Breaking Down Cross Country Healthcare, Inc. (CCRN) Financial Health: Key Insights for Investors

You're looking at Cross Country Healthcare, Inc. (CCRN) and trying to map the path forward, especially with the healthcare staffing market still in flux, and honestly, the third quarter 2025 results give us a mixed signal we need to untangle right now. The top-line pressure is real: consolidated revenue fell to $250.1 million, a sharp 21% year-over-year decrease that drove a net loss of $4.8 million for the quarter, or a diluted earnings per share (EPS) loss of $0.15. But here's the quick math on the opportunity: the core Homecare Staffing segment is a bright spot, posting revenue growth of more than 29% over the prior year, plus the company still holds a rock-solid balance sheet with $99.1 million in cash and no outstanding debt as of September 30, 2025, which gives them defintely some cushion. We need to focus on how that cash and segment strength offsets the overall revenue contraction and the near-term risk of the pending Aya Healthcare merger, which has a potential walk-away date of December 3, 2025.

Revenue Analysis

You're looking at Cross Country Healthcare, Inc. (CCRN) right now and seeing a clear trend: the massive revenue surge from the pandemic-era demand for travel nurses is over. The direct takeaway is that while consolidated revenue is declining sharply, the underlying business is shifting, with a bright spot in Homecare Staffing that you defintely shouldn't ignore.

For the third quarter of 2025, Cross Country Healthcare, Inc. (CCRN) reported consolidated revenue from services of $250.1 million, which is a sharp drop of 20.6% year-over-year (YoY) from the prior year's quarter. This contraction is a normalization-the market is re-pricing contingent labor after the peak demand and sky-high bill rates of the last few years. Here's the quick math: for the nine months ended September 30, 2025, the company's consolidated revenue stood at $817.5 million, a 21% decrease YoY, confirming this is a sustained trend, not a one-off blip.

The company's revenue streams are primarily divided into two major segments, both of which are currently showing declines due to reduced volume and normalizing bill rates:

• Nurse and Allied Staffing: This segment is the core of the business, accounting for approximately 81% of total revenue in Q3 2025.
• Physician Staffing: This segment makes up the remainder, representing about 19% of total revenue.

To be fair, the decline is not uniform. The Nurse and Allied Staffing segment, which includes traditional travel nursing, saw its revenue fall to $202.0 million in Q3 2025, a steep 23.8% decrease YoY. The Physician Staffing segment, while smaller, saw a more modest revenue decline to $48.1 million, down 4.3% YoY. This segment is benefiting from a more favorable mix of medical specialties and higher rates, even as the total days filled decreased.

What this estimate hides is the remarkable performance of the Homecare Staffing business, which is nested within the Nurse and Allied segment. This is a key strategic growth area. In Q3 2025, Homecare Staffing revenue grew by a strong 29.1% over the prior year, a trend that has been consistent throughout 2025. This segment is definitely a counter-cyclical hedge against the broader market softness.

The table below shows the segment contributions for the third quarter of 2025, highlighting where the revenue power-and the current pain-lies:

The biggest change in the revenue stream is the volume decline in core travel staffing, which reflects healthcare systems moving away from expensive contingent labor toward permanent hires. Still, Cross Country Healthcare, Inc. (CCRN) is focused on winning and expanding Managed Service Program (MSP) contracts, securing over $400 million in contract value throughout 2025. This focus on long-term contracts helps stabilize the revenue base as the market corrects. You can find more detail on the players driving these trends in Exploring Cross Country Healthcare, Inc. (CCRN) Investor Profile: Who's Buying and Why?.

Profitability Metrics

You need to know if Cross Country Healthcare, Inc. (CCRN) is making money, and more importantly, how efficiently. The short answer is that while the company is facing significant top-line pressure, its core operational efficiency is holding up, but this isn't yet translating to net profit. The firm reported a net loss of $4.8 million in the third quarter of 2025 (Q3 2025), a sharp reversal from prior-year periods.

