AMN Healthcare Services (AMN) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue was $658.2 million, near the high end of guidance, but down 11% year-over-year, with adjusted EBITDA of $58.3 million and adjusted EPS of $0.30; GAAP loss per share was ($3.02) due to $128 million in noncash impairment charges.

• Net loss for Q2 2025 was $116.2 million, compared to net income of $16.2 million in Q2 2024, driven by $109.5 million goodwill and $18.3 million intangible asset impairments.

• Cash flow from operations was $79 million in Q2 and $171.2 million for the first half, enabling $80 million in debt reduction; net leverage ratio at quarter end was 3.3x.

• Sale of Smart Square scheduling software for $75 million ($65 million cash, $10 million note) supports technology strategy and will reduce annualized revenue and adjusted EBITDA by $17 million and $6 million, respectively.

Financial highlights

• Q2 2025 revenue declined 11% year-over-year and 5% sequentially; gross margin was 29.8%, down from 31.0% a year ago but up 110 bps sequentially.

• Adjusted EBITDA margin was 8.9%, down 380 basis points year-over-year; SG&A expenses rose to $155 million (23.5% of revenue) from $149 million (20.1%) a year ago.

• Adjusted EPS was $0.30, down from $0.98 in the prior year and $0.45 in the previous quarter; diluted EPS was $(3.02).

• Operating cash flow was $79 million in Q2; capital expenditures were $10 million in Q2 and $19.8 million for the first half.

• Days sales outstanding improved to 54 days, nine days lower year-over-year.

Outlook and guidance

• Q3 2025 revenue projected at $610–$625 million, including $5 million from labor disruption support.

• Gross margin expected between 28.7% and 29.2%; SG&A to be about 23% of revenue; adjusted EBITDA margin at 7.7–8.2%; operating margin at 6–6.5%.

• Segment revenue guidance: Nurse and Allied Solutions down 11–14% year-over-year, Physician and Leadership Solutions down 2–4%, Technology and Workforce Solutions down 12–14%.

• International nurse staffing expected to return to sequential growth in Q4, with double-digit growth anticipated in 2026.

• Management expects annual effective tax rate of approximately 13% for 2025.