Financial Performance - National HealthCare Corporation reported net operating revenues and grant income of $1,517,781,000 for the year ended December 31, 2025, a 16.1% increase from $1,307,382,000 in 2024[1] - The GAAP net income attributable to NHC for 2025 was $120,015,000, up from $101,927,000 in 2024, while adjusted net income increased by 35.4% to $104,067,000[2] - For Q4 2025, GAAP net income was $24,849,000 compared to $6,081,000 in Q4 2024, with adjusted net income rising 10.9% to $28,774,000[3] Operational Metrics - The company operates 80 skilled nursing facilities with 10,329 beds, 26 assisted living communities with 1,413 units, and other healthcare services as of February 1, 2026[5] - Average skilled nursing per diem for Medicare increased to $626.99 in Q4 2025 from $607.67 in Q4 2024, while total skilled nursing patient days rose to 740,388 from 728,486[12] Assets and Liabilities - Total assets as of December 31, 2025, were $1,526,419,000, slightly up from $1,524,429,000 in 2024[11] - NHC's current liabilities, excluding current long-term debt, increased to $246,132,000 in 2025 from $227,297,000 in 2024[11] Dividends and Acquisitions - The company declared dividends of $0.64 per common share for Q4 2025, compared to $0.61 in Q4 2024[10] - The company completed the acquisition of White Oak Manor on August 1, 2024, contributing to revenue growth[1] Future Outlook - Forward-looking statements indicate potential risks and uncertainties that may affect future performance[7]

Core Insights - National HealthCare Corporation (NHC) reported a 16.1% increase in net operating revenues and grant income for the year ended December 31, 2025, totaling $1,517,781,000 compared to $1,307,382,000 in 2024 [1] - The increase was attributed to an 8.4% rise in same-facility net operating revenues and the acquisition of White Oak Manor, which added 22 healthcare operations [1] - Adjusted net income for 2025 was $104,067,000, reflecting a 35.4% increase from $76,862,000 in 2024 [1] Financial Performance - For the year ended December 31, 2025, GAAP net income attributable to NHC was $120,015,000, up from $101,927,000 in 2024 [1] - GAAP diluted earnings per share increased to $7.67 in 2025 from $6.53 in 2024, while adjusted diluted earnings per share rose to $6.65 from $4.93 [1] - For the fourth quarter of 2025, GAAP net income was $24,849,000 compared to $6,081,000 in the same quarter of 2024, with adjusted net income at $28,774,000, a 10.9% increase from $25,954,000 [1] Operational Overview - As of February 1, 2026, NHC operates 80 skilled nursing facilities with 10,329 beds, 26 assisted living communities with 1,413 units, and other healthcare services including homecare and hospice agencies [1] - The company continues to provide a range of services including Alzheimer's care, pharmacy services, and management for third-party operators [1]

Operations Overview - As of December 31, 2025, National HealthCare Corporation operates or manages 80 skilled nursing facilities with a total of 10,329 licensed beds, 26 assisted living facilities with 1,413 units, and 34 homecare agencies [180]. - The overall occupancy rate for skilled nursing facilities increased to 89.7% in 2025, up from 88.6% in 2024 and 87.9% in 2023 [182]. - The company has 50 skilled nursing facilities rated 4 or 5 stars, representing 62.5% of its total facilities, compared to the industry average of 38.6% [185]. - The company is focused on expanding its post-acute and senior health care operations while enhancing existing services and partnerships with hospital systems and payors [183]. Financial Performance - Net patient revenues for the year ended December 31, 2025, were $1,315,545,000, an increase from $1,111,300,000 in 2024 [192]. - Total costs and expenses for 2025 were $1,389,429,000, leading to an income from operations of $128,352,000 [192]. - Net operating revenues and stimulus income for 2025 totaled $1,517,781,000, an increase of 16.1% compared to 2024 [200]. - Net patient revenues for 2025 were $1,469,631,000, reflecting a 17.4% increase from 2024 [203]. - GAAP net income attributable to NHC for 2025 was $120,015,000, up from $101,927,000 in 2024, representing an increase of 17.6% [201]. - Adjusted net income for 2025 was $104,067,000, compared to $76,862,000 in 2024, marking a 35.4% increase [201]. - Total costs and expenses for 2025 were $1,389,429,000, an increase of 