AMN Healthcare Services’ third quarter was marked by a positive market reaction, reflecting stronger-than-expected results despite a year-on-year revenue decline. Management attributed the quarter’s outcome to a moderate recovery in staffing demand, improved extension rates, and higher-than-expected labor disruption activity—especially in Nurse and Allied Solutions. CEO Caroline Grace highlighted that “extension rates rebounded, and Travel Nurse winter orders came in slightly favorable to prior year,” while permanent hiring activity in the healthcare sector contracted. The company also benefited from stable bill rates and operational execution that mitigated some of the softness in underlying sales volumes.
Is now the time to buy AMN? Find out in our full research report (it’s free for active Edge members).
AMN Healthcare Services (AMN) Q3 CY2025 Highlights:
- Revenue: $634.5 million vs analyst estimates of $618 million (7.7% year-on-year decline, 2.7% beat)
- Adjusted EPS: $0.39 vs analyst estimates of $0.20 (95.2% beat)
- Adjusted EBITDA: $57.51 million vs analyst estimates of $48.86 million (9.1% margin, 17.7% beat)
- Revenue Guidance for Q4 CY2025 is $722.5 million at the midpoint, above analyst estimates of $620.6 million
- Operating Margin: 7.5%, up from 3.2% in the same quarter last year
- Sales Volumes fell 10.6% year on year (-23.5% in the same quarter last year)
- Market Capitalization: $637.3 million
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From AMN Healthcare Services’s Q3 Earnings Call
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Trevor Romeo (William Blair) asked for clarity on gross margin drivers in Q4, to which CFO Brian Scott explained that the mix of lower-margin labor disruption revenue and seasonal declines in higher-margin segments would result in a sequential margin step-down even after normalizing for these effects.
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Kevin Fischbeck (Bank of America) questioned the outlook for gross margins in 2026, with CEO Caroline Grace highlighting expected improvements from international nurse placements and the easing of VMS headwinds, as well as renewed growth in leadership and search businesses.
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Tobey Sommer (Truist) asked about the impact of federal funding cuts on contingent labor demand, and Grace responded that clients are increasingly recognizing the affordability and flexibility of contingent staffing, especially as permanent hiring slows.
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Mark Marcon (Robert W. Baird) inquired about trends in rural hospital demand and the influence of Medicaid cuts, with Grace noting that international nurse placements remain a cost-effective solution for rural systems, but no major shifts in rural demand were observed.
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Constantine Davides (Citizens) sought more detail on MSP-driven locum tenens growth, and Grace described targeted technology and sales initiatives that have doubled fill rates for these managed service provider clients over the past year.
Catalysts in Upcoming Quarters
In future quarters, the StockStory team will be monitoring (1) the sustainability and scale of labor disruption revenue as a source of upside, (2) improvements in bill rate trends and contingent staffing demand beyond typical winter seasonality, and (3) margin recovery as the company shifts to higher-value international and technology-enabled services. Trends in healthcare workforce management and further client adoption of total talent solutions will also be key factors to watch.
AMN Healthcare Services currently trades at $17.00, down from $18.42 just before the earnings. At this price, is it a buy or sell? The answer lies in our full research report (it’s free for active Edge members).
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