Q1 2025 AMN Healthcare Services Inc Earnings Call

Operator: Good day, and thank you for standing by.

Good day, and thank you for standing by and welcome to the a M and health care first quarter 'twenty 25 earnings call.

Operator: Welcome to the AMN Healthcare First Quarter 2025 Earnings Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 11 on your telephone. You'll then hear an automated message advising that your hand is raised. To withdraw your question, please press star 11 again.

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Randle Reece: I would now like to hand the conference over to your first speaker today, Randle Reece, Vice President of Investor Relations. Good afternoon, everyone. Welcome to AMN Healthcare's first quarter 2025 earnings call.

Speaker Change: I would now like you can the conference over to your first speaker today, Randle, Reece, but president of Investor Relations.

Speaker Change: Good afternoon, everyone.

Speaker Change: Welcome to <unk> Healthcare's first quarter 2025 earnings call.

Randle Reece: A replay of this webcast will be available at ir.amnhealthcare.com at the conclusion of this call. Remarks we make during this call about future expectations, projections, trends, plans, events, or circumstances constitute forward-looking statements. These statements reflect the company's current beliefs based upon information currently available to it. Our actual results may differ materially from those indicated by these forward-looking statements. Because of various factors and cautionary statements, including those identified in our most recently filed forms 10-K and 10-Q, our earnings released in subsequent filings with the SEC. The company does not intend to update guidance or any forward-looking statements provided today prior to its next earnings release.

Speaker Change: A replay of this webcast will be available at IR Dot Aam's health care Dot com.

Speaker Change: At the conclusion of this call.

Speaker Change: Remarks, we make during this call about future expectations projections trends plans events or circumstances constitute forward looking statements.

Speaker Change: Statements reflect the company's current beliefs based upon information currently available to it.

Speaker Change: Our actual results may differ materially from those indicated by these forward looking statements because.

Speaker Change: Because of various factors and cautionary statements, including those identified in our most recently filed forms 10-K and 10-Q are.

Speaker Change: and Tim Q. Our earnings released in subsequent filings would be SEC.

Speaker Change: The company does not intend to update guidance or any forward-looking statements provided today prior to its next earnings release.

Randle Reece: This call contains certain non-GAAP financial information.

This call contains certain non-GAAP financial information.

Randle Reece: Information regarding and reconciliations of these non-GAP measures to the most directly comparable GAP measures are included in our earnings release and on our financial reports page at ir.amnhealthcare.com.

Speaker Change: Information regarding and reconciliation of these non-GAAP measures to the most directly comparable GAAP measures are included in our earnings release and on our financial reports page at ir.amnhealthcare.com

Carrie Grace: On the call with me today are Kerry Grace, President and Chief Executive Officer, and Brian Scott, Chief Financial and Operating Officer. I will now turn the call over to Carrie. Thank you, Randy, and welcome to our first quarter conference. The AMN team showed off its energy and resourcefulness in the first and the results for revenue and profit margins that exceeded the high end. Revenue of $690 million topped the high end of guidance by $10 million due to strength in our labor disruption, locum tenens, and allied... Our other businesses on balance were in line with our revenue.

Speaker Change: On the call with me today are Carrie Grace, President and Chief Executive Officer and Brian Scott, Chief Financial and Operating Officer. I will now turn the call over to Carrie.

Carrie Grace: Thank you, Randy, and welcome to our first quarter conference call.

Carrie Grace: The AMN team showed off its energy and resourcefulness in the first quarter and the results for revenue and profit margins that exceeded the high end of guidance.

Carrie Grace: Revenue of 690 million topped the high end of guidance by 10 million due to strength in our labor disruption, local tenants and allied businesses.

Carrie Grace: Our other businesses on balance were in line with our revenue forecast.

Carrie Grace: The company reported $64 million in adjusted EBITDA and another quarter of robust cash flow in debt. Thank you to our healthcare professionals and the entire AMN for delivering a solid start. For the second quarter, our Outlook for Revenue and Earnings compares well against consensus estimates, with continued upsides from labor- Locum Tenens, and Allied Staffing Revenue. We received $39 million in revenue from two labor disruption events in the first quarter, with continued activity in the second quarter. Increasingly, labor disruption has become a differentiated solution. that supports an important client. We have built the leading event management technology and strengthened our ability to manage labor disruption.

Carrie Grace: The company reported $64 million in adjusted EBITDA and another quarter of robust cash flow and debt reduction.

Carrie Grace: Thank you to our healthcare professionals and the entire AMN team for delivering a solid start to the year.

Carrie Grace: For the second quarter, our outlook for revenue and earnings compares well against consensus estimates with continued upside from labor destruction, local tenants, and allied staffing revenue.

Carrie Grace: We received 39 million in revenue from two labor disruption events in the first quarter with continued activity in the second quarter.

Carrie Grace: Increasingly, Labor Disruption has become a differentiated solution that supports an important client needs.

Carrie Grace: We have built the leading event management technology and strengthened our ability to manage labor disruption activities without interrupting the strong service quality in our core business.

Carrie Grace: without interrupting the strong service quality in our core. These differentiating capabilities have been greeted by a series of client wins and a large pipeline of opportunities which could offer upside potential this year and beyond. Bookings for locum tenens picked up significantly in the first four months of the year. We expect locum tenens to have sequential revenue growth this quarter, with good momentum going into the rest of the year. Demand for Ally Business has grown mid-teens year over year. We continue to see healthy allied demands into this quarter and strong execution from our In our schools business, bookings for the next school year are trending towards year-over-year growth, driven by strength in orders and candidate...

Carrie Grace: These differentiating capabilities have been greeted by a series of client wins and a large pipeline of opportunities which could offer upside potential this year and next.

Carrie Grace: Wilkins for Locom Tenants picked up significantly in the first four months of the year. We expect Locom Tenants to have sequential revenue growth this quarter, with good momentum going into the rest of the year.

Carrie Grace: Demand for Ally Business has grown mid-teen year-over-year. We continue to see healthy Ally demands into this quarter and strong execution from our team.

Carrie Grace: In our school's business, hoping for the next school year are trending towards year-to-year growth driven by strengths and orders and candidate submissions.

Carrie Grace: For our travel nurse business, revenue, volume, and bill rate were in line with our projections for the first quarter. Our second quarter revenue outlook for travel nurse calls for relatively normal seasonality and we continue to see both intense competition to fill or and some orders priced at levels that no one We made strides year-to-date in stabilizing gross margins, which came down across our industry. consolidated growth margin was 28.7% in the first slightly better than the high end of Guy. nurse and allied solutions growth margin of 22.7% with 90 basis points better than Our gross margin performance benefited from some processes.

Carrie Grace: Thank you for watching. We appreciate it. We'll see you next time.

Carrie Grace: For our Travel Nurse Business, revenue volume and bill rate were in line with our projections for the first quarter.

Carrie Grace: Our second-quarter revenue outlook for travel nurse calls for relatively normal seasonality and we continue to see both intense competition to fill orders and some orders price at levels that no one is filling.

Carrie Grace: We made strides here today in stabilizing growth margins which came down across our industry last year.

Consolidated Growth Margem with 28.7% in the first quarter.

slightly better than the high end of guidance.

Carrie Grace: Nurse and Alley Solution gross margin of 22.7% was 90 basis points better than consensus.

[inaudible]

Carrie Grace: Our growth margin performance benefited from some process changes that have enabled improved internal execution, and we just wrote out new technology that enhances recruiter productivity and faster speed to submission.

Carrie Grace: that have enabled improved internal. And we just rolled out new technology that enhances recruiter productivity and faster speed. We continue to invest in technology that improves our speed and fill rate. Including AI tools that reduce costs and improve how we deliver. Our market-leading app for healthcare professionals, AMN... has now been rolled out to local. The app has potential for valuable improvements to our physician engagement and Passport gives locum physicians the ability to submit their shift work in the app, which we expect to greatly speed the submission. reduce errors, and improve physician satisfaction. We will continue to make enhancements to pathways.

Thank you. Thank you.

Carrie Grace: We continue to invest in technology that improves our speed and fill rate, including AI tools that reduce cost and improve how we deliver our services.

Carrie Grace: Our Market Leading Act for Healthcare Professionals AMN Passports has now been rolled out to

Carrie Grace: The app has potential for valuable improvements to our position engagement and support.

Carrie Grace: Task Court gives local positions the ability to submit their shifts or any app, which we expect to greatly speed the submission process, reduce errors and improve position satisfaction.

Carrie Grace: to expand its capabilities and extend into other AMN AMN also is gaining momentum in enterprise. The company signed five new MSP and vendor neutral wins last year. Reflecting improvement in our And we are seeing strong while the selling environment remains highly competitive. We are seeing interest in solutions that combine technology and service. to help clients build and. a high-quality and cost-effective We will complete the rollout of ShiftWise Flex to our client base. This powerful and versatile technology is a cornerstone of our new work-wise staffing management, engagement, and optimization. WorkWise has drawn a positive reception. from new and.

AMN also is gaining momentum in enterprise sales

Carrie Grace: The company signed five new MSP and vendor neutral winds last quarter, reflecting improvement in our win rate, and we are seeing strong client retention rates.

Carrie Grace: While the selling environment remains highly competitive, we are seeing interests and solutions that combine technology and services to help clients build and sustain a high-quality and cost-effective workforce.

Carrie Grace: We will complete the roll-out of shift-wise flex to our client days next month.

Carrie Grace: This powerful versatile technology is a cornerstone of our new work-wise staffing management, engagement and optimization platform.

Carrie Grace: Workwise has drawn a positive reception from new and existing clients.

Carrie Grace: Workwise is another example of how our diverse set of solutions is positioned. This diversification also has allowed AMN to maintain operating and Generate Cash Flow to Invest in the Business. while also reducing... We are pleased to receive industry recognition for innovation. that measurably improves the quality and efficiency of Modern Healthcare Recognized Work-Wise and AMN. in its 2025 innovation. AMN is the only talent solutions company to make this year's list of 15 innovative healthcare. Congratulations to the AMN. from those who develop and deploy our technology. to everyone who has integrated these market-leading tools into our to the benefit of healthcare.

