Concentra Group Holdings Parent, Inc. Announces Results For Its Second Quarter Ended June 30, 2026 and Raises FY 2026 Guidance
Matt DiCanio to become president and CEO and Keith Newton to transition to executive chairman, effective Nov. 1, 2026
DALLAS--(BUSINESS WIRE)-- Concentra Group Holdings Parent, Inc. (“Concentra”, the “Company”, “we”, “us”, or “our”) (NYSE: CON), the nation’s largest provider of occupational health services by number of locations, today announced results for the second quarter ended June 30, 2026, declaration of a cash dividend, and raised its full-year 2026 guidance. The quarter included revenue growth of 10.0%, net income attributable to the Company growth of 46.5%, Adjusted EBITDA growth of 22.5% and a net leverage ratio of 2.99x.
As part of a multiyear succession process unanimously approved by Concentra’s board of directors (the “Board”), effective as of November 1, 2026, (i) Matt DiCanio, president and chief financial officer, will become Concentra’s president and chief executive officer and serve as a Class III director on the Board, and (ii) Keith Newton will transition from chief executive officer and director to executive chairman of the Board. Additionally, Robert Ortenzio has notified the Board of his intent to resign from the role of chairman of the Board while continuing to serve as a director on the Board, effective as of November 1, 2026. The planned succession is designed to provide leadership continuity and support continued execution of the Company’s strategy.
“Leading Concentra and our dedicated colleagues over the last decade has been a tremendous privilege, and I am proud of what we have built together: a leader in occupational health,” said Keith Newton. “Our momentum reflects clear priorities and a team committed to delivering results. Matt has been instrumental in shaping that strategy and driving Concentra’s performance, making this the right time to transition leadership."
Matt DiCanio added, “Our strong performance reflects the strength of our strategy, our operating model and our people. As CEO, my priorities are to deliver high-quality care, create meaningful value for customers and patients, and pursue disciplined growth. As Concentra approaches its 50th year, our experienced leadership team, operating leverage, and steadfast commitment to our mission position us well for continued growth.”
Second Quarter 2026 Highlights
- Revenue of $606.0 million, an increase of 10.0% from $550.8 million in Q2 2025
- Net income of $67.3 million, an increase of 45.7% from $46.2 million in Q2 2025
- Net income attributable to the Company of $65.3 million, and Adjusted Net Income Attributable to the Company of $66.7 million, an increase of 46.5% and 39.7% over prior year, respectively
- Earnings per share of $0.51 and Adjusted Earnings per Share of $0.52, an increase of $0.16 and $0.15 over prior year, respectively
- Adjusted EBITDA of $140.9 million, an increase of 22.5% from $115.0 million in Q2 2025
- Patient visits of 3,610,934, or 56,421 visits per day, an increase of 2.6% from 55,005 visits per day in Q2 2025
- Revenue per visit of $152.67, an increase of 4.6% from $145.92 in Q2 2025
- Net cash provided by operating activities of $135.2 million and Free Cash Flow of $121.0 million, an increase of 53.0% and 91.6% over prior year, respectively
- Capital expenditures of $15.7 million, a decrease of 37.9% from $25.2 million in Q2 2025
- Repurchases of approximately 0.4 million shares of common stock totaling $11.0 million
- Cash balance of $158.0 million and a net leverage ratio of 2.99x
- Total occupational health centers of 633, compared to 628 at the end of Q2 2025
- Opened one de novo occupational health center
- Total onsite health clinics of 415, compared to 406 at the end of Q2 2025
The definition of Adjusted EBITDA and a reconciliation of net income to Adjusted EBITDA are presented in table X of this release. The definition of Adjusted Earnings per Share and a reconciliation of net income attributable to the Company and earnings per share on a fully diluted basis to Adjusted Net Income Attributable to the Company and Adjusted Earnings per Share on a fully diluted basis are presented in table XI of this release. The definition of Free Cash Flow and a reconciliation of net cash provided by operating activities to Free Cash Flow are presented in table XII of this release.
Balance Sheet
As of June 30, 2026, our balance sheet reflected cash of $158.0 million, total debt of $1,573.6 million and total assets of $3,010.3 million. Concentra’s net leverage ratio as of June 30, 2026 was 2.99x, which was in compliance with the financial covenant under our credit agreement.
Cash Flow
Cash flows provided by operating activities in the second quarter ended June 30, 2026 totaled $135.2 million compared to $88.4 million for the same quarter of the prior year. The increase in year-over-year cash flow from operations was primarily due to an increase in net income from organic growth and through acquisitions and de novos, as well as year-over-year variances in timing associated with payments of current liabilities. During the second quarter ended June 30, 2026, cash flow from investing activities resulted in cash used of $14.2 million, including capital expenditures of $15.7 million, partially offset by proceeds from sale of assets of $1.5 million. Concentra had Free Cash Flow of $121.0 million in the second quarter ended June 30, 2026, compared to $63.2 million for the same quarter of the prior year. Cash flow from financing activities used $24.7 million for the quarter, driven primarily by $11.0 million in repurchases of shares of common stock and $8.0 million in dividend payments. This resulted in a net increase in cash of $96.3 million for the quarter.
Dividend
On August 5, 2026, the Board declared a cash dividend of $0.0625 per share. The dividend will be payable on or about August 28, 2026, to stockholders of record as of the close of business on August 20, 2026.
There is no assurance that future dividends will be declared. The declaration and payment of dividends in the future are at the discretion of the Board after taking various factors into account, including, but not limited to, the Company’s financial condition, operating results, available cash and current and anticipated cash needs, the terms of indebtedness, and other factors the Board may deem to be relevant.
Leadership Transition
As executive chairman, Keith Newton will continue to support strategic initiatives and leadership development, while providing continuity through the transition. Newton has served as Concentra’s chief executive officer for the past decade, helping establish the Company as the nation’s leading provider of occupational health services by number of locations and guiding its transition to an independent publicly traded company.
