National HealthCare Corporation (NYSE American: NHC), the nation's oldest publicly traded senior health care company, announced today net operating revenues and grant income for the year ended December 31, 2025 totaled $1,517,781,000 compared to $1,307,382,000 for the year ended December 31, 2024, an increase of 16.1%. The increase in net operating revenues for the 2025 year compared to the 2024 year was due to an 8.4% increase in same-facility net operating revenues, as well as the August 1, 2024 acquisition of White Oak Manor ("White Oak"). The White Oak operations consist of 22 healthcare operations, which includes 15 skilled nursing facilities, two assisted living facilities, four independent living facilities, and a long-term care pharmacy.

For the year ended December 31, 2025, the reported GAAP net income attributable to NHC was $120,015,000 compared to $101,927,000 for the 2024 year. Excluding the unrealized gains in our marketable equity securities portfolio and other non-GAAP adjustments, adjusted net income for the year ended December 31, 2025 was $104,067,000 compared to $76,862,000 for the 2024 year ^(*), an increase of 35.4%. GAAP diluted earnings per share were $7.67 and $6.53 for the years ended December 31, 2024 and 2023, respectively. Adjusted diluted earnings per share were $6.65 and $4.93 for the years ended December 31, 2025 and 2024, respectively ^(*).

For the quarter ended December 31, 2025, the reported GAAP net income attributable to NHC was $24,849,000 compared to $6,081,000 for the same period in 2024. Excluding the unrealized gains or losses in our marketable equity securities portfolio and other non-GAAP adjustments, adjusted net income for the quarter ended December 31, 2025 was $28,774,000 compared to $25,954,000 for the same period in 2024, an increase of 10.9% ^(*). The GAAP diluted earnings per share were $1.58 and $0.39 for the quarters ended December 31, 2025 and 2024, respectively. Adjusted diluted earnings per share were $1.83 and $1.66 for the quarters ended December 31, 2025 and 2024, respectively ^(*).

(*) - See the tables below that provide a reconciliation of GAAP to non-GAAP items.

About NHC

As of February 1, 2026, NHC affiliates operate for themselves and third parties 80 skilled nursing facilities with 10,329 beds. NHC affiliates also operate 26 assisted living communities with 1,413 units, nine independent living communities with 777 units, three behavioral health hospitals, 34 homecare agencies, and 33 hospice agencies. NHC's other services include Alzheimer's and memory care units, pharmacy services, a rehabilitation services company, and providing management and accounting services to third party post-acute operators. Other information about the company can be found on our web site at www.nhccare.com.

Non-GAAP Financial Presentation

The Company is providing certain non-GAAP financial measures as the Company believes that these figures are helpful in allowing investors to more accurately assess the ongoing nature of the Company's operations and measure the Company's performance more consistently across periods. Therefore, the Company believes this information is meaningful in addition to the information contained in the GAAP presentation of financial information. The presentation of this additional non-GAAP financial information is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP.

Forward-Looking Statements

Statements in this press release that are not historical facts are forward-looking statements. NHC cautions investors that any forward-looking statements made involve risks and uncertainties and are not guarantees of future performance. The risks and uncertainties are detailed from time to time in reports filed by NHC with the S.E.C., including Forms 8-K, 10-Q, and 10-K. All forward-looking statements represent NHC's best judgment as of the date of this release.

Consolidated Statements of Operations
(in thousands, except share and per share amounts)
			Three Months Ended						Years Ended
			December 31						December 31
				2025			2024			2025			2024
Revenues:
	Net patient revenues		$	373,686		$	357,344		$	1,469,631		$	1,251,759
	Other revenues			12,827			12,006			48,150			46,178
	Government stimulus income			-			-			-			9,445
		Net operating revenues and grant income		386,513			369,350			1,517,781			1,307,382

Costs and expenses:
	Salaries, wages and benefits			233,240			234,321			921,080			810,930
	Other operating			96,198			83,298			377,202			321,390
	Facility rent			12,189			11,378			46,227			43,182
	Depreciation and amortization			11,769			11,442			44,920			41,985
		Total costs and expenses		353,396			340,439			1,389,429			1,217,487

Income from operations				33,117			28,911			128,352			89,895

Non-operating income				4,236			4,825			18,107			19,690
Interest expense				(816	)		(2,347	)		(6,371	)		(4,135	)
Unrealized gains on marketable equity securities				(4,404	)		(25,332	)		22,344			30,958

