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NH

NATIONAL HEALTHCARE CORP (NHC)·Q2 2025 Earnings Summary

Executive Summary

  • Net operating revenues rose to $374.91M (+24.7% YoY) on 9.6% same-facility growth and contributions from the White Oak acquisition; GAAP diluted EPS was $1.52 (vs $1.73 YoY), while adjusted diluted EPS improved to $1.65 (vs $1.00 YoY) .
  • Operating income increased to $34.09M (vs $22.52M YoY; vs $30.77M QoQ), reflecting improved core profitability, while GAAP EPS was weighed by a $5.06M unrealized securities loss (Q1 had +$10.98M) .
  • Patient days and per diems strengthened across payers; total SNF patient days reached 729,519 (vs 567,297 YoY; vs 718,136 QoQ), and average per diem rose to $361.42 (vs $338.86 YoY; vs $360.14 QoQ) .
  • Dividend maintained at $0.64 for Q2 (raised 4.9% in May), with the August 8 declaration payable October 31, 2025 supporting shareholder return continuity .
  • Wall Street consensus EPS and revenue for Q2 2025 were unavailable via S&P Global, limiting beat/miss comparisons (values retrieved from S&P Global).

What Went Well and What Went Wrong

What Went Well

  • Strong top-line growth: net operating revenues of $374.91M (+24.7% YoY) driven by 9.6% same-facility revenue growth and White Oak contributions; “The increase…was due to a 9.6% increase in same-facility net operating revenues, as well as the August 1, 2024 acquisition of White Oak…” .
  • Core profitability improved: operating income rose to $34.09M (vs $22.52M YoY; vs $30.77M QoQ), and adjusted net income increased to $25.71M (+64.7% YoY) with adjusted diluted EPS at $1.65 (vs $1.00 YoY) .
  • Volume and pricing tailwinds: total SNF patient days expanded to 729,519 (vs 567,297 YoY; vs 718,136 QoQ) and average per diem increased to $361.42 (vs $338.86 YoY; vs $360.14 QoQ), supporting revenue quality .

What Went Wrong

  • GAAP earnings compression: diluted EPS fell to $1.52 (vs $1.73 YoY), primarily due to a $5.06M unrealized loss in marketable equity securities versus a $9.12M gain in Q2 2024 and a $10.98M gain in Q1 2025 .
  • Cost pressure: salaries, wages and benefits increased to $226.53M (vs $180.08M YoY; vs $228.13M QoQ), reflecting ongoing labor cost inflation and integration scale .
  • Interest expense remained a headwind at $1.99M (vs ~$0 YoY; vs $2.11M QoQ), limiting the flow-through of operating gains to net results .

Financial Results

Quarterly Financials vs Prior Periods

MetricQ2 2024Q4 2024Q1 2025Q2 2025
Net Operating Revenues and Grant Income ($USD Millions)$300.658 $369.350 $373.697 $374.910
Net Patient Revenues ($USD Millions)$279.918 $357.344 $361.607 $363.349
GAAP Diluted EPS ($)$1.73 $0.39 $2.07 $1.52
Adjusted Diluted EPS ($)$1.00 $1.66 $1.59 $1.65
Operating Income ($USD Millions)$22.520 $26.564 $30.767 $34.090
Net Income Attributable to NHC ($USD Millions)$26.844 $6.081 $32.205 $23.722
Unrealized Gains/(Losses) on Marketable Securities ($USD Millions)$9.124 $(25.332) $10.982 $(5.061)
Interest Expense ($USD Millions)$0.000 $2.347 $2.106 $1.993

Margins (S&P Global)

MetricQ2 2024Q4 2024Q1 2025Q2 2025
EBIT Margin %6.70%*7.83%*8.23%*9.09%*
Net Income Margin %12.58%*1.65%*8.62%*6.33%*
Values retrieved from S&P Global.*

Segment/Revenue Components

MetricQ2 2024Q4 2024Q1 2025Q2 2025
Net Patient Revenues ($USD Millions)$279.918 $357.344 $361.607 $363.349
Other Revenues ($USD Millions)$11.295 $12.006 $12.090 $11.561
Government Stimulus Income ($USD Millions)$9.445 $0.000 $0.000 $0.000

