Cross Country Healthcare (CCRN) swings to larger 2025 loss as revenue falls
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Cross Country Healthcare reported sharply weaker results for Q4 and full year 2025 as demand for healthcare staffing continued to soften and merger-related impacts weighed on earnings. Fourth quarter revenue was $236.8 million, down 24% from a year ago and 5% from the prior quarter, while full-year revenue fell 22% to $1.05 billion.
Profitability deteriorated significantly. Q4 net loss attributable to common stockholders widened to $82.9 million, and the full-year net loss reached $94.9 million, or $2.93 per diluted share. Results were heavily affected by a $77.9 million non-cash impairment of goodwill and trade names and a $29.6 million valuation allowance against deferred tax assets, both tied to a decline in the company’s market value after the Aya merger agreement was terminated.
On an adjusted basis, Q4 EBITDA was $4.1 million, or 1.7% of revenue, down from $9.3 million and a 3.0% margin a year earlier. Full-year adjusted EBITDA dropped to $26.8 million, or a 2.5% margin, from $49.1 million and 3.7%. Management’s outlook for Q1 2026 calls for revenue of $235 million to $240 million and adjusted EBITDA of $4.0 million to $5.0 million, implying revenue declines of roughly 18% to 20% year-over-year and substantially lower adjusted earnings.
Positive
- None.
Negative
- Sharp deterioration in profitability: Full-year 2025 net loss attributable to common stockholders widened to $94.9 million, or $2.93 per diluted share, versus a $14.6 million loss in 2024, reflecting both weaker operations and sizeable non-cash charges.
- Large impairment and tax valuation allowance: Results include a $77.9 million goodwill and trade name impairment and a $29.6 million valuation allowance on deferred tax assets, both triggered by a decline in equity market capitalization after termination of the Aya Merger Agreement.
- Significant revenue and margin compression: Revenue fell 22% year-over-year to $1.05 billion, while adjusted EBITDA declined 45% to $26.8 million and margin dropped from 3.7% to 2.5%, signaling weaker underlying earnings power.
- Guidance implies continued weakness: Q1 2026 outlook calls for revenue of $235–$240 million, down roughly 18%–20% year-over-year, and adjusted EBITDA of $4.0–$5.0 million, implying sustained pressure on growth and margins.
Insights
Revenue and earnings fell sharply in 2025, with large non-cash charges and weaker guidance weighing on the outlook.
Cross Country Healthcare saw 2025 revenue decline to
Profitability eroded meaningfully. Full-year net loss attributable to common stockholders was
Guidance for Q1
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported)March 4, 2026
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported)
(Exact name of registrant as specified in its charter)
(State or Other Jurisdiction of Incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) | ||||||
(Address of Principal Executive Office) (Zip Code)
(
(Registrant’s telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report)
Securities registered pursuant to Section 12(b) of the Act:
Title of each class Trading Symbol Name of each exchange on which registered
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2).
Emerging growth company
Section 2 – Financial Information
Item 2.02 Results of Operations and Financial Condition
(a) On March 4, 2026, Cross Country Healthcare, Inc. (“the Company”) issued a press release announcing results for the fourth quarter and full year ended December 31, 2025, a copy of which is attached as Exhibit 99.1 to this Current Report on Form 8-K. This information is being furnished under Item 2.02 and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liability of such section.
Section 7 – Regulation FD
Item 7.01 Regulation FD Disclosure.
Incorporated by reference is a press release issued by the Company on March 4, 2026, which is attached hereto as Exhibit 99.1. This information is being furnished under Item 7.01 and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liability of such section.
Section 9 – Financial Statements and Exhibits
Item 9.01 Financial Statements and Exhibits
(d) Exhibits
| Exhibit | Description | ||||||||||
99.1 | Press Release issued by the Company on March 4, 2026 | ||||||||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | ||||||||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.
| CROSS COUNTRY HEALTHCARE, INC. | ||||||||||||||
| Dated: | March 4, 2026 | By: | /s/ William J. Burns | |||||||||||
| Name: William J. Burns | ||||||||||||||
| Title: Executive Vice President & Chief Financial Officer | ||||||||||||||
CROSS COUNTRY HEALTHCARE ANNOUNCES FOURTH QUARTER AND FULL YEAR
2025 FINANCIAL RESULTS
BOCA RATON, Fla., March 4, 2026--Cross Country Healthcare, Inc. (the “Company,” “Cross Country,” “we,” “us,” and “our”) (Nasdaq: CCRN) today announced financial results for its fourth quarter and full year ended December 31, 2025.
SELECTED FINANCIAL INFORMATION:
| Dollars are in thousands, except per share amounts | Q4 2025 | Variance Q4 2025 vs Q4 2024 | Variance Q4 2025 vs Q3 2025 | Full Year 2025 | Variance 2025 vs 2024 | |||||||||||||||||||||||||||
| Revenue | $ | 236,761 | (24) | % | (5) | % | $ | 1,054,293 | (22) | % | ||||||||||||||||||||||
| Gross profit margin* | 20.3 | % | 30 | bps | (10) | bps | 20.3 | % | (10) | bps | ||||||||||||||||||||||
| Net loss attributable to common stockholders | $ | (82,929) | (2,110) | % | (1,637) | % | $ | (94,852) | (552) | % | ||||||||||||||||||||||
| Diluted EPS | $ | (2.56) | $ | (2.44) | $ | (2.41) | $ | (2.93) | $ | (2.49) | ||||||||||||||||||||||
| Adjusted EBITDA* | $ | 4,067 | (56) | % | (38) | % | $ | 26,801 | (45) | % | ||||||||||||||||||||||
| Adjusted EBITDA margin* | 1.7 | % | (130) | bps | (90) | bps | 2.5 | % | (120) | bps | ||||||||||||||||||||||
| Adjusted EPS* | $ | (0.06) | $ | (0.10) | $ | (0.09) | $ | 0.02 | $ | (0.44) | ||||||||||||||||||||||
| Cash flows provided by operations | $ | 18,239 | (25) | % | (9) | % | $ | 48,251 | (60) | % | ||||||||||||||||||||||
* Represents amounts that are not calculated in accordance with U.S. generally accepted accounting principles (GAAP) and are referred to as non-GAAP measures. Please refer to the accompanying discussion below of how these non-GAAP financial measures are calculated and used under “Non-GAAP Financial Measures” and the tables reconciling these measures to the closest GAAP measure.
