National HealthCare Corporation (NYSE American: NHC), the nation's oldest publicly traded senior health care company, announced today net operating revenues for the quarter ended September 30, 2025 totaled $382,661,000 compared to $340,198,000 for the quarter ended September 30, 2024, an increase of 12.5%. The increase in net operating revenues for the third quarter of 2025 compared to the third quarter of 2024 was due to an 8.7% increase in same-facility net operating revenues, as well as the August 1, 2024 acquisition of White Oak Management, Inc. ("White Oak").

For the quarter ended September 30, 2025, the reported GAAP net income attributable to NHC was $39,239,000 compared to $42,789,000 for the same period in 2024. Excluding the unrealized gains and losses in our marketable equity securities portfolio and other non-GAAP adjustments, adjusted net income for the quarter ended September 30, 2025 was $24,744,000 compared to $19,910,000 for the same period in 2024, an increase of 24.3% ^(*). The GAAP diluted earnings per share were $2.50 and $2.73 for the quarters ending September 30, 2025 and 2024, respectively. Adjusted diluted earnings per share were $1.58 and $1.27 for the quarters ending September 30, 2025 and 2024, respectively ^(*).

(*) - See the tables below that provide a reconciliation of GAAP to non-GAAP items.

About NHC

As of November 1, 2025, NHC affiliates operate for themselves and third parties 80 skilled nursing facilities with 10,329 beds. NHC affiliates also operate 26 assisted living communities with 1,413 units, nine independent living communities with 777 units, three behavioral health hospitals, 34 homecare agencies, and 33 hospice agencies. NHC's other services include Alzheimer's and memory care units, pharmacy services, a rehabilitation services company, and providing management and accounting services to third party post-acute operators. Other information about the company can be found on our web site at www.nhccare.com.

Non-GAAP Financial Presentation

The Company is providing certain non-GAAP financial measures as the Company believes that these figures are helpful in allowing investors to more accurately assess the ongoing nature of the Company's operations and measure the Company's performance more consistently across periods. Therefore, the Company believes this information is meaningful in addition to the information contained in the GAAP presentation of financial information. The presentation of this additional non-GAAP financial information is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP.

Forward-Looking Statements

Statements in this press release that are not historical facts are forward-looking statements. NHC cautions investors that any forward-looking statements made involve risks and uncertainties and are not guarantees of future performance. The risks and uncertainties are detailed from time to time in reports filed by NHC with the S.E.C., including Forms 8-K, 10-Q, and 10-K. All forward-looking statements represent NHC's best judgment as of the date of this release.

Consolidated Statements of Operations
(in thousands, except share and per share amounts)
	Three Months Ended						Nine Months Ended
	September 30						September 30
		2025			2024			2025			2024
	(unaudited)						(unaudited)
Revenues:
Net patient revenues	$	370,989		$	328,674		$	1,095,945		$	894,415
Other revenues		11,672			11,524			35,323			34,172
Government stimulus income		-			-			-			9,445
Net operating revenues and grant income		382,661			340,198			1,131,268			938,032

Costs and expenses:
Salaries, wages and benefits		233,176			213,395			687,840			576,609
Other operating		96,604			82,509			281,004			238,092
Facility rent		11,345			10,886			34,038			31,804
Depreciation and amortization		11,158			10,619			33,151			30,543
Total costs and expenses		352,283			317,409			1,036,033			877,048

Income from operations		30,378			22,789			95,235			60,984

Non-operating income		4,660			4,224			13,871			14,865
Interest expense		(1,456	)		(1,742	)		(5,555	)		(1,788	)
Unrealized gains on marketable equity securities		20,827			32,767			26,748			56,290

Income before income taxes		54,409			58,038			130,299			130,351
Income tax provision		(13,400	)		(15,338	)		(32,887	)		(34,294	)
Net income		41,009			42,700			97,412			96,057

Net income attributable to noncontrolling interest		(1,770	)		89			(2,246	)		(211	)

Net income attributable to National HealthCare Corporation	$	39,239		$	42,789		$	95,166		$	95,846

Net income per common share
Basic	$	2.53		$	2.78		$	6.15		$	6.23
Diluted	$	2.50		$	2.73		$	6.10		$	6.15