KPIs – Skilled Nursing Per Diems and Patient Days

KPIQ2 2024Q4 2024Q1 2025Q2 2025
Average SNF Per Diem ($)$338.86 $350.72 $360.14 $361.42
Total SNF Patient Days567,297 728,486 718,136 729,519
Medicare Per Diem ($)$577.71 $607.67 $612.13 $614.85
Medicare Patient Days74,602 84,809 86,254 83,615
Managed Care Per Diem ($)$447.96 $490.41 $492.40 $486.17
Managed Care Patient Days62,957 76,996 83,646 83,015
Medicaid Per Diem ($)$264.49 $279.02 $281.67 $286.43
Medicaid Patient Days279,504 374,755 363,642 368,687
Private Pay Per Diem ($)$312.91 $321.12 $337.04 $341.34
Private Pay Patient Days150,234 191,926 184,594 194,202

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Dividend per Common Share ($)Q2 2025$0.61 declared in prior quarter $0.64 declared Aug 8, 2025; payable Oct 31, 2025 Raised (announced May 8, 2025 +4.9%)
Note: No formal revenue, margin, OpEx, OI&E, or tax-rate guidance was provided in Q2 materials; the press release and 8-K focused on reported results .

Earnings Call Themes & Trends

TopicPrevious Mentions (Q4 2024 and Q1 2025)Current Period (Q2 2025)Trend
White Oak acquisition integrationAcquisition closed Aug 1, 2024; cited as revenue driver in Q4 and Q1 Continued contribution to revenue growth; cited alongside 9.6% same-facility growth Ongoing integration; stable contribution
Labor cost inflationSalaries/wages $234.32M (Q4) and $228.13M (Q1) Salaries/wages $226.53M (Q2) High but stabilizing QoQ
Payer mix and pricingPer diem momentum (Q4/Q1) across payers Further per diem increases; Medicaid per diem up; total patient days up QoQ/YoY Improving pricing/volume
Regulatory/legal backdropRoutine forward-looking risk disclosures External shareholder investigation notice in July (contextual) Heightened legal attention

Management Commentary

  • “The increase in net operating revenues for the second quarter of 2025 compared to the second quarter of 2024 was due to an 9.6% increase in same-facility net operating revenues, as well as the August 1, 2024 acquisition of White Oak Management, Inc. (‘White Oak’).”
  • Non-GAAP framing: “The Company is providing certain non-GAAP financial measures…to allow investors to more accurately assess the ongoing nature of the Company’s operations and measure the Company’s performance more consistently across periods.”
  • Scale and footprint confirmation (context): NHC affiliates operate 80 SNFs, 26 ALFs, 9 ILFs, 3 behavioral health hospitals, 34 homecare agencies, and 33 hospice agencies as of Aug 1, 2025 .

Q&A Highlights

  • No public earnings call transcript was available in the Q2 2025 period; Q&A themes and clarifications are therefore not accessible from primary-source transcripts. The analysis relies on the Q2 press release and 8-K exhibits .

Estimates Context

  • Consensus EPS and revenue for Q2 2025 were unavailable via S&P Global; as a result, beat/miss analysis versus Wall Street was not possible (values retrieved from S&P Global).
  • Actuals: GAAP diluted EPS $1.52 and net operating revenues $374.91M for Q2 2025 .
MetricQ2 2025 ConsensusQ2 2025 Actual
Primary EPS Consensus Mean ($)N/A*$1.52
Revenue Consensus Mean ($USD Millions)N/A*$374.910
Values retrieved from S&P Global.*

Key Takeaways for Investors

  • Core operations strengthened: operating income rose to $34.09M, with adjusted diluted EPS up YoY to $1.65, indicating improved underlying profitability despite market securities volatility affecting GAAP EPS .
  • Revenue quality improved: 9.6% same-facility growth plus White Oak contributions lifted net operating revenues to $374.91M (+24.7% YoY) .
  • Volume and pricing tailwinds: total patient days reached 729,519 and average per diem rose to $361.42, supporting sustained revenue momentum across payers .
  • Watch non-operating swings: a $5.06M unrealized loss drove GAAP EPS compression vs prior year; earnings volatility from securities marks remains an overhang .
  • Cost discipline needed: salaries/wages stayed elevated at $226.53M; continued labor management and integration synergies will be key to margin expansion .
  • Shareholder return: dividend at $0.64 per share (raised 4.9% in May) underscores capital return consistency amid growth investments .
  • Near-term focus: monitor reimbursement dynamics, labor cost trends, and further integration benefits from White Oak; absent consensus estimates, investors should anchor to sequential operating income/margin progression .