Fourth Quarter and Full Year Business Highlights
•735 facilities, over 5,900 users, and 5.7 million hours processed in 2025 with Intellify®
• 95% of MSP and vendor neutral clients are now live on Intellify®
•Continued positive cash flow from operations for the quarter and year
•Strong balance sheet with $109 million of cash on hand and no debt as of December 31, 2025
•Repurchased over 800,000 shares, or 2.5% of common stock outstanding in the fourth quarter
•Reduced US headcount by 21% in 2025, driving cost savings through our India center of excellence
“In addition to a challenging market backdrop, particularly for travel staffing, our performance last year was certainly impacted by the protracted merger process. As we enter 2026 unencumbered and laser focused, I’m encouraged, not just by the signs of an improving market, but also by the returns from the investments and actions we have taken already,” said Kevin C. Clark, Co-Founder, Chairman, and CEO. He continued, “The engine of our growth is centered around our proprietary technology Intellify® and along with strategic investments in revenue producers and the leverage of our robust balance sheet, I believe we will see sequential progression throughout 2026. Our goal is to exit the year at a revenue run-rate north of $1 billion and a profit margin between four and five percent.”
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Fourth quarter consolidated revenue was $236.8 million, a decrease of 24% year-over-year and 5% sequentially. Consolidated gross profit margin was 20.3%, up 30 basis points year-over-year and down 10 basis points sequentially. Net loss attributable to common stockholders was $82.9 million, as compared to a net loss of $3.8 million in the prior year and a net loss of $4.8 million in the prior quarter. The current period net loss was primarily driven by a goodwill and trade name impairment charge of $77.9 million as well as a $29.6 million valuation allowance against deferred tax assets. The goodwill impairment assessment and related charge was primarily triggered by the fourth quarter decline in the Company’s equity market capitalization following the termination of the Aya Merger Agreement.
Diluted earnings per share (EPS) was a net loss of $2.56, as compared to a net loss of $0.12 in the prior year and a net loss of $0.15 in the prior quarter. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) was $4.1 million, or 1.7% of revenue, as compared with $9.3 million, or 3.0% of revenue, in the prior year, and $6.5 million, or 2.6% of revenue, in the prior quarter. Adjusted EPS was $(0.06), as compared to $0.04 in the prior year and $0.03 in the prior quarter.
For the year ended December 31, 2025, consolidated revenue was $1.1 billion, a decrease of 22% year-over-year. Consolidated gross profit margin was 20.3%, down 10 basis points year-over-year. Net loss attributable to common stockholders was $94.9 million, or $2.93 per diluted share, as compared to a net loss of $14.6 million, or $0.44 per diluted share, in the prior year. Adjusted EBITDA was $26.8 million, or 2.5% of revenue, as compared to $49.1 million, or 3.7% of revenue, in the prior year. Adjusted EPS was $0.02, as compared to $0.46 in the prior year.
Quarterly Business Segment Highlights
Nurse and Allied Staffing
Revenue was $194.2 million, a decrease of 24% year-over-year and 4% sequentially. Contribution income was $12.6 million, as compared to $20.3 million in the prior year and $14.2 million in the prior quarter. Average field contract personnel on a full-time equivalent (FTE) basis was 6,318, as compared with 7,621 in the prior year and 6,371 in the prior quarter. Revenue per FTE per day was $333, as compared to $363 in the prior year and $343 in the prior quarter.
Physician Staffing
Revenue was $42.5 million, a decrease of 20% year-over-year and 12% sequentially. Contribution income was $3.3 million, as compared to $3.5 million in the prior year and $4.3 million in the prior quarter. Total days filled were 18,599, as compared with 25,427 in the prior year and 20,695 in the prior quarter. Revenue per day filled was $2,286, as compared with $2,085 in the prior year and $2,324 in the prior quarter.
Cash Flow and Balance Sheet Highlights
Net cash provided by operating activities for the three months ended December 31, 2025 was $18.2 million, as compared to $24.2 million for the three months ended December 31, 2024 and $20.1 million for the three months ended September 30, 2025. For the year ended December 31, 2025, net cash provided by operating activities was $48.3 million, as compared to $120.1 million in the prior year.
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In connection with its termination of the Aya Merger Agreement, a termination fee of $20.0 million was paid to the Company during the fourth quarter. The Company recorded the Aya termination fee within operating cash flows for the three months and year ended December 31, 2025. The net cash operating inflows associated with the Aya Merger were $14.2 million and $5.8 million for the three months and year ended December 31, 2025, respectively.
During the fourth quarter, the Company repurchased a total of 0.8 million shares of its common stock for an aggregate price of $6.5 million, at an average market price of $8.10 per share. As of December 31, 2025, the Company had 31.7 million unrestricted shares outstanding and $34.0 million remaining for share repurchase.
At December 31, 2025, the Company had $108.7 million in cash and cash equivalents with no debt outstanding. There were no borrowings drawn under its revolving senior secured asset-based credit facility (ABL). As of December 31, 2025, borrowing base availability under the ABL was $114.6 million, with $96.3 million of availability net of $18.3 million of letters of credit.
Outlook for First Quarter 2026
The guidance below applies to management’s expectations for the first quarter of 2026.
| Q1 2026 Range | Year-over-Year | Sequential | |||||||||||||||
| Change | Change | ||||||||||||||||
| Revenue | $235 million - $240 million | (20)% - (18)% | (1)% - 1% | ||||||||||||||
| Adjusted EBITDA* | $4.0 million - $5.0 million | (54)% - (42)% | (2)% - 23% | ||||||||||||||
| Adjusted EPS* | $(0.06) - $(0.04) | $(0.12) - $(0.10) | $0 - $0.02 | ||||||||||||||
* Refer to discussion of non-GAAP financial measures and the reconciliation tables below.
