National HealthCare Corporation — Third Quarter 2026 Earnings Summary

Financial Performance:

• Net operating revenues for the quarter ended September 30, 2026, totaled $407,971,000, an increase of 6.6% compared to $382,661,000 in the same period of 2025.
• GAAP net income attributable to NHC was $13,637,000 for the quarter, down from $39,239,000 in 2025.
• Adjusted net income for the quarter was $28,154,000, a 13.8% increase from $24,744,000 in 2025.
• GAAP diluted earnings per share were $0.85 for the quarter, compared to $2.50 in 2025.
• Adjusted diluted earnings per share were $1.76 for the quarter, compared to $1.58 in 2025.
• For the nine months ended September 30, 2026, net operating revenues were $1,197,817,000, up from $1,131,268,000 in 2025.
• GAAP net income attributable to NHC for the nine-month period was $89,813,000, compared to $95,166,000 in 2025.
• Adjusted net income for the nine-month period was $85,795,000, up from $75,293,000 in 2025.
• GAAP diluted earnings per share for the nine-month period were $5.66, compared to $6.10 in 2025.
• Adjusted diluted earnings per share for the nine-month period were $5.41, compared to $4.83 in 2025.
• Total costs and expenses for the quarter were $367,339,000, up from $352,283,000 in 2025.
• Salaries, wages, and benefits for the quarter were $251,937,000, compared to $233,176,000 in 2025.
• Interest expense for the quarter was $6,991,000, compared to $1,456,000 in 2025.
• Unrealized losses on marketable equity securities were $17,599,000 for the quarter, compared to unrealized gains of $20,827,000 in 2025.
• Cash, cash equivalents, and marketable securities were $221,325,000 as of September 30, 2026, compared to $255,801,000 as of December 31, 2025.
• Current and long-term debt increased to $502,063,000 as of September 30, 2026, from $40,000,000 as of December 31, 2025.
• Total assets were $2,068,196,000 as of September 30, 2026, compared to $1,526,419,000 as of December 31, 2025.
• NHC stockholders' equity was $1,124,920,000 as of September 30, 2026, compared to $1,068,772,000 as of December 31, 2025.
• Dividends declared per common share were $0.67 for the quarter, compared to $0.64 in 2025.

Business Segments and Product Lines:

• The increase in adjusted net income was primarily driven by the June 1, 2026, acquisition of five skilled nursing facilities with 639 licensed beds in Tennessee and South Carolina.
• The increase was also driven by the July 1, 2026, acquisition of real estate for 32 skilled nursing facilities and three independent living facilities from National Health Investors, Inc., totaling 4,825 licensed beds in Alabama, Florida, Missouri, South Carolina, Tennessee, and Virginia.
• As of November 1, 2026, NHC affiliates operate 80 skilled nursing facilities with 10,323 beds.
• NHC affiliates also operate 26 assisted living communities with 1,413 units, nine independent living communities with 775 units, three behavioral health hospitals, 34 homecare agencies, and 33 hospice agencies.
• Other services include Alzheimer's and memory care units, pharmacy services, a rehabilitation services company, and management and accounting services to third-party post-acute operators.
• Average Skilled Nursing Per Diem for the quarter ended September 30, 2026, was $368.20, up from $350.85 in 2025.
• Total Skilled Nursing Patient Days for the quarter ended September 30, 2026, were 796,122, up from 740,373 in 2025.
• Medicare Skilled Nursing Per Diem for the quarter was $623.72, up from $613.12 in 2025.
• Managed Care Skilled Nursing Per Diem for the quarter was $513.06, up from $427.11 in 2025.
• Medicaid Skilled Nursing Per Diem for the quarter was $291.06, up from $284.60 in 2025.
• Private Pay and Other Skilled Nursing Per Diem for the quarter was $352.96, up from $334.71 in 2025.

Other Key Points:

• The company provided non-GAAP financial measures, including adjusted net income and adjusted diluted earnings per share, to allow investors to assess the ongoing nature of operations.
• Reconciliation tables were provided for GAAP to non-GAAP items, including adjustments for unrealized gains/losses on marketable equity securities, stock-based compensation expense, and income tax provisions.
• The press release includes a standard caution regarding forward-looking statements and risks detailed in SEC filings.