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Jackson Announces First Quarter 2025 Results

LANSING, Mich.–(BUSINESS WIRE)–Jackson Financial Inc. (NYSE: JXN) (Jackson®) today announced its financial results for the first quarter ended March 31, 2025.

First Quarter 2025 Key Highlights

• Retail annuity sales¹ of $4.0 billion in the first quarter of 2025, up 9% from the first quarter of 2024
  • Variable annuity sales¹ of $2.7 billion in the first quarter of 2025, up 9% from the first quarter of 2024, with a more than 40% increase in sales of variable annuities without lifetime benefits
  • Registered index-linked annuity (RILA) sales of $1.2 billion in the first quarter of 2025, up 3% from the first quarter of 2024
  • Fixed and fixed index annuity sales of $174 million in the first quarter of 2025, up 74% from the first quarter of 2024
• Net income (loss) attributable to Jackson Financial Inc. common shareholders of $(35) million, or $(0.48) per diluted share in the first quarter of 2025, partially driven by a loss on reinsured business, compared to $784 million, or $9.94 per diluted share in the first quarter of 2024
• Adjusted operating earnings² of $376 million, or $5.10 per diluted share in the first quarter of 2025, compared to $334 million, or $4.23 per diluted share in the first quarter of 2024, driven largely by higher spread income resulting from growth in average RILA assets under management (AUM), and a reduction in the diluted share count due to common share repurchases
• Adjusted operating earnings growth driven in part by a 2% increase in average annuity AUM, from $242 billion in the first quarter of 2024 to $246 billion in the first quarter of 2025, largely due to higher average RILA AUM
• Robust capital position at the operating company, with total adjusted capital of over $5.2 billion and an estimated risk-based capital (RBC) ratio at Jackson National Life Insurance Company (JNLIC) of 585%
• Free cash flow² in the first quarter of 2025 of $213 million reflecting distributions from our operating company of $240 million. Free cash flow for the 12 months ended March 31, 2025, totaled nearly $1 billion, reflecting distributions from our operating company of nearly $1.1 billion.
• Returned $231 million to common shareholders in the first quarter of 2025 through $172 million of common share repurchases and $59 million in common dividends
• Cash and highly liquid securities at the holding company of over $600 million as of March 31, 2025, which was above Jackson’s targeted $250 million minimum liquidity buffer

Laura Prieskorn, President and Chief Executive Officer of Jackson, stated, “Our first quarter results demonstrate the continued strength of our business and progress on our strategic objectives. We achieved 9% growth in retail annuity sales compared to the same period last year with growth across all product lines. Our robust in-force book of business delivered free cash flow of $213 million, which was substantially higher than the first quarter of 2024, and delivered nearly $1 billion over the last 12 months ended March 31, 2025. Additionally, we are off to a positive start toward achieving our financial targets, growing our capital and RBC position in the first quarter of 2025, returning $231 million to common shareholders in the first quarter, and retaining healthy levels of excess cash at the holding company. We anticipate building upon this momentum through the remainder of 2025 and delivering on our mission of helping Americans secure their financial futures.”

Consolidated First Quarter 2025 Results

The Company reported net income (loss) attributable to Jackson Financial Inc. common shareholders of $(35) million, or $(0.48) per diluted share for the three months ended March 31, 2025, compared to $784 million, or $9.94 per diluted share gain for the three months ended March 31, 2024. The net loss in the first quarter reflected a $161 million loss from business reinsured to third parties, while the prior year’s first quarter included a gain on that business of $69 million. The results of reinsured business can differ significantly from quarter to quarter; however, these results do not impact our statutory capital or free cash flow and have a minimal net impact on shareholders’ equity because of the offset from related changes in Accumulated Other Comprehensive Income (AOCI). Net income in the first quarter also has an unfavorable net hedging result compared to the prior year’s first quarter, driven in part by the comparative impact to market risk benefits movements from equity index volatility, which we do not hedge. We believe the non-GAAP measure of adjusted operating earnings better represents the underlying performance of our business as adjusted operating earnings exclude, among other things, changes in the fair value of derivative instruments and market risk benefits tied to market volatility.

Adjusted operating earnings for the three months ended March 31, 2025, were $376 million, or $5.10 per diluted share, compared to $334 million or $4.23 per diluted share for the three months ended March 31, 2024. The current quarter adjusted operating earnings per share benefited from higher spread income resulting from growth in average RILA AUM, and a reduction in the diluted share count due to common share repurchases.

Total common shareholders’ equity was $9.8 billion or $135.43 per diluted share as of March 31, 2025, compared to $9.2 billion or $124.21 per diluted share as of December 31, 2024. Adjusted book value attributed to common shareholders³ was $11.0 billion or $152.84 per diluted share as of March 31, 2025, compared to $11.2 billion or $150.11 per diluted share as of December 31, 2024. The per share increase was driven primarily by a reduction in the diluted share count due to common share repurchases and adjusted operating earnings of $0.4 billion. This was partially offset by capital return to shareholders during the first quarter of 2025, non-operating net hedging losses, and non-operating deferred acquisition cost (DAC) amortization. Adjusted operating return on equity for the first quarter of 2025 was 13.6%, compared to 12.0% in the first quarter of 2024.

Segment Results – Pretax Adjusted Operating Earnings³

	Three Months Ended
(in millions)	March 31, 2025	March 31, 2024
Retail Annuities	$420	$419
Institutional Products	18	31
Closed Life and Annuity Blocks	28	19
Corporate and Other	(24)	(80)
Total4	$442	$389

Retail Annuities

Retail Annuities reported pretax adjusted operating earnings of $420 million in the first quarter of 2025, compared to $419 million in the first quarter of 2024. The current quarter benefited from higher spread income resulting from increased RILA AUM, and higher fee income. These items were partially offset by higher general and administrative costs and other policyholder benefits expenses in the current quarter.

Total retail annuity sales⁵ of $4.0 billion in the first quarter of 2025 were up from $3.7 billion in the first quarter of 2024, with every annuity category showing growth. Traditional variable annuity sales⁵ of $2.7 billion in the current quarter were up from $2.4 billion in the first quarter of 2024. RILA sales of $1.2 billion were up slightly from the first quarter of 2024. Fixed and fixed index annuity sales in the current quarter of $174 million were up from $100 million in the first quarter of 2024.

