NRC Health (NRC) SEC Filings & Earnings Calls

CEO dual role may indicate temporary leadership gap in finance function.

“CEO appointed as interim principal financial officer; no permanent CFO named.”

CFO departure may disrupt financial operations and investor confidence

“CFO resignation effective Aug 28, 2026; search for replacement initiated.”

Executive compensation overhang

“Selling, general, and administrative expenses increased to $22.9 million for the 2026 period, from $17.7 million for the same period in 2025. The increase was primarily driven by $7.1 million of higher stock-based compensation expense related to executive leadership.” · word for word

Operating loss

“Operating income (loss) $(3,238) in Q2 2026 vs $1,588 in Q2 2025.”

GAAP net loss and low free cash flow due to one-time adjustment items

“GAAP net loss ($3.3M); free cash flow $0.1M reflecting $2.9M cash payment for Adjustment Items”

Insider ownership concentration risk

“As of March 31, 2026, approximately 38.2% of our outstanding common stock was held by the Common Property Trust (the “Trust”), the principal holder of shares previously owned by Mr. Hays, and approximately 47.6% of our outstanding common stock was held by the Trust and other entities controlled by trustees or special power holders for the benefit of members ” · word for word

Executive transition costs

“The increase was primarily driven by $1.4 million of higher stock‑based compensation related to executive leadership and approximately $0.5 million of executive salary expense that was not present in the prior‑year period.” · word for word

One-time compensation charges

“The amendments and related bonuses are expected to result in approximately $9.4 million of expense during the second quarter of 2026.” · word for word

One-time expense may impact earnings, but non-cash portion accelerates future expense.

“consisting of (i) approximately $6.5 million of non-cash accelerated equity compensation expense... and (ii) approximately $2.9 million of cash bonus expense.”

GAAP net income declined 44% YoY due to higher SG&A and interest expense

“Net income $3.2M vs $5.8M YoY; SG&A $13.4M vs $10.4M; interest expense $1.3M vs $0.9M”

Revenue decline from existing clients

“Revenue in the 2025 period decreased compared to the 2024 period by $1.2 million. This was mainly from decreased recurring revenue of $1.6 million in our existing client base” · word for word

High leverage and interest expense

“Total other expense increased in the 2025 period compared to the 2024 period primarily due to higher interest expense of $0.8 million mainly from higher borrowings outstanding on our Delayed Draw Term Loan” · word for word

Working capital deficit

“We had a working capital deficit of $18.2 million and $16.3 million on September 30, 2025 and December 31, 2024, respectively.” · word for word