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- **Revenue Beat**: Q3 revenue of $634 million (+8% YoY) exceeded guidance, driven by Nurse and Allied Solutions (+$12 million). Adjusted EBITDA margin of 9.1% was 20bps above guidance.
- **Gross Margin Volatility**: Q3 gross margin 29.1% (24.1% in Nurse and Allied), with Labor Disruption revenue boosting margins. Q4 gross margin expected to decline 100bps YoY due to mix and seasonality.
- **Strategic Growth**: 20%+ growth in international Nurse placements and VMS recovery in 2026. Travel Nurse bill rates set to rise modestly in Q4 for the first time in 3 years.
- **Financial Strength**: $53 million cash, $850 million debt (3.3x net leverage). Q4 guidance includes $100 million Labor Disruption revenue, with 2026 focus on margin recovery through contingent workforce solutions.

**【CEO Summary Section】**
- **Revenue Performance**: Q3 revenue of $634 million exceeded guidance, driven by Nurse and Allied Solutions (+$12 million) and strong demand in Travel Nurse and winter orders. Adjusted EBITDA was $57.5 million, 9.1% of revenue, above the high end of guidance.
- **Gross Margin Dynamics**: Consolidated gross margin was 29.1%, with Nurse and Allied segment gross margin at 24.1% (down 90bps YoY). Labor Disruption revenue contributed 150bps to Q3 gross margin but is expected to drag Q4 margins by 100bps.
- **Strategic Initiatives**: Investment in AI and technology (e.g., PreCheck predictive analytics) to improve clinician engagement and fill rates. International Nurse placements are expected to grow 20%+ in 2026, supporting margin recovery.
- **Demand Trends**: Travel Nurse demand rebounded 50% from mid-May lows, with modest year-over-year growth in winter orders. Permanent hiring activity fell, driving interest in contingent workforce solutions.

**【CFO Financial Commentary】**
- **Financial Highlights**: GAAP net income of $29 million, adjusted EPS of $0.39 (vs. $0.61 YoY). Operating cash flow of $23 million, with $53 million in cash and $850 million in debt (net leverage 3.3x).
- **Q4 Guidance**: Revenue $715-$730 million, gross margin 25.5%-26.0%, SG&A 20.0%-20.5% of revenue. Excluding Labor Disruption, gross margin would be ~26.5%.
- **Cost Management**: Sequential SG&A decline of $11 million (to $139 million) due to lower bad debt and reserve adjustments. Capital expenditures remain disciplined, with $8 million in Q3.

**【Q&A Key Highlights】**
- **Gross Margin Outlook**: Q4 gross margin expected to decline 100bps YoY due to Labor Disruption mix and seasonality. 2026 margin recovery driven by international placements, VMS growth, and bill rate normalization.
- **Demand Drivers**: Travel Nurse volume growth (+50% from mid-May lows), Locum Tenens MSP wins (+15% YoY), and schools business momentum. Language Services and VMS face pricing pressure but are expected to stabilize.
- **Competitive Landscape**: Clients increasingly prioritize total talent solutions platforms. Bill rates for Nurse and Allied Solutions expected to rise modestly in Q4 for the first time in 3 years.
- **Risk Management**: Debt refinanced to extend maturity to 2029, reducing carrying costs. Days sales outstanding improved to 57 days, reflecting strong collections.


AMN Healthcare Services, Inc. (AMN) Q3 2025 Earnings Call Transcript

Nurse and Allied Solutions

Physician and Leadership Solutions

Technology and Workforce Solutions

AMN

AMN fundamentals

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