“Keith’s leadership has been instrumental in Concentra’s growth, strong performance, and distinctive culture,” said Robert Ortenzio, chairman of the Board. “The Board is grateful for his many contributions as chief executive officer, and we are pleased that Concentra will continue to benefit from his experience and leadership as executive chairman.”
DiCanio has served as Concentra’s president since 2023 and chief financial officer since 2024. During his 11-year tenure, his responsibilities have spanned clinical functions, operations, sales, marketing, corporate strategy, finance and business development. He has also led multiple business units and major acquisition integrations and played an integral role in Concentra’s transition to a publicly traded company.
“Matt has played a pivotal role in shaping Concentra’s strategy, performance, and growth,” Ortenzio said. “His extensive knowledge of the business, proven leadership, and commitment to Concentra’s mission and culture make him the right leader to guide the Company as it approaches its 50th year and builds for the future.”
The Company expects to announce its chief financial officer succession plan prior to the leadership transition taking effect on November 1, 2026.
2026 Business Outlook
Concentra raised its financial guidance for 2026. We now expect to deliver the following results:
- Revenue in the range of $2.325 billion to $2.375 billion
- Adjusted EBITDA in the range of $485 million to $495 million
- Net leverage ratio below 3.0x
- Free Cash Flow in the range of $220 million to $240 million
- Capital expenditures in the range of $70 million to $80 million
A reconciliation of full year 2026 Adjusted EBITDA expectations to net income is presented in table XIII of this release. A reconciliation of full year 2026 Free Cash Flow expectations to net cash provided by operating activities is presented in table XIV of this release.
Company Overview
Concentra is the largest provider of occupational health services in the United States by number of locations, with the mission of improving the health of America’s workforce, one patient at a time. Our approximately 13,000 colleagues and affiliated physicians and clinicians support the delivery of an extensive suite of services, including occupational and consumer health services and other direct-to-employer care. We support the care of approximately 54,000(1) patients each business day on average across 46 states and the District of Columbia at our 633 occupational health centers, 415 onsite health clinics at employer worksites, and Concentra Telemed as of June 30, 2026.
|
(1) As of TTM June 30, 2026. |
Conference Call
Concentra will host a conference call regarding its second quarter financial results and business outlook on Friday, August 7, 2026, at 9 a.m. Eastern Time. The conference call will be a live webcast and can be accessed via this Earnings Call Webcast Link or via Concentra’s website at https://ir.concentra.com. A replay of the webcast will be available shortly after the call at the same locations.
Participants may join the audio-only version of the webcast or participate in the question-and-answer session by calling:
Toll Free: 888-506-0062
International: 973-528-0011
Participant Access: All dial-in participants should ask to join the Concentra call.
Certain statements contained herein that are not descriptions of historical facts are “forward-looking” statements (as such term is defined in the Private Securities Litigation Reform Act of 1995), including statements related to Concentra’s 2026 and long-term business outlook. Because such statements include risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements due to factors including the following:
- The frequency of work-related injuries and illnesses;
- Adverse changes to our relationships with employer customers, third-party payors, workers’ compensation provider networks or employer services networks;
- Changes to regulations, new interpretations of existing regulations, or violations of regulations;
- State fee schedule changes undertaken by state workers’ compensation boards or commissions and other third-party payors;
- Our ability to realize reimbursement increases at rates sufficient to keep pace with the inflation of our costs;
- Labor shortages, increased employee turnover or costs, and union activity could significantly increase our operating costs;
- Our ability to compete effectively with other occupational health centers, onsite health clinics at employer worksites, and healthcare providers;
- The impacts of any security breaches, cyberattacks, loss of data, or cybersecurity threats or incidents involving our, or our third-party vendors’, information technology systems, and any failure to comply with legal requirements related to data privacy, interoperability or data protection, including those governing the privacy and security of health information or other regulated, sensitive or confidential information;
- Negative publicity which can result in increased governmental and regulatory scrutiny and possibly adverse regulatory changes;
- Significant legal actions could subject us to substantial uninsured liabilities;
- Litigation and other legal and regulatory proceedings in the course of our business that could adversely affect our business and financial statements;
- Insurance coverage may not be sufficient to cover losses we may incur;
- Acquisitions may use significant resources, may be unsuccessful, and could expose us to unforeseen liabilities;
- Our exposure to additional risk due to our reliance on third parties in many aspects of our business;
- Our ability to manage relationships with managed affiliated professional medical groups (“Managed PCs”);
- Our facilities are subject to extensive federal and state laws and regulations relating to the privacy of individually identifiable information;
- Compliance with applicable data interoperability and information blocking rules;
- Facility licensure requirements in some states are costly and time-consuming, limiting or delaying our operations;
- Our ability to adequately protect and enforce our intellectual property and other proprietary rights;
- Adverse economic conditions in the U.S. or globally;
- Any negative impact on the global economy and capital markets resulting from geopolitical tensions;
- The impact of impairment of our goodwill and other intangible assets;
- Our ability to maintain satisfactory credit ratings;
- The effects of the Separation on our business;
- The negative impact of public threats such as a global pandemic or widespread outbreak of an infectious disease;
- The loss of key members of our management team;
- Our ability to attract and retain talented, highly skilled employees and a diverse workforce, and the succession of our senior management;
- Climate change, or legal, regulatory or market measures to address climate change;
- Increasing scrutiny and rapidly evolving expectations from stakeholders regarding ESG matters; and
- Changes in tax laws or exposures to additional tax liabilities.
