Cross Country 2025 Q3 Earnings Sharp Net Loss Amid 20.6% Revenue Drop

Cross Country Healthcare (CCRN) reported fiscal 2025 Q3 earnings on Nov 12, 2025, with results falling well below expectations. The company posted a net loss of $4.77 million (286.8% worse than 2024’s $2.56 million profit) and revenue of $250.05 million, a 20.6% decline from $315.12 million in 2024 Q3. The stock edged up 2.02% daily but dropped 3.14% weekly. Management confirmed no forward guidance due to pending merger activity and highlighted $99 million in cash and $20 million in positive operating cash flow.

Revenue

Cross Country’s Q3 revenue fell 20.6% year-over-year to $250.05 million, driven by volume declines in Nurse and Allied Staffing (down 24%) and Physician Staffing (down 4%). Nurse and Allied Staffing, which represented 81% of total revenue, saw a sequential 10% drop, while Physician Staffing accounted for 19% of revenue. The Homecare Staffing segment bucked the trend, growing 29% year-over-year.

Earnings/Net Income

The company swung to a net loss of $4.77 million in Q3 2025, a 286.8% deterioration from 2024’s $2.56 million profit. Earnings per share (EPS) turned negative at -$0.15, a 287.5% drop from $0.08 in the prior year. The loss reflects lower revenue, higher restructuring costs, and integration expenses related to the pending Aya merger. The EPS performance underscores a dramatic shift from profitability to significant underperformance.

Post-Earnings Price Action Review

The strategy of buying CCRN shares on earnings release dates and holding for 30 days yielded a -14.18% annualized return over three years, sharply underperforming the S&P 500’s 18.74% APY. This historical underperformance suggests earnings-driven investment strategies for CCRN have been ineffective, prompting the need for alternative timing or criteria for entry points.

CEO Commentary

CEO John A. Martins emphasized progress in Homecare Staffing, with 29% year-over-year revenue growth, and sequential SG&A cost reductions via India’s low-cost center. He highlighted $99 million in cash, no debt, and $20 million in operating cash flow to fund technology investments like Intellify and xPerience. Martins also noted securing $400 million in contract value for Managed Service Program clients in 2025, though the tone balanced optimism with caution amid merger-related uncertainties.

Guidance

Cross Country declined to provide forward-looking guidance or host an earnings call for Q3 2025 due to the pending Aya merger. The HSR waiting period for the merger was extended due to the government shutdown, with a Dec 3, 2025, deadline to close the deal. No financial or operational forecasts were disclosed.

Additional News

1. Merger Activity: The pending merger with Aya Healthcare remains under regulatory review, with the HSR waiting period extended to Dec 3, 2025, due to the government shutdown.

2. Operational Momentum: Management secured $400 million in contract value for Managed Service Program clients in 2025, reflecting ongoing client retention and expansion efforts.

3. Cost Efficiency: SG&A expenses declined sequentially, driven by cost-cutting at the India-based low-cost center, and $20 million in positive operating cash flow supports technology investments.