NRC Health (NRC) Q2 2026 earnings summary

Executive summary

• Achieved 11% year-over-year growth in Total Recurring Contract Value (TRCV) to $151.9 million for Q2 2026, with 4% revenue growth, driven by diversified business momentum and product innovation.

• Experience TRCV grew in the mid-teens, and The Governance Institute posted its best bookings in seven years, with nearly 10% TRCV growth.

• Product investments, especially in AI-powered solutions, are enhancing differentiation and customer engagement.

• The sales organization redesign has deepened engagement and expanded strategic relationships across product lines.

• Continued commercialization of product innovations and robust go-to-market execution.

Financial highlights

• Q2 2026 revenue was $35.4 million, up 4% year-over-year, with a two-point headwind from an accounting change in reputation monitoring solutions.

• Adjusted EBITDA was $9.4 million, representing a 27% margin; Adjusted Net Income was $6.9 million, or 19% of revenue; Adjusted EPS was $0.31 per diluted share.

• Q2 2026 GAAP net loss was ($3.3) million, or (9%) of revenue; GAAP net loss per diluted share was ($0.15).

• Free cash flow for Q2 was $62,000, up $4.2 million year-over-year; net cash flow from operating activities was $1.4 million (4% of revenue).

• Adjusted metrics exclude accelerated vesting of stock and associated cash bonuses.

Outlook and guidance

• Expect margin expansion in the second half of 2026 as revenue reflects TRCV growth and robust bookings.

• Q3 revenue projected to increase sequentially, with adjusted EBITDA margin similar to the first half due to timing of the annual customer conference.

• Q4 anticipated to see EBITDA margin upside as revenue scales and operating expenses normalize.

• Effective tax rate expected to normalize to high 20s percent in 2027 and beyond.

• Management expects continued demand from healthcare organizations seeking experience improvement solutions.