Gross margins have trended downward from 63.7% in 2023Q4 to 54.6% in 2026Q1, indicating potential loss of pricing power and ineffective management of fixed costs.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Sales/Revenue | 138.64M | 137.39M | 143.06M | 148.58M | 151.57M | 147.95M | 133.28M | 127.98M | 119.69M | 117.56M | 109.38M | 102.34M | 98.84M | 92.59M | 86.42M | 75.77M | 63.4M | 57.69M | 51.01M | 48.92M | 43.77M | 32.44M | 29.68M | 26.92M | 22.39M | 17.67M | 18.32M | 18.2M | 17.7M | 16.3M | 12.6M |
| Revenue Growth % | -1.88% | -3.96% | -3.72% | -1.97% | 2.44% | 11.01% | 4.14% | 6.93% | 1.81% | 7.47% | 6.88% | 3.55% | 6.75% | 7.14% | 14.06% | 19.51% | 9.89% | 13.09% | 4.27% | 11.77% | 34.95% | 9.27% | 10.26% | 20.26% | 26.67% | -3.51% | 0.64% | 2.82% | 8.59% | 29.37% | - |
| Cost of Goods Sold | 61.21M | 59.99M | 56.93M | 56.02M | 57.05M | 52.35M | 49.19M | 46.44M | 47.58M | 49.07M | 45.58M | 44.61M | 41.72M | 38.84M | 35.46M | 28.67M | 24.64M | 24.57M | 23.61M | 21.8M | 19.45M | 13.64M | 12.87M | 12.03M | 9.56M | 8.06M | 9.12M | 11.1M | 9.4M | 7.2M | 5.7M |
| COGS % of Revenue | - | 43.67% | 39.8% | 37.7% | 37.64% | 35.38% | 36.91% | 36.28% | 39.75% | 41.74% | 41.67% | 43.59% | 42.21% | 41.95% | 41.03% | 37.84% | 38.86% | 42.6% | 46.28% | 44.56% | 44.43% | 42.06% | 43.36% | 44.68% | 42.68% | 45.6% | 49.79% | 60.99% | 53.11% | 44.17% | 45.24% |
| Gross Profit | 77.43M | 77.39M | 86.13M | 92.56M | 94.52M | 95.6M | 84.09M | 81.55M | 72.11M | 68.49M | 63.81M | 57.73M | 57.12M | 53.75M | 50.96M | 47.1M | 38.76M | 33.12M | 27.4M | 27.12M | 24.33M | 18.79M | 16.81M | 14.89M | 12.83M | 9.61M | 9.2M | 7.1M | 8.3M | 9.1M | 6.9M |
| Gross Margin % | 55.85% | 56.33% | 60.2% | 62.3% | 62.36% | 64.62% | 63.09% | 63.72% | 60.25% | 58.26% | 58.33% | 56.41% | 57.79% | 58.05% | 58.97% | 62.16% | 61.14% | 57.4% | 53.72% | 55.44% | 55.57% | 57.94% | 56.64% | 55.32% | 57.32% | 54.4% | 50.21% | 39.01% | 46.89% | 55.83% | 54.76% |
| Gross Profit Growth % | - | -10.14% | -6.96% | -2.07% | -1.13% | 13.69% | 3.12% | 13.09% | 5.28% | 7.34% | 10.52% | 1.08% | 6.27% | 5.47% | 8.2% | 21.51% | 17.05% | 20.86% | 1.03% | 11.5% | 29.43% | 11.78% | 12.9% | 16.06% | 33.46% | 4.55% | 29.53% | -14.46% | -8.79% | 31.88% | - |
| Operating Expenses | 57.87M | 54.8M | 50.93M | 52.52M | 47.98M | 45.33M | 41.41M | 38.51M | 36.83M | 34.27M | 32.61M | 31.29M | 28.82M | 28.94M | 28.24M | 28.36M | 24.91M | 19.42M | 15.41M | 15.76M | 14.42M | 10.38M | 9.41M | 7.93M | 6.41M | 6.9M | 5.87M | 5M | 5.2M | 4.2M | 3.3M |
| OpEx % of Revenue | - | 39.89% | 35.6% | 35.35% | 31.65% | 30.64% | 31.07% | 30.09% | 30.78% | 29.15% | 29.81% | 30.57% | 29.16% | 31.26% | 32.68% | 37.44% | 39.29% | 33.66% | 30.21% | 32.21% | 32.94% | 32% | 31.71% | 29.45% | 28.64% | 39.05% | 32.06% | 27.47% | 29.38% | 25.77% | 26.19% |
