AMN Healthcare Services, Inc.

Second-quarter consolidated revenue was $673 million, 2% higher year over year and 6% above the top end of guidance. Reported gross margin was 30.6%, 210 basis points above the top end of guidance, and adjusted EBITDA was $73 million, or 10.9% of revenue, up 26% year over year. Adjusted EPS was $0.77 versus $0.30 in the year-ago quarter, and net income was $21 million versus a net loss of $116 million a year ago. Segment revenue included Nurse and Allied at $422 million, up 11% year over year; Physician and Leadership at $165 million, down 6%; and Technology and Workforce Solutions at $87 million, down 15%. For Q3, AMN guided consolidated revenue to $640 million-$655 million, gross margin to 27%-27.5%, reported SG&A to 22%-22.5% of revenue, operating margin to 0.2%-0.8%, and adjusted EBITDA margin to 6.5%-7%.

Cary Grace emphasized that AMN is seeing broad-based improvement in demand, especially in travel nurse and allied, and that the company’s tech-enabled operating model is helping it convert that demand into higher fill rates. She framed the quarter as evidence that AMN is positioned to benefit from a normalized labor market where contingent staffing remains at historically low premium levels versus permanent staff. Her tone was constructive and confident, but she also flagged that some Q2 benefits were unique and not expected to repeat in Q3.

Brian Scott highlighted that Q2 benefited from $25 million of labor disruption revenue versus $10 million assumed in guidance, plus roughly $27 million of additional revenue and 370 basis points of adjusted EBITDA margin from one-time billing and reserve adjustments. He said consolidated SG&A was $147 million, adjusted SG&A was $135 million, down 4% year over year, and the company ended with $362 million in cash and equivalents, well above the $175 million expected, aided by $117 million of strike-related client deposits outstanding at quarter end. He also noted total debt of $750 million, a 1.5x leverage ratio, $85,000 shares repurchased at an average price of $26.33, and expected quarter-end cash of at least $225 million even after higher cash taxes and an interest payment.

Analysts focused on how quickly demand strength in Nurse and Allied could turn into higher pricing, whether the recent order surge was broad-based or share-driven, and how to think about the Kaiser renewal. Management said bill rates are stable for now, but higher sustained demand should eventually lead to rate improvement, though competition remains intense. On Kaiser, AMN said the contract runs through the end of 2026, the RFP is underway, and the company feels well positioned because of its long-standing relationship and strong performance.