NRC Health (NRC) Q1 2026 Earnings Call Transcript
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
Overview
The earnings call presents several positive aspects: revenue growth, a significant increase in new sales bookings, and improved customer retention. The company's strategic initiatives, such as restructuring the go-to-market model and enhancing product innovation, are expected to drive future growth. The announcement of a share repurchase plan and consistent dividend payments further supports shareholder value. Although there are concerns about executive compensation adjustments and seasonal revenue fluctuations, the overall financial health and optimistic guidance suggest a positive stock price movement.
Key Financial Performance
Total Recurring Contract Value (TRCV) Increased 13% year-over-year to $152 million, which is $8 million higher than Q4 2025. This growth was driven by strong sales performance, including a landmark deal, and improved customer retention.
New Sales Bookings Up over 200% year-over-year, driven primarily by a landmark deal and improved customer engagement.
Revenue Increased 4% year-over-year to $34.8 million. This marks the first year-over-year revenue growth since 2023, attributed to TRCV growth and improved customer retention.
Adjusted EBITDA Margin Improved sequentially by 2 points to 27%. However, it was lower year-over-year due to higher operating expenses tied to executive team expansion, corporate expenses, and annual merit increases.
Adjusted Net Income $4.6 million, resulting in an adjusted EPS of $0.21 per share, up $0.05 sequentially from Q4.
Free Cash Flow Up nearly 50% year-over-year to $5.3 million or $0.24 per share, attributed to improved operational efficiency.
You have reached the limit. Sign up to access full content
Get started
Operating Highlights
Landmark Deal: Signed the largest deal in NRC Health's history, focusing on experience improvement rather than measurement. The deal includes multiple SKUs across experience and enablement product families.
Product Enhancements: Improved customer retention driven by product and feature enhancements, consistent engagement, and clear articulation of solution outcomes.
Market Differentiation: Demonstrated capability to turn experience insights into tangible actions, differentiating NRC Health in the market.
Customer Confidence: Customers value NRC Health's straightforward pricing, streamlined contracting, and effective support model.
Revenue Growth: Revenue increased 4% year-over-year to $35 million, marking the first positive growth since 2023.
Adjusted EBITDA Margin: Improved sequentially by 2 points to 27%.
Free Cash Flow: Increased nearly 50% year-over-year to $5.3 million.
Strategic Vision: Focus on enabling actions that drive change, combining healthcare-specific intelligence with operational tools for behavior change.
Capital Allocation: Prioritizing investments in NRC, strategic acquisitions, and returning capital to shareholders through dividends and share buybacks.
You have reached the limit. Sign up to access full content
Get started
Risk or Challenges
Financial Pressure on Health Systems: Health systems are facing sustained financial pressure, which could impact their ability to invest in NRC Health's solutions.
Workforce Fatigue: Rising workforce fatigue in health systems may affect the implementation and effectiveness of NRC Health's solutions.
Rising Consumer Expectations: Increasing consumer expectations in healthcare could challenge NRC Health to continuously innovate and meet these demands.
Rapid Technology Change: Rapid changes in technology may require NRC Health to adapt quickly to remain competitive and relevant.
Continued Consolidation in Healthcare: Ongoing consolidation in the healthcare industry could lead to fewer potential customers or more complex sales processes.
Implementation Costs for Landmark Deal: The implementation of the landmark deal will require significant investment in delivery and customer success teams, potentially impacting short-term margins.
Seasonality in Revenue: Seasonal fluctuations in revenue, such as those related to conferences and point-in-time surveys, could affect financial performance.
Executive Compensation Adjustments: Changes to executive compensation agreements, including a $9.4 million charge, may impact financial results and shareholder perception.
You have reached the limit. Sign up to access full content
Get started
Guidance & Outlook
Revenue Growth: The company expects revenue growth to continue, with the landmark Q1 deal being a significant growth catalyst. Phase 1 of the deal is expected to go live in Q3 2026, contributing to revenue growth, while Phase 2 is planned for Q3 2027.
Margin Projections: Adjusted EBITDA margins are expected to remain flat in Q2 2026 due to implementation costs but are projected to expand starting in Q3 2026 as revenue begins to reflect recent TRCV trends. The Q1 deal is expected to be accretive to overall company margins, particularly after Phase 2 implementation.
Capital Allocation: The company plans to prioritize investments in internal growth initiatives and strategic acquisitions. A $60 million share repurchase authorization has been announced, with a focus on maintaining a manageable leverage profile.
Operational Investments: Expansion of delivery and customer success teams is planned in Q2 and Q3 2026 to support the implementation of the Q1 deal across hundreds of hospitals and outpatient facilities.
Strategic Commitments: The company aims to strengthen its enablement solutions, ensuring AI and automation enhance patient and employee understanding. Investments will focus on operational tools for continuous improvement and maintaining a long-term mindset for disciplined execution and capital deployment.
You have reached the limit. Sign up to access full content
Get started
Shareholder Return Plan
Dividend Payment: During the quarter, NRC Health paid a dividend of $0.16 per share, consistent with their ongoing commitment to returning capital to shareholders while continuing to invest in growth.