Thank you for watching. See you next time.

Carrie Grace: Workwise is another example of how our diverse set of solutions is positioned to serve clients and healthcare professionals across the spectrum of care.

Carrie Grace: This diversification also has allowed AMN to maintain operating leverage that is superior to our competitors and generate cash flow to invest in the business while also reducing

Carrie Grace: We are pleased to receive industry recognition for innovation that measurably improves the quality and efficiency of care.

Carrie Grace: Modern Healthcare Recognize Workwise and AMN Taskforce in its 2025 Innovators Awards.

Carrie Grace: AMN is the only talent solutions company to make this year's list of 15 innovative healthcare organizations.

Speaker Change: Congratulations to the AMN team from those who develop and deploy our technology to everyone who has integrated these market leading tools into our solutions to the benefit of healthcare

Carrie Grace: In the first quarter, the company generated $93 million in operating cash. enabling us to reduce our revolving credit balance by $60 million and add $45 million cash to our balance. We do not control all the factors that will determine the trajectory of our business. after our solid start. Demand has not recovered to pre-pandemic levels in several of our and the ongoing low demand in nurse staffing also affects our VMI. Cost Consciousness Among Hospitals and Health. is not a new. We continue to be focused on winning new clients. and Improving Our Fill Rates in Direct and Vendor New across our business.

Speaker Change: In the first quarter, the company generated 93 million in operating cash flow, enabling us to reduce our revolving credit balance by $60 million and add $45 million cash to our balance sheet.

Speaker Change: We do not control all the factors that will determine the trajectory of our businesses after our solid start to the year.

Speaker Change: Demand has not recovered to pre-pandemic levels in several of our businesses, such as travel nurse, interim leadership, and service, and the ongoing low demand in nurse staffing also affects our VMS revenue.

Speaker Change: Cost-consciousness among hospitals and health systems is not a new condition

Speaker Change: We continue to be focused on winning new clients, expanding our relationships with current clients, and improving our fill rates in direct and vendor-neutral channels.

Carrie Grace: Competitors continue to grapple for while serving a universe of cost-conscious clients. We are seeing heightened competition in language services. where industry consolidation has resulted in some large rivals and price competition has On the other hand, we have already seen some clients who chose other vendors, but due to quality issues, returned. We hold a distinct advantage in our high-quality, cost-competitive After two years of extraordinary growth, slower growth in Spanish language volume may indicate some impact from the current political and regulatory. our sales activity and language services. and revenue growth could improve later in 2020. as new.

Speaker Change: Across our businesses, competitors continue to grapple for position while serving a universe of cost, hundreds of clients and GPO's.

Speaker Change: We are seeing heightened competition and language services where industry consolidation has resulted in some large rival and price competition has intensified.

Speaker Change: On the other hand, we have already seen some clients who chose other vendors, but due to quality issues returned to AMN.

Speaker Change: We hold a distinct advantage in our high-quality cost competitive solutions.

Speaker Change: After two years of extraordinary growth, slower growth in Spanish language volume may indicate some impact from the current political and regulatory environment.

Speaker Change: Our sales activity in language services is healthy, and revenue growth could improve later in 2025 as new wins win.

Carrie Grace: across the spectrum of care from preventative to urgent. acute and post-traumatic stress disorder. We see clients with varying degrees of exposure to changes in tariff and federal healthcare providers continue to be laser focused on cost. and the sustainability of their work. amid continued growth in patient. We have improved the ability of AMN to help clients find and implement the best solutions for optimizing labor-versus-quality supply. I am confident that our focus... Diversify. and High Quality Services. will be increasingly valuable. Healthcare Demand Grows Fast.

Speaker Change: Across the spectrum of care, from preventative to urgent, acute and post-acute, we see clients with varying degrees of exposure to changes in tariffs and federal health care policies.

Health care providers continue to be laser focused on cost containment.

Speaker Change: and the sustainability of their workforce, amid continued growth in patient volumes.

Speaker Change: We have improved the ability of AMN to help clients find and implement the best solutions for optimizing labor versus quality, supply and cost.

Speaker Change: I am confident that our focus expertise diversifies solutions and high quality service delivery will be increasingly valuable in the future as healthcare demand grows faster than supply.

Brian Scott: Now, I'll turn the call over to Brian for the details of our latest results.

Brian Scott: Now, I'll turn the call over to Brian for the details of our latest results and outlook.

Brian Scott: Thank you, Carrie, and good afternoon, everyone. First quarter consolidated revenue was $690 million, above the high end of guidance driven primarily from better than expected performance in labor disruption, locos, and allies. Revenue was down 16% from the prior year and down 6% consolidated gross margin for the first quarter was 28.7%. Ten basis points above the high end of our guidance. Year-over-year, gross margin decreased 270 basis. while sequentially gross margin was down 100. Consolidated SG&A expenses were $148 million compared with $175 million in the prior year and $159 million in the previous year. Adjusted SG&A, which excludes certain expenses, was $136 million in the first.

Brian Scott: Thank you, Karen. Good afternoon, everyone. First quarter, consolidated revenue with $690 million. Above the high end of guidance driven primarily from better than expected performance and labor disruption, low-tones and allies. Revenue was down 16% in the prior year and down 6% sequentially.

Brian Scott: Consolidate gross margins for the first quarter was 28.7%, 10 basis points above the high end of our guidance range

Brian Scott: Year over year, gross margin decreased 270 base points, while sequentially gross margin was down 110 base points.

Brian Scott: Consolidated SG&A expenses were 148 million compared to the 125 million in the prior year and 159 million in the previous quarter.

Brian Scott: Adjusted SGNA, which excludes certain expenses, was 136 million in the first quarter, or 19.7% of revenue, compared with 162 million or 19.7% of revenue in the prior year, and 145 million or 19.8% of revenue in the previous quarter.

Brian Scott: for 19.7% of revenue. compared with 162 million or 19.7% of revenue in the prior year. and $145 million or 19.8% of revenue. The year-over-year SG&A decline was primarily due to lower employee headcount and variable compensation. along with reduced consulting and bad The sequential decrease was mainly a result of lower compensation expense and favorable bonus and related accrual. First quarter nurse and allied revenue was $413,000. down 20% from the prior year, primarily from lower volume and rates, partially offset by increased labor disruption. sequentially, segment revenue is down 9%. mainly driven by lower labor disruption revenue, a modest volume decline, and too few.

Brian Scott: The year-to-year estuinated client was primarily due to lower employee headcount and variable compensation along with reduced consulting and bad debt expenses [inaudible]

Brian Scott: The sequential decrease was mainly a result of lower competition expense and favorable bonus and related to cruel adjustments.

Brian Scott: First Board of Nurse and Allied Revenue was $413 million, down 20% from the prior year, primarily from lower volume and rate, partially offset by increased labor destruction revenue.

Brian Scott: Equentially, segment revenue is down 9%, mainly driven by a lower labor destruction revenue, a modest volume decline, and two fewer days.

Brian Scott: Year over year, segment volume decreased 22%. Average rate was down 5% and Average Hours of Work was down one. Sequentially, volume was down 2% and the average rate and hours worked were both 1% higher. Travelers revenue in the first quarter was $215 million. a decrease of 36% from the prior period and 6% from the prior. Alleged revenue in the quarter was $147 million, down 13% year-over-year, and $1.5 million. Nurse and ally gross margin in the first quarter was 22.7%. A decrease of 240 bases point to year-over-year mainly driven by higher housing and forging and re- Sequentially, gross margin was down 110 basis points due mainly to favorable sales adjustments recorded in the prior.

Thank you for tuning in. We'll see you next time.

Brian Scott: Year by year, segment volume decreased 22%, average rate was down 5%, and average hour's work was down 1%.

Brian Scott: Sequentially, volume was down 2% and the average rate and hours work were both 1% higher.

. . . . .

Brian Scott: Problemers revenue in the first quarter was 215 million, a decrease of 36% in the prior period and 6% in the prior quarter.

Brian Scott: Alive Revenue in the quarter with 147 million, down 13% year by year and 1% sequentially.

Brian Scott: Nurse and Allegro's margin in the first quarter was 22.7%, a decrease of 240 basis point to your your mainly driven by higher housing and for dam reimbursement.

Brian Scott: Sequentially gross margin with down 110 basis points to manage a favorable sales adjustment recorded in a prior quarter.

Brian Scott: Segment operating margin of 7.8% decreased 250 basis points year-over-year and 80 basis points. serving in large part from the Lower Gresham. Moving to Physician and Leadership Solutions segment, first quarter revenue was $174 million, decreasing 8% year over year, driven by lower volume across all businesses, partially offset by bill rate growth and low. Sequentially, revenue increased 1% on growth and loss. Locum Tenens revenue in the quarter was $141 million, down 3% year-over-year and up 3% Interim leadership revenue of $24 million decreased 21% from the prior year period and 9% Search revenue of $9 million was down 29% year-over-year in April.

Brian Scott: Seven operating margin of 7.8% decreased 250 basis points a year every year, and 80 basis points sequentially, driven in large part from the lower gross margin.

Brian Scott: Moving to Physician and Leadership Solutions segment, first quarter revenue was $174 million, decreasing 8% year-rear, driven by a lower volume across all businesses, partially offset that bill rate growth in Logan.

Coincidentally, Revenue increased 1% on growth in lowlands.

Brian Scott: Locom-10 is revenue in the quarter with 141 million, down 3% year-to-year and up 3% sequentially.

Brian Scott: Interim Leadership Revenue of 24 million decreased 21% from the prior year period and 9% sequentially.

Brian Scott: Search revenue of 9 million was down 29% year-over-year and 8% sequentially.

Brian Scott: Gross margin for the Physician and Leadership Solutions segment was 27.3%. down 430 basis points year-over-year attributable to a lower bill pay spread in local tenants and an unfavorable revenue mix. Sequentially, gross margin decreased to 120 basis points mainly due to an unfavorable revenue mix and lower margin in the interim. Segment Operating Margin was 8.3%, which decreased 350 basis points year over year, primarily due to the lower gross margin and deleveraging of SG&A. Partially offset by lower bad Sequentially, operating margins decreased to 150 basis points driven by the lower... Technology and Workforce Solutions revenue for the first quarter was $102 million.