Institutional Products

Institutional Products reported pretax adjusted operating earnings of $18 million in the first quarter of 2025, compared to $31 million in the first quarter of 2024, driven by lower spread income. Net flows were $736 million in the current quarter, and total account value of $9.3 billion was up from $7.8 billion in the first quarter of 2024.

Closed Life and Annuity Blocks

Closed Life and Annuity Blocks reported pretax adjusted operating income of $28 million in the first quarter of 2025, compared to $19 million in the first quarter of 2024, reflecting higher spread income.

Corporate and Other

Corporate and Other reported a pretax adjusted operating (loss) of $(24) million in the first quarter of 2025, compared to $(80) million in the first quarter of 2024, reflecting lower market-related compensation expenses in the current quarter, and a reinsurance related adjustment in the first quarter of 2024.

Capitalization and Liquidity

(Unaudited, in billions)	March 31, 2025	December 31, 2024
Statutory Total Adjusted Capital (TAC) Jackson National Life Insurance Company	$5.2	$5.1

Statutory TAC at JNLIC was $5.2 billion as of March 31, 2025, up from $5.1 billion as of December 31, 2024. TAC was supported by strong earnings on in-force business, partially offset by a $240 million distribution to JNLIC’s parent during the first quarter and the related reduction in deferred tax asset admissibility. JNLIC’s estimated RBC ratio was 585% as of March 31, 2025, up from December 31, 2024, as higher TAC was only partially offset by a modest increase in estimated company action level required capital. Free cash flow totaled $213 million in the first quarter of 2025, and nearly $1 billion over the last 12 months ended March 31, 2025, reflecting nearly $1.1 billion of distributions from the operating company.

Cash and highly liquid securities at the holding company totaled over $600 million as of March 31, 2025, which was above our targeted minimum liquidity buffer of $250 million.

Earnings Conference Call

Jackson will host a conference call Thursday, May 8, 2025, at 9 a.m. ET to review the first quarter results. The live webcast is open to the public and can be accessed at https://investors.jackson.com. A replay will be available following the call.

To register for the webcast, click here.

FORWARD-LOOKING STATEMENTS

The information in this press release contains forward-looking statements about future events and circumstances and their effects upon revenues, expenses and business opportunities. Generally speaking, any statement in this release not based upon historical fact is a forward-looking statement. Forward-looking statements can also be identified by the use of forward-looking or conditional words, such as “could,” “should,” “can,” “continue,” “estimate,” “forecast,” “intend,” “look,” “may,” “will,” “expect,” “believe,” “anticipate,” “plan,” “predict,” “remain,” “future,” “confident” and “commit” or similar expressions. In particular, statements regarding plans, strategies, prospects, targets and expectations regarding the business and industry are forward-looking statements. They reflect expectations, are not guarantees of performance and speak only as of the dates the statements are made. We caution investors that these forward-looking statements are subject to known and unknown risks and uncertainties that may cause actual results to differ materially from those projected, expressed or implied. Factors that could cause actual results to differ materially from those in the forward-looking statements include those reflected in Part I, Item 1A. Risk Factors and Part II, Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations in our Annual Report on Form 10-K for the year ended December 31, 2024, as filed with the U.S. Securities and Exchange Commission (the SEC) on February 26, 2025, and elsewhere in the Company’s reports filed with the SEC. Except as required by law, Jackson Financial Inc. does not undertake to update such forward-looking statements. You should not rely unduly on forward-looking statements.

Certain financial data included in this release consists of non-GAAP (Generally Accepted Accounting Principles) financial measures. These non-GAAP financial measures may not be comparable to similarly titled measures presented by other entities, nor should they be construed as an alternative to other financial measures determined in accordance with U.S. GAAP. Although the Company believes these non-GAAP financial measures provide useful information to investors in measuring the financial performance and condition of its business, investors are cautioned not to place undue reliance on any non-GAAP financial measures and ratios included in this release. A reconciliation of the non-GAAP financial measures to the most directly comparable U.S. GAAP financial measure can be found in the “Non-GAAP Financial Measures” Appendix of this release.

Certain financial data included in this release consists of statutory accounting principles (“statutory”) financial measures, including “total adjusted capital.” These statutory financial measures are included in or derived from the Jackson National Life Insurance Company annual and/or quarterly statements filed with the Michigan Department of Insurance and Financial Services and available in the investor relations section of the Company’s website at investors.jackson.com/financials/statutory-filings.

ABOUT JACKSON

Jackson® (NYSE: JXN) is committed to helping clarify the complexity of retirement planning—for financial professionals and their clients. Through our range of annuity products, financial know-how, history of award-winning service* and streamlined experiences, we strive to reduce the confusion that complicates retirement planning. We take a balanced, long-term approach to responsibly serving all our stakeholders, including customers, shareholders, distribution partners, employees, regulators and community partners. We believe by providing clarity for all today, we can help drive better outcomes for tomorrow. For more information, visit www.jackson.com.

*SQM (Service Quality Measurement Group) Call Center Awards Program for 2004 and 2006-2024. (Criteria used for Call Center World Class FCR Certification is 80% or higher of customers getting their contact resolved on the first call to the call center (FCR) for 3 consecutive months or more.)

Jackson® is the marketing name for Jackson Financial Inc., Jackson National Life Insurance Company® (Home Office: Lansing, Michigan) and Jackson National Life Insurance Company of New York® (Home Office: Purchase, New York).

WEBSITE INFORMATION

Visit investors.jackson.com to view information regarding Jackson Financial Inc., including a supplement regarding the first quarter results. We routinely use our investor relations website as a primary channel for disclosing key information to our investors. We may use our website as a means of disclosing material, non-public information and for complying with our disclosure obligations. Accordingly, investors should monitor our investor relations website, in addition to following our press releases, filings with the SEC, public conference calls, presentations, and webcasts. We and certain of our senior executives may also use social media channels to communicate with our investors and the public about our Company and other matters, and those communications could be deemed to be material information. The information contained on, or that may be accessed through, our website, our social media channels, or our executives’ social media channels is not incorporated by reference into and is not part of this release.

