Amn Healthcare Services 2025 Q3 Earnings Net Income Surges 319% as Revenue Declines 7.7%

Amn Healthcare Services (AMN) reported fiscal 2025 Q3 earnings on Nov 7, 2025, with revenue declining 7.7% to $634.50 million, below the $687.51 million in 2024 Q3. Despite the revenue drop, the company exceeded expectations, with net income surging 319% to $29.29 million and EPS rising 322.2% to $0.76. Guidance for Q4 2025 aligns with the projected revenue range of $715–730 million, reflecting cautious optimism amid sector challenges.

Revenue

The company’s revenue performance was mixed across segments. Nurse and Allied Solutions, the largest contributor, reported $361 million in revenue, down 9% year-over-year, driven by a 20% decline in travel nurse staffing. Physician and Leadership Solutions revenue fell 1% to $178 million, while Technology and Workforce Solutions saw a sharper 12% decline to $95 million, impacted by the sale of Smart Square and lower VMS revenue.

Earnings/Net Income

The earnings report highlighted a remarkable turnaround, with net income surging to $29.29 million (up 319%) and EPS climbing to $0.76 (up 322.2%). This strong performance underscores effective cost management and revenue upside, particularly in adjusted EBITDA margins.

Post-Earnings Price Action Review

The stock price of Amn Healthcare Services declined sharply following the earnings report, dropping 8.24% on the latest trading day, 9.24% for the week, and 7.27% month-to-date. While the earnings beat expectations, the market’s reaction remained cautious, reflecting ongoing concerns about sector-wide revenue declines and margin pressures. The price action suggests mixed investor sentiment, with optimism tempered by macroeconomic uncertainties and competitive dynamics.

CEO Commentary

Cary Grace, CEO, emphasized the company’s resilience, noting improved staffing demand in Q3 and strong fulfillment team performance. Strategic actions, including the sale of Smart Square and debt refinancing, enhanced financial flexibility. Grace expressed confidence in Q4 travel nursing growth, driven by rebounding winter orders and improved demand trends.

Guidance

For Q4 2025, AMN anticipates consolidated revenue of $715–730 million, with a 1–3% year-over-year decline but 13–15% sequential growth. Adjusted EBITDA margin is projected at 6.8–7.3%, and gross margin at 25.5–26.0%. Nurse and Allied Solutions revenue is expected to rise 1–3% YoY, while Physician and Leadership Solutions face a 2–4% decline. Technology and Workforce Solutions revenue is forecast to drop 14–16% YoY.

Additional News

1. Smart Square Sale: AMN sold its Smart Square scheduling software for $65 million, bolstering liquidity and enabling debt repayment.

2. Debt Refinancing: The company refinanced $500 million in 2027 notes to 2031, extending maturities and improving debt leverage covenants.

3. Strategic Guidance: Q4 guidance reflects anticipated labor disruption costs and margin pressures, with a focus on sequential travel nursing growth and improved winter order volumes.

Key Takeaways: AMN’s Q3 performance highlights a resilient core business despite revenue declines, driven by cost discipline and strategic asset sales. While Q4 guidance remains cautious, the company’s financial flexibility and sector positioning offer long-term growth potential. Investors should monitor demand recovery in travel nursing and the impact of macroeconomic factors on healthcare staffing trends.