Brian Scott: Gross Marger for the Physician and Leadership Solution Segment was 27.3 percent

Brian Scott: Down 430 basis points year-by-year, attributable to a lower bill-based bread and milk and tenons, and an unfavorable revenue

Brian Scott: sequentially gross margin decrease to 120 basis points mainly due to an unfavorable revenue mix and lower margin in the interim business

Brian Scott: Stegman Operating Margin was 8.3%, which decreased 350 basis points year-by-year, primarily due to the lower-grace margin and de-lovering of estrogen expenses.

Partially offset by a little bad day expense. [inaudible]

Brian Scott: Equentially, operating margin decreased 150 basis points driven by the lower-grace margin.

Brian Scott: Technology and workforce solutions revenue for the first quarter was 102 million. Down 9% year of a year as growth in language services was more than offset by decreases in BMS and outsourced

Brian Scott: down 9% year-over-year as growth in language services was more than offset by decreases in BMS and outsourced services.

Brian Scott: Sequentially, revenue is down... Language Services Revenue for the quarter was $75 million, an increase of 5% year-over-year and down 2% VMS revenue in the quarter was $19 million, a decrease of 33% year-over-year, and $14 Segment gross margin was 55.5%. down 440 basis points from the prior period, primarily due to the lower revenue mix from VMS and out... Sequentially, gross margin declined 180 basis points, mainly driven by decline in language services and an unfavorable revenue mix. Segment operating margin in the first quarter was 34.5%. a decrease of 480 basis points in the prior year period, driven primarily by lower gross.

Equally Revenue is Down 4%

Brian Scott: Language Services Revenue to the Court was $75 million, an increase of 5% year-over-year, and down 2% sequentially.

Brian Scott: The MS revenue in the quarter was 19 million, a decrease of 33% year-over-year and 14% sequentially.

Segment gross margin was 55.5%.

Brian Scott: Down 440 basis points from a prior period, primarily due to lower revenue mix from BMS and outdoor solutions.

Brian Scott: Sequential gross margin declined 180 basis points, mainly driven by decline in language services and an unfavorable revenue makeshift

Brian Scott: Second operating margin in the first quarter was 34.5%, a decrease of 480 basis points in the prior year periods given primarily by a lower gross margin.

Brian Scott: Sequentially, the operating margin declined by 320 basis points on a lower gross margin and to higher corporate expenses. First quarter consolidated adjusted EBITDA was $64 million, down 34% year-over-year and 15% The adjusted EBITDA margin for the quarter was 9.3%. down 260 basis points in the prior year period and 90 base points sequentially, driven by the lower gross margin. First quarter net loss was $1 million. This compared with net income of $17 million in the prior year period and a net loss of $188 million in the prior quarter, which included a $222 million goodwill imperative. First quarter gap diluted loss per share was Adjusted earnings per share for the quarter was $0.45 compared with $0.97 in the prior year period and $0.75 in the prior quarter.

Brian Scott: Sequentially, the operating margins decline by 320 basis points on a low-grace margin and a higher corporate expense allocation.

Brian Scott: First quarter consolidated adjusted EBW's $54 million, down 34% year-over-year, and 15% sequentially.

Brian Scott: Adjusted to the margin for the quarter was 9.3%, down 260 basis points for the prior period and 90 basis points sequentially driven by the lower gross margin.

First quarter net loss was 1 million. [inaudible]

Brian Scott: Day sales outstanding for the quarter is 55 days. which was nine days lower than a year ago and flat. Operating cash flow in the first quarter was $93 million, and capital expenditures were As of March 31st, we had cash in equivalence of $56 million and debt of $1 billion. including $150 million on our revolver. During the quarter, we reduced our revolver balance by $60 million. And we will continue to use free cash flow to reduce the balance. into the corridor with a net leverage ratio of 3.1 times.

Brian Scott: As of March 31, we had cash equivalents of $56 million and debt of 1 billion, including a $150 million on our revolver.

Brian Scott: During the quarter, we reduced our revolver balance by $60 million and we will continue to use free cash flow to reduce the balance.

Brian Scott: We ended the quarter with a net leverage ratio of three one times to one.

Brian Scott: Moving to second quarter guidance, we project consolidated revenue to be in a range of $645 to $660 million. down 11% to 13% from the prior year. This guidance includes an assumption of 16 million of labor disruption. Gross margin is projected to be between 28.5 and 29. Reported SG&A expenses are projected to be 23.2 to 23.7% of revenue. Operating margin is expected to be minus 0.7 to zero percent. and adjusted EBITDA margin is expected to be 7.8 to 8.2%.

Brian Scott: Moving to second quarter guidance, we project consolidated revenue to be in a range of 645% to $660 million down 11% to 13% from the prior year period.

Brian Scott: This guidance includes an assumption of $16 million of labor disruption revenue.

Brian Scott: Gross margin is projected to be between 28, 5% and 29%.

Brian Scott: Reported SG&A expenses are projected to be 23, 2% to 23, 7% of revenue.

Brian Scott: Operating margin is expected to be minus 720%.

Brian Scott: And adjusted EBITDA margin is expected to be seven eight to eight 3%.

Brian Scott: Additional second quarter guidance details can be found in today's earnings report.

Brian Scott: Additional second quarter guidance details can be found in today's earnings release.

Carrie Grace: Now let's go back to Kerry for some closing remarks. Thank you, Brian.

Carrie Grace: Now, let's go back to Carrie for some closing remarks.

Carrie Grace: This week is National Nurses Week. and May is National Nurses Month. The theme of Nurses Week this year is the Power of Nursing. And we are extremely grateful for the profound difference that nurses make in the health of all Americans. I encourage everyone to share our appreciation for nurses everywhere, including the thousands of nurses who are part of the AMN.

Speaker Change: Thank you Brian This week is national nurses week and May is national nurses month Athene.

Speaker Change: The theme of nurses week. This year is the power of nurses and we are extremely grateful for the profound difference that nurses make in the health of all Americans.

Speaker Change: I encourage everyone to share our appreciation for nurses everywhere, including the thousands of nurses, who are part of the <unk> family.

Carrie Grace: Our 2025 RN survey showed that 8 in 10 nurses want to see improvement at their workplace in three areas. Patients and Earthquakes. an administrative We at AMN are continually working on innovative and flexible talent. to support nurses' physical and mental well-being and improvement of work-life balance to combat burnout. Our business depends on the quality of people we bring to serve this steadily growing demand of providing. So far in 2025, we have been thrilled to welcome top talent from across the industry. on to the AMN. These superb professionals have joined us in client facing and key leadership.

Speaker Change: Our 2025 are in survey showed that eight intend nurses want to see improvement at their workplace in three areas.

Speaker Change: Patients <unk> ratio flexible scheduling and administrative burden.

Speaker Change: We and Amgen are continually working on innovative and flexible talent solutions to support nurses, physical and mental well being and improvement of work life balance to combat burnout.

Speaker Change: Our business depends on the quality of people, we bring to serve the steadily growing demand of providing health care.

Speaker Change: So far in 2025, we have been thrilled to welcome top talent from across the industry onto the <unk> team.

Speaker Change: These superb professionals have joined us and client facing in key leadership positions.

Carrie Grace: Our dedication to quality and innovation is making AMN a prime destination for the best people in the world.

Speaker Change: Our dedication to quality and innovation is making Amazon a prime destination for the best people in the business.

Carrie Grace: In further demonstration of our dedication to the highest quality, AMN again has received certification from the Joint Commission on the Accreditation of Healthcare Organizations. AMN was the first healthcare staffing company to receive this. and we have continuously maintained.

Speaker Change: And further demonstration of our dedication to the highest quality <unk> again has received certification from the joint Commission on the accreditation of health care organizations.

Speaker Change: <unk> was the first health care staffing company to receive this certification and we have continuously maintained it since 2005.

Carrie Grace: Before we move to questions...

Speaker Change: Before we move to questions I want to take a moment to acknowledge the recent passing of IR healthcare's founder and long time CEO Alan Raymond.

Carrie Grace: I want to take a moment to acknowledge the recent passing of AYA Healthcare's founder and long-time CEO, Alan Brown. On behalf of AMN Healthcare, we extend our deepest condolences to Allen's family, friends, and the entire AYA team during this Allen dedicated himself to growing the healthcare staffing and he leaves a laugh.

Speaker Change: On behalf of <unk> healthcare, we extend our deepest condolences to Allen family friends and the entire IR team during this difficult time.

Speaker Change: Alan dedicated himself to growing the health care staffing industry and he leaves a lasting legacy.

Operator: Operator, please open the call. Thank you.

Speaker Change: Operator, please open the call for questions.

Operator: At this time, we will conduct the question and answer session. As a reminder, to ask a question, you will need to press star 11 on your phone and wait for your name to be announced. To withdraw your question, please press star 11 again. Please stand by while we compile the Q&A roster.

Speaker Change: Thank you.

Speaker Change: At this time, we will connect will conduct a question and answer session.

Speaker Change: As a reminder to ask a question you will need to press star one on your phone and wait for your name to be announced.

Speaker Change: To withdraw your question. Please press star one again.

Speaker Change: Please standby, while we compile the Q&A roster.

Mark Marcon: Our first question is for Mark Marcon from Baird. Your line is open. So good afternoon, and thanks for taking my questions. And Kerry, that was a nice thing for you to say. Obviously, I don't know the family or what, but obviously, condolences. That's tragic and puts things in perspective.

Speaker Change: Our first question is from Mark Marcon from Baird.

Speaker Change: Your line is open.

Speaker Change: So good afternoon and thanks for.

Speaker Change: For taking my questions.

Speaker Change: Sure that was a nice thing for you to say, obviously, I don't know sustainably or Brian but.

Speaker Change: Obviously condolences such tragic puts things in perspective.

Carrie Grace: Can you talk a little bit about the VMS wins that you had and the MSP wins that you had? It sounds like you've got five. How big are they? Are they new to using an MSP or VMS? or were they competitive wins? Any sort of color there would be appreciated.

