AMN Healthcare — Third Quarter 2026 Earnings Summary

Financial Performance

• Consolidated revenue for Q3 2026 was $717.3 million, a 13% increase year-over-year and 7% increase sequentially; Year-to-Date (YTD) revenue was $2,768.9 million, a 40% increase year-over-year.
• Gross profit was $229.1 million for Q3 2026 (24% increase year-over-year) and $803.8 million YTD (39% increase year-over-year).
• Consolidated gross margin was 31.9% in Q3 2026, up 280 basis points year-over-year and 130 basis points sequentially.
• Net income was $33.4 million for Q3 2026 (4.7% of revenue) compared to $29.3 million in Q3 2025; YTD net income was $116.7 million.
• GAAP diluted EPS was $0.83 for Q3 2026 (9% increase year-over-year) and $2.93 YTD; Adjusted diluted EPS was $1.16 for Q3 2026 (199% increase year-over-year) and $4.01 YTD (252% increase year-over-year).
• Adjusted EBITDA was $93.6 million for Q3 2026 (63% increase year-over-year) with a margin of 13.0%, up 390 basis points year-over-year; YTD Adjusted EBITDA was $333.1 million (85% increase year-over-year).
• SG&A expenses were $149.3 million (20.8% of revenue) in Q3 2026, compared to $138.6 million (21.8% of revenue) in Q3 2025.
• Operating income was $50.5 million with an operating margin of 7.0% in Q3 2026, compared to $47.6 million and 7.5% respectively in Q3 2025.
• Cash and cash equivalents totaled $256 million at September 30, 2026; cash flow from operations was $(88) million for the quarter and $285 million YTD.
• Capital expenditures were $10 million in Q3 2026; the Company repurchased 250,685 shares for $8.4 million at an average price of $33.50.
• Total debt outstanding was $750 million with no amounts drawn on the revolving credit facility; the leverage ratio was 1.3x.

Guidance and Future Outlook

• Q4 2026 consolidated revenue is guided to be $655–$670 million, representing a 10–12% decrease year-over-year.
• Q4 2026 gross margin is guided to be 25.7%–26.2%; SG&A as a percentage of revenue is guided to be 21.2%–21.7%.
• Q4 2026 operating margin is guided to be (0.1%)–0.5%; Adjusted EBITDA margin is guided to be 5.8%–6.3%.
• Q4 2026 labor disruption revenue is estimated at $5 million, down from $124 million in Q4 2025.
• Nurse and Allied Solutions segment revenue for Q4 2026 is expected to be down 13–15% year-over-year, or up 13–15% excluding labor disruption.
• Physician and Leadership Solutions segment revenue for Q4 2026 is expected to be down 5–7% year-over-year.
• Technology and Workforce Solutions segment revenue for Q4 2026 is projected to be down 8–10% year-over-year.
• Q4 2026 estimates include depreciation of $12.5 million, depreciation in cost of revenue of $2.5 million, amortization expense of $15.5 million, share-based compensation of $6 million, integration and other expenses of $2 million, and interest expense of $8.5 million.

Business Segments and Product Lines

• Nurse and Allied Solutions segment revenue was $460 million, up 27% year-over-year and 9% sequentially; Travel nurse staffing revenue was up 19% year-over-year, and Allied division revenue was up 11% year-over-year.
• Labor disruption contributed $59 million to Nurse and Allied Solutions revenue in Q3 2026, compared to $25 million in the prior quarter and $12 million in the year-ago quarter.
• Physician and Leadership Solutions segment revenue was $171 million, down 4% year-over-year and up 4% sequentially.
• Locum tenens revenue within Physician and Leadership Solutions was $138 million, down 5% year-over-year and up 6% sequentially.
• Search revenue within Physician and Leadership Solutions increased 15% year-over-year but was down 9% sequentially.
• Technology and Workforce Solutions segment revenue was $86 million, down 9% year-over-year and 1% sequentially.
• Language services revenue was $69 million, down 8% year-over-year and 1% sequentially.
• Vendor management systems revenue was $15 million, down 11% year-over-year and flat sequentially.

Market and Competitive Landscape

• Demand for travel nursing and allied services strengthened further in Q3 2026, driving double-digit volume growth over the prior year.
• Healthcare organizations are increasingly seeking better visibility and strategic management of their total workforce, aligning with AMN's strategy of combining talent engagement, client relationships, operational expertise, and technology-enabled solutions.
• The Company reported faster recruiting, automation, and around-the-clock execution as key drivers of delivery for clients.

Risks and Challenges

• Future results depend on client efficiency in staffing management, hospital utilization of temporary professionals, and the duration of labor market or economic conditions.
• Risks include the magnitude and duration of future pandemics or health crises, the ability to recruit and retain healthcare professionals at reasonable costs, and pricing impacts from the labor market or healthcare delivery consolidation.
• Potential negative impacts from economic downturns, inflation, or slow recoveries include reduced demand, client cost-containment initiatives, pricing pressures, and impaired ability of clients to make timely payments.
• Risks also include cybersecurity incidents, regulatory compliance costs, and the ability to successfully integrate acquisitions.

Management Commentary and Tone

• Cary Grace, President and CEO, stated the team is encouraged by continued growth in nursing and allied staffing, noting demand strengthened through October.
• Management highlighted progress on improvements in other segments and emphasized that their strategy is well-timed with marketplace demands for total workforce management.
• The tone was positive regarding the third quarter's performance, noting that revenue and earnings exceeded guidance.

Other Key Points

• The quarter's financial results were driven by core nurse and allied businesses and a release of labor disruption reserves from prior events.
• The sequentially lower cash balance and negative operating cash flow in Q3 2026 resulted from refunding the majority of client deposits related to previous labor disruption events.
• The Company hosted a conference call on November 5, 2026, to discuss results and outlook.
• Non-GAAP measures including Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Net Income, and Adjusted Diluted EPS are provided alongside GAAP measures.