Except as required by applicable law, including the securities laws of the United States and the rules and regulations of the Securities and Exchange Commission, we are under no obligation to publicly update or revise any forward-looking statements, whether as a result of any new information, future events, or otherwise. You should not place undue reliance on our forward-looking statements. Although we believe that the expectations reflected in our forward-looking statements are reasonable, we cannot guarantee future results or performance.
|
I. Condensed Consolidated Statements of Operations For the Three Months Ended June 30, 2026 and 2025 (In thousands, except per share amounts, unaudited) |
|||||||||||
|
|
|
Three Months Ended June 30, |
|
|
|||||||
|
|
|
|
2026 |
|
|
|
2025 |
|
|
% Change |
|
|
Revenue |
|
$ |
606,030 |
|
|
$ |
550,785 |
|
|
10.0 |
% |
|
Costs and expenses: |
|
|
|
|
|
|
|||||
|
Cost of services, exclusive of depreciation and amortization |
|
|
413,933 |
|
|
|
389,334 |
|
|
6.3 |
|
|
General and administrative, exclusive of depreciation and amortization(1) |
|
|
56,677 |
|
|
|
52,931 |
|
|
7.1 |
|
|
Depreciation and amortization |
|
|
19,899 |
|
|
|
18,998 |
|
|
4.7 |
|
|
Total costs and expenses |
|
|
490,509 |
|
|
|
461,263 |
|
|
6.3 |
|
|
Other operating (expense) income |
|
|
(453 |
) |
|
|
20 |
|
|
N/M |
|
|
Income from operations |
|
|
115,068 |
|
|
|
89,542 |
|
|
28.5 |
|
|
Other income and expense: |
|
|
|
|
|
|
|||||
|
Interest expense |
|
|
(25,723 |
) |
|
|
(28,193 |
) |
|
(8.8 |
) |
|
Income before income taxes |
|
|
89,345 |
|
|
|
61,349 |
|
|
45.6 |
|
|
Income tax expense |
|
|
22,046 |
|
|
|
15,155 |
|
|
45.5 |
|
|
Net income |
|
|
67,299 |
|
|
|
46,194 |
|
|
45.7 |
|
|
Less: net income attributable to non-controlling interests |
|
|
2,000 |
|
|
|
1,634 |
|
|
22.4 |
|
|
Net income attributable to the Company |
|
$ |
65,299 |
|
|
$ |
44,560 |
|
|
46.5 |
% |
|
|
|
|
|
|
|
|
|||||
|
Basic and diluted earnings per common share:(2) |
|
$ |
0.51 |
|
|
$ |
0.35 |
|
|
|
|
| _________________________________________ | ||
|
(1) |
Includes transition services agreement fees of $1.0 million and $3.5 million for the three months ended June 30, 2026 and 2025, respectively. |
|
|
(2) |
Refer to table III for calculation of earnings per common share. |
|
|
N/M |
Not meaningful. |
|
|
II. Condensed Consolidated Statements of Operations For the Six Months Ended June 30, 2026 and 2025 (In thousands, except per share amounts, unaudited) |
|||||||||||
|
|
|
Six Months Ended June 30, |
|
|
|||||||
|
|
|
|
2026 |
|
|
|
2025 |
|
|
% Change |
|
|
Revenue |
|
$ |
1,175,585 |
|
|
$ |
1,051,537 |
|
|
11.8 |
% |
|
Costs and expenses: |
|
|
|
|
|
|
|||||
|
Cost of services, exclusive of depreciation and amortization |
|
|
813,019 |
|
|
|
746,435 |
|
|
8.9 |
|
|
General and administrative, exclusive of depreciation and amortization(1) |
|
|
111,957 |
|
|
|
99,644 |
|
|
12.4 |
|
|
Depreciation and amortization |
|
|
39,547 |
|
|
|
35,617 |
|
|
11.0 |
|
|
Total costs and expenses |
|
|
964,523 |
|
|
|
881,696 |
|
|
9.4 |
|
|
Other operating (expense) income |
|
|
(384 |
) |
|
|
20 |
|
|
N/M |
|
|
Income from operations |
|
|
210,678 |
|
|
|
169,861 |
|
|
24.0 |
|
|
Other income and expense: |
|
|
|
|
|
|
|||||
|
Loss on early retirement of debt |
|
|
— |
|
|
|
(875 |
) |
|
N/M |
|
|
Interest expense |
|
|
(51,726 |
) |
|
|
(53,741 |
) |
|
(3.7 |
) |
|
Income before income taxes |
|
|
158,952 |
|
|
|
115,245 |
|
|
37.9 |
|
|
Income tax expense |
|
|
39,361 |
|
|
|
28,409 |
|
|
38.6 |
|
|
Net income |
|
|
119,591 |
|
|
|
86,836 |
|
|
37.7 |
|
|
Less: net income attributable to non-controlling interests |
|
|
3,804 |
|
|
|
3,365 |
|
|
13.0 |
|
|
Net income attributable to the Company |
|
$ |
115,787 |
|
|
$ |
83,471 |
|
|
38.7 |
% |
|
|
|
|
|
|
|
|
|||||
|
Basic and diluted earnings per common share:(2) |
|
$ |
0.90 |
|
|
$ |
0.65 |
|
|
|
|
| _________________________________________ | ||
|
(1) |
Includes transition services agreement fees of $2.7 million and $7.2 million for the six months ended June 30, 2026 and 2025, respectively. |
|
|
(2) |
Refer to table III for calculation of earnings per common share. |
|
|
N/M |
Not meaningful. |
|
|
III. Earnings per Share |
||||||||||||
|
For the Three and Six Months Ended June 30, 2026 and 2025 |
||||||||||||
|
(In thousands, except per share amounts, unaudited) |
||||||||||||
|
|
||||||||||||
|
As of June 30, 2026 and 2025, the Company’s capital structure consists of common stock and unvested restricted stock. To calculate earnings per share (“EPS”) for the three and six months ended June 30, 2026 and 2025, the Company applied the two-class method because its unvested restricted shares were participating securities. |
