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National Research Corp

NRC Health Announces Second Quarter 2025 Results

Reports third consecutive quarter of sequential TRCV Growth

LINCOLN, Neb.--(BUSINESS WIRE)--Jul. 28, 2025-- National Research Corporation, dba NRC Health, (NASDAQ:NRC) today announced results for the second quarter 2025.

CEO Statement

Trent S. Green, Chief Executive Officer of NRC Health, commented: “We’re encouraged by our second-quarter results, which demonstrate continued momentum across key areas of our business. In my early weeks as CEO, I’ve been energized by feedback from both current and prospective customers, particularly their enthusiasm for our product portfolio and appreciation for the service mindset of our associates. To provide additional context on the quarter, we’re reinstating our quarterly earnings call, which I hope investors will join tomorrow, July 29, at 10 a.m. ET.”

Additional Information

Total recurring contract value1, or TRCV, grew 2% sequentially, the third consecutive quarter of TRCV growth and the highest sequential growth rate since the first quarter of 2021. New logo sales, cross-sells, and customer retention have improved over the last several quarters, attributable to a stronger sales team, a product portfolio that resonates in the marketplace, and the strength of our customer service organization.

With the transition from founder-led leadership, compensation arrangements for executive leaders were implemented to preserve philosophical and economic alignment with long-term shareholders. These arrangements, primarily non-recurring cash bonuses and equity grants, resulted in a net margin of 0% for the second quarter. Excluding these items, adjusted EBITDA margin2 was 30% in the quarter and has remained relatively stable over the past year due to cost control initiatives and higher revenue per FTE.

Dividends and Stock Repurchases

The Company’s Board of Directors on July 23, 2025, declared a quarterly cash dividend of $0.12 (twelve cents) per share payable Friday, October 10, 2025, to shareholders of record as of the close of business on Friday, September 26, 2025.

During the second quarter, NRC repurchased 381,736 shares at a weighted average price of $14.96 per share. During 2025, the company has returned a total of $16.1 million to shareholders through dividends and stock repurchases.

1 Total recurring contract value (TRCV) is a measure of projected revenue under all renewable contracts for the next 12-month period.

2 Adjusted EBITDA is a non-GAAP financial measure. A reconciliation of adjusted EBITDA to net income and disclosure regarding why we believe adjusted EBITDA provides useful information to investors is included later in this release.

Earnings Call Information

The company will be hosting an earnings call to provide additional detail on the quarter on July 29, 2025, 10 a.m. ET, available at nrchealth.com/investor-relations.

About NRC Health

For more than 40 years, NRC Health (NASDAQ: NRC) has led the charge to humanize healthcare and support organizations in their understanding of each unique individual. NRC Health’s commitment to Human Understanding® helps leading healthcare systems get to know each person they serve not as point-in-time insights, but as an ongoing relationship. Guided by its uniquely empathic heritage, NRC Health’s patient-focused approach, unmatched market research, and emphasis on consumer preferences are transforming the healthcare experience, creating strong outcomes for patients and entire healthcare systems. For more information, email info@nrchealth.com, or visit www.nrchealth.com.

Non-GAAP Performance Measures

The company prepares its financial statements and presents its financial results in accordance with U.S. GAAP. However, it also provides additional non-GAAP financial information related to specific items management believes to be important in the evaluation of its operating results and performance. Reconciliations of GAAP to non-GAAP financial information, and a discussion of why the company believes providing this additional information is useful to investors, is provided in the "Non-GAAP Disclosures" section below.

Forward-Looking Statements

This press release contains certain statements that may be considered forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and such statements are subject to the safe harbor created by those sections and the Private Securities Litigation Reform Act of 1995, as amended. Such statements may be identified by their use of terms or phrases such as “believes,” “expect,” “focus,” “potential,” “will,” derivations thereof, and similar terms and phrases. In this press release, the statements related to future dividends, share repurchases, and revenue are forward-looking statements. Forward-looking statements are based upon the current beliefs and expectations of our management and are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified, which could cause future events and actual results to differ materially from those set forth in, contemplated by, or underlying the forward-looking statements, including those risks and uncertainties as set forth in the Risk Factors section of our Annual Report on Form 10-K for the year ended December 31, 2024, and various disclosures in our press releases, stockholder reports, and other filings with the Securities and Exchange Commission. We disclaim any obligation to update or revise any forward-looking statements to reflect actual results or changes in the factors affecting the forward-looking information.

