NRC earnings analysis
What we found in NRC'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
NRC Health delivered Q2 revenue growth of 4.0% to $35.392 million and expanded TRCV by $14.952 million year over year to $151.904 million, supporting its recurring-revenue outlook. However, operating results deteriorated materially: a $3.238 million operating loss and negative $0.15 GAAP diluted EPS reflected elevated executive-related equity compensation and continuing technology investment. Cash generation improved on a first-half basis, but Q2 free cash flow was only $0.062 million and the company carried $90.3 million of debt against $3.3 million of cash.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue grew 4.0% year over year
- Q2 revenue rose $1.4 million year over year to $35.392 million from $34.038 million, driven by $1.2 million of higher recurring revenue from existing customers and $0.9 million from new customers, partly offset by $0.7 million of contra-revenue.
- TRCV increased $15.0 million
- TRCV increased to $151.904 million at June 30, 2026 from $136.952 million a year earlier, a $14.952 million increase. Management identifies TRCV as a leading indicator of future revenue trends.
- First-half cash generation improved
- Six-month operating cash flow improved to $8.566 million from $5.507 million, while six-month free cash flow reached $5.408 million versus negative $0.489 million. Q2 operating cash flow was $1.386 million and capex was $1.324 million, producing $0.062 million of free cash flow.
- Adjusted EPS rose despite GAAP loss
- Adjusted diluted EPS increased to $0.31 from $0.28 and adjusted EBITDA was $9.436 million versus $10.302 million. The adjusted result excludes $7.371 million of non-cash stock compensation and $3.160 million of management-transition costs.
- Working-capital deficit narrowed
- The working-capital deficit improved to $12.2 million at June 30, 2026 from $16.4 million at December 31, 2025. Available liquidity included $3.3 million of cash, $17.0 million of unused revolver capacity, and $27.6 million of delayed-draw term-loan availability.
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.
- GAAP profitability deteriorated sharply
- Operating income swung to a $3.238 million loss from $1.588 million of income, reducing operating margin to negative 9.1% from positive 4.7%. GAAP diluted EPS declined to negative $0.15 from negative $0.01.
- Executive compensation inflated expenses
- SG&A increased to $22.945 million from $17.734 million, principally due to $7.1 million of higher executive-related stock compensation and about $0.5 million of salary expense for executives absent in the prior-year period. Management says the equity-award amendments are not expected to recur, but reported earnings absorbed the charge.
- Leverage and interest expense increased
- Debt totaled $90.3 million at June 30, 2026, comprising $77.3 million on the delayed-draw term loan and $13.0 million on the revolver, while cash was only $3.3 million. Interest expense rose to $1.321 million from $1.032 million, and borrowings carried a 5.97% rate at quarter-end.
- Q2 free-cash-flow conversion was thin
- Quarterly free cash flow was only $0.062 million as $1.324 million of capex nearly consumed $1.386 million of operating cash flow. Capex was $3.158 million in the first half, or 4.5% of $70.195 million of revenue.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $-0.15
- Gross margin
- 61.7%
- Operating margin
- -9.1%
What they said about what is next.
The 10-Q provides no quantitative revenue or EPS outlook. Management states that $151.9 million of June 30, 2026 TRCV is a leading indicator and that, if TRCV growth is sustained, it would expect revenue growth in subsequent periods, subject to intervening factors.
The filing reads about the same as the one before it.
What came before.
- 10-Q · May 6, 2026
- NRC's Q1 2026 financial results show a 3.9% increase in revenue year-over-year, reaching $34.8 million. Although EPS declined to $0.21 from $0.25 last year, cash flow from operations improved alongside a significant…
- 10-K · April 28, 2026
- NRC's 10-K highlights a strategic focus on enhancing operational efficiency and customer satisfaction, with an emphasis on expanding market share within the healthcare analytics segment. The company reported total…
- 10-K · March 5, 2026
- NRC Health positions itself as a niche, subscription-driven provider of healthcare experience management with a 45‑year heritage, an AI engine (Huey) and a large Market Insights database (≈300,000 consumers annually).…
- 10-Q · August 8, 2024
- Q2 2024 revenue was $35.021M, down from $36.161M a year ago and roughly flat vs Q1 2024; operating income was $8.865M (25.3% margin) and diluted EPS of $0.26 (down $0.03 YoY). Cash declined sharply to $485K while the…
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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