AMN HEALTHCARE SERVICES INC

Previous wording

We conduct business through three reportable segments: (1) nurse and allied solutions, (2) physician and leadership solutions, and (3) technology and workforce solutions. For the three months ended June 30, 2026, we recorded revenue of $673.2 million, as compared to $658.2 million for the same period last year. For the six months ended June 30, 2026, we recorded revenue of $2,051.6 million, as compared to $1,347.7 million for the same period last year.

Current wording

We conduct business through three reportable segments: (1) nurse and allied solutions, (2) physician and leadership solutions, and (3) technology and workforce solutions. For the three months ended September 30, 2026, we recorded revenue of $717.3 million, as compared to $634.5 million for the same period last year. For the nine months ended September 30, 2026, we recorded revenue of $2,768.9 million, as compared to $1,982.2 million for the same period last year.

Previous wording

Nurse and allied solutions segment revenue comprised 76% and 59%of total consolidated revenue for the six months ended June 30, 2026 and 2025, respectively. Through our nurse and allied solutions segment, we provide hospitals, other healthcare facilities, and schools with a comprehensive set of staffing solutions, including direct, vendor-neutral, and managed services solutions in which we manage and staff all the temporary and permanent nursing and allied staffing needs, as well as the revenue cycle management needs, of a client. A majority of our placements in this segment are under our managed services solution.

Current wording

Nurse and allied solutions segment revenue comprised 73% and 58%of total consolidated revenue for the nine months ended September 30, 2026 and 2025, respectively. Through our nurse and allied solutions segment, we provide hospitals, other healthcare facilities, and schools with a comprehensive set of staffing solutions, including direct, vendor-neutral, and managed services solutions in which we manage and staff all the temporary and permanent nursing and allied staffing needs, as well as the revenue cycle management needs, of a client. A majority of our placements in this segment are under our managed services solution.

Previous wording

Physician and leadership solutions segment revenue comprised 16% and 26% of total consolidated revenue for the six months ended June 30, 2026 and 2025, respectively. Through our physician and leadership solutions segment, we place physicians of all specialties, as well as dentists and advanced practice providers, with clients on a temporary basis, generally as independent contractors. We also recruit physicians and healthcare leaders for permanent placement and place interim leaders and executives on variable-length assignments across all healthcare settings.

Current wording

Physician and leadership solutions segment revenue comprised 18% and 27% of total consolidated revenue for the nine months ended September 30, 2026 and 2025, respectively. Through our physician and leadership solutions segment, we place physicians of all specialties, as well as dentists and advanced practice providers, with clients on a temporary basis, generally as independent contractors. We also recruit physicians and healthcare leaders for permanent placement and place interim leaders and executives on variable-length assignments across all healthcare settings.

Previous wording

Technology and workforce solutions segment revenue comprised 8% and 15%of total consolidated revenue for the six months ended June 30, 2026 and 2025, respectively. Through our technology and workforce solutions segment, we provide hospitals and other healthcare facilities with a range of workforce solutions, including: (1) language services, (2) software-as-a-service (“SaaS”)-based VMS technologies through which our clients can self-manage the procurement of contingent clinical labor and their internal float pool, (3) workforce optimization services that include advisory, planning, and analytics, and (4) recruitment process outsourcing services in which we recruit, hire and/or onboard permanent clinical and nonclinical positions on behalf of our clients.

Current wording

Technology and workforce solutions segment revenue comprised 9% and 15%of total consolidated revenue for the nine months ended September 30, 2026 and 2025, respectively. Through our technology and workforce solutions segment, we provide hospitals and other healthcare facilities with a range of workforce solutions, including: (1) language services, (2) software-as-a-service (“SaaS”)-based VMS technologies through which our clients can self-manage the procurement of contingent clinical labor and their internal float pool, (3) workforce optimization services that include advisory, planning, and analytics, and (4) recruitment process outsourcing services in which we recruit, hire and/or onboard permanent clinical and nonclinical positions on behalf of our clients.

Previous wording

In our physician and leadership solutions segment, demand for our locum tenens staffing business in the second quarter increased from prior year and prior quarter. Days filled were lower compared to prior year but up slightly sequentially. Revenue per day filled was in line with prior year but was down sequentially. Certified registered nurse anesthetists (CRNAs) continue to be the largest specialty for our locum tenens staffing business. Volume for our search business in the second quarter was higher compared to prior year and prior quarter, with particular strength in physician permanent placement and executive search. Demand for interim leadership was lower compared to prior year but higher sequentially.

