AMN HEALTHCARE SERVICES INC (AMN) Q2 2025 Earnings Summary

Executive Summary

Revenue $658.2M at the high end of guidance; adjusted EBITDA $58.3M with adjusted EBITDA margin 8.9% above guidance; GAAP diluted loss per share ($3.02) driven by $128M non‑cash goodwill/intangible impairments .
Nurse & Allied revenue fell 14% YoY; Travel Nurse down 25% YoY; Allied down 4% YoY; Locum Tenens flat YoY; Language Services up 1% YoY; VMS down 31% YoY .
Management cited policy uncertainty impacting Q2 demand and decision cycles; noted stabilization in July (orders/extension rates rebounded), but Q3 revenue guide of $610–$625M implies 5–7% sequential decline and 9–11% YoY decline; operating margin guide includes ~$40M gain from Smart Square sale .
Strategic catalyst: divestiture of Smart Square for $75M and partnership with symplr to accelerate WorkWise platform strategy; annualized revenue/EBITDA impact ~($17M)/($6M) .
Balance sheet actions: $79M CFO, $80M debt reduction in Q2; revolver down to $70M; net leverage 3.3x; management expects further revolver reduction in Q3 .

What Went Well and What Went Wrong

What Went Well

Adjusted EBITDA margin exceeded guidance; allied staffing revenue above internal projection; “second quarter financial performance was solid,” with AMN “holding market share” per third‑party rankings .
Operational and tech progress: AMN Passport surpassed 300,000 users; AI‑enabled event management and automation improving fill rates across MSPs and vendor‑neutral programs .
July indicators improved: “orders stabilized and extension rates rebounded” supporting a more normal buying backdrop into H2 .

What Went Wrong

Demand pressure in Q2: policy/lawmaking uncertainty slowed client decisions; sequential declines in orders and rebook retention; Travel Nurse down 25% YoY; interim leadership/search under pressure .
Profitability headwinds: consolidated gross margin down 120 bps YoY; SG&A as % of revenue up to 23.5% (from 20.1%) due to unfavorable professional liability actuarial adjustment and higher bad debt .
Non‑cash impairments totaling $128M (PLS goodwill ~$110M; Nurse & Allied intangibles ~$18M) drove the ($3.02) GAAP loss per share .

Financial Results

Metric	Q2 2024	Q1 2025	Q2 2025
Revenue ($USD Millions)	$740.7	$689.5	$658.2
Gross Margin %	31.0%	28.7%	29.8%
SG&A % of Revenue	20.1%	21.4%	23.5%
Operating Margin % (GAAP)	5.1%	1.8%	(18.8)%
Net Income (Loss) ($USD Millions)	$16.2	($1.1)	($116.2)
Diluted EPS (GAAP) ($)	$0.42	($0.03)	($3.02)
Adjusted EBITDA ($USD Millions)	$94.1	$64.2	$58.3
Adjusted EBITDA Margin %	12.7%	9.3%	8.9%
Adjusted Diluted EPS ($)	$0.98	$0.45	$0.30

Results vs S&P Global consensus (Primary EPS, Revenue, EBITDA):

Metric	Q2 2024 Consensus	Q2 2024 Actual	Q1 2025 Consensus	Q1 2025 Actual	Q2 2025 Consensus	Q2 2025 Actual
Primary EPS ($)	0.778*	0.98	0.205*	0.45	0.186*	0.30
Revenue ($USD Millions)	740.4*	740.7	670.1*	689.5	651.9*	658.2
EBITDA ($USD Millions)	84.7*	82.4*	53.2*	52.4*	52.1*	43.9*

Values marked with * retrieved from S&P Global.