The above estimates are based on current management expectations and, as such, are forward-looking and actual results may differ materially. The above ranges do not include the potential impact of any future divestitures, mergers, acquisitions, or other business combinations, changes in debt structure, or future significant share repurchases.
INVITATION TO CONFERENCE CALL
The Company will hold its quarterly conference call on Wednesday, March 4, 2026, at 5:00 P.M. Eastern Time to discuss its fourth quarter and full year 2025 financial results. This call will be webcast live and can be accessed at the Company’s website at ir.crosscountry.com or by dialing 800-369-2163 from anywhere in the U.S. or by dialing 773-756-4715 from non-U.S. locations - Passcode: Cross Country. A replay of the webcast will be available from March 4th through March 18th on the Company’s website and a replay of the conference call will be available by telephone by calling 866-360-7724 from anywhere in the U.S. or 203-369-0176 from non-U.S. locations - Passcode: 2047.
ABOUT CROSS COUNTRY HEALTHCARE
Cross Country Healthcare, Inc. (Nasdaq: CCRN) is a healthcare workforce solutions company delivering an AI-powered digital platform and advisory services, backed by nearly 40 years of healthcare labor expertise, to help health systems optimize and sustain their entire labor ecosystem.
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Through Intellify®, Cross Country's cloud-based workforce management and vendor management system, health systems gain clear visibility across internal and contingent labor. Intellify® integrates with core hospital systems and brings all service lines, including non-clinical, nursing, allied health, and locums, into one centralized view. Powered by real-time analytics and AI-driven insights, Intellify® helps leaders make smarter workforce decisions, streamline operations, reduce labor costs, improve flexibility, and support high-quality outcomes.
Copies of this and other press releases, as well as additional information about the Company, can be accessed online at ir.crosscountry.com. Stockholders and prospective investors can also register to automatically receive the Company’s press releases, filings with the Securities and Exchange Commission (SEC), and other notices by e-mail.
NON-GAAP FINANCIAL MEASURES
This press release and the accompanying financial statement tables reference non-GAAP financial measures, such as gross profit margin, adjusted EBITDA, adjusted EBITDA margin, and adjusted EPS. Such non-GAAP financial measures are provided as additional information and should not be considered substitutes for, or superior to, financial measures calculated in accordance with GAAP. Such non-GAAP financial measures are provided for consistency and comparability to prior year results; furthermore, management believes such non-GAAP financial measures are useful to investors when evaluating the Company’s performance, as such non-GAAP financial measures exclude certain items that management believes are not indicative of the Company’s future operating performance. Pro forma measures, if applicable, are adjusted to include the results of our acquisitions, and exclude the results of divestments, as if the transactions occurred in the beginning of the periods mentioned. Such non-GAAP financial measures may differ materially from the non-GAAP financial measures used by other companies. The financial statement tables that accompany this press release include a reconciliation of each non-GAAP financial measure to the most directly comparable GAAP financial measure and a more detailed discussion of each financial measure; as such, the financial statement tables should be read in conjunction with the presentation of these non-GAAP financial measures.
In addition, forward-looking adjusted EBITDA and adjusted EPS for the first quarter of 2026 exclude potential charges or gains that may be recorded during the fiscal year, including among other things, the potential impact of any future divestitures, mergers, acquisitions, or other business combinations, changes in debt structure, or future significant share repurchases. We have not attempted to provide reconciliations of such forward-looking non-GAAP earnings guidance to the comparable GAAP measure, as permitted by Item 10(e)(1)(i)(B) of Regulation S-K, because the impact and timing of these potential charges or gains is inherently uncertain and difficult to predict and is unavailable without unreasonable efforts. In addition, the Company believes such reconciliations would imply a degree of precision and certainty that could be confusing to investors. Such items could have a substantial impact on GAAP measures of our financial performance.
FORWARD LOOKING STATEMENTS
This press release contains “forward-looking statements” within the Private Securities Litigation Reform Act of 1995. Any statements contained in this press release that are not statements of historical fact, including statements relating to our future results (including business trends), may be deemed to be forward-looking statements. All such forward-looking statements are intended to provide management’s current expectations for the future of the Company based on current expectations and assumptions relating to the Company’s business, the economy, and other future conditions. Forward-looking statements generally can be identified through the use of words such as “believes,” “anticipates,” “may,”
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“should,” “will,” “plans,” “projects,” “expects,” “expectations,” “estimates,” “forecasts,” “predicts,” “targets,” “prospects,” “strategy,” “signs,” and other words of similar meaning in connection with the discussion of future performance, plans, actions, or events. Because forward-looking statements relate to the future, they are subject to inherent risks, uncertainties, and changes in circumstances that are difficult to predict. Such risks and uncertainties include, among others: (i) worldwide economic or political changes that affect the markets that the Company’s businesses serve, which could have an effect on demand for the Company’s services and impact the Company’s profitability, (ii) effects from global pandemics, epidemics, or other public health crises, (iii) changes in marketplace conditions, such as alternative modes of healthcare delivery, reimbursement and customer needs, (iv) disruptions in the global credit and financial markets, including diminished liquidity and credit availability, changes in international trade agreements, including tariffs and trade restrictions, foreign currency volatility, swings in consumer confidence and spending, and the overall macroeconomic environment, (v) the functioning of our information systems and the effect of cyber security risks and cyber incidents on our business, (vi) demand for the healthcare services that we provide, both nationally and in the regions in which we operate, (vii) leadership transitions and retention of key employees, (viii) our ability to attract and retain qualified nurses, physicians, and other healthcare personnel, (ix) costs and availability of short-term housing for our travel healthcare professionals, (x) the effect of existing or future government regulation and federal and state legislative and enforcement initiatives on our business, and (xi) outcomes of regulatory and legal proceedings, claims, and investigations. Accordingly, actual results may differ materially from those contemplated by these forward-looking statements. Investors, therefore, are cautioned against relying on any of these forward-looking statements. They are neither statements of historical fact nor guarantees or assurances of future performance. Additional information regarding the factors that may cause actual results to differ materially from these forward-looking statements is available in the Company’s filings with the SEC, including the risks and uncertainties identified in Part I, Item 1A - Risk Factors of the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 and in the Company’s other filings with the SEC. The list of factors is not intended to be exhaustive.
