National Research Corporation, dba NRC Health, (NASDAQ:NRC) today announced results for the first quarter 2025 and other corporate developments.

Highlights:

Total Recurring Value Contract Value Increases Sequentially
Sales Force Expansion Accelerates
New Share Repurchase Program Announced
Operating Expenses Decline
Dividend Declared

Overview

Michael D. Hays, Chief Executive Officer of NRC Health, commented on the Company's performance and recent developments:

"The key milestone this quarter was a second consecutive quarter of sequential increase in total recurring contract value, which remains the leading indicator of revenue growth. This progress reflects the rebuilding of our sales force - never a quick process, but one that is already delivering results. We are seeing meaningful increases in our pipeline, win rates, and overall sales. Building on this momentum, we are now aggressively accelerating our sales force expansion plans to fully capitalize on our broader product offerings and a differentiated message that sets NRC Health apart in the marketplace."

Hays continued, "I would also like to recognize Helen Hrdy, our Chief Operating Officer, for her relentless focus on driving organizational efficiencies. Her leadership continues to be instrumental in enhancing our ability to invest in future growth while delivering strong returns to shareholders through share repurchases and dividends."

Hays concluded, "Finally, I welcome the opportunity to personally introduce you to Trent Green, who will be joining us as our incoming CEO in June. Introductory calls are available on June 9 and 10, 2025 and can be arranged by contacting MBachman@NRCHealth.com."

Dividends and Share Repurchase

The Company's Board of Directors on April 25, 2025, declared a quarterly cash dividend of $0.12 (twelve cents) per share payable Friday, July 11, 2025, to shareholders of record as of the close of business on Friday, June 27, 2025.

During the first quarter, the Company completed its prior share repurchase program adopted in 2022. On April 25, 2025, the Company's Board of Directors approved repurchasing up to one million additional shares of its common stock.

About NRC Health

For more than 40 years, NRC Health's (NASDAQ:NRC) commitment to Human Understanding® helps leading healthcare systems know each patient, caregivers, employees, and the communities they serve not as point-in-time insights, but to personalize an ongoing relationship at scale. For more information, email info@nrchealth.com, or visit www.nrchealth.com.

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. In this press release, the statements related to future dividends, share repurchases, and revenue are forward-looking statements. 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, 2024, 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.




NATIONAL RESEARCH CORPORATION AND SUBSIDIARY Unaudited Condensed Consolidated Statements of Income (In thousands, except per share data)

	Three months ended March 31,
		2025			2024

Revenue	$	33,551		$	35,313

Operating expenses:
Direct		13,057			13,856
Selling, general and administrative		10,356			11,250
Depreciation and amortization		1,542			1,447
Total operating expenses		24,955			26,553

Operating income		8,596			8,706

Other income (expense):
Interest income		19			44
Interest expense		(899	)		(605	)
Other, net		7			(5	)

Total other income (expense)		(873	)		(566	)

Income before income taxes		7,723			8,194

Provision for income taxes		1,936			1,835

Net income	$	5,787		$	6,359

Earnings Per Share of Common Stock:
Basic Earnings Per Share	$	0.25		$	0.27
Diluted Earnings Per Share	$	0.25		$	0.27

Weighted average shares and share equivalents outstanding
Basic		22,972			23,868
Diluted		22,974			23,963





NATIONAL RESEARCH CORPORATION AND SUBSIDIARY Unaudited Condensed Consolidated Balance Sheets (Dollars in thousands, except share amounts and par value)

	March 31, 2025			December 31, 2024
Assets
Current assets:
Cash and cash equivalents	$	2,502		$	4,233
Accounts receivable, net		11,326			11,054
Other current assets		6,574			4,313
Total current assets		20,402			19,600

Property and equipment, net		40,390			38,269
Goodwill		66,152			66,152
Other, net		8,231			8,518
Total assets	$	135,175		$	132,539

Liabilities and Shareholders' Equity
Current liabilities:
Current portion of notes payable, net of unamortized debt issuance costs	$	3,036		$	4,789
Line of credit		3,500			--
Accounts payable and accrued expenses		6,743			6,285
Accrued compensation		4,915			4,774
Deferred revenue		15,507			15,786
Dividends payable		2,735			2,770
Other current liabilities		1,338			1,454
Total current liabilities		37,774			35,858

Notes payable, net of current portion and unamortized debt issuance costs		58,669			57,895
Other non-current liabilities		9,060			7,502
Total liabilities		105,503			101,255

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 31,082,158 in 2025 and 31,072,144 in 2024, outstanding 22,785,421 in 2025 and 23,083,116 in 2024		31			31
Additional paid-in capital		180,552			180,249
Retained earnings (accumulated deficit)		(14,012	)		(17,064	)
Treasury stock		(136,899	)		(131,932	)
Total shareholders' equity	$	29,672		$	31,284
Total liabilities and shareholders' equity	$	135,175		$	132,539

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Michelle Bachman

402-475-2525

NRC Health Announces First Quarter Results