Speaker Change: Can you talk a little bit about.

Speaker Change: The CMS wins.

Speaker Change: You had the MSP wins that you had it sounds like you've got five.

Speaker Change: How big are they.

Speaker Change: Are they new to using an MSP or Vms.

Speaker Change: Or were they competitive wage any sort of color there would be appreciated.

Carrie Grace: Yeah, a couple of things. One is, I think, as you think about just the wins overall, they're reflective of a very intentional strategy we've had to accelerate our go-to-market, particularly to broaden our positioning across the entirety of the market where we had been MSP-centric for some period of time. And so, Mark, a lot of the wins that we are seeing now are manifestations of strategies we put into place over a year ago, just given some of the lead For those wins, I'd characterize them as small to medium wins, but the names underneath them carry even more weight in a couple of cases than what their spend under management would indicate, and they were competitive.

Speaker Change: Yeah.

Speaker Change: All of things one is I think as you think about just the wins overall they are reflective of a very intentional strategy. We've had to accelerate our go to market, particularly to brought in our positioning across the entirety of the market, where we had been MSP.

Speaker Change: Centric for some period of time.

Speaker Change: And so mark a lot of the wins that we are seeing now are manifestation of the strategies, we put into place over a year ago, just given some of the lead time for those wins I'd characterize them as small to medium wins.

Speaker Change: But the names underneath them are have carry even more weight in a couple of cases than what their spend under management would indicate.

Speaker Change: And they were competitive wins.

Carrie Grace: A broader comment that I'll say about what we're seeing, we've seen pipeline, healthy pipeline growth in our sales pipeline from Q4 to Q1. We have been seeing for, I'd say, probably two years coming out of the pandemic, a bias in the pipeline towards vendor neutral. We are just starting to see some swing back. So we're still seeing strong interest in vendor neutral, but we're seeing some swing back and growth in our pipeline in MSM.

Speaker Change: A broader comment that I'll say about what we're seeing.

Speaker Change: Pipeline healthy pipeline growth in our sales pipeline from Q4 to Q1.

Speaker Change: We had been seeing for I'd say, probably two years coming out of the pandemic a bias in the pipeline toward vendor neutral. We are just starting to see some swing back. So we're still seeing strong interest in vendor neutral, but we're seeing some swing back and growth in our pipeline.

Speaker Change: P.

Carrie Grace: That's great. Do you have a size in terms of, you said they were small to medium, but when we consolidate them all, like what sort of revenue contribution could they ultimately end up generating once they... If you look at year to date, we're in a net client when And so think of it as that would help us from a net revenue standpoint as we go later into the year.

Speaker Change: Great.

Speaker Change: Do you have a size in terms of you said they were small to medium, but when we consolidate the mall like what what sort of revenue contribution could they ultimately end up.

Speaker Change: January one.

Speaker Change: Steve.

Speaker Change: If you look at year to date, we're in a net client win positions and so think of it as that that would help us from a net revenue standpoint.

Speaker Change: As we go later into the year.

Carrie Grace: And then, can you talk a little bit more about, you know, language services and some of the, you know, some of the dynamics there? You know, we haven't historically, it's been a growing space with with really healthy margins. And just wondering about like what you're seeing from a competitive perspective and how you would expect that to unfold, you know, over the quarter and the year ahead. So, in language services overall, we continue to see healthy growth. You will see that in the second quarter and we expect that to continue as we go through the year.

Speaker Change: Okay, Great and then can you talk a little bit more about.

Speaker Change: Language services and some of the.

Speaker Change: <unk>.

Speaker Change: Some of the dynamics there.

Speaker Change: We haven't historically, that's been a growing space with really healthy margins.

Speaker Change: And just wondering about like what youre seeing from a competitive perspective, and how you would expect that to unfold.

Speaker Change: Over the quarter and the year ahead.

Speaker Change: Yeah.

Speaker Change: In language services overall, we continue to see healthy growth.

Speaker Change: You will see that in the second quarter and we expect that to continue as we go through the year from a competitive standpoint, we have seen particularly over the past 12.

Carrie Grace: From a competitive standpoint, we have seen, particularly over the past 12 plus months, some consolidation in the space. And so you have seen that consolidation, particularly among kind of two or three players, happen over 2024 and a bit in 2023. That's putting a bit of pressure on margins. We still see this business as a high growth, high margin business, and it is very attractive. We are very well positioned with our solution set of video and audio. And so we can offer both a high quality solution, but given the efficiency of how we deliver our services, it also is a cost effective solution for clients.

Speaker Change: Last month, some consolidation in the space and so you have seen that consolidation, particularly long kind of two or three players.

Speaker Change: Happen.

Speaker Change: Over 2024, and a bit in 2023.

Speaker Change: Putting a bit of pressure on margins, we still see this business as a high growth high margin business.

Speaker Change: And it is very attractive we are very well positioned with our solution set.

Speaker Change: Video and audio.

Speaker Change: And so we can offer both a high quality solution, but given the efficiency of how we deliver our services. It also is a cost effective solution for clients. So we think we are very well positioned even in a competitive environment.

Carrie Grace: So we think we are very well positioned even in a competitive environment.

Brian Scott: So would you expect the margins, the gross margins on that part of the business to basically stabilize at these levels or? or however you're thinking about that.

Speaker Change: So would you expect.

Speaker Change: The margins the gross margins on that part of the business to.

Speaker Change: So basically stabilize at these levels or.

Speaker Change: Or how are you thinking about Jack.

Brian Scott: Yeah, hey Mark, this is Brian. I think that's a fair characterization. We've seen a little bit of a decline, as we called out. But we also are working internally on always improving the quality of the service, but also how we think about utilization of interpreters and the mix between permanent and use of contract onshore or offshore as well. So we're already making some adjustments that will bring down some of our costs with in no way impacting the quality of our service, which we know is a differentiator. So at this point, we feel like we have some good actions that are gonna help stabilize even if there's a little more pressure on the price side with some of the competitors.

Speaker Change: Yes.

Speaker Change: Mark This is Brian.

Speaker Change: I think that's a fair characterization, we've seen a little bit of a decline as we as we called out but we also are working internally on.

Speaker Change: Proving the quality of the service, but also how we think about utilization of interpreters and the mix between permanent and use a contract onshore offshore as well. So we're already making some adjustments that will bring down some of our costs.

Speaker Change: No way impacting the quality of our service, which we know is a differentiator. So at this point, we feel like we feel like we've got some good actions that are going to help stabilize here that there is a little more pressure on the price side with the with some of the competitors. So we're feeling we're feeling good that this is a good stable point.

Brian Scott: So we're feeling good that this is a good stable.

Carrie Grace: Hey, Mark, one thing I'll note just picking up on one of Brian's comments is it is a differentiator, both kind of our video capabilities, but also our onshore offshore. So, for some clients, having the ability to have onshore interpreters is very important to them. Not every competitor offers that option. So that is also a differentiation that is important to, you know, a number of clients and or providers.

Speaker Change: Mark one thing I'll note just picking up on one of Brian's comments is it is a differentiator booth kind of our video capabilities, but also our onshore offshore so for some clients having the ability to have onshore interpreters is very important to them not every competitor offers that option.

Speaker Change: That is also a differentiation that is important too.

Speaker Change: A number of clients and our prospects that we've talked to.

Carrie Grace: Right, can I squeeze one more in? Just on travel nurse bill rates, it sounds like, you know, they were only down a little bit year over year. Do you feel like that's basing out? I know that there's still some orders out there that aren't competitive, but do you feel like we're starting to see some real basing and a point where we can, you know, start building again? Yeah, if you look at the bill rates, we've really seen stabilization from the back half of 2024. So even though we're down 6% year over year, it was, you saw stabilization that we talked about in the past quarter as well.

Speaker Change: Great and can I squeeze one more in.

Speaker Change: Just on <unk>.

Speaker Change: Travel nurse Bill rates it sounds like.

Speaker Change: They were only down a little bit year over year do you feel like that's basing out I know that theres still some orders out there that arent competitive.

Speaker Change: Do you feel like we're starting to see some real pacing in a point, where we can.

Speaker Change: To start building again.

Speaker Change: If you look at the Bill rates, we really seen stabilization from the back half of 2024, so even though we're down 6% year over year. It was you saw stabilization that we talked about in the past quarter as well.

Carrie Grace: Currently, we are at a premium spread of contingent cost of permanent labor of about 11%. Pre-pandemic, you would have seen that range more in the mid to high teens. And so I think as we have talked about over the past couple of quarters, as we've seen some of the stabilization and bill rates, you're continuing to see signs that you have seen some stabilization.

Speaker Change: Currently we are at a premium spread of contingent cost to permanently we're up about 11%.

Speaker Change: Pre pandemic you would've seen that range more in the mid to high teen and so I think as we have talked about over the past couple of quarters as we've seen some of the stabilization in bill rate Youre continuing to see signs that you have seen some stabilization.

Carrie Grace: Unfilled orders. are relatively where they were last quarter, maybe a slight uptick. So I think from here on in, really, if there's an immediacy of the need of some of these clinicians, you would expect for some of those bill rates to go up to ensure that they are able to fill that That's great.

Speaker Change: Unfilled orders.

Speaker Change: Our relatively where they were last quarter, maybe a slight uptick.

Speaker Change: I think from here on in really if there's an immediacy of the need of some of these clinicians you would expect for some of those bill rates to go up to ensure that they are able to fill that that need.

Mark Marcon: Thank you very much. Thanks, Mark. Thank you.

Speaker Change: That's great. Thank you very much.

Mark Marcon: Thanks Mark.

Speaker Change: Thank you.

Trevor Romeo: Our next question is from Trevor Romeo with William Blair. Your line is open. Hey, good afternoon, everyone. Thanks so much for taking the questions. And I want to thank you also for providing the slide deck this quarter. That's extremely helpful for us. So appreciate that.

Speaker Change: Our next question is from Trevor Romeo with William Blair. Your line is open.

Trevor Romeo: Hey, good afternoon, everyone. Thanks, so much for taking the questions.

Trevor Romeo: I wanted to thank you also for providing the slide deck this quarter Thats extremely helpful for us So I appreciate that.

