NHC earnings analysis
What we found in NHC's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
National HealthCare Corporation (NHC) reported revenue of $381.8 million for Q1 2026, reflecting a 4.3% increase from the prior period and a 6.4% increase year-over-year. The diluted EPS for the quarter was $2.27, up from $2.07 in Q1 2025, while gross and operating margins also improved slightly. Management highlighted a focus on occupancy rates and quality of patient care, yet faces headwinds from labor shortages and regulatory changes.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue Growth
- NHC posted revenue of $381.8 million for Q1 2026, a 6.4% increase from $358.6 million in Q1 2025.
- Improved EPS
- Diluted EPS increased to $2.27 in Q1 2026 from $2.07 in Q1 2025.
- Higher Operating Margin
- Operating margin improved to 8.4% in Q1 2026 from 8.2% in Q1 2025.
- Occupancy Rate Increase
- Occupancy in skilled nursing facilities rose to 90.0%, up from 89.3% a year ago.
- Significant Cash Flow Increase
- Operating cash flow surged by 59.3%, totaling $62.5 million compared to $39.3 million last year.
- Successful Cost Management
- Total costs increased only by 1.9% to $349.6 million despite revenue growth.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Labor Shortages
- Continued workforce shortages have put pressure on wage expenses, affecting overall profitability with salaries accounting for 61.6% of revenues.
- Regulatory Changes
- Changes in Medicare and Medicaid reimbursement rates pose risks to revenue stability; a potential 3.6% net adjustment looms for FY2027.
- Dependence on Medicaid Funding
- Financial performance may be adversely affected by state budget constraints and the ongoing uncertainty in Medicaid funding.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $2.27
- Gross margin
- 100.0%
- Operating margin
- 8.4%
- Segment
- Inpatient Services: $330.3M
- Segment
- Homecare and Hospice: $39.5M
What they said about what is next.
Management anticipates continued growth in net revenues and improved patient care quality.
The filing reads better than the one before it.
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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