AMN Healthcare Services (AMN) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue was $690 million, down 16% year-over-year but above guidance due to strong labor disruption, locum tenens, and allied revenue.

• Net loss for Q1 2025 was $1.1 million (–$0.03/share), compared to net income of $17 million a year ago; adjusted EPS was $0.45, down from $0.97.

• Adjusted EBITDA was $64 million, with robust operating cash flow of $93 million and significant debt reduction of $60 million.

• Industry recognition received for innovation, including Modern Healthcare’s 2025 Innovators Award for workforce technology.

• No shares were repurchased in Q1 2025; $226.7 million remains authorized under the repurchase program.

Financial highlights

• Revenue declined 16% year-over-year to $689.5 million, with gross margin at 28.7%, down 270 basis points year-over-year but slightly above guidance.

• Adjusted EBITDA margin was 9.3%, down 260 basis points year-over-year.

• SG&A expenses were $148 million (21.4% of revenue), down from $175 million year-over-year.

• Operating income dropped to $12.5 million from $39.9 million year-over-year.

• Net loss per share was $(0.03), compared to EPS of $0.45 in Q1 2024.

Outlook and guidance

• Q2 2025 revenue expected at $645–$660 million (–11% to –13% year-over-year), with gross margin guidance of 28.5%–29% and adjusted EBITDA margin of 7.8%–8.3%.

• Guidance includes $16 million in labor disruption revenue.

• Normal seasonality expected in nurse and allied volumes, with stable bill rates.

• Management expects cash from operations and available credit to be sufficient for liquidity needs over the next 12 months and beyond.

• Annual effective tax rate for 2025 is estimated at (11)%, with Q1's high effective tax rate due to discrete items.