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Earnings analysis · 10-Q

NHC earnings analysis

Filed May 7, 2026 · Our reading of the company's report

The latest report

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…

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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.

Read the original on SEC.gov

From revenue to operating profit

Where each $100 of revenue went in this report.

Of every $100 of revenue Cost of sales $0 Operating expenses $92 Left as operating profit $8

Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.

Where revenue came from

The business segments reported by the company.

Inpatient Services 89.3% Homecare and Hospice 10.7%

Shares of the segments disclosed in this filing, largest first.

Reported figures

Earnings per share
$2.27

What stood out

  • 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.

What to watch

  • 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.

Management's outlook

Management anticipates continued growth in net revenues and improved patient care quality.

This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.