Cross Country 2025 Q2 Earnings Narrowed Losses as Net Loss Drops 58.5%

Cross Country Healthcare reported its Q2 2025 earnings on August 7, 2025. The results were in line with expectations, showing a reduction in losses. The company narrowed its net loss to $6.66 million, or $0.20 per share, compared to $16.05 million, or $0.47 per share, a year earlier, representing a 58.5% improvement. No updated guidance was provided.

Revenue
Cross Country’s total revenue for the second quarter of 2025 declined by 19.3% to $274.07 million from $339.77 million in the prior-year period. The company’s nurse and allied staffing segment generated $224.31 million, reflecting a 23% year-over-year decline, while physician staffing revenue rose 3% to $49.77 million. The sequential drop in overall revenue of 7% was driven by a 7% decline in nurse and allied staffing and a 3% decrease in physician staffing. The nurse and allied segment also saw a 7% sequential reduction, with the physician staffing segment experiencing a modest 3% year-over-year growth due to favorable pricing and mix.

Earnings/Net Income
The company significantly reduced its net loss to $-6.66 million, or $-0.20 per share in 2025 Q2, from $-16.05 million, or $-0.47 per share in the same period of 2024, representing a 58.5% improvement. This marked a positive shift in the company's financial performance, indicating better cost control and operational efficiencies.

Price Action
Cross Country's stock experienced a 2.75% increase on the latest trading day but dipped 0.23% over the past week. The stock was up 2.75% month-to-date, reflecting a mixed investor sentiment post-earnings.

Post-Earnings Price Action Review
A strategy of buying CCRN shares when earnings exceeded expectations and selling after 30 days delivered a 128.53% return, far surpassing the benchmark's 78.57% gain. The strategy demonstrated strong risk management, with a maximum drawdown of 0.00% and a Sharpe ratio of 0.42, highlighting its appeal for investors seeking balanced returns and stability.

Additional News
On August 7, 2025, Cross Country Healthcare announced its second-quarter financial results, with a pending merger with Aya Healthcare expected to close in Q4 2025. The merger has drawn significant attention from investors and analysts. The company did not host an earnings call due to the pending transaction, nor did it provide forward-looking guidance. Additionally, Cross Country's balance sheet remains robust, with $81.2 million in cash and no debt as of June 30, 2025. The company reported a 5% sequential decline in SG&A expenses, attributed to cost savings from its low-cost center of excellence in India.