14.1% from $1,217,487,000 in 2024 [208]. - Salaries, wages, and benefits accounted for 60.7% of net operating revenues in 2025, down from 62.0% in 2024 [196]. - Salaries, wages, and benefits increased by $110,150,000, or 13.6%, to $921,080,000 in 2025 [208]. Acquisitions and Growth - The company acquired the assets of White Oak Management, Inc., which included 15 skilled nursing facilities and 2 assisted living facilities, adding 1,928 licensed skilled nursing beds [187]. - The White Oak operations contributed $227,545,000 in net patient revenues for 2025, compared to $96,052,000 in 2024 [205]. Cash Flow and Liquidity - Net cash provided by operating activities for the year ended December 31, 2025, was $185,078,000, compared to $107,303,000 in 2024 [244]. - Net cash used in investing activities totaled $33,858,000 for the year ended December 31, 2025, significantly lower than $236,693,000 in 2024 [246]. - Net cash used in financing activities was $135,955,000 for the year ended December 31, 2025, compared to net cash provided of $100,344,000 in 2024 [248]. - The company expects to meet its short-term liquidity requirements primarily from cash flows from operating activities, with current cash on hand of $92,829,000 and unrestricted marketable equity securities of $162,972,000 [250]. Tax and Income Provisions - The income tax provision for 2025 was $39,826,000, with an effective tax rate of 24.5% [217]. - The income tax provision for 2024 was $34,322,000, reflecting an effective income tax rate of 25.2% [236]. Marketable Securities and Investments - The Company has available for sale marketable debt securities amounting to $123,293,000 as of December 31, 2025 [265]. - The fair value of marketable equity securities is approximately $180,169,000, with an investment in NHI comprising about $124,532,000, or 69.1% of the total [270]. - A hypothetical 10% change in quoted market prices would result in a related increase or decrease in the fair value of equity investments of approximately $18,016,000 [270]. - The Company does not currently use any derivative instruments to hedge interest rate exposure, and any future use would require approval from the Investment Committee [268]. Risk Management - Credit risk is managed by diversifying the fixed income portfolio to avoid concentrations in any single industry group or issuer [269]. - The Company has a self-insured policy for workers' compensation and general liability, with reserves reassessed quarterly [261]. - Professional liability claims have increased in the long-term care industry, which could materially affect the Company's financial position and results [262]. - The Company’s credit facility exposes it to variability in interest payments due to changes in Secured Overnight Financing Rate (SOFR) interest rates [267].

Core Insights - The elderly care sector is identified as a promising investment opportunity due to demographic changes driving earnings growth for many years to come [1] - Many stocks in the elderly care industry are currently trading significantly below their fair value, indicating potential for appreciation [1] Industry Summary - The demographic shift towards an aging population is expected to enhance the earnings potential of elderly care companies [1] - The market for elderly care is seen as underappreciated, with opportunities for investors to capitalize on undervalued stocks [1]

Financial Performance - Net operating revenues for Q3 2025 totaled $382,661,000, an increase of 12.5% compared to $340,198,000 in Q3 2024, driven by an 8.7% increase in same-facility revenues and the acquisition of White Oak Management[1] - Adjusted net income for Q3 2025 was $24,744,000, a 24.3% increase from $19,910,000 in Q3 2024, while GAAP net income was $39,239,000 compared to $42,789,000 in the same period last year[2] - GAAP diluted earnings per share for Q3 2025 were $2.50, down from $2.73 in Q3 2024, while adjusted diluted earnings per share increased to $1.58 from $1.27[2] - The company reported a total of $352,283,000 in costs and expenses for Q3 2025, up from $317,409,000 in Q3 2024[8] Patient Care Metrics - Total skilled nursing patient days increased to 740,373 in Q3 2025, up from 673,378 in Q3 2024, reflecting growth in Medicare and Managed Care patient days[9] - Average skilled nursing per diem for Medicare increased to $613.12 in Q3 2025 from $578.12 in Q3 2024, while Managed Care per diem decreased to $417.32 from $459.94[9] Assets and Cash Position - Cash, cash equivalents, and marketable securities rose to $297,383,000 as of September 30, 2025, compared to $216,185,000 at the end of 2024[8] - Total assets increased to $1,572,142,000 as of September 30, 2025, compared to $1,524,429,000 at the end of 2024[8] Dividends and Shareholder Returns - Dividends declared per common share increased to $0.64 in Q3 2025 from $0.61 in Q3 2024[8] Operational Overview - NHC affiliates operate 80 skilled nursing facilities with 10,329 beds, alongside 26 assisted living communities and other health care services[4]