APPENDIX

Non-GAAP Financial Measures

In addition to presenting our results of operations and financial condition in accordance with U.S. GAAP, we use and report selected non-GAAP financial measures. Management believes the use of these non-GAAP financial measures, together with relevant U.S. GAAP financial measures, provides a better understanding of our results of operations, financial condition and the underlying performance drivers of our business. These non-GAAP financial measures should be considered supplementary to our results of operations and financial condition that are presented in accordance with U.S. GAAP and should not be viewed as a substitute for the U.S. GAAP financial measures. Other companies may use similarly titled non-GAAP financial measures that are calculated differently from the way we calculate such measures. Consequently, our non-GAAP financial measures may not be comparable to similar measures used by other companies.

Adjusted Operating Earnings

Adjusted Operating Earnings is an after-tax, non-GAAP financial measure, which we believe should be used to evaluate our financial performance on a consolidated basis by excluding certain items that may be highly variable from period to period due to accounting treatment under U.S. GAAP or that are non-recurring in nature, as well as certain other revenues and expenses that we do not view as driving our underlying performance. Adjusted Operating Earnings should not be used as a substitute for net income as calculated in accordance with U.S. GAAP. However, we believe the adjustments to net income are useful for gaining an understanding of our overall results of operations.

Free Cash Flow

Free cash flow is Jackson Financial Inc. (Parent Company only) (JFI) net cash provided by (used in) operating activities less preferred stock dividends and capital contributions to PPM, plus the return of capital from subsidiaries. Free cash flow should not be used as a substitute for JFI’s net cash provided by (used in) operating activities in accordance with U.S. GAAP. However, we believe these adjustments are useful to gaining an understanding of our overall available cash flow at JFI for return of capital to common shareholders or other corporate initiatives.

For additional detail on the non-GAAP financial measures, please refer to the supplement regarding the first quarter ended March 31, 2025, posted on our website, https://investors.jackson.com.

The following is a reconciliation of Adjusted Operating Earnings to net income (loss) attributable to Jackson Financial Inc. common shareholders, the most comparable U.S. GAAP measure.

U.S. GAAP Net Income (Loss) to Adjusted Operating Earnings

	Three Months Ended
(in millions, except share and per share data)	March 31, 2025			March 31, 2024
Net income (loss) attributable to Jackson Financial Inc. common shareholders	$	(35	)	$	784
Add: dividends on preferred stock		11			11
Add: income tax expense (benefit)		1			101
Pretax income (loss) attributable to Jackson Financial Inc.		(23	)		896
Non-operating adjustments – (income) loss:
Guaranteed benefits and hedging results:
Fees attributable to guarantee benefit reserves		(768	)		(788	)
Net (gains) losses on hedging instruments		(1,011	)		2,576
Market risk benefits (gains) losses, net		2,246			(2,718	)
Net reserve and embedded derivative movements		(333	)		364
Total net hedging results		134			(566	)
Amortization of DAC associated with non-operating items at date of transition to LDTI1		128			139
Actuarial assumption updates and model enhancements		—			—
Net realized investment (gains) losses		66			7
Net realized investment (gains) losses on funds withheld assets		388			201
Net investment income on funds withheld assets		(227	)		(270	)
Other items		(24	)		(18	)
Total non-operating adjustments		465			(507	)
Pretax adjusted operating earnings		442			389
Less: operating income tax expense (benefit)		55			44
Adjusted operating earnings before dividends on preferred stock		387			345
Less: dividends on preferred stock		11			11
Adjusted operating earnings	$	376		$	334
Weighted Average diluted shares outstanding		73,717,082			78,867,103
Net income (loss) per diluted share	$	(0.48	)	$	9.94
Adjusted Operating Earnings per diluted share	$	5.10		$	4.23
1LDTI – Adoption of FASB issued ASU 2018-12 “Targeted Improvements to the Accounting for Long Duration Contracts”.

The following is a reconciliation of free cash flow at Jackson Financial Inc. (JFI) to JFI net cash provided by operating activities (parent company only), the most comparable U.S. GAAP measure.

Free cash flow at JFI to JFI net cash provided by (used in) operating activities

		Three Months Ended
		March 31, 2025				March 31, 2024
Jackson Financial, Inc. Net cash provided by operating activities (Parent Company Only)		$	29			$	31
Adjustments from net cash provided by operating activities to free cash flow:
Capital distributions from subsidiaries			195				—
Dividends on preferred stock			(11	)			(11	)
Total adjustments			184				(11	)
Free cash flow		$	213			$	20
Free Cash Flow is Comprised of:
Capital distributions from subsidiaries			195				—
Interest on surplus note from subsidiary			45				45
Cash distributed to JFI			240				45
Parent company expenses			(28	)			(26	)
Net investment income and other income			8				4
Other, net			(7	)			(3	)
JFI expenses and other, net			(27	)			(25	)
Free cash flow		$	213			$	20

Adjusted Book Value Attributable to Common Shareholders

Adjusted Book Value Attributable to Common Shareholders excludes Preferred Stock and Accumulated Other Comprehensive Income (Loss) (AOCI) attributable to Jackson Financial Inc (JFI), which does not include AOCI arising from investments held within the funds withheld account related to the Athene Reinsurance Transaction. We exclude AOCI attributable to JFI from Adjusted Book Value Attributable to Common Shareholders because our invested assets are generally invested to closely match the duration of our liabilities, which are longer duration in nature, and therefore we believe period-to-period fair market value fluctuations in AOCI to be inconsistent with this objective. We believe excluding AOCI attributable to JFI is more useful to investors in analyzing trends in our business. Changes in AOCI within the funds withheld account related to the Athene Reinsurance Transaction offset the related non-operating earnings from the Athene Reinsurance Transaction resulting in a minimal net impact on the Adjusted Book Value of JFI.

