National Research 2025 Q3 Earnings Net Income Falls 27.5% Amid Revenue Decline

National Research (NRC) reported mixed results for its fiscal 2025 Q3 earnings on Nov 8, 2025, with revenue and earnings declines offset by strong post-earnings stock performance. The company’s revenue dipped 3.4% to $34.61 million, while net income fell 27.5% to $4.12 million. Despite the drop, the firm highlighted its 20-year streak of quarterly profitability, signaling operational resilience. Guidance for future periods remains unadjusted at this stage.

Revenue

National Research’s total revenue for Q3 2025 declined 3.4% year-over-year to $34.61 million, driven by reduced recurring revenue from its existing client base. The company primarily generates income through subscription-based services, which are recognized ratably over time, alongside smaller contributions from services recognized at a point in time, fixed non-subscription services, and unit-price services.

Earnings/Net Income

Earnings per share (EPS) fell 25.0% to $0.18 in Q3 2025, down from $0.24 in the prior-year period. Net income similarly declined to $4.12 million, a 27.5% decrease from $5.69 million in 2024 Q3. The drop was attributed to higher interest expenses and an elevated effective tax rate. Despite these challenges, the company has maintained profitability for over two decades in this quarter, underscoring its operational durability. Despite sustained profitability, EPS and net income fell short of prior-year levels.

Price Action

Following the earnings report, National Research’s stock price gained 2.51% in a single trading day, 10.03% over the subsequent week, and surged 23.32% month-to-date. The upward momentum suggests investor confidence in the company’s long-term resilience despite short-term financial headwinds.

CEO Commentary

CEO Commentary

James W. Carter, Chief Executive Officer of National Research, emphasized the company’s strategic focus on innovation and operational efficiency during the earnings call. He acknowledged the 3.4% revenue decline but highlighted progress in reducing direct expenses through workforce optimization and automation initiatives. Carter reiterated the company’s commitment to expanding Total Recurring Contract Value (TRCV), which he described as a “critical driver for future revenue growth.” The tone reflected cautious optimism, with Carter noting that while near-term challenges persist, the firm’s 20-year profitability streak demonstrates its ability to adapt to market dynamics.

Guidance

Guidance

The company did not provide specific quantitative guidance for Q4 2025 or beyond during the call. However, management expressed confidence in sustaining growth through TRCV expansion and strategic investments in healthcare analytics. Forward-looking statements included expectations of “fluctuations in direct expenses as a percentage of revenue” due to ongoing innovation efforts.

Additional News

Additional News

National Research announced the appointment of Shane Harrison as Executive Vice President and Chief Financial Officer, effective Q4 2024. Harrison brings extensive finance and strategic planning experience, signaling a leadership shift focused on growth. The company also outlined priorities to fund innovation and M&A activity, with secondary emphasis on capital allocation for dividends and share repurchases. While no new mergers were disclosed, the firm reiterated its commitment to consolidating its position in healthcare analytics through targeted acquisitions.