Shares of National Research Corporation (NRC) have gained 12.8% since the company reported its earnings for the quarter ended March 31, 2025, outperforming the S&P 500 index’s 0.7% growth during the same period. However, over the past month, NRC stock has edged down 0.6%, a milder decline compared to the broader market’s 1.6% drop.For the first quarter of 2025, NRC reported earnings per share (EPS) of 25 cents compared to 27 cents a year earlier. (See the Zacks Earnings Calendar to stay ahead of market-maki ...

Financial Performance - Revenue for Q1 2025 was $33,551,000, a decrease of 4.99% from $35,313,000 in Q1 2024[9] - Operating expenses declined to $24,955,000, down 6.02% from $26,553,000 in the previous year[9] - Net income for Q1 2025 was $5,787,000, a decrease of 9.00% compared to $6,359,000 in Q1 2024[9] Dividends and Share Repurchase - The Board declared a quarterly cash dividend of $0.12 per share, payable on July 11, 2025[5] - A new share repurchase program was approved to buy back up to one million additional shares[6] Assets and Equity - Cash and cash equivalents decreased to $2,502,000 from $4,233,000 at the end of 2024[11] - Total assets increased to $135,175,000 from $132,539,000 at the end of 2024[11] - Shareholders' equity decreased to $29,672,000 from $31,284,000 at the end of 2024[11] Growth and Expansion - Total recurring contract value increased sequentially for the second consecutive quarter, indicating revenue growth momentum[3] - The company is accelerating its sales force expansion to leverage broader product offerings[3]

Revenue and Financial Performance - Revenue for 2024 decreased by $5.5 million to $143.06 million, a decline of 4% compared to 2023, primarily due to decreased recurring revenue from the existing client base [135]. - Total Recurring Contract Value (TRCV) declined to $133.22 million, down 6% from 2023, with a retention rate decrease of 4% [135][143]. - Operating income decreased to $35.19 million, a 12% decline from 2023, with an operating margin of 25% [135][140]. - Cash provided by operating activities decreased to $34.63 million, down 10% from 2023 [135][146]. Expenses - Direct expenses increased to $56.93 million, with variable expenses as a percentage of revenue rising to 16% from 15% in 2023 [135][137]. - Selling, general, and administrative expenses decreased by $1.71 million to $44.91 million, primarily due to reduced marketing and consulting expenses [135][138]. - Total other expense increased by $2.42 million, primarily due to higher interest expenses and lower interest income [135][141]. Cash and Working Capital - As of December 31, 2024, the company had $4.2 million in cash and cash equivalents, with an unused borrowing capacity of up to $30 million under its Line of Credit [145]. - The company reported a working capital deficit of $16.3 million as of December 31, 2024, compared to $11.8 million in 2023 [149]. Capital Expenditures and Investments - Capital expenditures for 2024 totaled $15.4 million, primarily for software development and headquarters renovations, with an estimated $5.8 million planned for 2025 [153]. - The company plans to invest in innovative solutions, which may cause fluctuations in direct expenses as a percentage of revenue [137]. Debt and Credit Facilities - As of December 31, 2024, the outstanding balance on the Term Loan was $14.3 million, with principal payments due in monthly installments of $92,800 through May 2027 [155]. - The outstanding balance on the Delayed Draw Term Loan was $48.5 million, with monthly principal payments of $318,790 due through May 2027 [156]. - The company had a $30.0 million revolving credit facility available as of December 31, 2024, with no borrowings outstanding [157]. - The weighted average interest rate on borrowings under the Line of Credit was 7.52% for 2024, compared to 7.67% for 2023 [157]. - The company is required to maintain a minimum fixed charge coverage ratio of 1.10x and a cash flow leverage ratio of 3.00x or less under the Credit Agreement [159]. Share Repurchase and Dividends - The company repurchased 1,154,595 shares of common stock for an aggregate of $30.8 million during 2024, leaving 307,709 shares available for repurchase under the 2022 Program [170]. - Cash dividends declared amounted to $11.3 million, $36.3 million, and $20.9 million for the years 2024, 2023, and 2022 respectively [152]. Tax and Interest Rate Considerations - The liability for gross unrecognized tax benefits related to uncertain tax positions was $2.2 million as of December 31, 2024 [167]. - Interest rate changes could impact future earnings and cash flows by approximately $592,000 annually based on a hypothetical 100 basis points change in the benchmark index rate [174].