(in millions)	March 31, 2025		December 31, 2024
Total shareholders’ equity	$	10,301	$	9,764
Less: Preferred equity		533		533
Total common shareholders’ equity		9,768		9,231
Adjustments to total common shareholders’ equity:
Exclude Accumulated Other Comprehensive (Income) Loss attributable to Jackson Financial Inc.		1,256		1,925
Adjusted Book Value Attributable to Common Shareholders	$	11,024	$	11,156

Condensed Consolidated Balance Sheets

		March 31,			December 31,
		2025			2024
(in millions, except share and per share data)
Assets
Investments:
Debt Securities, available-for-sale, net of allowance for credit losses of $40 and $39 at March 31, 2025 and December 31, 2024, respectively (amortized cost: 2025 $46,312; 2024 $45,007)		$	42,243		$	40,289
Debt Securities, at fair value under fair value option			3,430			3,046
Equity securities, at fair value			191			197
Mortgage loans, net of allowance for credit losses of $130 and $121 at March 31, 2025 and December 31, 2024, respectively			9,575			9,462
Mortgage loans, at fair value under fair value option			451			449
Policy loans (including $3,492 and $3,489 at fair value under the fair value option at March 31, 2025 and December 31, 2024, respectively)			4,407			4,403
Freestanding derivative instruments			587			297
Other invested assets			2,844			2,864
Total investments			63,728			61,007
Cash and cash equivalents			3,887			3,767
Accrued investment income			535			529
Deferred acquisition costs			11,770			11,887
Reinsurance recoverable, net of allowance for credit losses of $26 and $27 at March 31, 2025 and December 31, 2024, respectively			21,037			21,830
Reinsurance recoverable on market risk benefits, at fair value			126			121
Market risk benefit assets, at fair value			7,326			8,899
Deferred income taxes, net			382			480
Other assets			830			787
Separate account assets			217,572			229,143
Total assets		$	327,193		$	338,450

Condensed Consolidated Balance Sheets

		March 31,				December 31,
			2025				2024
(in millions, except share and per share data)
Liabilities and Equity
Liabilities
Reserves for future policy benefits and claims payable		$	11,026			$	11,072
Other contract holder funds			59,028				58,312
Market risk benefit liabilities, at fair value			4,125				3,774
Funds withheld payable under reinsurance treaties (including $3,672 and $3,667 at fair value under the fair value option at March 31, 2025 and December 31, 2024, respectively)			16,275				16,742
Long-term debt			2,030				2,034
Repurchase agreements and securities lending payable			1,035				1,554
Collateral payable for derivative instruments			340				150
Freestanding derivative instruments			256				361
Notes issued by consolidated variable interest entities, at fair value under fair value option			2,303				2,343
Other liabilities			2,678				2,983
Separate account liabilities			217,572				229,143
Total liabilities			316,668				328,468
Equity
Series A non-cumulative preferred stock and additional paid in capital, $1.00 par value per share: 24,000 shares authorized; 22,000 shares issued and outstanding at March 31, 2025 and December 31, 2024; liquidation preference $25,000 per share			533				533
Common stock; 1,000,000,000 shares authorized, $0.01 par value per share and 71,878,542 and 73,380,643 shares issued and outstanding at March 31, 2025 and December 31, 2024, respectively			1				1
Additional paid-in capital			6,042				6,046
Treasury stock, at cost; 22,609,773 and 21,107,672 shares at March 31, 2025 and December 31, 2024, respectively			(1,179	)			(1,007	)
Accumulated other comprehensive income (loss), net of tax expense (benefit) of $(216) and $(311) at March 31, 2025 and December 31, 2024, respectively			(2,719	)			(3,522	)
Retained earnings			7,623				7,713
Total shareholders’ equity			10,301				9,764
Noncontrolling interests			224				218
Total equity			10,525				9,982
Total liabilities and equity			327,193				338,450

Condensed Consolidated Income Statements

		Three Months Ended March 31,
(in millions, except per share data)			2025				2024
Revenues
Fee income		$	1,986			$	1,998
Premiums			40				38
Net investment income:
Net investment income excluding funds withheld assets			528				464
Net investment income on funds withheld assets			227				270
Total net investment income			755				734
Net gains (losses) on derivatives and investments:
Net gains (losses) on derivatives and investments			1,343				(2,892	)
Net gains (losses) on funds withheld reinsurance treaties			(388	)			(201	)
Total net gains (losses) on derivatives and investments			955				(3,093	)
Other income			14				1
Total revenues			3,750				(322	)
Benefits and Expenses
Death, other policy benefits and change in policy reserves, net of deferrals			244				221
(Gain) loss from updating future policy benefits cash flow assumptions, net			12				11
Market risk benefits (gains) losses, net			2,246				(2,718	)
Interest credited on other contract holder funds, net of deferrals and amortization			288				273
Interest expense			25				25
Operating costs and other expenses, net of deferrals			677				685
Amortization of deferred acquisition costs			275				278
Total benefits and expenses			3,767				(1,225	)
Pretax income (loss)			(17	)			903
Income tax expense (benefit)			1				101
Net income (loss)			(18	)			802
Less: Net income (loss) attributable to noncontrolling interests			6				7
Net income (loss) attributable to Jackson Financial Inc.			(24	)			795
Less: Dividends on preferred stock			11				11
Net income (loss) attributable to Jackson Financial Inc. common shareholders		$	(35	)		$	784
Earnings per share
Basic		$	(0.48	)		$	10.04
Diluted1		$	(0.48	)		$	9.94

(1) If we reported a net loss attributable to Jackson Financial Inc., all common stock equivalents are anti-dilutive and are therefore excluded from the calculation of diluted shares and diluted per share amounts. The shares excluded from the diluted EPS calculation were 247,765 shares for the three months ended March 31, 2025.

_____________________________

¹ Excludes certain internal exchanges

² For the reconciliation of non-GAAP measures to the most comparable U.S. GAAP measures, please see the explanation of Non-GAAP Financial Measures in the Appendix to this release.

³ For the reconciliation of non-GAAP measures to the most comparable U.S. GAAP measures, please see the explanation of Non-GAAP Financial Measures in the Appendix to this release.

⁴ See reconciliation of Net Income to Total Pretax Adjusted Operating Earnings in the Appendix to this release.

⁵ Excludes certain internal exchanges

View source version on businesswire.com: https://www.businesswire.com/news/home/20250507738173/en/

Investor Relations Contacts:

Liz Werner

[email protected]

Andrew Campbell

[email protected]

Media Contact:

Patrick Rich

[email protected]

KEYWORDS: United States North America Michigan

INDUSTRY KEYWORDS: Banking Professional Services Insurance Finance

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Cross Country Healthcare Announces First Quarter 2025 Financial Results

BOCA RATON, Fla.–(BUSINESS WIRE)–
Cross Country Healthcare, Inc. (the Company) (Nasdaq: CCRN) today announced financial results for its first quarter ended March 31, 2025.

