Short answer:
The earnings release you provided does not mention any specific contract wins or losses, so there is no direct information in this announcement that explains the 19âŻ% yearâoverâyear (and 7âŻ% quarterâoverâquarter) decline in revenue.
Why the news itself canât pinpoint a contractârelated cause
| Item in the release | What it tells us | What it doesnât tell us |
|---|---|---|
| Revenue figure (â19âŻ% YoY, â7âŻ% QoQ) | Revenue fell sharply compared with the same quarter last year and with the prior quarter. | The underlying drivers of that decline â e.g., lost/fewer client contracts, reduced staffing levels, pricing changes, seasonal effects, or macroâeconomic factors â are not disclosed. |
| Grossâprofit margin (down 40âŻbps YoY, up 40âŻbps QoQ) | Margins moved slightly, but the direction is mixed, suggesting cost structure changed modestly. | No detail on whether margin shifts are tied to particular contract mixes (highâmargin vs lowâmargin work) or to operational efficiencies. |
| Net loss and other financial metrics | The company posted a net loss of $6.7âŻM. | No breakdown of the loss relative to contract performance. |
| Narrative/Management commentary | The excerpt you shared contains only the headline numbers; there is no accompanying âManagement Discussion & Analysisâ section. | Managementâs commentary often mentions contract wins/losses, but this excerpt does not include it. |
What could typically cause a revenue dip in a staffingâoriented healthcareâservices firm like Cross Country Healthcare?
While we cannot confirm any specific contract activity for Q2âŻ2025 from the provided text, the following are common factors that historically affect revenue at companies in this space:
| Potential driver | How it could affect revenue |
|---|---|
| Loss of large hospital or healthâsystem contracts (e.g., nonârenewal or termination of a multiâyear perâdiem agreement) | Removes a sizable, recurring revenue stream, instantly depressing quarterly sales. |
| Reduced contract volumes (e.g., a client scales back its temporaryâstaffing needs due to budget cuts or lower patient census) | Lowers billable hours/assignments, leading to a proportional revenue decline. |
| Competitive win by a rival (e.g., a competitor wins a bid for a regional staffing contract) | Shifts future revenue away from Cross Country. |
| Delay in contract start dates (e.g., new contracts signed but not yet active) | Creates a timing gap where expected revenue is postponed to a later quarter. |
| Pricing pressure (e.g., renegotiated rates that are lower than prior periods) | Reduces revenue per assignment even if volume stays stable. |
| Seasonality (e.g., slower demand in the summer months for certain specialties) | Can cause a modest, predictable dip that is amplified if it coincides with other headwinds. |
| Regulatory or payer changes (e.g., new staffing caps, changes in Medicare/Medicaid reimbursement) | May force clients to reduce reliance on temporary staffing, lowering revenue. |
What to look for in the full earnings release or subsequent filings
If you need a definitive answer about contract wins or losses, the following sections of the full earnings release (or the accompanying FormâŻ10âQ) usually contain the relevant details:
- Management Discussion & Analysis (MD&A): Companies often discuss âcontract winsâ (e.g., new multiâyear agreements) and âcontract expirations or terminationsâ here, and they will link those events to revenue trends.
- Segment/Geography Commentary: If a particular business segment (e.g., âTravel Nursingâ or âLocum Tenensâ) fell off, the MD&A will often attribute the change to specific client activity.
- Outlook / Guidance Section: Management may reference upcoming contract wins that they expect to offset the dip, or they may note the impact of lost contracts on future guidance.
- Press Releases / Investor Presentations: Companies sometimes issue separate news items titled âCross Country Healthcare Secures $XâŻmillion Contract with XYZ Health System,â which are not embedded in the earnings release but are linked in the Investor Relations site.
Bottom line
- The excerpt you provided does not contain any mention of specific contract wins or losses, so we cannot directly point to a contract event that explains the revenue decline.
- To determine the precise cause, you would need to review the complete earnings release (especially the MD&A), the accompanying SEC filing, or any supplemental press announcements that discuss contract activity during the quarter.
- In the absence of that information, the revenue dip could be due to any of the typical contractârelated drivers listed above. If you have access to the full filing or additional news releases, feel free to share them, and I can help extract the contractâspecific details.
Other Questions About This News
How does the continued net loss impact the company's balance sheet and future capital raising needs?
What macroâeconomic factors, such as labor shortages or reimbursement rates, could influence the company's performance in upcoming quarters?
Will the negative sentiment score of -70 likely amplify shortâterm price volatility?
How does Cross Country Healthcare's Q2 2025 performance compare to its competitors in the healthcare staffing sector?
What factors contributed to the 40 basisâpoint improvement in gross profit margin despite lower revenue?
What guidance or outlook does management provide for the remainder of 2025 and beyond?
How will the 19% decline in Q2 2025 revenue affect the company's cash flow and operating runway?
Is the widening net loss attributable to common stockholders a sign of deteriorating profitability or a oneâtime charge?
Are there any operational or strategic initiatives underway to reverse the negative revenue trend?