EX-99.1 2 ex_875834.htm EXHIBIT 99.1 ex_875834.htm

Exhibit 99.1

 

nrc01.jpg
1245 Q Street, Lincoln, NE 68508
P: 1 800 388 4264 | F: 402 475 9061
nrchealth.com

 

 

NRC HEALTH ANNOUNCES THIRD QUARTER 2025 RESULTS

 

Third quarter TRCV* increased 8% year-over-year to $141.7 million

 

Cash flow from operations increased 46% year-over-year to $13.8 million

 

LINCOLN, Nebraska, October 27, 2025 — National Research Corporation, dba NRC Health, (NASDAQ: NRC), a leader in healthcare experience improvement solutions, today announced results for the third quarter 2025.

 

“We delivered our fourth consecutive quarter of recurring contract value growth, driven by strong sales and meaningful improvement in customer retention,” said Trent Green, CEO of NRC Health. “This sustained momentum reflects how our solutions deliver insights, engagement, and enablement that help healthcare organizations better understand, anticipate, and respond to the experiences of their patients and employees. Healthcare systems are placing their trust in NRC to drive continuous improvement — a trust we earn through authentic partnership, exceptional service, and unmatched expertise across the industry.”

 

 

Third Quarter 2025 Highlights

 

 

Revenue: Total revenue was $34.6 million for the three months ended September 30, 2025, up 2% quarter-over-quarter

 

Net Income: GAAP net income was $4.1 million, representing 12% of revenue, and Adjusted Net Income* was $5.0 million, representing 14% of revenue

 

Adjusted EBITDA: Adjusted EBITDA* was $10.9 million, up 11% year-over-year and representing 31% of revenue

 

Earnings Per Share: GAAP net income per fully diluted share was $0.18 on 22.1 million fully diluted shares; Adjusted net income per diluted share* was $0.23 on 22.1 million fully diluted shares

 

Cash Flow: Net cash from operating activities was $13.8 million, representing 40% of total revenue

 

TRCV: Total Recurring Contract Value (TRCV)* was $141.7 million, up 8% year-over-year, and grew sequentially for the fourth consecutive quarter

 

* These financial measures are defined below under the headings Non-GAAP Financial Measures and Total Recurring Contract Value. Reconciliations of the non-GAAP measures to their most closely comparable GAAP measures are included in the tables in this release.

 

 

 

Stock Repurchases and Dividends

 

During the third quarter, NRC repurchased 618,264 shares at a weighted average price of $14.99 per share. During 2025, the company returned a total of $28.1 million to shareholders through dividends and stock repurchases.

 

The Company’s Board of Directors on October 15, 2025, declared a quarterly cash dividend of $0.16 per share, an increase of 33% from the previously declared quarterly dividend of $0.12 per share. The dividend will be payable on Friday, January 9, 2026, to shareholders of record as of the close of business on Friday, December 26, 2025.

 

 

Earnings Call Information

 

The company will be hosting a conference call to discuss the financial results on Tuesday, October 28, 2025, at 4:00 p.m. ET. A live webcast and replay of the call will be available on the NRC Health Investor Relations website 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, leading to strong outcomes for patients and health systems. For more information, email info@nrchealth.com, or visit www.nrchealth.com.

 

 

Total Recurring Contract Value

 

Total Recurring Contract Value, or TRCV, is a measure of revenue expected under our renewable contracts for their respective annual renewal periods and is viewed by management as a projection of our subscription revenue for the next 12-month period.

 

 

Non-GAAP Financial Measures

 

In addition to consolidated GAAP financial measures, NRC Health reviews various non-GAAP financial measures that management believes to be important in the evaluation of its operating results and performance, including “Adjusted Net Income,” “Adjusted Earnings per Share,” and “Adjusted EBITDA.” Reconciliations of GAAP to non-GAAP financial information are provided later in this release. NRC Health believes Adjusted Net Income, Adjusted Earnings per Share, and Adjusted EBITDA 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 Net Income represents net income adjusted to add back certain non-recurring executive compensation and non-cash stock compensation and the related tax. Adjusted EBITDA represents net income before interest, taxes, depreciation, amortization and certain non-recurring executive compensation and non-cash stock compensation items. 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.

 

 

 

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.

