NRC Health (NRC) Q2 2026 earnings summary

Executive summary

• Achieved 11% year-over-year growth in Total Recurring Contract Value (TRCV) to $151.9 million for Q2 2026, with 4% revenue growth to $35.4 million, driven by diversified business momentum and product innovation.

• Experience and The Governance Institute (TGI) segments delivered strong bookings, with TGI achieving its best performance in seven years.

• Adjusted EBITDA for Q2 2026 was $9.4 million, representing a 27% margin, and Adjusted Net Income was $6.9 million ($0.31 per diluted share).

• Product investments, especially in AI-powered solutions, are enhancing differentiation and customer engagement.

• Maintained 99% recurring revenue and a leading presence in healthcare, serving 75% of the top-100 health systems.

Financial highlights

• Q2 2026 revenue was $35.4 million (+4% y/y); TRCV reached $151.9 million (+11% y/y); Adjusted EBITDA was $9.4 million (27% margin).

• Adjusted net income for Q2 2026 was $6.9 million (Adjusted EPS: $0.31), up from $6.4 million (Adjusted EPS: $0.28) year-over-year.

• Free cash flow for Q2 was $62,000, and for the six months was $5.4 million, up from negative $0.5 million in the prior year.

• Adjusted metrics exclude significant non-cash stock compensation and executive transition costs.

• 99% of revenue is recurring, with multi-year contracts driving predictability.

Outlook and guidance

• Positioned for a strong second half of 2026, supported by robust bookings and product innovation.

• Q3 revenue projected to increase sequentially, with adjusted EBITDA margin similar to the first half due to timing of the annual customer conference.

• Q4 anticipated to see EBITDA margin upside as revenue scales and operating expenses normalize.

• Effective tax rate expected to normalize to high 20s percent in 2027 and beyond.

• Existing liquidity sources are expected to be sufficient to meet projected capital and debt maturity needs for the foreseeable future.