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CROSS COUNTRY HEALTHCARE INC (CCRN)·Q3 2025 Earnings Summary

Executive Summary

  • Q3 2025 revenue of $250.052M declined 21% YoY and 9% QoQ; adjusted EPS was $0.03 and adjusted EBITDA was $6.524M with a 2.6% margin .
  • Results were “in line with expectation,” driven by Homecare Staffing growth and stabilization in core travel/local staffing; SG&A continued to decline sequentially via the India center of excellence .
  • Versus Wall Street consensus (S&P Global): revenue missed ($270.716M* vs $250.052M actual) and adjusted EPS slightly missed ($0.04* vs $0.03 actual); Q1–Q3 each quarter saw revenue and EPS misses* [GetEstimates] .
  • No earnings call and no guidance due to the pending Aya Healthcare merger; FTC review timing is impacted by the government shutdown, creating merger timing risk and potential need to extend the end date beyond Dec 3, 2025 .
  • Liquidity remains strong with $99.132M cash and no debt; operating cash flow improved to $20.114M in Q3, a key near-term support while volumes normalize .

What Went Well and What Went Wrong

What Went Well

  • Homecare Staffing delivered strong growth; management cited “continued momentum” in Homecare and stabilization in core travel/local staffing .
  • SG&A declined sequentially, supported by efficiency gains from the low-cost center of excellence in India .
  • Operating cash flow rose to $20.114M in Q3 (vs $4.217M in Q2), strengthening liquidity alongside $99.132M cash and no debt .
  • Quote: “Our third quarter results were in line with expectation, reflecting continued momentum in our Homecare Staffing business and further stabilization in core travel and local staffing” — CEO John A. Martins .

What Went Wrong

  • Top-line pressure persisted: Nurse & Allied revenue fell 24% YoY and 10% QoQ; consolidated revenue -21% YoY and -9% QoQ .
  • Profitability remained subdued: adjusted EBITDA margin declined to 2.6% (YoY -70 bps; QoQ -20 bps); GAAP diluted EPS was a loss of $0.15 .
  • Estimates were missed: Q3 revenue and adjusted EPS below consensus; similar miss pattern in Q1 and Q2* [GetEstimates] .

Financial Results

MetricQ1 2025Q2 2025Q3 2025
Revenue ($USD Millions)$293.408 $274.072 $250.052
Gross Profit Margin %20.0% 20.4% 20.4%
GAAP Diluted EPS ($)$(0.02) $(0.20) $(0.15)
Adjusted EPS (non-GAAP) ($)$0.06 $(0.01) $0.03
Adjusted EBITDA ($USD Millions)$8.619 $7.591 $6.524
Adjusted EBITDA Margin %2.9% 2.8% 2.6%
(Loss) Income from Operations ($USD Millions)$(0.977) $(5.859) $(5.973)
Cash from Operations ($USD Millions)$5.681 $4.217 $20.114

Segment breakdown

Segment MetricQ1 2025Q2 2025Q3 2025
Nurse & Allied Revenue ($USD Millions)$242.291 $224.305 $201.950
Physician Staffing Revenue ($USD Millions)$51.117 $49.767 $48.102
Nurse & Allied Contribution Income ($USD Millions)$17.244 $13.887 $14.230
Physician Staffing Contribution Income ($USD Millions)$4.029 $4.577 $4.320

KPIs

KPIQ1 2025Q2 2025Q3 2025
Nurse & Allied FTEs7,411 7,035 6,371
Nurse & Allied Rev per FTE per day ($)$360 $348 $343
Physician Days Filled22,692 22,228 20,695
Physician Rev per Day Filled ($)$2,253 $2,239 $2,324

Actual vs Consensus (S&P Global)

MetricQ1 2025Q2 2025Q3 2025
Adjusted EPS Consensus Mean ($)0.071*0.063*0.040*
Adjusted EPS Actual ($)0.06 (0.01) 0.03
Revenue Consensus Mean ($USD Millions)314.823*292.192*270.716*
Revenue Actual ($USD Millions)293.408 274.072 250.052

Values retrieved from S&P Global.*

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
RevenueQ3 2025None (no guidance due to pending Aya merger) None (no guidance) Maintained: No guidance
Gross Profit MarginQ3 2025None None Maintained: No guidance
Adjusted EBITDA / EPSQ3 2025None None Maintained: No guidance
OpEx / Tax RateQ3 2025None None Maintained: No guidance
Segment-specificQ3 2025None None Maintained: No guidance

Earnings Call Themes & Trends

No earnings call was held in Q1–Q3 2025 due to the pending Aya merger; themes below reflect press-release commentary.

