AMN Healthcare's 2025 Q2: Key Contradictions on Labor Demand, Patient Growth, and International Revenue

Demand for contingent labor, patient utilization and order growth, order trends and demand stability, international revenue impact are the key contradictions discussed in AMN Healthcare's latest 2025Q2 earnings call.



Revenue and Earnings Performance:
- AMN Healthcare's second quarter revenue was $658 million, at the upper end of guidance, while adjusted EBITDA was $58 million.
- The gross margin for Q2 was 29.8%, exceeding the high end of guidance.
- The revenue decline of 11% year-over-year was primarily due to lower volume in the Nurse and Allied segment, affected by client uncertainty and reduced staffing orders.

Segment Performance and Demand Trends:
- Travel Nurse revenue in the second quarter was $208 million, down 25% year-over-year and 4% sequentially.
- Locum tenens revenue was $143 million, flat year-over-year but up 1% sequentially.
- Demand for locum tenens showed 5% higher demand than Q2, indicating potential for recovery in the third quarter.

Operational Initiatives and Cost Management:
- The company repaid $80 million of its revolving line of credit, further reducing debt, and ended the quarter with $70 million drawn.
- Operational improvements led to steadily improving fill rates, and automated initiatives resulted in lower employee costs.

Market Dynamics and Future Outlook:
- Academic medical centers, which make up 20% of consolidated revenue, reduced spending due to federal funding cuts, impacting overall demand.
- The new tax bill provided clarity on future reimbursement, leading to stabilization in key metrics in July.
- AMN expects international nurse staffing to resume growth in volume and revenue in the fourth quarter, supported by Visa retrogression trends.