SEGMENT DATA

9 Months Ended

Sep. 30, 2025

Segment Reporting [Abstract]

SEGMENT DATA

SEGMENT DATA

The Company has two operating and reportable segments, Nurse and Allied Staffing and Physician Staffing, which align with its management structure and reflect how the operating results are regularly reviewed by the Chief Executive Officer, who the Company has determined to be its Chief Operating Decision Maker (CODM). The Company’s segments offer services to its customers as described below:

●    Nurse and Allied Staffing – Nurse and Allied Staffing provides traditional staffing, recruiting, and value-added total talent solutions including: temporary and permanent placement of travel nurse and allied professionals, per diem, and healthcare leaders within nursing, allied, human resources, and finance, managed service programs services, education healthcare services, in-home care services, and outsourcing services. In addition, Nurse and Allied Staffing provides executive search services for healthcare professionals, as well as contingent search and recruitment process outsourcing services, and offers the Company’s SaaS-based, proprietary, vendor management technology, Intellify® to facilities in order to manage all or a portion of their agency services. Its customers include: public and private acute care hospitals, non-acute care hospitals, government facilities, local healthcare plans, national healthcare plans, managed care providers, public schools, charter schools, academic medical centers, Programs of All-Inclusive Care for the Elderly (PACE) programs, outpatient clinics, ambulatory care facilities, physician practice groups, and many other healthcare providers throughout the United States.

●    Physician Staffing – Physician Staffing provides physicians in many specialties, as well as certified registered nurse anesthetists, nurse practitioners, and physician assistants as independent contractors on temporary assignments throughout the United States at various healthcare facilities, such as acute and non-acute care facilities, medical group practices, government facilities, and managed care organizations.

Revenue, and the profit and loss measure of contribution income, are reported to the CODM by each of the operating segments to assess performance. Contribution income is the profit and loss measure used by the CODM to allocate operating and capital resources to each segment. The Company defines contribution income 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. Management believes that its measure of contribution income is most consistent with that used to measure the corresponding amounts on its condensed consolidated financial statements.

The information in the following tables is derived from the segments’ internal financial information as used for corporate management purposes. Certain corporate expenses are not allocated to and/or among the operating segments. Those include corporate overhead and the remaining line items below contribution income in the consolidated column in the tables below, and are presented to the CODM on a consolidated basis only.

Information on reportable segments and a reconciliation to loss before income taxes for the period indicated are as follows:

	Three Months Ended September 30, 2025
	Nurse and Allied Staffing		Physician Staffing		Consolidated
	(amounts in thousands)
Revenue from services	$	201,950	$	48,102	$	250,052
Direct operating expenses	160,715		38,410
Employee compensation	19,209		4,634
Benefits	1,961		394
Marketing	1,411		173
Credit loss credit	(792)		(69)
Divisional corporate G&A	3,502		75
Other segment items(a)	1,714		165
Contribution Income	$	14,230	$	4,320	$	18,550
Reconciliation of profit or loss:
Corporate overhead(b)					13,656
Depreciation and amortization					4,088
Acquisition and integration-related costs					4,147
Restructuring costs					1,530
Legal and other losses					1,102
Interest expense					556
Interest income					(864)
Other income, net					(28)
Loss before income taxes					$	(5,637)

_______________

(a) For each reportable segment, the other segment items category includes the following expenses: rent, insurance, maintenance, utilities, professional services, office, software and hardware, taxes, and miscellaneous employee expenses.

(b) Corporate overhead includes unallocated executive leadership and other centralized corporate functional support costs such as finance, IT, legal, and human resources, as well as public company expenses and corporate-wide projects (initiatives).

