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National Research
(NASDAQ:NRC)
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Rating:50Neutral
Price Target:
$22.50
▲(6.94% Upside)
Action:Reiterated
Date:07/29/26
The score is held back primarily by weakened financial performance—sharp margin compression and a materially more leveraged balance sheet—despite improving free cash flow. Technicals are a relative bright spot with the stock trading above key moving averages, but valuation is a notable headwind given the very high P/E even after accounting for the moderate dividend yield.
Positive Factors
Cash generation
Improving and positive TTM operating cash flow and a meaningful increase in free cash flow provide durable financial flexibility. Over the next 2–6 months this enhances the company's ability to service debt, fund product commercialization and go-to-market investments, and absorb short-term revenue variability without immediate capital raises.
Negative Factors
High leverage
Exceptionally high leverage driven by a very small equity base materially reduces financial flexibility and raises refinancing and covenant risks. Over months, elevated interest burdens and constrained capacity for M&A or large investments can limit strategic responses to competition or slow margin recovery, increasing downside risk in stress scenarios.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation
Improving and positive TTM operating cash flow and a meaningful increase in free cash flow provide durable financial flexibility. Over the next 2–6 months this enhances the company's ability to service debt, fund product commercialization and go-to-market investments, and absorb short-term revenue variability without immediate capital raises.
Read all positive factors
National Research (NRC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$439.69M
Dividend Yield3.08%
Average Volume (3M)102.91K
Price to Earnings (P/E)74.3
Beta (1Y)0.69
Revenue Growth-0.23%
EPS Growth-67.26%
CountryUS
Employees357
SectorHealthcare
Sector Strength45
IndustryMedical - Healthcare Information Services
Share Statistics
EPS (TTM)0.26
Shares Outstanding22,536,695
10 Day Avg. Volume100,181
30 Day Avg. Volume102,911
Financial Highlights & Ratios
PEG Ratio-0.72
Price to Book (P/B)30.03
Price to Sales (P/S)3.06
P/FCF Ratio26.69
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$26.00Price Target Upside23.57% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)0.34
Revenue Forecast (FY)$142.00M
National Research Business Overview & Revenue Model
Company Description
National Research Corporation (NRC) empowers healthcare organizations across the United States and Canada with data-driven analytics and actionable insights to enhance both patient and employee experiences. Through a comprehensive suite of subscri...
How the Company Makes Money
NRC Health primarily makes money by selling healthcare organizations access to its measurement and analytics offerings, typically delivered as ongoing programs rather than one-off products. Key revenue streams generally include: (1) recurring fees...
National Research Earnings Call Summary
Earnings Call Date:Feb 03, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Nov 03, 2026
Earnings Call Sentiment Positive
The call emphasized meaningful progress across leading indicators (TRCV +8%, new sales +86%, highest retention in 7+ years), strong profitability (29% adjusted EBITDA margin) and clear product/organizational momentum (Rounding TRCV nearly doubled, AI initiatives, strategic hires). The primary negatives were a 4% full-year revenue decline and lingering impacts from elevated TRCV attrition in H2 2024 that created tough comps and pressured 2025 revenue. Management framed the revenue weakness as largely cyclical and expectant of recovery in 2026 as TRCV converts to recognized revenue. Overall, positive operational and financial fundamentals outweigh the near-term revenue drag.Positive Updates
TRCV Growth and Predictability
Total recurring contract value (TRCV) reached $144.1M, up 8% year-over-year and 2% sequentially, marking the fifth consecutive quarter of sequential TRCV growth; 99% of revenue is recurring, reinforcing revenue visibility and predictability.
Negative Updates
Year-over-Year Revenue Decline
Full-year revenue for 2025 was $137.4M, down 4% versus 2024. Fourth-quarter revenue was $35.2M, down 5% year-over-year (though up 2% sequentially), reflecting near-term top-line pressure.
Read all updates
Q4-2025 Updates
Positive
Negative
TRCV Growth and Predictability
Total recurring contract value (TRCV) reached $144.1M, up 8% year-over-year and 2% sequentially, marking the fifth consecutive quarter of sequential TRCV growth; 99% of revenue is recurring, reinforcing revenue visibility and predictability.
