NRC HEALTH Segments Disclosure
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(11) |
Segment Information |
The Company assesses segment reporting in accordance with ASC 280, Segment Reporting. Based on how the business is managed and the financial information reviewed by our Chief Operating Decision Maker (“CODM”), who is our Chief Executive Officer, the Company operates as one operating segment and one reportable segment.
During the year ended December 31, 2025, the Company changed the measures of operating results that are regularly reviewed by the CODM for purposes of assessing performance and allocating resources. Segment information presented reflects the measures currently reviewed by the CODM. The change in measures did not impact the Company’s determination of a single operating and reportable segment.
The Company provides analytics and insight solutions designed to measure and improve patient and employee experience for healthcare organizations. All solutions and operations are managed on a consolidated basis and are primarily delivered within the United States.
The CODM evaluates the Company’s performance and allocates resources based on consolidated net income, which is the primary measure used to assess results against forecasts and historical trends. The accounting policies of the segment are the same as those described in Note 1 – Summary of Significant Accounting Policies. Because the Company has a single segment, our segment results are identical to the amounts presented in our Consolidated Statements of Income, and we have no inter‑segment revenues or transfers.
In addition to consolidated net income, the CODM is regularly provided supplemental information regarding nonrecurring executive compensation (when applicable), noncash stock compensation expense, and the related income tax, as presented below (in thousands):
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2025 |
2024 |
2023 |
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Nonrecurring executive compensation |
$ | 6,640 | $ | - | $ | - | ||||||
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Tax benefit on nonrecurring executive compensation |
468 | - | - | |||||||||
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Noncash stock compensation |
3,312 | 284 | 935 | |||||||||
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Tax benefit on noncash stock compensation |
346 | 70 | 228 | |||||||||
As the Company has a reportable segment, segment assets are not tracked separately and are reported on a consolidated basis in the consolidated balance sheet. All long-lived assets were located in the United States as of December 31, 2025, and 2024.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 5, 2026 | Showing above |
| 2024 | Mar 17, 2025 | |
| 2023 | Feb 27, 2024 | |
| 2022 | Mar 3, 2023 | |
| 2021 | Mar 4, 2022 | |
| 2020 | Mar 5, 2021 | |
| 2019 | Mar 6, 2020 | |
| 2018 | Mar 8, 2019 | |
| 2017 | Mar 14, 2018 | |
| 2016 | Mar 3, 2017 | |
| 2015 | Mar 4, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.