These forward-looking statements speak only as of the date of this press release. Except as may be required by applicable law, the Company does not assume any obligation to update or revise any forward-looking statement made in this press release or that may from time to time be made by or on behalf of the Company.
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| Cross Country Healthcare, Inc. | |||||||||||||||||||||||||||||
| Consolidated Statements of Operations | |||||||||||||||||||||||||||||
| (Unaudited, amounts in thousands, except per share data) | |||||||||||||||||||||||||||||
| Three Months Ended | Year Ended | ||||||||||||||||||||||||||||
| December 31, | December 31, | September 30, | December 31, | December 31, | |||||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2025 | 2024 | |||||||||||||||||||||||||
| Revenue from services | $ | 236,761 | $ | 309,940 | $ | 250,052 | $ | 1,054,293 | $ | 1,344,004 | |||||||||||||||||||
| Operating expenses: | |||||||||||||||||||||||||||||
| Direct operating expenses | 188,779 | 247,948 | 199,125 | 840,722 | 1,069,752 | ||||||||||||||||||||||||
| Selling, general and administrative expenses | 51,250 | 55,573 | 46,894 | 200,680 | 233,377 | ||||||||||||||||||||||||
| Credit loss expense (credit) | 355 | (228) | (861) | (441) | 21,432 | ||||||||||||||||||||||||
| Depreciation and amortization | 3,833 | 4,341 | 4,088 | 16,794 | 18,200 | ||||||||||||||||||||||||
| Acquisition and integration-related (income) costs | (15,577) | 4,216 | 4,147 | (3,394) | 4,219 | ||||||||||||||||||||||||
| Restructuring costs | 1,327 | 281 | 1,530 | 3,746 | 4,333 | ||||||||||||||||||||||||
| Legal and other losses (gains) | 548 | (928) | 1,102 | 2,749 | 6,668 | ||||||||||||||||||||||||
| Impairment charges | 77,851 | 2,170 | — | 77,851 | 2,888 | ||||||||||||||||||||||||
| Total operating expenses | 308,366 | 313,373 | 256,025 | 1,138,707 | 1,360,869 | ||||||||||||||||||||||||
| Loss from operations | (71,605) | (3,433) | (5,973) | (84,414) | (16,865) | ||||||||||||||||||||||||
| Other expenses (income): | |||||||||||||||||||||||||||||
| Interest expense | 568 | 608 | 556 | 2,216 | 2,188 | ||||||||||||||||||||||||
| Interest income | (882) | (535) | (864) | (3,129) | (2,050) | ||||||||||||||||||||||||
| Other (income) expense, net | (46) | 408 | (28) | 9 | (605) | ||||||||||||||||||||||||
| Loss before income taxes | (71,245) | (3,914) | (5,637) | (83,510) | (16,398) | ||||||||||||||||||||||||
| Income tax expense (benefit) | 11,684 | (161) | (863) | 11,342 | (1,842) | ||||||||||||||||||||||||
| Net loss attributable to common stockholders | $ | (82,929) | $ | (3,753) | $ | (4,774) | $ | (94,852) | $ | (14,556) | |||||||||||||||||||
| Net loss per share attributable to common stockholders - Basic | $ | (2.56) | $ | (0.12) | $ | (0.15) | $ | (2.93) | $ | (0.44) | |||||||||||||||||||
| Net loss per share attributable to common stockholders - Diluted | $ | (2.56) | $ | (0.12) | $ | (0.15) | $ | (2.93) | $ | (0.44) | |||||||||||||||||||
| Weighted average common shares outstanding: | |||||||||||||||||||||||||||||
| Basic | 32,334 | 32,338 | 32,524 | 32,409 | 33,379 | ||||||||||||||||||||||||
| Diluted | 32,334 | 32,338 | 32,524 | 32,409 | 33,379 | ||||||||||||||||||||||||
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| Cross Country Healthcare, Inc. | |||||||||||||||||||||||||||||
| Reconciliation of Non-GAAP Financial Measures | |||||||||||||||||||||||||||||
| (Unaudited, amounts in thousands) | |||||||||||||||||||||||||||||
| Three Months Ended | Year Ended | ||||||||||||||||||||||||||||
| December 31, | December 31, | September 30, | December 31, | December 31, | |||||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2025 | 2024 | |||||||||||||||||||||||||
Adjusted EBITDA:a | |||||||||||||||||||||||||||||
| Net loss attributable to common stockholders | $ | (82,929) | $ | (3,753) | $ | (4,774) | $ | (94,852) | $ | (14,556) | |||||||||||||||||||
| Interest expense | 568 | 608 | 556 | 2,216 | 2,188 | ||||||||||||||||||||||||
Income tax expense (benefit)b | 11,684 | (161) | (863) | 11,342 | (1,842) | ||||||||||||||||||||||||
| Depreciation and amortization | 3,833 | 4,341 | 4,088 | 16,794 | 18,200 | ||||||||||||||||||||||||
Acquisition and integration-related (income) costsc | (15,577) | 4,216 | 4,147 | (3,394) | 4,219 | ||||||||||||||||||||||||
Restructuring costsd | 1,327 | 281 | 1,530 | 3,746 | 4,333 | ||||||||||||||||||||||||
Severance costs - executive transitione | 6,035 | — | — | 6,035 | — | ||||||||||||||||||||||||
Legal, bankruptcy, and other losses (gains)f | 548 | (928) | 1,102 | 2,749 | 26,041 | ||||||||||||||||||||||||
Impairment chargesg | 77,851 | 2,170 | — | 77,851 | 2,888 | ||||||||||||||||||||||||
| Loss on disposal of fixed assets | 57 | 86 | — | 62 | 86 | ||||||||||||||||||||||||
| Gain on lease termination | (121) | — | — | (121) | — | ||||||||||||||||||||||||
| Interest income | (882) | (535) | (864) | (3,129) | (2,050) | ||||||||||||||||||||||||
