Q1 2026 National Research Corp Earnings Call Transcript
Key Points
- NRC Health (NRC) achieved a 13% year-over-year increase in total recurring contract value (TRCV), reaching an all-time high of $152 million.
- New sales bookings surged over 200% year-over-year, driven by a landmark deal, marking the largest in NRC Health's history.
- Customer retention improved significantly, with the gross retention rate reaching its highest level in over seven years.
- Revenue returned to positive year-over-year growth for the first time since 2023, increasing by 4% to $35 million.
- The company reported a sequential improvement in adjusted EBITDA margin by two points to 27%.
- First quarter revenue showed a slight sequential decline from Q4 due to seasonality related to conference and point-in-time survey revenue.
- Year-over-year EBITDA margin was lower than Q1 2025 due to higher operating expenses tied to executive team expansion and other corporate expenses.
- The implementation of a landmark deal will incur upfront costs, impacting margins in the near term.
- A $9.4 million charge is expected in Q2 due to changes in executive restricted equity agreements, impacting financial results.
- The company anticipates flat adjusted EBITDA margins in Q2 due to rollout costs associated with the landmark deal.
Hello, everyone. Thank you for joining us, and welcome to NRC Health Q1 2026 earnings call. (Operator Instructions)
I will now hand the conference over to Jordan Freeman, VP of Finance.
Jordan, please go ahead.
Thank you, operator. Welcome to NRC Health's earnings conference call for the first quarter ended March 31, 2026. I wanted to first let you know that we posted our earnings press release to the Investor Relations section on our website. On the call today, we have NRC Health's CEO, Trent Green; and CFO, Shane Harrison.
Before getting started, I'd like to emphasize that this call will include statements related to the expected future results of our company, which are therefore forward-looking statements. Our actual results may differ materially from our expectations due to a number of risks and uncertainties, including those described in our earnings release and other SEC filings.
Today's remarks will also include references to non-GAAP financial
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