 

Media Contact

marketing@nrchealth.com

 

Investor Contact

ir@nrchealth.com

 

 

NRC Announces Third Quarter 2025 Results

Page 4

October 27, 2025

 

NATIONAL RESEARCH CORPORATION AND SUBSIDIARY

Unaudited Condensed Consolidated Statements of Income

(In thousands, except per share data)

 

   

Three months ended
September 30,

   

Nine months ended
September 30,

 
   

2025

   

2024

   

2025

   

2024

 
                                 

Revenue

  $ 34,608     $ 35,819     $ 102,196     $ 106,154  

Operating expenses:

                               

Direct

    12,404       15,305       38,436       42,583  

Selling, general and administrative

    12,271       10,988       40,360       33,459  

Depreciation and amortization

    2,195       1,546       5,479       4,506  

Total operating expenses

    26,870       27,839       84,275       80,548  
                                 

Operating income

    7,738       7,980       17,921       25,606  

Other income (expense):

                               

Interest income

    41       34       82       103  

Interest expense

    (1,461 )     (706 )     (3,393 )     (1,866 )

Other, net

    (45 )     (12 )     (34 )     (28 )

Total other expense

    (1,465 )     (684 )     (3,345 )     (1,791 )
                                 

Income before income taxes

    6,273       7,296       14,576       23,815  

Provision for income taxes

    2,151       1,608       4,774       5,592  

Net income

  $ 4,122     $ 5,688     $ 9,802     $ 18,223  
                                 

Earnings per share of common stock:

                               

Basic

  $ 0.18     $ 0.24     $ 0.43     $ 0.76  

Diluted

  $ 0.18     $ 0.24     $ 0.43     $ 0.76  
                                 

Weighted average shares and share equivalents outstanding:

                               

Basic

    22,130       23,721       22,584       23,820  

Diluted

    22,130       23,745       22,590       23,868  

 

 

NRC Announces Third Quarter 2025 Results

Page 5

October 27, 2025

 

NATIONAL RESEARCH CORPORATION AND SUBSIDIARY

Condensed Consolidated Balance Sheets

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

 

   

September 30,

2025

   

December 31,

2024

 
   

(unaudited)

         

Assets

               

Current assets:

               

Cash and cash equivalents

  $ 2,219     $ 4,233  

Accounts receivable, net

    12,749       11,054  

Other current assets

    5,433       4,313  

Total current assets

    20,401       19,600  
                 

Property and equipment, net

    41,413       38,269  

Goodwill

    66,152       66,152  

Other, net

    7,753       8,518  

Total assets

  $ 135,719     $ 132,539  
                 

Liabilities and Shareholders Equity

               

Current liabilities:

               

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

  $ 4,012     $ 4,789  

Accounts payable and accrued expenses

    4,994       6,285  

Accrued compensation

    7,124       4,774  

Deferred revenue

    17,814       15,786  

Dividends payable

    2,698       2,770  

Other current liabilities

    1,924       1,454  

Total current liabilities

    38,566       35,858  
                 

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

    76,025       57,895  

Other non-current liabilities

    6,814       7,502  

Total liabilities

    121,405       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 31,954,158 in 2025 and 31,072,144 in 2024, outstanding 22,657,421 in 2025 and 23,083,116 in 2024

    32       31  

Additional paid-in capital

    181,783       180,249  

Retained earnings (accumulated deficit)

    (15,470 )     (17,064 )

Treasury stock

    (152,031 )     (131,932 )

Total shareholders’ equity

  $ 14,314       31,284  

Total liabilities and shareholders’ equity

  $ 135,719     $ 132,539  

 

 

 

NATIONAL RESEARCH CORPORATION AND SUBSIDIARY

Condensed Consolidated Statements of Cash Flows

(In thousands, unaudited)

 

   

Three months ended

   

Nine months ended

 
   

September 30,

   

September 30,

 
   

2025

   

2024

   

2025

   

2024

 

Cash flows from operating activities:

                               

Net income

  $ 4,122     $ 5,688     $ 9,802     $ 18,223  

Adjustments to reconcile net income to net cash provided by operating activities:

                               

Depreciation and amortization

    2,195       1,546       5,479       4,506  

Deferred income taxes

    (49 )     17       (80 )     (118 )

Reserve for uncertain tax positions

    (45 )     72       103       211  

Non-cash share-based compensation expense

    925       189       1,403       96  

Change in fair value of contingent consideration

    49       23       131       23  

Loss on extinguishment of debt

    -       -       67       -  

Amortization of debt issuance costs

    28       11       75       29  

Net changes in assets and liabilities:

                               

Trade accounts receivable

    (332 )     (569 )     (1,694 )     1,752  

Prepaid expenses and other current and noncurrent assets

    1,794       207       (1,021 )     91  

Deferred contract costs, net

    (348 )     (45 )     (359 )     212  

Operating lease assets and liabilities, net

    13       47       (40 )     9  

Accounts payable

    (91 )     567       66       599  

Accrued expenses, wages and bonuses

    1,478       151       2,146       1,760  

Income taxes receivable and payable

    1,896       (362 )     1,246       (706 )