| Selling, General & Admin | 57.87M | 54.8M | 44.91M | 46.58M | 42.7M | 38.96M | 34.44M | 32.97M | 31.37M | 29.69M | 28.39M | 27.18M | 25.02M | 25.21M | 23.54M | 23.3M | 20.2M | 15.59M | 12.73M | 13.17M | 12.16M | 8.62M | 7.39M | 5.99M | 4.74M | 4.99M | 4.6M | 4.2M | 4.8M | 4M | 3.1M |
| SG&A % of Revenue | - | 39.89% | 31.39% | 31.35% | 28.17% | 26.33% | 25.84% | 25.76% | 26.21% | 25.25% | 25.95% | 26.55% | 25.31% | 27.23% | 27.24% | 30.75% | 31.87% | 27.02% | 24.95% | 26.93% | 27.78% | 26.57% | 24.91% | 22.24% | 21.16% | 28.21% | 25.13% | 23.08% | 27.12% | 24.54% | 24.6% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | 0 | 6.02M | 5.94M | 5.28M | 6.37M | 7.03M | 5.54M | 885K | 50K | 302K | 1.07M | 18K | 16K | -3K | 5.07M | 4.7M | 3.83M | 2.69M | 2.58M | 2.26M | 1.76M | 2.02M | 1.94M | 1.67M | 1.92M | 1.27M | 800K | 400K | 200K | 200K |
| Operating Income | 19.56M | 22.59M | 35.19M | 40.05M | 46.54M | 50.27M | 42.68M | 43.03M | 35.27M | 34.22M | 31.2M | 26.45M | 28.3M | 24.81M | 22.72M | 18.73M | 13.86M | 13.7M | 11.99M | 11.37M | 9.91M | 8.41M | 7.4M | 6.96M | 6.42M | 2.71M | 3.32M | 2.1M | 3.1M | 4.9M | 3.6M |
| Operating Margin % | 14.11% | 16.44% | 24.6% | 26.95% | 30.71% | 33.98% | 32.02% | 33.63% | 29.47% | 29.11% | 28.52% | 25.84% | 28.63% | 26.79% | 26.29% | 24.73% | 21.86% | 23.74% | 23.5% | 23.23% | 22.64% | 25.94% | 24.94% | 25.87% | 28.67% | 15.35% | 18.15% | 11.54% | 17.51% | 30.06% | 28.57% |
| Operating Income Growth % | - | -35.81% | -12.11% | -13.96% | -7.41% | 17.79% | -0.83% | 22% | 3.09% | 9.69% | 17.96% | -6.53% | 14.07% | 9.19% | 21.27% | 35.2% | 1.17% | 14.25% | 5.49% | 14.71% | 17.74% | 13.69% | 6.27% | 8.51% | 136.64% | -18.41% | 58.31% | -32.26% | -36.73% | 36.11% | - |
| EBITDA | 27.81M | 30.21M | 41.22M | 45.94M | 51.82M | 56.64M | 50.18M | 48.57M | 40.74M | 38.8M | 35.42M | 30.56M | 32.1M | 28.54M | 27.42M | 23.8M | 18.56M | 17.53M | 14.67M | 13.95M | 12.17M | 10.18M | 9.42M | 8.91M | 8.09M | 4.63M | 4.59M | 2.9M | 3.5M | 5.1M | 3.8M |
| EBITDA Margin % | 20.06% | 21.99% | 28.81% | 30.92% | 34.19% | 38.28% | 37.65% | 37.95% | 34.04% | 33.01% | 32.38% | 29.86% | 32.48% | 30.82% | 31.73% | 31.41% | 29.28% | 30.38% | 28.77% | 28.51% | 27.8% | 31.38% | 31.73% | 33.08% | 36.15% | 26.19% | 25.08% | 15.93% | 19.77% | 31.29% | 30.16% |
| EBITDA Growth % | -32.4% | -26.69% | -10.29% | -11.34% | -8.52% | 12.88% | 3.31% | 19.24% | 4.98% | 9.55% | 15.92% | -4.81% | 12.48% | 4.08% | 15.2% | 28.23% | 5.89% | 19.45% | 5.2% | 14.64% | 19.56% | 8.04% | 5.76% | 10.03% | 74.84% | 0.76% | 58.42% | -17.14% | -31.37% | 34.21% | - |