Core Points - National HealthCare Corporation (NHC) announced a quarterly dividend of 64 cents per common share [1] - The dividend is for shareholders of record on December 31, 2025, and will be payable on January 30, 2026 [1] Company Summary - NHC is recognized as the nation's oldest publicly traded long-term health care company [1] - The announcement reflects NHC's commitment to returning value to its shareholders through regular dividend payments [1]

Operations and Facilities - As of September 30, 2025, the company operates or manages 80 skilled nursing facilities with a total of 10,329 licensed beds, 26 assisted living facilities with 1,413 units, and 34 homecare agencies[143]. - The overall occupancy rate in owned and leased skilled nursing facilities was 90.0% for the three months ending September 30, 2025, compared to 88.3% for the same period a year ago[144]. - The company has 47 skilled nursing facilities rated 4 or 5 stars, representing 59% of its total facilities, compared to 37% in the industry[148]. - The average census at skilled nursing facilities increased to 90.0% from 88.3% year-over-year[176]. - The average census at skilled nursing facilities increased to 89.6% for the nine months ended September 30, 2025, compared to 88.6% for the same period in 2024[188]. Financial Performance - For the three months ended September 30, 2025, net operating revenues increased by 12.5% to $382,661,000 compared to $340,198,000 for the same period in 2024[173]. - Net patient revenues rose by $42,315,000, or 12.9%, to $370,989,000 compared to $328,674,000 for the same quarter last year[175]. - Adjusted net income for the quarter was $24,744,000, reflecting a 24.3% increase from $19,910,000 in the same period of 2024[174]. - Net operating revenues increased by 20.6% for the nine months ended September 30, 2025, driven by a 9.2% increase in same-facility net operating revenues and the acquisition of White Oak[185]. - GAAP net income attributable to the company for the nine months ended September 30, 2025, was $95,166,000, a decrease from $95,846,000 in 2024, while adjusted net income increased by 47.9% to $75,293,000[186]. - Net patient revenues increased by $201,530,000, or 22.5%, compared to the same period last year[187]. Costs and Expenses - The total costs and expenses increased by $34,874,000, or 11.0%, to $352,283,000 from $317,409,000 in the prior year[178]. - Other operating expenses increased by $14,095,000, or 17.1%, to $96,604,000 for the three months ended September 30, 2025, compared to $82,509,000 for the same period in 2024[181]. - Total costs and expenses increased by $158,985,000, or 18.1%, to $1,036,033,000 for the nine months ended September 30, 2025[190]. - Salaries, wages, and benefits increased by $19,781,000, or 9.3%, to $233,176,000, with a percentage of net operating revenues decreasing to 60.9% from 62.7%[179]. - Salaries, wages, and benefits increased by $111,231,000, or 19.3%, to $687,840,000, with salaries as a percentage of net operating revenues decreasing to 60.8%[191]. Medicaid and Medicare Rates - The average Medicare per diem rate for skilled nursing facilities increased by 5.9% for the first nine months of 2025 compared to the same period in 2024[155]. - The fiscal year 2026 Medicare payment rates for skilled nursing facilities include a net increase of 3.2% compared to 2025 levels[153]. - The state of Tennessee's Medicaid increase is estimated to generate an additional $3,000,000 annually, or $750,000 per quarter, starting from fiscal year 2026[156]. - The state of South Carolina's Medicaid increase is estimated to generate an additional $4,200,000 annually, or $1,050,000 per quarter, starting from fiscal year 2026[157]. - Medicare per diem rates increased by 6.1%, while