NRC Health Q3 2026 revenue rises 11% to $38.4M
Several long-standing customers renewed under multi-year agreements, and a large customer went live on schedule.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Rhea-AI Filing Summary
NRC Health reported third-quarter 2026 results, with revenue increasing 11% year over year to $38.4 million. Total Recurring Contract Value (TRCV), the annualized value of contracts in effect or contractually committed as of quarter-end and expected to be in force over the subsequent 12 months, was $154.1 million, up 9%.
GAAP net income was $4.704 million, versus $4.122 million a year earlier, and diluted GAAP earnings per share were $0.21 versus $0.18. Adjusted EBITDA was $10.868 million, versus $10.854 million; operating cash flow was $8.020 million versus $13.764 million, and free cash flow was $6.982 million versus $10.175 million. For the first nine months of 2026, GAAP net income was $4.643 million versus $9.802 million a year earlier.
At September 30, 2026, NRC Health reported total assets of $139.213 million, total liabilities of $148.335 million and shareholders’ equity of negative $9.122 million. The board declared a $0.16-per-share quarterly cash dividend payable January 8, 2027, to shareholders of record December 29, 2026.
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Positive
- Moderate pointRevenue increased 11% year over year to $38.4 million.
- Moderate pointGAAP net income was $4.704 million, versus $4.122 million a year earlier.
- Minor pointDiluted GAAP earnings per share were $0.21, versus $0.18 a year earlier.
Negative
- Moderate pointOperating cash flow was $8.020 million, versus $13.764 million a year earlier.
- Moderate pointNine-month GAAP net income was $4.643 million, versus $9.802 million in 2025.
- Minor pointFree cash flow was $6.982 million, versus $10.175 million a year earlier.
- Minor pointShareholders’ equity was negative $9.122 million at September 30, 2026.
Filing Explained
At September 30, 2026, 21,221,538 shares were outstanding versus 22,637,252 at December 31, 2025, alongside 15,983 thousand dollars of treasury-share repurchases in Q3.
This Form 8-K reports NRC Health's third-quarter results for the period ended
The release reports
Its cash-flow statement also lists
8-K Event Classification
Key Figures
Key Terms
Total Recurring Contract Value financial
Adjusted EBITDA financial
Free Cash Flow financial
Earnings Snapshot
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
How much revenue did NRC report in Q3 2026?
What dividend did NRC Health declare, and when is it payable?
What does NRC Health's TRCV measure?
AI-generated analysis. How Rhea-AI works. Not financial advice.
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
(Address of principal executive offices) | (Zip Code) |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
$.001 Par Value | The |
Item 2.02 | Results of Operations and Financial Condition. |
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On October 27, 2026, NRC Health, a Delaware corporation (the "Company"), issued a press release announcing its financial and operating results for the third quarter ended September 30, 2026. A copy of the press release is furnished as Exhibit 99.1 to this report and is incorporated by reference herein. |
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Item 9.01 | Financial Statements and Exhibits. |
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(d) | Exhibits. |
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EXHIBIT NUMBER | EXHIBIT DESCRIPTION |
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99.1 | NRC Health press release announcing its financial and operating results for the third quarter ended September 30, 2026. |
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104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). |
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The information contained in Items 2.02 and 9.01 of this report and the exhibits hereto shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or incorporated by reference in any filing under the Securities Act of 1933, as amended (the "Securities Act"), or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing. |
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The information in Items 2.02 and 9.01 of this report and the exhibits hereto may contain "forward-looking statements" within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act and such statements are subject to the safe harbor created by those sections and the Private Securities Litigation Reform Act of 1995, as amended. Such statements are made based on the current beliefs and expectations of the Company's management and are subject to significant risks and uncertainties. Actual results or events may differ from those anticipated by forward-looking statements. Please refer to the paragraph at the end of the attached press release and various disclosures by the Company in its press releases, stockholder reports, and filings with the Securities and Exchange Commission for information concerning risks, uncertainties, and other factors that may affect future results. |
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NRC HEALTH |
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(Registrant) | ||
Date: October 27, 2026 | By: | /s/ Trent S. Green |
Trent S. Green |
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Chief Executive Officer |
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Exhibit 99.1
| 1245 Q Street, Lincoln, NE 68508 P: 1 800 388 4264 | F: 402 475 9061 |
NRC HEALTH ANNOUNCES THIRD QUARTER 2026 RESULTS
Third quarter revenue increased 11% year-over-year to $38.4 million
Third quarter TRCV* increased 9% year-over-year to $154.1 million
LINCOLN, Nebraska, October 27, 2026 — NRC Health (NASDAQ: NRC), a leader in healthcare experience improvement solutions, today announced results for the third quarter 2026.