| D&A (Non-Cash Add-back) | 8.25M | 7.62M | 6.02M | 5.9M | 5.28M | 6.37M | 7.5M | 5.54M | 5.46M | 4.59M | 4.22M | 4.11M | 3.8M | 3.73M | 4.7M | 5.07M | 4.7M | 3.83M | 2.69M | 2.58M | 2.26M | 1.76M | 2.02M | 1.94M | 1.67M | 1.92M | 1.27M | 800K | 400K | 200K | 200K |
| EBIT | 19.55M | 22.61M | 35.28M | 40.09M | 44.02M | 50.29M | 43.28M | 43.03M | 35.27M | 34.22M | 31.2M | 26.45M | 28.4M | 24.81M | 22.75M | 18.79M | 13.81M | 13.52M | 12.12M | 11.37M | 9.91M | 8.42M | 7.4M | 6.96M | 6.42M | 2.71M | 3.32M | 2.1M | 3.1M | 4.9M | 3.6M |
| Net Interest Income | -4.99M | -4.65M | -2.47M | -42K | -1.04M | -1.65M | -1.79M | -2.05M | -1.45M | 14K | -143K | -160K | -222K | -334K | -509K | -616K | -485K | -403K | -97K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 127K | 111K | 125K | 820K | 168K | 14K | 18K | 37K | 62K | 96K | 47K | 60K | 83K | 63K | 32K | 13K | 6K | 2K | 42K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 5.12M | 4.76M | 2.6M | 862K | 1.21M | 1.67M | 1.81M | 2.09M | 1.51M | 82K | 190K | 220K | 305K | 397K | 541K | 629K | 491K | 405K | 139K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -5.06M | -4.75M | -2.5M | -83K | -3.73M | -1.65M | -1.21M | -2.52M | -566K | 64K | 159K | 913K | -204K | -318K | -512K | -575K | -542K | -580K | -6K | -248.16K | -402.1K | 99K | -118.79K | -49K | -257.64K | -88.57K | 531.54K | 100K | -2.3M | -1.3M | 200K |
| Pretax Income | 14.5M | 17.84M | 32.69M | 39.96M | 42.81M | 48.62M | 41.47M | 40.52M | 34.71M | 34.28M | 31.36M | 27.36M | 28.09M | 24.49M | 22.21M | 18.16M | 13.31M | 13.12M | 11.98M | 11.12M | 9.51M | 8.51M | 7.28M | 6.92M | 6.16M | 2.62M | 3.86M | 2.2M | 800K | 3.6M | 3.8M |
| Pretax Margin % | 10.46% | 12.99% | 22.85% | 26.9% | 28.25% | 32.86% | 31.11% | 31.66% | 29% | 29.16% | 28.67% | 26.73% | 28.42% | 26.45% | 25.7% | 23.97% | 21% | 22.74% | 23.49% | 22.72% | 21.72% | 26.25% | 24.54% | 25.69% | 27.52% | 14.85% | 21.05% | 12.09% | 4.52% | 22.09% | 30.16% |
| Income Tax | 5.47M | 6.24M | 7.91M | 8.99M | 11.02M | 11.15M | 4.21M | 8.11M | 4.66M | 11.34M | 10.84M | 9.75M | 9.94M | 9M | 7.14M | 6.6M | 4.82M | 4.63M | 4.54M | 4.28M | 3.62M | 3.28M | 2.73M | 2.53M | 2.31M | 953.63K | 1.14M | 700K | 300K | 400K | 1.5M |
| Effective Tax Rate % | 37.7% | 34.99% | 24.19% | 22.5% | 25.73% | 22.94% | 10.15% | 20.02% | 13.43% | 33.08% | 34.56% | 35.64% | 35.37% | 36.77% | 32.15% | 36.32% | 36.17% | 35.27% | 37.87% | 38.48% | 38.1% | 38.5% | 37.52% | 36.61% | 37.51% | 36.34% | 29.55% | 31.82% | 37.5% | 11.11% | 39.47% |
| Net Income | 9.03M | 11.6M | 24.78M | 30.97M | 31.8M | 37.47M | 37.26M | 32.41M | 30.05M | 22.94M | 20.52M | 17.61M | 18.16M | 15.48M | 15.07M | 11.56M | 8.5M | 8.49M | 7.45M | 6.84M | 5.88M | 5.24M | 4.55M | 4.38M | 3.85M | 1.67M | 2.72M | 1.5M | 500K | 3.2M | 2.3M |
