NRC · National Research Corporation

NRC Health reported first quarter 2026 results with total revenue of $34.8 million, up 4% year-over-year, marking the first quarter of revenue growth since 2023. The growth was driven by a 13% increase in Total Recurring Contract Value (TRCV) to a record $152.1 million, which management views as a leading indicator of future revenue. The company signed its largest deal in its 45-year history and achieved multi-year highs in new sales and customer retention. However, GAAP net income declined to $3.2 million from $5.8 million in the prior year, primarily due to a significant increase in selling, general, and administrative expenses (from $10.4 million to $13.4 million) and higher depreciation and amortization. Adjusted net income was $4.6 million, down from $5.9 million, and adjusted EBITDA margin contracted to 27.0% from 30.8%. Cash flow from operations improved 8% to $7.2 million, and free cash flow rose to $5.4 million from $3.7 million. The company declared a quarterly dividend of $0.16 per share, payable July 10, 2026. Management commentary highlighted strong momentum and a strategic shift from measurement partner to outcomes driver, though the earnings decline and margin compression warrant investor attention.