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1. Company Snapshot

1.a. Company Description

AMN Healthcare Services, Inc.provides healthcare workforce solutions and staffing services to hospitals and healthcare facilities in the United States.It operates through three segments: Nurse and Allied Solutions, Physician and Leadership Solutions, and Technology and Workforce Solutions.


The Nurse and Allied Solutions segment offers travel nurse staffing, rapid response nurse staffing and labor disruption, allied staffing, local staffing, and revenue cycle solutions.The Physician and Leadership Solutions segment provides locum tenens staffing, healthcare interim leadership staffing, executive search, and physician permanent placement solutions.The Technology and Workforce Solutions segment offers language services, vendor management systems, workforce optimization, telehealth, credentialing, and outsourced solutions.


The company also provides allied health professionals, such as physical therapists, respiratory therapists, occupational therapists, medical and radiology technologists, lab technicians, speech pathologists, rehabilitation assistants, and pharmacists.It offers its services under the brands, including American Mobile, Nursefinders, NurseChoice, HealthSource Global Staffing, Onward Healthcare, O'Grady Peyton International, Med Travelers, Club Staffing, Staff Care, B.E. Smith, and Merritt Hawkins, as well as AMN Revenue Cycle Solutions and AMN Language Services.The company was founded in 1985 and is based in Dallas, Texas.

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1.b. Last Insights on AMN

AMN Healthcare Services, Inc.'s recent performance was negatively impacted by declining margins and year-over-year declines across key segments. Despite beating earnings and revenue estimates, the company's adjusted EBITDA decreased to $58 million, and its GAAP income was $0.76 per share. The company's quarterly revenue was $634 million, with an adjusted EPS of $0.39. A $400 million offering of senior unsecured notes due 2031 was announced, with an interest rate of 6.500% per annum. Investor sentiment was also affected by Allspring Global Investments Holdings LLC's 52.9% stake cut in the second quarter.

1.c. Company Highlights

2. AMN Healthcare's Q3 2025 Earnings: A Resilient Performance Amidst a Challenging Landscape

AMN Healthcare reported a robust third-quarter 2025 performance, with revenue reaching $634 million, surpassing the high end of guidance by $9 million. The company's adjusted EBITDA was $57.5 million, or 9.1% of revenue, 90 basis points above the high end of guidance. Earnings per share (EPS) came in at $0.39, significantly beating estimates of $0.19. The company's consolidated gross margin was near the upper end of guidance, while SG&A expenses were better than expected.

Publication Date: Nov -18

📋 Highlights
  • Outperformed Revenue Guidance:: Q3 revenue hit $634M, surpassing the high-end guidance by $9M, with adjusted EBITDA at $57.5M (9.1% of revenue), exceeding guidance by 90 bps.
  • Staffing Demand Recovery:: Travel Nurse winter orders rose slightly YoY, with demand up 50% from May lows, though permanent hiring in healthcare fell notably.
  • Q4 Revenue Outlook:: Midpoint guidance of $720M includes $100M from Labor Disruption, with Nurse/Allied revenue projected at low-single-digit growth YoY (excluding Labor Disruption, -6% to -8%).
  • Margin Stabilization:: Gross margins declined due to mix shifts but expected to stabilize in 2026 with International Nurse revenue growth (20+%) and VMS recovery.
  • Strong Financial Position:: Revolving credit line reduced to $0 from $210M YoY, with $57.5M debt refinancing in October improving liquidity and credit ratings.

Operational Highlights

The company witnessed a moderate recovery in staffing demand during the third quarter, driven by rebounding extension rates and Travel Nurse winter orders that were slightly favorable compared to the prior year. However, permanent hiring activity in the healthcare sector declined notably. The spread between Travel Nurse bill rates and fully loaded permanent nurse compensation is at a historical low, making contingent recruiting an attractive strategy for employers.

Guidance and Outlook

AMN Healthcare's consolidated outlook for the fourth quarter calls for revenue of around $720 million at the midpoint, with $100 million in Labor Disruption revenue. The company expects Nurse and Allied revenue to be up low single digits year-over-year, or down 6% to 8% excluding Labor Disruption. Physician and Leadership Solutions revenue is projected to be down sequentially by approximately 6%, due to seasonally lower Locum's volume.

Margin Pressures and Expectations

Gross margins have declined due to an unfavorable revenue mix shift and competitive pressures. However, the company expects Staffing gross margins to stabilize as Nurse and Allied demand moves from stability to growth. As the CFO mentioned, "Improvement in international staffing revenue and other high-margin services is expected to lift consolidated gross margin in 2026." The company is also seeing some movement in bill rates, which could have a strong impact on margins.

Valuation and Growth Prospects

With a P/E Ratio of -2.23 and an EV/EBITDA of -10.39, the market seems to have factored in the challenges faced by the company. Analysts estimate next year's revenue growth at -5.5%. However, the company's focus on filling orders directly, particularly through MSPs and their own VMS platform, and its efforts to improve bill rates and margins, could potentially drive growth. The company's Free Cash Flow Yield of 36.49% is also an attractive metric, indicating a strong ability to generate cash.