| Net Margin % | 6.52% | 8.44% | 17.32% | 20.84% | 20.98% | 25.32% | 27.96% | 25.32% | 25.1% | 19.52% | 18.76% | 17.21% | 18.37% | 16.72% | 17.44% | 15.26% | 13.41% | 14.72% | 14.59% | 13.98% | 13.44% | 16.14% | 15.33% | 16.28% | 17.2% | 9.45% | 14.83% | 8.24% | 2.82% | 19.63% | 18.25% |
| Net Income Growth % | -62.68% | -53.19% | -19.98% | -2.61% | -15.12% | 0.55% | 14.98% | 7.85% | 30.96% | 11.82% | 16.51% | -3.01% | 17.26% | 2.76% | 30.3% | 36.06% | 0.09% | 14.05% | 8.86% | 16.23% | 12.38% | 15.06% | 3.8% | 13.87% | 130.5% | -38.52% | 81.12% | 200% | -84.38% | 39.13% | - |
| Net Income (Continuing) | 9.04M | 11.6M | 24.78M | 30.97M | 31.8M | 37.47M | 37.26M | 32.41M | 30.05M | 22.94M | 20.52M | 17.61M | 18.16M | 15.48M | 15.07M | 11.56M | 8.5M | 8.49M | 7.45M | 6.84M | 5.88M | 5.24M | 4.55M | 4.38M | 3.85M | 1.67M | 2.72M | 1.5M | 500K | 3.2M | 2.3M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 0.41 | 0.52 | 1.04 | 1.25 | 1.27 | 1.46 | 1.45 | 1.26 | 1.07 | 0.52 | 0.48 | 0.41 | 0.43 | 0.37 | 2.17 | 1.69 | 1.26 | 1.26 | 1.09 | 0.98 | 0.85 | 0.74 | 0.63 | 0.60 | 0.54 | 0.24 | 0.39 | 0.21 | 0.06 | 0.37 | 0.37 |
| EPS Growth % | -61.39% | -50% | -16.8% | -1.57% | -13.01% | 0.69% | 15.08% | 17.76% | 105.77% | 8.33% | 17.07% | -4.65% | 16.22% | -82.95% | 28.4% | 34.13% | 0% | 15.6% | 11.22% | 15.29% | 14.86% | 17.46% | 5% | 11.11% | 125% | -38.46% | 85.71% | 250% | -83.78% | 0% | - |
| EPS (Basic) | - | 0.52 | 1.05 | 1.26 | 1.28 | 1.47 | 1.48 | 1.30 | 1.11 | 0.54 | 0.49 | 0.42 | 0.44 | 0.37 | 2.22 | 1.73 | 1.28 | 1.28 | 1.11 | 1.00 | 0.86 | 0.74 | 0.63 | 0.60 | 0.54 | 0.24 | 0.39 | 0.21 | 0.06 | 0.37 | 0.37 |
| Diluted Shares Outstanding | 21.91M | 22.4M | 23.74M | 24.67M | 25.05M | 25.64M | 25.7M | 25.65M | 28.08M | 25.23M | 24.6M | 24.5M | 24.61M | 24.61M | 6.95M | 6.84M | 6.74M | 6.72M | 6.83M | 6.98M | 6.92M | 7.08M | 7.28M | 7.31M | 7.16M | 7.09M | 7.06M | 7.5M | 8.33M | 8.65M | 6.22M |
| Basic Shares Outstanding | 21.8M | 22.38M | 23.72M | 24.54M | 24.92M | 25.42M | 25.17M | 24.81M | 27.09M | 24.28M | 24.22M | 24.22M | 24.24M | 24.12M | 6.78M | 6.67M | 6.64M | 6.64M | 6.68M | 6.84M | 6.84M | 7.08M | 7.22M | 7.31M | 7.13M | 6.96M | 6.97M | 7.14M | 8.33M | 8.65M | 6.22M |
| Dividend Payout Ratio | - | 94.64% | 46.21% | 117.42% | 65.92% | 24.45% | 28.23% | 96.58% | 56.11% | 73.52% | 139.16% | 57.09% | - | 13.83% | 115.23% | 51.12% | 59.55% | 50.21% | 50.65% | 48.6% | 46.84% | 43.13% | - | - | - | - | - | - | - | 137.5% | 143.48% |
Competitive Disintermediation Risk
As reported in recent financial filings, NRC has experienced a sustained period of negative year-over-year revenue growth, with the most recent quarter showing a 3.7% increase that fails to offset the broader trend of contraction observed over the preceding eight quarters of data.