SELECTED FINANCIAL INFORMATION:

					Variance				Variance
					Q1 2025 vs				Q1 2025 vs
Dollars are in thousands, except per share amounts	Q1 2025				Q1 2024				Q4 2024
Revenue	$	293,408				(23	)	%		(5	)	%
Gross profit margin*		20.0		%		(40	)	bps		—		bps
Net loss attributable to common stockholders	$	(490	)			(118	)	%		87		%
Diluted EPS	$	(0.02	)		$	(0.10	)		$	0.10
Adjusted EBITDA*	$	8,619				(44	)	%		(7	)	%
Adjusted EBITDA margin*		2.9		%		(110	)	bps		(10	)	bps
Adjusted EPS*	$	0.06			$	(0.13	)		$	0.02
Cash flows provided by operations	$	5,681				(5	)	%		(77	)	%
* Represents amounts that are not calculated in accordance with U.S. generally accepted accounting principles (GAAP) and are referred to as non-GAAP measures. Please refer to the accompanying discussion below of how these non-GAAP financial measures are calculated and used under “Non-GAAP Financial Measures” and the tables reconciling these measures to the closest GAAP measure.

First Quarter Business Highlights

• Homecare Staffing experienced double-digit sequential and year-over-year revenue growth
• Physician Staffing experienced year-over-year revenue growth
• Cross Country Education experienced double-digit sequential revenue growth
• Continued strong balance sheet with $81 million of cash on hand and no debt as of March 31, 2025

“Our first quarter results reflect solid execution with both Homecare and Physician Staffing business reporting solid year over year growth,” said John A. Martins, President and Chief Executive Officer of Cross Country Healthcare. He continued, “As the market for core nurse and allied continues to stabilize, we remain focused on driving productivity across our business, leveraging our investments in AI automation as well as our cost-effective center of excellence in India to fuel efficiency and improved profitability. Looking ahead, we continue working with Aya Healthcare and the Federal Trade Commission towards the successful consummation of the merger transaction in the second half of this year.”

Regarding the Company’s pending acquisition by Aya Healthcare, Martins further commented, ”We recently learned of the passing of Alan Braynin, founder, former CEO & President of Aya Healthcare, and our hearts go out to his family, friends and to the thousands of Aya employees. Alan was a pioneer and transformational force in the healthcare staffing industry whose presence will be missed by many.”

First quarter consolidated revenue was $293.4 million, a decrease of 23% year-over-year and 5% sequentially. Consolidated gross profit margin was 20.0%, down 40 basis points year-over-year and flat sequentially. Net loss attributable to common stockholders was $0.5 million, as compared to net income of $2.7 million in the prior year and a net loss of $3.8 million in the prior quarter. Diluted earnings per share (EPS) was a net loss of $0.02, as compared to net income of $0.08 in the prior year and a net loss of $0.12 in the prior quarter. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) was $8.6 million, or 2.9% of revenue, as compared with $15.3 million, or 4.0% of revenue, in the prior year, and $9.3 million, or 3.0% of revenue, in the prior quarter. Adjusted EPS was $0.06, as compared to $0.19 in the prior year and $0.04 in the prior quarter.

Quarterly Business Segment Highlights

Nurse and Allied Staffing

Revenue was $242.3 million, a decrease of 27% year-over-year and 6% sequentially. Contribution income was $17.2 million, as compared to $27.2 million in the prior year and $20.3 million in the prior quarter. Average field contract personnel on a full-time equivalent (FTE) basis was 7,411, as compared with 9,124 in the prior year and 7,621 in the prior quarter. Revenue per FTE per day was $360, as compared to $397 in the prior year and $363 in the prior quarter.

Physician Staffing

Revenue was $51.1 million, an increase of 9% year-over-year and a decrease of 4% sequentially. Contribution income was $4.0 million, as compared to $3.1 million in the prior year and $3.5 million in the prior quarter. Total days filled were 22,692, as compared with 23,785 in the prior year and 25,427 in the prior quarter. Revenue per day filled was $2,253, as compared with $1,976 in the prior year and $2,085 in the prior quarter.

Cash Flow and Balance Sheet Highlights

Net cash provided by operating activities for the three months ended March 31, 2025 was $5.7 million, as compared to $6.0 million for the three months ended March 31, 2024 and $24.2 million for the three months ended December 31, 2024. We experienced a 15-day year-over-year improvement in days’ sales outstanding.

During the first quarter of 2025, the Company did not repurchase any shares of its common stock. As of March 31, 2025, the Company had 32.5 million unrestricted shares outstanding and $40.5 million remaining for share repurchase.

As of March 31, 2025, the Company had $80.7 million in cash and cash equivalents with no debt outstanding. There were no borrowings drawn under its revolving senior secured asset-based credit facility (ABL). As of March 31, 2025, borrowing base availability under the ABL was $148.4 million, with $133.5 million of availability net of $14.9 million of letters of credit.

CONFERENCE CALL

As previously disclosed, on December 3, 2024, the Company entered into a merger agreement with Aya Healthcare, Inc. and certain of its subsidiaries (Aya Merger, and such agreement, the Merger Agreement). In light of the pending transaction, the Company will not host an earnings conference call to review first quarter 2025 financial results, nor will it provide forward-looking guidance. This press release is also posted on the Company’s website at ir.crosscountry.com.

ABOUT CROSS COUNTRY HEALTHCARE

Cross Country Healthcare, Inc. is a market-leading, tech-enabled workforce solutions and advisory firm with 39 years of industry experience and insight. We help clients tackle complex labor-related challenges and achieve high-quality outcomes, while reducing complexity and improving visibility through data-driven insights.

Copies of this and other press releases, information about the Company, as well as information about the Aya Merger, can be accessed online at ir.crosscountry.com. Stockholders and prospective investors can also register to automatically receive the Company’s press releases, filings with the Securities and Exchange Commission (SEC), and other notices by e-mail.

