Quarterly ResultMay 6, 2026, 11:47 AM
NRC Health Q1 Net Income Down 44% to $3.2M; Revenue Up 3.7%
AI Summary
NRC Health reported a significant decrease in net income for Q1 2026, falling 44% to $3.2 million, despite a 3.7% increase in revenue to $34.8 million. Operating income also declined by 35% due to increased operating expenses, including higher stock-based compensation and executive salary expenses. The company also disclosed a subsequent event where amendments to executive equity awards and related bonuses are expected to result in approximately $9.4 million in expenses during Q2 2026.
Key Highlights
- Net income decreased 44% to $3.2 million in Q1 2026 from $5.8 million in Q1 2025.
- Revenue increased 3.7% to $34.8 million in Q1 2026 from $33.6 million in Q1 2025.
- Basic EPS fell 44% to $0.14 in Q1 2026 from $0.25 in Q1 2025.
- Operating income decreased 35% to $5.6 million, with operating margin at 16% (down from 26%).
- Total Recurring Contract Value grew 13% to $152.1 million as of March 31, 2026.
- Selling, general, and administrative expenses rose 30% to $13.4 million, driven by higher stock-based compensation.
- Subsequent event: $9.4 million expense expected in Q2 2026 from executive equity award amendments and bonuses.
- Cash and cash equivalents were $2.5 million at March 31, 2026, down from $4.1 million at December 31, 2025.
Price Impact
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