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 in 2025.
• For the nine months ended September 30, 2026, net operating revenues were $1,197,817,000 compared to $1,131,268,000 in 2025.
• GAAP net income attributable to NHC for the quarter ended September 30, 2026, was $13,637,000, down from $39,239,000 in 2025.
• Adjusted net income for the quarter ended September 30, 2026, was $28,154,000, a 13.8% increase from $24,744,000 in 2025.
• For the nine months ended September 30, 2026, adjusted net income was $85,795,000 compared to $75,293,000 in 2025.
• GAAP diluted earnings per share were $0.85 for the quarter ended September 30, 2026, compared to $2.50 in 2025.
• Adjusted diluted earnings per share were $1.76 for the quarter ended September 30, 2026, compared to $1.58 in 2025.
• GAAP diluted earnings per share for the nine months ended September 30, 2026, were $5.66, compared to $6.10 in 2025.
• Adjusted diluted earnings per share for the nine months ended September 30, 2026, were $5.41, compared to $4.83 in 2025.
• Total costs and expenses for the quarter ended September 30, 2026, were $367,339,000, up from $352,283,000 in 2025.
• Income from operations for the quarter ended September 30, 2026, was $40,632,000, compared to $30,378,000 in 2025.
• Interest expense for the quarter ended September 30, 2026, was $6,991,000, compared to $1,456,000 in 2025.
• Unrealized losses on marketable equity securities were $17,599,000 for the quarter ended September 30, 2026, 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.
• Property and equipment, net, increased to $1,290,019,000 as of September 30, 2026, from $673,797,000 as of December 31, 2025.
• Dividends declared per common share were $0.67 for the quarter ended September 30, 2026, compared to $0.64 in 2025.

Business Segments and Product Lines

• Adjusted net income growth was primarily driven by the June 1, 2026, acquisition of five skilled nursing facilities with 639 licensed beds in Tennessee and South Carolina.
• Adjusted net income growth 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. (NHI).
• The 35 real estate assets acquired from NHI contain 4,825 licensed beds located 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.
• Average skilled nursing per diems for the quarter ended September 30, 2026, were $368.20, up from $350.85 in 2025.
• Medicare skilled nursing per diems increased to $623.72 in the quarter ended September 30, 2026, from $613.12 in 2025.
• Managed Care skilled nursing per diems increased to $513.06 in the quarter ended September 30, 2026, from $427.11 in 2025.
• Total skilled nursing patient days for the quarter ended September 30, 2026, were 796,122, compared to 740,373 in 2025.

Other Key Points

• The company operates as the nation's oldest publicly traded senior health care company.
• Non-GAAP financial measures were provided to help investors assess the ongoing nature of operations, excluding unrealized gains/losses on marketable equity securities, stock-based compensation, and other adjustments.
• A significant increase in debt ($462,063,000 increase) and property/equipment assets ($616,222,000 increase) occurred between December 31, 2025, and September 30, 2026, correlating with the acquisitions of skilled nursing facilities and real estate.
• The company disclosed a $18,325,000 non-GAAP adjustment related to "National management fee revenue from prior periods" for the nine months ended September 30, 2026.