“We delivered a strong third quarter, with revenue up 11% year-over-year and sequential margin expansion,” said Trent Green, CEO of NRC Health. “Our large customer went live on schedule, and several long-standing customers renewed under multi-year agreements, reinforcing the durability of our recurring-revenue base. As our expanding contract base converts into revenue, the operating leverage inherent in our model will translate into greater profitability and free cash flow over time, reinforcing our confidence in NRC Health’s ability to create long-term shareholder value.”
Third Quarter 2026 Highlights
| ● | TRCV: Total Recurring Contract Value (TRCV)* was $154.1 million, up 9% year-over-year |
| ● | Revenue: Total revenue was $38.4 million for the three months ended September 30, 2026, up 11% from the prior year |
| ● | Net Income: GAAP Net Income and Adjusted Net Income* were $4.7 million, representing 12% of revenue |
| ● | Earnings Per Share: GAAP Earnings per Share and Adjusted Earnings per Share* were $0.21 on 22.0 million fully diluted shares |
| ● | Adjusted EBITDA: Adjusted EBITDA* was $10.9 million, representing 28% of revenue |
| ● | Cash Flow: Net cash flow from operating activities was $8.0 million, representing 21% of revenue; Free Cash Flow* was $7.0 million |
* These financial measures are defined below under the headings “Non-GAAP Financial Measures” and “Total Recurring Contract Value.” Reconciliations of the non-GAAP measures to their most closely comparable GAAP measures are included in the tables in this release.
Dividend Declaration
The Company’s Board of Directors on October 14, 2026, declared a quarterly cash dividend of $0.16 per share. The dividend will be payable on Friday, January 8, 2027, to shareholders of record as of the close of business on Tuesday, December 29, 2026.
NRC Health Announces Third Quarter 2026 Results
Page 2
October 27, 2026
Earnings Call Information
The company will be hosting a conference call to discuss the financial results on Tuesday, October 27, 2026, at 4:30 p.m. ET. A live webcast and replay of the call will be available on the NRC Health Investor Relations website at nrchealth.com/investor-relations.
About NRC Health
For more than 45 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 the patients, families, consumers, employees, and communities they serve on a human level. Guided by its uniquely empathic heritage, human-centered approach, unmatched national market research, and emphasis on consumer preferences, NRC Health is transforming the healthcare experience, creating strong outcomes across the healthcare journey. For more information, email info@nrchealth.com, or visit www.nrchealth.com.
Total Recurring Contract Value
Total Recurring Contract Value, or TRCV, is viewed by management as a leading indicator of our future revenue trends. It represents the total annualized contract value under customer contracts that are in effect or contractually committed as of the most recent quarter-end, based on contractual pricing and term provisions, and expected to be in force over the subsequent 12 months. TRCV is an operating metric and is not a measure of revenue recognized under U.S. GAAP.
Non-GAAP Financial Measures
In addition to consolidated GAAP financial measures, NRC Health reviews various non-GAAP financial measures that management believes to be important in the evaluation of its operating results and performance, including “Adjusted Net Income,” “Adjusted Earnings per Share,” “Adjusted EBITDA,” “Adjusted EBITDA Margin,” “Free Cash Flow,” and “Free Cash Flow Margin.” Reconciliations of GAAP to non-GAAP financial information are provided later in this release.
NRC Health believes Adjusted Net Income, Adjusted Earnings per Share, Adjusted EBITDA, and Adjusted EBITDA Margin are helpful supplemental measures to assist management and investors in evaluating the Company’s operating results as (i) they exclude certain items that are unusual in nature or whose fluctuation from period to period do not necessarily correspond to changes in the operations of NRC Health’s business, and (ii) the exclusion of non-cash stock compensation is useful for investors applying certain valuation metrics and is consistent with the leverage ratio for our credit facility.
Adjusted Net Income represents net income adjusted to add back management transition costs and non-cash stock compensation and the related tax. The income tax effect on non-GAAP adjustments is calculated by applying the Company's blended federal and state statutory rate to the deductible portion of each adjustment; amounts nondeductible under Section 162(m) of the Internal Revenue Code receive no tax effect. Adjusted EBITDA represents net income before interest, taxes, depreciation, amortization, management transition costs, and non-cash stock compensation items. Adjusted EBITDA Margin represents Adjusted EBITDA divided by our revenue.