NON-GAAP FINANCIAL MEASURES

This press release and the accompanying financial statement tables reference non-GAAP financial measures, such as gross profit margin, adjusted EBITDA, adjusted EBITDA margin, and adjusted EPS. Such non-GAAP financial measures are provided as additional information and should not be considered substitutes for, or superior to, financial measures calculated in accordance with GAAP. Such non-GAAP financial measures are provided for consistency and comparability to prior year results; furthermore, management believes such non-GAAP financial measures are useful to investors when evaluating the Company’s performance, as such non-GAAP financial measures exclude certain items that management believes are not indicative of the Company’s future operating performance. Pro forma measures, if applicable, are adjusted to include the results of our acquisitions, and exclude the results of divestments, as if the transactions occurred in the beginning of the periods mentioned. Such non-GAAP financial measures may differ materially from the non-GAAP financial measures used by other companies. The financial statement tables that accompany this press release include a reconciliation of each non-GAAP financial measure to the most directly comparable GAAP financial measure and a more detailed discussion of each financial measure; as such, the financial statement tables should be read in conjunction with the presentation of these non-GAAP financial measures.

FORWARD-LOOKING STATEMENTS

This press release contains “forward-looking statements” within the Private Securities Litigation Reform Act of 1995. Any statements contained in this press release that are not statements of historical fact, including statements relating to our future results (including business trends); statements regarding the proposed Aya Merger; the expected timing and closing of the proposed Aya Merger; the Company’s ability to consummate the proposed Aya Merger; the expected benefits of the proposed Aya Merger and other considerations taken into account by the Board in approving the proposed Aya Merger; the amounts to be received by stockholders in connection with the proposed Aya Merger; and expectations for the Company prior to and following the closing of the proposed Aya Merger, may be deemed to be forward-looking statements. All such forward-looking statements are intended to provide management’s current expectations for the future of the Company based on current expectations and assumptions relating to the Company’s business, the economy and other future conditions. Forward-looking statements generally can be identified through the use of words such as “believes,” “anticipates,” “may,” “should,” “will,” “plans,” “projects,” “expects,” “expectations,” “estimates,” “forecasts,” “predicts,” “targets,” “prospects,” “strategy,” “signs,” and other words of similar meaning in connection with the discussion of future performance, plans, actions or events. Because forward-looking statements relate to the future, they are subject to inherent risks, uncertainties and changes in circumstances that are difficult to predict. Such risks and uncertainties include, among others: (i) the timing to consummate the proposed Aya Merger, (ii) the risk that a condition of closing of the proposed Aya Merger may not be satisfied or that the closing of the proposed Aya Merger might otherwise not occur, (iii) the risk that a regulatory approval that may be required for the proposed Aya Merger is not obtained or is obtained subject to conditions that are not anticipated, (iv) the diversion of management time on transaction-related issues, (v) risks related to disruption of management time from ongoing business operations due to the proposed Aya Merger, (vi) the risk that any announcements relating to the proposed Aya Merger could have adverse effects on the market price of the common stock of the Company, (vii) the risk that the proposed Aya Merger and its announcement could have an adverse effect on the ability of the Company to retain customers and retain and hire key personnel and maintain relationships with its suppliers and customers, (viii) the occurrence of any event, change or other circumstance or condition that could give rise to the termination of the Merger Agreement, including in circumstances requiring the Company to pay a termination fee, (ix) the risk that competing offers will be made, (x) unexpected costs, charges or expenses resulting from the Aya Merger, (xi) potential litigation relating to the Aya Merger that could be instituted against the parties to the Merger Agreement or their respective directors, managers or officers, including the effects of any outcomes related thereto, (xii) worldwide economic or political changes that affect the markets that the Company’s businesses serve which could have an effect on demand for the Company’s services and impact the Company’s profitability, (xiii) effects from global pandemics, epidemics or other public health crises, (xiv) changes in marketplace conditions, such as alternative modes of healthcare delivery, reimbursement and customer needs, and (xv) disruptions in the global credit and financial markets, including diminished liquidity and credit availability, changes in international trade agreements, including tariffs and trade restrictions, cyber-security vulnerabilities, foreign currency volatility, swings in consumer confidence and spending, costs of providing services, retention of key employees, and outcomes of legal proceedings, claims and investigations. Accordingly, actual results may differ materially from those contemplated by these forward-looking statements. Investors, therefore, are cautioned against relying on any of these forward-looking statements. They are neither statements of historical fact nor guarantees or assurances of future performance. Additional information regarding the factors that may cause actual results to differ materially from these forward-looking statements is available in the Company’s filings with the SEC, including the risks and uncertainties identified in Part I, Item 1A – Risk Factors of the Company’s Annual Report on Form 10-K for the year ended December 31, 2024, as amended by Amendment No. 1 on Form 10-K/A, and in the Company’s other filings with the SEC. The list of factors is not intended to be exhaustive.

These forward-looking statements speak only as of the date of this press release, and the Company does not assume any obligation to update or revise any forward-looking statement made in this press release or that may from time to time be made by or on behalf of the Company.

Cross Country Healthcare, Inc.
Consolidated Statements of Operations
(Unaudited, amounts in thousands, except per share data)
	Three Months Ended
	March 31,				March 31,				December 31,
		2025				2024				2024
Revenue from services	$	293,408			$	379,174			$	309,940
Operating expenses:
Direct operating expenses		234,750				301,877				247,948
Selling, general and administrative expenses		52,486				63,252				55,573
Credit loss expense (income)		35				1,290				(228	)
Depreciation and amortization		4,772				4,642				4,341
Acquisition and integration-related costs		2,041				—				4,216
Restructuring costs		301				938				281
Legal and other losses (gains)		—				3,650				(928	)
Impairment charges		—				604				2,170
Total operating expenses		294,385				376,253				313,373
(Loss) income from operations		(977	)			2,921				(3,433	)
Other expenses (income):
Interest expense		543				462				608
Interest income		(681	)			(173	)			(535	)
Other expense (income) , net		60				(1,057	)			408
(Loss) income before income taxes		(899	)			3,689				(3,914	)
Income tax (benefit) expense		(409	)			997				(161	)
Net (loss) income attributable to common stockholders	$	(490	)		$	2,692			$	(3,753	)
Net (loss) income per share attributable to common stockholders – Basic	$	(0.02	)		$	0.08			$	(0.12	)
Net (loss) income per share attributable to common stockholders – Diluted	$	(0.02	)		$	0.08			$	(0.12	)
Weighted average common shares outstanding:
Basic		32,282				34,216				32,338
Diluted		32,282				34,597				32,338

