Amn Healthcare Services 2025 Q3 Earnings Strong Performance as Net Income Surges 319.1%

Amn Healthcare Services (AMN) reported fiscal 2025 Q3 earnings on Nov 7, 2025, with revenue declining year-over-year but exceeding guidance. The company’s net income surged 319.1% to $29.29 million, while the CEO highlighted improved demand and strategic debt restructuring. Q4 guidance aligns with the report, reflecting cautious optimism amid market uncertainties.

Revenue

Amn Healthcare Services reported Q3 2025 revenue of $634.50 million, a 7.7% decline from $687.51 million in the prior year. The Nurse and Allied Solutions segment contributed $361.48 million, down 9.5% year-over-year, driven by a 20% drop in travel nurse staffing revenue, partially offset by a 1% increase in the allied division. The Physician and Leadership Solutions segment generated $178.21 million, a 1.3% decrease, with locum tenens revenue rising 3% but interim leadership revenue falling 20%. Technology and Workforce Solutions revenue totaled $94.81 million, down 11.8%, as vendor management systems revenue plummeted 32% year-over-year.

Earnings/Net Income

The company’s net income soared to $29.29 million in Q3 2025, marking a 319.1% increase from $6.99 million in the prior-year period. Earnings per share (EPS) surged 322.2% to $0.76, driven by strong adjusted EBITDA margins and effective SG&A management. The EPS growth underscores robust profitability despite revenue headwinds.

Post-Earnings Price Action Review

The strategy of buying AMN shares after its Q3 earnings report and holding for 30 days showed mixed performance over three years, yielding a total return of 18.95% (12.50% annualized). While returns correlated with the SPY ETF, the strategy’s maximum drawdown of 25.43% highlighted significant volatility. Periods of outperformance, like a 22.01% six-month return versus SPY’s 16.50%, were offset by underperformance, such as an 8.75% annual return versus SPY’s 13.75%. The approach suits moderate-risk investors with a long-term horizon, as it generated market-aligned returns without exceptional alpha.

CEO Commentary

Cary Grace, President and CEO, noted the company’s outperformance relative to Q3 guidance, driven by revenue exceeding expectations and stronger adjusted EBITDA margins. He highlighted a rebound in staffing demand post-Q2 and winter order volume growth year-over-year. Grace emphasized SG&A efficiency and debt refinancing to extend maturities to 2030-2031, enhancing financial flexibility.

Guidance

For Q4 2025, AMN expects consolidated revenue of $715–$730 million, with gross margin of 25.5–26.0% and SG&A as 20.0–20.5% of revenue. Adjusted EBITDA margin is projected at 6.8–7.3%, down from 9.1% in Q3, due to lower-margin labor disruption revenue. Nurse and Allied Solutions revenue is expected to rise 1–3% YoY, while Physician and Leadership Solutions and Technology and Workforce Solutions segments face declines of 2–4% and 14–16%, respectively.

Additional News

Amn Healthcare Services recently sold its Smart Square scheduling software to symplr for $65 million, aiding debt repayment and credit line payoff. On Oct 6, 2025, the company refinanced $500 million in 2027 senior notes with new 2031 notes, extending maturity and improving debt leverage covenants. Additionally, Truist Securities upgraded its AMN stock rating to “Buy” on Nov 25, 2025, raising the price target to $24.00 from $20.00, citing improved operational execution and market positioning.