National Research Corporation — Cyborg Score 6/10

Strategic Profile

NRC Health leverages proprietary analytics and AI capabilities (Huey AI) to help healthcare systems understand consumer behavior and optimize the patient journey. The company maintains a strong recurring revenue model (99% of total revenue) with Total Recurring Contract Value of $144.1M as of Q4 2025, positioned as a critical digital health infrastructure provider in a large, growing market for patient experience management.

Cyborg Score Rationale

NRC Health demonstrates solid fundamentals with strong recurring revenue, an 86% YoY increase in new sales (2025), and a 29% adjusted EBITDA margin. However, recent revenue headwinds (down 4% YoY in 2025, down 5% in Q4) and significant stock volatility (-19.54% post-earnings in Feb 2026) reflect near-term execution challenges and market uncertainty despite long-term strategic positioning.

Top Insights

• Strong recurring revenue model at 99% of total revenue with 8% YoY growth in Total Recurring Contract Value, providing revenue visibility and stability
• Recent Q4 2025 earnings miss (5% revenue decline YoY) triggered sharp selloff, signaling growth deceleration concerns despite improving sales pipeline (86% YoY new sales growth)
• Portfolio expanded with AI capabilities (Huey AI) and governance solutions, positioning company for digital transformation trends in healthcare
• Dividend-paying stock ($0.12-0.16 quarterly) with institutional backing, but valuation multiples under pressure given near-term revenue challenges

Named Competitors

• Press Ganey Solutions — Patient experience and clinical analytics platform for healthcare organizations
• Patient Engagement & Analytics — Patient experience management and data analytics for healthcare systems
• Healthcare Analytics & Engagement — Patient access and engagement platform for healthcare networks

Recent Developments

• (February 2026) Q4 2025 revenue of $35.2M (down 5% YoY), full-year $137.4M (down 4%); stock declined 19.54% post-earnings
• (February 2026) Total Recurring Contract Value increased 8% YoY to $144.1M; Full-year Adjusted EBITDA $40.2M (29% margin)
• (September 2025) Shane Harrison appointed as CFO, bringing 25+ years corporate finance and investor relations experience
• (Q2 2025) Achieved highest sequential TRCV growth (2%) since Q1 2021; awarded 2025 Best in KLAS Award for Healthcare Experience Management

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