Executive Summary

Net operating revenue rose 12.5% y/y to $382.661M, driven by 8.7% same‑facility growth and the White Oak acquisition; GAAP diluted EPS was $2.50 vs $2.73 y/y while adjusted diluted EPS increased 24% y/y to $1.58 .
Operating leverage improved y/y (EBIT margin 7.94%* vs 6.70%), but compressed q/q from 9.09% as labor and operating costs continued to grow; net income margin similarly improved y/y but was below the effect of last year’s larger securities gains .
Payer mix and volume were constructive: total skilled nursing patient days increased to 740,373 vs 673,378 y/y; however, Managed Care per diem dipped due to delayed quality incentive payments (ex‑incentives, MA per diem +2.7% y/y) .
Dividend maintained at $0.64 per share; record date Dec 31, 2025, payable Jan 30, 2026, reinforcing capital return stability .
No published earnings call transcript or formal guidance; narrative centered on same‑facility momentum, integration of White Oak, and timing effects on Managed Care per diem—elements likely to shape short‑term sentiment in absence of estimate benchmarks .

What Went Well and What Went Wrong

What Went Well
- Same‑facility net operating revenue growth of 8.7% y/y supported overall 12.5% y/y revenue growth; White Oak integration remains an additional tailwind .
- Adjusted diluted EPS rose to $1.58 from $1.27 y/y (+24.3%), reflecting improved core performance after stripping securities mark‑to‑market and other items .
- Patient volumes were robust: total skilled nursing patient days increased to 740,373 vs 673,378 y/y; Medicaid and Private Pay/Other day counts showed solid growth .
Note: The Q3 earnings press release did not include management quotes, and no Q3 earnings call transcript was available to extract quotations .
What Went Wrong
- EBIT margin compressed sequentially (7.94%* vs 9.09%* in Q2), as salaries, wages and benefits and other operating expenses increased q/q and y/y .
- Managed Care per diem declined due to delayed timing of NHC Advantage quality incentive payments; without timing delay, MA per diem would have been +2.7% y/y, highlighting a transitory headwind .
- GAAP net income declined y/y ($39.239M vs $42.789M) mainly due to a smaller unrealized gain on marketable securities in Q3 2025 vs Q3 2024 (+$20.827M vs +$32.767M), masking stronger adjusted results .

Metric	Q3 2024	Q2 2025	Q3 2025
Net Operating Revenues ($USD Millions)	$340.198	$374.910	$382.661
GAAP Diluted EPS ($)	$2.73	$1.52	$2.50
Adjusted Diluted EPS ($)	$1.27	$1.65	$1.58
Operating Income ($USD Millions)	$22.789	$34.090	$30.378
EBIT Margin %	6.70%*	9.09%*	7.94%*
Net Income Margin %	12.58%*	6.33%*	10.25%*
GAAP Net Income Attributable to NHC ($USD Millions)	$42.789	$23.722	$39.239

Revenue Mix

Metric	Q3 2024	Q2 2025	Q3 2025
Net patient revenues ($USD Millions)	$328.674	$363.349	$370.989
Other revenues ($USD Millions)	$11.524	$11.561	$11.672
Government stimulus income ($USD Millions)	$0.000	$0.000	$0.000

Key Cost Lines

Metric	Q3 2024	Q2 2025	Q3 2025
Salaries, wages and benefits ($USD Millions)	$213.395	$226.534	$233.176
Other operating ($USD Millions)	$82.509	$91.943	$96.604

KPIs: Per Diem Rates and Patient Days

KPI	Q3 2024	Q2 2025	Q3 2025
Medicare Per Diem ($)	$578.12	$614.85	$613.12
Managed Care Per Diem ($)	$459.94	$486.17	$417.32
Medicaid Per Diem ($)	$290.00	$286.43	$284.60
Private Pay/Other Per Diem ($)	$323.36	$341.34	$334.71
Average Skilled Nursing Per Diem ($)	$350.85	$361.42	$350.85
Medicare Patient Days	79,957	83,615	82,501
Managed Care Patient Days	70,635	83,015	81,338
Medicaid Patient Days	344,940	368,687	369,895
Private Pay/Other Patient Days	177,846	194,202	206,639
Total Skilled Nursing Patient Days	673,378	729,519	740,373

Footnotes:

(1) NHC exited three Missouri SNFs on March 1, 2024; 2024 figures include those operations as noted .
(2) Managed Care per diem lower due to delayed timing of incentive quality payments from NHC Advantage; excluding incentive timing, Medicare Advantage per diem +2.7% y/y in Q3 2025 .

