Cross Country Healthcare Reports 19.3% Revenue Decline in Q2 2025 Amid Staffing Challenges

Cross Country Healthcare, Inc. reported a significant decline in financial performance for the second quarter of 2025, with total revenue from services falling to $274.1 million, a decrease of 19.3% compared to $339.8 million in the same period last year. The company attributed this decline primarily to reduced volume and average bill rates in its Nurse and Allied Staffing segment, which accounted for approximately 82% of total revenue. In contrast, the Physician Staffing segment experienced a modest increase of 3.0%, contributing $49.8 million to the overall revenue. The net loss attributable to common stockholders for the quarter was $6.7 million, a notable improvement from the $16.1 million loss reported in the prior year.

For the first half of 2025, Cross Country Healthcare's revenue decreased by 21.1% to $567.5 million, down from $718.9 million in the same period of 2024. The company reported a loss from operations of $6.8 million, compared to a loss of $16.3 million in the previous year. Direct operating expenses also decreased significantly, reflecting a tighter bill/pay spread and a reduction in overall operational costs. The company’s cash and cash equivalents stood at $81.2 million as of June 30, 2025, with no borrowings drawn under its revolving credit facility.

In terms of strategic developments, Cross Country Healthcare is in the process of merging with Aya Holdings II Inc., a transaction that was approved by shareholders in February 2025. The merger is expected to close in the fourth quarter of 2025, pending regulatory approvals. During the second quarter, the company incurred $6.0 million in acquisition-related costs associated with this merger. The company has also been focusing on its Homecare Staffing segment, which saw a year-over-year revenue increase of 31.3%, indicating a shift in demand within its service offerings.

Operationally, the company reported a decrease in the average number of full-time equivalent (FTE) personnel in its Nurse and Allied Staffing segment, which fell by 16.4% year-over-year. However, the average revenue per FTE per day decreased by 7.7%, reflecting the challenges in the staffing market. The Physician Staffing segment reported a decrease in total days filled by 8.3%, although revenue per day filled increased by 12.4%, indicating a positive trend in pricing despite lower volume.

Looking ahead, Cross Country Healthcare anticipates continued challenges in the staffing market, particularly in the Nurse and Allied Staffing segment, but remains optimistic about growth opportunities in Homecare Staffing and the Physician Staffing segment. The company plans to leverage its upcoming merger with Aya Holdings to enhance its service offerings and operational efficiencies, positioning itself for potential recovery in the staffing market.