AMN · AMN Healthcare Services, Inc.

AMN Healthcare's first quarter 2026 results were significantly boosted by large labor disruption events, which contributed $722 million in revenue. Excluding these events, underlying growth was driven by travel nursing (up 12% YoY, first growth since 2022), allied, schools, international nurse, and search. The Nurse and Allied Solutions segment revenue surged 173% YoY to $1.127 billion, while Physician and Leadership Solutions declined 6% and Technology and Workforce Solutions fell 15%. Gross margin contracted 190 bps YoY to 26.8% due to mix shift, but improved 70 bps sequentially. SG&A increased to $218 million (15.8% of revenue) from $148 million (21.4%) a year ago, driven by labor disruption event costs. Operating income rose to $117 million (8.5% margin) from $13 million (1.8%). Adjusted EBITDA margin expanded 280 bps to 12.1%. Cash flow from operations was $562 million, benefiting from $367 million in client deposits. The company ended the quarter with $561 million cash and $750 million debt, with a leverage ratio of 1.6x. Management noted strong execution and momentum in technology-enabled solutions. For Q2 2026, guidance implies a sharp revenue decline to $620-635 million (down 4-6% YoY) as labor disruption revenue normalizes to ~$10 million. Adjusted EBITDA margin is expected to be 6.7-7.2%, reflecting lower revenue and higher SG&A as a percentage. The guidance suggests a return to more normalized operating levels after an exceptional Q1.