Shares of National Research Corporation (NRC Quick QuoteNRC - Free Report) , doing business as NRC Health, have surged 12.3% since the company reported earnings for the quarter ended Sept. 30, 2025, outperforming the S&P 500 index’s 1.5% growth over the same period. Over the past month, NRC stock has risen 4.8%, again outpacing the S&P 500’s 3% advance, signaling growing investor confidence in the company’s recent performance and strategic direction.

For the third quarter of 2025, NRC Health reported adjusted net income of 23 cents per share, down from 25 cents per share a year ago.

Total revenues of $34.6 million represented a fall from $35.8 million in the prior-year period. 

Despite the modest revenue dip year over year, the company posted strong profitability metrics. GAAP net income came in at $4.1 million compared to $5.7 million in the third quarter of 2024.

Adjusted net income stood at $5 million, versus $5.8 million a year ago.

Adjusted EBITDA for the quarter was $10.9 million, up 11% from $9.7 million in the year-ago quarter, with the adjusted EBITDA margin improving to 31.4% from 27.2%. These results suggest that while top-line growth was subdued, NRC delivered margin expansion through cost efficiencies and improved operational execution.

National Research Corporation Price, Consensus and EPS Surprise

National Research Corporation price-consensus-eps-surprise-chart | National Research Corporation Quote

Key Business Metrics

A standout metric in the quarter was Total Recurring Contract Value (TRCV), which rose 8% year over year to $141.7 million. This marked the fourth consecutive quarter of sequential growth in TRCV, reinforcing the company’s strong subscription-based revenue model. Management attributed this growth to higher customer retention and strong new sales momentum.

Cash flow from operations also demonstrated robust improvement, jumping 46% year over year to $13.8 million, which represented 40% of total revenues. The company’s ability to convert earnings into cash was a highlight for the quarter, providing ample room for reinvestment and capital return initiatives.

Management Commentary

CEO Trent Green emphasized the strength of NRC’s customer relationships and the increasing reliance by healthcare systems on the company’s solutions. Green also highlighted the firm’s commitment to delivering continuous improvement through “authentic partnership” and “exceptional service.”

Drivers Behind Performance

Despite the year-over-year decline in revenues and GAAP net income, NRC achieved notable gains in profitability metrics such as adjusted EBITDA and cash flow. This appears to have been driven by a combination of reduced direct operating costs (down nearly 19% to $12.4 million from $15.3 million) and operational discipline in managing SG&A expenses, which increased modestly to $12.3 million.

Additionally, non-cash stock compensation increased to $1 million from $0.2 million, and depreciation and amortization expenses were up year over year, likely reflecting prior investments in infrastructure or technology. Interest expense nearly doubled, rising from $0.7 million to $1.5 million, which partially offset operating gains.

Shareholder Returns

The company demonstrated its commitment to shareholder returns by repurchasing 618,264 shares during the quarter at an average price of $14.99, contributing to a total of $28.1 million returned to shareholders through dividends and buybacks in 2025. Reflecting confidence in future cash flows, NRC also raised its quarterly dividend by 33%, from 12 cents to 16 cents per share, payable in January 2026.