Cross Country Healthcare (CCRN) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue was $315.1 million, down 29% year-over-year and 7% sequentially, mainly due to declines in Nurse and Allied Staffing, while Homecare and Physician Staffing grew.

• Net income attributable to common stockholders was $2.6 million, down from $12.8 million in Q3 2023.

• Adjusted EBITDA was $10.3 million (3.3% margin), with adjusted EPS of $0.12 at the high end of guidance.

• Diversification into home care, physician staffing, and education now represents about 30% of total revenue, up from 10% at the end of 2021.

• Technology investments, notably the Intellify platform, are driving operational efficiencies and client retention.

Financial highlights

• Q3 consolidated revenue was $315.1 million, down 29% year-over-year and 7% sequentially.

• Gross profit was $64 million, with a gross margin of 20.4%, down 40 bps sequentially and 160 bps year-over-year.

• Adjusted EBITDA was $10.3 million (3.3% margin); adjusted EPS was $0.12.

• SG&A expense was $54 million, down 10% sequentially and 22% year-over-year.

• Ended Q3 with $64 million in cash and no debt.

Outlook and guidance

• Q4 2024 revenue guidance is $300–$310 million, reflecting a 25–28% year-over-year decline and a 2–5% sequential decline.

• Adjusted EBITDA expected at $11–$13 million (approx. 4% margin); adjusted EPS guidance is $0.10–$0.14.

• Gross margin guidance for Q4 is 21%.

• Company aims for high single-digit adjusted EBITDA margin long-term, but expects mid-single digits near term.

• Guidance excludes impacts from future M&A, debt changes, or significant share repurchases.