| Other expense (income), net | 18 | 322 | (28) | 68 | (691) | ||||||||||||||||||||||||
| Equity compensation | 1,117 | 1,698 | 766 | 4,071 | 6,025 | ||||||||||||||||||||||||
System conversion costsh | 538 | 926 | 864 | 3,363 | 4,232 | ||||||||||||||||||||||||
Adjusted EBITDAa | $ | 4,067 | $ | 9,271 | $ | 6,524 | $ | 26,801 | $ | 49,073 | |||||||||||||||||||
Adjusted EBITDA margina | 1.7 | % | 3.0 | % | 2.6 | % | 2.5 | % | 3.7 | % | |||||||||||||||||||
Adjusted EPS:i | |||||||||||||||||||||||||||||
| Numerator: | |||||||||||||||||||||||||||||
| Net loss attributable to common stockholders | $ | (82,929) | $ | (3,753) | $ | (4,774) | $ | (94,852) | $ | (14,556) | |||||||||||||||||||
| Non-GAAP adjustments - pretax: | |||||||||||||||||||||||||||||
Acquisition and integration-related ( income) costsc | (15,577) | 4,216 | 4,147 | (3,394) | 4,219 | ||||||||||||||||||||||||
Restructuring costsd | 1,327 | 281 | 1,530 | 3,746 | 4,333 | ||||||||||||||||||||||||
Severance costs - executive transitione | 6,035 | — | — | 6,035 | — | ||||||||||||||||||||||||
Legal, bankruptcy, and other losses (gains)f | 548 | (928) | 1,102 | 2,749 | 26,041 | ||||||||||||||||||||||||
Impairment chargesg | 77,851 | 2,170 | — | 77,851 | 2,888 | ||||||||||||||||||||||||
| Other expense (income), net | — | 311 | — | — | (804) | ||||||||||||||||||||||||
System conversion costsh | 538 | 926 | 864 | 3,363 | 4,232 | ||||||||||||||||||||||||
Nonrecurring income tax adjustmentsj | 29,449 | — | — | 29,449 | — | ||||||||||||||||||||||||
| Tax impact of non-GAAP adjustments | (19,296) | (1,843) | (2,011) | (24,456) | (10,867) | ||||||||||||||||||||||||
| Adjusted net income attributable to common stockholders - non-GAAP | $ | (2,054) | $ | 1,380 | $ | 858 | $ | 491 | $ | 15,486 | |||||||||||||||||||
| Denominator: | |||||||||||||||||||||||||||||
| Weighted average common shares - basic, GAAP | 32,334 | 32,338 | 32,524 | 32,409 | 33,379 | ||||||||||||||||||||||||
| Dilutive impact of share-based payments | 77 | 68 | — | 98 | 133 | ||||||||||||||||||||||||
| Adjusted weighted average common shares - diluted, non-GAAP | 32,411 | 32,406 | 32,524 | 32,507 | 33,512 | ||||||||||||||||||||||||
| Reconciliation: | |||||||||||||||||||||||||||||
| Diluted EPS, GAAP | $ | (2.56) | $ | (0.12) | $ | (0.15) | $ | (2.93) | $ | (0.44) | |||||||||||||||||||
| Non-GAAP adjustments - pretax: | |||||||||||||||||||||||||||||
Acquisition and integration-related (income) costsc | (0.48) | 0.13 | 0.13 | (0.10) | 0.13 | ||||||||||||||||||||||||
Restructuring costsd | 0.04 | 0.01 | 0.05 | 0.12 | 0.13 | ||||||||||||||||||||||||
Severance costs - executive transitione | 0.18 | — | — | 0.18 | — | ||||||||||||||||||||||||
Legal, bankruptcy, and other losses (gains)f | 0.02 | (0.03) | 0.03 | 0.08 | 0.77 | ||||||||||||||||||||||||
Impairment chargesg | 2.41 | 0.07 | — | 2.41 | 0.09 | ||||||||||||||||||||||||
| Other expense (income),net | — | 0.01 | — | — | (0.02) | ||||||||||||||||||||||||
System conversion costsh | 0.02 | 0.03 | 0.03 | 0.11 | 0.13 | ||||||||||||||||||||||||
Nonrecurring income tax adjustmentsj | 0.91 | — | — | 0.91 | — | ||||||||||||||||||||||||
| Tax impact of non-GAAP adjustments | (0.60) | (0.06) | (0.06) | (0.76) | (0.33) | ||||||||||||||||||||||||
| Adjustment for change in dilutive shares | — | — | — | — | — | ||||||||||||||||||||||||
Adjusted EPS, non-GAAPi | $ | (0.06) | $ | 0.04 | $ | 0.03 | $ | 0.02 | $ | 0.46 | |||||||||||||||||||
7
| Cross Country Healthcare, Inc. | |||||||||||
| Consolidated Balance Sheets | |||||||||||
| (Unaudited, amounts in thousands) | |||||||||||
| December 31, | December 31, | ||||||||||
| 2025 | 2024 | ||||||||||
| Assets | |||||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | $ | 108,738 | $ | 81,633 | |||||||
| Accounts receivable, net | 167,512 | 223,238 | |||||||||
| Income taxes receivable | 3,594 | 10,389 | |||||||||
| Prepaid expenses | 7,561 | 7,848 | |||||||||
| Insurance recovery receivable | 4,851 | 9,255 | |||||||||
| Other current assets | 1,333 | 2,637 | |||||||||
| Total current assets | 293,589 | 335,000 | |||||||||
| Property and equipment, net | 27,775 | 28,850 | |||||||||
| Operating lease right-of-use assets | 2,206 | 2,468 | |||||||||
| Goodwill | 63,803 | 135,060 | |||||||||
| Other intangible assets, net | 27,635 | 42,186 | |||||||||
| Deferred tax assets | — | 8,104 | |||||||||
| Insurance recovery receivable | 14,859 | 20,928 | |||||||||
| Cloud computing | 14,028 | 10,846 | |||||||||
| Deferred compensation asset | 2,938 | 2,889 | |||||||||
| Other assets | 2,118 | 2,920 | |||||||||
| Total assets | $ | 448,951 | $ | 589,251 | |||||||
| Liabilities and Stockholders' Equity | |||||||||||
| Current liabilities: | |||||||||||
| Accounts payable and accrued expenses | $ | 46,034 | $ | 64,946 | |||||||
| Accrued compensation and benefits | 28,378 | 47,646 | |||||||||
| Operating lease liabilities | 1,163 | 2,089 | |||||||||