NRC Health Announces Third Quarter 2026 Results
Page 3
October 27, 2026
Management transition costs, presented in the Company's prior earnings releases as "non-recurring executive compensation," consist of costs related to the Company's executive leadership transition. The caption was revised in the prior period to more accurately reflect the composition of these costs. For the nine months ended September 30, 2025, these costs consisted of bonuses tied to compensation arrangements for our new CEO and existing executive leaders. For the nine months ended September 30, 2026, these costs consist of bonuses paid to certain executives to cover anticipated tax obligations in connection with amendments to their 2025 equity awards, as previously disclosed, and approximately $270,000 of severance costs incurred in connection with team restructurings implemented by newly appointed executives.
NRC Health considers Free Cash Flow to be a measure that provides useful information to management and investors about our liquidity. Free Cash Flow does not represent residual cash flow available for discretionary expenditures. We define Free Cash Flow as net cash provided by operating activities less capital expenditures. Free Cash Flow Margin represents Free Cash Flow divided by our revenue.
There is no comprehensive, authoritative guidance for the presentation of such non-GAAP information, which is only meant to supplement GAAP results by providing additional information that management utilizes to assess performance.
Forward-Looking Statements
This press release contains certain statements that may be considered forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and such statements are subject to the safe harbor created by those sections and the Private Securities Litigation Reform Act of 1995, as amended. Such statements may be identified by their use of terms or phrases such as “believes,” “expect,” “focus,” “potential,” “will,” derivations thereof, and similar terms and phrases. Forward-looking statements are based upon the current beliefs and expectations of our management and are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified, which could cause future events and actual results to differ materially from those set forth in, contemplated by, or underlying the forward-looking statements, including those risks and uncertainties as set forth in the Risk Factors section of our Annual Report on Form 10-K for the year ended December 31, 2025, and various disclosures in our press releases, stockholder reports, and other filings with the Securities and Exchange Commission. We disclaim any obligation to update or revise any forward-looking statements to reflect actual results or changes in the factors affecting the forward-looking information.
Media Contact
marketing@nrchealth.com
Investor Contact
ir@nrchealth.com
NRC Health Announces Third Quarter 2026 Results
Page 4
October 27, 2026
NRC HEALTH
Condensed Consolidated Statements of Income
(In thousands except per share data, unaudited)
| | Three months ended | | | Nine months ended | |
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| | 2026 | | | 2025 | | | 2026 | | | 2025 | |
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| | | | | | | | | | | | | | | | |
Revenue | | $ | 38,399 | | | $ | 34,608 | | | $ | 108,594 | | | $ | 102,196 | |
| | | | | | | | | | | | | | | | |
Operating expenses: | | | | | | | | | | | | | | | | |
Direct | | | 15,378 | | | | 12,404 | | | | 42,588 | | | | 38,436 | |
Selling, general, and administrative | | | 12,045 | | | | 12,271 | | | | 48,409 | | | | 40,360 | |
Depreciation and amortization | | | 2,068 | | | | 2,195 | | | | 6,358 | | | | 5,479 | |
Total operating expenses | | | 29,491 | | | | 26,870 | | | | 97,355 | | | | 84,275 | |
| | | | | | | | | | | | | | | | |
Operating income | | | 8,908 | | | | 7,738 | | | | 11,239 | | | | 17,921 | |
