AMN HEALTHCARE SERVICES INCAMN
AMN HEALTHCARE SERVICES INC Goodwill & Intangibles Disclosure
Goodwill and Identifiable Intangible Assets
Impairment of Intangible Assets
During the second quarter of 2025, the Company determined that recent declines in forecasted revenue and earnings of the revenue cycle solutions business (within the nurse and allied solutions segment) indicated that the carrying amounts of its customer relationships intangible assets may not be recoverable. Accordingly, the Company tested the recoverability of the asset group based on undiscounted estimated future cash flows and concluded that its carrying amount was not recoverable. The Company engaged a third-party valuation specialist to assist with determining the fair value of the asset group, which was estimated using the discounted cash flow method (within the income approach), and concluded that the asset group’s carrying amount exceeded its fair value. As a result, the Company recognized an impairment loss on the customer relationships intangible assets of $18,262, which is included within in the consolidated statements of comprehensive income (loss). See Note (4), “Fair Value Measurement,” for additional information regarding the measurement of the asset group’s fair value.
As of December 31, 2025 and 2024, the Company had the following acquired intangible assets:
| As of December 31, 2025 | As of December 31, 2024 | ||||||||||||||||||||||||||||||||||
| Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | ||||||||||||||||||||||||||||||
| Intangible assets subject to amortization: | |||||||||||||||||||||||||||||||||||
| Staffing databases | $ | 52,336 | $ | (43,475) | $ | 8,861 | $ | 52,336 | $ | (39,879) | $ | 12,457 | |||||||||||||||||||||||
| Customer relationships | 467,286 | (241,224) | 226,061 | 532,048 | (247,550) | 284,498 | |||||||||||||||||||||||||||||
| Tradenames and trademarks | 281,500 | (234,873) | 46,627 | 284,488 | (204,159) | 80,329 | |||||||||||||||||||||||||||||
| Non-compete agreements | 9,309 | (8,613) | 696 | 9,399 | (7,783) | 1,616 | |||||||||||||||||||||||||||||
| Acquired technology | 34,686 | (33,405) | 1,281 | 37,915 | (35,451) | 2,464 | |||||||||||||||||||||||||||||
| $ | 845,117 | $ | (561,590) | $ | 283,526 | $ | 916,186 | $ | (534,822) | $ | 381,364 | ||||||||||||||||||||||||
Aggregate amortization expense for intangible assets was $78,027 and $92,770 for the years ended December 31, 2025 and 2024, respectively. Based on the net carrying amount of intangible assets subject to amortization, the estimated future amortization expense as of December 31, 2025 is as follows:
| Amount | |||||
| Year ending December 31, 2026 | $ | 66,642 | |||
| Year ending December 31, 2027 | 52,181 | ||||
| Year ending December 31, 2028 | 34,729 | ||||
| Year ending December 31, 2029 | 26,229 | ||||
| Year ending December 31, 2030 | 20,369 | ||||
| Thereafter | 83,376 | ||||
| $ | 283,526 | ||||
Impairment of Goodwill
Due to recent declines in forecasted revenue and earnings of the physician and leadership solutions reporting unit, the Company performed a quantitative goodwill impairment test for the reporting unit in the second quarter of 2025. The Company engaged a third-party valuation specialist to assist with determining the fair value of the reporting unit, which was estimated using an equal weighting of the income and market approaches. The discounted cash flow method (within the income approach) requires the use of Level 3 inputs, including (i) estimated future cash flows based on internally-developed forecasts of revenue, expenses and profit margins, (ii) estimated long-term growth rates, and (iii) determination of the Company’s weighted-average cost of capital that reflects the relative risk of the cash flows for each reporting unit. The guideline public company method (within the market approach) derives valuation multiples based on the market capitalization of similar publicly traded companies to apply to the forecasted financial metrics of the reporting unit. The market multiples used are revenue and earnings before interest, taxes, depreciation, and amortization (EBITDA). In addition, as fair value determined under the guideline public company method represents a noncontrolling interest, a control premium was applied to arrive at the estimated fair value of the reporting unit on a controlling basis.
