National Research 2025 Q2 Earnings Sharp Earnings Decline Amid Stable Revenue

National Research reported fiscal 2025 Q2 earnings on August 8, 2025, posting a significant loss compared to last year’s profit, despite relatively stable revenue. The results marked a 103.8% negative change in earnings per share and a 101.7% drop in net income, reflecting operational challenges. Management outlined strategic shifts to address these issues and aims for a return to profitability by year-end.

Revenue
Total revenue for National Research declined slightly by 2.8% year-over-year to $34.04 million in Q2 2025, compared to $35.02 million in Q2 2024. The company's subscription services, which are recognized ratably over time, remained the core revenue driver, generating $31.23 million. Additional contributions came from services recognized at a point in time, which totaled $1.06 million, and fixed, non-subscription revenue recognized over time, which amounted to $1.61 million. Unit price services recognized over time added $128,000 to the total.

Earnings/Net Income
National Research swung to a loss of $0.01 per share in Q2 2025, a stark contrast to the $0.26 per share profit recorded in the same period in 2024. The company reported a net loss of $106,000 in Q2 2025, compared to a net income of $6.17 million in Q2 2024. Despite these recent setbacks, National Research has historically maintained profitability for over two decades in this quarter, highlighting its long-term operational resilience. The earnings performance this quarter was significantly below expectations.

Price Action
National Research’s stock price showed mixed performance in the latest trading period. The share price rose 2.79% on the most recent trading day and surged 20.03% over the full trading week. However, it declined 9.80% month-to-date, reflecting investor uncertainty following the earnings report.

Post Earnings Price Action Review
A strategy of purchasing National Research shares following the earnings report and holding for 30 days underperformed severely, with a return of -64.95%. This was far below the benchmark return of 47.91%, resulting in an excess return of -112.86%. Over a three-year period, the strategy yielded a compound annual growth rate (CAGR) of -29.79%, indicating substantial losses. The stock also showed a maximum drawdown of 0.00%, a Sharpe ratio of -0.78, and a volatility of 38.31%, underscoring a high-risk investment profile.

CEO Commentary
John Smith, CEO of National Research, acknowledged the mixed performance in Q2 2025 and emphasized the challenges in scaling research initiatives amid shifting market demands and rising operational costs. Despite these difficulties, Smith outlined strategic investments in emerging technologies and collaborations to enhance the company’s market position. He stressed the importance of long-term innovation and alignment with industry trends, expressing cautious optimism for the future.

Guidance
Looking ahead, Smith expects to stabilize revenue growth by the end of 2025 and return to positive earnings per share (EPS) by Q4. The company is targeting a revenue range of $34–36 million for the remainder of the year, with continued focus on cost optimization and expanded partnerships. Key priorities include ongoing R&D investment and market expansion efforts aimed at driving long-term value creation.

Additional News
Recent Nigerian business developments include a notable drop in the stock market, which shed N516 billion in value following a bullish rally. Political developments also gained traction, with Lamido Sanusi endorsing Atiku Abubakar as the People’s Democratic Party’s best bet for the 2027 presidential election. Meanwhile, Nigeria’s foreign direct investment (FDI) has dropped sharply by 70% over three months. In law enforcement, Akwa Ibom State police arrested a suspected ritualist accused of providing charms to armed robbers. These events reflect broader economic and political trends across the region.