NRC HEALTH ANNOUNCES SECOND QUARTER 2025 RESULTS (Form 8-K)

NRC HEALTH ANNOUNCES SECOND QUARTER 2025 RESULTS

Reports third consecutive quarter of sequential TRCV Growth

LINCOLN, Nebraska, July 28, 2025 - National Research Corporation, dba NRC Health, (NASDAQ:NRC) today announced results for the second quarter 2025.

CEO Statement

Trent S. Green, Chief Executive Officer of NRC Health, commented: "We're encouraged by our second-quarter results, which demonstrate continued momentum across key areas of our business. In my early weeks as CEO, I've been energized by feedback from both current and prospective customers, particularly their enthusiasm for our product portfolio and appreciation for the service mindset of our associates. To provide additional context on the quarter, we're reinstating our quarterly earnings call, which I hope investors will join tomorrow, July 29, at 10 a.m. ET."

Additional Information

Total recurring contract value¹, or TRCV, grew 2% sequentially, the third consecutive quarter of TRCV growth and the highest sequential growth rate since the first quarter of 2021. New logo sales, cross-sells, and customer retention have improved over the last several quarters, attributable to a stronger sales team, a product portfolio that resonates in the marketplace, and the strength of our customer service organization.

With the transition from founder-led leadership, compensation arrangements for executive leaders were implemented to preserve philosophical and economic alignment with long-term shareholders. These arrangements, primarily non-recurring cash bonuses and equity grants, resulted in a net margin of 0% for the second quarter. Excluding these items, adjusted EBITDA margin² was 30% in the quarter and has remained relatively stable over the past year due to cost control initiatives and higher revenue per FTE.

Dividends and Stock Repurchases

The Company's Board of Directors on July 23, 2025, declared a quarterly cash dividend of $0.12 (twelve cents) per share payable Friday, October 10, 2025, to shareholders of record as of the close of business on Friday, September 26, 2025.

During the second quarter, NRC repurchased 381,736 shares at a weighted average price of $14.96 per share. During 2025, the company has returned a total of $16.1 million to shareholders through dividends and stock repurchases.

¹ Total recurring contract value (TRCV) is a measure of projected revenue under all renewable contracts for the next 12-month period.

² Adjusted EBITDA is a non-GAAP financial measure. A reconciliation of adjusted EBITDA to net income and disclosure regarding why we believe adjusted EBITDA provides useful information to investors is included later in this release.

NRC Announces Second Quarter 2025 Results

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July 28, 2025

Earnings Call Information

The company will be hosting an earnings call to provide additional detail on the quarter on July 29, 2025, 10 a.m. ET, available at nrchealth.com/investor-relations.

About NRC Health

For more than 40 years, NRC Health (NASDAQ: NRC) has led the charge to humanize healthcare and support organizations in their understanding of each unique individual. NRC Health's commitment to Human Understanding® helps leading healthcare systems get to know each person they serve not as point-in-time insights, but as an ongoing relationship. Guided by its uniquely empathic heritage, NRC Health's patient-focused approach, unmatched market research, and emphasis on consumer preferences are transforming the healthcare experience, creating strong outcomes for patients and entire healthcare systems. For more information, email [email protected], or visit www.nrchealth.com.

Non-GAAP Performance Measures

The company prepares its financial statements and presents its financial results in accordance with U.S. GAAP. However, it also provides additional non-GAAP financial information related to specific items management believes to be important in the evaluation of its operating results and performance. Reconciliations of GAAP to non-GAAP financial information, and a discussion of why the company believes providing this additional information is useful to investors, is provided in the "Non-GAAP Disclosures" section below.