managed care per diem rates decreased by 7.1% compared to the same quarter last year[176]. Acquisitions and Partnerships - The company purchased the assets of White Oak Management, which included 15 skilled nursing facilities and 1,928 licensed skilled nursing beds[150]. - The White Oak operations contributed an increase of $20,026,000 in net patient revenues for the quarter ended September 30, 2025[177]. - The company is focusing on partnerships with hospital systems and payors to enhance its position in post-acute healthcare services[146]. Cash Flow and Liquidity - Cash provided by operating activities for the nine months ended September 30, 2025, was $168,271,000, an increase of 78.0% compared to $94,514,000 in the same period last year[201]. - Net cash used in investing activities was $20,924,000 for the nine months ended September 30, 2025, significantly lower than $225,048,000 for the same period in 2024[203]. - Net cash used in financing activities for the nine months ended September 30, 2025, was $92,735,000, a decrease from cash provided of $119,640,000 for the same period in 2024[205]. - Current cash on hand is $130,629,000, with unrestricted marketable equity securities valued at $166,754,000[207]. - The company has a borrowing capacity of $50 million on its available line of credit, which is expected to support both short-term and long-term liquidity requirements[208]. Marketable Securities - At September 30, 2025, the fair value of marketable equity securities was approximately $184,236,000, with $129.6 million (70.4%) invested in NHI[217]. - The company has net unrealized gains of $141.3 million in its equity securities, with $104.9 million related to the investment in NHI[217]. - The company has available for sale marketable debt securities amounting to $122,912,000 as of September 30, 2025[212]. - A hypothetical 10% change in quoted market prices would result in a related increase or decrease in the fair value of equity investments of approximately $18.4 million[217]. Workforce and Labor - The company faced workforce and labor shortages but is actively working to reduce agency nurse staffing expenses, which decreased to $1,207,000 from $3,099,000 year-over-year[179].

Core Insights - Recent developments in the lease renewal process between NHC and National Health Investors (NHI) may raise concerns for investors [1] Group 1: Industry Analysis - The elderly care sector is viewed as presenting significant investment opportunities due to demographic changes driving earnings growth for many years [1] - Many stocks in the elderly care industry are currently trading significantly below their fair value, indicating potential for appreciation [1]

Core Insights - The article emphasizes the dual tailwinds benefiting National HealthCare Corporation (NHC), which are a rapidly growing elderly population and a cooling labor market, expected to enhance NHC's long-term fundamentals [1] Group 1: Company Overview - NHC is positioned to capitalize on demographic trends, particularly the increasing elderly population, which is likely to drive demand for healthcare services [1] - The cooling labor market is anticipated to strengthen NHC's operational capabilities and cost management [1] Group 2: Investment Focus - The analysis focuses on under-the-radar companies with limited analyst coverage, particularly in defensive sectors such as healthcare, utilities, and consumer staples [1]

[Executive Summary](index=1&type=section&id=1.%20Executive%20Summary) NHC reported strong Q2 2025 financial performance driven by revenue growth and strategic acquisitions, despite a GAAP net income decrease due to non-operating factors [Financial Highlights (Q2 2025)](index=1&type=section&id=1.1%20Financial%20Highlights%20(Q2%202025)) NHC reported a significant increase in net operating revenues and adjusted net income for the second quarter of 2025, despite a decrease in GAAP net income compared to the prior year period | Metric | Q2 2025 (USD) | Q2 2024 (USD) | YoY Change | | :---------------------- | :-------- | :-------- | :--------- | | Net Operating Revenues | $374,910,000 | $300,658,000 | +24.7% | | GAAP Net Income | $23,722,000 | $26,844,000 | -11.6% | | Adjusted Net Income | $25,710,000 | $15,612,000 | +64.7% | | GAAP Diluted EPS | $1.52 | $1.73 | -12.1% | | Adjusted Diluted EPS | $1.65 | $1.00 | +65.0% | [Operational Drivers (Q2 2025)](index=1&type=section&id=1.2%20Operational%20Drivers%20(Q2%202025)) The increase in net operating revenues for Q2 2025 was primarily driven by growth in same-facility revenues and the strategic acquisition of White Oak Management, Inc - Same-facility net operating revenues increased by **9.6%** year-over-year[1](index=1&type=chunk) - The August 1, 2024 acquisition of White Oak Management, Inc. contributed to the revenue growth[1](index=1&type=chunk) [Company Overview](index=1&type=section&id=2.