Current wording

In our physician and leadership solutions segment, demand for our locum tenens staffing business in the third quarter increased from prior year and prior quarter. Days filled were lower compared to prior year but up sequentially. Revenue per day filled was up sequentially and year over year. Certified registered nurse anesthetists (CRNAs) continue to be the largest specialty for our locum tenens staffing business. Search business volume in the third quarter was lower compared to prior year and sequentially. Demand for interim leadership was up year over year and compared to prior period.

Previous wording

In our technology and workforce solutions segment, second quarter minutes in our language services business were in line with prior year and higher compared to prior quarter. Ongoing pricing pressure for language services continues to be a headwind due to increased market competition. Volume in our VMS business declined compared to prior year and prior quarter.

Current wording

In our technology and workforce solutions segment, third quarter minutes in our language services business were higher compared to prior year and prior quarter. Pricing pressure for language services continues to be a headwind due to increased market competition. Our VMS revenue declined compared to prior year and prior quarter due to client specific dynamics.

Previous wording

Revenue. Revenue increased 2% to $673.2 million for the three months ended June 30, 2026 from $658.2 million for the same period in 2025, attributable to higher revenue in our nurse and allied solutions segment. Revenue broken down among the reportable segments is as follows:

Current wording

Revenue. Revenue increased 13% to $717.3 million for the three months ended September 30, 2026 from $634.5 million for the same period in 2025, attributable to higher revenue in our nurse and allied solutions segment. Revenue broken down among the reportable segments is as follows:

Previous wording

Nurse and allied solutions segment revenue increased 11% to $422.0 million for the three months ended June 30, 2026 from $381.9 million for the same period in 2025. The $40.1 million increase was primarily attributable to a $20.3 million increase driven by a 6% increase in the average number of travelers on assignment, a $10.0 million increase in labor disruption revenue related to reserve releases and billing true ups from multiple large scale labor disruption events that we supported in the prior periods, an $8.6 million increase driven by non-volume revenue, and a $3.3 million increase driven by a 1% increase in average billable hours.

Current wording

Nurse and allied solutions segment revenue increased 27% to $460.0 million for the three months ended September 30, 2026 from $361.5 million for the same period in 2025. The $98.5 million increase was primarily attributable to a $53.3 million increase driven by a 16% increase in average number of travelers on assignment and a $47.0 million increase in labor disruption revenue related to reserve releases and billing settlements from multiple large scale labor disruption events that we supported in the prior periods.

Previous wording

Physician and leadership solutions segment revenue decreased 6% to $164.6 million for the three months ended June 30, 2026 from $174.5 million for the same period in 2025. The $9.9 million decrease was primarily attributable to lower revenue in our locum tenens business, partially offset by higher revenue in our physician permanent placement and executive search business within the segment. Revenue in our locum tenens business declined $11.8 million (or 8%) due to a $12.1 million decline from an 8% decrease in the number of days filled. Our physician permanent placement and executive search business increased $2.5 million (or 26.7%) primarily due to higher new search volume in the quarter.

Current wording

Physician and leadership solutions segment revenue decreased 4% to $171.2 million for the three months ended September 30, 2026 from $178.2 million for the same period in 2025. The $7.0 million decrease was primarily attributable to a decline in revenue in our locum tenens business of $7.2 million (or 5%) primarily due to a $12.2 million decline from an 8% decrease in the number of days filled.

Previous wording

Technology and workforce solutions segment revenue decreased 15% to $86.7 million for the three months ended June 30, 2026 from $101.8 million for the same period in 2025. The $15.1 million decrease was primarily attributable to declines in our ongoing businesses and a service line divestiture. Revenue for our language services business declined $6.1 million (or 8%) primarily due to lower pricing, our other technology business declined $4.3 million (or 100%) due to the sale of our Smart Square scheduling software in the third quarter of 2025, and our VMS business declined $3.9 million (or 20%) due to lower staffing utilization on the platforms along with several client losses.

Current wording

Technology and workforce solutions segment revenue decreased 9% to $86.1 million for the three months ended September 30, 2026 from $94.8 million for the same period in 2025. The $8.7 million decrease was primarily attributable to declines (1) in our language services business of $5.8 million (or 8%) primarily due to lower pricing and (2) in our VMS business of $1.8 million (or 11%) due to lower utilization on the platforms along with client specific dynamics.