| Earnout liability | — | 4,411 | |||||||||
| Other current liabilities | 2,181 | 1,310 | |||||||||
| Total current liabilities | 77,756 | 120,402 | |||||||||
| Operating lease liabilities | 1,155 | 1,782 | |||||||||
| Deferred tax liabilities | 2,522 | 566 | |||||||||
| Accrued claims | 30,028 | 34,425 | |||||||||
| Uncertain tax positions | 10,427 | 10,117 | |||||||||
| Deferred compensation liability | 2,590 | 2,926 | |||||||||
| Other liabilities | 1,651 | 74 | |||||||||
| Total liabilities | 126,129 | 170,292 | |||||||||
| Commitments and contingencies | |||||||||||
| Stockholders' equity: | |||||||||||
| Common stock | 3 | 3 | |||||||||
| Additional paid-in capital | 201,172 | 202,338 | |||||||||
| Accumulated other comprehensive loss | (1,560) | (1,441) | |||||||||
| Retained earnings | 123,207 | 218,059 | |||||||||
| Total stockholders' equity | 322,822 | 418,959 | |||||||||
| Total liabilities and stockholders' equity | $ | 448,951 | $ | 589,251 | |||||||
8
| Cross Country Healthcare, Inc. | ||||||||||||||||||||||||||||||||||||||
Segment Datak | ||||||||||||||||||||||||||||||||||||||
| (Unaudited, amounts in thousands) | ||||||||||||||||||||||||||||||||||||||
| Three Months Ended | Year-over-Year | Sequential | ||||||||||||||||||||||||||||||||||||
| December 31, | % of | December 31, | % of | September 30, | % of | % change | % change | |||||||||||||||||||||||||||||||
| 2025 | Total | 2024 | Total | 2025 | Total | Fav (Unfav) | Fav (Unfav) | |||||||||||||||||||||||||||||||
| Revenue from services: | ||||||||||||||||||||||||||||||||||||||
| Nurse and Allied Staffing | $ | 194,238 | 82 | % | $ | 256,929 | 83 | % | $ | 201,950 | 81 | % | (24) | % | (4) | % | ||||||||||||||||||||||
| Physician Staffing | 42,523 | 18 | % | 53,011 | 17 | % | 48,102 | 19 | % | (20) | % | (12) | % | |||||||||||||||||||||||||
| $ | 236,761 | 100 | % | $ | 309,940 | 100 | % | $ | 250,052 | 100 | % | (24) | % | (5) | % | |||||||||||||||||||||||
Contribution income:l | ||||||||||||||||||||||||||||||||||||||
| Nurse and Allied Staffing | $ | 12,552 | $ | 20,347 | $ | 14,230 | (38) | % | (12) | % | ||||||||||||||||||||||||||||
| Physician Staffing | 3,310 | 3,549 | 4,320 | (7) | % | (23) | % | |||||||||||||||||||||||||||||||
| 15,862 | 23,896 | 18,550 | (34) | % | (14) | % | ||||||||||||||||||||||||||||||||
Corporate overheadm | 19,485 | 17,249 | 13,656 | (13) | % | (43) | % | |||||||||||||||||||||||||||||||
| Depreciation and amortization | 3,833 | 4,341 | 4,088 | 12 | % | 6 | % | |||||||||||||||||||||||||||||||
Restructuring costsd | 1,327 | 281 | 1,530 | (372) | % | 13 | % | |||||||||||||||||||||||||||||||
Legal and other losses (gains)n | 548 | (928) | 1,102 | (159) | % | 50 | % | |||||||||||||||||||||||||||||||
Impairment chargesg | 77,851 | 2,170 | — | NM | (100.0) | % | ||||||||||||||||||||||||||||||||
Acquisition and integration-related (income) costsc | (15,577) | 4,216 | 4,147 | 469 | % | 476 | % | |||||||||||||||||||||||||||||||
| Loss from operations | $ | (71,605) | $ | (3,433) | $ | (5,973) | NM | NM | ||||||||||||||||||||||||||||||
| Year Ended | Year-over-Year | |||||||||||||||||||||||||||||||||||||
| December 31, | % of | December 31, | % of | % change | ||||||||||||||||||||||||||||||||||
| 2025 | Total | 2024 | Total | Fav (Unfav) | ||||||||||||||||||||||||||||||||||
| Revenue from services: | ||||||||||||||||||||||||||||||||||||||
| Nurse and Allied Staffing | $ | 862,784 | 82 | % | $ | 1,145,419 | 85 | % | (25) | % | ||||||||||||||||||||||||||||
| Physician Staffing | 191,509 | 18 | % | 198,585 | 15 | % | (4) | % | ||||||||||||||||||||||||||||||
| $ | 1,054,293 | 100 | % | $ | 1,344,004 | 100 | % | (22) | % | |||||||||||||||||||||||||||||
Contribution income:l | ||||||||||||||||||||||||||||||||||||||
| Nurse and Allied Staffing | $ | 57,913 | $ | 72,601 | (20) | % | ||||||||||||||||||||||||||||||||
| Physician Staffing | 16,236 | 15,349 | 6 | % | ||||||||||||||||||||||||||||||||||
| 74,149 | 87,950 | (16) | % | |||||||||||||||||||||||||||||||||||
Corporate overheadm | 60,817 | 68,507 | 11 | % | ||||||||||||||||||||||||||||||||||
| Depreciation and amortization | 16,794 | 18,200 | 8 | % | ||||||||||||||||||||||||||||||||||
Restructuring costsd | 3,746 | 4,333 | 14 | % | ||||||||||||||||||||||||||||||||||
Legal and other lossesn | 2,749 | 6,668 | 59 | % | ||||||||||||||||||||||||||||||||||
Impairment chargesg | 77,851 | 2,888 | NM | |||||||||||||||||||||||||||||||||||
Acquisition and integration-related income (costs)c | (3,394) | 4,219 | 180 | % | ||||||||||||||||||||||||||||||||||
| Loss from operations | $ | (84,414) | $ | (16,865) | (401) | % | ||||||||||||||||||||||||||||||||
NM - Not meaningful
9
| Cross Country Healthcare, Inc. | ||||||||||||||||||||||||||||||||||||||
| Summary Condensed Consolidated Statements of Cash Flows | ||||||||||||||||||||||||||||||||||||||
| (Unaudited, amounts in thousands) | ||||||||||||||||||||||||||||||||||||||
