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 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 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 Condensed Consolidated Statements of Income (In thousands except per share data, unaudited)

	Three months ended December 31,						Twelve months ended December 31,
	2025			2024			2025			2024

Revenue	$	35,193		$	36,907		$	137,390		$	143,060
Operating expenses:
Direct		13,936			14,350			52,371			56,933
Selling, general and administrative		14,444			11,452			54,805			44,911
Depreciation and amortization		2,145			1,516			7,624			6,022
Total operating expenses		30,525			27,318			114,800			107,866

Operating income		4,668			9,589			22,590			35,194
Other income (expense):
Interest income		30			22			111			125
Interest expense		(1,370	)		(729	)		(4,762	)		(2,595	)
Other, net		(61	)		(6	)		(95	)		(34	)
Total other expense		(1,401	)		(713	)		(4,746	)		(2,504	)

Income before income taxes		3,268			8,876			17,844			32,690

Provision for income taxes		1,471			2,315			6,244			7,907
Net income	$	1,797		$	6,561		$	11,600		$	24,783

Earnings per share of common stock:
Basic	$	0.08		$	0.28		$	0.50		$	1.05
Diluted	$	0.08		$	0.28		$	0.50		$	1.04

Weighted average shares and share equivalents outstanding:
Basic		21,786			23,354			22,383			23,703
Diluted		21,807			23,366			22,396			23,743

NATIONAL RESEARCH CORPORATION AND SUBSIDIARY Condensed Consolidated Balance Sheets (Dollars in thousands except share amounts and par value, unaudited)

	2025			2024

Assets
Current assets:
Cash and cash equivalents	$	4,139		$	4,233
Accounts receivable, net		11,108			11,054
Other current assets		4,962			4,313
Total current assets		20,209			19,600

Property and equipment, net		40,474			38,269
Goodwill		66,152			66,152
Other, net		8,043			8,518
Total assets	$	134,878		$	132,539

Liabilities and Shareholders' Equity
Current liabilities:
Current portion of notes payable, net of unamortized debt issuance costs	$	4,014		$	4,789
Accounts payable and accrued expenses		4,066			6,285
Accrued wages and bonuses		7,218			4,774
Deferred revenue		16,201			15,786
Dividends payable		3,625			2,770
Other current liabilities		1,496			1,454
Total current liabilities		36,620			35,858

Notes payable, net of current portion and unamortized debt issuance costs		75,021			57,895
Other non-current liabilities		9,247			7,502
Total liabilities		120,888			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 31,966,504 in 2025 and 31,072,144 in 2024, outstanding 22,637,252 in 2025 and 23,083,116 in 2024		32			31
Additional paid-in capital		183,880			180,249
Retained earnings (accumulated deficit)		(17,298	)		(17,064	)
Treasury stock		(152,624	)		(131,932	)
Total shareholders' equity	$	13,990			31,284
Total liabilities and shareholders' equity	$	134,878		$	132,539

NATIONAL RESEARCH CORPORATION AND SUBSIDIARY Condensed Consolidated Statements of Cash Flows (In thousands, unaudited)

