AMN Healthcare Services, Inc. reported a significant decline in financial performance for the second quarter of 2025, with total revenue of $658.2 million, down 11% from $740.7 million in the same period last year. For the first half of 2025, revenue decreased 14% to $1.35 billion compared to $1.56 billion in the first half of 2024. The decline was primarily driven by reduced demand in the nurse and allied solutions segment, which accounted for 59% of total revenue, and a decrease in the average number of healthcare professionals on assignment.
The company's gross profit also fell, decreasing 15% to $196.4 million for the second quarter, resulting in a gross margin of 29.8%, down from 31.0% a year earlier. The decrease in gross profit was attributed to lower margins in the physician and leadership solutions segment, driven by increased provider pay packages, and a shift in sales mix within the technology and workforce solutions segment. Operating expenses surged to $320.1 million, influenced by a $109.5 million goodwill impairment loss in the physician and leadership solutions segment, leading to a loss from operations of $123.7 million for the quarter.
In terms of operational metrics, the average number of travelers on assignment decreased by 16%, contributing to a decline in revenue across segments. The nurse and allied solutions segment saw a 14% drop in revenue, while the physician and leadership solutions segment experienced a 6% decrease. The technology and workforce solutions segment's revenue fell by 9%, primarily due to declines in vendor management systems and outsourced solutions businesses.
Strategically, AMN Healthcare completed the sale of its Smart Square healthcare scheduling software to Symplr Software LLC on July 1, 2025, for $65.3 million. This divestiture is part of the company's ongoing efforts to streamline operations and focus on core business areas. The company also reported a decrease in cash and cash equivalents, totaling $41.5 million as of June 30, 2025, compared to $10.6 million at the end of 2024, reflecting a net decrease in cash flows from operating activities.
Looking ahead, AMN Healthcare anticipates continued challenges in the healthcare staffing market, particularly as demand for temporary staffing remains below pre-pandemic levels. The company plans to leverage its existing resources and explore potential acquisitions to enhance its service offerings and improve operational efficiency. Despite the current downturn, AMN Healthcare remains committed to adapting to market conditions and optimizing its workforce solutions to meet evolving client needs.
About AMN HEALTHCARE SERVICES INC
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