TopicPrevious Mentions (Q1 & Q2)Current Period (Q3)Trend
AI/Technology initiativesInvestments in AI automation; continued system conversions; modern tech platforms referenced Continued investment in proprietary platforms Intellify and xPerience Steady execution; ongoing investment
Cost actions/SG&ASequential SG&A decline; leverage India center of excellence Continued sequential SG&A decline via India center Improving cost efficiency
MSP pipeline/client winsStrong MSP pipeline; expansions slated H2’25 >$400M in contract value won/expanded/renewed, predominantly MSP Strengthening MSP momentum
Core travel/local staffingStabilizing; steady pricing backdrop “Further stabilization” in core travel/local Stabilizing
Homecare StaffingDouble-digit growth Q1; >30% YoY growth Q2 Revenue grew >29% YoY Strong growth continues
Regulatory/legal (Aya merger, FTC)Pending acquisition; working with FTC HSR timeline impacted by government shutdown; end date risk; discussions to extend beyond Dec 3, 2025 Elevated timing uncertainty
Physician Staffing pricing/mixFavorable mix/price; modest YoY growth Q2 Revenue per day filled increased to $2,324; revenue -4% YoY Mixed: pricing up, volumes down

Management Commentary

  • “Our third quarter results were in line with expectation, reflecting continued momentum in our Homecare Staffing business and further stabilization in core travel and local staffing.” — John A. Martins, President & CEO .
  • “We have successfully won, expanded and renewed more than $400 million in contract value, predominantly across Managed Service Program clients.” — John A. Martins .
  • “Our strong balance sheet and positive cash flow have allowed us to further invest in our leading proprietary technology platforms such as Intellify and xPerience.” — John A. Martins .

Other relevant Q3 press release:

  • Marketing team named No. 1 in the nation by 2025 OnCon Icon Awards, highlighting data-driven creativity and emerging digital/AI adoption in marketing .

Q&A Highlights

  • No earnings conference call was held; therefore, no Q&A or guidance clarifications were provided .

Estimates Context

  • Consensus (S&P Global) vs actual: Q3 revenue missed (consensus $270.716M* vs actual $250.052M) and adjusted EPS slightly missed (consensus $0.04* vs actual $0.03)* [GetEstimates] .
  • The same pattern occurred in Q1 and Q2 (revenue and adjusted EPS below consensus)* [GetEstimates] .
  • Given ongoing normalization in Nurse & Allied volumes and no forward guidance, estimates may drift lower near term for revenue and margin assumptions, with potential stabilization anchored by cost control and MSP momentum .
    Values retrieved from S&P Global.*

Key Takeaways for Investors

  • Volume normalization continues to pressure revenue, but operational discipline (SG&A reductions via India center) is supporting margins and cash generation .
  • Liquidity is solid ($99.132M cash, no debt), and Q3 operating cash flow inflected positively to $20.114M, providing flexibility amid merger timing uncertainty .
  • Homecare Staffing remains a bright spot with sustained YoY growth; MSP wins (> $400M contract value) and proprietary platforms (Intellify, xPerience) underpin the medium-term value proposition .
  • Near-term trading risk centers on Aya merger timing: FTC shutdown extends HSR waiting period day-for-day; without an extension, Dec 3, 2025 end date poses termination risk, which could drive volatility .
  • Absent guidance and calls, focus on quarterly filings/press releases for trend signals (FTE/physician days filled, revenue per FTE/day, SG&A trajectory) to gauge stabilization progress .
  • Consensus expectations have been above actuals for Q1–Q3; monitor potential estimate resets lower and any cost actions to defend margins near ~20% gross profit [GetEstimates] .
  • If merger closes, public equity catalyst path ends; if not, re-rating will hinge on growth trajectory in Homecare/MSP and recovery in Nurse & Allied volumes with continued cost optimization .