	Three months ended						Twelve months ended
	December 31,						December 31,
		2025			2024			2025			2024
Cash flows from operating activities:
Net income	$	1,797		$	6,560		$	11,600		$	24,783
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		2,145			1,517			7,624			6,022
Deferred income taxes		2,533			(546	)		2,453			(664	)
Reserve for uncertain tax positions		70			47			174			258
Loss on disposal of property and equipment		61			17			61			17
Non-cash share-based compensation expense		1,909			188			3,312			284
Change in fair value of contingent consideration		10			60			141			83
Loss on extinguishment of debt		-			-			67			-
Amortization of debt issuance costs		28			-			102			28
Net changes in assets and liabilities:
Trade accounts receivable		1,641			5			(53	)		1,757
Prepaid expenses and other current and noncurrent assets		1,045			1,657			24			1,749
Operating lease assets and liabilities, net		(1	)		(33	)		(41	)		(24	)
Deferred contract costs, net		(577	)		(321	)		(936	)		(109	)
Accounts payable		103			(707	)		170			(108	)
Accrued expenses, wages and bonuses		(476	)		(1,586	)		1,670			175
Income taxes receivable and payable		(1,436	)		861			(191	)		155
Deferred revenue		(1,673	)		(1,340	)		273			219
Net cash provided by operating activities		7,179			6,379			26,450			34,625
Cash flows from investing activities:
Purchases of property and equipment		(1,121	)		(4,444	)		(10,706	)		(15,448	)
Acquisitions, net of cash acquired		-			-			-			(4,833	)
Net cash used in investing activities		(1,121	)		(4,444	)		(10,706	)		(20,281	)
Cash flows from financing activities:
Payments on notes payable		(1,031	)		(941	)		(31,424	)		(5,986	)
Payment of debt issuance costs		-			(5	)		(134	)		(42	)
Borrowings on notes payable		-			15,000			47,681			32,000
Borrowings on revolving loan		-			10,500			33,000			49,500
Payments on revolving loan		-			(15,500	)		(33,003	)		(49,500	)
Payments on finance lease obligations		(2	)		(2	)		(9	)		(21	)
Proceeds from the exercise of share-based awards		-			-			132			-
Payment of payroll tax withholdings on share-based awards exercised		(407	)		-			(407	)		(317	)
Payment of acquisition contingent consideration		-			-			(516	)		-
Repurchase of shares for treasury		-			(7,398	)		(20,180	)		(30,945	)
Payment of dividends on common stock		(2,698	)		(2,817	)		(10,978	)		(11,453	)
Net cash provided by (used in) financing activities		(4,138	)		(1,163	)		(15,838	)		(16,764	)
Change in cash and cash equivalents		1,920			772			(94)			(2,420	)
Cash and cash equivalents at beginning of period		2,219			3,461			4,233			6,653
Cash and cash equivalents at end of period	$	4,139		$	4,233		$	4,139		$	4,233

NATIONAL RESEARCH CORPORATION AND SUBSIDIARY Reconciliation of GAAP Net Income to Adjusted Net Income (In thousands, except per share data, unaudited)

	Three months ended December 31						Twelve months ended December 31
	2025			2024			2025			2024

Net income	$	1,797		$	6,561		$	11,600		$	24,783
Add back:
Non-recurring executive compensation		-			-			6,640			-
Tax on non-recurring executive compensation		-			-			(468	)		-
Non-cash stock compensation		1,909			189			3,312			284
Tax on stock compensation		(286	)		(46	)		(346	)		(70	)
Adjusted net income	$	3,420		$	6,704		$	20,738		$	24,997

Earnings per share of common stock:
Basic	$	0.08		$	0.28		$	0.50		$	1.05
Diluted	$	0.08		$	0.28		$	0.50		$	1.04

Adjusted earnings per share of common stock:
Basic	$	0.16		$	0.29		$	0.93		$	1.05
Diluted	$	0.16		$	0.29		$	0.93		$	1.05

Weighted average shares and share equivalents outstanding:
Basic		21,786			23,354			22,383			23,703
Diluted		21,807			23,366			22,396			23,743

NATIONAL RESEARCH CORPORATION AND SUBSIDIARY Reconciliation of GAAP Net Income to Adjusted EBITDA (In thousands, unaudited)

	Three months ended December 31				Twelve months ended December 31
	2025		2024		2025		2024

Net income	$	1,797	$	6,561	$	11,600	$	24,783
Add back:
Depreciation and amortization		2,145		1,516		7,624		6,022
Interest expense		1,370		729		4,762		2,595
Income taxes		1,471		2,315		6,244		7,907
Non-recurring executive compensation		-		-		6,640		-
Non-cash stock compensation		1,909		189		3,312		284
Adjusted EBITDA	$	8,692	$	11,310	$	40,182	$	41,591
Adjusted EBITDA margin		24.7%		30.6%		29.2%		29.1%

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NRC Health Announces Fourth Quarter 2025 Results