694.4*$734.7 $670.1*$689.5
EPS (Primary/Normalized, $)$0.488*$0.75 $0.205*$0.45

Values marked with * retrieved from S&P Global.

Guidance Changes

Q1 2025 guidance (issued Feb 20) vs actual:

MetricPeriodPrevious GuidanceActualChange
Consolidated RevenueQ1 2025$660–$680M $689.5M Bold beat above high end
Gross MarginQ1 202528.1%–28.6% 28.7% Above high end
SG&A as % of RevenueQ1 202522.2%–22.7% 21.4% Better (lower) than guide
Operating MarginQ1 2025(0.3%)–0.4% 1.8% Above guide
Adjusted EBITDA MarginQ1 20257.7%–8.2% 9.3% Above high end

New Q2 2025 guidance (issued May 8):

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Consolidated RevenueQ2 2025N/A$645–$660M New; sequentially lower vs Q1 actual (down 4–7%)
Gross MarginQ2 2025N/A28.5%–29.0% New; modestly higher midpoint vs Q1 actual
SG&A as % of RevenueQ2 2025N/A23.2%–23.7% New; higher vs Q1 actual
Operating MarginQ2 2025N/A(0.7%)–0.0% New; below Q1 actual
Adjusted EBITDA MarginQ2 2025N/A7.8%–8.3% New; below Q1 actual
Labor Disruption RevenueQ2 2025N/A$16M New assumption
Other Items (Depreciation, Amort., SBC, Interest, Tax, Diluted Shares)Q2 2025N/ADeprec. $19M; Deprec. in CoR $2M; Amort. $20M; SBC $11M; Integration/Other $3M; Interest $11.5M; Adjusted tax rate 28%; Diluted shares 38.6M New detail

Earnings Call Themes & Trends

TopicPrevious Mentions (Q-2: Q3 2024; Q-1: Q4 2024)Current Period (Q1 2025)Trend
AI/Tech enablement (Passport, ShiftWise Flex, WorkWise)Added locums functionality to ShiftWise Flex; clients interested in total talent solutions Rolled recruiter gross margin tool; AI matching in locums; Passport extended to locums; enterprise MSP/vendor-neutral wins Accelerating adoption; productivity gains
Labor disruptionQ4 included $62M strike revenue and noted pipeline $39M in Q1; stronger pipeline driven by internal focus/tech; still lumpy timing Elevated activity; episodic cadence
Locum tenensQ4 down sequentially; MSP volume rebounded >20% 2H Bookings “picked up significantly”; revenue up 3% sequentially Improving sequentially
Travel nurseStabilizing bill rates late 2024 Bill rates stable; intense competition; some unfilled low-rate orders Stabilized; pricing rationality
Language servicesQ3/Q4 growth; margin mix pressure Competition intensified; margins pressured; onshore/offshore mix optimizations Competitive pressure; cost actions
VMSQ3/Q4 lower YoY; guidance for ~$<20M in Q1 Q1 $19M (down 33% YoY); stabilization expected after Q1 Down, likely trough
Policy/macroNormalization narrative into 2025 Clients monitoring tariffs/regulatory proposals; decision-making slowed Persistent caution
International nurse (visa retrogression)Headwind communicated; recovery later Sequential declines H1; stabilization after Q2; potential recovery in 2026 Near-term headwind; medium-term recovery path

Management Commentary

  • “Revenue of $690 million topped the high end of guidance by $10 million due to strength in our labor disruption, locum tenens and Allied businesses… $64 million in adjusted EBITDA and another quarter of robust cash flow and debt reduction.” — Cary Grace .
  • “We continue to invest in technology that improves our speed and fill rate including AI tools… AMN Passport has now been rolled out to locum tenens.” — Cary Grace .
  • “Consolidated gross margin…was 28.7%, 10 basis points above the high end of our guidance range.” — Brian Scott .
  • “Our outlook for revenue and earnings compares well against consensus estimates with continued upside from labor disruption, locum tenens and Allied staffing revenue.” — Cary Grace .
  • “Bookings for locum tenens picked up significantly… expect locum tenens to have sequential revenue growth this quarter.” — Cary Grace .

Q&A Highlights

  • MSP/VMS wins: 5 new wins; competitive wins; pipeline swinging back toward MSP from vendor-neutral .
  • Language services: consolidation has intensified price competition; margins expected to stabilize with onshore/offshore mix optimization .
  • Travel nurse bill rates: stabilized since back half of 2024; rational competitive behavior leading to unfilled low-rate orders; clients may raise rates for immediate needs .
  • Labor disruption economics: gross margins similar to segment margins; EBITDA flow-through positive; timing/magnitude remain unpredictable .
  • International business: sequential declines through Q2 due to retrogression; stabilization in H2; potential recovery in 2026 .
  • Capital allocation: priority to pay down debt; 2025 capex $40–50M while continuing AI/tech investments .

Estimates Context

  • Q1 2025 beat: Revenue $689.5M vs $670.1M*; EPS $0.45 vs $0.205*; drivers included $39M labor disruption and locums/allied strength .
  • Q4 2024 beat: Revenue $734.7M vs $694.4M*; EPS $0.75 vs $0.488*; upside aided by higher-than-expected labor disruption revenue .

Values marked with * retrieved from S&P Global.

Key Takeaways for Investors

  • Q1 upside was broad-based and above guidance, with revenue $689.5M and adjusted EPS $0.45, a positive surprise vs consensus; expect near-term sentiment support from beats and operating leverage .
  • Labor disruption remains a meaningful revenue lever ($39M in Q1; $16M embedded in Q2 guide), but timing is lumpy; management’s technology/process investments improve readiness and margin flow-through .
  • Locum tenens momentum is building (up 3% QoQ; bookings strong), and allied demand remains healthy, offering mix support as travel nurse normalizes .
  • Margin dynamics: consolidated gross margin 28.7% beat guidance; however, segment margins compressed YoY and VMS revenue/mix remain headwinds—watch cost actions in language services and VMS stabilization post-Q1 .
  • Balance sheet/cash: $93M CFO and $60M revolver reduction to 3.1x leverage highlight de-leveraging capacity, which can underpin equity downside protection .
  • Q2 guide suggests a softer sequential quarter (revenue down 4–7%), reflecting client decision delays amid policy uncertainty; near-term trading may hinge on labor disruption cadence and locum/allied execution .
  • Medium-term thesis: tech-enabled platform (Passport, ShiftWise Flex, WorkWise) and diversified solutions should drive share gains as pricing rationality returns; monitor international recovery trajectory into 2026 .

Best AI for Equity Research

Performance on expert-authored financial analysis tasks

Fintool-v490%
Claude Sonnet 4.555.3%
o348.3%
GPT 546.9%
Grok 440.3%
Qwen 3 Max32.7%