National Research Reports Fourth Quarter and Full Year 2025 Results

National Research has delivered a solid performance in the fourth quarter and full year of 2025, showcasing strong recurring revenue growth and a commitment to enhancing its service offerings. The company's strategic initiatives, particularly in sales and product innovation, position it well for future growth. This article will delve into the key takeaways from the earnings call, focusing on financial performance, strategic initiatives, and the outlook for the future.

Financial Performance

In the fourth quarter of 2025, National Research reported revenue of $35 million, a slight decrease of 5% year-over-year, but an improvement of 2% sequentially from Q3. The company's Total Recurring Contract Value (TRCV) reached $144 million, reflecting an 8% year-over-year increase and marking the fifth consecutive quarter of TRCV growth. This consistent growth underscores the effectiveness of the company's go-to-market strategy and the strength of its value proposition in an increasingly complex healthcare environment.

Key metrics for the fourth quarter include:

Adjusted EBITDA: $8.7 million
Adjusted net income: $3.4 million
Adjusted EPS: $0.16 per share

Despite facing challenges from prior TRCV attrition, the company demonstrated resilience with strong operational execution. The annual revenue for 2025 totaled $137.4 million, down 4% from 2024, primarily due to elevated attrition in the latter half of the previous year. However, the growth in TRCV indicates a recovery trajectory, with management optimistic about revenue growth in 2026.

Strategic Initiatives

National Research has undertaken several strategic initiatives to bolster its market position and enhance customer offerings:

Sales Team Restructuring: The company revamped its sales team and coverage model, resulting in an 86% increase in new sales year-over-year. This restructuring aligns the sales approach with healthcare system decision-making processes, facilitating deeper engagement with customers.
Customer Success Enhancements: The customer success teams have improved engagement quality, achieving the highest gross dollar retention rate in over seven years. This improvement is pivotal as it reflects the company's commitment to building long-term relationships with clients.
Product Portfolio Expansion: National Research has invested in enhancing its product capabilities, addressing customer needs effectively. The company has diversified its offerings into four solution categories: Experience Solutions, Enablement Solutions, Strategic Insight Solutions, and Governance Solutions. This breadth positions the company to meet a variety of healthcare operational challenges.
Leadership Team Strengthening: The addition of David Burek to lead Strategic Insights and Governance reflects a broader commitment to strengthening leadership. His extensive experience in healthcare consulting is expected to drive growth and innovation across the company's Market Insights platform.

“Our mission to turn human understanding into meaningful, measurable action resonates deeply with healthcare leaders navigating unprecedented complexity.” - Trent Green, CEO

Future Outlook

Looking ahead, National Research is optimistic about its growth trajectory for 2026, driven by several key factors:

Sales Model Scalability: The restructured sales model is anticipated to yield significant results as it matures, providing a strong tailwind for growth.
Enablement Solutions Adoption: The company plans to deepen the adoption of its enablement solutions, which are designed to operationalize insights and improve healthcare delivery. The successful integration of the Rounding solution is a significant milestone in this area.
Product Innovation: Continuous investment in product innovation, particularly through AI capabilities, is a strategic priority. AI is being leveraged to enhance sentiment analysis and feedback mechanisms, ensuring that the company remains a leader in delivering actionable insights.
Cross-Selling Opportunities: There is a clear potential for cross-selling additional solutions to existing customers, which could further enhance revenue streams.
Retention Efforts: While the company achieved a seven-year high in customer retention, there are plans to further solidify these efforts, ensuring that customer success initiatives remain robust.
New Market Expansion: National Research is looking to capitalize on new buyers and use cases, expanding beyond its historical footprint.

Conclusion

In summary, National Research's fourth quarter and full year 2025 results highlight a company that is navigating challenges while laying a strong foundation for future growth. With a focus on enhancing customer engagement, expanding its product portfolio, and leveraging strategic leadership, the company is well-positioned to drive revenue growth in 2026. As healthcare continues to evolve, National Research's commitment to delivering meaningful insights and operational improvements remains crucial. Investors can look forward to a promising future as the company capitalizes on its unique strengths in the healthcare market.