National Research Q4 Earnings Call Highlights

04 Feb 2026, 01:08 by Sarita Garza · The Markets Daily

National Research (NASDAQ:NRC) executives pointed to improving sales momentum and recurring contract value growth during the company’s fourth-quarter earnings call, while acknowledging year-over-year revenue pressure tied to elevated attrition experienced in 2024.

Fourth-quarter results

For the fourth quarter ended Dec. 31, 2025, NRC Health reported revenue of $35.2 million, which CFO Shane Harrison said was down 5% year-over-year but up 2% sequentially from the third quarter. Harrison attributed the difficult year-over-year comparison to “unusually heavy” Total Recurring Contract Value (TRCV) attrition in the third quarter of 2024 that continued to flow through revenue recognition in the fourth quarter of 2024.

Adjusted EBITDA for the quarter was $8.7 million. Harrison noted operating expenses were higher than the prior year due to timing of the company’s annual customer conference, the Human Understanding Beyond (HUB) Conference, which was held in the fourth quarter this year versus the third quarter last year.

Adjusted net income for the quarter was $3.4 million, with adjusted earnings per share of $0.16. The company also paid a quarterly dividend of $0.12 per share.

TRCV growth and sales execution

Management emphasized TRCV as a key indicator given the company’s high recurring revenue mix. CEO Trent Green said 99% of revenue is recurring and described TRCV as a “reliable and predictable indicator” of revenue expected to be recognized over the next 12 months.

TRCV reached $144.1 million in the fourth quarter, up 8% year-over-year and 2% sequentially, marking the fifth consecutive quarter of sequential TRCV growth. Green said the increase reflected execution across sales, customer success, and product teams.

Among the drivers, Green highlighted a sales team reorganization and refined coverage model. He said full-year new sales increased 86% year-over-year, which he attributed to a selling approach that more closely mirrors how health systems are structured and how decisions are made, enabling engagement at multiple levels and supporting “larger, more strategic relationships.”

Green also said customer success efforts improved the “quality, depth, and consistency” of engagement, contributing to the highest gross dollar retention rate the company has seen in more than seven years.

Portfolio positioning and product priorities

Green reiterated NRC Health’s customer value proposition as built on three pillars: actionable insights, deep partnership and engagement, and enablement tools that help providers turn insight into action. He framed NRC Health’s differentiation around trust, expertise, and breadth of portfolio.

On trust, Green said the company serves 74% of the top 100 health systems in the U.S. and has invested in data security and compliance, including HITRUST certification. He also cited a Net Promoter Score of 68, which he attributed to the company’s customer success model.

On portfolio breadth, Green said the company has seven products spanning four categories:

Experience solutions, including patient experience, employee experience, reputation management, and care transitions.
Enablement solutions, focused on operationalizing insights through workflows and real-time guidance.
Strategic insight solutions, including Market Insights and Community Insights, supported by surveying more than 300,000 consumers annually.
Governance solutions through the Governance Institute, aimed at supporting boards and executive leadership teams.

Green said the company’s approach creates an “insights, engagement, enablement flywheel,” capturing insights, translating them into strategy, and enabling action through tools and best practices intended to deliver measurable ROI.

Growth catalysts outlined for 2026

Looking ahead, Green outlined several growth catalysts he expects to support performance through 2026, including:

Continued benefit from the go-to-market restructure as it scales.
Expanded adoption of enablement solutions, including momentum in the company’s Rounding offering, which Green said is fully integrated and saw TRCV nearly double in 2025.
Product innovation, including the use of AI for sentiment analysis and comment summarization as part of AI-enabled compliment and service recovery capabilities, as well as a beta release of an AI-powered listening capability within Rounding.
Cross-sell opportunities across enablement, strategic insights, and governance.
Further retention improvement as 2025 customer success initiatives are “hardened.”
New logo growth driven by the company’s “differentiated data assets and insights,” potentially reaching new buyers and markets beyond its historical footprint.

Green also noted a leadership addition: David Burik joined in early January to lead strategic insights and governance strategy. Green said Burik brings more than 30 years of healthcare consulting experience and previously led the Guidehouse Center for Health Insights.

Full-year performance and capital allocation

For full-year 2025, NRC Health reported revenue of $137.4 million, down 4% from 2024. Harrison said the decline was expected based on 2024 TRCV performance, particularly elevated attrition in the second half of that year. With TRCV up 8% in 2025, Harrison said management is confident revenue growth will follow in 2026.

Adjusted EBITDA for the year was $40.2 million, representing a 29% margin. Harrison said the company maintained its margin profile despite lower revenue, citing disciplined cost management while funding growth initiatives. Adjusted net income was $20.7 million and adjusted EPS was $0.93.

Harrison also described the company’s capital allocation framework, including investment in technology and talent, returning capital via dividends and opportunistic share repurchases, and maintaining flexibility for “highly strategic, accretive acquisitions” that could expand the addressable market and create value through operational efficiencies and integration synergies.

In closing remarks, Green said the company’s momentum in customer growth, retention, team building, and financial execution supports confidence going into 2026.

About National Research (NASDAQ:NRC)

National Research Corp (NASDAQ: NRC), also known as NRC Health, is a healthcare analytics and performance improvement company specializing in patient and employee experience measurement. The company’s cloud-based platform enables healthcare providers to collect real-time feedback through patient satisfaction surveys, post-discharge outreach, and employee engagement tools. NRC Health integrates clinical, operational and financial data to deliver actionable insights that support quality improvement initiatives and value-based care programs.

Since its founding in the early 1990s and headquartered in Lincoln, Nebraska, National Research has expanded beyond its regional roots to serve more than 1,600 hospitals and 12,000 care sites across the United States and Canada.