%20Company%20Overview) National HealthCare Corporation (NHC) is the oldest publicly traded senior health care company, offering a wide range of facilities and services [Business Operations](index=1&type=section&id=2.1%20Business%20Operations) National HealthCare Corporation (NHC) is the nation's oldest publicly traded senior health care company, operating a comprehensive range of facilities and services for themselves and third parties - As of August 1, 2025, NHC affiliates operate **80 skilled nursing facilities** with **10,329 beds**[4](index=4&type=chunk) - The company also operates **26 assisted living communities** (**1,413 units**), **9 independent living communities** (**777 units**), **3 behavioral health hospitals**, **34 homecare agencies**, and **33 hospice agencies**[4](index=4&type=chunk) - Additional services include Alzheimer's and memory care units, pharmacy services, rehabilitation services, and management/accounting services for third-party post-acute operators[4](index=4&type=chunk) [Financial Performance Analysis](index=2&type=section&id=3.%20Financial%20Performance%20Analysis) NHC's Q2 2025 financial performance features strong revenue growth, improved operational income, and balance sheet enhancements [Consolidated Statements of Operations](index=2&type=section&id=3.1%20Consolidated%20Statements%20of%20Operations) NHC's Q2 2025 consolidated statements of operations show strong revenue growth and improved income from operations, but GAAP net income was impacted by unrealized losses on marketable equity securities compared to gains in the prior year Consolidated Statements of Operations (Three Months Ended June 30, in thousands) | Metric | 2025 (USD thousands) | 2024 (USD thousands) | YoY Change | | :--------------------------------- | :----- | :----- | :--------- | | Net operating revenues and grant income | $374,910 | $300,658 | +24.7% | | Salaries, wages and benefits | $226,534 | $180,076 | +25.8% | | Income from operations | $34,090 | $22,520 | +51.4% | | Unrealized gains/(losses) on marketable equity securities | $(5,061) | $9,124 | N/A | | Net income attributable to NHC | $23,722 | $26,844 | -11.6% | | Diluted EPS | $1.52 | $1.73 | -12.1% | Consolidated Statements of Operations (Six Months Ended June 30, in thousands) | Metric | 2025 (USD thousands) | 2024 (USD thousands) | YoY Change | | :--------------------------------- | :----- | :----- | :--------- | | Net operating revenues and grant income | $748,607 | $597,834 | +25.2% | | Salaries, wages and benefits | $454,664 | $363,214 | +25.2% | | Income from operations | $64,857 | $38,195 | +69.8% | | Unrealized gains/(losses) on marketable equity securities | $5,921 | $23,523 | -74.8% | | Net income attributable to NHC | $55,927 | $53,057 | +5.4% | | Diluted EPS | $3.59 | $3.42 | +4.9% | - Dividends declared per common share increased to **$0.64** in Q2 2025 from **$0.61** in Q2 2024[8](index=8&type=chunk) [Balance Sheet Highlights](index=2&type=section&id=3.2%20Balance%20Sheet%20Highlights) As of June 30, 2025, NHC demonstrated improved liquidity and increased stockholders' equity, while reducing its overall debt position compared to December 31, 2024 Balance Sheet Data (in thousands) | Metric | June 30, 2025 (USD thousands) | December 31, 2024 (USD thousands) | Change (USD thousands) | | :--------------------------------------- | :-------------- | :---------------- | :----- | | Cash, cash equivalents and marketable securities | $257,628 | $216,185 | +$41,443 | | Total assets | $1,562,220 | $1,524,429 | +$37,791 | | Current and long-term debt | $110,000 | $137,000 | -$27,000 | | NHC stockholders' equity | $1,021,905 | $980,161 | +$41,744 | [GAAP to Non-GAAP Reconciliation](index=4&type=section&id=3.3%20GAAP%20to%20Non-GAAP%20Reconciliation) NHC provides non-GAAP adjustments to its financial results to offer a clearer view of core operational performance, excluding items such as