Segment revenue and details:

Segment / Item	Q2 2024	Q1 2025	Q2 2025
Nurse & Allied Revenue ($M)	$442.4	$413.3	$381.9
— Travel Nurse Revenue	N/A	N/A	Down 25% YoY; down 4% QoQ
— Allied Revenue	N/A	N/A	Down 4% YoY; down 1% QoQ
— Labor Disruption Revenue ($M)	$0.0	$39.0	$16.0
Physician & Leadership Revenue ($M)	$186.1	$174.1	$174.5
— Locum Tenens Revenue ($M)	$143.0 YoY flat; +1% QoQ	$141.0 (−3% YoY; +3% QoQ)	$143.0
Technology & Workforce Solutions Revenue ($M)	$112.2	$102.2	$101.8
— Language Services Revenue ($M)	$75.0 (+5% YoY)	$75.0	$76.0 (+1% YoY; +1% QoQ)
— VMS Revenue ($M)	$23.0	$19.0 (−33% YoY; −14% QoQ)	$19.0 (−31% YoY; −2% QoQ)

Operating KPIs:

KPI	Q2 2024	Q1 2025	Q2 2025
Average Travelers on Assignment	10,302	8,981	8,700
Locum Days Filled	56,244	51,342	51,325
Locum Revenue per Day Filled ($)	$2,538	$2,743	$2,777

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Consolidated Revenue ($M)	Q3 2025	N/A	$610–$625	Introduced
Gross Margin %	Q3 2025	N/A	28.7%–29.2%	Introduced
SG&A % of Revenue	Q3 2025	N/A	~23.0%	Introduced
Operating Margin %	Q3 2025	N/A	6.0%–6.5% (includes ~$40M gain on Smart Square sale)	Introduced
Adjusted EBITDA Margin %	Q3 2025	N/A	7.7%–8.2%	Introduced
Labor Disruption Revenue ($M)	Q3 2025	N/A	$5	Introduced
Depreciation ($M)	Q3 2025	N/A	$17	Introduced
Depreciation in Cost of Revenue ($M)	Q3 2025	N/A	$2	Introduced
Amortization ($M)	Q3 2025	N/A	$21	Introduced
Share‑based Compensation ($M)	Q3 2025	N/A	$7.5	Introduced
Integration & Other ($M)	Q3 2025	N/A	$2.5	Introduced
Interest Expense ($M)	Q3 2025	N/A	$10.5	Introduced
Adjusted Tax Rate %	Q3 2025	N/A	28%	Introduced
Diluted Average Shares (M)	Q3 2025	N/A	38.7	Introduced

Note: Smart Square sale reduces annualized Technology & Workforce Solutions revenue and adjusted EBITDA by ~$17M and ~$6M, respectively .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q-2: Q4’24)	Previous Mentions (Q-1: Q1’25)	Current Period (Q2’25)	Trend
AI/Tech enablement (Passport, WorkWise)	ShiftWise Flex migration complete; tech-enabled solutions emphasized	Innovators Award for WorkWise & Passport	Passport >300k users; AI event mgmt; automation improving fill rates	Strengthening
Policy/macro uncertainty	Normalized operating environment but cautious backdrop	Clients monitoring tariffs/regulatory proposals	Q2 decision-making slowed; July stabilization in orders/extensions	Stabilizing post-Q2
Travel Nurse demand/pricing	Down 35% YoY in Q4’24	Down 36% YoY in Q1’25	Down 25% YoY; bill rates broadly stable; volume the main lever	Stabilizing rates; volume pressured
Labor disruption	$62M in Q4’24 (above guide)	$39M in Q1’25	$16M in Q2; $5M assumed in Q3 guide; potential H2 upside	Moderating near term; pipeline
Language Services	+12% YoY in Q4’24	+5% YoY; −2% QoQ	+1% YoY; pricing pressure; pipeline building	Soft top-line; pipeline positive
Locum Tenens/MSP	YoY +10% in Q4’24; MSP rebound	Sequential +3%; bookings improved	Flat YoY; demand +5% vs Q2; MSP revenue to record high in 2025	Improving
International nurse	Headwind in 2024 (retrogression)	Ongoing headwind	Modest growth resuming Q4; double-digit rev/EBITDA growth expected in 2026 (scenario-dependent)	Turning positive in Q4’25/H1’26
Competitive landscape/market share	Net positive strategic client retention	Holding share; tech adoption	Holding share per SIA; consolidation likely; AMN differentiation (strike, Passport, float pools)	Favorable for AMN

