Q4 2025 Cross Country Healthcare Inc Earnings Call

March 4, 2026

Operator: Good afternoon, everyone, welcome to the Cross Country Healthcare's Earnings Conference Call for Q4 2025. Please be advised that this call is being recorded, a replay of the webcast will be available on the company's website. Details for accessing the audio replay can be found in the company's earnings release issued this afternoon. At the conclusion of the remarks, I will open the lines for questions. I will now like to turn the call over to Josh Vogel, Cross Country Healthcare's Vice President of Investor Relations. Thank you, sir. You may go ahead.

Speaker #1: Good afternoon, everyone, and welcome to the CROSS COUNTRY HEALTHCARE IN Q3's earnings conference call for the fourth quarter 2025. Please be advised that this call is being recorded and a replay of the webcast will be available on the company's website.

Speaker #1: Details for accessing the audio replay can be found in the company's earnings release issued this afternoon. At the conclusion of the pre-remarked remarks, I will open the lines for questions.

Speaker #1: I will now like to turn the call over to Josh Vogel, CROSS COUNTRY HEALTHCARE'S Vice President of Investor Relations, thank you, sir. You may go ahead.

Speaker #2: Thank you, and good afternoon, everyone. I'm joined today by our Chairman of the Board and Chief Executive Officer, Kevin Clark, as well as Bill Burns, our Chief Financial Officer; Mark Krug, Group President of Delivery; and Amy Hawkins, Chief Solutions and Operations Officer.

Josh Vogel: Thank you. Good afternoon, everyone. I'm joined today by our Chairman of the Board and Chief Executive Officer, Kevin Clark, as well as Bill Burns, our Chief Financial Officer, Marc Krug, Group President, Delivery, and Amiee Hawkins, Chief Solutions and Operations Officer. Today's call will include a discussion of our financial results for Q4 2025, as well as our outlook for Q1 2026. A copy of our earnings press release is available on our website at crosscountry.com. Please note that certain statements made on this call may constitute forward-looking statements. These statements reflect the company's beliefs based upon information currently available to it.

Speaker #2: Today's call will include a discussion of our financial results for the fourth quarter of 2025, as well as our outlook for the first quarter of 2026.

Josh Vogel: A copy of our earnings press release is available on our website at crosscountry.com. Please note that certain statements made on this call may constitute forward-looking statements. These statements reflect the company's beliefs based upon information currently available to it.

Speaker #2: A copy of our earnings press release is available on our website at crosscountry.com. Please note that certain statements made on this call may constitute forward-looking statements.

Speaker #2: These statements reflect the company's beliefs based upon information currently available to it. As noted in our press release, forward-looking statements can vary materially from actual results and are subject to known and unknown risks, uncertainties, and other factors, including those contained in the company's 2024 annual report on Form 10-K and quarterly reports on with the SEC.

Josh Vogel: As noted in our press release, forward-looking statements can vary materially from actual results and are subject to known and unknown risks, uncertainties and other factors, including those contained in the company's 2024 annual report on Form 10-K and quarterly reports on Form 10-Q, as well as in other filings with the SEC. The Company does not intend to update guidance or any of its forward-looking statements prior to the next earnings release. Additionally, we reference non-GAAP financial measures such as Adjusted EBITDA or Adjusted Earnings Per Share. Such non-GAAP financial measures are provided as additional information and should not be considered substitutes for or superior to those calculated in accordance with U.S. GAAP. More information related to these non-GAAP financial measures is contained in our press release. With that, I will now turn the call over to our Chief Executive Officer, Kevin Clark.

Speaker #2: The company does not intend to update guidance or any of its forward-looking statements prior to the next earnings release. Additionally, we reference non-GAAP financial measures, such Form 10-Q, as well as in other filings as adjusted EBITDA or adjusted earnings per share.

Josh Vogel: Additionally, we reference non-GAAP financial measures such as Adjusted EBITDA or Adjusted Earnings Per Share. Such non-GAAP financial measures are provided as additional information and should not be considered substitutes for or superior to those calculated in accordance with U.S. GAAP. More information related to these non-GAAP financial measures is contained in our press release. With that, I will now turn the call over to our Chief Executive Officer, Kevin Clark.

Speaker #2: Such non-GAAP financial measures are provided as additional information and should not be considered substitutes for or superior to those calculated in accordance with US GAAP.

Speaker #2: financial measures is contained in our press release. With that, I will now turn the call over to our Chief Executive Officer, Kevin Clark.

Speaker #3: Good afternoon, and thank you for joining

Speaker #3: Good afternoon, and thank you for joining us. As you know, 2025 was a challenging year for Cross Country Healthcare. The pending merger introduced uncertainty for our employees and our customers, which weighed on our growth during the year.

Kevin C. Clark: Good afternoon. Thank you for joining us. As you know, 2025 was a challenging year for Cross Country Healthcare. The pending merger introduced uncertainty for our employees and our customers, which weighed on our growth during the year. With that process now behind us, we have improved momentum and a renewed focus across the organization. What did not change was the strength of our client relationships, the quality of our clinicians, or the financial strength of our balance sheet. I stepped back into the CEO role with a clear objective: restore momentum, sharpen execution, and position the company to grow faster than the market again. As reflected in the recent Becker's article on Cross Country, we are advancing a strategy built on operational rigor, technology-powered workforce solutions, and disciplined capital allocation to drive long-term shareholder value.

Speaker #3: With that process now More information related to these non-GAAP behind us, we have improved momentum and a renewed focus across the organization. However, what did not change was the strength of our client relationships, the quality of our clinicians, or the financial strength of our balance sheet.

Speaker #3: I step back into the CEO role with a clear objective: restore momentum, sharpen execution, and position the company to grow faster than the market again.

Kevin C. Clark: I stepped back into the CEO role with a clear objective: restore momentum, sharpen execution, and position the company to grow faster than the market again. As reflected in the recent Becker's article on Cross Country, we are advancing a strategy built on operational rigor, technology-powered workforce solutions, and disciplined capital allocation to drive long-term shareholder value.

Speaker #3: As reflected in the recent Becker's article on CROSS COUNTRY, we are advancing a strategy built on operational rigor, technology-powered workforce solutions, and disciplined capital allocation to drive long-term shareholder value.

Speaker #3: We enter 2026 with no debt and a significant amount of cash, providing us the flexibility to invest in growth initiatives that generate durable returns.

Kevin C. Clark: We enter 2026 with no debt and a significant amount of cash, providing us the flexibility to invest in growth initiatives that generate durable returns. Our priorities are straightforward. Simply put, we must expand our market share within large health systems, capture new logos across our divisions, improve operational efficiency and speed to fill, and leverage technology as a differentiator. I am confident that this will be a year of execution and acceleration. The opportunity in front of us is meaningful, and with disciplined execution and renewed commercial focus, we expect to return to revenue and earnings growth by the end of 2026.

Speaker #3: Our priorities are straightforward: simply put, we must expand our market share within large health systems, capture new logos across our divisions, improve operational efficiency, and speed to fill, and leverage technology as a differentiator.

Speaker #3: I am confident that this will be a year of execution and acceleration. The opportunity in front of us is meaningful, and with disciplined execution and renewed commercial focus, we expect to return to revenue and earnings growth by the end of 2026.

Kevin C. Clark: I am confident that this will be a year of execution and acceleration. The opportunity in front of us is meaningful, and with disciplined execution and renewed commercial focus, we expect to return to revenue and earnings growth by the end of 2026.

Speaker #3: Now, turning to our business performance, I'll start with discussing the markets we serve and the actions we are taking to achieve growth in 2026 and beyond.

Kevin C. Clark: Now turning to our business performance, I'll start with discussing the markets we serve and the actions we are taking to achieve growth in 2026 and beyond. Looking at the healthcare staffing market and travel in particular, we believe that the industry has stabilized and is poised for growth in 2026. With stability in both demand and in bill rates, clients are increasingly focused on the speed to fill rather than reducing contingent labor, signaling a shift to a more normal operating environment. This is evident in our weekly production since the start of the year, which has outpaced the Q4. For the first time in more than 3 years, we are anticipating travel to be flat to up slightly on a sequential basis, with projected travelers on assignment growing each month into the Q2. Contributing to the improved production is our growing book of business.

Speaker #3: Looking at the healthcare staffing market, and travel in particular, we believe that the industry has stabilized and is poised for growth in 2026. With stability in both demand and in bill rates, clients are increasingly focused on the speed to fill rather than reducing contingent labor, signaling a shift to a more normal operating environment.

Speaker #3: This is evident in our weekly production since the start of the year, which has outpaced the fourth quarter. For the first time in more than three years, we are anticipating travel to be flat to up slightly on a sequential basis, with projected travelers on assignment growing each month into the second quarter.

Kevin C. Clark: This is evident in our weekly production since the start of the year, which has outpaced the Q4. For the first time in more than 3 years, we are anticipating travel to be flat to up slightly on a sequential basis, with projected travelers on assignment growing each month into the Q2. Contributing to the improved production is our growing book of business.

Speaker #3: Contributing to the improved production is our growing book of business. As highlighted in our third quarter 2025 earnings release, we successfully renewed, expanded, and won more than $400 million in contract value, predominantly with our MSP clients.

Kevin C. Clark: As highlighted in our Q3 2025 earnings release, we successfully renewed, expanded, and won more than $400 million in contract value, predominantly with our MSP clients. Given our robust pipeline of sales activity across multiple business lines, we are well-positioned to expand our portfolio and secure new clients in 2026. Shifting to gross margin, we expect travel will continue to experience a tight bill-pay spread as competitors jockey for market share. As a leader in this space, Cross Country will remain competitive to protect and grow clinicians on assignment. Although we do not anticipate margin pressure easing for the travel business in the near term, we will seek to maintain and expand our consolidated gross margins through growth in our higher margin businesses, which had aggregate annual revenues over $350 million last year.

Speaker #3: Given our robust pipeline of sales activity across multiple business lines, we are well positioned to expand our portfolio and secure new clients in 2026.

Speaker #3: Shifting to gross margin, we expect travel will continue to experience a tight bill-pay spread as competitors jockey for market share. As a leader in this space, Cross Country will remain competitive to protect and grow clinicians on assignment.

Kevin C. Clark: As a leader in this space, Cross Country will remain competitive to protect and grow clinicians on assignment. Although we do not anticipate margin pressure easing for the travel business in the near term, we will seek to maintain and expand our consolidated gross margins through growth in our higher margin businesses, which had aggregate annual revenues over $350 million last year.

Speaker #3: Although we do not anticipate margin pressure easing for the travel business in the near term, we will seek to maintain and expand our consolidated gross margins through growth in our higher margin businesses.