| | | | | | | | | | | | | | | | |
Other income (expense): | | | | | | | | | | | | | | | | |
Interest income | | | 26 | | | | 41 | | | | 81 | | | | 82 | |
Interest expense | | | (1,532 | ) | | | (1,461 | ) | | | (4,108 | ) | | | (3,393 | ) |
Other, net | | | - | | | | (45 | ) | | | 32 | | | | (34 | ) |
Total other expense | | | (1,506 | ) | | | (1,465 | ) | | | (3,995 | ) | | | (3,345 | ) |
| | | | | | | | | | | | | | | | |
Income before income taxes | | | 7,402 | | | | 6,273 | | | | 7,244 | | | | 14,576 | |
| | | | | | | | | | | | | | | | |
Provision for income taxes | | | 2,698 | | | | 2,151 | | | | 2,601 | | | | 4,774 | |
| | | | | | | | | | | | | | | | |
Net income | | $ | 4,704 | | | $ | 4,122 | | | $ | 4,643 | | | $ | 9,802 | |
| | | | | | | | | | | | | | | | |
Earnings per share of common stock: | | | | | | | | | | | | | | | | |
Basic | | $ | 0.22 | | | $ | 0.18 | | | $ | 0.21 | | | $ | 0.43 | |
Diluted | | $ | 0.21 | | | $ | 0.18 | | | $ | 0.20 | | | $ | 0.43 | |
| | | | | | | | | | | | | | | | |
Weighted average shares and share equivalents outstanding: | | | | | | | | | | | | | | | | |
Basic | | | 21,724 | | | | 22,130 | | | | 21,844 | | | | 22,584 | |
Diluted | | | 21,887 | | | | 22,130 | | | | 22,022 | | | | 22,590 | |
NRC Health Announces Third Quarter 2026 Results
Page 5
October 27, 2026
NRC HEALTH
Condensed Consolidated Balance Sheets
(Dollars in thousands except share amounts and par value)
| | September 30, 2026 | | | December 31, 2025 | |
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| | (unaudited) | | | | | |
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Assets | | | | | | | | |
Current assets: | | | | | | | | |
Cash and cash equivalents | | $ | 3,626 | | | $ | 4,139 | |
Accounts receivable, net | | | 15,341 | | | | 11,108 | |
Other current assets | | | 7,743 | | | | 4,962 | |
Total current assets | | | 26,710 | | | | 20,209 | |
| | | | | | | | |
Property and equipment, net | | | 38,344 | | | | 40,474 | |
Goodwill | | | 66,152 | | | | 66,152 | |
Other, net | | | 8,007 | | | | 8,043 | |
Total assets | | $ | 139,213 | | | $ | 134,878 | |
| | | | | | | | |
Liabilities and Shareholders’ Equity | | | | | | | | |
Current liabilities: | | | | | | | | |
Current portion of notes payable, net of unamortized debt issuance costs | | $ | 4,767 | | | $ | 4,014 | |
Accounts payable and accrued expenses | | | 6,394 | | | | 4,066 | |
Accrued wages and bonuses | | | 6,676 | | | | 7,218 | |
Deferred revenue | | | 20,277 | | | | 16,201 | |
Dividends payable | | | 3,406 | | | | 3,625 | |
Other current liabilities | | | 325 | | | | 1,496 | |
Total current liabilities | | | 41,845 | | | | 36,620 | |
| | | | | | | | |
Notes payable, net of current portion and unamortized debt issuance costs | | | 98,133 | | | | 75,021 | |
Other non-current liabilities | | | 8,357 | | | | 9,247 | |
Total liabilities | | | 148,335 | | | | 120,888 | |
| | | | | | | | |
Shareholders’ equity: | | | | | | | | |
Preferred stock, $0.01 par value, authorized 2,000,000 shares, none issued | | | -- | | | | -- | |
Common stock, $0.001 par value; authorized 110,000,000 shares, issued 31,846,649 in 2026 and 31,966,504 in 2025, outstanding 21,221,538 in 2026 and 22,637,252 in 2025 | | | 32 | | | | 32 | |
Additional paid-in capital | | | 192,864 | | | | 183,880 | |
Accumulated deficit | | | (23,209 | ) | | | (17,298 | ) |
Treasury stock | | | (178,809 | ) | | | (152,624 | ) |
Total shareholders’ equity | | $ | (9,122 | ) | | $ | 13,990 | |
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Total liabilities and shareholders’ equity | | $ | 139,213 | | | $ | 134,878 | |
NRC Health Announces Third Quarter 2026 Results
Page 6
October 27, 2026
NRC HEALTH
Condensed Consolidated Statements of Cash Flows
(In thousands, unaudited)
| | Three months ended | | | Nine months ended | |
