Cross Country Healthcare Announces Fourth Quarter and Full Year 2025 Financial Results

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.

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."

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.

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.

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.

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," "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.

William J. Burns, 561-237-2555

Executive Vice President & Chief Financial Officer

wburns@crosscountry.com