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AMN Stock Slips Despite Q2 Earnings & Revenue Beat, Margins Down

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Key Takeaways

  • AMN Healthcare reported Q2 adjusted EPS of 30 cents, exceeding the Zacks Consensus Estimate.
  • AMN Healthcare's Q2 revenues were $658.2 million, with declines in all operating segments.
  • AMN Healthcare's gross margin fell to 29.8% and operating margin slid to 6.4% in Q2.

AMN Healthcare Services, Inc. (AMN - Free Report) delivered adjusted earnings per share (EPS) of 30 cents in the second quarter of 2025, which declined 69.4% year over year. However, the figure surpassed the Zacks Consensus Estimate by 76.5%.

GAAP loss per share for the quarter was $3.02 against EPS of 42 cents in the year-ago period.

AMN’s Revenues in Detail

AMN Healthcare registered revenues of $658.2 million in the second quarter, down 11.1% year over year. However, the figure surpassed the Zacks Consensus Estimate by 0.9%.

Shares of this company lost nearly 7.3% in today’s pre-market trading.

AMN Healthcare’s Segment Details

AMN Healthcare conducts its business via three reportable segments — Nurse and Allied Solutions, Physician and Leadership Solutions and Technology and Workforce Solutions.

In the second quarter of 2025, the Nurse and Allied Solutions segment’s revenues totaled $381.9 million, down 13.7% year over year. Travel nurse staffing revenues were down 25% year over year, whereas Allied revenues declined 4% year over year. Labor disruption events contributed $16 million in revenues in the quarter. This figure compares to our Nurse and Allied Solutions segment’s second-quarter projection of $374.7 million.

The Physician and Leadership Solutions segment’s revenues totaled $174.5 million, down 6.2% year over year. Locum tenens revenues were $143 million in the quarter, flat year over year. Interim leadership revenues were down 25% year over year. Physician and leadership search businesses saw a revenue decline of 29% year over year. This figure compares to our Physician and Leadership Solutions segment’s second-quarter projection of $175.4 million.

The Technology and Workforce Solutions segment’s revenues totaled $101.8 million, down 9.3% year over year. Language interpretation services business revenues came in at $76 million in the quarter (up 1% year over year), while the vendor management systems business saw a 31% year-over-year revenue decline to reach $19 million. This figure compares to our Technology and Workforce Solutions segment’s second-quarter projection of $102.6 million.

AMN Healthcare Services Inc Price, Consensus and EPS Surprise

AMN Healthcare Services Inc Price, Consensus and EPS Surprise

AMN Healthcare Services Inc price-consensus-eps-surprise-chart | AMN Healthcare Services Inc Quote

AMN’s Margin Trend

In the quarter under review, AMN Healthcare’s gross profit fell 14.5% year over year to $196.4 million. The gross margin contracted 119 basis points (bps) to 29.8%.

Selling, general & administrative expenses increased 3.7% year over year to $154.6 million.

Adjusted operating profit totaled $41.8 million, reflecting a 48.2% decline from the prior-year quarter. The adjusted operating margin in the second quarter contracted 455 bps to 6.4%.

AMN Healthcare’s Financial Position

AMN Healthcare exited second-quarter 2025 with cash and cash equivalents of $41.5 million compared with $55.8 million at the first-quarter end. Total debt at the end of second-quarter 2025 was $920 million compared with $1 billion at the first-quarter end.

Cumulative net cash provided by operating activities at the end of second-quarter 2025 was $171.2 million compared with $180.9 million a year ago.

AMN’s Guidance

AMN Healthcare has provided its financial outlook for the third quarter of 2025.
For the third quarter, the company expects revenues in the range of $610 million-$625 million, reflecting a decline of 9-11% compared with the prior-year figure. The Zacks Consensus Estimate is pegged at $639 million.

With respect to the Nurse and Allied Solutions segment, the company expects revenues to decline 11-14% in the third quarter from the prior-year figure. The Technology and Workforce Solutions segment’s revenues are expected to decline 12-14% in the third quarter from the prior-year figure.

The company projects third-quarter revenues in the Physician and Leadership Solutions segment to decrease 2-4% from the prior-year figure.

Our Take on AMN Healthcare

AMN Healthcare’s dismal top-line and bottom-line performances in second-quarter 2025 were disappointing. The decline in all its segmental revenues during the reported quarter was worrying. The contraction of both margins does not bode well. AMN Healthcare expects to register a decline in its overall top line and all its segments in the third quarter of 2025, which is concerning. Management’s confirmation that an uncertain healthcare policy environment caused AMN Healthcare’s clients to slow their decision-making in the second quarter, which is reflected in the third-quarter guidance, raises our apprehension about the stock.

However, AMN Healthcare exited the quarter with better-than-expected results. The uptick in the Language interpretation services revenues was encouraging. Management confirmed that AMN Passport witnessed encouraging customer adoption during the quarter, along with stabilizing orders in July and rebounding extension rates.

In July, AMN Healthcare announced the sale of its Smart Square nurse scheduling software to symplr and announced a commercial partnership that leverages its workforce advisory, planning and analytics solutions with the healthcare workforce management solutions of symplr. This looks promising for the stock.

AMN’s Zacks Rank and Key Picks

AMN Healthcare currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader medical space that have announced quarterly results are GE HealthCare Technologies Inc. (GEHC - Free Report) , West Pharmaceutical Services, Inc. (WST - Free Report) and Boston Scientific Corporation (BSX - Free Report) .

GE HealthCare, sporting a Zacks Rank #1 (Strong Buy), reported second-quarter 2025 adjusted EPS of $1.06, beating the Zacks Consensus Estimate by 16.5%. Revenues of $5.01 billion outpaced the consensus mark by 0.7%. You can see the complete list of today’s Zacks #1 Rank stocks here.

GE HealthCare has a long-term estimated growth rate of 5.8%. GEHC’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 12.5%.

West Pharmaceutical reported second-quarter 2025 adjusted EPS of $1.84, beating the Zacks Consensus Estimate by 21.9%. Revenues of $766.5 million surpassed the Zacks Consensus Estimate by 5.4%. It currently flaunts a Zacks Rank #1.

West Pharmaceutical has a long-term estimated growth rate of 8.4%. WST’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 16.8%.

Boston Scientific reported second-quarter 2025 adjusted EPS of 75 cents, beating the Zacks Consensus Estimate by 4.2%. Revenues of $5.06 billion surpassed the Zacks Consensus Estimate by 3.5%. It currently carries a Zacks Rank #2 (Buy).

Boston Scientific has a long-term estimated growth rate of 14%. BSX’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 8.1%.

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