Read all positive updates
Company Guidance
Management's guidance emphasized that revenue growth should resume in 2026 driven by TRCV, which rose 8% year‑over‑year to $144.1M (up 2% sequential) and is 99% recurring after five consecutive quarters of sequential TRCV growth; they cited go‑to‑market changes (full‑year new sales +86% YoY), Rounding TRCV nearly doubling in 2025, cross‑sell/enablement adoption, AI enhancements, retention upside (highest gross dollar retention in >7 years) and new‑logo opportunities as key catalysts. Financially, they pointed to FY2025 revenue of $137.4M (down 4% YoY) with adjusted EBITDA $40.2M (29% margin) and Q4 revenue $35.2M (down 5% YoY, +2% sequential), Q4 adjusted EBITDA $8.7M, adjusted EPS $0.93 for the year ($0.16 in Q4), durable free cash flow, and a $0.12 quarterly dividend—expecting margin expansion as revenue recovers and capital allocation via reinvestment, dividends, opportunistic buybacks and strategic M&A.National Research Financial Statement Overview
Summary
Income Statement
32
Negative
Balance Sheet
18
Very Negative
Cash Flow
62
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 140.00M | 137.39M | 143.06M | 148.58M | 151.57M | 147.95M |
| Gross Profit | 93.50M | 77.39M | 86.13M | 92.56M | 94.52M | 95.60M |
| EBITDA | 23.40M | 30.23M | 41.31M | 45.98M | 49.30M | 56.66M |
| Net Income | 5.86M | 11.60M | 24.78M | 30.97M | 31.80M | 37.47M |
Balance Sheet | ||||||
| Total Assets | 136.15M | 134.88M | 132.54M | 122.44M | 130.46M | 157.54M |
| Cash, Cash Equivalents and Short-Term Investments | 3.33M | 4.14M | 4.23M | 6.65M | 25.03M | 54.36M |
| Total Debt | 90.03M | 79.03M | 64.41M | 38.96M | 23.39M | 28.68M |
| Total Liabilities | 129.60M | 120.89M | 101.25M | 73.48M | 58.43M | 72.20M |
| Stockholders Equity | 6.55M | 13.99M | 31.28M | 48.95M | 72.03M | 85.34M |
Cash Flow | ||||||
| Free Cash Flow | 21.64M | 15.74M | 19.18M | 22.33M | 26.43M | 40.83M |
| Operating Cash Flow | 29.51M | 26.45M | 34.63M | 38.11M | 36.27M | 46.34M |
| Investing Cash Flow | -7.87M | -10.71M | -20.28M | -15.78M | -9.84M | -8.51M |
| Financing Cash Flow | -23.59M | -15.84M | -16.76M | -40.71M | -55.58M | -18.16M |
National Research Technical Analysis
Neutral
21.04
Price Trends
20.33
Negative
18.90
Positive
17.43
Positive
Market Momentum
-0.31
Positive
43.48
Neutral
28.51
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NRC, the sentiment is Neutral. The current price of 21.04 is above the 20-day moving average (MA) of 21.01, above the 50-day MA of 20.33, and above the 200-day MA of 17.43, indicating a neutral trend. The MACD of -0.31 indicates Positive momentum. The RSI at 43.48 is Neutral, neither overbought nor oversold. The STOCH value of 28.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for NRC.
National Research Risk Analysis
National Research disclosed 24 risk factors in its most recent earnings report. National Research reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
National Research Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $3.76B | 20.11 | 19.36% | ― | 13.05% | -12.34% | |
70 Outperform | $4.05B | 29.32 | 3.59% | ― | 19.23% | 44.44% | |
66 Neutral | $663.24M | 70.50 | 2.79% | ― | 14.05% | ― | |
52 Neutral | $154.44M | -0.56 | -99.78% | ― | -2.83% | -223.32% | |
52 Neutral | $98.08M | -0.42 | -67.07% | ― | -3.89% | 63.03% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
50 Neutral | $439.69M | 74.32 | 48.46% | 2.85% | -0.23% | -67.26% |
* Healthcare Sector Average
NRC
National Research
19.54
5.86
42.80%
PHR
Phreesia
11.49
-15.62
-57.62%
HCAT
Health Catalyst
2.39
-1.43
-37.43%
DOCS
Doximity
21.63
-36.50
-62.79%
DH
Definitive Healthcare Corp
0.67
-3.26
-83.03%
WAY
Waystar Holding Corp.
23.38
-10.61
-31.22%
National Research Corporate Events
Executive/Board ChangesRegulatory Filings and ComplianceShareholder Meetings
National Research Shareholders Approve Governance Reforms and Directors
Positive
Jun 29, 2026
At its June 23, 2026 annual meeting, National Research Corporation shareholders approved a series of governance changes, including eliminating certain supermajority voting requirements, removing restrictions on removing directors without cause, an...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.