Speaker #3: Which had aggregate annual revenues over $350 million last year. We see a path for growth across all our lines of business through our growing proprietary technology portfolio anchored by Intellifi, our market-leading workforce intelligence platform that supports virtually all of our MSP and vendor-neutral programs.

Kevin C. Clark: We see a path for growth across all our lines of business through our growing proprietary technology portfolio anchored by Intellify, our market-leading workforce intelligence platform that supports virtually all of our MSP and vendor-neutral programs. Through this technology, we've delivered predictive visibility, optimized clinician deployment, and improved labor cost management for health systems. At its core, Intellify is a highly scalable VMS capable of managing all staffing categories, including physicians, per diem, and internal resource pools or travel programs. We are seeing growing interest from other staffing organizations seeking to leverage the platform within their own offerings. In 2026, we plan to expand Intellify into the home-based and education staffing markets, extending its reach into adjacent sectors that demand scalable workforce solutions.

Speaker #3: Through this technology, we've delivered predictive visibility, optimized clinician deployment, and improved labor cost management for health systems. At its core, Intellifi is a highly scalable VMS capable of managing all staffing categories including physicians, per diem, and internal resource pools or travel programs.

Kevin C. Clark: At its core, Intellify is a highly scalable VMS capable of managing all staffing categories, including physicians, per diem, and internal resource pools or travel programs. We are seeing growing interest from other staffing organizations seeking to leverage the platform within their own offerings. In 2026, we plan to expand Intellify into the home-based and education staffing markets, extending its reach into adjacent sectors that demand scalable workforce solutions.

Speaker #3: And we are seeing growing interest from other staffing organizations seeking to leverage the platform within their own offerings. In 2026, we plan to expand Intellifi into the home-based and education staffing markets, extending its reach into adjacent sectors that demand scalable workforce solutions.

Speaker #3: Our software portfolio also includes experience in established mobile platform actively used by healthcare professionals to discover opportunities and manage their careers digitally, strengthening engagement and retention across our talent network.

Kevin C. Clark: Our software portfolio also includes Xperience, an established mobile platform actively used by healthcare professionals to discover opportunities and manage their careers digitally, strengthening engagement and retention across our talent network. Our staffing business remains a strong foundation, but our long-term growth strategy is increasingly powered by our proprietary technology portfolio, enhancing client value, improving efficiency, expanding margins, and creating scalable recurring revenue streams. These solutions represent the continued evolution of our broader technology roadmap. Our objective is not to move away from staffing, but to transform how workforce solutions are delivered. Our other technology priorities involve automation across the enterprise through AI and other means, such as the rollout of the middle office functionality within our ERP. Unleashing the power of AI will improve speed to market and boost recruiter productivity, while the completion of the ERP project will improve our efficiency in back-office operations.

Speaker #3: Our staffing business remains a strong foundation, but our long-term growth strategy is increasingly powered by our proprietary technology portfolio. Enhancing client value, improving efficiency, expanding margins, and creating scalable, recurring revenue streams.

Speaker #3: These solutions represent the continued evolution of our broader technology roadmap. Our objective is not to move away from staffing but to transform how workforce solutions are delivered.

Kevin C. Clark: These solutions represent the continued evolution of our broader technology roadmap. Our objective is not to move away from staffing, but to transform how workforce solutions are delivered. Our other technology priorities involve automation across the enterprise through AI and other means, such as the rollout of the middle office functionality within our ERP. Unleashing the power of AI will improve speed to market and boost recruiter productivity, while the completion of the ERP project will improve our efficiency in back-office operations.

Speaker #3: Our other technology priorities involve automation across the enterprise through AI and other means, such as the rollout of the middle office functionality within our ERP.

Speaker #3: Unleashing the power of AI will improve speed to market and boost recruiter productivity, while the completion of the ERP project will improve our efficiency and back office operations.

Speaker #3: It's clear that technology is central to how we will grow and deliver better outcomes while improving efficiency and productivity. But it is not the only lever we are pulling to drive top-line growth.

Kevin C. Clark: It's clear that technology is central to how we will grow and deliver better outcomes while improving efficiency and productivity. It is not the only lever we are pulling to drive top-line growth. Since the start of the year, we have made conscious and purposeful investments in revenue producers across the organization, primarily funded by redeploying cost savings we were able to identify and act quickly upon. In Q1, we have added several dozen revenue producers, including recruiters, account managers, and sales professionals, and we are already seeing positive results from these investments. Looking ahead, I believe we will see sequential progression across 2026 with both top-line growth and improved profitability.

Speaker #3: Since the start of the year, we have made conscious and purposeful investments in revenue producers across the organization. Primarily funded by redeploying cost savings we were able to identify and act quickly upon.

Speaker #3: In the first quarter, we have added several dozen revenue producers, including recruiters, account managers, and sales professionals, and we are already seeing positive results from these investments.

Kevin C. Clark: In Q1, we have added several dozen revenue producers, including recruiters, account managers, and sales professionals, and we are already seeing positive results from these investments. Looking ahead, I believe we will see sequential progression across 2026 with both top-line growth and improved profitability.

Speaker #3: Looking ahead, I believe we will see sequential progression across 2026 with both top-line growth and improved profitability. Bill will cover the first quarter guidance, but our goal is to exit 2026 with a revenue run rate north of $1 billion and an adjusted EBITDA margin of 4 to 5 percent, and on a path to higher margins for 2027.

Kevin C. Clark: Bill will cover the Q1 guidance, but our goal is to exit 2026 with a revenue run rate north of $1 billion and an Adjusted EBITDA margin of 4% to 5%, and on a path to higher margins for 2027. With a strong balance sheet and more than $100 million in cash on hand, we are well-positioned to accomplish our goals. We will be diligent and purposeful in deploying capital with an eye towards a mix of complementary acquisitions and returning capital to shareholders through continued share repurchases. One of the biggest strengths for Cross Country is our high-performing, highly engaged team, both here in the US and in our center of excellence in India.

Speaker #3: With a strong balance sheet and more than $100 million in cash on hand, we are well-positioned to accomplish our goals. We will be diligent and purposeful in deploying capital, with an eye towards a mix of complementary acquisitions and returning capital to shareholders through continued share repurchases.

Kevin C. Clark: We will be diligent and purposeful in deploying capital with an eye towards a mix of complementary acquisitions and returning capital to shareholders through continued share repurchases. One of the biggest strengths for Cross Country is our high-performing, highly engaged team, both here in the US and in our center of excellence in India.

Speaker #3: One of the biggest strengths for Cross Country is our high-performing, highly engaged team, both here in the US and in our Center of Excellence in India.

Speaker #3: I've had the pleasure of seeing a lot of familiar faces as well as meeting new ones over the past three months. And I could tell you that I'm truly excited by their focus: energy, teamwork, and execution.

Kevin C. Clark: I've had the pleasure of seeing a lot of familiar faces, as well as meeting new ones over the past three months, and I can tell you that I'm truly excited by their focus, energy, teamwork, and execution. I want to take this moment to thank all of our employees for your hard work and steadfast commitment to making Cross Country the best in the industry. I also want to thank all of our healthcare professionals for your continued dedication and contributions, as well as our shareholders for believing in the company. In closing, I'm excited to be back, and I am equally excited about what lies ahead for Cross Country. With that, let me turn the call over to Bill.

Speaker #3: I want to take this moment to thank all of our employees for your hard work and steadfast commitment to making Cross Country the best in the industry.

Speaker #3: I also want to thank all of our healthcare professionals for your continued dedication and contributions, as well as our shareholders for believing in the company.

Kevin C. Clark: I also want to thank all of our healthcare professionals for your continued dedication and contributions, as well as our shareholders for believing in the company. In closing, I'm excited to be back, and I am equally excited about what lies ahead for Cross Country. With that, let me turn the call over to Bill.

Speaker #3: In closing, I'm excited to be back, and I'm equally excited about what lies ahead for CROSS COUNTRY. With that, let me turn the call over to Bill.

Speaker #4: Thanks, Kevin, and good afternoon, everyone. It's great to be speaking with you all again and to share some insights on our results, as well as the business.

William J. Burns: Thanks, Kevin. Good afternoon, everyone. It's great to be speaking with you all again and to share some insights on our results as well as the business. Since we've not held quarterly earnings calls throughout the past year due to the merger, I'll spend a bit of time focusing on the full year in addition to the most recent quarter. As noted in today's press release, consolidated revenue for Q4 was $237 million, down 5% sequentially and 24% over the prior year. While full-year revenue was $1.05 billion, down 22% from the prior year. The majority of the decline for both the quarter and the year stems from the prolonged period of normalizing contingent utilization by clients across our core Nurse and Allied Staffing businesses, most notably Travel Nurse and Allied.

Speaker #4: Since we've not held quarterly earnings calls throughout the past year due to the merger, I'll spend a bit of time focusing on the full year in addition to the most recent quarter.

Speaker #4: As noted in today's press release, consolidated revenue for the fourth quarter was $237 million, down 5 percent sequentially in 24 percent over the prior year, while full-year revenue was $1.05 billion, down 22 percent from the prior year.

William J. Burns: As noted in today's press release, consolidated revenue for Q4 was $237 million, down 5% sequentially and 24% over the prior year. While full-year revenue was $1.05 billion, down 22% from the prior year. The majority of the decline for both the quarter and the year stems from the prolonged period of normalizing contingent utilization by clients across our core Nurse and Allied Staffing businesses, most notably Travel Nurse and Allied.

Speaker #4: The majority of the decline for both the quarter and the year stems from the prolonged period of normalizing contingent utilization by clients across our core nurse and allied businesses, most notably travel nurse and allied.

Speaker #4: I'll go into the segments in more depth in just a few minutes. But we're pleased to see a slow turning in those businesses as we enter 2026, pointing to a return to a more normal cycle for contingent labor.

William J. Burns: I'll go into the segments in more depth in just a few minutes, but we're pleased to see a slow turning in those businesses as we enter 2026, pointing to a return to a more normal cycle for contingent labor. Gross profit for the quarter was $48 million, which represented a gross margin of 20.3%. Gross margin was down 10 basis points sequentially, but up 30 basis points over the prior year. Throughout the year, gross margin was relatively stable, ranging between 20% and 20.4%, with the majority of the fluctuation stemming from mix shifts across the portfolio, which partially muted the continued margin pressure within Travel. Moving down the income statement, selling, general and administrative expense was $51 million for the quarter, up 9% sequentially and down 8% over the prior year.

Speaker #4: Gross profit for the quarter was $48 million, which represented a gross margin of 20.3 percent. Gross margin was down 10 basis points sequentially, but up 30 basis points over the prior year.