||||||||||||
|
|
||||||||||||
|
The following table sets forth the net income attributable to the Company, its shares, and its participating shares: |
||||||||||||
|
|
|
|
|
|
||||||||
|
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||
|
|
|
2026 |
|
2025 |
|
2026 |
|
2025 |
||||
|
Net income |
|
$ |
67,299 |
|
$ |
46,194 |
|
$ |
119,591 |
|
$ |
86,836 |
|
Less: net income attributable to non-controlling interests |
|
|
2,000 |
|
|
1,634 |
|
|
3,804 |
|
|
3,365 |
|
Net income attributable to the Company |
|
|
65,299 |
|
|
44,560 |
|
|
115,787 |
|
|
83,471 |
|
Less: distributed and undistributed net income attributable to participating securities |
|
|
1,372 |
|
|
530 |
|
|
2,438 |
|
|
985 |
|
Distributed and undistributed net income attributable to common shares |
|
$ |
63,927 |
|
$ |
44,030 |
|
$ |
113,349 |
|
$ |
82,486 |
|
The following table sets forth the computation of EPS under the two-class method: |
||||||||||||||||
|
|
|
Three Months Ended June 30, 2026 |
|
Three Months Ended June 30, 2025 |
||||||||||||
|
|
|
Net Income Allocation |
|
Shares(1) |
|
Basic and Diluted EPS |
|
Net Income Allocation |
|
Shares(1) |
|
Basic and Diluted EPS |
||||
|
Common shares |
|
$ |
63,927 |
|
125,102 |
|
$ |
0.51 |
|
$ |
44,030 |
|
126,647 |
|
$ |
0.35 |
|
Participating securities |
|
|
1,372 |
|
2,685 |
|
$ |
0.51 |
|
|
530 |
|
1,524 |
|
$ |
0.35 |
|
Total Company |
|
$ |
65,299 |
|
127,787 |
|
$ |
0.51 |
|
$ |
44,560 |
|
128,171 |
|
$ |
0.35 |
|
|
|
Six Months Ended June 30, 2026 |
|
Six Months Ended June 30, 2025 |
||||||||||||
|
|
|
Net Income Allocation |
|
Shares(1) |
|
Basic and Diluted EPS |
|
Net Income Allocation |
|
Shares(1) |
|
Basic and Diluted EPS |
||||
|
Common shares |
|
$ |
113,349 |
|
125,439 |
|
$ |
0.90 |
|
$ |
82,486 |
|
126,647 |
|
$ |
0.65 |
|
Participating securities |
|
|
2,438 |
|
2,698 |
|
$ |
0.90 |
|
|
985 |
|
1,512 |
|
$ |
0.65 |
|
Total Company |
|
$ |
115,787 |
|
128,137 |
|
$ |
0.90 |
|
$ |
83,471 |
|
128,159 |
|
$ |
0.65 |
|
_________________________________________ (1) Represents the weighted average shares outstanding during the period. |
||||||||||||||||
|
IV. Condensed Consolidated Balance Sheets (In thousands, except par value and share data, unaudited) |
|||||||
|
|
|
June 30, 2026 |
|
December 31, 2025 |
|||
|
ASSETS |
|
|
|
|
|||
|
Current assets: |
|
|
|
|
|||
|
Cash |
|
$ |
158,038 |
|
$ |
79,899 |
|
|
Accounts receivable |
|
|
299,819 |
|
|
257,900 |
|
|
Prepaid expenses and other current assets |
|
|
48,626 |
|
|
45,299 |
|
|
Total current assets |
|
|
506,483 |
|
|
383,098 |
|
|
Operating lease right-of-use assets |
|
|
522,421 |
|
|
483,652 |
|
|
Property and equipment, net |
|
|
226,040 |
|
|
225,309 |
|
|
Goodwill |
|
|
1,480,421 |
|
|
1,479,192 |
|
|
Other identifiable intangible assets, net |
|
|
232,267 |
|
|
242,556 |
|
|
Non-current deferred tax asset |
|
|
22,511 |
|
|
24,120 |
|
|
Other assets |
|
|
20,132 |
|
|
20,461 |
|
|
Total assets |
|
$ |
3,010,275 |
|
$ |
2,858,388 |
|
|
LIABILITIES AND EQUITY |
|
|
|
|
|||
|
Current liabilities: |
|
|
|
|
|||
|
Current operating lease liabilities |
|
$ |
87,208 |
|
$ |
84,582 |
|
|
Current portion of long-term debt and notes payable |
|
|
12,412 |
|
|
10,738 |
|
|
Accounts payable |
|
|
36,415 |
|
|
21,005 |
|
|
Accrued and other liabilities |
|
|
231,904 |
|
|
220,922 |
|
|
Total current liabilities |
|
|
367,939 |
|
|
337,247 |
|
|
Non-current operating lease liabilities |
|
|
482,988 |
|
|
443,642 |
|
|
Long-term debt, net of current portion |
|
|
1,561,211 |
|
|
1,563,658 |
|
|
Non-current deferred tax liability |
|
|
47,079 |
|
|
48,906 |
|
|
Other non-current liabilities |
|
|
44,634 |
|
|
44,506 |
|
|
Total liabilities |
|
|
2,503,851 |
|
|
2,437,959 |
|
|
|
|
|
|
|
|||
|
Redeemable non-controlling interests |
|
|
21,706 |
|
|
19,404 |
|
|
Stockholders’ equity: |
|
|
|
|
|||
|
Common stock, $0.01 par value, 700,000,000 shares authorized, 127,517,736 and 128,633,374 shares issued and outstanding at June 30, 2026 and December 31, 2025, respectively |
|
|
1,276 |
|
|
1,286 |
|
|
Capital in excess of par |
|
|
230,964 |
|
|
248,899 |
|
|
Retained earnings |
|
|
244,152 |
|
|
146,448 |
|
|
Accumulated other comprehensive income (loss) |
|
|
703 |
|
|
(3,352 |
) |
|
Total stockholders’ equity |
|
|
477,095 |
|
|
393,281 |
|
|
Non-controlling interests |
|
|
7,623 |
|
|
7,744 |
|
|
Total equity |
|
|
484,718 |
|
|
401,025 |
|
|
Total liabilities and equity |
|
$ |
3,010,275 |
|
$ |
2,858,388 |
|
|
V. Condensed Consolidated Statements of Cash Flows For the Three Months Ended June 30, 2026 and 2025 (In thousands, unaudited) |