Trevor Romeo: Maybe I'll just I'll just pick up on the unfillable order topic. I had a question on that. I mean, it definitely appears that order volumes are ticking up across the industry still. Yeah, I think Carrie talked about continuing to see orders priced at levels no one's filling, but the margins, gross margins seem a bit more stable, you know, this quarter. So two questions on that. One is, are you starting to see competitors taking less of those low margin orders? And then two, you know, what do you think it'll take for clients to move those bill rates higher so that they can be filled?

Trevor Romeo: Maybe I'll just I'll just pick up on the unavailable order Tal.

Trevor Romeo: Topic I had a question on that I mean, it definitely appears that order volumes are picking up across the industry still.

Trevor Romeo: Yeah.

Speaker Change: Yeah, I think Gary you talked about continuing to see orders priced at levels no one scaling, but the margins gross margins seem a bit more stable. This quarter. So two questions on that one is are you starting to see competitors, taking less of those low margin orders and then two what are you.

Trevor Romeo: It will take for clients to move those bill rates higher so that they can be filled.

Trevor Romeo: Yeah. So on the first one, I think the unfilled orders is probably reflective of rationality of competitors of not filling orders that don't make economic sense. What we have seen in terms of those unfilled orders getting filled, is it typically is a client going back, and there's a more immediate need of getting that filled, and increasing the bill rate to a price that will be reflective of current market conditions, whether that's geographic or by specialty. And so, you know, a part of the challenge that you've had, particularly over the past three or four quarters, is that, you know, while you got into in 2024, we really started to see the bill rate stabilize, but the underlying labor market, you're still seeing increases in wages.

Speaker Change: Yeah.

Speaker Change: So on the first one.

Speaker Change: I think the unfilled orders.

Speaker Change: Is probably reflective of rationality of competitors of not filling orders that don't make economic sense.

Speaker Change: What we have seen in terms of those unfilled orders getting filled is it typically is a client going back and there is a more immediate need of getting that filled.

Speaker Change: And increasing the bill rate to a price that will be reflective of current market conditions.

Speaker Change: Whether that's geographic or or by specialty and so.

Speaker Change: Part of the challenge that <unk> had particularly over the past three or four quarters is that while you got into in 2024, we really started to see the bill rate stabilized.

Speaker Change: But the underlying labor market, you're still seeing increases in wages.

Trevor Romeo: And so, you know, there is a market matching condition that you have to have around the bill rate to reflect where clinicians are willing to go to take the assignment. And so it's pretty client specific. And as we see more of those needs become more immediate, we would expect some of those bill rates. Yeah, in terms of competitive behavior, it seems it's been pretty much the same, right? We're seeing that unfilled percentage that may be the same or may be ticking up a bit, which is, I think, an indication that, you know, clients with low rates have kind of tested the bottom and maybe gone too far.

Speaker Change: So.

Speaker Change: There is a market matching condition that you have to have around the bill rate to reflect where clinicians are willing to.

Speaker Change: To go to take the assignment.

Speaker Change: And so it's pretty client specific and as we see more of those needs become more immediate we would expect some of those bill rates to change.

Speaker Change: Yes in terms of competitive behavior. It seems it's been pretty much the same rate that we're seeing that unfilled percentage, maybe the same or maybe ticking up a bit which is I think an indication that clients with low rates of kind of tested the bottom and they've gone too far and so competitors may be filling some orders, but theyre not billing.

Trevor Romeo: And so it's competitors may be filling some orders, but they're not filling these ones that have rates that just don't make economic sense. And that really hasn't changed. I think as we go through this year, you know, that's If there's a greater need or competitors just realize it's not going to change, you'll probably see some of them move away from the industry, which would be healthy longer term. But ideally, clients, if they have pushed it for a while and realize that that rate is not going to actually attract clinicians in, that they'll start to move.

Speaker Change: These ones that have rates that just don't make economic sense.

Speaker Change: That really Hasnt changed I think as we go through this year.

Speaker Change: Yeah.

Speaker Change: If there is greater need or competitors as realizes that's not going to change youll, probably see some of them move away from the industry, which would be healthy longer term.

Speaker Change: But ideally clients.

Speaker Change: Yep.

Speaker Change: For awhile and realize that that rate is not going to actually attract clinicians and that they'll start to move and again, it's on a quantified client base, we're definitely seeing that happen, we just need to see more broadly across the industry and Trevor one other out I would have to Brian's comments is when you look at.

Trevor Romeo: And again, it's on a client-by-client basis. We're definitely seeing that happen. We just need to see it more broadly across the industry.

Carrie Grace: And Trevor, one other add I would have to Brian's comments is when you look at some of the things that have improved for the healthcare system, you've seen a return to pre-pandemic retention rates. You saw a reestablishment of their permanent base through accelerated hiring. And so those two things were significant improvements in terms of the stability of their workforce. You now have from a completion strategy, very cost-effective contingent labor costs. And so I do think as you look forward, how systems think about the completion of that strategy, it probably will look different than it maybe did 18 months ago when that premium spread was at much higher levels.

Speaker Change: Some of the things that have improved for the health care system, you have seen a return to pre pandemic retention rates.

Speaker Change: A reestablishment of their permanent base through accelerated hiring and so those two things were significant improvements in terms of the stability of their workforce. You now have from our completion strategy very cost effective contingent labor cost and so I do think as you look for.

Speaker Change: Forward.

Speaker Change: How system things about the completion of that strategy. It probably will look different than it maybe you did 18 months ago when that premium spread was was at much higher levels.

Trevor Romeo: Got it. That makes a lot of sense. Thank you both.

Speaker Change: Got it that makes a lot of sense. Thank you both and then I guess for my follow up I wanted to ask on the labor disruption piece I mean, it seems like it's come in ahead of your expectations. The last couple of quarters.

Carrie Grace: And then, I guess, for my follow-up, I wanted to ask on the labor disruption piece. I mean, it seems like it's come in ahead of your expectations the last couple quarters. Carrie, you talked about the pipeline. I think some of the recent capabilities have improved in that area. So I guess, would you say that the underlying amount of labor disruption is growing, or is it more about that internal kind of focus and execution, and either way, you know, is this an area where you could see kind of a more consistent revenue, you know, cadence going forward?

Speaker Change: Gary you talked about the pipeline I think some of the recent capabilities have improved in that area. So I guess would you say that the underlying amount of labor disruption is growing or is it more about that internal kind of focused on execution and either way is there a scenario, where you where you could see kind of a more consistent revenue.

Carrie Grace: Thanks. It's more the internal focus and how we operate. So, as we went back and looked at the total CBAs in the market last year versus this year, last year was higher. Our pipeline and the clients and the events we're supporting are higher. Because we've been focused on it, and I'd say it's been on really 2 very important fronts. 1 is. It is very clear to us that for clients who have this need, it is a very important. and our focus is on how we support our The second part really speaks to some of the commentary that I had in the beginning, which is, we now have technology, we have more automation in our business, we have an ability to support important parts of our process 24-7, you know, around the, around the clock globally.

Speaker Change: Cadence going forward. Thanks.

Speaker Change: It's more the internal focus.

Speaker Change: And how we operate so we went back and looked at the total CBA and the market last year versus this year last year with higher <unk>.

Speaker Change: Our pipeline and and the clients and the events were supporting our higher because we've been focused on it and I'd say, it's been on really two very important fronts. One is it is very clear to us that for clients to have this need it is a very important need.

Speaker Change: And our focus is on how we support our clients.

Speaker Change: Second part really speaks to some of the commentary that I had in the beginning which is we now have technology, we have more automation in our business, we have an ability to support important parts of our process 24 seven.

Speaker Change: Around the around the clock globally and so there are a number of things that we have worked on over the past 12 months to 18 months that have positioned us.

Carrie Grace: And so there are a number of things that we have worked on over the past 12 to 18 months that have positioned us to be able to support our clients very effectively here, while also not affecting the high service quality in our core business. And so we wanted to have confidence that we could do that and make sure that we were not affecting the quality of service that we had in our in our core. From a modeling standpoint, it's a great question. We still model $5 million of revenue a quarter. It's just not as predictable.

Speaker Change: To be able to support our clients very effectively here, while also not affecting the highest service quality in our core businesses.

Speaker Change: So we wanted to have confidence that we could do that and make sure that we were not.

Speaker Change: <unk> the quality of service that we had in our in our core.

Speaker Change: From a from a modeling standpoint, it's a great question.

Speaker Change: We still model $5 million of revenue a quarter, it's just not as predictable.

Carrie Grace: But we do have a stronger pipeline. We have more upside than we have had, especially more recently in some of these... But it is, you know, it can still be lumpy because even when there's an expiring bargaining agreement, that doesn't necessarily mean that the next day they, you know, they go on strike. And so there may be an agreement in place, we're planning for it, but the timing is somewhat unknown and the duration. So we do believe that there'll be, you know, we will continue to have the service and there will be strikes that will happen.

Speaker Change: But we do have a stronger pipeline, we have more upside than we have had especially more recently in some of these events.

Speaker Change: But it is it can still be lumpy because even when there is a an expiring arginine agreement that doesn't necessarily mean that the next day. They go on strike and so there may be agreement in place we're planning for it but the timing is somewhat are known and the duration. So we do believe that there'll be.

Speaker Change: We will continue to have the service and there will be there will be strikes that will happen, but in terms of.

Carrie Grace: But in terms of, you know, the magnitude and the exact timing, it's still very difficult to predict. The good thing is, as Kerry pointed out, we have a team that can support that really well. We now have industry leading technology behind it. So we feel like we're really well positioned to be able to win those opportunities that come up and provide a really critical service, but it is still hard to predict the exact timing and magnitude.

Carrie Grace: The magnitude and the exact timing, it's still very difficult to predict the good thing as Kerry pointed out we have a team that can support that really well, we now have industry, leading technology behind it. So we feel like we're really well positioned to be able to win those opportunities that come up and provide really critical service, but it is still hard to predict the exact timing and magnitude.

