AMN Healthcare (NYSE: AMN) reported Q2 2026 revenue of $673.2 million, up 2% from $658.2 million a year earlier, while GAAP diluted EPS improved to $0.53 from a loss of $3.02 per share. Adjusted EBITDA increased 26% to $73.4 million, although operating cash flow turned negative as the company returned client deposits associated with first-quarter labor disruption events. Growth in Nurse and Allied Solutions offset continued declines in the other two segments.
Core Earnings Data
For the quarter ended June 30, revenue growth was modest, but profitability improved more substantially. Gross profit rose 5%, SG&A declined by $7.2 million, and adjusted EBITDA margin expanded by 200 basis points.
The GAAP comparison also benefited from the absence of the $109.5 million goodwill impairment and $18.3 million long-lived asset impairment recorded in Q2 2025. Even excluding those prior-year charges, adjusted EPS and adjusted EBITDA both increased.
| Metric | Q2 2026 | Q2 2025 | Year-over-year change |
|---|---|---|---|
| Revenue | $673.2 million | $658.2 million | +2% |
| Gross profit / margin | $205.9 million / 30.6% | $196.4 million / 29.8% | +5% / +80 bps |
| SG&A / percentage of revenue | $147.4 million / 21.9% | $154.6 million / 23.5% | Down $7.2 million / -160 bps |
| Operating income / margin | $26.9 million / 4.0% | $(123.7) million / (18.8)% | Returned to profit |
| Net income | $21.2 million | $(116.2) million | Returned to profit |
| GAAP diluted EPS | $0.53 | $(3.02) | Returned to profit |
| Adjusted diluted EPS | $0.77 | $0.30 | +158% |
| Adjusted EBITDA / margin | $73.4 million / 10.9% | $58.3 million / 8.9% | +26% / +200 bps |
| Operating cash flow | $(189.9) million | $78.5 million | Reversed to an outflow |
Business and Segment Performance
AMN’s segment results remained divided. Nurse and Allied Solutions generated double-digit revenue growth and a considerably higher gross margin, while Physician and Leadership Solutions and Technology and Workforce Solutions both contracted.
| Segment | Q2 2026 revenue | Q2 2025 revenue | Year-over-year change | Gross margin: Q2 2026 vs. Q2 2025 |
|---|---|---|---|---|
| Nurse and Allied Solutions | $422.0 million | $381.9 million | +11% | 28.4% vs. 23.9% |
| Physician and Leadership Solutions | $164.6 million | $174.5 million | -6% | 26.5% vs. 28.2% |
| Technology and Workforce Solutions | $86.7 million | $101.8 million | -15% | 48.6% vs. 55.1% |
Within Nurse and Allied, travel nurse staffing revenue rose 10% year over year and allied revenue increased 8%. Average travelers on assignment reached 9,194, compared with 8,700 a year earlier. Segment operating income more than doubled to $58.2 million from $28.5 million, partly reflecting reserve releases and billing true-ups from earlier labor disruption events.
Physician and Leadership revenue was pressured by an 8% decline in locum tenens and a 3% decrease in interim leadership. Search was the exception, with revenue rising 27% year over year and 20% sequentially. Segment operating income declined to $11.0 million from $13.5 million.
Technology and Workforce remained the weakest segment. Language services revenue fell 8% to $70 million, while vendor management systems revenue declined 20% to $15 million. Segment operating income dropped to $24.6 million from $35.2 million as gross margin contracted by 650 basis points.
Labor Disruption Timing Boosted Margins but Reversed Cash Flow
AMN’s 51% sequential revenue decline primarily reflects an unusually high first-quarter comparison rather than a year-over-year contraction. Labor disruption revenue fell from $722 million in Q1 2026 to $25 million in Q2, although the Q2 contribution was still above the $16 million recorded a year earlier.
The same events affected profitability and cash flow in different ways. Reserve releases and billing true-ups tied to prior labor disruption assignments helped lift consolidated gross margin by 380 basis points sequentially to 30.6%. At the same time, the return of related client deposits contributed to the $189.9 million quarterly operating cash outflow.