Previous wording

For the three months ended June 30, 2026 and 2025, revenue under our MSP arrangements comprised approximately 46% and 44% of consolidated revenue, 66% and 68% of nurse and allied solutions segment revenue, 19% and 17% of physician and leadership solutions segment revenue, and 1% and 3% of technology and workforce solutions segment revenue, respectively.

Current wording

For the three months ended September 30, 2026 and 2025, revenue under our MSP arrangements comprised approximately 49% and 41% of consolidated revenue, 70% and 63% of nurse and allied solutions segment revenue, 18% and 18% of physician and leadership solutions segment revenue, and 1% and 2% of technology and workforce solutions segment revenue, respectively.

Previous wording

Cost of Revenue. Cost of revenue, which consists predominantly of compensation, benefits, housing, travel and allowance costs for healthcare professionals and medically qualified interpreters, increased 1% to $467.4 million for the three months ended June 30, 2026 from $461.8 million for the same period in 2025. The $5.6 million increase was primarily attributable to the increase in our nurse and allied solutions segment. Cost of revenue broken down among the reportable segments is as follows:

Current wording

Cost of Revenue. Cost of revenue, which consists predominantly of compensation, benefits, housing, travel and allowance costs for healthcare professionals and medically qualified interpreters, increased 8% to $488.1 million for the three months ended September 30, 2026 from $450.1 million for the same period in 2025. The $38.1 million increase was primarily attributable to the increase in our nurse and allied solutions segment. Cost of revenue broken down among the reportable segments is as follows:

Previous wording

The increase in our nurse and allied solutions segment was primarily attributable to a $9.3 million increase in clinician pay package costs, including housing, travel and allowances, primarily due to the increase in the average number of travelers on assignment.

Current wording

The increase in our nurse and allied solutions segment was primarily attributable to a $39.3 million increase in clinician pay package costs, including housing, travel and allowances, primarily due to the increase in the average number of travelers on assignment.

Previous wording

Gross Profit. Gross profit increased 5% to $205.9 million for the three months ended June 30, 2026 from $196.4 million for the same period in 2025, representing gross margins of 30.6% and 29.8%, respectively. The increase in consolidated gross margin for the three months ended June 30, 2026, as compared to the same period in 2025, was primarily due to higher margin in our nurse and allied solutions segment driven by reserve releases and billing true ups from multiple large scale labor disruption events that we supported in the prior periods. The overall increase was partially offset by (1) a lower margin in our physician and leadership solutions segment driven by increases in sales reserve and allowances and (2) a lower margin in our technology and workforce solutions segment primarily due to lower bill rates in our language services business due to increased market competition, a shift in sales mix resulting from reduced revenue in our higher-margin VMS business, and the sale of our Smart Square scheduling software. Gross margin by reportable segment for the three months ended June 30, 2026 and 2025 was 28.4% and 23.9% for nurse and allied solutions, 26.5% and 28.2% for physician and leadership solutions, and 48.6% and 55.1% for technology and workforce solutions, respectively. Gross profit broken down among the reportable segments is as follows:

Current wording

Gross Profit. Gross profit increased 24% to $229.1 million for the three months ended September 30, 2026 from $184.4 million for the same period in 2025, representing gross margins of 31.9% and 29.1%, respectively. The increase in consolidated gross margin for the three months ended September 30, 2026, as compared to the same period in 2025, was primarily due to higher margin in our nurse and allied solutions segment driven by reserve releases and billing settlements from multiple large scale labor disruption events that we supported in the prior periods. The overall increase was partially offset by (1) a lower margin in our physician and leadership solutions segment driven by lower spreads in our locum tenens business, partially offset by favorable sales reserve and allowances adjustments and (2) a lower margin in our technology and workforce solutions segment primarily due to lower bill rates in our language services business due to increased market competition and a shift in sales mix resulting from reduced revenue in our higher-margin VMS business. Gross margin by reportable segment for the three months ended September 30, 2026 and 2025 was 30.9% and 24.1% for nurse and allied solutions, 27.0% and 27.2% for physician and leadership solutions, and 47.7% and 51.5% for technology and workforce solutions, respectively. Gross profit broken down among the reportable segments is as follows:

Previous wording

Selling, General and Administrative Expenses. Selling, general and administrative (“SG&A”) expenses consist predominantly of compensation and benefits costs for corporate employees, in addition to professional service fees, legal matter accruals and other overhead costs. SG&A expenses were $147.4 million, representing 21.9% of revenue, for the three months ended June 30, 2026, as compared to $154.6 million, representing 23.5% of revenue, for the same period in 2025. The decrease in SG&A expenses was primarily due to a $5.8 million decrease in the provision for expected credit losses. SG&A expenses broken down among the reportable segments, unallocated corporate overhead, and share-based compensation are as follows:

Current wording

Selling, General and Administrative Expenses. Selling, general and administrative (“SG&A”) expenses consist predominantly of compensation and benefits costs for corporate employees, in addition to professional service fees, legal matter accruals and other overhead costs. SG&A expenses were $149.3 million, representing 20.8% of revenue, for the three months ended September 30, 2026, as compared to $138.6 million, representing 21.8% of revenue, for the same period in 2025. The increase in SG&A expenses was primarily due to a $3.0 million increase in liability insurance and a $2.9 million increase in the provision for expected credit losses. SG&A expenses broken down among the reportable segments, unallocated corporate overhead, and share-based compensation are as follows:

Previous wording

Depreciation and Amortization Expenses. Amortization expense decreased 11% to $17.5 million for the three months ended June 30, 2026 from $19.6 million for the same period in 2025, primarily attributable to having more intangible assets fully amortized during the three months ended June 30, 2026. Depreciation expense (exclusive of depreciation included in cost of revenue) decreased 23% to $14.1 million for the three months ended June 30, 2026 from $18.1 million for the same period in 2025, primarily attributable to the mix of depreciable assets and their useful lives. Additionally, $2.5 million and $2.1 million of depreciation expense for our language services business is included in cost of revenue for the three months ended June 30, 2026 and 2025, respectively.

Current wording

Depreciation and Amortization Expenses. Amortization expense decreased 21% to $16.3 million for the three months ended September 30, 2026 from $20.4 million for the same period in 2025, primarily attributable to having more intangible assets fully amortized during the three months ended September 30, 2026. Depreciation expense (exclusive of depreciation included in cost of revenue) decreased 23% to $13.1 million for the three months ended September 30, 2026 from $16.9 million for the same period in 2025, primarily attributable to the mix of depreciable assets and their useful lives. Additionally, $2.5 million and $2.2 million of depreciation expense for our language services business is included in cost of revenue for the three months ended September 30, 2026 and 2025, respectively.

Previous wording

Interest Expense, Net, and Other. Interest expense, net, and other was $7.0 million during the three months ended June 30, 2026 as compared to $11.4 million for the same period in 2025. The decrease was primarily due to a lower average debt outstanding balance, as well as interest income earned on excess cash during the three months ended June 30, 2026.

Current wording

Interest Expense, Net, and Other. Interest expense, net, and other was $7.3 million during the three months ended September 30, 2026 as compared to $9.6 million for the same period in 2025. The decrease was primarily due to a lower average debt outstanding balance, as well as interest income earned on excess cash during the three months ended September 30, 2026.

Previous wording

Income Tax Benefit. Income tax benefit was $(1.3) million for the three months ended June 30, 2026 as compared to $(18.9) million for the same period in 2025, reflecting effective income tax rates of (6)% and 14% for these periods, respectively. The decrease in the effective income tax rate wasprimarily attributable to the recognition of$0.6 million of net discrete tax expense during the three months ended June 30, 2026 compared to a $0.9 million net discrete tax expense during the same period in 2025, along with a goodwill impairment loss recognized in the prior year, in relation to income (loss) before income taxes of $19.9 million and $(135) million for the three months ended June 30, 2026 and 2025, respectively. We currently estimate our annual effective tax rate to be approximately 36% for 2026. The (6)% effective tax rate for the three months ended June 30, 2026 differs from our estimated annual effective tax rate of 36% primarily due to certain tax benefits recognized during the three months ended June 30, 2026, in relation toincome before income taxes.

Current wording

Income Tax Expense. Income tax expense was $9.8 million for the three months ended September 30, 2026 as compared to $8.7 million for the same period in 2025, reflecting effective income tax rates of 23% for these periods. We currently estimate our annual effective tax rate to be approximately 33% for 2026. The 23% effective tax rate for the three months ended September 30, 2026 differs from our estimated annual effective tax rate of 33% primarily due to certain tax benefits recognized during the three months ended September 30, 2026, in relation toincome before income taxes.

