AMN Healthcare Services, Inc.

What they do

AMN supplies hospitals, clinics, physician practices, schools and other care settings with temporary and permanent clinical staff, including nurses, allied health professionals, physicians, dentists, advanced practice providers, and interim leaders. It also sells managed services programs (MSP), vendor management systems (VMS), language interpretation, recruitment process outsourcing, revenue cycle solutions and workforce optimization services. Operations are reported in three segments: nurse and allied solutions, physician and leadership solutions, and technology and workforce solutions.

Revenue drivers

• Nurse and allied solutions — Provides direct, vendor-neutral and managed services nurse and allied staffing plus revenue cycle management; was 60% of 2025 consolidated revenue and 76% of revenue in the first six months of 2026.
• Physician and leadership solutions — Places physicians, dentists and advanced practice providers on temporary assignments and recruits permanent physicians and interim healthcare leaders; was 26% of 2025 revenue and 16% in the first six months of 2026.
• Technology and workforce solutions — Includes language services, SaaS-based VMS, workforce optimization and RPO; was 14% of 2025 revenue and 8% in the first six months of 2026.
• Labor disruption staffing — Unpredictable events tied to union-represented healthcare professionals that drive demand spikes; contributed $12 million of revenue in Q3 2025.

Recent performance

Q3 2025 revenue was $634.5 million, down 8% year over year and 4% sequentially, with net income of $29.3 million ($0.76 diluted EPS) and adjusted EBITDA of $57.5 million. Consolidated gross margin was 29.1%, down 190 basis points year over year, and SG&A was $139 million, or 21.8% of revenue. Revenue declined year over year in all three segments: nurse and allied $361 million (down 9%), physician and leadership $178 million (down 1%), and technology and workforce $95 million (down 12%). For the six months ended June 30, 2026, revenue was $2,051.6 million versus $1,347.7 million in the prior-year period, with nurse and allied at 76% of revenue, physician and leadership at 16%, and technology and workforce at 8%. Full-year 2025 revenue was $2,730.4 million with a net loss of $95.7 million, compared with 2024 revenue of $2,983.8 million and a net loss of $147.0 million.

Strategy

Management is pushing to broaden beyond traditional staffing into recurring, technology-enabled talent solutions such as MSP, VMS, workforce optimization and RPO, both organically and through acquisitions. The company launched WorkWise in 2024, a healthcare technology platform combining predictive scheduling, workforce and vendor management, and it added ShiftWise Flex VMS capabilities integrated with the AMN Passport mobile app, which had more than 340,000 registered users as of January 2026. Operationally it is investing in digitizing recruitment and credentialing processes to gain operating leverage, and it is investing in candidate recruitment and engagement technologies to grow its clinician network. Management also aims to reduce sensitivity to economic cycles and improve margin mix through these efforts.

Risks

• Client insourcing and AI adoption — The 10-K states clients may improve internal staffing and recruiting through analytics, automation, machine learning and AI, or hire and retain permanent staff more effectively, which could reduce demand for AMN's services.
• Volume and rate pressure in travel nursing — Q3 2025 travel nurse staffing revenue fell 20% year over year and 6% sequentially, with overall nurse and allied revenue down 9% year over year.
• Unpredictable labor disruption demand — Labor disruption events are described as unpredictable and, while recurrent over the long term, have driven demand spikes and related financial outcomes when they occur.
• Segment revenue mix shifts — Technology and workforce solutions fell from 14% of 2025 revenue to 8% in the first six months of 2026, partly due to the sale of Smart Square scheduling software, and VMS revenue dropped 32% year over year in Q3 2025.

Outlook

Management said Q3 2025 revenue exceeded guidance, with nurse and allied and physician and leadership ahead of expectations and technology and workforce in line. Staffing orders rebounded in the third quarter and winter order volume was higher than a year earlier, leading the company to expect strong sequential travel nursing volume growth in Q4 2025. In October 2025 the company refinanced senior unsecured notes due 2027 with new unsecured notes due 2031 and amended its revolver to extend maturity to 2030, reduce facility size and improve its debt leverage covenant.