The company's consolidated gross profit margin has been a surprising point of stability despite a challenging market. For Q3 2025, the margin stood at a solid 20.4%, which was flat both year-over-year and sequentially. This stability suggests effective management of the direct costs of services (Cost of Revenue), mostly clinician pay, even as overall revenue dropped 21% year-over-year to $250.1 million. Here's the quick math: keeping gross margin stable while revenue falls means the cost of labor is being controlled well on a per-revenue-dollar basis.

• Gross Margin: Held steady at 20.4% in Q3 2025.
• Operating Loss: Q3 2025 loss of $6.0 million.
• Net Loss: Q3 2025 net loss of $4.8 million.

When you look at the broader staffing industry, a gross margin in the 25% to 28% range has historically been common for publicly traded firms. CCRN's 20.4% is noticeably lower, which is typical for a business heavily weighted toward temporary healthcare staffing where labor costs are extremely high. The shift from Gross Profit to Operating Profit is where the real pressure is visible. The company recorded an operating loss of $6.0 million in Q3 2025, which reflects the difficulty in covering Selling, General, and Administrative (SG&A) expenses amidst the revenue contraction.

The profitability trend over the last year shows a clear normalization from the high-margin, pandemic-driven demand. The Trailing Twelve Months (TTM) operating margin sits at about -1.44% and the TTM net profit margin is -1.39%, confirming that the business is currently in a period of negative profitability. Still, there are signs of operational efficiency improvements. Management has cited sequential declines in SG&A expenses, which are being fueled by further leveraging their low-cost center of excellence in India. This is a clear, actionable step to reduce the operating expense base.

A key bright spot is the Homecare Staffing segment, which posted revenue growth of more than 29% year-over-year in Q3 2025. This segment's momentum is critical for stabilizing the overall business and points to a strategic area of strength. To get a deeper understanding of who is betting on this turnaround, you should check out Exploring Cross Country Healthcare, Inc. (CCRN) Investor Profile: Who's Buying and Why?

What this estimate hides is the one-time costs related to the pending merger with Aya Healthcare, which are also impacting the operating and net loss figures. This means the underlying core profitability is defintely better than the reported net loss suggests, but the overall business is still navigating a significant post-pandemic market correction.

Debt vs. Equity Structure

The most striking takeaway from Cross Country Healthcare, Inc.'s (CCRN) balance sheet is its exceptionally conservative capital structure. Simply put, you are looking at a company that has virtually eliminated its debt, which drastically reduces financial risk in an increasingly volatile market.

As of June 30, 2025, Cross Country Healthcare, Inc. reported no debt outstanding, a remarkable position for a company of this size. This means both long-term and short-term debt levels are effectively $0. This is a huge margin of safety, especially considering the company held $81.2 million in cash and cash equivalents at the same time.

Here's the quick math on what that means for financial leverage:

• Total Debt (Short-term + Long-term): $0
• Debt-to-Equity Ratio: 0.00

This 0.00 Debt-to-Equity (D/E) ratio is a clear signal of an equity-funded operation. For context, many capital-light healthcare-related industries, like Biotechnology, have an average D/E ratio around 0.17, and a D/E under 1.0 is generally considered healthy. Cross Country Healthcare, Inc. is operating with a level of financial flexibility that is defintely rare in the public markets.

The company's recent actions confirm this low-leverage strategy. They have terminated their previous term loan agreement and, as of the second quarter of 2025, had no borrowings drawn under their revolving senior secured asset-based credit facility (ABL). This facility still provides a substantial safety net, with borrowing base availability of $140.6 million, net of letters of credit.

Cross Country Healthcare, Inc. is balancing its funding entirely toward equity, relying on retained earnings and operational cash flow instead of debt. This is a strategic choice in the healthcare staffing sector, where revenues can fluctuate with hospital demand and government policies. The trade-off is often lower potential growth from financial leverage, but the benefit is a fortified balance sheet that can easily weather an economic downturn or a sudden market shift.

