NHC Revenue Jumps 25%
National HealthCare (NYSEMKT:NHC), a leading provider of post-acute healthcare services across the southeastern United States, released its second quarter 2025 results on August 8, 2025. The headline news was a sharp jump in revenue and strong adjusted profits, supported by new facilities from a recent acquisition, with GAAP net operating revenue reaching $374.9 million--up 24.7% compared to the prior year. Non-GAAP earnings per share rose to $1.65, up 64.7% year over year, though GAAP earnings per share declined to $1.52 from $1.73 in Q2 2024, due to unrealized losses in the company’s investment portfolio. There were no Wall Street estimates prior to this release, but results showed clear operational and financial progress. Operational earnings (non-GAAP) improved, the facility network expanded, and same-facility growth remained strong, with same-facility net operating revenues increasing 9.6%, though cost pressures and investment volatility appeared on the bottom line.
National HealthCare operates a broad network of healthcare facilities, including skilled nursing, assisted living, independent living, behavioral health hospitals, homecare, and hospice locations. Its primary business involves providing post-acute care, or care after hospitalization, helping patients recover or manage chronic conditions. It generates revenue from Medicare, Medicaid, private insurance, and self-pay patients, with government reimbursements playing a major role in its operations.
Recently, the company’s focus has been on expanding its network and maintaining high-quality patient care. Regulatory compliance remains a top priority, as it enables the company to receive payments from government programs. Another key factor for success is quality ratings: 57% of the company’s skilled nursing facilities scored 4 or 5 stars in the federal Centers for Medicare Medicaid Services (CMS) rating system as of December 31, 2024--higher than the industry average of 35%. Diversifying services also helps reduce risk and strengthen its position in the market.
Source Fool.com
