National Research Corporation (NRC Health) reported a decline in financial performance for the third quarter of 2025, with revenues totaling $34.6 million, a decrease of 3% from $35.8 million in the same period last year. For the nine months ending September 30, 2025, total revenue was $102.2 million, down 4% from $106.2 million in 2024. The company attributed the revenue decline primarily to a $5 million drop in recurring revenue from existing clients, partially offset by a $1.1 million increase from new clients. Operating income for the third quarter was $7.7 million, slightly lower than the $8.0 million reported in the prior year, while net income fell to $4.1 million from $5.7 million.
In terms of operational metrics, NRC Health's Total Recurring Contract Value (TRCV) increased to $141.7 million as of September 30, 2025, compared to $131.6 million a year earlier, indicating growth in new subscription product sales despite some customer losses. The company also reported a decrease in direct expenses, which fell by 19% to $12.4 million, largely due to reduced conference costs and workforce reductions implemented in late 2024. However, selling, general, and administrative expenses rose by 12% to $12.3 million, driven by increased salaries and benefits for executives.
Strategically, NRC Health has made significant organizational changes, including the appointment of Shane Harrison as Executive Vice President and Chief Financial Officer, effective September 29, 2025. This leadership change is expected to enhance the company's financial strategy and operations. The company has also been active in share repurchase activities, having repurchased 618,264 shares for approximately $9.3 million during the third quarter under its newly authorized stock repurchase program.
On the balance sheet, NRC Health reported total assets of $135.7 million as of September 30, 2025, up from $132.5 million at the end of 2024. However, total liabilities increased significantly to $121.4 million, compared to $101.3 million at the end of the previous year, primarily due to higher borrowings under its Delayed Draw Term Loan. The company’s cash and cash equivalents decreased to $2.2 million from $4.2 million, reflecting cash used for share repurchases and capital expenditures.
Looking ahead, NRC Health anticipates that sustained growth in TRCV will lead to revenue growth in the coming quarters, although it remains cautious about potential impacts from market conditions and client retention. The company continues to focus on innovation and strategic investments to enhance its service offerings and maintain competitive positioning in the healthcare analytics market.
About NATIONAL RESEARCH CORP
NRC Health specializes in human-centered healthcare experience management, offering AI-enabled solutions across patient, consumer, employee, and market insights. Its services include feedback collection, performance analysis, reputation management, and strategic consulting for healthcare providers and organizations. Focused exclusively on healthcare, NRC Health leverages long-term client relationships, subscription-based models, and industry expertise to enhance care quality, loyalty, and operational efficiency.
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