This debt-free position makes the company a strong candidate for a strategic acquisition or a major share repurchase program, which you can explore further in Exploring Cross Country Healthcare, Inc. (CCRN) Investor Profile: Who's Buying and Why?

The table below summarizes the core of their capital structure:

The clear action here is to see their balance sheet as a source of strength, not a drag. They have the dry powder and the clean slate to make a significant move if the right opportunity arises.

Liquidity and Solvency

You want to know if Cross Country Healthcare, Inc. (CCRN) has the cash to cover its near-term obligations, and the quick answer is a definitive yes. Their liquidity position is exceptionally strong, driven by a clean balance sheet and healthy cash generation, but you still need to watch the cash flow trend closely as the healthcare staffing market shifts.

When we look at the core liquidity metrics, the picture is clear. For the trailing twelve months (TTM) ended September 30, 2025, Cross Country Healthcare's Current Ratio stood at a robust 3.21. The Quick Ratio, which strips out inventory-a non-factor for a services company like this-was also 3.21. Anything over 1.0 is generally good, so a ratio over 3.0 means the company has more than three times the liquid assets needed to cover its current liabilities. That's defintely a strength.

The company's working capital (Net Current Asset Value) for the TTM period ended September 30, 2025, was approximately $167.48 million. While this figure shows a slight dip from the prior fiscal year's working capital of $209.23 million, it remains a substantial buffer. This trend of slightly contracting working capital reflects the broader normalization in the healthcare staffing market following the pandemic-era boom, but the absolute number is still very healthy.

Here's the quick math on their cash flow for the TTM ended September 30, 2025, which gives you a real feel for their operational health:

• Operating Cash Flow (OCF): $54.25 million
• Investing Cash Flow (ICF): -$8.58 million (largely capital expenditures)
• Financing Cash Flow (FCF): Near zero, reflecting no debt activity.

The positive OCF of $54.25 million shows the core business is generating cash, even with revenue headwinds. The negative ICF is small, mainly covering capital expenditures (CapEx) of $8.58 million, which is a manageable spend. You want to see OCF easily cover CapEx, and it does here by a factor of over six. That's a powerful sign of financial discipline.

The biggest liquidity strength is the balance sheet itself. As of the third quarter of 2025, Cross Country Healthcare reported a cash and cash equivalents balance of approximately $99 million and, critically, no outstanding debt. This zero-debt position is a massive advantage, giving them maximum financial flexibility. Plus, they had an additional $140.6 million in borrowing base availability under their revolving credit facility as of June 30, 2025. They have zero liquidity concerns right now.

What this estimate hides, however, is the pending merger with Aya Healthcare. The company is actively moving toward becoming a private entity, which is the ultimate near-term action that will change the public liquidity discussion. For a deeper dive into the strategic implications of this move, check out the full post: Breaking Down Cross Country Healthcare, Inc. (CCRN) Financial Health: Key Insights for Investors. Your next step should be tracking the merger timeline, as that's the real driver of shareholder value now.

Valuation Analysis

You need to know if Cross Country Healthcare, Inc. (CCRN) is a buy, a sell, or a hold right now, especially with the pending merger. The quick answer is that the market is pricing Cross Country Healthcare as a Hold/Reduce, reflecting significant uncertainty and a high earnings multiple, but the stock is trading at a notable discount to the proposed acquisition price.

The core valuation metrics for the 2025 fiscal year show a very mixed picture. The company's trailing twelve-month (TTM) net income is a loss of approximately -$14.56 million, which makes the standard Price-to-Earnings (P/E) ratio - a measure of how much you pay for a dollar of current earnings - negative and not particularly useful for comparison. This is a clear red flag; you're not buying current earnings.

