The TRCV acceleration (+13%) is a leading indicator for future revenue, but the sharp decline in operating margin (from 26% to 16%) warrants monitoring. Listen to the earnings call for commentary on SG&A investment and margin trajectory. The stock may react positively to the TRCV inflection but negatively to profit compression.
Price Chart
Executive Summary
NRC Health reported Q1 2026 revenue of $34.8M (+4% YoY), marking the first year-over-year revenue growth since 2023, but GAAP net income fell to $3.2M ($0.14 EPS) from $5.8M ($0.25 EPS) a year ago due to higher SG&A and interest costs. Total Recurring Contract Value (TRCV) accelerated to $152.1M (+13% YoY), and the company declared a $0.16 quarterly dividend. The mixed results show improving top-line momentum offset by margin compression.
Key Financial Metrics
Key Facts
- Q1 2026 revenue $34.8M, up 4% YoY from $33.6M
- GAAP diluted EPS $0.14 vs $0.25 in prior year; adjusted EPS $0.21 vs $0.26
- TRCV $152.1M, up 13% YoY and sixth consecutive sequential increase
- Operating income fell to $5.6M from $8.6M, margin 16% vs 26%
- Operating cash flow $7.2M (+8% YoY); free cash flow $5.3M (15% margin)
- Quarterly dividend of $0.16 per share declared, payable July 10, 2026
Financial Impact
Revenue growth of $1.2M YoY but net income decline of $2.6M; TRCV growth of $17.7M year-over-year indicates future subscription revenue expansion.
Risk Factors
- Sustained margin compression from higher SG&A and interest expense
- High debt levels (notes payable $78M) increase financial leverage
- Dependence on healthcare customer budgets; potential slowdown in contract signings
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001437749-26-013641 |
| Document: nrc20260424_8k.htm | 0001437749-26-013641 |
| Document: 0001437749-26-013641-index-headers.html | 0001437749-26-013641 |
| Document: 0001437749-26-013641-index.html | 0001437749-26-013641 |
| Document: 0001437749-26-013641.txt | 0001437749-26-013641 |
| 8-K Data (Synthetic) | 0001437749-26-013641 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 27, 2026 today | 8-K | $22.45 | awaiting T+60 | — | $22.45 (+0.00%) |
Oct 19, 2026 8d ago | 8-K | $20.47 | awaiting T+60 | — | $22.45 (+9.67%) |
Apr 28, 2026 26w ago | 10-K/A | $16.54 $21.04 | ▲ +27.21% | ▲ +23.10% | $22.45 (+35.73%) |
Apr 28, 2026 26w ago | 8-K | $16.54 $21.04 | ▲ +27.21% | ▲ +23.10% | $22.45 (+35.73%) |
Apr 20, 2026 27w ago | 8-K | $17.18 $21.94 | ▲ +27.71% | ▲ +20.81% | $22.45 (+30.68%) |
Mar 5, 2026 33w ago | 8-K | $13.91 $20.25 | ▲ +45.56% | ▲ +34.26% | $22.45 (+61.37%) |
US Market Status
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