Brian Scott: Yeah, if I could maybe just sneak in one quick follow-up on that. Brian, on the incremental margins on that business, can you just maybe remind us what you typically see there relative to your other businesses in that segment? Yeah, it's a fair question. And again, there's lots of variables in that because, again, sometimes if there's work leading up to an event and it doesn't happen, you might get more fees on kind of preparing, and that could be a higher margin. But we found over the last couple of years, for events that occur, we are, as we've mentioned in the last couple of quarters where we've had a pretty solid amount of revenue, the gross margins are not materially different than the segment margin.

Speaker Change: Yes, if I could maybe just sneak in one quick follow up on that.

Speaker Change: Brian on the incremental margins on that business can you just maybe remind us what you typically see there relative to your other businesses in that segment, yes. It's a fair question and again there is lots of variables in that because again there are sometimes if there if theres work leading up to an event that it doesn't happen you might get more fees on kind of preparing that can be higher margin, but if we found it.

Speaker Change: The last couple of years for events that occur.

Speaker Change: We are as we've mentioned in the last couple of quarters, where we've had a <unk> revenue. The gross margins are not materially different than the segment margin. We obviously get more flow through though the G&A side of it we definitely have incremental costs that team is already in place, but travel costs and other logistics support that occurs so we get a nicer flow through.

Brian Scott: We obviously get more flow-through, though. The G&A side of it, we definitely have incremental costs. That team is already in place, but travel costs and other logistic support that occurs. So we get a nicer flow-through on the EBITDA margin, but the gross margin impact for nurse and outlet is pretty consistent with what you're seeing in our corporate.

Speaker Change: On the EBITDA margin, but the gross margin impact for nurse and Allied as is.

Speaker Change: Pretty consistent what you're seeing in art in our core business.

Brian Scott: All right, thank you very much, I appreciate it. Thank you.

Speaker Change: Alright, Thank you very much I appreciate it.

Speaker Change: Thank you.

A.J. Rice: Our next question is from A.J. Rice with UBS. Your line is open. Hi, everybody, maybe a couple. I hear some of which clarification of previous comments. Just make sure I understand and the nurse and ally bill, especially the nursing, the bills rates are stabilizing. You've said that the last 2 quarters, but you've also added an uptick in labor disruption. Revenues is on an apples to apples basis, putting the labor disruption aside. Are you seeing stabilization or is that having any influence on sort of helping stabilize the range?

Speaker Change: Our next question is from a J rice with UBS. Your line is open.

Speaker Change: Hi, everybody, maybe a couple here some of which clarification of previous comments.

Speaker Change: Just to make sure I understand.

Speaker Change: Nurse and Allied Bill, especially been nursing the bill rates are stabilizing you've said that in the last few quarters, but you've also added.

Speaker Change: An uptick in labor.

Speaker Change: <unk> revenues.

Speaker Change: On an apples to apples basis, putting the labor disruption side or are you seeing.

Speaker Change: Stabilization or is that having any influence on sort of helping to stabilize the range.

A.J. Rice: Yeah, hey, Jay. Thanks for the question. So just to be clear, the labor disruption revenue, those rates are not included in the bill rates that you see us talk about here and that stability there. So we're really talking about the bill rates for our kind of core travel nurse and travel allied businesses. And that's we've seen stability for the last several quarters. The rates on labor disruptions vary quite a bit, they can be higher just because you're trying to pull in for short duration, but that's not influenced in the metrics we're talking about here. Okay, that's helpful.

Speaker Change: Yes, Hi, Jay Thanks for the question so just to be cleared up the labor disruption revenue.

Speaker Change: Those rates are not included in the bill rates that you see us talk about here and Thats stability. There. So we're really talking about the bill rates for our kind of core travel nurse and travel Allied businesses, and that's where we've seen stability for the last several quarters.

Speaker Change: The rates on labor disruptions vary quite a bit that they can be higher just because you are you are trying to pull in for short duration, but thats not influencing metrics for we're talking about here.

A.J. Rice: And then, going back to the language services, I understand the comments about the competitive landscape, but you also mentioned in the prepared remarks, you know, a little bit of weakening in demand for Spanish translation services that may be potentially impacted by some of the dynamics out of Washington. I think the question about how much of an impact is that, how big is Spanish translation services in your business? And I guess to think about it from what's going on with immigration at all, do you have a lot of that in the emergency room, or is that more people that are actually admitted to the hospital, etc.?

Speaker Change: Okay. That's helpful and then.

Speaker Change: Going back to the language services I understand the comments about the competitive landscape, but you also mentioned in the prepared remarks.

Speaker Change: A little bit of weakening in demand for.

Speaker Change: Spanish translation services, maybe potentially impacted by some of the dynamics out of Washington.

Speaker Change: Thanks for the question about how much of an impact is that how big is the Spanish translation services in your business and I guess to think about it from what's going on with immigration Bill.

Speaker Change: You have a lot of that in the emergency room or is that more people that are actually admitted to the hospital et cetera.

A.J. Rice: You know, we haven't, so language is the number one language for interpretation, and that's, that's not a surprise. What we have seen so far is a modest downturn in Spanish as a percentage of our total language mix. And so it's something that we're monitoring, because we have typically seen that as as very strong growth. It's not something that is. would at this point that we would see impacting, we're actually seeing growth into second quarter, and we would expect that continues throughout the year. But it's something that we're monitoring, we haven't seen any slowdown in interest or demand from clients.

Speaker Change: No.

Speaker Change: We haven't so language is the number one language for interpretation.

Speaker Change: And that's not a surprise.

Speaker Change: What we have seen so far is a modest.

Speaker Change: Downturn in.

Speaker Change: Let me finish as a percentage of our total.

Speaker Change: Language mix and so it's something that we're monitoring as we have typically seen that.

Speaker Change: Very strong growth.

Speaker Change: It's not something that is.

Speaker Change: At this point that we would see impacting we're actually seeing growth into second quarter, and we would expect that continue throughout the year.

Speaker Change: But it's something that we're monitoring we haven't seen any slowdown in interest or demand from clients.

A.J. Rice: And so the only place where we have seen any type of impact is a modest downtick in the percentage of Spanish as total minute offered.

Speaker Change: And so the only place where we have seen any type of <unk>.

Speaker Change: Impact is a modest.

Speaker Change: Downtick in the percentage of finished total minutes.

Speaker Change:

Speaker Change: Offered.

A.J. Rice: Okay, and then just one last one. I think in the prepared remarks, you mentioned you had a little pressure in bill pay spread and locum tenens. I know you can add volatility based on the specialists that are in demand at any given time, but I don't think I've heard you say that there was some pressure on the bill pay spread before. Maybe I'm wrong on that, but what do you see in there? Yeah, I mean, I think we've probably called it out at times. I mean, there's competition there. And so there's been some pressure on just the spreads overall as we're really trying to drive days filled.

Speaker Change: Okay.

Speaker Change: Then just one last one.

Speaker Change: You mentioned that you had a little pressure.

Speaker Change: Bill pay spread in locum Tenens I know you can add volatility based on the specialist.

Speaker Change: And demand in any given time.

Speaker Change: Don't think I've heard you say that there was some pressure on the bill pay spread before.

Speaker Change: Maybe I'm wrong on that.

Speaker Change: What are you seeing there.

Speaker Change: Yes, I mean I think we.

Speaker Change: We called it out at times I mean, there's competition there and so there it's been there's been some pressure on just the spreads overall is we're really trying to drive days filled and then there has been a component of mix with like our CRM business, which has been a nice strong growth in days, but it does carry a lower margin impacting the spreads overall for that business.

A.J. Rice: And then there has been a component of mix with, you know, like our CRNA business, which has been, you know, a nice strong growth in days, but it does carry a lower margin impacting the spreads overall for that business. I think we've, and so you see more of an impact on a year-over-year basis. It's much smaller sequentially. And as we look into the second quarter and the remainder of the year, I feel like we're in a good place and spreads are starting to stabilize. I think the other important point I think we mentioned in the last call is that we're seeing good momentum in some of our other specialties now.

Speaker Change: And so you see more of an impact on a year over year basis, it's much smaller sequentially and as we as we look into the second quarter and the remainder of the year feel like we're in a good place.

Speaker Change: And spreads are starting to stabilize.

Speaker Change: The other important point I think we mentioned in our last call is that we're seeing good momentum in some of our other specialty is now a lot of built up the teams there and some of the internal medicine psych surgery. There's other areas where has that have a better rate and margin profile. So that the team is very confident that we're going be able to grow those specialties, which should have a positive influence.

A.J. Rice: A lot of, you know, we've built up the teams there in some of the, so internal medicine, psych, you know, surgery, these other areas that have a better rate and margin profile. The team is very confident that we're going to be able to grow those specialties, which should have a positive influence on our margins longer term.

Speaker Change: On our margins longer term.

A.J. Rice: Okay, thanks a lot. Thank you.

Speaker Change: Okay. Thanks, a lot.

Speaker Change: Thank you.

Brian Tranquillet: Our next question comes from Brian Tranquillet from Jeffreys. Your line is open.

Brian <unk>: Our next question comes from Brian <unk> from Jefferies. Your line is open.

Megan Holtzahn: Hi, this is Megan Holtzahn for Jack Slevin, and thank you for taking the question. So just a little bit deeper and beyond the Spanish commentary, are you guys seeing any apprehension from clients in taking on full-time hires, given the background right now on the macro side and the policy uncertainty, or is it soon to tell? Yeah, I think generally, it's too early to tell. Clients are monitoring, you know, the fluid environment around healthcare policy, and doing scenario planning. What we have seen and what a lot of the commentary, particularly over the past two weeks from some of the healthcare systems is, is that they are still seeing a healthy increase in patient demand.

Brian <unk>: Hi. This is Meghan holds on for Jack Levin and thank you for taking our question. So just a little bit deeper and beyond those Spanish commentary are you guys seeing any apprehension from clients and taking on full time hires given the background right now on the macro side in the policy uncertainty or is it soon to suit.

Speaker Change: <unk> soon to tell.

Speaker Change: Yeah, I think generally it's too early to tell.

Speaker Change: Clients are monitoring that.

Speaker Change: Fluid environment around health care policy and doing scenario planning.