Speaker #4: Throughout the year, gross margin was relatively stable, ranging between 20.0% and 20.4%, with the majority of the fluctuation stemming from mix shifts across the portfolio, which partially muted the continued margin pressure within travel.

William J. Burns: Throughout the year, gross margin was relatively stable, ranging between 20% and 20.4%, with the majority of the fluctuation stemming from mix shifts across the portfolio, which partially muted the continued margin pressure within Travel. Moving down the income statement, selling, general and administrative expense was $51 million for the quarter, up 9% sequentially and down 8% over the prior year.

Speaker #4: Moving down the income statement, selling general administrative expense was $51 million for the quarter. Up 9 percent sequentially and down 8 percent over the prior year.

Speaker #4: Full-year SG&A was $200 million, compared with $233 million in the prior year, down 14 percent. SG&A for the quarter and the year included non-recurring severance costs related to the recent CEO change.

William J. Burns: Full-year SG&A was $200 million compared with $233 million in the prior year, down 14%. SG&A for the quarter and the year included non-recurring severance costs related to the recent CEO change. Excluding those costs, SG&A would have been $43 million for the quarter and $186 million for the full year, representing declines of 19% and 16% over the respective prior year periods. The majority of the reduction in SG&A comes from the reductions in US headcount, which was down 21% from the start of the year. We continue to tightly manage our costs as well as leverage technology and our center of excellence in India to reduce our overall cost of labor.

Speaker #4: Excluding those costs, SG&A would have been $43 million for the quarter and $186 million for the full year, representing declines of 19 and 16 percent over the respective prior year periods.

Speaker #4: The majority of the reduction in SG&A comes from the reductions in US headcount, which was down 21 percent from the start of the year.

William J. Burns: The majority of the reduction in SG&A comes from the reductions in US headcount, which was down 21% from the start of the year. We continue to tightly manage our costs as well as leverage technology and our center of excellence in India to reduce our overall cost of labor.

Speaker #4: We continue to tightly manage our costs, as well as leverage technology and our center of excellence in India to reduce our overall cost of labor.

Speaker #4: Coming into states, we anticipate that we will identify further cost savings as we progress through the year. As Kevin highlighted in his comments, we are redeploying some of those cost savings with investments in revenue producers.

William J. Burns: Coming into 2026, we further reduced headcount in the United States and anticipate we will identify further cost savings as we progress through the year. As Kevin highlighted in his comments, we are redeploying some of those cost savings with investments in revenue producers, which we anticipate will fuel organic growth throughout the year. Adjusted EBITDA was $4 million for the quarter and $27 million for the full year, which as a percent of revenue was 1.7% for the quarter and 2.5% for the full year. The decline in margin across the year was driven primarily by declines in revenue and continued bill-pay spread compression, most notably in Travel, and partly offset by the cost savings I mentioned a moment ago.

Speaker #4: Which we anticipate will fuel organic growth throughout the year. Adjusted EBITDA was $4 million for the quarter and $27 million for the full year, which, as a percent of revenue, was 1.7 percent for the quarter and 2.5 percent for the full year.

William J. Burns: Adjusted EBITDA was $4 million for the quarter and $27 million for the full year, which as a percent of revenue was 1.7% for the quarter and 2.5% for the full year. The decline in margin across the year was driven primarily by declines in revenue and continued bill-pay spread compression, most notably in Travel, and partly offset by the cost savings I mentioned a moment ago.

Speaker #4: The decline in margin across the year was driven primarily by pay spread compression, most notably in travel. And partly offset by the cost savings I mentioned a moment ago.

Speaker #4: I'll speak to guidance in a moment, but as we progress through 2026, we expect to see improved operating margins as we realize organic top-line growth and continued operational efficiencies.

William J. Burns: I'll speak to guidance in a moment. As we progress through 2026, we expect to see improved operating margins as we realize organic top-line growth and continued operational efficiencies. Below Adjusted EBITDA, there are a number of items to call out. First, with the recent decline in share price following the termination of the merger agreement, the company recorded non-cash impairment charges of $78 million, principally related to the indefinite lived assets such as goodwill, as well as the abandonment of certain trade names. Acquisition integration charges were a net credit of $16 million for the quarter and $3 million for the full year due to the receipt of the $20 million merger termination payment.

Speaker #4: Below adjusted EBITDA, there are a number of items to call out. First, with the recent decline in share price following the termination of the merger agreement, the company recorded non-cash impairment charges of $78 million, principally related to indefinite-lived assets such as goodwill, as well as the abandonment of certain trade names.

William J. Burns: First, with the recent decline in share price following the termination of the merger agreement, the company recorded non-cash impairment charges of $78 million, principally related to the indefinite lived assets such as goodwill, as well as the abandonment of certain trade names. Acquisition integration charges were a net credit of $16 million for the quarter and $3 million for the full year due to the receipt of the $20 million merger termination payment.

Speaker #4: Acquisition and integration charges were a net credit of $16 million for the quarter and $3 million for the full year, due to the receipt of the $20 million merger termination payment.

Speaker #4: We also recognized net interest income of $300,000 for the quarter and $1 million for the full year, as we maintained a substantial cash position and had no debt outstanding aside from letters of credit.

William J. Burns: We also recognized net interest income of $300,000 for Q4 and $1 million for the full year as we maintained a substantial cash position and had no debt outstanding aside from letters of credit. As we progress through the year, we will be exploring the renewal and rightsizing of our credit facility in an effort to bring down the carrying costs of the unused facility. Finally, on the income statement, we realized an income tax expense of $12 million in Q4 and $11 million for the full year. The significant impairment charge noted a moment ago triggered the recognition of a valuation allowance on our deferred tax assets. However, the company fully expects to utilize all of its NOLs as profitability improves. Turning to the segments.

Speaker #4: As we progress through the year, we will be exploring the renewal and rightsizing of our credit facility in an effort to bring down the carrying costs for the unused facility.

Speaker #4: And finally, on the income statement, we realized an income tax expense of $12 million in the quarter and $11 million for the full year.

William J. Burns: Finally, on the income statement, we realized an income tax expense of $12 million in Q4 and $11 million for the full year. The significant impairment charge noted a moment ago triggered the recognition of a valuation allowance on our deferred tax assets. However, the company fully expects to utilize all of its NOLs as profitability improves. Turning to the segments.

Speaker #4: The significant impairment charge noted a moment ago triggered the recognition of a valuation allowance on our deferred tax assets. However, the company fully expects to utilize all of its NOLs as profitability improves.

Speaker #4: Turning to the segments, nurse and allied reported revenue for the quarter of $194 million, down 4 percent sequentially and 24 percent from the prior year.

William J. Burns: Nurse and Allied reported revenue for the quarter of $194 million, down 4% sequentially and 24% from the prior year. Travel, our largest business within Nurse and Allied, was down 9% sequentially and 30% from the prior year, entirely driven by a decline in travelers on assignment as average bill rates remained stable. As Kevin highlighted, we are optimistic that the travel staffing market appears to be reaching an inflection point as we are seeing the average number of travelers on assignment holding steady in Q1. We project that to rise into Q2 despite seasonal winter needs subsiding at the end of Q1. Our local or per diem business closed the year with $19 million in revenue, which was down 8% sequentially, a slightly faster decline relative to Travel.

Speaker #4: Travel, our largest business within nurse and allied, was down 9 percent sequentially and 30 percent from the prior year, entirely driven by a decline in travelers on assignment.

Speaker #4: As average bill rates remain stable. As Kevin highlighted, we are optimistic that the travel staffing market appears to be reaching an inflection point, as we are seeing the average number of travelers on assignment holding steady in the first quarter, and we project that to rise into the second quarter, despite seasonal winter needs subsiding at the end of the first quarter.

William J. Burns: As Kevin highlighted, we are optimistic that the travel staffing market appears to be reaching an inflection point as we are seeing the average number of travelers on assignment holding steady in Q1. We project that to rise into Q2 despite seasonal winter needs subsiding at the end of Q1. Our local or per diem business closed the year with $19 million in revenue, which was down 8% sequentially, a slightly faster decline relative to Travel.

Speaker #4: Our local, or PDM, business closed the year with $19 million in revenue, which was down 8 percent sequentially—a slightly faster decline relative to travel.

Speaker #4: We continue to believe this roughly $80 million business plays an important part in meeting client needs for urgent needs at the of clinicians at the ship level, and continues to operate with a gross margin close to our consolidated average, which remains several hundred basis points higher than our travel business.

William J. Burns: We continue to believe this roughly $80 million business plays an important part in meeting client needs for urgent needs of clinicians at the shift level and continues to operate with a gross margin close to our consolidated average, which remains several hundred basis points higher than our Travel business. Also within Nurse and Allied, our education staffing business reported revenue of $18 million, up 48% sequentially as schools returned from the summer recess. We saw this business decline approximately 7% on a year-over-year basis, largely driven by the insourcing of roles with several of our larger clients. For the full year, education revenue was $71 million, with a gross margin of approximately 28%, and we believe this business will return to growth in 2026.

Speaker #4: Also, within nurse and allied, our education staffing business reported revenue of $18 million, up 48 percent sequentially, as schools returned from the summer recess.

Speaker #4: We saw this business decline approximately 7 percent on a year-over-year basis, largely driven by the insourcing of roles at several of our larger clients.

William J. Burns: We saw this business decline approximately 7% on a year-over-year basis, largely driven by the insourcing of roles with several of our larger clients. For the full year, education revenue was $71 million, with a gross margin of approximately 28%, and we believe this business will return to growth in 2026.

Speaker #4: For the full-year education revenue was $71 million, with a gross margin of approximately 28 percent, and we believe this business will return to growth in 2026.

Speaker #4: Finally, our home-based staffing business once again experienced strong organic growth, with revenue of $34 million in the fourth quarter, up 34 percent over the prior year.

William J. Burns: Finally, our home-based staffing business once again experienced strong organic growth with revenue of $34 million in Q4, up 34% over the prior year. We anticipate the growth trajectory for this business will continue, especially with an aging US population and strong evidence remaining in the home drives better outcomes at a lower cost. Looking at our only other segment, Physician Staffing reported $43 million in revenue, which was down 20% from the prior year and 12% sequentially, principally due to a decline in billable days across several of our top specialties such as hospitalists, anesthesia, and CRNAs. Revenue per day filled was up 10% year-over-year, driven by modest increases in bill rates as well as favorable mix. Turning to the balance sheet, we ended Q4 with $109 million in cash and no outstanding debt.

Speaker #4: We anticipate the growth trajectory for this business will continue, especially with an aging U.S. population and strong evidence that remaining in the home drives better outcomes at a lower cost.