Here's the quick math on the key multiples, using the most recent 2025 data:

• Forward Price-to-Earnings (P/E): A staggering 130.37x for FY 2025. This multiple is based on expected future earnings and suggests the stock is significantly overvalued relative to its near-term profit outlook.
• Price-to-Book (P/B): A low 1.02x. This ratio compares the stock price to the company's book value (assets minus liabilities) per share, and a value close to 1.0 suggests you are paying roughly what the assets are worth, which is often a sign of a fair or undervalued stock.
• Enterprise Value-to-EBITDA (EV/EBITDA): Approximately 11.81x. Enterprise Value (EV) is the total value of the company, including debt, and EBITDA is earnings before interest, taxes, depreciation, and amortization. An analyst noted the stock recently traded at 10.4x the revised 2025 EBITDA estimate, which they felt was a premium to peers like AMN Healthcare.

The massive disconnect between the high forward P/E and the low P/B is a classic sign of a company in transition, where earnings have collapsed but the balance sheet (net assets) remains relatively solid. You have to decide if the recovery priced into that P/E is defintely going to happen.

Looking at the last 12 months, the stock has been volatile. Cross Country Healthcare's share price traded between a 52-week low of $9.58 and a high of $18.33. The closing price as of November 18, 2025, was $11.74. The stock is up about 0.82% over the past 12 months, but it has been hammered year-to-date. The stock's valuation is heavily influenced by the pending merger with Aya Healthcare, which has an end date extension to December 3, 2025. The analyst community observed the stock was trading at a 32% discount to the proposed merger price, which suggests a significant arbitrage opportunity or a high perceived risk of the deal falling through.

On the income front, Cross Country Healthcare does not pay a dividend. The current TTM (trailing twelve months) dividend payout is $0.00, which means both the dividend yield and the payout ratio are 0.00%. This is common for companies prioritizing cash retention or debt repayment, but it means you won't get paid to wait for the stock's value to appreciate.

The analyst community is lukewarm, to be fair. The consensus rating from seven brokerages is a collective Reduce, with six analysts assigning a Hold rating and one assigning a Sell rating. The average 12-month price target is $17.91. This target is significantly higher than the current price of $11.74, but the 'Reduce' rating signals caution, likely due to the earnings miss in Q3 2025, where the company reported $0.03 EPS, missing the consensus of $0.04.

For a deeper dive into who is holding this stock and why, you should read Exploring Cross Country Healthcare, Inc. (CCRN) Investor Profile: Who's Buying and Why?

Next step: Finance needs to model the probability-weighted outcome of the Aya merger by Friday, using the $17.91 target as the upside case if the deal closes.

Risk Factors

You're looking at Cross Country Healthcare, Inc. (CCRN) in a pivotal, yet risky, moment. The direct takeaway is this: while the company has a rock-solid balance sheet with $99.1 million in cash and zero debt as of September 30, 2025, its near-term financial health is overshadowed by a sharp decline in core business revenue and massive strategic uncertainty from its pending merger. You need to map these risks to the company's financial results.

The healthcare staffing industry is defintely contracting post-pandemic, and CCRN's third-quarter 2025 results show the strain. Revenue fell 20.6% year-over-year to $250.1 million, and the company swung to a net loss of $4.8 million, or $0.15 per share. That's a significant deterioration that highlights operational pressures.

The Overriding Strategic Risk: The Aya Merger

The biggest risk isn't operational; it's the pending acquisition by Aya Healthcare. This deal, which would take Cross Country Healthcare, Inc. private, has been delayed due to regulatory scrutiny from the U.S. Federal Trade Commission (FTC). The closing deadline was pushed to December 3, 2025. Any failure to close the deal by this date could trigger termination clauses, leaving CCRN without a clear strategic path forward.

Here's the quick math on the market's view: CCRN's stock has been trading at a discount of roughly 32% to the announced merger price. That gap tells you the market is pricing in a real risk of the deal falling apart. The uncertainty alone can hurt client and talent retention. You can read more about the company's long-term goals here: Mission Statement, Vision, & Core Values of Cross Country Healthcare, Inc. (CCRN).