Income before income taxes				32,133			6,057			162,432			136,408
Income tax provision				(6,939	)		(28	)		(39,826	)		(34,322	)
Net income				25,194			6,029			122,606			102,086

Net income attributable to noncontrolling interest				(345	)		52			(2,591	)		(159	)

Net income attributable to National HealthCare Corporation			$	24,849		$	6,081		$	120,015		$	101,927

Net income per common share
	Basic		$	1.60		$	0.39		$	7.76		$	6.62
	Diluted		$	1.58		$	0.39		$	7.67		$	6.53

Weighted average common shares outstanding
	Basic			15,502,990			15,420,658			15,472,185			15,393,782
	Diluted			15,744,478			15,665,025			15,646,338			15,598,528

Dividends declared per common share			$	0.64		$	0.61		$	2.53		$	2.42


	Balance Sheet Data		December 31			December 31
	(in thousands)			2025			2024

	Cash, cash equivalents and marketable securities		$	255,801		$	216,185
	Restricted cash, cash equivalents and marketable securities			159,848			163,795
	Current assets			461,820			424,408
	Property and equipment, net			673,797			684,289
	Total assets			1,526,419			1,524,429
	Current liabilities, excluding current long-term debt			246,132			227,297
	Current and long-term debt			40,000			137,000
	NHC stockholders' equity			1,068,772			980,161

Selected Operating Statistics
	Three Months Ended						Years Ended
	December 31						December 31
		2025			2024			2025			2024
Skilled Nursing Per Diems:
Medicare	$	626.99		$	607.67		$	616.75		$	586.76
Managed Care		539.69			490.41			486.56			468.23
Medicaid		289.05			279.02			285.46			275.78
Private Pay and Other		340.12			321.12			338.28			316.80

Average Skilled Nursing Per Diem	$	369.21		$	350.72		$	360.40		$	346.46		⁽¹⁾

Skilled Nursing Patient Days:
Medicare		83,750			84,809			336,120			320,524
Managed Care		82,425			76,996			330,424			276,019
Medicaid		370,805			374,755			1,473,029			1,281,020
Private Pay and Other		203,408			191,926			788,843			677,449

Total Skilled Nursing Patient Days		740,388			728,486			2,928,416			2,555,012		⁽¹⁾

⁽¹⁾ NHC exited three skilled nursing facilities in Missouri on March 1, 2024. For the year ended December 31, 2024, the exited Missouri skilled nursing facilities had an average skilled nursing per diem of $275.64 and 20,267 patient days.


The tables below provide reconciliations of GAAP to non-GAAP items (in thousands, except per share amounts):
	Three Months Ended						Years Ended
	December 31						December 31
		2025			2024			2025			2024

Net income attributable to National Healthcare Corporation	$	24,849		$	6,081		$	120,015		$	101,927
Non-GAAP adjustments
Unrealized gains on marketable equity securities		4,404			25,332			(22,344	)		(30,958	)
Operating results for newly-opened operations not at full capacity		-			(10	)		-			130
Gain on sale of unconsolidated company		-			-			-			(1,024	)
Gain on sale of property and equipment		-			-			(3,606	)		-
Stock-based compensation expense		900			1,098			4,399			4,160
Acquisition-related expenses		-			435			-			3,266
Employee retention credit		-			-			-			(9,445	)
Income tax provision on non-GAAP adjustments		(1,379	)		(6,982	)		5,603			8,806
Non-GAAP Net income	$	28,774		$	25,954		$	104,067		$	76,862

GAAP diluted earnings per share	$	1.58		$	0.39		$	7.67		$	6.53
Non-GAAP adjustments
Unrealized gains on marketable equity securities		0.28			1.62			(1.43	)		(1.98	)
Operating results for newly-opened operations not at full capacity		-			-			-			0.01
Gain on sale of unconsolidated company		-			-			-			(0.07	)
Gain on sale of property and equipment		-			-			(0.23	)		-
Stock-based compensation expense		0.06			0.07			0.28			0.28
Acquisition-related expenses		-			0.03			-			0.21
Employee retention credit		-			-			-			(0.61	)
Income tax provision on non-GAAP adjustments		(0.09	)		(0.45	)		0.36			0.56
Non-GAAP diluted earnings per share	$	1.83		$	1.66		$	6.65		$	4.93

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Brian F. Kidd, SVP/CFO

Phone: (615) 890-2020

NHC Reports 2025 Year End Earnings