Overview of AMN Healthcare’s Financial Performance

AMN Healthcare Services, Inc. is a leading provider of healthcare workforce solutions and staffing services in the United States. The company operates three main business segments: nurse and allied solutions, physician and leadership solutions, and technology and workforce solutions.

In 2025, AMN Healthcare reported revenue of $2,730.4 million, down 8% from $2,983.8 million in 2024. The company recorded a net loss of $95.7 million in 2025, compared to a net loss of $147.0 million in 2024. The nurse and allied solutions segment accounted for 60% of total revenue in 2025, the physician and leadership solutions segment made up 26%, and the technology and workforce solutions segment contributed 14%.

Revenue and Profit Trends

AMN Healthcare’s revenue declined across all three of its business segments in 2025 compared to the prior year. The nurse and allied solutions segment saw a 9% decrease in revenue, the physician and leadership solutions segment declined 4%, and the technology and workforce solutions segment dropped 12%.

The decrease in revenue was primarily driven by lower demand and volume in the company’s core staffing businesses. In the nurse and allied solutions segment, the average number of travelers on assignment declined 14%, the average bill rate decreased 2%, and average billable hours fell 1%. The physician and leadership solutions segment experienced an 8% drop in days filled for its locum tenens business, though revenue per day filled increased 8%. The technology and workforce solutions segment saw lower utilization and client losses in its VMS and outsourced solutions businesses.

Despite the revenue declines, AMN Healthcare was able to improve its bottom line performance in 2025. The company recorded a net loss of $95.7 million, compared to a net loss of $147.0 million in 2024. This improvement was driven by a $108.0 million decrease in cost of revenue, a $39.4 million gain on the sale of a disposal group, and lower interest expense and impairment charges.

Strengths and Weaknesses

One of AMN Healthcare’s key strengths is its diversified business model across three major segments. This provides the company with multiple avenues for growth and helps mitigate risk. The nurse and allied solutions segment, which makes up the majority of revenue, has historically been a strong performer for the company.

Additionally, AMN Healthcare has been investing in technology and innovative workforce solutions beyond its traditional staffing services. This includes offerings such as managed services programs, vendor management systems, and recruitment process outsourcing. These higher-margin, recurring revenue streams provide the company with more strategic and sustainable sources of income.

However, AMN Healthcare has faced some challenges in recent years. The company has had to contend with compression in clinician pay packages, including housing, travel and allowances, which has put pressure on gross margins, particularly in the nurse and allied solutions and physician and leadership solutions segments.

The company has also been impacted by pricing pressure in its language services business due to increased market competition, as well as a shift in sales mix away from its higher-margin VMS business. Additionally, AMN Healthcare has had to record significant goodwill impairment charges related to its physician and leadership solutions segment.

Outlook and Future Prospects

Looking ahead, AMN Healthcare’s management remains focused on several key strategic initiatives to drive future growth and profitability:

1. Market Penetration: The company continues to invest in broadening and expanding its service and technology offerings beyond traditional staffing, with a focus on more strategic and recurring revenue sources.

2. Operational Efficiency: AMN Healthcare is investing in digitizing and optimizing its internal processes and systems to achieve market-leading efficiency and scalability, which it believes will provide operating leverage as revenue grows.

3. Healthcare Professional Supply: The company is investing in new candidate recruitment and engagement initiatives and technologies to retain and grow its network of qualified healthcare professionals.

4. Acquisitions: AMN Healthcare has demonstrated a willingness to pursue strategic acquisitions that complement its core capabilities and expand its service offerings, as evidenced by the 2023 acquisition of MSDR.

While the healthcare staffing industry has faced some headwinds in recent years, AMN Healthcare’s diversified business model, technology-enabled solutions, and focus on operational excellence position the company well for the future. However, the company will need to continue navigating challenges such as pricing pressure, labor shortages, and potential macroeconomic uncertainties. Investors will be closely watching AMN Healthcare’s ability to execute on its strategic initiatives and deliver improved financial performance in the years ahead.