Fri, May 9, 2:04 PM (10 days ago)
**National Research Corporation (NRC)** reported its Q1 2025 financial results, showing a mixed performance with some positive trends and areas of concern. Revenue decreased by 5% to $33.55 million from $35.31 million in Q1 2024, primarily due to decreased recurring revenue from existing clients, partially offset by new client revenue. Operating income slightly decreased by 2% to $8.596 million, but operating margin increased to 26% from 25% due to cost reductions. Net income decreased by 8.7% to $5.787 million, with earnings per share remaining at $0.25. The company's recurring contract value (TRCV) showed sequential improvement but was lower year-over-year, indicating challenges in sustaining growth. Cash provided by operating activities decreased by 45.6% to $6.646 million due to working capital changes. The company's liquidity position remains strong, with $2.5 million in cash and significant borrowing availability. NRC continues to invest in growth and innovation, with plans for capital expenditures and strategic acquisitions. The company faces uncertainties related to market competition, economic conditions, and regulatory changes. Future operations may be impacted by the appointment of a new CEO and associated compensation costs. Overall, NRC's Q1 2025 results reflect a focus on cost management and strategic investments, but challenges in revenue growth and market uncertainties persist.