Cross Country Healthcare Q4 Revenue Down 23.6%, EPS -$0.06; Guides $235M-$240M Q1 Revenue
Cross Country Healthcare's Q4 revenue fell 23.6% YOY to $236.8M, missing estimates by 6.1%, and adjusted EPS was a loss of $0.06 versus $0.04 a year earlier. Management guided Q1 revenue of $235M–$240M and adjusted EBITDA of $4M–$5M, aiming to exceed a $1B run rate with 4–5% margin by end-2026.
1. Q4 Financial Results
Cross Country Healthcare reported Q4 revenue of $236.8 million, down 23.6% year over year and 6.1% below analyst forecasts, and recorded an adjusted loss of $0.06 per share versus a $0.04 profit a year earlier. GAAP net loss was $82.9 million, or $2.56 per share, which included a $78 million non-cash impairment tied to the terminated merger.
2. Q1 Guidance and Targets
The company forecasts Q1 revenue of $235 million to $240 million and adjusted EBITDA of $4 million to $5 million, reflecting management’s expectation of stable bill rates and improving travel staffing demand. Leadership aims to exit 2026 with a revenue run rate above $1 billion and a 4–5% adjusted EBITDA margin, supported by share repurchases and a debt-free balance sheet with $109 million cash.
3. Segment Performance and Outlook
Travel staffing revenue declined 30% year over year and 9% sequentially due to fewer Travelers On Assignment, though average bill rates remained stable and weekly production has risen since January. Physician staffing revenue fell 20% YOY to $42.5 million but saw a 10% rise in revenue per day filled, home-based staffing grew 34% YOY to $34 million, and education staffing rebounded to $18 million as schools resumed.