Deferred revenue

    2,129       1,880       1,947       1,559  

Net cash provided by operating activities

    13,764       9,422       19,271       28,246  
                                 

Cash flows from investing activities:

                               

Purchases of property and equipment

    (3,589 )     (1,596 )     (9,585 )     (11,004 )

Acquisitions, net of cash acquired

    -       (4,833 )     -       (4,833 )

Net cash used in investing activities

    (3,589 )     (6,429 )     (9,585 )     (15,837 )
                                 

Cash flows from financing activities:

                               

Borrowings on notes payable

    -       17,000       47,681       17,000  

Payments on notes payable

    (947 )     (1,563 )     (30,393 )     (5,044 )

Borrowings on revolving loan

    5,000       15,500       33,000       39,000  

Payments on revolving loan

    (5,000 )     (19,500 )     (33,003 )     (34,000 )

Payment of debt issuance costs

    -       (37 )     (135 )     (37 )

Payments on finance lease obligations

    (2 )     (4 )     (7 )     (19 )

Proceeds from the exercise of share-based awards

    -       -       132       -  

Payment of payroll tax withholdings on share-based awards exercised

    -       -       -       (317 )

Payment of acquisition contingent consideration

    (236 )     -       (516 )     -  

Repurchase of shares for treasury

    (9,269 )     (8,548 )     (20,179 )     (23,548 )

Payment of dividends on common stock

    (2,776 )     (2,865 )     (8,280 )     (8,636 )

Net cash provided by (used in) financing activities

    (13,230 )     (17 )     (11,700 )     (15,601 )

Change in cash and cash equivalents

    (3,055 )     2,976       (2,014 )     (3,192 )

Cash and cash equivalents at beginning of period

    5,274       485       4,233       6,653  

Cash and cash equivalents at end of period

  $ 2,219     $ 3,461     $ 2,219     $ 3,461  

 

 

 

NATIONAL RESEARCH CORPORATION AND SUBSIDIARY

Reconciliation of GAAP Net Income to Adjusted Net Income

(In thousands, except per share data, unaudited)

 

   

Three months ended

September 30

   

Nine months ended

September 30

 
   

2025

   

2024

   

2025

   

2024

 
                                 

Net income

  $ 4,122     $ 5,688     $ 9,802     $ 18,233  

Add back:

                               

Non-recurring executive compensation

    -       -       6,640       -  

Tax on non-recurring executive compensation

    -       -       (468 )     -  

Non-cash stock compensation

    925       189       1,403       96  

Tax on stock compensation

    (39 )     (46 )     (60 )     (24 )

Adjusted net income

  $ 5,008     $ 5,831     $ 17,317     $ 18,295  
                                 

Earnings per share of common stock:

                               

Basic

  $ 0.18     $ 0.24     $ 0.43     $ 0.76  

Diluted

  $ 0.18     $ 0.24     $ 0.43     $ 0.76  
                                 

Adjusted earnings per share of common stock:

                               

Basic

  $ 0.23     $ 0.25     $ 0.77     $ 0.77  

Diluted

  $ 0.23     $ 0.25     $ 0.77     $ 0.77  
                                 

Weighted average shares and share equivalents outstanding:

                               

Basic

    22,130       23,721       22,584       23,820  

Diluted

    22,130       23,745       22,590       23,868  

 

 

NRC Announces Third Quarter 2025 Results

Page 8

October 27, 2025

 

 

NATIONAL RESEARCH CORPORATION AND SUBSIDIARY

Reconciliation of GAAP Net Income to Adjusted EBITDA

(In thousands, unaudited)

 

   

Three months ended

September 30,

   

Nine months ended

September 30,

 
   

2025

   

2024

   

2025

   

2024

 
                                 

Net income

  $ 4,122     $ 5,688     $ 9,802     $ 18,223  

Add back:

                               

Interest expense

    1,461       706       3,393       1,866  

Income taxes

    2,151       1,608       4,774       5,592  

Depreciation and amortization

    2,195       1,546       5,479       4,506  

Non-recurring executive compensation

    -       -       6,640       -  

Non-cash stock compensation

    925       189       1,403       96  

Adjusted EBITDA

  $ 10,854     $ 9,737     $ 31,491     $ 30,283  

Adjusted EBITDA margin

    31.4 %     27.2 %     30.8 %     28.5 %