NATIONAL RESEARCH CORP SEC 10-Q Report
National Research Corp has released its Q3 2025 Form 10-Q report, showing a 3% decrease in revenue to $34.6 million and a net income drop to $4.1 million. The company continues to focus on subscription-based services and plans to invest in innovative solutions. Shane Harrison has been appointed as the new CFO. The operational strategy emphasizes funding for growth and innovation, including potential mergers and acquisitions.
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