||||||||
|
|
|
Three Months Ended June 30, |
||||||
|
|
|
|
2026 |
|
|
|
2025 |
|
|
Operating activities |
|
|
|
|
||||
|
Net income |
|
$ |
67,299 |
|
|
$ |
46,194 |
|
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
||||
|
Depreciation and amortization |
|
|
19,899 |
|
|
|
18,998 |
|
|
Stock compensation expense |
|
|
4,130 |
|
|
|
2,285 |
|
|
Amortization of debt discount and issuance costs |
|
|
1,044 |
|
|
|
995 |
|
|
Deferred income taxes |
|
|
(2,321 |
) |
|
|
(1,177 |
) |
|
Other |
|
|
491 |
|
|
|
1,097 |
|
|
Changes in operating assets and liabilities, net of effects of business combinations: |
|
|
|
|
||||
|
Accounts receivable |
|
|
(3,349 |
) |
|
|
(5,106 |
) |
|
Other current assets |
|
|
(3,401 |
) |
|
|
(5,028 |
) |
|
Other assets |
|
|
2,172 |
|
|
|
1,401 |
|
|
Accounts payable and accrued liabilities |
|
|
49,246 |
|
|
|
28,720 |
|
|
Net cash provided by operating activities |
|
|
135,210 |
|
|
|
88,379 |
|
|
Investing activities |
|
|
|
|
||||
|
Business combinations, net of cash acquired |
|
|
— |
|
|
|
(54,282 |
) |
|
Purchases of property and equipment |
|
|
(15,665 |
) |
|
|
(25,226 |
) |
|
Proceeds from sale of assets |
|
|
1,468 |
|
|
|
— |
|
|
Net cash used in investing activities |
|
|
(14,197 |
) |
|
|
(79,508 |
) |
|
Financing activities |
|
|
|
|
||||
|
Borrowings on revolving facilities |
|
|
— |
|
|
|
35,000 |
|
|
Payments on term loans |
|
|
(2,375 |
) |
|
|
(2,375 |
) |
|
Borrowings of other debt |
|
|
— |
|
|
|
107 |
|
|
Principal payments on other debt |
|
|
(1,421 |
) |
|
|
(1,810 |
) |
|
Dividends paid to common stockholders |
|
|
(7,992 |
) |
|
|
(16,021 |
) |
|
Repurchase of common shares |
|
|
(10,958 |
) |
|
|
— |
|
|
Distributions to non-controlling interests |
|
|
(1,928 |
) |
|
|
(2,009 |
) |
|
Net cash (used in) provided by financing activities |
|
|
(24,674 |
) |
|
|
12,892 |
|
|
Net increase in cash |
|
|
96,339 |
|
|
|
21,763 |
|
|
Cash at beginning of period |
|
|
61,699 |
|
|
|
52,109 |
|
|
Cash at end of period |
|
$ |
158,038 |
|
|
$ |
73,872 |
|
|
Supplemental information |
|
|
|
|
||||
|
Cash paid for interest |
|
$ |
13,531 |
|
|
$ |
16,295 |
|
|
Cash paid for taxes |
|
$ |
35,165 |
|
|
$ |
35,616 |
|
|
VI. Condensed Consolidated Statements of Cash Flows For the Six Months Ended June 30, 2026 and 2025 (In thousands, unaudited) |
||||||||
|
|
|
Six Months Ended June 30, |
||||||
|
|
|
|
2026 |
|
|
|
2025 |
|
|
Operating activities |
|
|
|
|
||||
|
Net income |
|
$ |
119,591 |
|
|
$ |
86,836 |
|
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
||||
|
Depreciation and amortization |
|
|
39,547 |
|
|
|
35,617 |
|
|
Loss on early retirement of debt |
|
|
— |
|
|
|
51 |
|
|
Stock compensation expense |
|
|
8,265 |
|
|
|
4,554 |
|
|
Amortization of debt discount and issuance costs |
|
|
2,072 |
|
|
|
1,971 |
|
|
Deferred income taxes |
|
|
(1,506 |
) |
|
|
(2,205 |
) |
|
Other |
|
|
507 |
|
|
|
1,107 |
|
|
Changes in operating assets and liabilities, net of effects of business combinations: |
|
|
|
|
||||
|
Accounts receivable |
|
|
(41,975 |
) |
|
|
(26,251 |
) |
|
Other current assets |
|
|
(5,186 |
) |
|
|
(7,781 |
) |
|
Other assets |
|
|
3,577 |
|
|
|
2,303 |
|
|
Accounts payable and accrued liabilities |
|
|
31,337 |
|
|
|
3,876 |
|
|
Net cash provided by operating activities |
|
|
156,229 |
|
|
|
100,078 |
|
|
Investing activities |
|
|
|
|
||||
|
Business combinations, net of cash acquired |
|
|
(3,760 |
) |
|
|
(333,300 |
) |
|
Purchases of property and equipment |
|
|
(26,753 |
) |
|
|
(40,958 |
) |
|
Proceeds from sale of assets |
|
|
1,470 |
|
|
|
1 |
|
|
Net cash used in investing activities |
|
|
(29,043 |
) |
|
|
(374,257 |
) |
|
Financing activities |
|
|
|
|
||||
|
Borrowings on revolving facilities |
|
|
— |
|
|
|
85,000 |
|
|
Proceeds from term loans, net of issuance costs |
|
|
— |
|
|
|
948,848 |
|
|
Payments on term loans |
|
|
(4,750 |
) |
|
|
(850,250 |
) |
|
Borrowings of other debt |
|
|
4,912 |
|
|
|
6,575 |
|
|
Principal payments on other debt |
|
|
(3,549 |
) |
|
|
(6,505 |
) |
|
Dividends paid to common stockholders |
|
|
(16,009 |
) |
|
|
(16,021 |
) |
|
Repurchase of common shares |
|
|
(25,954 |
) |
|
|
— |
|
|
Distributions to non-controlling interests |
|
|
(3,697 |
) |
|
|
(2,851 |
) |
|
Net cash (used in) provided by financing activities |
|
|
(49,047 |
) |
|
|
164,796 |
|
|
Net increase (decrease) in cash |
|
|
78,139 |
|
|
|
(109,383 |
) |
|
Cash at beginning of period |
|
|
79,899 |
|
|
|
183,255 |
|
|
Cash at end of period |
|
$ |
158,038 |
|
|
$ |
73,872 |
|
|
Supplemental information |
|
|
|
|
||||
|