Despite that outflow, year-to-date operating cash flow remained positive at $372.5 million after the $562.5 million generated in Q1. AMN ended Q2 with $361.8 million in cash, $750 million of debt, no revolving credit facility borrowings, and a 1.5 times leverage ratio. The company still had $117 million of client deposits to settle in coming months, making deposit-related cash movements an important near-term consideration.
Q3 2026 Guidance
AMN expects consolidated revenue to remain above the prior-year level in Q3, supported by Nurse and Allied Solutions. However, the guided profitability ranges are below Q2 actual results, indicating that the second quarter’s elevated margins are not expected to continue at the same level.
| Metric | Q3 2026 guidance | Comparison or context |
|---|---|---|
| Consolidated revenue | $640 million-$655 million | Expected to increase 1%-3% year over year |
| Gross margin | 27.0%-27.5% | Q2 actual: 30.6% |
| SG&A as a percentage of revenue | 22.0%-22.5% | Q2 actual: 21.9% |
| Operating margin | 0.2%-0.8% | Q2 actual: 4.0% |
| Adjusted EBITDA margin | 6.5%-7.0% | Q2 actual: 10.9% |
| Nurse and Allied revenue | Up 9%-11% year over year | Expected growth driver |
| Physician and Leadership revenue | Down 5%-7% year over year | Continued contraction |
| Technology and Workforce revenue | Down 11%-13% year over year | Continued contraction |
The outlook preserves the segment pattern seen in Q2: staffing growth is expected to offset weaker Physician and Leadership and Technology and Workforce results. The lower gross, operating, and adjusted EBITDA margin ranges also make the durability of Q2’s reserve-release and billing true-up benefits a central issue for the next quarter.
Management Commentary
CEO Cary Grace said demand improved through the quarter and that the trend strengthened further in July. Management highlighted year-over-year growth in travel nurse, international nurse, allied, schools, and search solutions, along with solid managed service program and search revenue.
AMN also acquired Jaide Health and the ESSENTIAL Leadership Assessment, expanding its AI-native language access and leadership advisory capabilities. The company did not disclose a specific quarterly financial contribution from these acquisitions.
Recent Insider Transactions
Reported insider data for the latest six-month period show 84,688 shares purchased across six transactions and 3,681 shares sold in one transaction, resulting in net purchases of 81,007 shares. The one specifically disclosed sale was an indirect transaction by director Mark G. Foletta.
| Date | Insider | Role | Direction | Shares | Reported value | Ownership type |
|---|---|---|---|---|---|---|
| June 15, 2026 | Mark G. Foletta | Director | Sale | 3,681 | $114,362 | Indirect |
The transaction data alone do not establish an insider view on AMN’s business outlook.
Risks Investors Should Watch
- Q2 margin support may not persist: Reserve releases and billing true-ups helped lift gross margin to 30.6%, while Q3 guidance calls for only 27.0%-27.5%. Lower margins would reduce operating income and adjusted EBITDA even if revenue remains stable.
- Additional deposit settlements could pressure cash flow: AMN had $117 million of client deposits remaining to settle after operating cash flow turned negative in Q2.
- Two segments remain in decline: Physician and Leadership and Technology and Workforce contracted in Q2 and are expected to post further year-over-year declines in Q3, increasing AMN’s reliance on Nurse and Allied.
- Labor disruption events create quarterly volatility: Revenue from these assignments fell from $722 million in Q1 to $25 million in Q2, complicating sequential comparisons and creating significant movements in revenue, margins, deposits, and cash flow.
Summary
AMN Healthcare returned to year-over-year revenue growth in Q2 as Nurse and Allied Solutions offset declines elsewhere, while lower SG&A and labor disruption-related adjustments supported higher margins and adjusted EBITDA. The principal near-term questions are whether staffing growth can continue, how quickly the two weaker segments stabilize, and how profitability and cash flow develop as temporary margin benefits fade and the remaining client deposits are settled.
Find out more
Comments