NRC Health Announces Fourth Quarter 2025 Results

Fourth quarter TRCV* increased 8% year-over-year to $144.1 million

Cash flow from operations increased 13% year-over-year to $7.2 million

National Research Corporation, dba NRC Health, (NASDAQ:NRC), a leader in healthcare experience improvement solutions, today announced results for the fourth quarter 2025.

"Our fourth quarter results reflect the strong, disciplined execution happening across NRC Health and the deep trust our customers place in us," said Trent Green, CEO of NRC Health. "With TRCV reaching $144 million and momentum building across our portfolio, we finished the year with a strong foundation for continued execution. As healthcare leaders navigate unprecedented complexity, our mission—turning human understanding into meaningful, measurable action—has never been more essential. I'm incredibly proud of our teams and energized by the opportunity ahead as we continue helping our partners elevate the experiences of the people they serve."

Fourth Quarter 2025 Highlights

• Revenue: Total revenue was $35.2 million for the three months ended December 31, 2025, up 2% quarter-over-quarter
• Net Income: GAAP net income was $1.8 million, representing 5% of revenue, and Adjusted Net Income* was $3.4 million, representing 10% of revenue
• Adjusted EBITDA: Adjusted EBITDA* was $8.7 million, representing 25% of revenue
• Earnings Per Share: GAAP net income per fully diluted share was $0.08 on 21.8 million fully diluted shares; Adjusted net income per diluted share* was $0.16 on 21.8 million fully diluted shares
• Cash Flow: Net cash from operating activities was $7.2 million, representing 20% of revenue
• TRCV: Total Recurring Contract Value (TRCV)* was $144.1 million, up 8% year-over-year, and grew sequentially for the fifth consecutive quarter

Full-Year 2025 Highlights

• Revenue: Total revenue was $137.4 million for the year ended December 31, 2025
• Net Income: GAAP net income was $11.6 million, representing 8% of revenue, and Adjusted Net Income* was $20.7 million, representing 15% of revenue
• Adjusted EBITDA: Adjusted EBITDA* was $40.2 million, representing 29% of revenue
• Earnings Per Share: GAAP net income per fully diluted share was $0.50 on 22.4 million fully diluted shares; Adjusted net income per diluted share* was $0.93 on 22.4 million fully diluted shares
• Cash Flow: Net cash from operating activities was $26.5 million, representing 19% of revenue

* 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.

Dividend Declaration

The Company's Board of Directors on January 21, 2026, declared a quarterly cash dividend of $0.16 per share. The dividend will be payable on Friday, April 10, 2026, to shareholders of record as of the close of business on Friday, March 27, 2026.

Earnings Call Information

The company will be hosting a conference call to discuss the financial results on Tuesday, February 3, 2026, at 4:30 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 the patients, families, consumers, employees, and communities they serve on a human level. Guided by its uniquely empathic heritage, human-centered approach, unmatched national market research, and emphasis on consumer preferences, NRC Health is transforming the healthcare experience, creating strong outcomes across the healthcare journey. For more information, email [email protected], 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 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.

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