Cash paid for interest |
|
$ |
50,201 |
|
|
$ |
54,432 |
|
|
Cash paid for taxes |
|
$ |
34,384 |
|
|
$ |
35,568 |
|
|
VII. Disaggregated Revenue For the Three and Six Months Ended June 30, 2026 and 2025 (In thousands, unaudited) |
|||||||||||
|
|
|||||||||||
|
The following table disaggregates the Company’s revenue: |
|||||||||||
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||
|
|
2026 |
|
2025 |
|
2026 |
|
2025 |
||||
|
Occupational health centers: |
|
|
|
|
|
|
|
||||
|
Workers’ compensation |
$ |
361,228 |
|
$ |
332,191 |
|
$ |
698,907 |
|
$ |
634,298 |
|
Employer services |
|
183,157 |
|
|
174,318 |
|
|
355,525 |
|
|
334,458 |
|
Consumer health |
|
6,893 |
|
|
7,177 |
|
|
14,723 |
|
|
15,788 |
|
Other occupational health center revenue |
|
2,239 |
|
|
2,452 |
|
|
4,263 |
|
|
4,516 |
|
Total occupational health center revenue |
|
553,517 |
|
|
516,138 |
|
|
1,073,418 |
|
|
989,060 |
|
Onsite health clinics |
|
38,832 |
|
|
22,569 |
|
|
76,028 |
|
|
39,119 |
|
Other |
|
13,681 |
|
|
12,078 |
|
|
26,139 |
|
|
23,358 |
|
Total revenue |
$ |
606,030 |
|
$ |
550,785 |
|
$ |
1,175,585 |
|
$ |
1,051,537 |
|
VIII. Key Statistics For the Three Months Ended June 30, 2026 and 2025 |
||||||||||
|
|
||||||||||
|
The following table sets forth facility counts for our occupational health centers and onsite health clinics operating segments for the periods presented: |
||||||||||
|
|
Three Months Ended June 30, |
|
|
|||||||
|
|
2026 |
|
2025 |
|
|
|||||
|
Facility Counts |
|
|
|
|
|
|||||
|
Number of occupational health centers—start of period |
|
632 |
|
|
627 |
|
|
|||
|
Number of occupational health centers acquired |
|
— |
|
|
— |
|
|
|||
|
Number of occupational health centers de novos |
|
1 |
|
|
1 |
|
|
|||
|
Number of occupational health centers closed |
|
— |
|
|
— |
|
|
|||
|
Number of occupational health centers—end of period |
|
633 |
|
|
628 |
|
|
|||
|
Number of onsite health clinics—end of period |
|
415 |
|
|
406 |
|
|
|||
|
|
|
|
|
|
|
|||||
|
The following table sets forth operating statistics for our occupational health centers operating segment for the periods presented: |
||||||||||
|
|
|
|
|
|||||||
|
|
Three Months Ended June 30, |
|
|
|||||||
|
|
2026 |
|
2025 |
|
% Change |
|||||
|
Number of patient visits |
|
|
|
|
|
|||||
|
Workers’ compensation |
|
1,648,983 |
|
|
1,589,981 |
|
3.7 |
% |
||
|
Employer services |
|
1,910,984 |
|
|
1,877,383 |
|
1.8 |
% |
||
|
Consumer health |
|
50,967 |
|
|
52,956 |
|
(3.8 |
)% |
||
|
Total |
|
3,610,934 |
|
|
3,520,320 |
|
2.6 |
% |
||
|
Visits per day volume |
|
|
|
|
|
|||||
|
Workers’ compensation |
|
25,765 |
|
|
24,843 |
|
3.7 |
% |
||
|
Employer services |
|
29,859 |
|
|
29,334 |
|
1.8 |
% |
||
|
Consumer health |
|
796 |
|
|
827 |
|
(3.8 |
)% |
||
|
Total |
|
56,421 |
(3) |
|
55,005 |
(3) |
2.6 |
% |
||
|
Revenue per visit(1) |
|
|
|
|
|
|||||
|
Workers’ compensation |
$ |
219.06 |
|
$ |
208.93 |
|
4.9 |
% |
||
|
Employer services |
|
95.84 |
|
|
92.85 |
|
3.2 |
% |
||
|
Consumer health |
|
135.26 |
|
|
135.52 |
|
(0.2 |
)% |
||
|
Total |
$ |
152.67 |
|
$ |
145.92 |
|
4.6 |
% |
||
|
Business Days(2) |
|
64 |
|
|
64 |
|
|
|||
| _________________________________________ | ||
|
(1) |
Represents the average amount of revenue recognized for each patient visit. Revenue per visit is calculated as total patient revenue divided by total patient visits. Revenue per visit as reported includes only the revenue and patient visits in our occupational health centers operating segment and does not include our onsite health clinics or other businesses operating segments. |
|
|
(2) |
Represents the number of days in which normal business operations were conducted during the periods presented. |
|
|
(3) |
Does not foot due to rounding. |
|
|
IX. Key Statistics For the Six Months Ended June 30, 2026 and 2025 |
||||||||||
|
|
||||||||||
|
The following table sets forth facility counts for our occupational health centers and onsite health clinics operating segments for the periods presented: |
||||||||||
|
|
Six Months Ended June 30, |
|
|
|||||||
|
|
2026 |
|
2025 |
|
|
|||||
|
Facility Counts |
|
|
|
|
|
|||||
|
Number of occupational health centers—start of period |
|
628 |
|
|
552 |
|
|
|||
|
Number of occupational health centers acquired |
|
3 |
|
|
72 |
|
|
|||
|
Number of occupational health centers de novos |
|
2 |
|
|
4 |
|
|
|||
|
Number of occupational health centers closed |
|
— |
|
|
— |
|
|
|||
|
Number of occupational health centers—end of period |
|
633 |
|
|
628 |
|
|
|||
|
Number of onsite health clinics—end of period |
|
415 |
|
|
406 |
|
|
|||
|
|
|
|
|
|
|
|||||
|