Previous wording

Comparison of Results for the Six Months Ended June 30, 2026 to the Six Months Ended June 30, 2025

Current wording

Comparison of Results for the Nine Months Ended September 30, 2026 to the Nine Months Ended September 30, 2025

Previous wording

Revenue. Revenue increased 52% to $2,051.6 million for the six months ended June 30, 2026 from $1,347.7 million for the same period in 2025, attributable to higher revenue in our nurse and allied solutions segment. Revenue broken down among the reportable segments is as follows:

Current wording

Revenue. Revenue increased 40% to $2,768.9 million for the nine months ended September 30, 2026 from $1,982.2 million for the same period in 2025, attributable to higher revenue in our nurse and allied solutions segment. Revenue broken down among the reportable segments is as follows:

Previous wording

Nurse and allied solutions segment revenue increased 95% to $1,549.3 million for the six months ended June 30, 2026 from $795.1 million for the same period in 2025. The $754.2 million increase was primarily attributable to a $693.0 million increase in labor disruption revenue from multiple large scale labor disruption events that we supported in the current year, a $30.4 million increase driven by a 4% increase in the average number of travelers on assignment, a $19.1 million increase driven by an approximately 3% increase in the average bill rate, and a $6.4 million increase driven by an approximately 1% increase in average billable hours.

Current wording

Nurse and allied solutions segment revenue increased 74% to $2,009.3 million for the nine months ended September 30, 2026 from $1,156.6 million for the same period in 2025. The $852.7 million increase was primarily attributable to a $740.0 million increase in labor disruption revenue from multiple large scale labor disruption events that we supported in the current year, an $83.7 million increase driven by a 7% increase in the average number of travelers on assignment, a $19.2 million increase driven by an approximately 2% increase in the average bill rate, and a $9.1 million increase driven by an approximately 1% increase in average billable hours.

Previous wording

Physician and leadership solutions segment revenue decreased 6% to $328.5 million for the six months ended June 30, 2026 from $348.6 million for the same period in 2025. The $20.1 million decrease in the segment revenue was primarily attributable to a decline in revenue in our locum tenens business due to a $25.0 million decline driven by a 9% decrease in the number of days filled, partially offset by a $3.5 million increase driven by a 1% increase in the revenue per day filled.

Current wording

Physician and leadership solutions segment revenue decreased 5% to $499.7 million for the nine months ended September 30, 2026 from $526.8 million for the same period in 2025. The $27.1 million decrease in the segment revenue was primarily attributable to a decline in revenue in our locum tenens business due to a $37.2 million decline driven by a 9% decrease in the number of days filled, partially offset by an $8.5 million increase driven by a 2% increase in the revenue per day filled.

Previous wording

Technology and workforce solutions segment revenue decreased 15% to $173.8 million for the six months ended June 30, 2026 from $204.0 million for the same period in 2025. The $30.2 million decrease was primarily attributable to declines in our ongoing businesses and a service line divestiture. Revenue for our language services business declined $12.1 million (or 8%) primarily due to lower pricing, our other technology business declined $8.7 million (or 100%) due to the sale of our Smart Square scheduling software in the third quarter of 2025, and our VMS business declined $7.3 million (or 19%) primarily due to lower staffing utilization on the platforms along with several client losses.

Current wording

Technology and workforce solutions segment revenue decreased 13% to $259.8 million for the nine months ended September 30, 2026 from $298.8 million for the same period in 2025. The $39.0 million decrease was primarily attributable to declines in our ongoing businesses and a service line divestiture. Revenue for our language services business declined $17.8 million (or 8%) primarily due to lower pricing, our other technology business declined $8.7 million (or 100%) primarily due to the sale of our Smart Square scheduling software in the third quarter of 2025, and our VMS business declined $9.2 million (or 17%) primarily due to lower utilization on the platforms along with client specific dynamics.

Previous wording

For the six months ended June 30, 2026 and 2025, revenue under our MSP arrangements comprised approximately 65% and 46% of consolidated revenue, 82% and 69% of nurse and allied solutions segment revenue, 20% and 18% of physician and leadership solutions segment revenue, and 1% and 4% of technology and workforce solutions segment revenue, respectively.

Current wording

For the nine months ended September 30, 2026 and 2025, revenue under our MSP arrangements comprised approximately 62% and 45% of consolidated revenue, 80% and 67% of nurse and allied solutions segment revenue, 20% and 18% of physician and leadership solutions segment revenue, and 1% and 3% of technology and workforce solutions segment revenue, respectively.

Previous wording

Cost of Revenue. Cost of revenue increased 55% to $1,476.9 million for the six months ended June 30, 2026 from $953.2 million for the same period in 2025. The $523.7 million increase was primarily attributable to the increase in our nurse and allied solutions segment. Cost of revenue broken down among the reportable segments is as follows:

Current wording

Cost of Revenue. Cost of revenue increased 40% to $1,965.0 million for the nine months ended September 30, 2026 from $1,403.3 million for the same period in 2025. The $561.8 million increase was primarily attributable to the increase in our nurse and allied solutions segment. Cost of revenue broken down among the reportable segments is as follows:

Previous wording

The increase in our nurse and allied solutions segment was primarily attributable to a $529.6 million increase in clinician pay package costs, including housing, travel and allowances, primarily due to the increase in labor disruption activities.

