National HealthCare Corporation (NYSE American: NHC), the nation's oldest publicly traded senior health care company, announced today net operating revenues for the quarter ended June 30, 2026 totaled $408,025,000 compared to $374,910,000 for the quarter ended June 30, 2025, an increase of 8.8%. The increase in net operating revenues for the second quarter of 2026 was primarily related to the June 1, 2026 acquisition of five skilled nursing facilities. The five skilled nursing facilities have 639 licensed skilled nursing beds in the states of Tennessee and South Carolina.

For the quarter ended June 30, 2026, the reported GAAP net income attributable to NHC was $40,319,000 compared to $23,722,000 for the same period in 2025. Excluding the unrealized gains in our marketable equity securities portfolio and other non-GAAP adjustments, adjusted net income for the quarter ended June 30, 2026 was $27,551,000 compared to $25,710,000 for the same period in 2025, a 7.2% increase ^(*). The GAAP diluted earnings per share were $2.54 and $1.52 for the quarters ending June 30, 2026 and 2025, respectively. Adjusted diluted earnings per share were $1.74 and $1.65 for the quarters ending June 30, 2026 and 2025, respectively ^(*).

(*) - See the tables below that provide a reconciliation of GAAP to non-GAAP items.

About NHC

As of August 1, 2026, NHC affiliates operate for themselves and third parties 80 skilled nursing facilities with 10,323 beds. NHC affiliates also operate 26 assisted living communities with 1,413 units, nine independent living communities with 775 units, three behavioral health hospitals, 34 homecare agencies, and 33 hospice agencies. NHC’s other services include Alzheimer’s and memory care units, pharmacy services, a rehabilitation services company, and providing management and accounting services to third party post-acute operators. Other information about the company can be found on our web site at www.nhccare.com.

Non-GAAP Financial Presentation

The Company is providing certain non-GAAP financial measures as the Company believes that these figures are helpful in allowing investors to more accurately assess the ongoing nature of the Company’s operations and measure the Company’s performance more consistently across periods. Therefore, the Company believes this information is meaningful in addition to the information contained in the GAAP presentation of financial information. The presentation of this additional non-GAAP financial information is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP.

Forward-Looking Statements

Statements in this press release that are not historical facts are forward-looking statements. NHC cautions investors that any forward-looking statements made involve risks and uncertainties and are not guarantees of future performance. The risks and uncertainties are detailed from time to time in reports filed by NHC with the S.E.C., including Forms 8-K, 10-Q, and 10-K. All forward-looking statements represent NHC’s best judgment as of the date of this release.

Consolidated Statements of Operations
(in thousands, except share and per share amounts)
			Three Months Ended						Six Months Ended
			June 30						June 30
			2026			2025			2026			2025
			(unaudited)						(unaudited)
Revenues:
	Net patient revenues		$	378,359		$	363,349		$	748,164		$	724,956
	Other revenues			29,666			11,561			41,682			23,651
		Net operating revenues		408,025			374,910			789,846			748,607

Costs and expenses:
	Salaries, wages and benefits			241,902			226,534			476,976			454,664
	Other operating			94,475			91,943			185,712			184,400
	Facility rent			11,540			11,328			23,183			22,693
	Depreciation and amortization			11,173			11,015			22,787			21,993
		Total costs and expenses		359,090			340,820			708,658			683,750

Income from operations				48,935			34,090			81,188			64,857

Non-operating income				4,172			5,132			7,929			9,211
Interest expense				(13	)		(1,993	)		(282	)		(4,099	)
Unrealized gains/(losses) on marketable equity securities				915			(5,061	)		9,989			5,921

Income before income taxes				54,009			32,168			98,824			75,890
Income tax provision				(13,472	)		(8,055	)		(22,184	)		(19,487	)
Net income				40,537			24,113			76,640			56,403

Net income attributable to noncontrolling interest				(218	)		(391	)		(464	)		(476	)

Net income attributable to National HealthCare Corporation			$	40,319		$	23,722		$	76,176		$	55,927

Net income per common share
	Basic		$	2.58		$	1.53		$	4.89		$	3.62
	Diluted		$	2.54		$	1.52		$	4.82		$	3.59

Weighted average common shares outstanding
	Basic			15,617,655			15,462,135			15,579,854			15,450,286
	Diluted			15,864,329			15,599,538			15,817,646			15,587,783

Dividends declared per common share			$	0.67		$	0.64		$	1.31		$	1.25


	Balance Sheet Data		June 30			December 31
	(in thousands)			2026			2025
			(unaudited)

	Cash, cash equivalents and marketable securities		$	210,190		$	255,801
	Restricted cash, cash equivalents and marketable securities			151,833			159,848
	Current assets			439,602			461,820
	Property and equipment, net			726,768			673,797
	Total assets			1,536,930			1,526,419
	Current liabilities			236,112			246,132
	Current and long-term debt			-			40,000
	NHC stockholders' equity			1,122,302			1,068,772

Selected Operating Statistics
	Three Months Ended						Six Months Ended
	June 30						June 30
		2026			2025			2026			2025
	(unaudited)						(unaudited)
Skilled Nursing Per Diems:
Medicare	$	628.12		$	614.85		$	629.32		$	613.47
Managed Care		500.15			486.17			503.52			489.30
Medicaid		290.12			286.43			291.15			284.07
Private Pay and Other		351.83			341.34			350.90			339.24

Average Skilled Nursing Per Diem	$	366.88		$	361.42		$	369.24		$	360.78

Skilled Nursing Patient Days:
Medicare		78,137			83,615			162,177			169,869
Managed Care		87,782			83,015			171,158			166,661
Medicaid		378,010			368,687			740,303			732,329
Private Pay and Other		205,794			194,202			400,541			378,796

Total Skilled Nursing Patient Days		749,723			729,519			1,474,179			1,447,655



The tables below provide reconciliations of GAAP to non-GAAP items (in thousands, except per share amounts):

	Three Months Ended						Six Months Ended
	June 30						June 30
		2026			2025			2026			2025
	(unaudited)						(unaudited)

Net income attributable to National Healthcare Corporation	$	40,319		$	23,722		$	76,176		$	55,927
Non-GAAP adjustments
Unrealized gains on marketable equity securities		(915	)		5,061			(9,989	)		(5,921	)
Stock-based compensation expense		1,986			1,232			3,266			2,260
National management fee revenue from prior periods		(18,325	)		-			(18,325	)		-
Gain on sale of property and equipment		-			(3,606	)		-			(3,606	)
Income tax provision on non-GAAP adjustments		4,486			(699	)		6,512			1,889
Non-GAAP Net income	$	27,551		$	25,710		$	57,640		$	50,549

GAAP diluted earnings per share	$	2.54		$	1.52		$	4.82		$	3.59
Non-GAAP adjustments
Unrealized gains on marketable equity securities		(0.06	)		0.32			(0.63	)		(0.38	)
Stock-based compensation expense		0.13			0.08			0.20			0.14
National management fee revenue from prior periods		(1.15	)		-			(1.15	)		-
Gain on sale of property and equipment		-			(0.23	)		-			(0.23	)
Income tax provision on non-GAAP adjustments		0.28			(0.04	)		0.40			0.12
Non-GAAP diluted earnings per share	$	1.74		$	1.65		$	3.64		$	3.24

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Brian F. Kidd, SVP/CFO

Phone: (615) 890-2020