Speaker #4: Looking at our only other segment, physician staffing reported $43 million in revenue, which was down 20 percent from the prior year and 12 percent sequentially, principally due to a decline in billable days across several of our top specialties, such as hospitalists, anesthesia, and CRNAs.

William J. Burns: Looking at our only other segment, Physician Staffing reported $43 million in revenue, which was down 20% from the prior year and 12% sequentially, principally due to a decline in billable days across several of our top specialties such as hospitalists, anesthesia, and CRNAs. Revenue per day filled was up 10% year-over-year, driven by modest increases in bill rates as well as favorable mix. Turning to the balance sheet, we ended Q4 with $109 million in cash and no outstanding debt.

Speaker #4: Revenue per day filled was up 10 percent year-over-year, driven by modest increases in bill rates as well as favorable mix. Turning to the balance sheet, we ended the fourth quarter with $109 million in cash and no outstanding debt.

Speaker #4: With the help of our balance sheet, we remain well positioned to make strategic investments as well as execute on our capital allocation strategy. In December, we repurchased more than $800,000 shares of our common stock, or $2.5 percent of the shares outstanding.

William J. Burns: With the health of our balance sheet, we remain well-positioned to make strategic investments as well as execute on our capital allocation strategy. In December, we repurchased more than 800,000 shares of our common stock, or 2.5% of the shares outstanding, at an aggregate price of $6.8 million. In Q1 2026, we continued to repurchase shares under our 10b5-1 trading plan, and as of today have bought an additional 486,000 shares. Given we believe that our stock does not reflect the underlying value of our business, we anticipate making further share repurchases throughout the balance of the year. From a cash flow perspective, we generated $18 million in cash from operations during the quarter and $48 million for the full year.

Speaker #4: At an aggregate price of $6.8 million. In the first quarter of 2026, we continue to repurchase shares under our 10(b)(5)(1) trading plan, and as of today, have bought an additional $486,000 shares.

Speaker #4: Given we believe that our stock does not reflect the underlying value of our business, we anticipate making further share repurchases throughout the balance of the year.

William J. Burns: Given we believe that our stock does not reflect the underlying value of our business, we anticipate making further share repurchases throughout the balance of the year. From a cash flow perspective, we generated $18 million in cash from operations during the quarter and $48 million for the full year.

Speaker #4: From a cash flow perspective, we generated $18 million in cash from operations during the quarter and $48 million for the full year. Included in these amounts were the costs relating to the merger transaction incurred throughout the year, and the subsequent termination payment, which essentially offset those costs incurred on a year-to-date basis.

William J. Burns: Included in these amounts were the costs relating to the merger transaction incurred throughout the year and the subsequent termination payment, which essentially offset those costs incurred on a year-to-date basis. Our DSO in the Q4 was 58 days, in line with our stated goal of 60 days. Cash used in investing activities was $2 million, primarily reflecting capitalized technology investments related to ongoing projects such as the continued expansion of features and functionality for Intellify, as well as our candidate-facing platform Xperience. Cash used in financing activities was reflective of the share repurchase that I noted a moment ago, as well as the final payments of contingent consideration related to Mint Medical acquisitions completed in 2022. This brings me to our outlook for the Q1. We're guiding to revenue of between $235 million and $240 million.

Speaker #4: Our DSO in the fourth quarter was $58 days, in line with our stated goal of 60 days. Cash used in investing activities was $2 million, primarily reflecting capitalized technology investments related to ongoing projects such as the continued expansion of features and functionality for IntelliFi, as well as our candidate-facing platform experience.

William J. Burns: Cash used in financing activities was reflective of the share repurchase that I noted a moment ago, as well as the final payments of contingent consideration related to Mint Medical acquisitions completed in 2022. This brings me to our outlook for the Q1. We're guiding to revenue of between $235 million and $240 million.

Speaker #4: Cash used in financing activities was reflective of the share repurchase that I noted a moment ago, as well as the final payments of contingent consideration related to Mint the Modus acquisitions completed in 2022.

Speaker #4: This brings me to our outlook for the first quarter. We're guiding to revenue of between $235 and $240 million. The sequential increase is being driven by organic revenue growth in the number of travelers on assignment, as well as a small amount of labor disruption revenue.

William J. Burns: The sequential increase is being driven by organic revenue growth in the number of travelers on assignment, as well as a small amount of labor disruption revenue. We are extremely encouraged to see the number of travelers rising throughout Q1 and anticipate to exit the quarter 2% higher than the Q4 average. We are guiding to an Adjusted EBITDA range of between $4 million to $5 million, representing an Adjusted EBITDA margin of approximately 2%. As a reminder, we expect payroll tax to negatively impact Q1 by approximately $2 million. Adjusted Earnings Per Share is expected to be a loss of between $0.04 to $0.06 based on an average share count of approximately 31.5 million shares.

Speaker #4: We are extremely encouraged to see the number of travelers rising throughout the first quarter, and anticipate to exit the quarter at 2 percent higher than the fourth quarter average.

Speaker #4: We are guiding to an adjusted EBITDA range of between $4 million and $5 million, representing an adjusted EBITDA margin of approximately 2 percent. As a reminder, we expect payroll tax to negatively impact the first quarter by approximately $2 million.

William J. Burns: We are guiding to an Adjusted EBITDA range of between $4 million to $5 million, representing an Adjusted EBITDA margin of approximately 2%. As a reminder, we expect payroll tax to negatively impact Q1 by approximately $2 million. Adjusted Earnings Per Share is expected to be a loss of between $0.04 to $0.06 based on an average share count of approximately 31.5 million shares.

Speaker #4: Adjusted earnings per share is expected to be a loss of between 4 and 6 cents, based on an average share count of approximately 31 and a half million shares.

Speaker #4: Also, assumed in this guidance is a gross margin of 19.5 to 20 percent, net interest income of $300,000, depreciation and amortization of $4 million, stock-based compensation of 1.3 million, and a tax provision of approximately $400,000.

William J. Burns: Also assumed in this guidance is a gross margin of 19.5% to 20%, net interest income of $300,000, depreciation and amortization of $4 million, stock-based compensation of $1.3 million, and a tax provision of approximately $400,000. Though we only guide 1 quarter out, we anticipate that both revenue and profit will improve throughout the year as we aggressively pursue organic revenue growth across all lines of business, as well as continue our cost containment efforts and realize efficiencies through technology and further leverage of our operations in India. Given the investments and improving market conditions, we are looking to exit the year with Q4 revenue above $250 million and an Adjusted EBITDA margin of between 4% and 5%.

William J. Burns: Though we only guide 1 quarter out, we anticipate that both revenue and profit will improve throughout the year as we aggressively pursue organic revenue growth across all lines of business, as well as continue our cost containment efforts and realize efficiencies through technology and further leverage of our operations in India. Given the investments and improving market conditions, we are looking to exit the year with Q4 revenue above $250 million and an Adjusted EBITDA margin of between 4% and 5%. That concludes our prepared remarks, and we'd now like to open the lines for questions. Operator?

Speaker #4: Though we only guide one quarter out, we anticipate that both revenue and profit will improve throughout the year, as we aggressively pursue organic revenue growth across all lines of business.

Speaker #4: As well as continuing our cost containment efforts, we are realizing efficiencies through technology and further leveraging our operations in India. Given the investments and improving market conditions, we are looking to exit the year with fourth quarter revenue above $250 million and an adjusted EBITDA margin of between 4 and 5 percent.

Speaker #4: And that concludes our prepared remarks. We would now like to open the lines for questions. Operator?

William J. Burns: That concludes our prepared remarks, and we'd now like to open the lines for questions. Operator?

Speaker #5: Thank you. At this time, if you would like to ask a question, you may press star one and to withdraw your question, you may press star two.

Operator: Thank you. At this time, if you would like to ask a question, you may press star one, and to withdraw your question, you may press star two. One moment please for the first question. Trevor Romeo with William Blair, your line is open, sir.

Speaker #5: One moment, please, for the first question. Trevor Romeo with William Blair, your line is open, sir.

Speaker #6: Hi, good evening. Thank you very much for taking the questions, and Kevin welcome back. Just wanted to maybe start by following up on your comment, I think, about exiting 2026.

Trevor Romeo: Hi, good evening. Thank you very much for taking the questions. Kevin, welcome back. Just wanted to maybe start by following up on your comment, I think about exiting 2026 at those run rates above $1 billion in revenue and I think 4% to 5% EBITDA margins. First on that, I guess, what is your confidence in achieving that goal? Second, particularly on the margin side, you know, that is quite a bit higher than where you're exiting 2025. Maybe you could just help us understand a bit more, you know, what needs to happen or what levers you need to pull to get up to those margin levels at the end of the year.

Speaker #6: Those run rates above a billion dollars in revenue, and I think four to five percent EBITDA margins. So first on that, I guess, what is your confidence in achieving that goal?

Trevor Romeo: First on that, I guess, what is your confidence in achieving that goal? Second, particularly on the margin side, you know, that is quite a bit higher than where you're exiting 2025. Maybe you could just help us understand a bit more, you know, what needs to happen or what levers you need to pull to get up to those margin levels at the end of the year.

Speaker #6: And then, second, particularly on the margin side, that is quite a bit higher than where you're exiting in '25. So maybe you could just help us understand a bit more what needs to happen, or what levers you need to pull, to get up to those margin levels at the end of the year.

Speaker #7: Yeah, thanks, Trevor. It's great to be back. Look, we have high level of confidence in what we just described in our comments. We have a large pipeline coming out of last year.

William J. Burns: Thanks, Trevor. It's great to be back. Look, we have high level of confidence in what we just described in our comments. We have a large pipeline coming out of last year from the sales side, MSP and VMS. We've got what we think is market-leading technology with Intellify. We have a whole house strategy of bringing Intellify across all of our divisions for our customers. You know, we have a, you know, a terrific balance sheet. As you know, we have cash on hand to invest in the business. We've recently, you know, ramped up our revenue producers, and they're driving great results. We're gonna see quarter-over-quarter growth with our core business. Our second-largest business, we also are very optimistic in Q2 with our locums business as well.

Kevin C. Clark: Thanks, Trevor. It's great to be back. Look, we have high level of confidence in what we just described in our comments. We have a large pipeline coming out of last year from the sales side, MSP and VMS. We've got what we think is market-leading technology with Intellify. We have a whole house strategy of bringing Intellify across all of our divisions for our customers.

Speaker #7: From the sales side, MSP and VMS, we've got what we think is market-leading technology with IntelliFi. We have a whole-house strategy of bringing IntelliFi across all of our divisions for our customers.

