Cross Country Healthcare (CCRN) investor relations material

Executive summary

• Q1 2026 revenue was $241.1 million, down 17.8% year-over-year but up 2% sequentially, driven by volume declines in Nurse and Allied Staffing and Physician Staffing, partially offset by 15.8% growth in Cross Country Community Care.

• Net loss attributable to common stockholders was $4.3 million, compared to a $0.5 million loss last year and $82.9 million loss last quarter.

• Adjusted EBITDA was $3.9 million (1.6% margin), down from $8.6 million (2.9%) last year and $4.1 million (1.7%) last quarter.

• A merger agreement was signed on May 6, 2026, to be acquired by KL Criss Cross Intermediate, LLC (Knox Lane), with each share to be converted into $13.25 in cash upon closing.

• Positive cash flow from operations of $4.8 million; ended quarter with $105.6 million in cash and no debt.

Financial highlights

• Direct operating expenses decreased 17.6% to $193.5 million, in line with revenue declines; as a percentage of revenue, these expenses rose slightly to 80.3%.

• Selling, general and administrative expenses fell 12.7% to $45.8 million, but increased as a percentage of revenue to 19.0%.

• Gross profit margin was 19.7%, down 30 bps year-over-year and 60 bps sequentially.

• Net cash provided by operating activities was $4.8 million, down from $5.7 million in the prior year.

• 657,653 shares were repurchased for $5.8 million during the quarter; $28.1 million remains authorized for repurchase.

Outlook and guidance

• Management expects to meet future cash needs through a combination of cash on hand, operating cash flows, and available credit.

• The merger is subject to customary closing conditions, including shareholder and regulatory approvals, and is not subject to a financing condition.

• Awaiting closing of pending merger transaction with Knox Lane, expected in Q3 2026.

• Focus remains on disciplined execution and advancing technology initiatives.