NATIONAL RESEARCH CORP SEC 10-Q Report

National Research Corp, a leading provider of analytics and insights to healthcare organizations, has released its Form 10-Q report for the third quarter of 2025. The report provides a comprehensive overview of the company's financial performance and operational highlights, reflecting the company's ongoing efforts to innovate and grow within the healthcare industry. Financial Highlights Revenue: $34.6 million, decreased by 3% compared to the same period in 2024, primarily due to decreased recurring revenue in the existing client base.Operating Income: $7.7 million, decreased by 3% compared to the same period in 2024, with an operating margin remaining stable at 22%.Net Income: $4.1 million, decreased from $5.7 million in the same period in 2024, impacted by higher interest expenses and an increased effective tax rate.Net Income Per Share - Basic: $0.18, decreased from $0.24 in the same period in 2024, reflecting the decrease in net income.Net Income Per Share - Diluted: $0.18, decreased from $0.24 in the same period in 2024, consistent with the basic EPS. Business Highlights Revenue Segments: The company derives its revenue primarily from subscription-based services, which are recognized ratably over time. Other revenue streams include services recognized at a point in time, fixed non-subscription services recognized over time, and unit-price services recognized over time.Operational Performance: The company operates a single segment focused on providing analytics and insights to healthcare organizations, facilitating the measurement and improvement of patient and employee experience related to marketing, experience, reputation, and governance.Geographical Performance: The company's revenue and long-lived assets are primarily based in the United States, and the business is managed on a consolidated basis.Sales Units: The company reported a decrease in direct expenses due to lower conference costs and a reduction in workforce and automation, which were implemented in the fourth quarter of 2024.Future Outlook: The company plans to continue investing in innovative solutions for clients, which may cause fluctuations in direct expenses as a percentage of revenue. The company also anticipates that sustaining growth in Total Recurring Contract Value (TRCV) will lead to revenue growth in the coming quarters.Management Changes: Shane Harrison was appointed as the Executive Vice President and Chief Financial Officer, bringing a strong background in finance and strategic planning.Operational Strategy: The company prioritizes funding innovation and growth investments, including mergers and acquisitions, as well as internal projects. Secondary priorities include capital allocation for quarterly dividends and share repurchases.SEC Filing: NATIONAL RESEARCH CORP [ NRC ] - 10-Q - Nov. 07, 2025