Information on reportable segments and a reconciliation to income before income taxes for the period indicated are as follows:

	Three Months Ended September 30, 2024
	Nurse and Allied Staffing		Physician Staffing		Consolidated
	(amounts in thousands)
Revenue from services	$	264,853	$	50,266	$	315,119
Direct operating expenses	211,187		39,774
Employee compensation	23,403		4,931
Benefits	1,995		668
Marketing	1,829		157
Credit loss expense (credit)	1,682		(170)
Divisional corporate G&A	3,747		90
Other segment items(a)	1,759		187
Contribution Income	$	19,251	$	4,629	$	23,880
Reconciliation of profit or loss:
Corporate overhead(b)					15,531
Depreciation and amortization					4,498
Restructuring costs					998
Interest expense					550
Interest income					(1,107)
Other expense, net					21
Income before income taxes					$	3,389

_______________

(a) For each reportable segment, the other segment items category includes the following expenses: rent, insurance, maintenance, utilities, professional services, office, software and hardware, taxes, and miscellaneous employee expenses.

(b) Corporate overhead includes unallocated executive leadership and other centralized corporate functional support costs such as finance, IT, legal, and human resources, as well as public company expenses and corporate-wide projects (initiatives).

Information on reportable segments and a reconciliation to loss before income taxes for the period indicated are as follows:

	Nine Months Ended September 30, 2025
	Nurse and Allied Staffing		Physician Staffing		Consolidated
	(amounts in thousands)
Revenue from services	$	668,546	$	148,986	$	817,532
Direct operating expenses	533,487		118,456
Employee compensation	62,030		14,869
Benefits	7,243		1,427
Marketing	4,984		579
Credit loss credit	(710)		(86)
Divisional corporate G&A	11,045		236
Other segment items(a)	5,106		579
Contribution Income	$	45,361	$	12,926	$	58,287
Reconciliation of profit or loss:
Corporate overhead(b)					41,332
Depreciation and amortization					12,961
Acquisition and integration-related costs					12,183
Restructuring costs					2,419
Legal and other losses					2,201
Interest expense					1,648
Interest income					(2,247)
Other expense, net					55
Loss before income taxes					$	(12,265)

_______________

(a) For each reportable segment, the other segment items category includes the following expenses: rent, insurance, maintenance, utilities, professional services, office, software and hardware, taxes, and miscellaneous employee expenses.

(b) Corporate overhead includes unallocated executive leadership and other centralized corporate functional support costs such as finance, IT, legal, and human resources, as well as public company expenses and corporate-wide projects (initiatives).

Information on reportable segments and a reconciliation to loss before income taxes for the period indicated are as follows:

	Nine Months Ended September 30, 2024
	Nurse and Allied Staffing		Physician Staffing		Consolidated
	(amounts in thousands)
Revenue from services	$	888,490	$	145,574	$	1,034,064
Direct operating expenses	706,595		115,209
Employee compensation	77,273		15,384
Benefits	6,777		1,854
Marketing	6,124		562
Credit loss expense (credit)	21,757		(97)
Divisional corporate G&A	12,227		288
Other segment items(a)	5,483		574
Contribution Income	$	52,254	$	11,800	$	64,054
Reconciliation of profit or loss:
Corporate overhead(b)					51,258
Depreciation and amortization					13,859
Acquisition and integration-related costs					3
Restructuring costs					4,052
Legal and other losses					7,596
Impairment charges					718
Interest expense					1,580
Interest income					(1,515)
Other income, net					(1,013)
Loss before income taxes					$	(12,484)

_______________

(a) For each reportable segment, the other segment items category includes the following expenses: rent, insurance, maintenance, utilities, professional services, office, software and hardware, taxes, and miscellaneous employee expenses.

(b) Corporate overhead includes unallocated executive leadership and other centralized corporate functional support costs such as finance, IT, legal, and human resources, as well as public company expenses and corporate-wide projects (initiatives).

Revenue is based on services provided. During the three and nine months ended September 30, 2025 and 2024, all revenue was generated in the U.S., and all of the Company’s long-lived assets were located in the U.S. and India. The Company provides its staffing services and workforce solutions in all 50 states. The India location is a cost center with no revenues and an immaterial amount of long-lived assets. The Company had no intersegment revenues between reportable segments for the three and nine months ended September 30, 2025 and 2024.

The Company does not evaluate, manage, or measure performance of segments using asset information; accordingly, total asset information by segment is not prepared or disclosed.

The accounting policies of the segments are the same as those described in Note 2 – Summary of Significant Accounting Policies, which also provides information about major customers.

See the tables in Note 3 - Revenue Recognition, which present segment revenues by services.