The inability to maintain consistent top-line expansion suggests that the company's core subscription model may be facing significant headwinds from market saturation or competitive poaching. Investors should monitor whether this stagnation reflects a temporary cyclical trough or a more permanent erosion of the company's value proposition within the healthcare information services sector.
Based on the provided income statement data, NRC's gross margin has trended downward from a peak of 63.7% in 2023Q4 to 54.6% in 2026Q1, indicating a potential loss of pricing power or rising costs associated with maintaining its proprietary data analytics platform.
This contraction in gross profitability appears to be compounded by volatility in operating margins, which have fluctuated significantly as the company struggles to scale its cost base against declining revenue. Such margin instability warrants further investigation into whether the firm is being forced to increase service intensity to retain existing clients.
According to the historical income statement, NRC's operating income has demonstrated high sensitivity to revenue fluctuations, with operating margins compressing from 30.8% in 2023Q4 to 16.0% in 2026Q1, suggesting that fixed costs are not being managed effectively during this period of top-line weakness.
The lack of operating leverage implies that the company's cost structure remains heavily weighted toward fixed expenditures that do not adjust downward in tandem with revenue. This dynamic creates a precarious environment where even minor further declines in contract volume could lead to disproportionate impacts on bottom-line profitability.
Based on the reported figures, NRC's net income has faced significant volatility, with stock-based compensation expenses rising to $1.6M in 2026Q1, which appears to be a material drag on earnings quality compared to the lower compensation levels observed in previous fiscal periods.
The rising trend in stock-based compensation, coupled with the recent net income decline, suggests that shareholders are experiencing dilution while the underlying operational performance remains stagnant. Analysts should scrutinize whether these compensation levels are tied to performance metrics that are currently misaligned with the company's actual growth trajectory.
While the company maintains a proprietary database, the risk of EHR giants integrating native feedback loops, as suggested by industry trends, poses a fundamental threat to NRC's business model that may not be fully captured by current valuation multiples or historical benchmarking data.
Short-sellers would likely focus on the potential for NRC's core services to be commoditized by larger, integrated healthcare platforms that offer survey tools as a bundled feature. If the market shifts toward these integrated solutions, NRC's historical data moat may prove insufficient to prevent a permanent decline in its competitive standing.
Quick answers to the most common questions about buying NRC stock.
For fiscal year 2025, National Research Corporation (NRC) reported total revenue of $137.4M. This represents a 990.4% increase compared to $12.6M in 1996.
National Research Corporation (NRC) is profitable, generating $11.6M in net income for the fiscal year ending 2025 with a net profit margin of 8.4%.
National Research Corporation (NRC) reported an operating income of $22.6M, resulting in an operating profit margin of 16.4%. This margin reflects the operational efficiency of the business before interest and taxes.
National Research Corporation (NRC) generated $77.4M in gross profit for the year, representing a gross profit margin of 56.3%. This demonstrates the company's core pricing power and production efficiency.