Kevin C. Clark: You know, we have a, you know, a terrific balance sheet. As you know, we have cash on hand to invest in the business. We've recently, you know, ramped up our revenue producers, and they're driving great results. We're gonna see quarter-over-quarter growth with our core business. Our second-largest business, we also are very optimistic in Q2 with our locums business as well.

Speaker #7: We have a terrific balance sheet, as you know. We have cash on hand to invest in the business. We've recently ramped up our revenue producers and they're driving great results.

Speaker #7: We're going to see quarter-over-quarter growth with our core business. And our second largest business—we also are very optimistic in the second quarter with our locums business as well.

William J. Burns: You know, things are gonna come together really great. We think the, you know, market has stabilized, and we think we're extremely well-positioned. I'll also point out that, you know, we're excited, you know, with to celebrate this month, our 40th year being in business. For 40 years, Cross Country Healthcare has led this industry with clinical excellence. We are the trusted brand in the marketplace. When I put all those things together, I personally have never been more excited about the market conditions and our own ability to excel. You take a look at our balance sheet and our positive cash flow, you know, and I think we're poised for a lot of growth this year. Bill Burns, you might wanna cover, you know, from the margin perspective, a few more comments.

Kevin C. Clark: You know, things are gonna come together really great. We think the, you know, market has stabilized, and we think we're extremely well-positioned. I'll also point out that, you know, we're excited, you know, with to celebrate this month, our 40th year being in business. For 40 years, Cross Country Healthcare has led this industry with clinical excellence.

Speaker #7: Things are going to come together really great. We think the market has stabilized. And we think we're extremely well positioned. I'll also point out that we're excited to celebrate this month our 40th year being in business.

Speaker #7: For 40 years, cross-country healthcare has led this industry with clinical excellence. We are the trusted brand in the marketplace. So when I put all those things together, I personally have never been more excited about the market conditions in our own ability to excel.

Kevin C. Clark: We are the trusted brand in the marketplace. When I put all those things together, I personally have never been more excited about the market conditions and our own ability to excel. You take a look at our balance sheet and our positive cash flow, you know, and I think we're poised for a lot of growth this year. Bill Burns, you might wanna cover, you know, from the margin perspective, a few more comments.

Speaker #7: And you take a look at our balance sheet and our positive cash flow, and I think we're poised for a lot of growth this year.

Speaker #7: Bill, you might want to cover, from the margin perspective, a few more comments.

Speaker #8: Of course. Hi, Trevor. So look, as Kevin said, I think in his comments, we've made a lot of investments to start out the year.

William J. Burns: Of course. Hi, Trevor. Look, as Kevin said, I think in his comments, we've made a lot of investments to start out the year. We took out several million dollars in costs and redeployed that in revenue producers. Those investments we do expect will. We've already starting to see, you know, return on that investment. That's part of the growth story sequentially. In improving market backdrop and travel, our home care business continues to do very, very well. Education is doing well, as well. You look at that, the trajectory on the top line. I would say from a margin perspective, we're not sitting today looking at a very big gross margin expansion, especially from the pay bill side. I think we're still in a very hyper-competitive market when it comes to that.

Speaker #8: We took out several million dollars in cost and redeployed that in revenue producers. So those investments, we do expect we've already started to see return on that investment.

Speaker #8: So that's part of the growth story sequentially. And improving market backdrop and travel, our home care business continues to do very, very well, education is doing well as well.

William J. Burns: In improving market backdrop and travel, our home care business continues to do very, very well. Education is doing well, as well. You look at that, the trajectory on the top line. I would say from a margin perspective, we're not sitting today looking at a very big gross margin expansion, especially from the pay bill side. I think we're still in a very hyper-competitive market when it comes to that.

Speaker #8: So you look at the trajectory on the top line, but I would say from a margin perspective, we're not sitting today looking at a very big gross margin expansion, especially from the paybill side.

Speaker #8: I think we're still in a very hyper-competitive market when it comes to that. But there will be some margin appreciation notably as the businesses with the margins that are above the consolidated average are home care, our physician business, and our education business.

William J. Burns: There will be some margin appreciation, notably as the businesses with the margins that are above the consolidated average: our home care, our physician business, and our education business. Those will continue to produce a better mix, so the margins will lift up on the gross margin side. In truth, the opportunity to get to the 4% to 5% that Kevin called out is really about operating leverage. Besides the fact that we're gonna get return on the investment, we've got plans to continue to look at offshoring more work to our center of excellence in India. We've got identified actions around automation of activities of the things that we're doing. Candidly, you know, we're not leaving any stone unturned.

Speaker #8: Those will continue to produce a better mix. So the margins will lift up on the gross margin side. But in truth, the opportunity to get to the four to five percent that Kevin called out is really about operating leverage.

Speaker #8: So besides the fact that we're going to get return on the investment, we've got plans to continue to look at offshoring more work to our center of excellence in India.

William J. Burns: Besides the fact that we're gonna get return on the investment, we've got plans to continue to look at offshoring more work to our center of excellence in India. We've got identified actions around automation of activities of the things that we're doing. Candidly, you know, we're not leaving any stone unturned. I think from the standpoint of how we envision exiting the year, north of 250 and that 4% to 5% seems very doable.

Speaker #8: We've got identified actions around automation of activities of the things that we're doing. And candidly, we're not leaving any stone unturned. So I think from the standpoint of how we envision exiting the year, north of 250 and that four to five percent seems very doable.

William J. Burns: I think from the standpoint of how we envision exiting the year, north of 250 and that 4% to 5% seems very doable.

Speaker #6: Great. Thank you both. That was going to be my follow-up on kind of gross margins versus SG&A. So appreciate that too. And then maybe just shifting over to your balance sheet and capital allocation.

Trevor Romeo: Great. Thank you both. I think that was gonna be my follow-up on, kind of gross margin versus SG&A, so appreciate that too. Maybe just shifting over to, you know, your balance sheet and capital allocation. You know, having no debt, I think in this industry seems like a pretty big advantage right now. Maybe specifically thinking about M&A, what kind of opportunities and pipeline do you see out there? I think we've heard from a lot of people in the industry that, you know, travel would benefit from consolidation. Are you still maybe more focused on expanding the non-travel businesses, or would you be more interested in consolidating travel at this point, or how are you thinking about the acquisition strategy going forward?

Speaker #6: So, having no debt, I think, in this industry seems like a pretty big advantage right now. Maybe specifically thinking about M&A, what kind of opportunities and pipeline do you see out there?

Speaker #6: I think we've heard from a lot of people in the industry that travel would benefit from consolidation. Are you still maybe more focused on expanding the non-travel businesses, or would you be more interested in consolidating travel at this point?

Trevor Romeo: I think we've heard from a lot of people in the industry that, you know, travel would benefit from consolidation. Are you still maybe more focused on expanding the non-travel businesses, or would you be more interested in consolidating travel at this point, or how are you thinking about the acquisition strategy going forward?

Speaker #6: Or how are you thinking about the acquisition strategy going forward?

Kevin C. Clark: Yeah, great question. You know, look, it's a disciplined capital allocation strategy. We're being patient. I will say coming back into the seat and with the termination of the merger, literally the phone has rung off the hook for the last three months. We've had a lot of, you know, interesting discussions and meetings and so forth. You know, we know that our future path is all through our footprint of customers. As we look at kind of strategic allocation of our capital, and we look at acquisitions, you know, we're not, you know, looking at more supply partners, you know, or third-party suppliers. But our ability to invest in our technology platform, to grow our footprint of clients, and our customers, that's areas that we're excited.

Speaker #7: Yeah, great question. Look, it's a disciplined capital allocation strategy. We're being patient. I will say coming back into the seat and with the termination of the merger, literally the phone has rung off the hook for the last three months.

Speaker #7: So we've had a lot of interesting discussions and meetings and so forth. We know that our future path is all through our footprint of customers.

Kevin C. Clark: You know, we know that our future path is all through our footprint of customers. As we look at kind of strategic allocation of our capital, and we look at acquisitions, you know, we're not, you know, looking at more supply partners, you know, or third-party suppliers. But our ability to invest in our technology platform, to grow our footprint of clients, and our customers, that's areas that we're excited.

Speaker #7: So as we look at kind of strategic allocation of our capital, and we look at acquisitions, we're not looking at more supply partners or third-party suppliers.

Speaker #7: But our ability to invest in our technology platform, to grow our footprint of clients, and our customers, that's areas that we're excited. We're also very excited about our home-based staffing division.

Kevin C. Clark: We're also very excited about our home-based staffing division. We think we've had a lot of growth there. We think we'll continue to see a lot of growth. We're looking for accretive tuck-in acquisitions in a division like that. We certainly like the locums area quite a bit. You know, it's being patient. It's looking at, you know, the marketplace. To the point that you made earlier, you know, it's. The other thing is some of our competitors, you know, are over their skis somewhat in terms of their balance sheet, and we think it's an excellent time for us to be in the market with a strong balance sheet, and we'll look to consolidate, you know, where we can.

Speaker #7: We think we've had a lot of growth there. We think we will continue to see a lot of growth. We're looking for creative tuck-in acquisitions in a division like that.

Speaker #7: We certainly like the locums area quite a bit. So it's being patient. It's looking at the marketplace and to the point that you made earlier, the other thing is some of our competitors are over their skis somewhat in terms of their balance sheet.

Kevin C. Clark: To the point that you made earlier, you know, it's. The other thing is some of our competitors, you know, are over their skis somewhat in terms of their balance sheet, and we think it's an excellent time for us to be in the market with a strong balance sheet, and we'll look to consolidate, you know, where we can.

Speaker #7: And we think it's an excellent time for us to be in the market with a strong balance sheet and we'll look to consolidate where we can.

Speaker #6: Okay. I really appreciate it. Thank you.

Trevor Romeo: Okay. I really appreciate it. Thank you.

Speaker #9: Thank you. Our next caller is Constantine Davide from Citizens. Your line is open.

Operator: Thank you. Our next caller is Constantine Davide from Citizens. Your line is open.

Constantine Davides: Thanks. I wanted to maybe touch on technology a little bit. In the release, you put in a lot of metrics around Intellify, and then I think you referenced outsourcing Intellify to some other staffing companies. Wanted to get some color there. When you talk about expanding its use to other markets, is that home care, education, locums? Just a little bit more detail there. You know, what kind of timeframe is there to sort of expand that platform into some of those other markets?

Speaker #10: Thanks. I wanted to maybe touch on technology a little bit. In the release, you put in a lot of metrics around Intellifi, and then I think you referenced outsourcing Intellifi to some other staffing companies.

Speaker #10: So one of the get some color there and then when you talk about expanding its use to other markets, is that home care, education, locums, just a little bit more detail there and then how what kind of timeframe is there to sort of expand that platform into some of those other markets?