NATIONAL RESEARCH CORPORATION AND SUBSIDIARY

Unaudited Condensed Consolidated Statements of Income

(In thousands, except per share data)

 

 

 

Three months ended
June 30

 

 

Six months ended
June 30

 

 

 

2025

 

 

2024

 

 

2025

 

 

2024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

34,038

 

 

$

35,021

 

 

$

67,588

 

 

$

70,334

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Direct

 

 

12,974

 

 

 

13,422

 

 

 

26,031

 

 

 

27,278

 

Selling, general and administrative

 

 

17,734

 

 

 

11,221

 

 

 

28,089

 

 

 

22,471

 

Depreciation and amortization

 

 

1,742

 

 

 

1,513

 

 

 

3,284

 

 

 

2,960

 

Total operating expenses

 

 

32,450

 

 

 

26,156

 

 

 

57,404

 

 

 

52,709

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

 

1,588

 

 

 

8,865

 

 

 

10,184

 

 

 

17,625

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income (expense):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

 

21

 

 

 

25

 

 

 

41

 

 

 

69

 

Interest expense

 

 

(1,032

)

 

 

(555

)

 

 

(1,932

)

 

 

(1,160

)

Other, net

 

 

4

 

 

 

(11

)

 

 

11

 

 

 

(16

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total other expense

 

 

(1,007

)

 

 

(541

)

 

 

(1,880

)

 

 

(1,107

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

 

581

 

 

 

8,324

 

 

 

8,304

 

 

 

16,518

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Provision for income taxes

 

 

687

 

 

 

2,149

 

 

 

2,623

 

 

 

3,984

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

(106

)

 

$

6,175

 

 

$

5,681

 

 

$

12,534

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings (loss) Per Share of Common Stock:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic Earnings (loss) Per Share

 

$

(0.01

)

 

$

0.26

 

 

$

0.25

 

 

$

0.53

 

Diluted Earnings (loss) Per Share

 

$

(0.01

)

 

$

0.26

 

 

$

0.25

 

 

$

0.52

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares and share equivalents outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

22,658

 

 

 

23,871

 

 

 

22,814

 

 

 

23,870

 

Diluted

 

 

22,658

 

 

 

23,915

 

 

 

22,820

 

 

 

23,934

 

NATIONAL RESEARCH CORPORATION AND SUBSIDIARY

Unaudited Condensed Consolidated Balance Sheets

(Dollars in thousands, except share amounts and par value)

 

 

 

June 30,

2025

 

 

December 31,

2024

 

Assets

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

5,274

 

 

$

4,233

 

Accounts receivable, net

 

 

12,416

 

 

 

11,054

 

Other current assets

 

 

7,630

 

 

 

4,313

 

Total current assets

 

 

25,320

 

 

 

19,600

 

 

 

 

 

 

 

 

 

 

Property and equipment, net

 

 

42,232

 

 

 

38,269

 

Goodwill

 

 

66,152

 

 

 

66,152

 

Other, net

 

 

7,683

 

 

 

8,518

 

Total assets

 

$

141,387

 

 

$

132,539

 

 

 

 

 

 

 

 

 

 

Liabilities and Shareholders’ Equity

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Current portion of notes payable, net of unamortized debt issuance costs

 

$

3,928

 

 

$

4,789

 

Accounts payable and accrued expenses

 

 

6,794

 

 

 

6,285

 

Accrued compensation

 

 

5,685

 

 

 

4,774

 

Deferred revenue

 

 

15,603

 

 

 

15,786

 

Dividends payable

 

 

2,776

 

 

 

2,770

 

Other current liabilities

 

 

1,140

 

 

 

1,454

 

Total current liabilities

 

 

35,926

 

 

 

35,858

 

 

 

 

 

 

 

 

 

 

Notes payable, net of current portion and unamortized debt issuance costs

 

 

77,029

 

 

 

57,895

 

Other non-current liabilities

 

 

7,104

 

 

 

7,502

 

Total liabilities

 

 

120,059

 

 

 

101,255

 

 

 

 

 

 

 

 

 

 

Shareholders’ equity:

 

 

 

 

 

 

 

 

Preferred stock, $0.01 par value, authorized 2,000,000 shares, none issued

 

 

--

 

 

 

--

 

Common stock, $0.001 par value; authorized 110,000,000 shares, issued 31,782,158 in 2025 and 31,072,144 in 2024, outstanding 23,103,685 in 2025 and 23,083,116 in 2024

 

 

32

 

 

 

31

 

Additional paid-in capital

 

 

180,858

 

 

 

180,249

 

Retained earnings (accumulated deficit)

 

 

(16,894

)

 

 

(17,064

)

Treasury stock

 

 

(142,668

)

 

 

(131,932

)

Total shareholders’ equity

 

$

21,328

 

 

$

31,284

 