What we have seen and what a lot of the commentary, particularly over the past two weeks from some of the healthcare systems is is that they are still seeing a healthy increase in patient demand.

Carrie Grace: And so, for us, we had a strong start to the year. We are very focused on how we continue to increase our, our demand and so more of the demand that's out there in the market. The only thing that we have seen from a behavioral standpoint over the past couple of weeks is we've seen some slowdown in client decision making. We've seen this off and on over the past 2 years and so that, that, you know, is not something that is new to us. And we do think that, particularly with my earlier comments about where you see some of the premium spread to permanent positions.

Speaker Change: And so for US we had a strong start to the year. We are very focused on how we continue to increase our demand and fill more of the demand that's out there in the market.

Speaker Change: The only thing that we have seen from a behavioral standpoint over the past couple of weeks is we've seen some slowdown in client decision making.

Speaker Change: <unk> seen this off and on over the past two years.

Speaker Change: And so that that.

Speaker Change: It's not something that is new to us and we do think that particularly if my earlier comments about where you see some of the premium spread to permanent position right now in this environment contingent is actually a very attractive alternative.

Carrie Grace: Right now, in this environment, contingent is actually a very attractive alternative. If there's not, you know, if while they wait and look at where some of these policies land.

Speaker Change: If there is not.

Speaker Change: While they wait and look at where some of these policies land.

Carrie Grace: Okay, thank you. And then just a follow up.

Speaker Change: Okay. Thank you and then just a follow up can you guys walk through any updated thoughts on the progression of the international business throughout the balance of the year.

Brian Scott: Can you guys walk through any updated thoughts on the progression of the international business throughout the balance of the year? Yeah, as we talked about in the last call, I said there's no major changes there. We did expect to see, and we have seen a decline sequentially from Q4 to Q1, call it a three to four million range. We'll see a similar amount in the second quarter, and that's really just a function of, with retrogression, that we've got more nurses coming off their contract than we're able to place, but that is stabilizing. We still expect by the time we get to the third quarter, so Q3 and four should look a lot like the second quarter.

Speaker Change: Sure, Yes, as we've talked about in the last call that there is no major changes there we did expect to see and we have seen a decline.

Speaker Change: <unk> declined sequentially from Q4 to Q1 call it $3 million to $4 million range, we'll see a similar amount in the second quarter and Thats really just a function of with retro aggression that we got more nurses coming off their contract then we're able to place but that is stabilizing we still expect by the time, we get to the third quarter. So Q.

Speaker Change: Three and four should look a lot like the second quarter, so no longer a headwind after the second quarter from everything we're seeing right now.

Carrie Grace: So, no longer a headwind after the second quarter from everything we're seeing right now, and we still expect to see that start to turn positive in 2026, as you continue to see those, the visa dates move forward. That's really, other than that, we can, if the clients want to bring in more international nurses, it's just a function of getting that visa date moved forward so that we can pull more that are in the pipeline into the U.S. and into these assignments. Yeah, what we've seen, you know, just to add on to Brian's comment about support is the need for international clinicians is supported both in a bipartisan kind of environment, and it's also pretty universally supported by health systems. So, it feels a very important need for a number of systems. I say, particularly those that are non urban settings that have a harder time being able to retain and attract.

Speaker Change: And.

Speaker Change: We still expect to see that that's our term positive in 2026 as you continue to see those.

Speaker Change: <unk> date to move forward.

Speaker Change: Thats really other than that we get it that clients want to bring in more international nurses is just a function of getting that visa date move forward. So that we can pull more that are in the pipeline.

Speaker Change: Into the U S entities assignments.

Speaker Change: What we've seen.

Speaker Change: To add onto Bryan's comment about support is.

Speaker Change: The need for international clinicians is supported both in a bipartisan.

Speaker Change: Kind of <unk>.

Speaker Change: Environment and it's also pretty universally supported by health system. So it fills a very important need.

Speaker Change: For a number of systems I'd say, particularly those that are non urban settings that have a harder time being.

Speaker Change: Being able to retain and attract talent.

Carrie Grace: Got it.

Carrie Grace: Thank you for the caller.

Speaker Change: Got it thank you for the color.

Jeff Silber: Thank you. Our next question comes from Jeff Silber with BMO Capital Markets. Your line is open. Hey, thank you. This is Ryan. I'm for Jeff.

Speaker Change: Thank you.

Speaker Change: Our next question comes from Jeff Silber with BMO capital markets. Your line is open.

Speaker Change: Hey, Thank you. This is Ryan on for Jeff just wanted to refresh on the capital allocation priorities. At this point in time is taking leverage ratios down first and foremost and then just any thoughts on repurchases or M&A. Thanks.

Ryan: I just wanted to refresh on the capital allocation priorities at this point in time, is taking leverage ratio down first and foremost, and then just any thoughts on repurchases or M&A. Thanks. Sure, Brian. As I mentioned in our prepared remarks, definitely our priority right now is to continue to use free cash flow to pay down debt. And so that is not going to change this year from a capital deployment on CapEx. We've said that we'll expect to spend somewhere between $40 million and $50 million this year. That is a little more than half of what we spent in 2024.

Speaker Change: Sure Brian.

Speaker Change: As I mentioned in our prepared remarks, our definitely our priority right now is to continue to use free cash flow to pay down debt.

Speaker Change: And so that that is not going to change to this year from a capital deployment on Capex, We've said.

Speaker Change: We will expect to spend somewhere between 40 and $50 million. This year that is thats a little.

Speaker Change: More a little more than half of what we spent in 2024. So we did adjust our capital expenditures.

Brian Scott: So we did adjust our capital expenditures so that we could deploy more towards debt reduction. But I think it's still creating quite a differentiation for AMN and that we're still investing in innovation, in AI, things that are going to continue to improve our service delivery speed and fulfillment. And so I think that's where maybe some of our other competitors that are having to pull back even more on their CapEx, we're excited about what we're bringing forward here. You hear us talk about it in the investments we're making across the business. And so we think those are really important to our long-term strategy, but it's a good balance between deploying for those important investments, but also paying down our debt and keeping that leverage within our covenant.

Speaker Change: So that we could deploy more towards debt reduction, but I think it's still creating a different point of differentiation differentiation for <unk> and that we're still investing in.

Speaker Change: In innovation and AI.

Speaker Change: Things that are going to continue to improve our <unk>.

Speaker Change: Service delivery speed and fulfillment and so I think that's where maybe some of our other competitors that are having to pull back even more on their capex.

Speaker Change: We're excited about what we're bringing forward here.

Speaker Change: There is talk about it.

Speaker Change: The investments, we're making across the business and so we think those are really important to our long term strategy, but it's a good balance between deploying for those important divestments, but also paying down our debt and keeping that leverage within our covenants.

Brian Scott: Got it. Thank you.

Brian Scott: And then just to follow up on one of the prior questions, I was curious how things trended throughout the quarter and exited the quarter. I was wondering if you noticed any incremental hesitancy from clients, either post-DOJ or tariff announcements or anything to call out there. Thank you. No, you know, we continue to see strong demand. So if you kind of look at our businesses, we continue to see strong demand and allied local strike, school bookings, language services. In nurse, we are still year-to-date through April versus the year-over-year comparison. We're up mid-teens. In that, we did see some, a bit of pullback in April, but even with that, we're still up 15% year over year.

Speaker Change: Got it. Thank you and then just to follow up on one of the prior questions. I was curious how things trended throughout the quarter and exited the quarter I was wondering if you've noticed any incremental hesitancy from clients either post does your tariff announcements or anything to call out there. Thank you.

Speaker Change: No.

Speaker Change: We continued to see strong demand. So if you kind of look at our businesses. We continue to see strong demand in Allied Lupone strike school bookings Langer.

Speaker Change: Language services.

Speaker Change: In nurse, we are still year to date through April versus the year over year comparison.

Speaker Change: Mid teens.

Speaker Change: In that we did see some a bit of pullback in April, but even with that were still up 15% year over year. So we continue to see healthy demand in the businesses.

Brian Scott: So we continue to see healthy demand in the businesses. The one thing that, as I mentioned earlier, that we have seen is some slowdown in decision-making. So once a candidate is presented, the decision making around that or around an extension. Thank you for your questions.

Speaker Change: The one thing that as I mentioned earlier that we have seen is some slowdown in decision making.

Speaker Change: So once a candidate has presented the decision making around that or around an extension.

Speaker Change: Yes.

Speaker Change: Thank you for your question.

Joanna Gajuk: Our next question comes from Joanna Gajuk from Bank of America Security. Your line is open. Hi, thanks so much for taking the questions. Maybe a couple questions on your guidance. I don't think I've heard some of the metrics that you normally discuss. So, what do you assume for the nurse allied volumes in Q2 and also for the bill rate in Q2? And the last piece is gross margin for nurse allied in Q2. I guess you did 22.7 I think in Q1, so that was better than what you had assumed. So, kind of maybe if you can give us some of these assumptions, that would be helpful.

Speaker Change: Our next question comes from Joanna <unk> from Bank of America Securities. Your line is open.

Speaker Change: Alright, thanks, so much for taking the questions. So maybe a couple questions on your guidance I don't think I've heard.

Speaker Change: Some of the metrics that you normally this cost so what do you assume for the nurse Allied volumes in Q2, and also put the bill rates in Q2, and then last piece is.

Speaker Change: Gross margin for nurse and Allied in Q2 I guess.

Speaker Change: 22, seven I think you once said that was better than what you had assumed so kind of maybe if you can give us some of these assumptions that would be helpful. Thank you.

Joanna Gajuk: Thank you.

Brian Scott: Yeah, I don't, yeah, I don't think we're going to give that specific level of detail. We did mention in the prepared remarks that there is, you know, we expect to see kind of normal seasonality in nursing, which if you go back, it's not uncommon to see our volume come down, some from Q1 to Q2 as some of those winter assignments end. So, we're expecting to see that sequentially. Like I said, in kind of a normalized pattern, a low single digit, allied, again, underneath good demand in our core allied business schools, you typically do see a decline from first and second quarter, again, as you're moving into the summer months.

