Cross Country Healthcare (CCRN) Q4 2025 earnings summary

Executive summary

• 2025 was a challenging year due to merger-related uncertainty and market headwinds, resulting in revenue and profitability declines, but momentum has improved with a renewed focus on execution, technology-driven solutions, and cost reductions.

• Entering 2026 with no debt and over $109 million in cash, the company is prioritizing market share expansion, operational efficiency, and technology leverage.

• Investments in revenue producers and proprietary technology platforms are expected to drive sequential growth and improved profitability throughout 2026.

• Q4 net loss attributable to common stockholders was $82.9 million, driven by a $77.9 million goodwill and trade name impairment and a $29.6 million deferred tax asset valuation allowance.

• Continued positive cash flow from operations; $18.2 million in Q4 and $48.3 million for the year.

Financial highlights

• Q4 2025 revenue was $237 million, down 5% sequentially and 24% year-over-year; full-year revenue was $1.05 billion, down 22%.

• Q4 gross profit was $48 million (gross margin 20.3%), stable year-over-year; SG&A was $51 million, up 9% sequentially but down 8% year-over-year.

• Adjusted EBITDA was $4.1 million for Q4 (1.7% margin), and $26.8 million for the full year (2.5% margin), both down significantly year-over-year.

• Non-cash impairment charges of $78 million were recorded due to merger termination and share price decline.

• Ended Q4 with $109 million in cash and no debt; generated $18 million in Q4 operating cash flow and $48 million for the year.

Outlook and guidance

• Q1 2026 revenue guidance: $235–$240 million, driven by organic growth and some labor disruption revenue, down 20–18% year-over-year, flat sequentially.

• Q1 Adjusted EBITDA expected between $4–$5 million (margin ~2%); Adjusted EPS loss of $0.04–$0.06.

• Targeting Q4 2026 revenue above $250 million and Adjusted EBITDA margin of 4–5%, with a run rate above $1 billion in revenue by year-end.

• Sequential revenue and profit improvement expected throughout 2026, with year-over-year growth anticipated by Q3 or Q4.