Current wording

The increase in our nurse and allied solutions segment was primarily attributable to a $568.9 million increase in clinician pay package costs, including housing, travel and allowances, primarily due to the increase in labor disruption activities.

Previous wording

Gross Profit. Gross profit increased 46% to $574.7 million for the six months ended June 30, 2026 from $394.5 million for the same period in 2025, representing gross margins of 28.0% and 29.3%, respectively. The decline in consolidated gross margin for the six months ended June 30, 2026, as compared to the same period in 2025, was primarily due to (1) lower margins in our physician and leadership solutions segments driven by increases in sales reserve and allowances, compression in provider rates, including housing and travel, and increased market competition and (2) a lower margin in our technology and workforce solutions segment primarily due to pricing pressure for our language services business due to increased market competition and a shift in sales mix resulting from reduced revenue in our higher-margin VMS business and the sale of our Smart Square scheduling software. The overall decline was partially offset by a revenue mix shift to higher margin labor disruption business in our nurse and allied solutions segment. Gross margin by reportable segment for the six months ended June 30, 2026 and 2025 was 26.0% and 23.3% for nurse and allied solutions, 26.3% and 27.7% for physician and leadership solutions, and 49.3% and 55.3% for technology and workforce solutions, respectively. Gross profit broken down among the reportable segments is as follows:

Current wording

Gross Profit. Gross profit increased 39% to $803.8 million for the nine months ended September 30, 2026 from $578.9 million for the same period in 2025, representing gross margins of 29.0% and 29.2%, respectively. The decline in consolidated gross margin for the nine months ended September 30, 2026, as compared to the same period in 2025, was primarily due to (1) a change in sales mix resulting from higher revenue in our nurse and allied solutions segment, including higher labor disruption support and lower revenue in the physician and leadership solutions segment and technology and workforce solutions segment, (2) lower margins in our physician and leadership solutions segments driven by lower spreads in our locum tenens business, partially offset by favorable sales reserve and allowances adjustments and (3) a lower margin in our technology and workforce solutions segment primarily due to pricing pressure for our language services business due to increased market competition, a shift in sales mix resulting from reduced revenue in our higher-margin VMS and outsourced solutions business, and the sale of our Smart Square scheduling software. The overall decline was partially offset by a revenue mix shift to higher margin labor disruption business in our nurse and allied solutions segment. Gross margin by reportable segment for the nine months ended September 30, 2026 and 2025 was 27.1% and 23.5% for nurse and allied solutions, 26.6% and 27.6% for physician and leadership solutions, and 48.8% and 54.1% for technology and workforce solutions, respectively. Gross profit broken down among the reportable segments is as follows:

Previous wording

Selling, General and Administrative Expenses. SG&A expenses were $365.8 million, representing 17.8% of revenue, for the six months ended June 30, 2026, as compared to $302.3 million, representing 22.4% of revenue, for the same period in 2025. The increase in SG&A expenses was primarily due to a $43.7 million increase in employee compensation and benefits (inclusive of share-based compensation) and a $21.8 million increase in other expenses primarily in support of the large labor disruption events in the current year. SG&A expenses broken down among the reportable segments, unallocated corporate overhead, and share-based compensation are as follows:

Current wording

Selling, General and Administrative Expenses. SG&A expenses were $515.1 million, representing 18.6% of revenue, for the nine months ended September 30, 2026, as compared to $440.9 million, representing 22.2% of revenue, for the same period in 2025. The increase in SG&A expenses was primarily due to a $46.2 million increase in employee compensation and benefits

Previous wording

Depreciation and Amortization Expenses. Amortization expense decreased 9% to $35.4 million for the six months ended June 30, 2026 from $39.0 million for the same period in 2025, primarily attributable to certain intangible assets becoming fully amortized during the six months ended June 30, 2026. Depreciation expense (exclusive of depreciation included in cost of revenue) decreased 20% to $29.4 million for the six months ended June 30, 2026 from $36.6 million for the same period in 2025, primarily attributable to the mix of depreciable assets and their useful lives. Additionally, $4.9 million and $4.1 million of depreciation expense for our language services business is included in cost of revenue for the six months ended June 30, 2026 and 2025, respectively.

