AMN Healthcare Services, Inc. reported a significant decline in financial performance for the first quarter of 2025, with total revenue falling to $689.5 million, a 16% decrease from $820.9 million in the same period of 2024. The company's net loss for the quarter was $1.1 million, compared to a net income of $17.3 million in the prior year. This downturn was primarily driven by a 20% drop in revenue from the nurse and allied solutions segment, which accounted for 60% of total revenue. The decrease in this segment was attributed to a 22% reduction in the average number of travelers on assignment and a 5% decline in average bill rates.
In terms of operational metrics, AMN Healthcare experienced a decrease in average travelers on assignment, which directly impacted revenue generation. The physician and leadership solutions segment also saw an 8% decline in revenue, while the technology and workforce solutions segment's revenue decreased by 9%. The overall gross profit for the quarter was $198.1 million, reflecting a gross margin of 28.7%, down from 31.4% in the previous year. The decline in gross margin was attributed to increased provider pay packages and a shift in sales mix towards lower-margin services.
The company has made strategic adjustments in response to these challenges, including a reduction in selling, general, and administrative expenses, which fell to $147.7 million from $174.8 million year-over-year. This reduction was largely due to decreased employee compensation and benefits in line with lower revenue. AMN Healthcare also reported a net cash increase of $5.4 million for the quarter, with cash and cash equivalents totaling $94.7 million at the end of March 2025.
Looking ahead, AMN Healthcare's management indicated that the healthcare staffing landscape is evolving, with a shift towards permanent staffing solutions and cost containment measures among healthcare organizations. The company anticipates continued normalization in demand for travel nursing services, although it remains cautious about the overall market conditions. The management expressed confidence that cash generated from operations and available borrowings under its credit facility will be sufficient to meet operational and liquidity needs in the near term.
As of March 31, 2025, AMN Healthcare had 38,284,570 shares of common stock outstanding and maintained a large accelerated filer status. The company continues to monitor market trends and adjust its strategies accordingly to navigate the challenges posed by the current healthcare environment.
About AMN HEALTHCARE SERVICES INC
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