Total liabilities and shareholders’ equity

 

$

141,387

 

 

$

132,539

 

Non- GAAP Measures of Financial Performance

In addition to consolidated GAAP financial measures, NRC Health reviews various non-GAAP financial measures, including “Adjusted EBITDA,” “Adjusted Net Income,” and “Adjusted Earnings per Share.” NRC Health believes Adjusted EBITDA, Adjusted Net Income and Adjusted Earnings per Share are helpful supplemental measures to assist management and investors in evaluating the Company’s operating results as (i) they exclude certain items that are unusual in nature or whose fluctuation from period to period do not necessarily correspond to changes in the operations of NRC Health’s business, and (ii) the exclusion of non-cash stock compensation is useful for investors applying certain valuation metrics and is consistent with the leverage ratio for our credit facility. Adjusted EBITDA represents net income before interest, taxes, depreciation, amortization and certain non-recurring executive compensation and non-cash stock compensation items. Adjusted Net Income represents net income adjusted to add back certain non-recurring executive compensation and non-cash stock compensation and the related tax. There is no comprehensive, authoritative guidance for the presentation of such non-GAAP information, which is only meant to supplement GAAP results by providing additional information that management utilizes to assess performance.

Reconciliation of GAAP Net Income (Loss) to Adjusted Net Income

(In thousands, except per share data, unaudited)

 

 

 

Three months ended
June 30

 

 

Six months ended
June 30

 

 

 

2025

 

 

2024

 

 

2025

 

 

2024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

(106

)

 

$

6,175

 

 

$

5,681

 

 

$

12,534

 

Add back:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-recurring executive compensation

 

 

6,640

 

 

 

-

 

 

 

6,640

 

 

 

-

 

Tax on non-recurring executive compensation

 

 

(468

)

 

 

-

 

 

 

(468

)

 

 

-

 

Non-cash stock compensation

 

 

307

 

 

 

(57

)

 

 

478

 

 

 

(92

)

Tax on stock compensation

 

 

-

 

 

 

14

 

 

 

-

 

 

 

23

 

Adjusted Net Income

 

$

6,373

 

 

$

6,132

 

 

$

12,331

 

 

$

12,465

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings (loss) Per Share of Common Stock:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic Earnings (loss) Per Share

 

$

(0.01)

 

 

$

0.26

 

 

$

0.25

 

 

$

0.52

 

Diluted Earnings (loss) Per Share

 

$

(0.01)

 

 

$

0.26

 

 

$

0.25

 

 

$

0.52

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted Earnings (loss) Per Share of Common Stock:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted Basic Earnings (loss) Per Share

 

$

0.28

 

 

$

0.26

 

 

$

0.54

 

 

$

0.52

 

Adjusted Diluted Earnings (loss) Per Share

 

$

0.28

 

 

$

0.26

 

 

$

0.54

 

 

$

0.52

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares and share equivalents outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

22,658

 

 

 

23,871

 

 

 

22,814

 

 

 

23,870

 

Diluted

 

 

22,658

 

 

 

23,915

 

 

 

22,820

 

 

 

23,934

 

Reconciliation of GAAP Net Income (Loss) to Adjusted EBITDA

Unaudited

(In thousands, except per share data)

 

 

 

Three months ended

 

 

June 30,
2025

 

 

March 31,
2025

 

 

December 31,
2024

 

 

September 30,
2024

 

 

June 30,
2024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

34,038

 

 

$

33,551

 

 

$

36,907

 

 

$

35,819

 

 

$

35,021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

(106

)

 

$

5,787

 

 

$

6,561

 

 

$

5,688

 

 

$

6,175

 

Add back

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

1,032

 

 

 

899

 

 

 

729

 

 

 

706

 

 

 

555

 

Income taxes

 

 

687

 

 

 

1,936

 

 

 

2,315

 

 

 

1,608

 

 

 

2,149

 

Depreciation and amortization

 

 

1,742

 

 

 

1,542

 

 

 

1,516

 

 

 

1,546

 

 

 

1,513

 

Non-recurring executive compensation

 

 

6,640

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Non-cash stock compensation

 

 

307

 

 

 

171

 

 

 

188

 

 

 

189

 

 

 

(57

)

Adjusted EBITDA

 

$

10,302

 

 

$

10,335

 

 

$

11,309

 

 

$

9,737

 

 

$

10,335

 

Adjusted EBITDA Margin

 

 

30.3%

 

 

 

30.8%

 

 

 

30.6%

 

 

 

27.2%

 

 

 

29.5%

 

 

NRC Health Investor Relations Contact
ir@nrchealth.com

Source: NRC Health