Current wording

Depreciation and Amortization Expenses. Amortization expense decreased 13% to $51.7 million for the nine months ended September 30, 2026 from $59.5 million for the same period in 2025, primarily attributable to certain intangible assets becoming fully amortized during the nine months ended September 30, 2026. Depreciation expense (exclusive of depreciation included in cost of revenue) decreased 21% to $42.4 million for the nine months ended September 30, 2026 from $53.5 million for the same period in 2025, primarily attributable to the mix of depreciable assets and their useful lives. Additionally, $7.4 million and $6.4 million of depreciation expense for our language services business is included in cost of revenue for the nine months ended September 30, 2026 and 2025, respectively.

Previous wording

Goodwill Impairment Loss. A goodwill impairment loss of $109.5 million was recognized in the physician and leadership solutions segment during the three months ended June 30, 2025.

Current wording

Goodwill Impairment Loss. A goodwill impairment loss of $109.5 million was recognized in the physician and leadership solutions segment during the nine months ended September 30, 2025.

Previous wording

Long-Lived Assets Impairment Loss. An impairment loss of $18.3 million was recognized for intangible assets during the three months ended June 30, 2025.

Current wording

Long-Lived Assets Impairment Loss. An impairment loss of $18.3 million was recognized for intangible assets during the nine months ended September 30, 2025.

Previous wording

Interest Expense, Net, and Other. Interest expense, net, and other was $13.7 million during the six months ended June 30, 2026 as compared to $23.7 million for the same period in 2025. The decrease was primarily due to a lower average debt outstanding balance, as well as interest income earned on excess cash during the six months ended June 30, 2026.

Current wording

Interest Expense, Net, and Other. Interest expense, net, and other was $21.1 million during the nine months ended September 30, 2026 as compared to $33.3 million for the same period in 2025. The decrease was primarily due to a lower average debt outstanding balance, as well as interest income earned on excess cash during the nine months ended September 30, 2026.

Previous wording

Income Tax Expense (Benefit). Income tax expense (benefit) was $47 million for the six months ended June 30, 2026 as compared to $(17.6) million for the same period in 2025, reflecting effective income tax rates of 36% and 13% for the six months ended June 30, 2026 and 2025, respectively. The increase in the effective income tax rate was primarily attributable to a significant increase in income (loss) before income taxes year over year, mostly related to the increase in labor disruption revenue in the current year and the goodwill impairment loss recognized in the prior year.

Current wording

Income Tax Expense (Benefit). Income tax expense (benefit) was $57 million for the nine months ended September 30, 2026 as compared to $(8.9) million for the same period in 2025, reflecting effective income tax rates of 33% and 9% for the nine months ended September 30, 2026 and 2025, respectively. The increase in the effective income tax rate was primarily attributable to a significant increase in income (loss) before income taxes year over year, mostly related to the increase in labor disruption revenue in the current year and the goodwill impairment loss recognized in the prior year.

Previous wording

As of June 30, 2026, the total of our contractual obligations under operating leases with initial terms in excess of one year was $38.0 million. We describe in further detail our operating lease arrangements in Part II, Item 8, “Financial Statements and Supplementary Data—Notes to Consolidated Financial Statements—Note (6), Leases” of our 2025 Annual Report. We also have various obligations and working capital requirements, such as certain tax and legal matters, contingent consideration and other liabilities, that are recorded on our consolidated balance sheets. See additional information in the accompanying Note (6), “Fair Value Measurement,” Note (7), “Income Taxes,” Note (8), “Commitments and Contingencies,” and Note (9), “Balance Sheet Details.”

Current wording

As of September 30, 2026, the total of our contractual obligations under operating leases with initial terms in excess of one year was $36.3 million. We describe in further detail our operating lease arrangements in Part II, Item 8, “Financial Statements and Supplementary Data—Notes to Consolidated Financial Statements—Note (6), Leases” of our 2025 Annual Report. We also have various obligations and working capital requirements, such as certain tax and legal matters, contingent consideration and other liabilities, that are recorded on our consolidated balance sheets. See additional information in the accompanying Note (6), “Fair Value Measurement,” Note (7), “Income Taxes,” Note (8), “Commitments and Contingencies,” and Note (9), “Balance Sheet Details.”

