Cross Country Healthcare Faces Dual Setback from Earnings Miss and Merger Delay

Shares of Cross Country Healthcare came under pressure following a disappointing quarterly earnings report and regulatory delays surrounding its proposed acquisition by Aya Healthcare. The stock closed marginally lower, declining 0.2% in the latest trading session.

Acquisition Timeline Extended Amid Regulatory Scrutiny

The previously announced acquisition of Cross Country Healthcare by Aya Healthcare, valued at $615 million, has encountered regulatory obstacles. Initially disclosed in December 2024, the transaction now faces an extended review period after the U.S. Federal Trade Commission (FTC) requested additional information and initiated a more comprehensive antitrust examination.

Key details of the proposed merger include:
* Acquisition offer of $18.61 per share
* Premium of 67% to Cross Country’s share price as of December 3, 2024
* Expected completion pushed back to the second half of 2025

Second Quarter Performance Falls Short of Expectations

The company’s operational challenges became evident with its second quarter 2025 financial results, released on August 6. Cross Country Healthcare reported a net loss of $0.20 per share, starkly contrasting with analyst projections of a $0.07 profit. Even after adjustments, the company posted a loss of $0.01 per share, significantly below market expectations.

Should investors sell immediately? Or is it worth buying Cross Country Healthcare?

Revenue performance further compounded concerns:
* Quarterly revenue of $274.1 million, representing a 19% year-over-year decline
* Approximately $20 million shortfall against analyst revenue forecasts
* Adjusted EBITDA dropped to $7.6 million, yielding a 2.8% margin

Investor Outlook Remains Uncertain

The convergence of weaker-than-expected financial results and heightened regulatory uncertainty regarding the merger has created substantial headwinds for the healthcare staffing company’s stock. Market participants now face prolonged uncertainty as they await regulatory clearance from the FTC, with a decision not anticipated until late 2025.

Whether the proposed merger with Aya Healthcare will ultimately stabilize Cross Country’s valuation remains entirely dependent on regulatory approval. Until the FTC reaches its determination, investors must navigate increasingly volatile market conditions with limited visibility into the company’s future trajectory.