National HealthCare (NHC) Q1 2026 earnings summary

Executive summary

• Net operating revenues for Q1 2026 increased 2.2% year-over-year to $381.8 million, driven by higher patient census and rate increases across payor types.

• GAAP net income attributable to stockholders rose to $35.9 million from $32.2 million, with adjusted net income up 21.1% to $30.1 million, excluding unrealized gains and share-based compensation.

• Average occupancy in skilled nursing facilities improved to 90.0% from 89.3% year-over-year.

• A $560 million acquisition of 32 skilled nursing and 3 independent living facilities was announced, expected to close in Q3 2026.

Financial highlights

• Net patient revenues increased 2.3% to $369.8 million; other revenues were $12.0 million.

• Salaries, wages, and benefits rose 3.0% to $235.1 million; other operating expenses decreased 1.3% to $91.2 million.

• Facility rent expense was $11.6 million; depreciation and amortization totaled $11.6 million.

• Non-operating income was $3.8 million, primarily from investment income.

• Diluted EPS was $2.27, up from $2.07 year-over-year.

Outlook and guidance

• Medicare per diem rates for skilled nursing increased 3.0% year-over-year; Medicaid per diem rose 3.7%.

• CMS finalized a 3.2% Medicare payment increase for FY2026 and proposed a 2.4% increase for FY2027, with potential case-mix adjustments.

• Management expects continued focus on occupancy, labor retention, and strategic partnerships to drive growth.