Share Repurchase Authorization: In March, NRC Health announced a $60 million share repurchase authorization from their Board. The company intends to strategically deploy capital under this authorization while maintaining a manageable leverage profile.
You have reached the limit. Sign up to access full content
Get started
Key Q&A
Q:Could you speak to how you're thinking about the expansion opportunity and what changes you've made to your go-to-market strategy to capture this?
A:Trent Green explained that the company has reorganized its sales enterprise to focus on individual products and hired additional staff to improve market coverage. They are leveraging interconnectedness between products to catalyze cross-product sales conversations, using data analysis like the 'trust gap' to identify opportunities. The company is also integrating consumer sentiment analysis into board discussions and emphasizing the breadth of their solution suite, including the rounding solution acquired in 2024, which is now part of nearly every experience sale conversation.
Q:Can you give us some perspective on what you think the CapEx outlook would be for the year?
A:Shane Harrison stated that CapEx is expected to be around $1 million to $1.5 million per quarter, with some variability due to capitalized software costs. The building-related CapEx is largely behind them.
Q:Can you provide incremental margin guidance, if any?
A:Shane Harrison mentioned that while revenue is expected to increase, Phase 1 delivery costs for a landmark win will offset some of the incremental revenue. Long-term, the win is expected to be accretive to overall margins.
Q:Is the combination of two competitors opening some doors for you?
A:Trent Green noted that the combination of Qualtrics and Press Ganey has not significantly impacted their business yet, though it has slowed some buying processes.
Q:How does NRC play into the value-based care framework?
A:Trent Green explained that NRC's tools demonstrate value by improving outcomes and reducing costs. Examples include a service recovery tool that automates responses to bad experiences and a rounding platform enabled by ambient AI, which reduces administrative burdens and aligns with value-based care goals.
Q:What kind of longer-term financial model and operating leverage improvement do you think the business can sustain over the next couple of years?
A:Shane Harrison stated that the business aims to return to EBITDA margins in the low 30s in the midterm and mid-30s longer term. Assuming mid- to high single-digit revenue growth, they plan to reinvest 40%-50% of incremental revenue into the business while maintaining strong operating leverage.
Q:Can you talk about the product enhancements and how they have contributed to growth?
A:Trent Green highlighted that NRC is moving from just reporting insights to driving actions. Enhancements include the experience platform, rounding solution, service recovery solution, and a refreshed Board assessment tool. These tools focus on guiding organizations to actions that improve performance and outcomes.
Q:Review of Unclear Management Responses
A:Management avoided directly addressing the impact of the competitor combination (Qualtrics and Press Ganey) on their business, providing only a vague response that it has slowed some buying processes without significant impact.
You have reached the limit. Sign up to access full content
Get started
Earnings Word Cloud
The most frequently occurring keywords in this quarter's earning call
AI automation
CEO
CFO statement
Enablement differentiation
Expectations margin
Investor Relations
NRC Health
Shane
Today
action
belief
capability
change
chapter NRC
confidence
context
deal
enablement
engagement
expectation
health care
insight
moment
outcome
patient family
platform
point
practice
press release
process
rate
retention
role
statement result
stewardship
story
term
tool
understanding
website
NRC Transcript
NRC Health (NRC) Q1 2026 Earnings Call Transcript
Positive4-29
The earnings call presents several positive aspects: revenue growth, a significant increase in new sales bookings, and improved customer retention. The company's strategic initiatives, such as restructuring the go-to-market model and enhancing product innovation, are expected to drive future growth. The announcement of a share repurchase plan and consistent dividend payments further supports shareholder value. Although there are concerns about executive compensation adjustments and seasonal revenue fluctuations, the overall financial health and optimistic guidance suggest a positive stock price movement.
National Research Corporation (NRC) Q4 2025 Earnings Call Prepared Remarks Transcript
Unknown2-3
The earnings call presents a mixed picture. While there are positive aspects such as dividend increases and strategic growth initiatives, the revenue decline and TRCV attrition pose significant challenges. Despite strong execution in some areas, the financial health is impacted by declining revenue and increased expenses. The Q&A section does not provide additional clarity, suggesting uncertainty. Considering these factors, the stock price is likely to remain stable over the next two weeks, with a neutral sentiment prevailing.
National Research Corporation (NRC) Q3 2025 Earnings Call Prepared Remarks Transcript
Positive10-28
The earnings call highlights strong financial performance with 11% revenue growth, improved customer retention, and a significant increase in dividend payments. The strategic focus on technology modernization and cross-selling indicates robust future growth potential. Despite regulatory and competitive risks, the company's positive operational metrics and shareholder returns suggest a positive stock price movement.
National Research Corporation (NRC) Q1 2024 Earnings Call Transcript
Neutral5-11
NRC Report
Frequently Asked Questions
Where does this earnings call transcript come from?
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
How soon is the transcript available after the earnings call ends?
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
Is the transcript edited or altered in any way?
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
Why do some answers appear as “Unclear” or “Inaudible”?
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
Who creates the AI Summary and Key Q&A highlights shown above the transcript?
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