Cross Country Healthcare, Inc.
Reconciliation of Non-GAAP Financial Measures
(Unaudited, amounts in thousands, except per share data)
	Three Months Ended
	March 31,				March 31,				December 31,
		2025				2024				2024
Adjusted EBITDA:a
Net (loss) income attributable to common stockholders	$	(490	)		$	2,692			$	(3,753	)
Interest expense		543				462				608
Income tax (benefit) expense		(409	)			997				(161	)
Depreciation and amortization		4,772				4,642				4,341
Acquisition and integration-related costsb		2,041				—				4,216
Restructuring costsc		301				938				281
Legal, bankruptcy, and other losses (gains)d		—				3,650				(928	)
Impairment chargese		—				604				2,170
Loss on disposal of fixed assets		—				—				86
Interest incomef		(681	)			(173	)			(535	)
Other expense (income), net		60				(1,057	)			322
Equity compensation		1,318				1,198				1,698
System conversion costsg		1,164				1,329				926
Adjusted EBITDAa	$	8,619			$	15,282			$	9,271
Adjusted EBITDA margina		2.9	%			4.0	%			3.0	%
Adjusted EPS:h
Numerator:
Net (loss) income attributable to common stockholders	$	(490	)		$	2,692			$	(3,753	)
Non-GAAP adjustments – pretax:
Acquisition and integration-related costsb		2,041				—				4,216
Restructuring costsc		301				938				281
Legal, bankruptcy, and other losses (gains)d		—				3,650				(928	)
Impairment chargese		—				604				2,170
Other (income) expense, net		—				(1,115	)			311
System conversion costsg		1,164				1,329				926
Tax impact of non-GAAP adjustments		(919	)			(1,405	)			(1,843	)
Adjusted net income attributable to common stockholders – non-GAAP	$	2,097			$	6,693			$	1,380
Denominator:
Weighted average common shares – basic, GAAP		32,282				34,216				32,338
Dilutive impact of share-based payments		281				381				68
Adjusted weighted average common shares – diluted, non-GAAP		32,563				34,597				32,406
Reconciliation:
Diluted EPS, GAAP	$	(0.02	)		$	0.08			$	(0.12	)
Non-GAAP adjustments – pretax:
Acquisition and integration-related costsb		0.06				—				0.13
Restructuring costsc		0.01				0.02				0.01
Legal, bankruptcy, and other losses (gains)d		—				0.10				(0.03	)
Impairment chargese		—				0.02				0.07
Other (income) expense, net		—				(0.03	)			0.01
System conversion costsg		0.04				0.04				0.03
Tax impact of non-GAAP adjustments		(0.03	)			(0.04	)			(0.06	)
Adjusted EPS, non-GAAPh	$	0.06			$	0.19			$	0.04

Cross Country Healthcare, Inc.
Consolidated Balance Sheets
(Unaudited, amounts in thousands)
	March 31,					December 31,
		2025					2024
Assets
Current assets:
Cash and cash equivalents	$	80,697				$	81,633
Accounts receivable, net		219,789					223,238
Income taxes receivable		5,893					10,389
Prepaid expenses		8,295					7,848
Insurance recovery receivable		9,343					9,255
Other current assets		1,182					2,637
Total current assets		325,199					335,000
Property and equipment, net		28,117					28,850
Operating lease right-of-use assets		2,219					2,468
Goodwill		135,060					135,060
Other intangible assets, net		39,965					42,186
Deferred tax assets		8,804					8,104
Insurance recovery receivable		20,193					20,928
Cloud computing		11,358					10,846
Other assets		5,320					5,809
Total assets	$	576,235				$	589,251
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable and accrued expenses	$	56,325				$	64,946
Accrued compensation and benefits		50,056					47,646
Operating lease liabilities		1,687					2,089
Earnout liability		—					4,411
Other current liabilities		980					1,310
Total current liabilities		109,048					120,402
Operating lease liabilities		1,623					1,782
Accrued claims		33,982					34,425
Uncertain tax positions		10,168					10,117
Other liabilities		3,204					3,566
Total liabilities		158,025					170,292
Commitments and contingencies
Stockholders’ equity:
Common stock		3					3
Additional paid-in capital		202,074					202,338
Accumulated other comprehensive loss		(1,436	)				(1,441	)
Retained earnings		217,569					218,059
Total stockholders’ equity		418,210					418,959
Total liabilities and stockholders’ equity	$	576,235				$	589,251

Cross Country Healthcare, Inc.
Segment Datai
(Unaudited, amounts in thousands)
	Three Months Ended																	Year-over-Year			Sequential
	March 31,			% of			March 31,		% of			December 31,			% of			% change			% change
	2025			Total			2024		Total			2024			Total			Fav (Unfav)			Fav (Unfav)
Revenue from services:
Nurse and Allied Staffing	$	242,291		83	%		$	332,186	88	%		$	256,929		83	%		(27	)%		(6	)%
Physician Staffing		51,117		17	%			46,988	12	%			53,011		17	%		9	%		(4	)%
	$	293,408		100	%		$	379,174	100	%		$	309,940		100	%		(23	)%		(5	)%
Contribution income:j
Nurse and Allied Staffing	$	17,244					$	27,183				$	20,347					(37	)%		(15	)%
Physician Staffing		4,029						3,138					3,549					28	%		14	%
		21,273						30,321					23,896					(30	)%		(11	)%
Corporate overheadk		15,136						17,566					17,249					14	%		12	%
Depreciation and amortization		4,772						4,642					4,341					(3	)%		(10	)%
Restructuring costsc		301						938					281					68	%		(7	)%
Legal and other losses (gains)l		—						3,650					(928	)				100	%		(100	)%
Impairment chargese		—						604					2,170					100	%		100	%
Acquisition and integration-related costsb		2,041						—					4,216					(100	)%		52	%
(Loss) income from operations	$	(977	)				$	2,921				$	(3,433	)				(133	)%		72	%