unrealized gains/losses on marketable equity securities and one-time gains/expenses Non-GAAP Net Income Reconciliation (Three Months Ended June 30, in thousands) | Item | 2025 (USD thousands) | 2024 (USD thousands) | | :------------------------------------------ | :----- | :----- | | Net income attributable to NHC (GAAP) | $23,722 | $26,844 | | Unrealized (gains)/losses on marketable equity securities | $5,061 | $(9,124) | | Gain on sale of property and equipment | $(3,606) | - | | Acquisition-related expenses | - | $2,194 | | Employee retention credit | - | $(9,445) | | Non-GAAP Net income | $25,710 | $15,612 | Non-GAAP Diluted EPS Reconciliation (Three Months Ended June 30) | Item | 2025 (USD) | 2024 (USD) | | :------------------------------------------ | :----- | :----- | | GAAP diluted earnings per share | $1.52 | $1.73 | | Unrealized (gains)/losses on marketable equity securities | $0.32 | $(0.59) | | Gain on sale of property and equipment | $(0.23) | - | | Acquisition-related expenses | - | $0.14 | | Employee retention credit | - | $(0.61) | | Non-GAAP diluted earnings per share | $1.65 | $1.00 | [Operational Performance Analysis](index=4&type=section&id=4.%20Operational%20Performance%20Analysis) NHC's Q2 2025 operational performance reflects significant increases in skilled nursing per diem rates and patient days [Skilled Nursing Per Diems](index=4&type=section&id=4.1%20Skilled%20Nursing%20Per%20Diems) NHC experienced increases in average skilled nursing per diem rates across all payer types for both the second quarter and year-to-date periods of 2025, reflecting improved reimbursement rates Skilled Nursing Per Diems (Three Months Ended June 30) | Payer Type | 2025 (USD) | 2024 (USD) | Change (USD) | | :-------------------- | :----- | :----- | :----- | | Medicare | $614.85 | $577.71 | +$37.14 | | Managed Care | $486.17 | $447.96 | +$38.21 | | Medicaid | $286.43 | $264.49 | +$21.94 | | Private Pay and Other | $341.34 | $312.91 | +$28.43 | | Average Skilled Nursing Per Diem | $361.42 | $338.86 | +$22.56 | [Skilled Nursing Patient Days](index=4&type=section&id=4.2%20Skilled%20Nursing%20Patient%20Days) Total skilled nursing patient days saw a substantial increase in Q2 2025 and YTD 2025 across all payer categories, indicating higher utilization of NHC's facilities, even after exiting some facilities in the prior year Skilled Nursing Patient Days (Three Months Ended June 30) | Payer Type | 2025 (Days) | 2024 (Days) | Change (Days) | | :-------------------- | :------- | :------- | :------- | | Medicare | 83,615 | 74,602 | +9,013 | | Managed Care | 83,015 | 62,957 | +20,058 | | Medicaid | 368,687 | 279,504 | +89,183 | | Private Pay and Other | 194,202 | 150,234 | +43,968 | | Total Skilled Nursing Patient Days | 729,519 | 567,297 | +162,222 | - For the six months ended June 30, 2024, three skilled nursing facilities in Missouri that NHC exited on March 1, 2024, accounted for **20,267 patient days**[9](index=9&type=chunk) [Additional Disclosures](index=1&type=section&id=5.%20Additional%20Disclosures) This section clarifies non-GAAP financial measures and discusses risks associated with forward-looking statements [Non-GAAP Financial Measures Explanation](index=1&type=section&id=5.1%20Non-GAAP%20Financial%20Measures%20Explanation) NHC provides non-GAAP financial measures to offer investors a more consistent and accurate assessment of the company's ongoing operations and performance across periods, supplementing GAAP information - Non-GAAP figures are presented to help investors more accurately assess the ongoing nature of operations and measure performance consistently[5](index=5&type=chunk) - This additional non-GAAP information is not intended to be considered in isolation or as a substitute for GAAP financial information[5](index=5&type=chunk) [Forward-Looking Statements](index=1&type=section&id=5.2%20Forward-Looking%20Statements) The press release includes forward-looking statements that are subject to various risks and uncertainties, as detailed in NHC's filings with the S.E.C - Statements in the press release that are not historical facts are forward-looking statements[6](index=6&type=chunk) - These statements involve risks and uncertainties and are not guarantees of future performance[6](index=6&type=chunk) - Risks and uncertainties are detailed in reports filed with the S.E.C., including Forms 8-K, 10-Q, and 10-K[6](index=6&type=chunk)