Cross Country Healthcare, Inc. reported a significant decline in financial performance for the third quarter of 2025, with total revenue from services falling to $250.1 million, a decrease of 20.6% compared to $315.1 million in the same period last year. The decline was primarily attributed to reduced volumes in both the Nurse and Allied Staffing and Physician Staffing segments. The company also recorded a net loss attributable to common stockholders of $4.8 million, contrasting with a net income of $2.6 million in the prior year. For the nine months ended September 30, 2025, revenue decreased by 20.9% to $817.5 million, with a net loss of $11.9 million compared to a loss of $10.8 million in the same period of 2024.
In terms of operational metrics, the Nurse and Allied Staffing segment, which accounted for approximately 81% of total revenue, experienced a revenue drop of 23.8% to $202.0 million, driven by a 16.8% decline in professionals on assignment. Conversely, the Homecare Staffing segment showed growth, with a 29.1% increase in revenue year-over-year. The Physician Staffing segment's revenue decreased by 4.3% to $48.1 million, primarily due to a reduction in billable days, although revenue per day filled increased by 12.9%.
The company has been actively managing its expenses, with direct operating expenses decreasing by 20.7% to $199.1 million for the third quarter, reflecting the revenue decline. Selling, general, and administrative expenses also fell by 13.6% to $46.9 million, attributed to lower headcount and variable compensation. However, acquisition and integration-related costs surged to $4.1 million, primarily due to fees associated with the pending merger with Aya Healthcare, which is expected to close by December 3, 2025, pending regulatory approvals.
As of September 30, 2025, Cross Country Healthcare reported cash and cash equivalents of $99.1 million, with no borrowings drawn under its revolving senior-secured asset-based credit facility. The company’s working capital decreased slightly to $209.6 million, and it maintained a borrowing base availability of $121.4 million. The company anticipates that its operating cash flows will continue to support its liquidity needs, alongside cash on hand and available funds through its credit facility.
Looking ahead, Cross Country Healthcare faces challenges due to market conditions affecting demand for staffing services. The company is focused on strategic initiatives, including the completion of the Aya merger, which could significantly alter its operational landscape. Management remains cautious about the potential impacts of macroeconomic factors on future performance, emphasizing the need for continued adaptation to changing market dynamics.
About CROSS COUNTRY HEALTHCARE INC
Cross Country Healthcare, Inc. is a leading provider of healthcare staffing and workforce solutions, specializing in placing nurses, allied health professionals, physicians, and education staff across the U.S. The company offers temporary, permanent, and managed services through technology-enabled platforms, serving hospitals, clinics, schools, and government facilities. Its core value lies in delivering quality, flexible staffing solutions to meet evolving healthcare industry demands.
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