AMN Healthcare Services, Inc. reported fourth‑quarter and full‑year 2025 results on February 19, 2026, showing consolidated revenue of $748 million, a 2% increase from the same quarter a year earlier and 18% higher than the prior quarter. The company posted a net loss of $8 million, or $0.20 per diluted share, compared with a $188 million loss ($4.90 per share) in the same period last year. Adjusted diluted earnings per share were $0.22, missing the consensus estimate of $0.27 by $0.05, while revenue beat the consensus estimate of $723.9 million by $24.1 million.
The quarter’s revenue mix was driven by a 36% sequential rise in the Nurse and Allied Solutions segment, which generated $491 million, up 8% year‑over‑year. In contrast, the Technology and Workforce Solutions segment declined 18% to $88 million. Gross margin fell to 26.1%, a 370‑basis‑point drop from the prior year, largely due to lower margins across all segments and an unfavorable revenue mix that included a $124 million labor‑disruption component that reduced gross margin by 130 basis points.
Management highlighted that labor‑disruption revenue, which rose to $124 million in Q4, is a significant tailwind for top‑line growth but exerts pressure on margins. CEO Cary Grace noted that “outsized labor‑disruption revenue in the fourth quarter and with two large events in the first quarter, we anticipate significantly more labor‑disruption revenue this quarter.” CFO Brian Scott added that the $124 million labor‑disruption revenue was $24 million above guidance and that it contributed to the margin compression.
Looking ahead, AMN guided for first‑quarter 2026 revenue of $1.225 billion to $1.240 billion, driven by an expected $600 million in labor‑disruption revenue. Adjusted EBITDA margin guidance for the quarter is 9.7% to 10.2%, a significant decline from the 25.5%–26% range previously cited. The guidance reflects management’s view that the surge in labor‑disruption revenue will come at a cost, with lower gross margins and tighter operating leverage.
Full‑year 2025 results show revenue of $2.995 billion, up 2% from $2.945 billion in 2024, and a net loss of $8 million versus a $188 million loss in 2024. Adjusted EPS for the year was $0.22, down from $0.75 in 2024, underscoring the impact of labor‑disruption revenue on profitability. The company’s balance sheet remains strong, with a net leverage ratio of 3.3x at year‑end and a target of below 3.0x in Q1 2026.
AMN’s strategy to invest in AI technology enablement is intended to improve operational efficiency and reduce reliance on labor‑intensive processes. CEO Grace emphasized that “we are expanding our capabilities by investing in AI technology enablement to support the administrative and other non‑clinical interactions with patients where human interaction is not required.” This focus aims to offset margin pressure from labor‑disruption revenue and support sustainable organic growth of 4%–6% per year after 2026.
The market reaction to the earnings was mixed. While the revenue beat generated positive sentiment, the EPS miss and margin compression tempered enthusiasm. Analysts noted that the large labor‑disruption revenue surge is a short‑term tailwind, and the company’s guidance for lower EBITDA margins signals ongoing headwinds in the staffing market.
The company’s guidance for Q1 2026 reflects confidence in capturing the labor‑disruption revenue wave while acknowledging the cost impact on profitability. Management’s outlook for sustainable organic growth after 2026 indicates a long‑term strategy to strengthen margins through AI investments and operational efficiencies.
The earnings release provides critical insight into AMN’s current financial health, the impact of labor disruptions on its business model, and the company’s strategic direction toward AI‑driven efficiencies. Investors and analysts will likely adjust their models to account for the significant labor‑disruption revenue and the associated margin compression, making this a high‑importance event.
The content on EveryTicker is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.