The following table sets forth operating statistics for our occupational health centers operating segment for the periods presented: |
||||||||||
|
|
|
|
|
|||||||
|
|
Six Months Ended June 30, |
|
|
|||||||
|
|
2026 |
|
2025 |
|
% Change |
|||||
|
Number of patient visits |
|
|
|
|
|
|||||
|
Workers’ compensation |
|
3,232,326 |
|
|
3,034,861 |
|
6.5 |
% |
||
|
Employer services |
|
3,689,568 |
|
|
3,573,795 |
|
3.2 |
% |
||
|
Consumer health |
|
108,131 |
|
|
116,032 |
|
(6.8 |
)% |
||
|
Total |
|
7,030,025 |
|
|
6,724,688 |
|
4.5 |
% |
||
|
|
|
|
|
|
|
|||||
|
Visits per day volume |
|
|
|
|
|
|||||
|
Workers’ compensation |
|
25,451 |
|
|
23,897 |
|
6.5 |
% |
||
|
Employer services |
|
29,052 |
|
|
28,140 |
|
3.2 |
% |
||
|
Consumer health |
|
851 |
|
|
914 |
|
(6.8 |
)% |
||
|
Total |
|
55,355 |
(3) |
|
52,950 |
(3) |
4.5 |
% |
||
|
|
|
|
|
|
|
|||||
|
Revenue per visit(1) |
|
|
|
|
|
|||||
|
Workers’ compensation |
$ |
216.22 |
|
$ |
209.00 |
|
3.5 |
% |
||
|
Employer services |
|
96.36 |
|
|
93.59 |
|
3.0 |
% |
||
|
Consumer health |
|
136.16 |
|
|
136.06 |
|
0.1 |
% |
||
|
Total |
$ |
152.08 |
|
$ |
146.41 |
|
3.9 |
% |
||
|
Business days(2) |
|
127 |
|
|
127 |
|
|
|||
| _________________________________________ | ||
|
(1) |
Represents the average amount of revenue recognized for each patient visit. Revenue per visit is calculated as total patient revenue divided by total patient visits. Revenue per visit as reported includes only the revenue and patient visits in our occupational health centers segment and does not include our onsite health clinics or other businesses segments. |
|
|
(2) |
Represents the number of days in which normal business operations were conducted during the periods presented. |
|
|
(3) |
Does not total due to rounding. |
|
|
X. Net Income to Adjusted EBITDA Reconciliation |
|
For the Three and Six Months Ended June 30, 2026 and 2025 |
|
(In thousands, unaudited) |
|
|
|
Adjusted EBITDA and Adjusted EBITDA Margin are non-GAAP measures that we believe provide useful insight into the underlying performance of our business by excluding items that may obscure trends in our core operating results. These metrics are not intended to be substitutes for U.S. GAAP measures such as net income and net income margin, and may differ from similarly titled metrics supported by other companies. We use these non-GAAP measures internally for budgeting, forecasting, and evaluating performance. Investors should consider these measures in addition to, and not as a replacement for, U.S. GAAP results reported in our financial statements. |
|
|
|
Adjusted EBITDA is a supplemental measure that we believe offers useful insight into the Company’s business performance by excluding items that do not reflect the core operations of the Company. We define Adjusted EBITDA as net income before interest, income taxes, depreciation and amortization, stock compensation expense, acquisition related costs, gains or losses on early retirement of debt, and separation transaction costs. We define Adjusted EBITDA Margin as Adjusted EBITDA divided by total revenue. Adjusted EBITDA Margin is a supplemental measure that we believe helps assess the efficiency of our operations on a normalized basis. |
|
|
|
The following table reconciles net income to Adjusted EBITDA and net income margin to Adjusted EBITDA Margin and should be referenced when we discuss Adjusted EBITDA and Adjusted EBITDA Margin. |
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||||||||||
|
|
2026 |
|
2025 |
|
2026 |
|
2025 |
||||||||||||||||
|
|
Amount |
|
% of Revenue(4) |
|
Amount |
|
% of Revenue(4) |
|
Amount |
|
% of Revenue(4) |
|
Amount |
|
% of Revenue(4) |
||||||||
|
Reconciliation of Adjusted EBITDA: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Net income(1) |
$ |
67,299 |
|
11.1 |
% |
|
$ |
46,194 |
|
8.4 |
% |
|
$ |
119,591 |
|
10.2 |
% |
|
$ |
86,836 |
|
8.3 |
% |
|
Add (Subtract): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Income tax expense |
|
22,046 |
|
3.6 |
|
|
|
15,155 |
|
2.8 |
|
|
|
39,361 |
|
3.3 |
|
|
|
28,409 |
|
2.7 |
|
|
Interest expense |
|
25,723 |
|
4.2 |
|
|
|
28,193 |
|
5.1 |
|
|
|
51,726 |
|
4.4 |
|
|
|
53,741 |
|
5.1 |
|
|
Loss on early retirement of debt |
|
— |
|
— |
|
|
|
— |
|
— |
|
|
|
— |
|
— |
|
|
|
875 |
|
0.1 |
|
|
Stock compensation expense |
|
4,130 |
|
0.7 |
|
|
|
2,285 |
|
0.4 |
|
|
|
8,265 |
|
0.7 |
|
|
|
4,554 |
|
0.4 |
|
|
Depreciation and amortization |
|
19,899 |
|
3.3 |
|
|
|
18,998 |
|
3.4 |
|
|
|
39,547 |
|
3.4 |
|
|
|
35,617 |
|
3.4 |
|
|
Separation transaction costs(2) |
|
1,777 |
|
0.3 |
|
|
|
1,360 |
|
0.2 |
|
|
|
2,853 |
|
0.2 |
|
|
|
1,675 |
|
0.2 |
|
|
Nova and Pivot Onsite Innovations acquisition costs |