Weighted average common shares outstanding
Basic		15,484,464			15,411,680			15,461,804			15,384,758
Diluted		15,664,530			15,667,321			15,613,505			15,576,294

Dividends declared per common share	$	0.64		$	0.61		$	1.89		$	1.81


Balance Sheet Data	September 30			December 31
(in thousands)		2025			2024
	(unaudited)

Cash, cash equivalents and marketable securities	$	297,383		$	216,185
Restricted cash, cash equivalents and marketable securities		161,299			163,795
Current assets		493,519			424,408
Property and equipment, net		675,169			684,289
Total assets		1,572,142			1,524,429
Current liabilities, excluding current long-term debt		274,859			227,297
Current and long-term debt		73,125			137,000
NHC stockholders' equity		1,052,979			980,161

Selected Operating Statistics
	Three Months Ended							Nine Months Ended
	September 30							September 30
		2025				2024			2025				2024
	(unaudited)							(unaudited)
Skilled Nursing Per Diems:
Medicare	$	613.12			$	578.12		$	613.35			$	579.24
Managed Care		417.32		⁽²⁾		459.94			452.02		⁽²⁾		459.64
Medicaid		284.60				290.00			284.25				274.44
Private Pay and Other		334.71				323.36			337.64				315.09

Average Skilled Nursing Per Diem	$	350.85			$	350.85		$	357.42		⁽¹⁾	$	344.76		⁽¹⁾

Skilled Nursing Patient Days:
Medicare		82,501				79,957			252,370				235,715
Managed Care		81,338				70,635			247,999				199,023
Medicaid		369,895				344,940			1,102,224				906,265
Private Pay and Other		206,639				177,846			585,435				485,523

Total Skilled Nursing Patient Days		740,373				673,378			2,188,028		⁽¹⁾		1,826,526		⁽¹⁾

⁽¹⁾ NHC exited three skilled nursing facilities in Missouri on March 1, 2024. For the nine months ended September 30, 2024, the exited Missouri skilled nursing facilities had an average skilled nursing per diem of $275.64 and 20,267 patient days.

⁽²⁾ For the three and nine months ended September 30, 2025, the average Managed Care skilled nursing per diem is lower due to the delayed timing of incentive quality payments from our NHC Advantage managed care program. Excluding the incentive quality payments from NHC Advantage, the average Medicare Advantage per diem increased 2.7% during the third quarter of 2025 compared to the same period a year ago. For the nine months ending September 30, 2025, the average Medicare Advantage per diem increased 5.3% compared to the same period a year ago.


The tables below provide reconciliations of GAAP to non-GAAP items (in thousands, except per share amounts):
	Three Months Ended							Nine Months Ended
	September 30							September 30
		2025				2024			2025				2024
	(unaudited)							(unaudited)

Net income attributable to National Healthcare Corporation	$	39,239			$	42,789		$	95,166			$	95,846
Non-GAAP adjustments
Unrealized gains on marketable equity securities		(20,827	)			(32,767	)		(26,748	)			(56,290	)
Operating results for newly-opened operations not at full capacity		-				120			-				140
Gains on sale of assets		-				-			(3,606	)			(1,024	)
Stock-based compensation expense		1,239				1,093			3,499				3,062
Acquisition-related expenses		-				637			-				2,831
Employee retention credit		-				-			-				(9,445	)
Income tax provision on non-GAAP adjustments		5,093				8,038			6,982				15,789
Non-GAAP Net income	$	24,744			$	19,910		$	75,293			$	50,909

GAAP diluted earnings per share	$	2.50			$	2.73		$	6.10			$	6.15
Non-GAAP adjustments
Unrealized gains on marketable equity securities		(1.33	)			(2.09	)		(1.71	)			(3.59	)
Operating results for newly-opened operations not at full capacity		-				0.01			-				0.01
Gains on sale of assets		-				-			(0.23	)			(0.07	)
Stock-based compensation expense		0.08				0.07			0.22				0.20
Acquisition-related expenses		-				0.04			-				0.18
Employee retention credit		-				-			-				(0.62	)
Income tax provision on non-GAAP adjustments		0.33				0.51			0.45				1.01
Non-GAAP diluted earnings per share	$	1.58			$	1.27		$	4.83			$	3.27

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Brian F. Kidd, SVP/CFO

Phone: (615) 890-2020

NHC Reports Third Quarter 2025 Earnings