Operational and External Financial Headwinds

Beyond the merger, the core business faces serious external headwinds. The broader staffing industry is struggling with macroeconomic pressures and a shift in demand away from the peak-pandemic temporary worker rates. The Staffing Firms industry, where CCRN operates, ranks in the bottom 9% of Zacks' 250+ industries.

This market pressure is crushing profitability. Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) for Q3 2025 contracted a sharp 37% year-over-year to just $6.5 million, reflecting significant margin compression. It's hard to grow earnings when your costs are rising faster than your shrinking revenue base.

Mitigation Strategies and Bright Spots

To be fair, management isn't just sitting on its hands. They are focused on what they can control, which is securing new business and improving efficiency. The company has successfully won, expanded, and renewed over $400 million in contract value during 2025, primarily with Managed Service Program (MSP) clients. That's a clear action.

They are also leveraging their strong balance sheet to invest in technology to streamline operations-specifically their proprietary platforms like Intellify and xPerience. This investment is a smart move to lower administrative burden and improve recruitment efficiency, which is critical in a tight labor market. Plus, their Homecare Staffing segment is a bright spot, posting a 29% revenue increase year-over-year in Q3 2025, showing that not all segments are in decline.

• Secure over $400 million in new client contract value.
• Invest in proprietary technology (Intellify, xPerience) for efficiency.
• Focus on high-growth Homecare Staffing segment (29% Q3 YoY growth).

The next step for you is to watch the news wire closely for any update on the Aya merger closing. That's the single most important catalyst for the stock right now.

Growth Opportunities

You need to look past the recent revenue dips to see the real story at Cross Country Healthcare, Inc. (CCRN): a strategic pivot toward profitability and a major pending acquisition that will fundamentally change its structure. While the overall staffing market is normalizing from the pandemic peak, Cross Country Healthcare is focusing on technology and cost controls, plus they have a massive deal on the table.

The biggest near-term factor is the pending merger with Aya Healthcare, which received stockholder approval back in February 2025. This move is expected to take Cross Country Healthcare private, which changes the investment thesis from a public stock growth play to a private equity-style consolidation opportunity. That's a huge shift for investors to digest.

Here's the quick math on the market's view for the full 2025 fiscal year: Consensus estimates project annual revenue to be around $1.11 billion, which reflects a challenging environment-one analyst forecast an annual revenue decline of 5.5%. But, the focus is on the bottom line: annual earnings are expected to grow significantly, with one forecast pointing to a 119% increase, driven by cost efficiencies. The consensus Earnings Per Share (EPS) estimate for 2025 sits at $0.14. They are defintely tightening their belt.

The company's growth drivers are clearly shifting from market-driven volume to strategic execution and technology:

• Product Innovations: Their proprietary technology platform uses AI algorithms to reduce placement times by as much as 43% compared to industry standards. This efficiency is a direct margin booster.
• Segment Strength: The Homecare Staffing segment is a standout, reporting a strong 29% revenue increase year-over-year in Q3 2025, which shows where the demand is moving.
• Strategic Contracts: Cross Country Healthcare is focused on locking in future revenue, securing over $400 million in contract value through renewals and expansions.

Cross Country Healthcare's competitive advantages are what position it for growth, especially post-merger. They are one of the largest healthcare staffing companies in the U.S., giving them the necessary scale and scope. Their diversified portfolio includes Managed Services Programs (MSP) and Vendor Management Systems (VMS), which streamline staffing for clients and create sticky, long-term relationships. Plus, their data-driven approach to talent matching has helped increase client retention rates by 37%.

To put the recent performance into perspective, here is a look at the Q3 2025 results:

What this estimate hides is the potential impact of the Aya Healthcare deal. If that merger closes, the entire financial structure and growth narrative will change, making the 2025 public estimates largely irrelevant for the long-term, private entity. The immediate action is to monitor the merger closing date, as that is the single biggest factor affecting the stock price right now. For a deeper dive into the company's financial stability, you can check out Breaking Down Cross Country Healthcare, Inc. (CCRN) Financial Health: Key Insights for Investors.