National Research Shares Plunge 27% After Q4 EPS Drops 45% and Revenues Dip 5%
National Research Corporation posted Q4 adjusted EPS of $0.16, down from $0.29 a year earlier, while quarterly revenues declined 5% to $35.2 million. The company’s stock slid 27% following the report as GAAP net income fell to $1.8 million and client attrition pressured growth.
1. Q4 Financial Results
National Research reported adjusted EPS of $0.16, down from $0.29 the prior year, and revenue of $35.2 million, a 5% decline. GAAP net income fell to $1.8 million from $6.6 million, and adjusted net income dropped to $3.4 million from $6.7 million.
2. Stock Market Reaction
Shares declined 27% on the earnings release and have fallen 22% over the past month, significantly underperforming the broader market. Investors reacted to earnings misses and elevated client attrition concerns.
3. Operational Metrics and TRCV Growth
Adjusted EBITDA for the quarter was $8.7 million, representing a 25% margin, while operating cash flow rose 13% to $7.2 million. Total Recurring Contract Value climbed 8% year-over-year to $144.1 million, marking the fifth consecutive quarter of sequential growth and supporting recurring revenue stability at 99%.
4. Management Outlook and Initiatives
Management projects revenue growth resuming in 2026, citing an 86% increase in new sales and a refined go-to-market strategy. The company highlighted sales team realignment, product enhancements, customer success initiatives, and its option to pursue strategic acquisitions to drive long-term growth.