Core Insights - Trent Green, CEO of Amazon-owned One Medical, will leave to become CEO of National Research Corporation (NRC Health) effective June 1 [1][4] - Green's departure from One Medical is set for April 4, following nearly three years with the company [2][3] - Under Green's leadership, One Medical expanded geographically, opened new offices, and integrated services for Amazon Prime members [3] Company Developments - NRC Health focuses on healthcare experience management and aims to enhance personalized, data-driven solutions under Green's leadership [4] - Green expressed excitement about leading NRC Health during a transformative period and emphasized the importance of innovative solutions for healthcare experiences [5] Financial Context - Amazon's acquisition of One Medical for $3.9 billion in July 2022 aimed to reinvent healthcare through a tech-powered primary care model [5] - In February 2024, Amazon announced job cuts in its healthcare units, including One Medical, as part of efforts to save $100 million and reduce operating losses [6]

Core Insights - National Research Corporation (NRC) shares have declined 9.1% since the earnings report for Q4 2024, compared to a 0.6% decline in the S&P 500 index during the same period [1] - The company reported earnings per share of 28 cents for Q4 2024, down from 36 cents in the same quarter last year [2] - Revenues for Q4 2024 were $36.9 million, a decrease from $38 million in the prior-year quarter [2] - Net income fell to $6.6 million from $8.9 million year-over-year [2] Financial Performance - Total operating expenses increased to $27.3 million from $26.3 million, driven by higher direct expenses and selling, general, and administrative (SG&A) costs [3] - Operating income decreased to $9.6 million from $11.7 million, reflecting the impact of higher costs and lower revenues [3] - Interest expenses rose to $0.7 million from $0.3 million in the prior-year quarter [4] Business Metrics - Total recurring contract value was approximately $133.2 million as of December 31, 2024 [4] - Net indebtedness was around $58.5 million at the end of the quarter [4] Performance Influencers - Revenue declines and margin compression were key factors contributing to NRC's lower earnings performance [5] - A modest increase in operating expenses, particularly in SG&A costs, negatively impacted profitability [5] - A significant rise in interest expenses further pressured net income [5] Other Developments - NRC continued its capital allocation strategy through share repurchases and dividend distributions, repurchasing approximately 393,000 shares for around $7.3 million [6] - The company paid a quarterly dividend of 12 cents per share, totaling approximately $2.8 million [6]

Financial Performance - Revenue for Q4 2024 was approximately $36.9 million, a decrease of 2.9% compared to approximately $38.0 million in Q4 2023[3] - Earnings per diluted share for Q4 2024 were $0.28, down from $0.36 in Q4 2023, representing a decline of 22.2%[3] - Net income for Q4 2024 was $6.6 million, a decrease of 25.8% from $8.9 million in Q4 2023[8] - Total operating expenses for Q4 2024 were approximately $27.3 million, an increase of 3.9% compared to $26.3 million in Q4 2023[8] Shareholder Returns - The company returned approximately $10.1 million to shareholders through dividends and stock repurchases during the quarter[4] - The company repurchased approximately 393,000 shares for about $7.3 million and paid a regular quarterly dividend of $0.12 per share, totaling approximately $2.8 million[4] Contract Value and Debt - Total recurring contract value (TRCV) was approximately $133.2 million as of December 31, 2024[3] - The company's net indebtedness was approximately $58.5 million as of December 31, 2024[3] Assets and Equity - Total assets increased to $132.5 million as of December 31, 2024, compared to $122.4 million in 2023[10] - Shareholders' equity decreased to $31.3 million as of December 31, 2024, down from $49.0 million in 2023[10]

Core Insights - BTQ Technologies Corp. is set to receive funding of up to $150,000 from the National Research Council of Canada Industrial Research Assistance Program (NRC IRAP) to support its research and development project focused on secure quantum random number generation (QRNG) [5][6] - The project aims to develop distributed consensus algorithms for QRNG, which is essential for cryptography and various critical industries such as blockchain, telecommunications, and finance [1][6] - BTQ plans to pursue additional research and development funding and collaborations to enhance its presence in Canada's quantum and cybersecurity ecosystems [2] Company Overview - BTQ Technologies Corp. is a global quantum technology company that focuses on securing mission-critical networks and was founded by experts in post-quantum security [8] - The company has a strong technology portfolio and commercialization platform aimed at addressing security threats posed by large-scale quantum computers [8] - Olivier Roussy-Newton, the CEO and Chairman, expressed satisfaction with the support from NRC IRAP, highlighting the company's commitment to building its presence in the quantum ecosystem [7]

Core Viewpoint - Zacks Investment Research has initiated coverage of National Research Corporation (NRC) with a Neutral rating, highlighting both opportunities and challenges in the evolving healthcare landscape [1] Group 1: Competitive Position and Innovations - NRC Health has strengthened its competitive position through strategic partnerships and technological advancements, including collaborations with Cooper University Health Care and Medallia [2] - The company's AI-enabled tools, powered by its proprietary Huey engine, enhance its innovative edge, providing real-time feedback and actionable insights to healthcare organizations [3] - The acquisition of Nobl adds advanced rounding tools to NRC Health's portfolio, addressing the rising demand for technology-driven patient care solutions [3] Group 2: Financial Performance - NRC Health generated $28.2 million in operating cash flow during the first nine months of 2024, a 7% increase from the prior year [4] - Revenues for the first nine months of 2024 declined 4% year over year to $106.2 million, with recurring contract value dropping 9% [5] - Long-term debt increased to $48.7 million as of September 30, 2024, alongside a sharp rise in interest expenses, indicating heightened financial risk [5] Group 3: Market Position and Valuation - NRC Health's stock has faced significant downward pressure over the past year due to revenue declines and rising debt levels, trading at a discount to industry peers [6] - The current valuation leaves room for potential upside if NRC Health stabilizes its financial performance and capitalizes on strategic initiatives [6] - While innovative offerings position NRC Health to capitalize on the transition to value-based care, challenges such as declining revenues and intense competition weigh on the stock's near-term potential [7] Group 4: Market Capitalization - NRC Health has a modest market capitalization of $458.7 million, indicating its position in a promising but risky segment of the market [8]

