AMN Healthcare "1Q Wrap: Estimate Revisions and PT Update" (Neutral) Rice

Research evidence excerpt

AMN Healthcare "1Q Wrap: Estimate Revisions and PT Update" (Neutral) Rice

(UBS, diluted) (USD)

$45 mln range, in line with consensus estimates for 2Q26 - 4Q26 heading into the 1Q

12/26E

print. Our 2027 adj. EBITDA estimate of $193 mln (unchanged) assumes that the current

From To % ch Cons.

demand environment remains stable and that AMN is able to return to delivering core

Q1 1.59 2.10 32 2.10

organic growth over the coming quarters.

Q2E 0.07 0.19 172 0.10

Q3E 0.09 0.11 21 0.14

Improved Leverage Adds Valuable Flexibility Q4E 0.23 0.15 -32 0.20

AMN reported a 1.6x leverage ratio (net debt to trailing-twelve-months EBITDA) at the 12/26E 1.96 2.54 29 2.31

close of 1Q26. This calculation is impacted by 3 unusual items: ~$367 mln of cash on its 12/27E 0.87 1.03 19 1.07

balance sheet related to client deposits for strike events that will be refunded in 2Q, a 12/28E 1.07 1.33 25 1.15

$250 mln cap on total cash that can be included in net debt calculations under its credit

AJ Rice

agreement, and ~$130 mln of estimated non-recurring EBITDA from strike staffing over Analyst

the prior 12 months. After adjusting for these factors, we estimate a core leverage ratio aj.rice@ubs.com

of 2.4x for AMN. This is down from a ~3.0x average leverage ratio in 2025, driven by +1-212-713 4299

free cash flow generated in the core business as well as earnings from strike services in

Joseph Overman

4Q25 and 1Q26. This improvement should eliminate concerns about near term debt Associate Analyst

covenants (max leverage is 5.25x near term and 4.75x 2-years out) and provides joseph.overman@ubs.com

flexibility for AMN to evaluate the full range of capital deployment opportunities (share +1-212-882 0086

repurchases, debt paydown, opportunistic M&A, organic business investments).

James Kurek

Analyst