Speaker #7: Yeah. I'll start with the last question. The timeframe is 2026. We're excited to have a whole house strategy we believe with the consolidation of large healthcare systems we need to be a provider of solutions, not just for nursing and allied, but also for locums, also for home-based staffing.

Kevin C. Clark: Yeah. Well, I'll start with the last question. The timeframe is 2026. We're excited to have a whole house strategy. We believe with the consolidation of large healthcare systems, you know, we need to be a provider of solutions, not just for nursing and allied, but also for locums, also for home-based staffing. What our strategy is parallels is the continuum of care. The way we have diversified our company is to be wherever we need to be from a talent acquisition perspective, providing solutions to our clients across that continuum of care. You know, the technology that we've built, we've been building it for the last 4 years. We're well on our way to, you know, diversify that offering across all of the divisions.

Speaker #7: What our strategy is parallels is the continuum of care. The way we have diversified our company is to be wherever we need to be from a talent acquisition perspective, providing solutions to our clients across that continuum of care.

Kevin C. Clark: The way we have diversified our company is to be wherever we need to be from a talent acquisition perspective, providing solutions to our clients across that continuum of care. You know, the technology that we've built, we've been building it for the last 4 years. We're well on our way to, you know, diversify that offering across all of the divisions.

Speaker #7: So the technology that we've built—we've been building it for the last four years. We're well on our way to diversify that offering across all of the divisions.

Speaker #7: To your point, we have licensed the technology to other companies in our industry. We have also provided a vendor-neutral BMS strategy in this industry in addition to our MSP.

Kevin C. Clark: We already have, to your point, we have licensed the technology to other companies in our industry. We have also provided a vendor-neutral VMS strategy in this industry in addition to our MSP. We have an existing footprint of locums and VMS for that particular market. you know, these other divisions, you know, we will be coming to market, you know, later this year, hopefully sooner than later. And we'll be happy to update you on that. I don't know, Amiee, do you have any additional comments?

Speaker #7: We have an existing footprint of locums and BMS for the particular market. So these other divisions we will be coming to market later this year hopefully sooner than later and we'll be happy to update you on that.

Speaker #7: I don't know, Amy, do you have any additional comments?

Amiee Hawkins: Kevin, I would just share that we have a really healthy pipeline around those items, all the way through from MSP, VMS to Whole Health. I think, again, I would echo you, more to come early in the year.

Speaker #5: No, Kevin, I would just share that we have a really healthy pipeline around those items, all the way through from MSP, BMS, to whole house.

Aimee Hawkins: Kevin, I would just share that we have a really healthy pipeline around those items, all the way through from MSP, VMS to Whole Health. I think, again, I would echo you, more to come early in the year.

Speaker #5: So I think, again, I would echo you, more to come early in the year.

Speaker #10: Great. And then just a follow-up. Obviously, a lot of strike activity out there in the market. It sounds like you're going to benefit from that somewhat in the first quarter, Bill.

Constantine Davides: Great. Just a follow-up. Obviously, a lot of strike activity out there in the market. It sounds like you're gonna benefit from that somewhat in Q1. Bill, I just wonder if you could size that for us. Then I'm just curious, are there any negative effects from all this activity, just in the sense of your own ability to staff on behalf of your clients?

Speaker #10: I just wonder if you could size that for us. And then, I'm just curious—are there any negative effects from all this activity, just in the sense of your own ability to staff on behalf of your clients?

Kevin C. Clark: Maybe I'll just start, and I'll throw it over to Bill. Look, you know, we've participated in 2 events, 2 strike events, 2 labor disruption events. It's not material for us this quarter. We have a terrific division in Crew forty-eight. You know, we're prepared as, you know, there's future labor disruption events to participate. We have a strong track record of providing crisis staff, you know, historically, and we feel very confident that we could stand up, you know, whatever one of our clients may require. You know, I don't know if you wanna synthesize more on that.

Speaker #7: Maybe I'll just start and I'll throw it over to Bill. Look, we've participated in two events to strike events to labor disruption events. It's not material for us this quarter.

Speaker #7: We have a terrific division in Crew 48. We're prepared as there's future labor disruption events to participate. We have a strong track record of providing crisis staff.

Speaker #7: Historically, and we feel very confident that we could stand up whatever our clients may require. But I don't know if you want to emphasize more on that.

William J. Burns: Yeah. Kevin, I would just say, look, from a labor disruption perspective, to Kevin's point, we supported two. It's not our core business. You know, we will do it certainly with our clients. These events were not our clients, but we will support where it makes sense. We had labor disruption revenue in Q1. It'll be in the single millions. That's why Kevin's saying it's not really overall material, and it's not included in those travel metrics we're talking about with the TOA, with our travelers on assignment, excuse me, that are, is ramping continuously throughout Q1 into Q2.

Speaker #6: Yeah, Constantine, I would just say, look, from a labor disruption perspective, to Kevin's point, we support it too. It's not our core business. We will do it, certainly, with our clients.

Speaker #6: These events were not our clients, but we will support where it makes sense. So we had some labor disruption revenue in the first quarter.

Speaker #6: It'll be in the single millions. That's why Kevin's saying it's not really overall material. And it's not included in those travel metrics we're talking about with the TOA, with our travels on assignment—excuse me—that is ramping continuously throughout the first quarter and into the second quarter.

Speaker #9: And would you like to go to the next question?

Operator: Would you like to go to the next question?

Speaker #6: Yes, please.

Kevin C. Clark: Yes, please.

Speaker #9: Toby Summer with Truist. Your line is open.

Operator: Toby Sommer with Truist, your line is open.

Speaker #10: Thank you. I wanted to ask a question about the sequential momentum that you think you have when you're going into Q2. Is that something you're already seeing in your weekly revenue runs?

Tobey Sommer: Thank you. I wanted to ask a question about the sequential momentum that you think you have when you're going into Q2. Is that something you're already seeing in sort of your weekly revenue runs, or is that a product of putting together the pipeline and the new sales resources and sort of, you know, probability weighting and eventual impact from the combination of those two?

Speaker #10: Or is that a product of putting together the pipeline and the new sales resources, and sort of probability weighting and eventual impact from the combination of those two?

Kevin C. Clark: Hey, Tobey. Nice to hear your voice again. You know, look, I don't wanna, you know, speak in hypotheticals, but, you know, we were under a merger agreement last year, and perhaps our results were suppressed because of that, you know, process that we were through. You know, as we enter 2026, we have a lot of momentum. And this company was poised, I think, for growth because we've seen a stabilization in orders. We have some wonderful clients. If you look at our specific orders, our MSP orders are up from Q4 to Q1. Our MSP and direct orders, I will say. If you look at, you know, in terms of the way we look at a business, I mean, you know, there's plenty of demand out there.

Speaker #7: Hey, Toby. Nice to hear your voice again. Look, I don't want to speak in hypotheticals, but we were under a merger agreement last year, and perhaps our results were suppressed because of that process that we were through.

Speaker #7: So, as we enter 2026, we have a lot of momentum, and this company was poised, I think, for growth because we've seen a stabilization in orders.

Kevin C. Clark: And this company was poised, I think, for growth because we've seen a stabilization in orders. We have some wonderful clients. If you look at our specific orders, our MSP orders are up from Q4 to Q1. Our MSP and direct orders, I will say. If you look at, you know, in terms of the way we look at a business, I mean, you know, there's plenty of demand out there.

Speaker #7: We have some wonderful clients. If you look at our specific orders, our MSP orders are up from Q4 to Q1. Our direct MSP and direct orders, I will say.

Speaker #7: So if you look at in terms of the way we look at the business, I mean, there's plenty of demand out there. There's also plenty of competition.

Kevin C. Clark: There's also plenty of competition. This company, moving forward in this year is all about, you know, sharpened execution, about rigor and discipline, about getting the culture right, restoring the momentum, you know, coming out of that, merger period of time. Marc, you might wanna add some color on this as well.

Speaker #7: But this company, moving forward in this year, is all about sharp execution, about rigor and discipline, about getting the culture right, restoring the momentum, coming out of that merger.

Speaker #7: Period of time. But Mark, you might want to add some color.

William J. Burns: Sure. Hey, Tobey. Yeah, we are realizing some sequential momentum, and we invested heavily in revenue producers late in the year. We have tweaked our model, so they ramp up much faster, and the results are very positive so far. We expect to continue to ramp up and gain momentum. Tobey, this is Bill. I just would add, you know, we're sitting here in March. Obviously, these are 13-week assignments. We have a pretty good lens, you know, certainly into the first 4 to 6 weeks of Q2. We've got a pretty good optimistic view that that is gonna continue on that trajectory. We obviously are following our production weekly and are able to forecast that out.

Marc Krug: Sure. Hey, Tobey. Yeah, we are realizing some sequential momentum, and we invested heavily in revenue producers late in the year. We have tweaked our model, so they ramp up much faster, and the results are very positive so far. We expect to continue to ramp up and gain momentum.

Speaker #6: Sure. Hey, Toby. Yeah, we are realizing some sequential momentum. And we invested heavily in revenue producers late in the year. We have tweaked our model so they ramp up much faster.

Speaker #6: And the results are very positive so far. We expect to continue to ramp up and gain momentum. And Toby, this is Bill. I just would add, we're sitting here in March.

William J. Burns: Tobey, this is Bill. I just would add, you know, we're sitting here in March. Obviously, these are 13-week assignments. We have a pretty good lens, you know, certainly into the first 4 to 6 weeks of Q2. We've got a pretty good optimistic view that that is gonna continue on that trajectory. We obviously are following our production weekly and are able to forecast that out.

Speaker #6: Obviously, these are 13-week assignments. We have a pretty good lens certainly into the first four to six weeks of Q2. So we've got a pretty good optimistic view that that is going to continue on that trajectory.

Speaker #6: We obviously are following our production weekly and are able to forecast that out.

Tobey Sommer: Thank you for that answer. In terms of what you're seeing and what you think the market is like, how would you compare and contrast your own experience? I understand contextually, we've got the merger agreement towards the end of last year and maybe some latent ability to perform better. I'd love to hear whether you're saying that the market is in fact turning or this is really just market stabilization, and you're performing a little bit better.

Speaker #10: And then, thank you for that answer. In terms of what you're seeing and what you think the market is like, how would you compare and contrast your own experience?

Speaker #10: And I understand contextually we've got the merger agreement towards the end of last year, and maybe some latent ability to perform better. But I'd love to hear whether you're saying that the market is in fact turning, or if this is really just market stabilization and you're performing a little bit better.

Speaker #7: Well, I definitely can say we're performing better than we were last year. And our goal, from a historical perspective, is to grow above the market averages.