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| | 2026 | | | 2025 | | | 2026 | | | 2025 | |
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Cash flows from operating activities: | | | | | | | | | | | | | | | | |
Net income | | $ | 4,704 | | | $ | 4,122 | | | $ | 4,643 | | | $ | 9,802 | |
Adjustments to reconcile net income to net cash provided by operating activities: | | | | | | | | | | | | | | | | |
Depreciation and amortization | | | 2,068 | | | | 2,195 | | | | 6,358 | | | | 5,479 | |
Deferred income tax expense | | | (16 | ) | | | (49 | ) | | | (52 | ) | | | (80 | ) |
Change in uncertain tax positions | | | (150 | ) | | | (45 | ) | | | (154 | ) | | | 103 | |
Non-cash share-based compensation expense (benefit) | | | (135 | ) | | | 925 | | | | 8,844 | | | | 1,403 | |
Change in fair value of contingent consideration | | | - | | | | 49 | | | | - | | | | 131 | |
Loss on extinguishment of debt | | | - | | | | - | | | | - | | | | 67 | |
Amortization of debt issuance costs | | | 27 | | | | 28 | | | | 81 | | | | 75 | |
Net changes in assets and liabilities: | | | | | | | | | | | | | | | | |
Trade accounts receivable | | | (6,017 | ) | | | (332 | ) | | | (4,233 | ) | | | (1,694 | ) |
Prepaid expenses and other current and long-term assets | | | 1,184 | | | | 1,794 | | | | (113 | ) | | | (1,021 | ) |
Deferred contract costs, net | | | (651 | ) | | | (348 | ) | | | (1,084 | ) | | | (359 | ) |
Operating lease assets and liabilities, net | | | - | | | | 13 | | | | (31 | ) | | | (40 | ) |
Accounts payable | | | 68 | | | | (91 | ) | | | 291 | | | | 66 | |
Accrued expenses, wages, and bonuses | | | 1,977 | | | | 1,478 | | | | 968 | | | | 2,146 | |
Income taxes receivable and payable | | | 1.404 | | | | 1,896 | | | | (2,943 | ) | | | 1,246 | |
Deferred revenue | | | 3.557 | | | | 2,129 | | | | 4,011 | | | | 1,947 | |
Net cash provided by operating activities | | | 8,020 | | | | 13,764 | | | | 16,586 | | | | 19,271 | |
| | | | | | | | | | | | | | | | |
Cash flows from investing activities: | | | | | | | | | | | | | | | | |
Capital expenditures | | | (1,038 | ) | | | (3,589 | ) | | | (4,196 | ) | | | (9,585 | ) |
Net cash used in investing activities | | | (1,038 | ) | | | (3,589 | ) | | | (4,196 | ) | | | (9,585 | ) |
| | | | | | | | | | | | | | | | |
Cash flows from financing activities: | | | | | | | | | | | | | | | | |
Borrowings on notes payable | | | 15,000 | | | | - | | | | 15,000 | | | | 47,681 | |
Payments on notes payable | | | (1,155 | ) | | | (947 | ) | | | (3,216 | ) | | | (30,393 | ) |
Borrowings on revolving loan | | | 14,000 | | | | 5,000 | | | | 36,000 | | | | 33,000 | |
Payments on revolving loan | | | (15,000 | ) | | | (5,000 | ) | | | (24,000 | ) | | | (33,003 | ) |
Payment of debt issuance costs | | | - | | | | - | | | | - | | | | (135 | ) |
Payments on finance lease obligations | | | (2 | ) | | | (2 | ) | | | (7 | ) | | | (7 | ) |
Proceeds from the exercise of share-based awards | | | - | | | | - | | | | 139 | | | | 132 | |
Payment of acquisition contingent consideration | | | - | | | | (236 | ) | | | (484 | ) | | | (516 | ) |
Repurchase of shares for treasury | | | (15,983 | ) | | | (9,269 | ) | | | (25,561 | ) | | | (20,179 | ) |
Payment of dividends on common stock | | | (3,543 | ) | | | (2,776 | ) | | | (10,774 | ) | | | (8,280 | ) |
Net cash used in financing activities | | | (6,683 | ) | | | (13,230 | ) | | | (12,903 | ) | | | (11,700 | ) |
| | | | | | | | | | | | | | | | |
Change in cash and cash equivalents | | | 299 | | | | (3,055 | ) | | | (513 | ) | | | (2,014 | ) |
Cash and cash equivalents at beginning of period | | | 3,327 | | | | 5,274 | | | | 4,139 | | | | 4,233 | |
Cash and cash equivalents at end of period | | $ | 3,626 | | | $ | 2,219 | | | $ | 3,626 | | | $ | 2,219 | |
NRC Health Announces Third Quarter 2026 Results
Page 7
October 27, 2026
NRC HEALTH
Reconciliation of GAAP to Non-GAAP Financial Measures
