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…
Earnings analysis · 10-Q
NRC earnings analysis
Filed August 4, 2026 · Our reading of the company's report
The latest report
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…
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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.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $-0.15
What stood out
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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.
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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.
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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.
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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.
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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.
What to watch
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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.
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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.
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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.
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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.
Management's outlook
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.
Earlier filings 4
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 itself. Analysis can contain errors; check the source document for full context.