| Three Months Ended | Year Ended | |||||||||||||||||||||||||||||||||||||
| December 31, | December 31, | September 30, | December 31, | December 31, | ||||||||||||||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2025 | 2024 | ||||||||||||||||||||||||||||||||||
| Net cash provided by operating activities | $ | 18,239 | $ | 24,234 | $ | 20,114 | $ | 48,251 | $ | 120,116 | ||||||||||||||||||||||||||||
| Net cash used in investing activities | (2,117) | (2,531) | (2,191) | (8,161) | (8,714) | |||||||||||||||||||||||||||||||||
| Net cash used in financing activities | (6,519) | (4,077) | (6) | (13,006) | (46,849) | |||||||||||||||||||||||||||||||||
| Effect of exchange rate changes on cash | 3 | (14) | 22 | 21 | (14) | |||||||||||||||||||||||||||||||||
| Change in cash and cash equivalents | 9,606 | 17,612 | 17,939 | 27,105 | 64,539 | |||||||||||||||||||||||||||||||||
| Cash and cash equivalents at beginning of period | 99,132 | 64,021 | 81,193 | 81,633 | 17,094 | |||||||||||||||||||||||||||||||||
| Cash and cash equivalents at end of period | $ | 108,738 | $ | 81,633 | $ | 99,132 | $ | 108,738 | $ | 81,633 | ||||||||||||||||||||||||||||
| Cross Country Healthcare, Inc. | ||||||||||||||||||||||||||||||||||||||
| Other Financial Data | ||||||||||||||||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||||||||||||||||
| Three Months Ended | Year Ended | |||||||||||||||||||||||||||||||||||||
| December 31, | December 31, | September 30, | December 31, | December 31, | ||||||||||||||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2025 | 2024 | ||||||||||||||||||||||||||||||||||
| Revenue from services | $ | 236,761 | $ | 309,940 | $ | 250,052 | $ | 1,054,293 | $ | 1,344,004 | ||||||||||||||||||||||||||||
| Less: Direct operating expenses | 188,779 | 247,948 | 199,125 | 840,722 | 1,069,752 | |||||||||||||||||||||||||||||||||
| Gross profit | $ | 47,982 | $ | 61,992 | $ | 50,927 | $ | 213,571 | $ | 274,252 | ||||||||||||||||||||||||||||
Consolidated gross profit margino | 20.3 | % | 20.0 | % | 20.4 | % | 20.3 | % | 20.4 | % | ||||||||||||||||||||||||||||
| Nurse and Allied Staffing statistical data: | ||||||||||||||||||||||||||||||||||||||
FTEsp | 6,318 | 7,621 | 6,371 | 6,784 | 8,205 | |||||||||||||||||||||||||||||||||
Average Nurse and Allied Staffing revenue per FTE per dayq | $ | 333 | $ | 363 | $ | 343 | $ | 346 | $ | 378 | ||||||||||||||||||||||||||||
| Physician Staffing statistical data: | ||||||||||||||||||||||||||||||||||||||
Days filledr | 18,599 | 25,427 | 20,695 | 84,213 | 97,888 | |||||||||||||||||||||||||||||||||
Revenue per day filleds | $ | 2,286 | $ | 2,085 | $ | 2,324 | $ | 2,274 | $ | 2,029 | ||||||||||||||||||||||||||||
(a) Adjusted EBITDA, a non-GAAP financial measure, is defined as net income (loss) attributable to common stockholders before interest expense, income tax expense (benefit), depreciation and amortization, acquisition and integration-related (benefits) costs, restructuring (benefits) costs, certain severance costs, legal and other losses, customer bankruptcy loss, impairment charges, gain or loss on derivative, loss on early extinguishment of debt, gain or loss on disposal of fixed assets, gain or loss on lease termination, gain or loss on sale of business, interest income, other expense (income), net, equity compensation, and system conversion costs. Adjusted EBITDA is not and should not be considered a measure of financial performance under GAAP. Management presents Adjusted EBITDA because it believes that Adjusted EBITDA is a useful supplement to net income (loss) attributable to common stockholders as an indicator of operating performance. Management uses Adjusted EBITDA for planning purposes and as one performance measure in its incentive programs for certain members of its management team. Adjusted EBITDA, as defined, closely matches the operating measure as defined by the Company’s credit facilities. Adjusted EBITDA Margin is calculated by dividing Adjusted EBITDA by the Company’s consolidated revenue.
(b) Income tax expense for the three months and year ended December 31, 2025 includes $29.4 million of expense related to the establishment of nonrecurring valuation allowances on the Company’s deferred tax assets.
(c) Acquisition and integration-related (income) costs are related to the Aya Merger, and include the Aya termination fee of $20.0 million paid by Parent to the Company in December 2025 upon Parent’s termination of the Aya Merger Agreement, and associated fees paid by the Company in the fourth quarter of 2024 and throughout 2025.
(d) Restructuring costs were primarily comprised of employee termination costs, lease-related exit costs, and reorganization costs as part of planned cost savings initiatives.
10
(e) Severance costs - executive transition relates to the former Chief Executive Officer's separation from the Company in December 2025 and consists of various severance payments pursuant to the General Release executed December 31, 2025.