Kevin C. Clark: Well, I definitely can say we're performing better than we were last year. Our goal is, you know, from a historical perspective, is to grow above the market averages. I think everybody that works in this company feels that way. I think some of the strategic decisions we've made, some of the operating leverage that we have from our center of excellence, for example, in India, some of the technology that we've deployed in the company and are deploying, you know, we are, you know, AI first, you know, technology platform for our client side, but we're also an AI first company from the delivery perspective. We're clearly managing the business better. As I said earlier, you know, direct orders, MSP orders, are up quarter-over-quarter.

Speaker #7: And I think everybody that works in this company feels that way. But I think some of the strategic decisions we've made some of the operating leverage that we have from our center of excellence, for example, in India some of the technology that we've deployed in the company and are deploying we are a AI-first technology platform for our client side, but we're also an AI-first company from the delivery perspective.

Kevin C. Clark: I think some of the strategic decisions we've made, some of the operating leverage that we have from our center of excellence, for example, in India, some of the technology that we've deployed in the company and are deploying, you know, we are, you know, AI first, you know, technology platform for our client side, but we're also an AI first company from the delivery perspective. We're clearly managing the business better. As I said earlier, you know, direct orders, MSP orders, are up quarter-over-quarter.

Speaker #7: So we're clearly managing the business better. But as I said earlier, direct orders MSP orders are up quarter over quarter. I think we've seen stabilization of bill rates.

Kevin C. Clark: I think, you know, we've seen stabilization of bill rates. You know, average bill rates now are around $90 to $95. You know, we didn't get the typical bump up in Allied Health this winter, which means that we won't see a step back in Q2. We'll see, you know, a consistent, you know, quarter-over-quarter improvement in both Allied and Travel Nursing. I think, you know, I can't speak for the rest of the industry, but we're very optimistic. We're very excited about this company. We're very excited about the position that we have and our ability to execute for our customers and grow our market share this year and get back to a trend line where we are, you know, outperforming the industry averages.

Speaker #7: Average bill rates now are around $90 to $95. We didn't get the typical bump up in allied health this winter, which means that we won't see a step back in the second quarter.

Speaker #7: So we'll see a consistent quarter over quarter we've improvement in both allied and travel nursing. So I think I can't speak for the rest of the industry, but we're very optimistic.

Kevin C. Clark: I think, you know, I can't speak for the rest of the industry, but we're very optimistic. We're very excited about this company. We're very excited about the position that we have and our ability to execute for our customers and grow our market share this year and get back to a trend line where we are, you know, outperforming the industry averages.

Speaker #7: We're very excited about this company. We're very excited about the position that we have and our ability to execute for our customers and grow our market share this year and get back to a trend line where we are outperforming the industry averages.

Speaker #10: Thanks. If I could ask two brief ones. What are you hearing from customers about the prospective and prior changes to federal funding within the healthcare system? I guess the subsidies on the exchanges come to mind in terms of current stuff.

Tobey Sommer: Thanks. If I could ask 2 brief ones. What are you hearing from customers about the prospective and prior changes to federal funding within the healthcare system? I guess the subsidies on the exchanges come to mind in terms of sort of current stuff and then Medicaid, you know, in 9 months or a year. Does your Q4 revenue level that you kinda outlined, does that include any kind of strike revenue at this point, or would that be considered sort of core revenue at this stage?

Speaker #10: And then Medicaid, in nine months or a year. And does your fourth quarter revenue level that you kind of outlined—does that include any kind of strike revenue at this point, or would that be considered sort of core revenue at this stage?

Speaker #6: I can take the latter part, Toby. This is Bill. The fourth quarter revenue does not have labor disruption in it of any significant level at all.

William J. Burns: I can take the latter part, Tobey. This is Bill. The Q4 revenue does not have labor disruption in it of any significant level at all. The numbers I called out a moment ago really reflect the Q1 guidance.

Speaker #6: The numbers I called out a moment ago really reflect the first quarter guidance.

Speaker #10: Thank you.

Tobey Sommer: Thank you.

Speaker #7: Yeah, I mean, in terms of the first part—I mean, we haven't noticed anything unusual in the marketplace. We're looking at certain segments like— that doesn't really answer your question, but I think, for example, with foreign-trained nurses, the backlog is slowly clearing.

Kevin C. Clark: Yeah, I mean, in terms of the first part, I mean, you know, we haven't noticed anything unusual in the marketplace. You know, we're looking at certain segments, you know, like, that don't really, you know, answer your question, but I think, for example, you know, with foreign-trained nurses, the backlog is slowly clearing. We're keeping an eye on retrogression. It still exists because of annual visa caps. We think that there's, you know, a greater appetite for, you know, international nurse candidates as well. We're, you know, we're seeing different things. I think, you know, nationally, we're seeing, you know, kind of, you know, a broad, you know, usage of contingent labor. I think healthcare systems are getting smarter.

Speaker #7: So we're keeping an eye on retrogression. It still exists. Because of annual visa caps, but we think that there's a greater appetite for international nurse candidates as well.

Kevin C. Clark: We're keeping an eye on retrogression. It still exists because of annual visa caps. We think that there's, you know, a greater appetite for, you know, international nurse candidates as well. We're, you know, we're seeing different things. I think, you know, nationally, we're seeing, you know, kind of, you know, a broad, you know, usage of contingent labor. I think healthcare systems are getting smarter.

Speaker #7: So we're seeing different things. I think nationally, we're seeing kind of a broad usage of contingent labor. I think healthcare systems are getting smarter.

Kevin C. Clark: Obviously, there is, you know, a cost environment that is tight. That's why we excel. You know, we are, you know, not a staffing company, we are a technology company that provides staffing, and we can help our customers, you know, with solutions. You know, whether that's building their own talent pool, managing that talent pool with our IRP technology, or helping them either in a vendor-neutral situation or as a primary supplier.

Speaker #7: Obviously, there is a cost environment that is tight. And that's why we excel. Because we are not a staffing company. We are a technology company that provides staffing.

Speaker #7: And we can help our customers with solutions. Whether that's building their own talent pool, managing that talent pool with our IRP technology, or helping them either in a vendor-neutral situation or as a primary supplier.

Speaker #10: Thank you.

Tobey Sommer: Thank you.

Operator: Thank you. Once again, if you would like to ask a question, you may press star one. Our next caller is Kevin Steinke with Barrington Research. Your line is open, sir.

Speaker #11: Thank you. And once again, if you would like to ask a question, you may press star one or next caller is Kevin Steinke with Barrington Research.

Speaker #11: Your line is open, sir.

Speaker #12: Hey, thank you, and good afternoon. I wanted to start off first by asking about your comments on the sequential progression in revenue as we move throughout 2026.

Kevin Steinke: Hey, thank you, and good afternoon. Wanted to start off first by asking about your comments on the sequential progression in revenue as we move throughout 2026. Are you just there referring to do you expect the year-over-year rate of change in revenue to improve in each quarter as we move forward and, you know, we should still expect a typical sequential revenue pullback in Q3 just due to education staffing?

Speaker #12: Are you just there referring to you expect the year-over-year rate of change in revenue to improve in each quarter as we move forward? And we should still expect a typical sequential revenue pullback in the third quarter just due to education staffing?

Speaker #6: Yeah. Kevin, this is Bill. I guess our lens right now as you look at Q3 and Q4 and to the back half is we're looking at sequential growth across all the quarters.

William J. Burns: Yeah, Kevin C. Clark, this is William J. Burns. I guess, you know, our lens right now, as you look at Q3 and Q4 into the back half, is we're looking at sequential growth across all the quarters, even as the education business pulls back. That's predicated on continued growth in the other lines of business: Travel Nurse and Allied, home-based staffing, et cetera. Our lens is right now that we're gonna see sequential progression all throughout. When do we get to year-over-year growth? You know, we're expecting that in the back half. Is it Q3 or is it Q4? I think, you know, a little bit to be seen there, but I would, you know, I would hazard a guess, it's gonna be hopefully... Well, I shouldn't say hazard a guess. I'll say I...

Speaker #6: Even as the education business pulls back, that's predicated on continued growth in the other lines of business—travel, home-based staffing, etc. So our lens right now is that we're going to see sequential progression all throughout.

William J. Burns: Our lens is right now that we're gonna see sequential progression all throughout. When do we get to year-over-year growth? You know, we're expecting that in the back half. Is it Q3 or is it Q4? I think, you know, a little bit to be seen there, but I would, you know, I would hazard a guess, it's gonna be hopefully... Well, I shouldn't say hazard a guess. I'll say I...

Speaker #6: When do we get to year-over-year growth? We're expecting that in the back half. Is it Q3 or is it Q4? I think a little bit to be seen there, but I would hazard a guess.

Speaker #6: It's going to be—hopefully, well, I shouldn't say, hazard a guess. I'll say we're looking at Q3 as the quarter we get back to year-over-year growth—it is our target.

William J. Burns: We're looking at Q3 as the quarter we get back to year-over-year growth as our target. You know, that's gonna be close. We'll see if it's in Q3 or Q4. We're on that right trajectory, and it's really about continuing getting the return on the investments we've made this year.

Speaker #6: But that's going to be close. So we'll see if it's in Q3 or Q4. But we're on that right trajectory. And it's really about continuing getting the return on the investments we've made this year.

Kevin Steinke: Okay, thanks. That's helpful. You expressed some optimism about locums physician staffing, moving forward. Specific to Q4, was there anything that you saw impact that business?

Speaker #12: Okay. Thanks. That's helpful. And you expressed some optimism about locums, physician staffing. Moving forward, but specific to the fourth quarter, was there anything that you saw impact that business?

Kevin Steinke: Okay, thanks. That's helpful. You expressed some optimism about locums physician staffing, moving forward. Specific to Q4, was there anything that you saw impact that business?

Speaker #6: Yeah. I don't know if there's any one specific thing. It seemed to be a broader pullback across some of our larger specialties. We do have we concentrate in primary care, hospitalist, emergency medicine, anesthesia.

William J. Burns: Yeah, I don't know if there's any one specific thing. It seemed to be a broader pullback across some of our larger specialties. You know, we do concentrate in primary care, hospitalist, emergency medicine, and anesthesia. Those were the ones that we saw the pullback. What was started in Q3 as just a handful of clients was a little bit more widespread in Q4. Again, I do wanna stress, we don't know how much of this is due to disruption or distraction from the merger because we've started to see the production, the weekly production already turn this year as we come into 2026. The indications are that business is poised to start seeing sequential growth as we get into Q2.

Speaker #6: Those were the ones that we saw the pullback. What was started in the third quarter is just a handful of clients was a little bit more widespread in the fourth quarter.