Revenue Performance - Revenue for the three months ended September 30, 2024, decreased by $2.1 million (6%) to $35.8 million compared to $37.9 million in the same period of 2023, primarily due to decreased US recurring revenue from the existing client base[90] - For the nine months ended September 30, 2024, revenue decreased by $4.4 million (4%) to $106.2 million compared to $110.6 million in the same period of 2023, mainly from decreased US recurring revenue[96] - Recurring contract value declined by 9% to $131.6 million in 2024 compared to $144.3 million in 2023, primarily due to a lack of growth in new contracts[102] Expenses - Direct expenses increased by $1.1 million (5%) to $15.3 million in the three months ended September 30, 2024, mainly from higher conference expenses[90] - Selling, general, and administrative expenses decreased by $814,000 (7%) to $10.99 million in the three months ended September 30, 2024, primarily due to reduced marketing and consulting expenses[90] - Total other expense increased by $768,000, primarily due to lower interest income and higher interest expense, leading to a total other expense of $(684,000) in the three months ended September 30, 2024[94] Operating Income - Operating income for the three months ended September 30, 2024, decreased by $1.98 million (20%) to $7.98 million compared to $9.96 million in the same period of 2023[90] Cash Flow and Dividends - Cash provided by operating activities increased by $1.84 million (7%) to $28.2 million for the nine months ended September 30, 2024, compared to $26.4 million in the same period of 2023[96] - The company paid cash dividends of $8.6 million in the nine months ended September 30, 2024, with $2.8 million declared in the three months ended September 30, 2024[110] Debt and Credit Facilities - As of September 30, 2024, the company had $3.5 million in cash and cash equivalents, with up to $25 million of unused borrowings under the Line of Credit[104] - As of September 30, 2024, the outstanding balance on the Term Loan was $14.5 million, with monthly principal payments of $92,800 due through May 2027[115] - The outstanding balance on the Delayed Draw Term Loan was $34.2 million, with monthly principal payments of $220,882 due through May 2027[116] - The Line of Credit had $5.0 million of borrowings outstanding as of September 30, 2024, with an availability to borrow an additional $25.0 million[117] - The weighted average interest rate on borrowings on the Line of Credit for the three-month period ended September 30, 2024 was 7.65%[117] - The company is required to maintain a minimum fixed charge coverage ratio of 1.10x and a cash flow leverage ratio of 3.00x or less throughout the term of the Credit Facilities[119] - The company amended its Credit Facilities on August 5, 2024, revising the interest rate on the Term Loan to a floating rate based on the 30-day SOFR plus 235 basis points[114] - The company is obligated to pay ongoing unused commitment fees at a rate of 0.20% per annum based on the actual daily unused portions of the Line of Credit and the Delayed Draw Term Loan facility[118] Stock Repurchase - During the three months ended September 30, 2024, the company repurchased 395,217 shares of common stock under the 2022 Stock Repurchase Program[125] - As of September 30, 2024, the remaining number of shares that could be purchased under the 2022 Program was 700,633 shares[125] Tax Liabilities - The company had a liability for gross unrecognized tax benefits related to uncertain tax positions amounting to $2.2 million as of September 30, 2024[122]

Financial Performance - Revenue for Q3 2024 was approximately $35.8 million, a decrease of 5.5% compared to $37.9 million in Q3 2023[2] - Earnings per diluted share were $0.24, down from $0.32 in the same quarter last year, representing a decline of 25%[2] - Net income for Q3 2024 was $5.7 million, compared to $7.9 million in Q3 2023, reflecting a decrease of 27.7%[6] - Total operating expenses for Q3 2024 were approximately $27.8 million, slightly down from $28.0 million in Q3 2023[6] Shareholder Returns - The company returned approximately $11.5 million to shareholders through dividends and stock repurchases during the quarter[3] - The regular quarterly dividend of $0.12 per share was declared, amounting to approximately $2.9 million[3] Contract Value and Debt - Total recurring contract value (TRCV) reached approximately $131.6 million as of September 30, 2024[2] - The company's net indebtedness was approximately $50.2 million as of September 30, 2024[2] Assets and Equity - Total assets increased to $131.8 million from $122.4 million at the end of 2023[7] - Shareholders' equity decreased to $34.6 million from $49.0 million at the end of 2023[7]