NRC Health posts 11% revenue growth in Q3 2026, declares $0.16 dividend
Revenue reached $38.4 million and recurring contract value rose 9% as a large customer went live on schedule, the company said.
NRC Health reported third quarter 2026 results on October 27, 2026, with third quarter revenue increasing 11% year-over-year to $38.4 million and third quarter Total Recurring Contract Value increasing 9% year-over-year to $154.1 million.1
CEO Trent Green said the company's large customer went live on schedule, and several long-standing customers renewed under multi-year agreements, which he said reinforces the durability of the recurring-revenue base.1
The company's board declared a dividend during the quarter. The Board of Directors on October 14, 2026, declared a quarterly cash dividend of $0.16 per share, payable Friday, January 8, 2027, to shareholders of record as of the close of business Tuesday, December 29, 2026.1
On profitability, GAAP Net Income and Adjusted Net Income were $4.7 million, or 12% of revenue, with GAAP and Adjusted Earnings per Share of $0.21, and Adjusted EBITDA of $10.9 million, representing 28% of revenue.1 The diluted weighted average share count used in that calculation was 21,887 thousand shares for the three months ended September 30, 20261, slightly below the 22.0 million figure cited in the release's highlights section.
On cash flow, net cash flow from operating activities was $8.0 million, representing 21% of revenue.1 The reconciliation table shows free cash flow of $6,982 thousand for the quarter, or an 18% free cash flow margin, after subtracting $1,038 thousand of capital expenditures from operating cash flow.1
Green said as the company's expanding contract base converts into revenue, the operating leverage in its model is expected to translate into greater profitability and free cash flow over time.1
Written by readthrough’s AI from the linked primary sources and fact-checked against them automatically before publishing. Not investment advice.