(In thousands, except per share data, unaudited)
Adjusted Net Income and Adjusted Earnings per Share
| | Three months ended September 30, | | | Nine months ended September 30, | |
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| | 2026 | | | 2025 | | | 2026 | | | 2025 | |
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Net income | | $ | 4,704 | | | $ | 4,122 | | | $ | 4,643 | | | $ | 9,802 | |
Add back: | | | | | | | | | | | | | | | | |
Management transition costs1 | | | - | | | | - | | | | 3,160 | | | | 6,640 | |
Tax on management transition costs | | | - | | | | - | | | | (180 | ) | | | (468 | ) |
Non-cash stock compensation expense (benefit) | | | (134 | ) | | | 925 | | | | 8,844 | | | | 1,403 | |
Tax (expense) benefit on non-cash stock compensation | | | 93 | | | | (39 | ) | | | (378 | ) | | | (60 | ) |
Adjusted net income | | $ | 4,663 | | | $ | 5,008 | | | $ | 16,089 | | | $ | 17,317 | |
| | | | | | | | | | | | | | | | |
Earnings per share of common stock, diluted | | $ | 0.21 | | | $ | 0.18 | | | $ | 0.20 | | | $ | 0.43 | |
Weighted average shares and share equivalents outstanding, diluted | | | 21,887 | | | | 22,130 | | | | 22,022 | | | | 22,590 | |
| | | | | | | | | | | | | | | | |
Adjusted earnings per share of common stock, diluted | | $ | 0.21 | | | $ | 0.23 | | | $ | 0.73 | | | $ | 0.77 | |
Adjusted weighted average shares and share equivalents outstanding, diluted | | | 21,887 | | | | 22,130 | | | | 22,022 | | | | 22,590 | |
| 1) | See 'Non-GAAP Financial Measures' above for a description of the composition of management transition costs and the change from prior period presentation. |
NRC Health Announces Third Quarter 2026 Results
Page 8
October 27, 2026
NRC HEALTH
Reconciliation of GAAP to Non-GAAP Financial Measures, Continued
(In thousands, except per share data, unaudited)
Adjusted EBITDA and Adjusted EBITDA Margin
| | Three months ended September 30, | | | Nine months ended September 30, | |
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| | 2026 | | | 2025 | | | 2026 | | | 2025 | |
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Net income | | $ | 4,704 | | | $ | 4,122 | | | $ | 4,643 | | | $ | 9,802 | |
Add back: | | | | | | | | | | | | | | | | |
Depreciation and amortization | | | 2,068 | | | | 2,195 | | | | 6,358 | | | | 5,479 | |
Interest expense | | | 1,532 | | | | 1,461 | | | | 4,108 | | | | 3,393 | |
Income taxes | | | 2,698 | | | | 2,151 | | | | 2,601 | | | | 4,774 | |
Management transition costs1 | | | - | | | | - | | | | 3,160 | | | | 6,640 | |
Non-cash stock compensation expense (benefit) | | | (134 | ) | | | 925 | | | | 8,844 | | | | 1,403 | |
Adjusted EBITDA | | $ | 10,868 | | | $ | 10,854 | | | $ | 29,714 | | | $ | 31,491 | |
| | | | | | | | | | | | | | | | |
Net income margin | | | 12 | % | | | 12 | % | | | 4 | % | | | 10 | % |
Adjusted EBITDA margin | | | 28 | % | | | 31 | % | | | 27 | % | | | 31 | % |
| 1) | See 'Non-GAAP Financial Measures' above for a description of the composition of management transition costs and the change from prior period presentation. |
Free Cash Flow and Free Cash Flow Margin
| | Three months ended September 30, | | | Nine months ended September 30, | |
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| | 2026 | | | 2025 | | | 2026 | | | 2025 | |
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Net cash provided by operating activities | | $ | 8,020 | | | $ | 13,764 | | | $ | 16,586 | | | $ | 19,271 | |
Less: | | | | | | | | | | | | | | | | |
Capital expenditures | | | 1,038 | | | | 3,589 | | | | 4,196 | | | | 9,585 | |
Free cash flow | | $ | 6,982 | | | $ | 10,175 | | | $ | 12,390 | | | $ | 9,686 | |
| | | | | | | | | | | | | | | | |
Net cash provided by operating activities margin | | | 21 | % | | | 40 | % | | | 15 | % | | | 19 | % |
Free cash flow margin | | | 18 | % | | | 29 | % | | | 11 | % | | | 9 | % |