Metric	Period	Previous Guidance	Current Guidance	Change
Dividend per common share	Next payable Jan 30, 2026	$0.64 (prior quarterly dividend)	$0.64 (record Dec 31, 2025; payable Jan 30, 2026)	Maintained
Financial guidance (revenue/margins/OpEx/tax)	FY/Q4	None provided	None provided	Maintained

No formal quantitative guidance was issued in the Q3 materials .

Note: No Q3 2025 earnings call transcript was available; themes reflect company press releases and disclosures .

Topic	Previous Mentions (Q1 and Q2 2025)	Current Period (Q3 2025)	Trend
Same‑facility revenue growth	Q1: +8.5% y/y; Q2: +9.6% y/y	+8.7% y/y	Stable high single‑digit
White Oak acquisition contribution	Acquisition closed Aug 1, 2024; cited as revenue driver in Q1/Q2	Continues to augment growth	Ongoing integration tailwind
Managed Care per diem/incentives	Higher per diems in Q1/Q2 (e.g., Q2 Managed Care $486.17)	Per diem lower due to delayed quality incentives; ex‑incentives +2.7% y/y	Timing headwind; underlying trend intact
Labor costs	Salaries/wages $228.130M (Q1), $226.534M (Q2)	$233.176M (Q3)	Up q/q; persistent pressure
Volume/patient days	Total days 718,136 (Q1), 729,519 (Q2)	740,373 (Q3)	Improving volumes

Strategic emphasis remained on underlying same‑facility growth complemented by White Oak, with Q3 y/y revenue up 12.5% and same‑facility growth of 8.7% .
Company highlighted a timing effect on Managed Care per diems from delayed quality incentive payments; excluding timing, MA per diem rose 2.7% y/y in Q3 .
Balance sheet remained solid with cash, cash equivalents and marketable securities of $297.383M and debt reduced to $73.125M as of Sept 30, 2025 .

Note: The earnings press release did not include management quotes, and no Q3 earnings call transcript was available .

No earnings call transcript was available for Q3 2025; therefore, no Q&A themes or clarifications could be extracted .

S&P Global consensus estimates for Q3 2025 were not available for EPS or revenue; therefore, a beat/miss analysis versus consensus cannot be determined. Values retrieved from S&P Global.
Actuals reported: Revenue $382.661M and GAAP diluted EPS $2.50; Adjusted diluted EPS $1.58 .

Core performance improved: adjusted diluted EPS +24% y/y to $1.58, underscoring strength beyond securities mark‑to‑market volatility .
Operating momentum continues with 8.7% same‑facility growth and incremental contribution from White Oak; total patient days reached 740K+ .
Watch near‑term margin cadence: EBIT margin improved y/y but fell q/q amid higher labor and operating costs; monitor wage trends and staffing dynamics into Q4 and FY26 (EBIT margin 7.94%* vs 9.09%* in Q2) .
Managed Care per diem softness appears timing‑related; ex‑incentives, MA per diem was +2.7% y/y, suggesting underlying rate integrity .
Balance sheet flexibility: $297M cash and marketable securities with debt reduced to $73M may support continued dividends and optionality for capex or tuck‑ins .
Absence of guidance and a call transcript limits visibility; traders should key on upcoming Medicaid/Medicare rate settings, quality incentive timing normalization, and continued volume trends .
Dividend maintained at $0.64 highlights capital return consistency; ex‑dividend/record dates may influence short‑term flows .

S&P Global disclaimer: Metrics marked with * (EBIT Margin %, Net Income Margin %) are values retrieved from S&P Global.