Business Trends and Opportunities

The company is seeing sequential volume growth, driven by both winter orders and underlying improvement in demand. In Travel Nurse, demand is up 50% from its low point in May, although still slightly off year-over-year. The company expects more favorable revenue mix in 2026, with International Nurse revenue expected to increase over 20%, a higher-margin business. The Labor Disruption business had a strong year, with a healthy pipeline of strikes expected in the next 12 months.

3. NewsRoom

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AMN Healthcare Services Inc (NYSE:AMN) Receives Consensus Recommendation of “Hold” from Analysts

Dec -01

Source: defenseworld.net

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AMN Stock Gains Following Q3 Earnings & Revenue Beat, Margins Down

Nov -07

Source: zacks.com

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AMN Healthcare Services, Inc. (AMN) Q3 2025 Earnings Call Transcript

Nov -07

Source: seekingalpha.com

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Compared to Estimates, AMN Healthcare (AMN) Q3 Earnings: A Look at Key Metrics

Nov -07

Source: zacks.com

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AMN Healthcare Services (AMN) Beats Q3 Earnings and Revenue Estimates

Nov -07

Source: zacks.com

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AMN Healthcare Announces Third Quarter 2025 Results

Nov -06

Source: globenewswire.com

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Yousif Capital Management LLC Grows Stock Holdings in AMN Healthcare Services Inc $AMN

Oct -24

Source: defenseworld.net

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Allspring Global Investments Holdings LLC Has $646,000 Holdings in AMN Healthcare Services Inc $AMN

Oct -24

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (10.54%)

6. Segments

Nurse and Allied Solutions

Expected Growth: 10.3%

Growing demand for healthcare services, aging population, and shortage of skilled nurses drive the growth of nurse and allied solutions. Increasing need for temporary and permanent staffing solutions in healthcare facilities also contributes to the segment's growth.

Physician and Leadership Solutions

Expected Growth: 10.2%

Growing demand for temporary physician staffing and leadership development services, driven by physician shortages, aging population, and increasing healthcare costs, will fuel growth in this segment.

Technology and Workforce Solutions

Expected Growth: 12.3%

Growing demand for healthcare staffing and workforce management solutions, driven by an aging population, nurse shortages, and the need for cost-effective solutions, will fuel the growth of Technology and Workforce Solutions from AMN Healthcare Services, Inc.

7. Detailed Products

Nurse Staffing

Provides temporary nursing staff to healthcare facilities to fill staffing gaps

Allied Healthcare Staffing

Offers temporary staffing solutions for allied health professionals such as radiologic technologists, respiratory therapists, and occupational therapists

Locum Tenens Staffing

Provides temporary physician staffing solutions to healthcare facilities

Interim Leadership Staffing

Offers temporary leadership staffing solutions for healthcare facilities, including interim CEOs, CFOs, and CNOs

Permanent Placement Services

Provides permanent placement services for healthcare professionals, including nurses, physicians, and allied health professionals

VMS (Vendor Management System)

Offers a vendor management system to manage contingent labor and services procurement

RPO (Recruitment Process Outsourcing)

Provides recruitment process outsourcing services to healthcare organizations

8. AMN Healthcare Services, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes is low for AMN Healthcare Services, Inc. as the company provides specialized healthcare staffing services that are difficult to replicate.

Bargaining Power Of Customers

The bargaining power of customers is medium for AMN Healthcare Services, Inc. as the company has a diverse customer base, but some customers may have significant negotiating power.

Bargaining Power Of Suppliers

The bargaining power of suppliers is low for AMN Healthcare Services, Inc. as the company has a diverse supplier base and is not heavily dependent on a single supplier.

Threat Of New Entrants

The threat of new entrants is high for AMN Healthcare Services, Inc. as the company operates in a highly competitive industry with low barriers to entry.

Intensity Of Rivalry

The intensity of rivalry is high for AMN Healthcare Services, Inc. as the company operates in a highly competitive industry with many established players.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 61.23%
Debt Cost 4.91%
Equity Weight 38.77%
Equity Cost 5.06%
WACC 4.97%
Leverage 157.92%

11. Quality Control: AMN Healthcare Services, Inc. passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Healthcare Services Group

A-Score: 4.8/10

Value: 4.0

Growth: 2.9

Quality: 5.8

Yield: 2.0

Momentum: 9.5

Volatility: 4.7

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U.S. Physical Therapy

A-Score: 4.7/10

Value: 3.2

Growth: 3.3

Quality: 4.9

Yield: 4.0

Momentum: 6.0

Volatility: 6.7

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Pennant

A-Score: 3.8/10

Value: 3.1

Growth: 8.2

Quality: 3.9

Yield: 0.0

Momentum: 2.0

Volatility: 5.3

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AirSculpt Technologies

A-Score: 3.7/10

Value: 4.6

Growth: 4.8

Quality: 2.5

Yield: 1.0

Momentum: 8.0

Volatility: 1.3

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AMN Healthcare Services

A-Score: 3.4/10

Value: 9.2

Growth: 4.7

Quality: 3.0

Yield: 0.0

Momentum: 0.0

Volatility: 3.7

1-Year Total Return ->

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The Joint

A-Score: 3.2/10

Value: 3.3

Growth: 3.3

Quality: 4.9

Yield: 0.0

Momentum: 3.5

Volatility: 4.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

16.26$

Current Price

16.26$

Potential

-0.00%

Expected Cash-Flows