National Research (NRC) Q2 2025 earnings summary

Executive summary

• Achieved third consecutive quarter of sequential TRCV growth, with a 2% increase, the highest rate since early 2021, driven by improved sales, cross-sells, and customer retention.

• Revenue for Q2 2025 decreased 3% year-over-year to $34.0 million, mainly due to lower recurring revenue from existing clients, partially offset by new client growth.

• Net loss for Q2 2025 was $0.1 million, compared to net income of $6.2 million in Q2 2024, primarily due to $6.6 million in executive cash bonuses and increased non-cash share-based compensation.

• Trent Green was appointed CEO effective June 1, 2025, with the former CEO transitioning to Chairman, and a search for a new CFO is ongoing.

• The company leverages its data-driven platform and healthcare expertise to help health systems improve patient experience, staff retention, and value-based care outcomes.

Financial highlights

• Adjusted EBITDA margin remained strong at 30% for Q2 2025, reflecting disciplined cost management and stable year-over-year performance.

• Six-month revenue declined 4% year-over-year to $67.6 million, with TRCV at June 30, 2025 at $137.0 million, down from $138.4 million a year earlier.

• Operating income dropped to $1.6 million from $8.9 million, primarily due to executive compensation charges.

• Cash provided by operating activities for the first half of 2025 was $5.5 million, down from $18.8 million in 2024.

• Adjusted net income for Q2 2025 was $6.4 million, with adjusted diluted EPS of $0.28, up from $0.26 in Q2 2024.

Outlook and guidance

• Management expects operating income and margin to improve in the near term, excluding executive compensation charges, and will provide more strategic details in the next quarter.

• Selling, general, and administrative expenses are projected to rise in Q3 2025 due to ongoing executive compensation and new CEO costs.

• Depreciation and amortization are expected to increase with continued investments in software and facilities.

• TRCV growth is seen as an early indicator of a return to top-line growth.

• Management reinstated quarterly earnings calls to provide further context.