NRC Health Q2 2026: Operating Loss on Surging Stock Comp, Revenue Up 4%
NRC sits 78% above its 52-week low of $11.014.
Summary
NRC Health reported a Q2 GAAP loss driven by one-time stock comp charges, while revenue and recurring contract value grew and cash flow remained solid.
Key Events · Earnings and Guidance · NRC
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Q2 GAAP Loss on Stock Comp Spike
Net loss of $3.3M vs. $0.1M loss in Q2 2025, driven by $7.1M higher non-cash stock compensation from amendments to executive equity awards that accelerated $6.5M of expense.
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Revenue and TRCV Growth
Revenue rose 4% to $35.4M; total recurring contract value (TRCV) reached $151.9M, up 11% year-over-year, indicating healthy underlying demand.
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Cash Flow and Liquidity
Year-to-date operating cash flow was $8.6M and free cash flow $5.4M. Cash stands at $3.3M with $44.6M available on credit facilities; total debt is $90.3M.
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Active Buyback Program
Repurchased 397,381 shares for $7.4M in Q2 under the $60M authorization; $50.7M remains available through March 2028.
Analysis · NRC · Industrial Applications And Services
NRC Health swung to a $3.3M GAAP net loss in Q2 2026 from a near-breakeven quarter a year ago, entirely because of a $7.1M spike in non-cash stock compensation tied to amendments of executive equity awards. Revenue grew 4% to $35.4M and total recurring contract value jumped 11% to $151.9M, showing underlying demand is intact. Adjusted EBITDA of $9.4M and free cash flow of $5.4M year-to-date confirm the core business generates cash. The balance sheet carries $90.3M in total debt against just $3.3M of cash, but the company is compliant with covenants and has $44.6M of remaining borrowing capacity. The $60M buyback program remains active with $50.7M left. The headline loss is accounting noise, not operational deterioration.
At the time of this filing, NRC was trading at $19.58 on NASDAQ in the Industrial Applications And Services sector, with a market capitalization of approximately $441.3M. The 52-week trading range was $11.01 to $23.68. This filing was assessed with neutral market sentiment and an importance score of 7 out of 10.