William J. Burns: Again, I do wanna stress, we don't know how much of this is due to disruption or distraction from the merger because we've started to see the production, the weekly production already turn this year as we come into 2026. The indications are that business is poised to start seeing sequential growth as we get into Q2.

Speaker #6: But again, I do want to stress we don't know how much of this is due to disruption or distraction from the merger, because we've started to see the weekly production already turn this year as we come into 2026.

Speaker #6: So the indications are that business is poised to start seeing sequential growth as we get into the second quarter.

Speaker #12: Okay. Great. Just lastly, you talked about the center of excellence in India. And how that's helping drive cost savings. Can you maybe just give us some perspective on how that center of excellence is progressed over the last year in terms of capacity?

Kevin Steinke: Okay, great. Just lastly, you talked about the Center of Excellence in India and how that's helping drive cost savings. Can you maybe just give us some perspective on how that Center of Excellence has progressed over the last year in terms of capacity, you know, what kind of work you're doing there, and how much more capacity you have there or that you want to build out there?

Speaker #12: What kind of work you're doing there and how much more capacity you have there or that you want to build out there?

Speaker #6: Look, I would say I think cross-country has done an excellent job as Bill pointed out in his comments, reducing our headcount by 21%. Over the past year, we've moved a substantial number of our business process and functions to that center of excellence in Pune, India.

Kevin C. Clark: Look, I would say, I think Cross Country has done an excellent job, as Bill pointed out in his comments, reducing our headcount by 21% over the past year. We've moved a substantial number of our business process and functions to that Center of Excellence in Pune, India. We now have, you know, approximately between 700 and 800 employees that work there, and it's across everything from strategic sourcing and delivery, to shared services, to payroll and billing, to IT and engineering. It's a full suite of employees that we have got a phenomenal culture there. We're proud of that team, and they're very excited to be, you know, a part of our story, and they give us great net operating leverage.

Speaker #6: We now have approximately between 7 and 800 employees that work there. And it's across everything from strategic sourcing and delivery to shared services to payroll and billing to IT and engineering.

Kevin C. Clark: We now have, you know, approximately between 700 and 800 employees that work there, and it's across everything from strategic sourcing and delivery, to shared services, to payroll and billing, to IT and engineering. It's a full suite of employees that we have got a phenomenal culture there. We're proud of that team, and they're very excited to be, you know, a part of our story, and they give us great net operating leverage. Amy, do you wanna maybe add? You were just there recently?

Speaker #6: So it's a full suite of employees that we have. We've got a phenomenal culture there. We're proud of that team, and they're very excited to be a part of our story.

Speaker #6: And they give us great net operating leverage. But Amy, do you want to maybe add? You were just there recently.

Kevin C. Clark: Amy, do you wanna maybe add? You were just there recently?

Speaker #11: I was just there, Kevin. Thanks. I think it's clearly you hit it on all fronts, but I think it's also important to note that they're doing a fantastic job at automation as well.

Amiee Hawkins: I was just there, Kevin. Thanks. I think it's clearly you hit it on all fronts, but I think it's also important to note that they're doing a fantastic job at automation as well. As we continue to automate there and move additional pieces offshore, we just continue to see better and better results.

Aimee Hawkins: I was just there, Kevin. Thanks. I think it's clearly you hit it on all fronts, but I think it's also important to note that they're doing a fantastic job at automation as well. As we continue to automate there and move additional pieces offshore, we just continue to see better and better results.

Speaker #11: So as we continue to automate there, and move additional pieces offshore, we just continue to see better and better results.

Speaker #12: Okay. Thanks. For the comments, turn it back over.

Bill Sutherland: Okay, thanks for the comments. Turn it back over.

Kevin Steinke: Okay, thanks for the comments. Turn it back over.

Speaker #10: Thank you.

Kevin C. Clark: Thank you.

Speaker #11: Thank you. Our next caller is Bill Sutherland with Benchmark Company. Sir, your line is open.

Operator: Thank you. Our next caller is Bill Sutherland with Benchmark Company. Sir, your line is open.

Speaker #13: Hey. Thanks for the questions. I wondered if you were starting to look at an AI strategy across the enterprise. I'm sure you are. Kind of where do you think you can apply it in the next year or two?

Bill Sutherland: Hey, thanks for the questions. I wondered if you were starting to look at an AI strategy across the enterprise. I'm sure you are. Where do you think you can apply it in the next year or two?

Speaker #10: Yeah. Hey, Bill. Yeah. Great question. We're infusing AI and agentic AI throughout the enterprise. So we have an enterprise-wide strategy in particular. We're leveraging agentic AI in the way that we provide delivery and recruitment.

Kevin C. Clark: Yeah. Hey, Bill. Yeah, great question. We're infusing AI and agentic AI throughout the enterprise. We have an enterprise-wide strategy. In particular, we're leveraging agentic AI in the way that we provide delivery and recruitment. Our processes there are, you know, becoming more and more automated. We're leveraging AI technology in our locums business, for example, you know, around the credentialing component. We think there's, you know, an opportunity. One of the things we talked about in our earlier comments is delivery speed and accelerating. A lot of what we're doing strategically is, you know, accelerating our ability to deliver candidates at the right moment for our customers, wherever, you know, 24/7.

Speaker #10: So our processes there are becoming more and more automated. We're leveraging AI technology in our locums business, for example. Around the credentialing component, we think there's an opportunity. One of the things we've talked about in our earlier comments is delivery speed and accelerating.

Kevin C. Clark: We're leveraging AI technology in our locums business, for example, you know, around the credentialing component. We think there's, you know, an opportunity. One of the things we talked about in our earlier comments is delivery speed and accelerating. A lot of what we're doing strategically is, you know, accelerating our ability to deliver candidates at the right moment for our customers, wherever, you know, 24/7.

Speaker #10: And so, a lot of what we're doing strategically is accelerating our ability to deliver candidates at the right moment for our customers, wherever, 24/7.

Speaker #10: So we're leveraging that technology almost in every part of the company. And we're constantly evaluating new tools and business processes that we want to automate and I think it also goes back to why I think I'm very excited about the market environment we're in.

Kevin C. Clark: We're leveraging that technology almost in every part of the company, and we're constantly evaluating, you know, new tools and business processes that we want to automate. You know, I think it also goes back to why I think I'm very excited about the market environment we're in. You know, we believe as an innovation company, a technology-led company, that over time, you know, we can take a tremendous amount of cost out of our company, and we could see our margins, you know, our EBITDA margins grow over time by getting operating leverage from technology. You know, we employ a lot of people both here in the US and offshore, as I mentioned, in the IT area. You know, we'll continue to invest.

Kevin C. Clark: You know, we believe as an innovation company, a technology-led company, that over time, you know, we can take a tremendous amount of cost out of our company, and we could see our margins, you know, our EBITDA margins grow over time by getting operating leverage from technology. You know, we employ a lot of people both here in the US and offshore, as I mentioned, in the IT area. You know, we'll continue to invest.

Speaker #10: We believe as a innovation company a technology-led company that over time we can take a tremendous amount of cost out of our company and we could see our margins our EBITDA margins grow over time by getting operating leverage from technology.

Speaker #10: So we employ a lot of people both here in the US and offshore, as I mentioned, in the IT area. And we are we'll continue to invest and again, that also speaks to our strong balance sheet and our ability to leverage the cash that we have on hand to invest.

Kevin C. Clark: When, you know, again, that also speaks to our strong balance sheet and our ability, you know, to leverage the cash that we have on hand, you know, to invest. We have a robust technology budget, you know, whether, you know, it's, you know, projects that we have underway or CapEx.

Speaker #10: We have a robust technology budget. Whether it's projects that we have underway or CapEx.

Speaker #12: Got it. And looking at the home and education businesses, can is there a way to give us a sense of their relative size? They keep moving the needle pretty nicely.

Bill Sutherland: Got it. Looking at the home and education businesses, is there a way to give us a sense of their, you know, relative size? They keep moving the needle pretty nicely, and I'm not sure kind of what % of the business they are now.

Speaker #12: And I'm not sure what percent of the business they are now.

Speaker #6: Yeah, sure. I can give you that. This is Bill Burns. So, home-based staffing is run-rating north of $140 million annualized right now. And, as we said, we continue to see mid-single-digit kind of sequential growth.

William J. Burns: Yeah, sure. I can give you that. This is Bill Burns. Home-based staffing is run rating north of $140 million, annualized right now. As we said, we continue to see mid-single digit kinda sequential growth, double digit year-over-year growth on that business. In education, we had a slight pullback as we came into the Q4 this year. I'd say it's run rating about $75 million on an annual basis.

Speaker #6: Double-digit year-over-year growth on that business. In education, we had a slight pullback as we came into the fourth quarter of this year. So I'd say it's run rating about 75 million on an annual basis.

Speaker #12: Okay. And that growth there is probably going to resume this year, Bill?

Bill Sutherland: Okay. That growth there is probably gonna resume this year, Bill?

Speaker #6: Yes.

William J. Burns: Yes.

Speaker #12: Okay. The international side, do you guys have a pipeline that you're kind of nurturing right now?

Bill Sutherland: Okay. The international side, do you guys have a pipeline that you're kinda nurturing right now?

Kevin C. Clark: We don't. We partner with others. You know, it's an area of opportunity that, you know, perhaps we'll invest in downstream because we think it's a, you know, opportunity for us to have another, you know, important part of the supply chain figured out for our customers.

Speaker #10: We don't. We partner with others. But it's an area of opportunity. That perhaps we'll invest in downstream because we think it's a opportunity for us to have another important part of the supply chain figured out for our customers.

Bill Sutherland: Okay. I'll stop there. Thanks again for the questions.

Speaker #12: Okay. I'll stop there. Thanks again for the questions.

Bill Sutherland: Okay. I'll stop there. Thanks again for the questions.

Speaker #10: Thanks, Bill.

Kevin C. Clark: Thanks, Bill.

William J. Burns: Thanks, Bill.

Bill Sutherland: Mm-hmm.

Speaker #11: Ladies and gentlemen, this concludes the Q&A period. I’ll now turn the call back over to Kevin Clark for closing remarks.

Operator: Ladies and gentlemen, this concludes the Q&A period. I'll now turn the call back over to Kevin Clark for closing remarks.

Speaker #10: Thank you, operator. I'd like to thank everyone for participating in today's call. And we look forward to updating you on our progress on the next call.

Kevin C. Clark: Thank you, operator. I'd like to thank everyone for participating in today's call. We look forward to updating you on our progress on the next call. Thank you.

Speaker #10: Thank you.

Operator: Ladies and gentlemen, this concludes today's conference call. Thank you for your participation. You may now disconnect.

Q4 2025 Cross Country Healthcare Inc Earnings Call

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