The quantitative test resulted in a goodwill impairment loss for the physician and leadership solutions reporting unit. Consideration was first given to long-lived assets within the reporting unit, and no impairment was recognized on such assets as the future undiscounted cash flows were in excess of the carrying amount of each asset group tested for impairment. The decline in the fair value of the physician and leadership solutions reporting unit below its carrying amount resulted from changes in estimated future cash flows primarily due to lower-than-expected volume for the locum tenens staffing business, continued gross margin pressures in the locum tenens staffing business driven by higher provider pay packages, and a continued decline in demand for the healthcare interim leadership and permanent placement solutions. As a result, an impairment loss of $91,221 was recorded to goodwill of the physician and leadership solutions reporting unit during the second quarter of 2025.
Recognition of the non-cash goodwill impairment loss resulted in income tax benefits that reduced the deferred tax liability associated with goodwill by $18,294, which increased the carrying amount of the physician and leadership solutions reporting unit. An incremental impairment loss of the same amount was recognized to reduce the reporting unit’s carrying amount to its previously determined fair value. After recognition of the incremental charge, the goodwill impairment loss amounted to $109,515 in total.
The Company performed its annual goodwill impairment test as of October 31, 2025, using a quantitative assessment for each of its three reporting units. The Company engaged a third-party valuation specialist to assist in estimating the fair value of each reporting unit, which was determined using an equal weighting of the income and market approaches. The quantitative assessment concluded that no goodwill impairment existed for the three reporting units as the estimated fair values of the reporting units exceeded their respective carrying amounts. In addition, the Company evaluated its long-lived assets for impairment and determined that no impairment was required, as the future undiscounted cash flows were in excess of the carrying amounts of the related asset groups tested for impairment.
Following the annual goodwill impairment test as of October 31, 2025, the Company did not identify any events or circumstances during the final two months of the year ended December 31, 2025 that indicated it may be more likely than not that the fair value of its reporting units were reduced below their respective carrying amounts.
The following table summarizes the activity related to the carrying value of goodwill by reportable segment:
| Nurse and Allied Solutions | Physician and Leadership Solutions | Technology and Workforce Solutions | Total | ||||||||||||||||||||
| Balance, January 1, 2024 | $ | 382,420 | $ | 328,570 | $ | 400,559 | $ | 1,111,549 | |||||||||||||||
Goodwill impairment losses | (123,283) | (99,174) | — | (222,457) | |||||||||||||||||||
Goodwill adjustment for MSDR acquisition | — | 8,364 | — | 8,364 | |||||||||||||||||||
| Balance, December 31, 2024 | 259,137 | 237,760 | 400,559 | 897,456 | |||||||||||||||||||
Goodwill impairment loss | — | (109,515) | — | (109,515) | |||||||||||||||||||
Goodwill included in sale of disposal group | — | — | (32,132) | (32,132) | |||||||||||||||||||
| Balance, December 31, 2025 | $ | 259,137 | $ | 128,245 | $ | 368,427 | $ | 755,809 | |||||||||||||||
| Accumulated impairment loss as of December 31, 2024 | $ | 277,727 | $ | 159,669 | $ | — | $ | 437,396 | |||||||||||||||
| Accumulated impairment loss as of December 31, 2025 | $ | 277,727 | $ | 269,184 | $ | — | $ | 546,911 | |||||||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 20, 2026 | Showing above |
| 2024 | Feb 21, 2025 | |
| 2023 | Feb 22, 2024 | |
| 2022 | Feb 22, 2023 | |
| 2021 | Feb 24, 2022 | |
| 2020 | Feb 26, 2021 | |
| 2019 | Feb 25, 2020 | |
| 2018 | Feb 21, 2019 | |
| 2017 | Feb 16, 2018 | |
| 2016 | Feb 17, 2017 | |
| 2015 | Feb 24, 2016 | |
About Goodwill & Intangibles Disclosures
Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.
Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.