Cross Country Healthcare Reports 17.8% Revenue Decline and $4.3 Million Net Loss in Q1 2026

Cross Country Healthcare, Inc. reported a significant decline in financial performance for the first quarter of 2026, with total revenue from services falling 17.8% to $241.1 million, down from $293.4 million in the same period last year. The decrease was primarily attributed to volume declines in both the Nurse and Allied Staffing and Physician Staffing segments. The company recorded a net loss attributable to common stockholders of $4.3 million, compared to a loss of $0.5 million in the prior year. Operating expenses also decreased, totaling $245.2 million, a reduction of 16.7% from $294.4 million in the previous year, largely due to lower direct operating expenses and selling, general, and administrative costs.

In terms of operational metrics, the Nurse and Allied Staffing segment, which accounted for approximately 84% of total revenue, saw a revenue decrease of 16.9% to $201.4 million, driven by a 14.1% decline in full-time equivalent (FTE) professionals on assignment. Conversely, Cross Country Community Care experienced a 15.8% increase in revenue year-over-year. The Physician Staffing segment also faced challenges, with revenue declining 22.5% to $39.6 million, primarily due to a decrease in billable days. The overall contribution income for the company fell to $15.5 million, down from $21.3 million in the previous year.

The company has been actively managing its costs, with direct operating expenses decreasing by 17.6% to $193.5 million. Selling, general, and administrative expenses also saw a reduction of 12.7% to $45.8 million, attributed to lower headcount and reduced variable compensation. However, restructuring costs increased to $0.8 million from $0.3 million, reflecting ongoing adjustments to the workforce. Additionally, the company recorded $1.2 million in legal fees and settlement charges during the quarter, marking a new expense category compared to the previous year.

Cross Country Healthcare's balance sheet as of March 31, 2026, showed total assets of $451.1 million, a slight increase from $448.9 million at the end of 2025. The company maintained cash and cash equivalents of $105.6 million, with no borrowings drawn under its revolving senior-secured asset-based credit facility. The company also repurchased 657,653 shares of common stock for $5.8 million during the quarter, reflecting its ongoing commitment to returning value to shareholders.

Looking ahead, the company has entered into a merger agreement with KL Criss Cross Intermediate, LLC, which, if completed, will result in Cross Country Healthcare becoming a wholly owned subsidiary of the parent company. The merger is subject to customary conditions, including stockholder approval and regulatory clearances. The company anticipates that the merger will provide additional resources and strategic direction to navigate the current market challenges and enhance its service offerings in the healthcare staffing sector.