Cross Country Healthcare, Inc. Q4 FY2025 earnings call

• 2025 was challenging due to pending merger, but now has improved momentum. • Priorities are to expand market share in large health systems, capture new logos, improve operational efficiency, and leverage technology. • Healthcare staffing market stabilized and poised for growth in 2026. • Growing book of business with $400 million in contract value renewed, expanded, and won. • Intellify, market-leading workforce intelligence platform, to expand into home-based and education staffing markets. • Software portfolio includes experienced mobile platform. • Made investments in revenue producers, already seeing positive results. • High-performing team in US and India

Nurse and Allied reported revenue for the quarter of $194 million, down 4% sequentially and 24% from the prior year. Travel, the largest business within Nurse and Allied, was down 9% sequentially and 30% from the prior year. Local or per diem business closed the year with $19 million in revenue, down 8% sequentially. Education staffing business reported revenue of $18 million, up 48% sequentially but down 7% year-over-year. Home-based staffing business had revenue of $34 million in the fourth quarter, up 34% over the prior year. Physician staffing reported $43 million in revenue, down 20% from the prior year and 12% sequentially

• Guiding to revenue of between $235 and $240 million for first quarter 2026. • Adjusted EBITDA range of between $4 and $5 million, approximately 2% margin. • Expect payroll tax to negatively impact first quarter by approximately $2 million. • Adjusted earnings per share expected to be a loss of between 4 and 6 cents. • Anticipate revenue and profit to improve throughout 2026, exit year with fourth quarter revenue above $250 million and adjusted EBITDA margin of between 4% and 5%.

Q: Follow up on exiting 2026 at revenue run rate north of $1 billion and 4%-5% margins.

A: Kevin is confident due to large pipeline, market-leading technology, strong balance sheet, and being trusted brand. Bill mentions investments in revenue producers already showing return.

Q: On M&A and acquisition strategy.

A: Disciplined capital allocation, looking at investing in technology platform, growing client footprint, creative tuck-in acquisitions in home-based staffing and locums areas.

Q: On technology, Intellify expansion.

A: Intellify to expand into other markets in 2026, already licensed to other companies, part of continuum of care strategy.

Q: On strike activity and labor disruption.

A: Labor disruption revenue in first quarter is single millions, not material. Prepared for future events.

Q: On sequential momentum into 2Q.

A: Seeing sequential momentum, invested in revenue producers with positive results, direct and MSP orders up quarter over quarter, bill rates stabilized.

Q: On Center of Excellence in India.

A: Over 700-800 employees there, handling various functions, contributing to cost savings and automation.

Q: On AI strategy and application.

A: Infusing AI across enterprise, leveraging in delivery, recruitment, locums credentialing, etc.

Q: On size of home and education businesses.

A: Home-based staffing run rate north of $140M annualized, education run rate at about $75M annualized.

Q: On international pipeline.

A: Partner with others, but area of opportunity for downstream investment.