Q2 2026 NRC Health Earnings Call Transcript
Key Points
- NRC Health (NRC) reported an 11% year-over-year increase in Total Recurring Contract Value (TRCV), showcasing diversified growth across its business segments.
- The Governance Institute achieved its strongest bookings performance in seven years, with a nearly 10% year-over-year TRCV growth.
- NRC Health's product innovations, such as Ambient Listening with Agentic AI, are enhancing customer engagement and improving real-time experience measurement.
- The company maintained a consistent adjusted EBITDA margin of 27%, reflecting disciplined investment in delivery and product development.
- NRC Health's strategic focus on insight, engagement, and enablement is driving differentiation in the healthcare industry, particularly in engagement and enablement layers.
- Second quarter revenue growth was modest at approximately 4% year-over-year, impacted by a two-point headwind from an accounting change related to reputation monitoring solutions.
- Year-over-year adjusted EBITDA was lower by $900,000, primarily due to higher operating expenses tied to expansion and product investments.
- The average deal size in the sales pipeline has decreased, reflecting the size of organizations currently coming to market.
- There is market uncertainty due to the recent acquisition of Press Ganey by Qualtrics, causing some customers to pause and reassess their RFP processes.
- NRC Health's tax provision for Q2 was affected by non-deductible expenses, leading to an unusual effective tax rate that is not comparable to future quarters.
Hello, everyone. Thank you for joining us and welcome to the NRC Q2 2026 earnings call. After today's prepared remarks, we will host a question-and-answer session. (Operator Instructions)
I will now hand the conference over to Jordan Freeman, NRC Health's Chief Accounting Officer. Jordan, please go ahead.
Thank you, operator. Welcome to NRC Health's earnings conference call for the second quarter ended June 30, 2026. I wanted to first let you know that we posted our earnings press release to the investor relations section on our website. On this call today, we have NRC Health CEO Trent Green and CFO Shane Harrison.
Today's call will include statements related to the expected future results of our company, which are therefore forward-looking statements. Actual results may differ materially from these expectations due to a number of risks and uncertainties, including those described in our earnings release and other SEC filings. We will also reference non-GAAP financial measures. Definitions
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