National HealthCare (NHC) Q2 2025 earnings summary

Executive summary

• Net operating revenues and grant income rose 24.7% year-over-year for Q2 2025, driven by a 9.6% increase in same-facility revenues and the White Oak acquisition.

• GAAP net income attributable to stockholders was $23.7M for Q2 2025, down from $26.8M in Q2 2024, but adjusted net income rose 64.7% to $25.7M, excluding unrealized securities gains/losses and other non-GAAP items.

• Skilled nursing facility census averaged 89.4% for Q2 2025, up from 89.0% a year ago; per diem rates increased across all payor types.

• White Oak operations contributed $56.9M to net patient revenues and $37.6M to salaries and benefits in Q2 2025.

Financial highlights

• Q2 2025 net operating revenues: $374.9M (Q2 2024: $300.7M); six months ended June 30, 2025: $748.6M (2024: $597.8M).

• Q2 2025 net income attributable to stockholders: $23.7M (Q2 2024: $26.8M); six months: $55.9M (2024: $53.1M).

• Q2 2025 diluted EPS: $1.52 (Q2 2024: $1.73); six months: $3.59 (2024: $3.42).

• Adjusted net income for Q2 2025: $25.7M (Q2 2024: $15.6M); six months: $50.5M (2024: $31.0M).

• Salaries, wages, and benefits for Q2 2025: $226.5M, up 25.8% year-over-year; agency nurse staffing expense fell to $981K from $4.1M.

Outlook and guidance

• Medicare Part A payments to skilled nursing facilities to increase 3.2% for FY2026; Medicaid per diem rates in Tennessee and South Carolina to rise, adding $7.2M in annual revenue.

• CMS projects a 6.4% decrease in home health agency payments for FY2026; hospice payments to increase 2.4%.

• Management expects to meet short- and long-term liquidity needs through operating cash flows, cash on hand, and available credit.