(f) Includes legal costs and other settlement charges as presented on the consolidated statements of operations and losses pertaining to matters outside the normal course of operations. The Company incurred a settlement expense of $1.2 million, and recorded a $1.8 million recovery related to a previous loss, in the fourth quarter of 2024, and incurred $19.4 million of credit loss expense, driven by a bankruptcy filing by a single MSP customer, for the year ended December 31, 2024.
(g) Impairment charges for the three months and year ended December 31, 2025 included non-cash goodwill impairment charges related to the Company’s Nurse and Allied and Physician Staffing segments, primarily triggered by the fourth quarter decline in the Company’s equity market capitalization. Impairment charges for the year ended December 31, 2024 primarily related to right-of-use assets and related property in connection with vacated leases during 2024, as well as the write-off of goodwill and intangible assets associated with the impairment of a previous asset acquisition.
(h) System conversion costs include enterprise resource planning system costs related to the upgrading and integrating of our middle and back-office platforms, with certain development costs capitalized and amortized in accordance with the Company’s policies.
(i) Adjusted EPS, a non-GAAP financial measure, is defined as net income (loss) attributable to common stockholders per diluted share before the diluted EPS impact of acquisition and integration-related (benefits) costs, restructuring (benefits) costs, certain severance costs, legal and other losses, customer bankruptcy loss, impairment charges, gain or loss on derivative, loss on early extinguishment of debt, gain or loss on sale of business, system conversion costs, and nonrecurring income tax adjustments. Adjusted EPS is not and should not be considered a measure of financial performance under GAAP. Management presents Adjusted EPS because it believes that Adjusted EPS is a useful supplement to its reported EPS as an indicator of operating performance. Management believes Adjusted EPS provides a more useful comparison of the Company’s underlying business performance from period to period and is more representative of the future earnings capacity of the Company than EPS. Quarterly non-GAAP adjustment may vary due to rounding.
(j) Nonrecurring income tax adjustment for the three months and year ended December 31, 2025 includes $29.4 million of expense related to the establishment of nonrecurring valuation allowances on the Company’s deferred tax assets.
(k) Segment data is provided in accordance with the Segment Reporting Topic of the Financial Accounting Standards Board Accounting Standards Codification.
(l) Contribution income is defined as income (loss) from operations before depreciation and amortization, acquisition and integration-related (benefits) costs, restructuring (benefits) costs, legal and other (gains) losses, impairment charges, and corporate overhead. Contribution income is a financial measure used by management when assessing segment performance.
(m) Corporate overhead includes unallocated executive leadership and other centralized corporate functional support costs such as finance, IT, legal, human resources, and marketing, as well as public company expenses and Company-wide projects (initiatives).
(n) Legal and other losses (gains) include legal costs and other settlement charges as presented on the consolidated statements of operations and losses pertaining to matters outside the normal course of operations.
(o) Gross profit is defined as revenue from services less direct operating expenses. The Company’s gross profit excludes allocated depreciation and amortization expense. Gross profit margin is calculated by dividing gross profit by revenue from services.
(p) FTEs represent the average number of Nurse and Allied Staffing contract personnel on a full-time equivalent basis.
(q) Average revenue per FTE per day is calculated by dividing the Nurse and Allied Staffing revenue, excluding permanent placement, per FTE by the number of days worked in the respective periods.
(r) Days filled is calculated by dividing the total hours invoiced during the period, including an estimate for the impact of accrued revenue, by eight hours.
(s) Revenue per day filled is calculated by dividing revenue as reported by days filled for the period presented.
Cross Country Healthcare, Inc.
William J. Burns, 561-237-2555
Executive Vice President & Chief Financial Officer
wburns@crosscountry.com
Source: Cross Country Healthcare, Inc.
11
FAQ
How did Cross Country Healthcare (CCRN) perform financially in full-year 2025?
Cross Country Healthcare posted weaker 2025 results, with revenue of $1.05 billion, down 22% year-over-year. The company reported a net loss attributable to common stockholders of $94.9 million, or $2.93 per diluted share, reflecting softer demand and significant non-cash charges.
What drove Cross Country Healthcare’s net loss in Q4 2025?
The Q4 2025 net loss of $82.9 million was mainly driven by a $77.9 million non-cash impairment of goodwill and trade names and a $29.6 million valuation allowance on deferred tax assets, following a decline in market capitalization after the Aya merger agreement was terminated.
How did Cross Country Healthcare’s adjusted EBITDA and margins change in 2025?
Adjusted EBITDA fell to $26.8 million in 2025 from $49.1 million in 2024, while adjusted EBITDA margin declined from 3.7% to 2.5%. These changes indicate compressed profitability despite ongoing cost actions and technology-focused initiatives such as the Intellify platform.
What were the 2025 revenue trends for Cross Country Healthcare’s main segments?
In 2025, Nurse and Allied Staffing revenue declined to $862.8 million, down 25% year-over-year, while Physician Staffing revenue slipped to $191.5 million, down 4%. Both segments experienced lower volumes, with reduced field contract personnel and fewer physician days filled.
What guidance did Cross Country Healthcare provide for Q1 2026?
For Q1 2026, management expects revenue between $235 million and $240 million, implying an 18%–20% year-over-year decline. Adjusted EBITDA is projected at $4.0 million to $5.0 million, with adjusted EPS ranging from a loss of $0.06 to a loss of $0.04.
What is Cross Country Healthcare’s balance sheet position at December 31, 2025?
As of December 31, 2025, Cross Country Healthcare held $108.7 million in cash and cash equivalents and had no debt outstanding. Total assets were $448.9 million, and total stockholders’ equity was $322.8 million, providing financial flexibility despite weaker earnings.
How is the Aya merger termination reflected in Cross Country Healthcare’s 2025 results?
The company received a $20.0 million termination fee in Q4 2025, recorded within operating cash flows. However, the Aya merger termination also contributed to a decline in equity market capitalization, triggering a $77.9 million goodwill and trade name impairment charge.
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Cross Country Healthcare Announces CEO Transition