Cross Country Healthcare, Inc.
Summary Condensed Consolidated Statements of Cash Flows
(Unaudited, amounts in thousands)
	Three Months Ended
	March 31,				March 31,				December 31,
		2025				2024				2024
Net cash provided by operating activities	$	5,681			$	6,011			$	24,234
Net cash used in investing activities		(1,886	)			(2,210	)			(2,531	)
Net cash used in financing activities		(4,725	)			(15,653	)			(4,077	)
Effect of exchange rate changes on cash		(6	)			—				(14	)
Change in cash and cash equivalents		(936	)			(11,852	)			17,612
Cash and cash equivalents at beginning of period		81,633				17,094				64,021
Cash and cash equivalents at end of period	$	80,697				5,242			$	81,633

Cross Country Healthcare, Inc.
Other Financial Data
(Unaudited)
	Three Months Ended
	March 31,				March 31,				December 31,
		2025				2024				2024
Revenue from services	$	293,408			$	379,174			$	309,940
Less: Direct operating expenses		234,750				301,877				247,948
Gross profit	$	58,658			$	77,297			$	61,992
Consolidated gross profit marginm		20.0	%			20.4	%			20.0	%
Nurse and Allied Staffing statistical data:
FTEsn		7,411				9,124				7,621
Average Nurse and Allied Staffing revenue per FTE per dayo	$	360			$	397			$	363
Physician Staffing statistical data:
Days filledp		22,692				23,785				25,427
Revenue per day filledq	$	2,253			$	1,976			$	2,085

(a)		Adjusted EBITDA, a non-GAAP financial measure, is defined as net income (loss) attributable to common stockholders before interest expense, income tax expense (benefit), depreciation and amortization, acquisition and integration-related (benefits) costs, restructuring (benefits) costs, legal and other losses, customer bankruptcy loss, impairment charges, gain or loss on derivative, loss on early extinguishment of debt, gain or loss on disposal of fixed assets, gain or loss on lease termination, gain or loss on sale of business, interest income, other expense (income), net, equity compensation, and system conversion costs. Adjusted EBITDA is not and should not be considered a measure of financial performance under GAAP. Management presents Adjusted EBITDA because it believes that Adjusted EBITDA is a useful supplement to net income (loss) attributable to common stockholders as an indicator of operating performance. Management uses Adjusted EBITDA for planning purposes and as one performance measure in its incentive programs for certain members of its management team. Adjusted EBITDA, as defined, closely matches the operating measure as defined by the Company’s credit facilities. Adjusted EBITDA Margin is calculated by dividing Adjusted EBITDA by the Company’s consolidated revenue.
(b)		Acquisition and integration costs relate primarily to fees associated with the pending Aya Merger.
(c)		Restructuring costs were primarily comprised of employee termination costs, lease-related exit costs, and reorganization costs as part of planned cost savings initiatives.
(d)		Includes legal costs and other settlement charges as presented on the consolidated statements of operations and losses pertaining to matters outside the normal course of operations. The Company incurred a settlement expense of $1.2 million, and recorded a $1.8 million recovery related to a previous loss, in the fourth quarter of 2024. During the first quarter of 2024, the Company recorded legal and other losses of $3.7 million representing an offer to settle a lawsuit, as well as estimated costs related to an unrecoverable asset.
(e)		Impairment charges for the three months ended March 31, 2024 and December 31, 2024 were related to right-of-use assets and related property in connection with vacated leases in those periods. Impairment charges for the three months ended December 31, 2024 also included the write-off of goodwill and intangible assets associated with the impairment of a previous asset acquisition.
(f)		Interest income for the three months ended March 31, 2025 and December 31, 2024 related to higher average cash on hand with higher available interest rates.
(g)		System conversion costs include enterprise resource planning system costs related to the upgrading and integrating of our middle and back-office platforms, with certain development costs capitalized and amortized in accordance with the Company’s policies.
(h)		Adjusted EPS, a non-GAAP financial measure, is defined as net income (loss) attributable to common stockholders per diluted share before the diluted EPS impact of acquisition and integration-related (benefits) costs, restructuring (benefits) costs, legal and other losses, customer bankruptcy loss, impairment charges, gain or loss on derivative, loss on early extinguishment of debt, gain or loss on sale of business, system conversion costs, and nonrecurring income tax adjustments. Adjusted EPS is not and should not be considered a measure of financial performance under GAAP. Management presents Adjusted EPS because it believes that Adjusted EPS is a useful supplement to its reported EPS as an indicator of operating performance. Management believes Adjusted EPS provides a more useful comparison of the Company’s underlying business performance from period to period and is more representative of the future earnings capacity of the Company than EPS. Quarterly non-GAAP adjustment may vary due to rounding.
(i)		Segment data is provided in accordance with the Segment Reporting Topic of the Financial Accounting Standards Board Accounting Standards Codification.
(j)		Contribution income is defined as income (loss) from operations before depreciation and amortization, acquisition and integration-related (benefits) costs, restructuring (benefits) costs, legal and other losses, impairment charges, and corporate overhead. Contribution income is a financial measure used by management when assessing segment performance.
(k)		Corporate overhead includes unallocated executive leadership and other centralized corporate functional support costs such as finance, IT, legal, human resources, and marketing, as well as public company expenses and Company-wide projects (initiatives).
(l)		Legal and other losses (gains) include legal costs and other settlement charges as presented on the consolidated statements of operations and losses pertaining to matters outside the normal course of operations.
(m)		Gross profit is defined as revenue from services less direct operating expenses. The Company’s gross profit excludes allocated depreciation and amortization expense. Gross profit margin is calculated by dividing gross profit by revenue from services.
(n)		FTEs represent the average number of Nurse and Allied Staffing contract personnel on a full-time equivalent basis.
(o)		Average revenue per FTE per day is calculated by dividing Nurse and Allied Staffing revenue, excluding permanent placement, per FTE by the number of days worked in the respective periods.
(p)		Days filled is calculated by dividing the total hours invoiced during the period, including an estimate for the impact of accrued revenue, by 8 hours.
(q)		Revenue per day filled is calculated by dividing revenue as reported by days filled for the period presented.

 

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Cross Country Healthcare, Inc.

William J. Burns, Executive Vice President & Chief Financial Officer

561-237-2555

[email protected]

KEYWORDS: United States North America Florida

INDUSTRY KEYWORDS: General Health Health Professional Services Managed Care Human Resources

MEDIA:

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