AMN Healthcare Services, Inc. Q1 FY2026 earnings call

• The first quarter was defined by large labor disruption activities, and AMN successfully supported several large events, validating investments in technology capabilities and mission-driven teams.
• Nurse and Allied Solutions had strong performance with travel nurse revenue up 13% year-over-year, allied up 3%, and international growth. Physician and Leadership Solutions had locum tenens volume down but search business growth. Technology and Workforce Solutions rolled out new AI-driven tools and saw Passport users up over 30% year-over-year.

For the first quarter, AMN delivered revenue of $1.38 billion. Gross margin was 26.8%. Adjusted EBITDA was $166 million, or 12.1% of revenue. Nurse and Allied Solutions first quarter revenue was $1.13 billion, second highest in company history. Physician and Leadership Solutions first quarter revenue was $164 million, down 6% year-over-year. Technology and Workforce Solutions revenue was $87 million, down 15% year-over-year. International staffing business grew revenue by 17% quarter over quarter and 7% year over year. Leadership search business returned to year-over-year revenue growth.

Consolidated revenue expected in Q2 range of $620 to $635 million. Gross margin expected 28 to 28.5%. Reported SG&A projected to be approximately 23% to 23.5% of revenue. Operating margin expected minus 0.6% to plus 0.1%, and adjusted EBITDA margin 6.7% to 7.2%. Nurse and Allied Solutions expected flat to down 2% year over year in Q2. Physician and Leadership Solutions expected down approximately 6% to 8% year-over-year in Q2. Technology and Workforce Solutions expected down approximately 14% to 16% year-over-year in Q2.

Q: Conversations with major hospital operators on contract labor today?

A: Clients focus on cost management and total talent solutions.

Q: Difference between rapid response and labor disruption revenues?

A: Rapid response are shorter duration, higher pay, impact volume and revenue.

Q: Competitive landscape?

A: Industry consolidation expected, with tech enablement favoring skilled players.

Q: Underlying market dynamics for key segments?

A: Nurse and allied have healthy demand, locums demand weaker but initiatives underway.

Q: Net leverage and remainder of year?

A: Leverage ratio expected at two times or less through remainder of year.

Q: Gross margin bridge for Q2?

A: Some one-time items in Q1, Q2 guidance midpoint 28.2% with some embedded labor disruption revenue.

Q: Visa retrogressions impact on international business?

A: High year-over-year growth expected, but no significant acceleration in embassy process assumed.

Q: Client focus on temp staffing and bill rates?

A: Clients focus on total labor cost and flexibility, bill rates increase when positions not filled.

Q: Language services margin and pricing?

A: Margin improved from service model changes, pricing starting to stabilize.