Previous wording

Net cash provided by operating activities for the six months ended June 30, 2026 was $372.5 million, compared to $171.2 million for the same period in 2025. The increase in net cash provided by operations was primarily attributable to (1) a year-over-year increase in net income (loss) excluding non-cash items of $95.5 million primarily due to higher segment operating income in our nurse and allied solutions segment, (2) an increase in other liabilities between periods of $91.2 million primarily related to receipts of client deposits and related reserves, (3) an increase in accounts payable and accrued expenses between periods of $37.9 million primarily due to the timing of payments, and (4) an increase in accrued compensation and benefits between periods of $33.2 million primarily related to our labor disruption services.

Current wording

Net cash provided by operating activities for the nine months ended September 30, 2026 was $285.0 million, compared to $193.9 million for the same period in 2025. The increase in net cash provided by operations was primarily attributable to (1) a $103.1 million year-over-year increase in net income (loss) excluding non-cash items primarily due to higher segment operating income in our nurse and allied solutions segment, (2) a $44.1 million increase in accrued compensation and benefits between periods primarily related to our labor disruption services, and (3) a $39.1 million increase in accounts payable and accrued expenses between periods primarily due to the timing of payments.

Previous wording

The overall increase in net cash provided by operating activities was partially offset by an increase in accounts receivable and subcontractor receivables between periods of $52.4 million primarily due to the timing of collections.

Current wording

The overall increase in net cash provided by operating activities was partially offset by a $94.0 million increase in accounts receivable and subcontractor receivables between periods primarily due to the timing of collections.

Previous wording

Our Days Sales Outstanding (“DSO”) was 52 days as of June 30, 2026, 47 days as of December 31, 2025, and 54 days as of June 30, 2025; excluding our labor disruption business, DSO was 54 days, 56 days and 56 days, respectively.

Current wording

Our Days Sales Outstanding (“DSO”) was 54 days as of September 30, 2026, 47 days as of December 31, 2025, and 57 days as of September 30, 2025; excluding our labor disruption business, DSO was 58 days, 56 days and 58 days, respectively.

Previous wording

Net cash used in investing activities for the six months ended June 30, 2026 was $19.7 million, compared to net cash used in investing activities of $46.6 million for the same period in 2025. The decrease was primarily due to net proceeds of investments of $0.2 million during the six months ended June 30, 2026, as compared to a net purchase of $26.9 million during the six months ended June 30, 2025. In addition, capital expenditures were $15.8 million and $19.8 million for the six months ended June 30, 2026 and 2025, respectively.

Current wording

Net cash used in investing activities for the nine months ended September 30, 2026 was $38.6 million, compared to net cash provided by investing activities of $12.4 million for the same period in 2025. The change was primarily due to (1) proceeds from the sale of disposal group of $65.3 million during the nine months ended September 30, 2025, (2) capital expenditures of $25.6 million for the nine months ended September 30, 2026, as compared to $27.7 million for the nine months ended September 30, 2025, and (3) a net purchase of investments of $9.5 million during the nine months ended September 30, 2026, as compared to a net purchase of $25.3 million during the nine months ended September 30, 2025.

Previous wording

Net cash used in financing activities during the six months ended June 30, 2026 was $29.5 million, due to repayments of $25.0 million under the Senior Credit Facility, $2.3 million paid in connection with the repurchase of our common stock, and $2.2 million in cash paid for shares withheld for payroll taxes resulting from the vesting of employee equity awards. Net cash used in financing activities during the six months ended June 30, 2025 was $141.4 million, due to repayments of $185.0 million under the Senior Credit Facility and $1.4 million in cash paid for shares withheld for payroll taxes resulting from the vesting of employee equity awards, partially offset by borrowings of $45.0 million under the Senior Credit Facility.

Current wording

Net cash used in financing activities during the nine months ended September 30, 2026 was $38.2 million, due to repayments of $25.0 million under the Senior Credit Facility, $10.7 million paid in connection with the repurchase of our common stock, and $2.6 million in cash paid for shares withheld for payroll taxes resulting from the vesting of employee equity awards. Net cash used in financing activities during the nine months ended September 30, 2025 was $212.7 million, due to repayments of $285.0 million under the Senior Credit Facility and $1.7 million in cash paid for shares withheld for payroll taxes resulting from the vesting of employee equity awards, partially offset by borrowings of $75.0 million under the Senior Credit Facility.

Previous wording

•any increase to our business and operating risks as we develop new services and clients, enter new lines of business, and focus more of our business on providing a full range of client solutions;

Current wording

•any increase to our business and operating risks as we develop new services and clients, further adopt and integrate AI into our services and operations, enter new lines of business, and focus more of our business on providing a full range of client solutions;