Speaker Change: Yes, I don't yes, I don't think we're going to give that specific level of detail. We did mentioned in the prepared remarks that.

Speaker Change: There is we expect it to kind of normal seasonality in nursing, which if you go back.

Speaker Change: It's not uncommon to see our volume come down some from Q1 to Q2 with some of those winter assignments and.

Speaker Change: So we're expecting to see that sequentially.

Speaker Change: Like I said in kind of a normalized pattern of low single digits Allied again underneath Allied again, good demand in our core Allied business schools, you typically do see a decline from first and second quarter again as youre moving into the summer months.

Brian Scott: So, I'd say, you know, in that regard, it's pretty similar, and on the rate side, again, the stable rate, bill rate going from Q1 to Q2, the only influence, again, some of those winter assignment orders might have had a little bit higher rate attached to them, but underneath that, we've seen stability in rates as well. Thank you.

Speaker Change: In that regard.

Speaker Change: Pretty similar number on the rate side again, the stable stable rate bill rate going from Q1 to Q2, the only influence again some of those winter assignment orders might have had a little bit higher rate attached to them, but underneath that we're seeing stability in rates as well.

Brian Scott: And I guess on the growth margin overall in Q1, you mentioned that, you know, I didn't mention, but we can see that it was better than your guidance. So, what actually drove the outperformance then, and I guess then for your Q2 guidance, right, on the overall growth margin, you can assume kind of stable, maybe actually up at the midpoint a little bit, 10 basis points or so. So, can you walk us through, yeah, the outperformance in Q1, and then I guess, you know, while you're thinking the growth margins could actually be up sequentially. Thank you.

Speaker Change: And I guess on the gross margin overall in Q1, you mentioned.

Speaker Change: And as I mentioned, we can see that it was better than your guidance. So what actually drove the outperformance there and I guess then for your Q2 guidance rate on the overall gross margin.

You could assume kind of stable, maybe actually up at the midpoint of literally 10 basis points or so.

Speaker Change: So can you walk us through the outperformance in Q1, and then I guess.

Speaker Change: What are you thinking about the gross margins could actually be up sequentially. Thank you sure I mean, they're there weren't any major drivers of that outperformance in Q1, we did have a workers' comp actuarial benefit.

Brian Scott: Sure. I mean, there weren't any major drivers of that outperformance in Q1. We did have a, we had a workers' comp actuarial benefit, a favorable adjustment of about a million and a half that was, you know, that adds about 20 basis points. We did have a little bit better performance in our VMS revenue, which is, you know, a high margin search as well. So, it was kind of a sum of several small things that ended up driving outperformance in the gross margin in the first quarter. The guide we've given for Q2 would imply down a little bit, part of that being driven by that one-time workers' comp adjustment in the first quarter, not, you know, happening again in the second quarter.

Speaker Change: Favorable adjustment of about 1 million and a half that was thats about 20 basis points, we did have a little bit better performance in our Vms revenue, which is a high margin search as well. So it was kind of a sum of several small things that ended up driving outperformance.

Speaker Change: And the gross margin in the first quarter. The guide we've given for Q2.

Speaker Change: Would imply down a little bit part of that being driven by one time workers comp adjustment in the first quarter.

Speaker Change: Not not happening again in the second quarter and then the rest of it's really predominantly just mix, we're seeing pretty stable margins.

Brian Scott: And then the rest of it's really predominantly just mixed. We're seeing pretty stable margins. Nothing I'd call out as highly notable from Q1 to Q2. Thank you.

Speaker Change: Nothing I'd call out is highly notable from Q1 to Q2.

Speaker Change: Thank you.

Speaker Change: Yes.

Speaker Change: Thank you.

Carrie Grace: Our next question is from Tobey Sommer from Truist. Your line is open. Good afternoon, this is Tyler Barish for Tobey. You mentioned in the prepared remarks, some changes to gross margins with some process changes with technology. Can you just go a little more detail on what some of those are? Yeah, so part of what we have been doing is we just rolled out after development in the back half of the year, a gross margin tool. And so part of what we have been focused on in our, you know, technology investments is how do we create both automation but efficiency.

Speaker Change: Our next question is from Tobey Sommer from <unk>. Your line is open.

Speaker Change: Good afternoon. This is Tyler bearish for Tobey you mentioned in the prepared remarks.

Speaker Change: Changes to.

Speaker Change: Gross margins with some process changes with technology.

Speaker Change: Give a little more detail on what some of those are.

Speaker Change: Yes, so part of.

Speaker Change: What we have been doing is we just.

Speaker Change: <unk> rolled out after the development in the back half of the year, our gross margin tool and so part of what we have been focused on in our.

Speaker Change: Technology.

Speaker Change: Technology investments is how do we create both automation, but efficiency and so that has been very well received.

Carrie Grace: And so that has been very well received. It will create about a 4% on average productivity improvement for our recruiters. And so those tools are really helpful in us both attracting but also retaining the top recruiting talent. The other pieces that you've seen us focus on in our technology that helps our generate revenue are our AI matching. So we put in the fourth quarter in our locum business, we put AI matching capabilities with candidates that help recruiters with their speed. If we look year over year in our locum fill, it has gone up considerably. And some of that tech enablement is a part of it.

Speaker Change: It will create about a 4% on average productivity improvement for.

Speaker Change: For our recruiters and so.

Speaker Change: Those tools are really helpful in us both attracting.

Speaker Change: But also retaining the top recruiting talent the other pieces that you've seen us focus on in our technology that helps our ability to generate revenue or.

Speaker Change: <unk> AI matching so we put in the fourth quarter in our Locums business, we put AI matching capabilities and candidates that helps recruiters with the speed. If we look year over year in our locums filled it has gone up considerably.

Speaker Change: And some of that Tech enablement is a part of it.

Carrie Grace: And there's continued, I mean, it's, you know, daily, weekly, we're rolling out new enhancements in our, the tools that we're providing to our recruiters, some of it we can't share necessarily from a competitive point of view, but just know that that, we're getting really good internal reaction to some of the investments we're making, continuing to build out AMN Passport to, you know, for the clinicians as well to make it easier for them to, you know, onboard, search for jobs, credentials, so that, and really create a more cohesive integrated platform between you know, shift wise flex, our internal applicant tracking system, Passport, so everything is very well connected and things flow more seamlessly, which in all cases improve speed and experience both for clients, clinicians, and our internal teams. Got it.

Speaker Change: And there is continued.

Speaker Change: Daily Weekly, we're rolling out new enhancements and are the tools that we're providing to our recruiter some of it we can't share necessarily from a competitive point of view, but just know that that we're getting really good internal reaction to some of the investments we're making.

Speaker Change: Continuing to build out our <unk> passport to FERC for the clinicians as well to make to make it easier for them to onboard search for jobs credentials, so that and really create a more cohesive integrated platform between.

Speaker Change: <unk> wise flax, our internal tracking system passport. So everything is very well connected and things flow more seamlessly, which in all cases improved speed and experience both for clients clinicians and our internal teams.

Carrie Grace: And then can you just discuss some competition in the marketplace? Has competition eased at all in the last couple months, especially with a peer being acquired, potentially? The competition is still very intense. The the the acquisition, the cross country acquisition is not complete yet. So they're they are still competitors. And we expect that competitive environment to stay intense. There is over there is more competition for the demand that's out there. You start to see a rationalization and consolidation already over the past year. We think that more has to happen over the coming years. And so we would expect both, you know, for it to continue to be a competitive environment.

Speaker Change: Got it and then can you just because some competition in the marketplace as competition eased at all in the last couple of months, especially with appear be required essentially.

Speaker Change: Yes, the competition is still very intense.

Speaker Change: The the acquisition the IR Cross country acquisition is not complete yet so there they are still competitors.

Speaker Change: And we expect that competitive environment to stay and Ken.

Speaker Change: There is one.

Speaker Change: Over there is more competition.

Speaker Change: For the demand that's out there you start to skew rationalization and consolidation already over the past year, we think that more has to happen over the coming years and so we.

Speaker Change: We would expect both.

Speaker Change: For it to continue to be a competitive environment.

Carrie Grace: and for there to be continued rationalization of the capacity that's in the market. Really kind of furthering some of Brian's earlier comments, if we look at our capabilities, which includes our platforms, our broad solutions, our extraordinary team, we think that we are well positioned. in that very competitive environment. And we are seeing that increasingly with our client wins, with our improved fill rates, with our ability to win against the entirety of the market from MSPs, vendor neutral and direct. Thank you.

Speaker Change: And for there to be continued rationalization of the capacity sits in the market.

Speaker Change: Really kind of furthering some of Brian's earlier comments, if we look at our capability.

Speaker Change: Which includes our platforms our broad solutions, our extraordinary team, we think that we are well positioned.

Speaker Change: In that very competitive environment, and we're seeing that increasingly with our client wins with our improved fill rates with our ability to win against the entirety of the market <unk> vendor neutral direct.

Speaker Change: Thank you.

Speaker Change: Thank you.

Carrie Grace: I'm showing no other questions at this time, so I would now like to turn it back to Carrie Gray for closing remarks. Thank you all for your interest in AMN and for tuning in to our conference call.

Carrie Grace: I'm showing no other questions at this time, so I would now like to turn it back to carry gray for closing remarks.

Carrie Grace: Thank you all for your interest in <unk> and for tuning into our conference call and I want to do a shout out both to our <unk> team members, who got us off to a strong start to 2025 as well as to say a special note of gratitude to everyone.

Carrie Grace: And I want to do a shout out both to our AMN team members who got us off to a strong start to 2025, as well as to say a special note of gratitude to every nurse out there as we celebrate you through the entirety of this month. Thank you.

Carrie Grace: Every nurse out there as we celebrate used through the entirety of this month.

Carrie Grace: You.

Operator: This does conclude the program. You may now disconnect. Have a good day. Thanks for watching!

Carrie Grace: This does conclude the program you may now disconnect have a good day.

Carrie Grace: Okay.

Carrie Grace: Okay.

Carrie Grace: [music].

Carrie Grace: Okay.

Carrie Grace: [music].

Carrie Grace: Yeah.

Carrie Grace: Okay.

Carrie Grace: [music].