On March 5, 2025, Cross Country Healthcare Inc (CCRN, Financial) released its 8-K filing detailing the financial results for the fourth quarter and full year ending December 31, 2024. The company, a provider of total talent management services in the healthcare sector, reported a quarterly revenue of $309.9 million, exceeding the analyst estimate of $306.10 million. However, the company posted a net loss per share of $0.12, falling short of the estimated earnings per share (EPS) of $0.12.
Company Overview
Cross Country Healthcare Inc is a leading provider of workforce solutions and advisory services, specializing in strategic workforce solutions, contingent staffing, permanent placement, and consultative services for healthcare customers. The company operates primarily in two segments: Nurse and Allied Staffing, which generates the majority of its revenue, and Physician Staffing. The company primarily earns its revenue from the United States.
Performance and Challenges
Cross Country Healthcare Inc faced significant challenges in 2024, with a 25% year-over-year decline in fourth-quarter revenue and a 33% decrease for the full year. The gross profit margin also contracted by 190 basis points year-over-year to 20.0% in Q4. The company reported a net loss attributable to common stockholders of $3.8 million for the quarter, compared to a net income of $9.0 million in the same period last year. These challenges highlight the competitive and dynamic nature of the healthcare staffing market.
Financial Achievements
Despite the challenges, Cross Country Healthcare Inc achieved several financial milestones. The company reported strong cash flows from operations, amounting to $24.2 million for the fourth quarter, a 101% increase from the previous year. Additionally, the company maintained a robust balance sheet with $82 million in cash and no debt as of December 31, 2024. These achievements are crucial for sustaining operations and investing in future growth opportunities in the healthcare providers and services industry.
Key Financial Metrics
The company's adjusted EBITDA for Q4 was $9.3 million, representing 3.0% of revenue, down from $20.6 million or 5.0% of revenue in the prior year. Adjusted EPS was $0.04, compared to $0.29 in the previous year. These metrics are important as they provide insights into the company's operational efficiency and profitability, excluding non-recurring items.
“Our fourth quarter top line performance was driven by continued strength in our non-travel businesses such as Physician Staffing, Education, and Homecare,” said John A. Martins, President and Chief Executive Officer of Cross Country Healthcare.
Segment Performance
The Nurse and Allied Staffing segment reported a revenue of $256.9 million, a 30% decrease year-over-year. In contrast, the Physician Staffing segment saw a 13% increase in revenue to $53.0 million. The contrasting performance between segments underscores the varying demand dynamics within the healthcare staffing industry.
Cash Flow and Balance Sheet
For the year ended December 31, 2024, Cross Country Healthcare Inc generated $120.1 million in net cash from operating activities, although this was a decline from $248.5 million in the prior year. The company repurchased over 2.4 million shares of common stock for $36.8 million in 2024, reflecting a commitment to returning value to shareholders.
| Metric | Q4 2024 | Q4 2023 | Q3 2024 |
|---|---|---|---|
| Revenue | $309.9 million | $414.0 million | $315.1 million |
| Net Loss | $(3.8) million | $9.0 million | $2.6 million |
| Adjusted EBITDA | $9.3 million | $20.6 million | $10.3 million |
Analysis
Cross Country Healthcare Inc's performance in 2024 reflects the challenges faced by the healthcare staffing industry, including fluctuating demand and competitive pressures. While the company exceeded revenue expectations, the decline in profitability and net income highlights the need for strategic adjustments to enhance operational efficiency and capitalize on growth opportunities. The company's strong cash position and lack of debt provide a solid foundation for navigating future challenges and pursuing strategic initiatives.
Explore the complete 8-K earnings release (here) from Cross Country Healthcare Inc for further details.