Management Commentary

“Our second quarter financial performance was solid… AMN is holding market share in a highly competitive market. We believe our enhanced AI and technology‑enabled services, broad solution set, and talented team position us to gain share in the future.” — Cary Grace, CEO .
“An uncertain healthcare policy environment caused our clients to slow their decision‑making in the second quarter… We saw signs of improvement in July as orders stabilized and extension rates rebounded.” — Cary Grace .
“Locum tenens demand so far this quarter is 5% higher than Q2… We expect MSP revenue to reach a historic high this year.” — Cary Grace .
“Passport… now covers travel & per diem nurse, allied and locum specialties… recently surpassed 300,000 registered users.” — Cary Grace .
“During the second quarter, we recorded a non‑cash goodwill impairment charge of $110M [PLS] and an intangible asset impairment of $18M [N&A]… ” — Brian Scott, CFO .

Q&A Highlights

Demand inflection and seasonality: Management expects declines from July through Q3 as Q2 extension/order declines flow through, with winter orders and improved booking trends turning monthly positive in Q4; backdrop “stable” with normalizing buying behavior .
Pricing vs volume: Margins broadly stable as bill rates are stable; focus is on driving volume and fill rates; Q3 Nurse & Allied decline mainly volume‑driven .
Strike pipeline: Q3 guide assumes $5M; potential upside in Q4/Q1 depending on CBAs; AI‑enabled event technology allows scaling without disrupting core business .
Language Services: Utilization grew mid‑single digits but pricing pressure muted net growth; pipeline expected to progress into year‑end .
International nurses: Modest sequential growth in Q4; 2026 expected double‑digit revenue/EBITDA growth, though magnitude depends on visa retrogression movements; strong industry support for clinician immigration .

Estimates Context

Q2 2025 results vs S&P Global consensus: Revenue beat by ~$6.2M ($658.2M vs $651.9M); Primary EPS beat by ~$$0.11 ($0.30 vs $0.186); EBITDA below consensus ($43.9M vs $52.1M), noting company reports adjusted EBITDA $58.3M, which exceeds consensus EBITDA but definitions differ (adjusted vs standard EBITDA) . Values marked with * retrieved from S&P Global.
Implication: Consensus likely needs to reflect lower volume trajectory in Travel Nurse into Q3 and the Smart Square divestiture impacts; some upward adjustments possible in Locum/MSP and Labor Disruption depending on H2 events . Values marked with * retrieved from S&P Global.

Key Takeaways for Investors

Core Nurse & Allied volumes remain pressured; bill rates stable; sequential Q3 decline guided (5–7%); watch winter order cadence for inflection in Q4 .
Locum Tenens/MSP are relative bright spots; demand +5% vs Q2; MSP revenue tracking to record levels in 2025 .
Smart Square divestiture simplifies focus on WorkWise; near‑term headwind (~$17M/$6M annualized revenue/EBITDA) offset by ~$40M gain in Q3 operating margin guide .
Labor disruption provides event‑driven upside optionality in H2/FY; Q3 guide includes $5M with potential additional CBAs in Q4 .
International nurse headwinds abating; modest growth expected Q4 with double‑digit revenue/EBITDA growth in 2026 under conservative scenarios .
Operating discipline: cash from operations $79M; revolver reduced to $70M with further paydown expected; leverage 3.3x; SG&A management ongoing despite actuarial/bad debt items in Q2 .
Narrative catalyst: July stabilization in orders and extension rates, AI/automation adoption, and consolidation in the competitive landscape position AMN to gain share as demand recovers .