|
60 |
|
0.0 |
|
|
|
2,833 |
|
0.5 |
|
|
|
279 |
|
0.0 |
|
|
|
5,970 |
|
0.6 |
|
|
Adjusted EBITDA(3) |
$ |
140,934 |
|
23.3 |
% |
|
$ |
115,018 |
|
20.9 |
% |
|
$ |
261,622 |
|
22.3 |
% |
|
$ |
217,677 |
|
20.7 |
% |
|
_________________________________________ |
||
|
(1) |
The percentage of revenue values on this row represent the net income margin for the period. |
|
|
(2) |
Separation transaction costs represent non-recurring incremental consulting, legal, audit-related fees, system implementation, and software disposal costs incurred in connection with the Company’s separation from Select into a new, publicly traded company and are included within general and administrative expenses on the condensed consolidated statements of operations. |
|
|
(3) |
The percentage of revenue values on this row represent the Adjusted EBITDA Margin for the period. |
|
|
(4) |
Totals in this column may not foot due to rounding. |
|
|
XI. Earnings per Share to Adjusted Earnings per Share Reconciliation |
|||||||||||||||||||||||||||||||
|
For the Three and Six Months Ended June 30, 2026 and 2025 |
|||||||||||||||||||||||||||||||
|
(In thousands, except per share amounts, unaudited) |
|||||||||||||||||||||||||||||||
|
|
|||||||||||||||||||||||||||||||
|
Adjusted Net Income Attributable to the Company and Adjusted Earnings per Share are used by management to provide useful insight into the underlying performance of our business. Adjusted Net Income Attributable to the Company and Adjusted Earnings per Share are not measures of financial performance under U.S. GAAP and are not intended to be substitutes for U.S. GAAP measures such as net income attributable to the Company or earnings per share. These metrics may differ from similarly titled metrics supported by other companies. We believe that the presentation of Adjusted Net Income Attributable to the Company and Adjusted Earnings per Share are important to investors because they are reflective of the financial performance of Concentra’s ongoing operations and provide better comparability of its results of operations between periods. Investors should consider these measures in addition to, and not as a replacement for, U.S. GAAP results reported in our financial statements. |
|||||||||||||||||||||||||||||||
|
|
|||||||||||||||||||||||||||||||
|
We define Adjusted Net Income Attributable to the Company as net income attributable to the Company, excluding gain (loss) on early retirement of debt, separation transaction costs, and acquisition costs, all on an after tax basis. We define Adjusted Earnings per Share as the Adjusted Net Income Attributable to the Company divided by the diluted weighted average shares outstanding. |
|||||||||||||||||||||||||||||||
|
|
|||||||||||||||||||||||||||||||
|
The following table reconciles net income attributable to the Company and earnings per share on a fully diluted basis to Adjusted Net Income Attributable to the Company and Adjusted Earnings per Share on a fully diluted basis. |
|||||||||||||||||||||||||||||||
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||||||||||||||||||
|
|
|
2026 |
|
|
Per Share(3) |
|
|
2025 |
|
|
Per Share(3) |
|
|
2026 |
|
|
Per Share(3) |
|
|
2025 |
|
|
Per Share(3) |
||||||||
|
Reconciliation of Adjusted Net Income Attributable to the Company: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
|
Net income attributable to the Company |
$ |
65,299 |
|
|
$ |
0.51 |
|
|
$ |
44,560 |
|
|
$ |
0.35 |
|
|
$ |
115,787 |
|
|
$ |
0.90 |
|
|
$ |
83,471 |
|
|
$ |
0.65 |
|
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
Loss on early retirement of debt |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
875 |
|
|
|
0.01 |
|
|
Separation transaction costs(1) |
|
1,777 |
|
|
|
0.01 |
|
|
|
1,360 |
|
|
|
0.01 |
|
|
|
2,853 |
|
|
|
0.02 |
|
|
|
1,675 |
|
|
|
0.01 |
|
|
Nova and Pivot Onsite Innovations acquisition costs |
|
60 |
|
|
|
0.00 |
|
|
|
2,833 |
|
|
|
0.02 |
|
|
|
279 |
|
|
|
0.00 |
|
|
|
5,970 |
|
|
|
0.05 |
|
|
Total additions (subtractions), net |
$ |
1,837 |
|
|
$ |
0.01 |
|
|
$ |
4,193 |
|
|
$ |
0.03 |
|
|
$ |
3,132 |
|
|
$ |
0.02 |
|
|
$ |
8,520 |
|
|
$ |
0.07 |
|
|
Less: tax effect of adjustments(2) |
|
(454 |
) |
|
|
(0.00 |
) |
|
|
(1,036 |
) |
|
|
(0.01 |
) |
|
|
(777 |
) |
|
|
(0.01 |
) |
|
|
(2,100 |
) |
|
|
(0.02 |
) |
|
Adjusted Net Income Attributable to the Company |
$ |
66,682 |
|
|
$ |
0.52 |
|
|
$ |
47,717 |
|
|
$ |
0.37 |
|
|
$ |
118,142 |
|
|
$ |
0.92 |
|
|
$ |
89,891 |
|
|
$ |
0.70 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
Weighted average shares outstanding - diluted |
|
|
|
127,787 |
|
|
|
|
|
128,171 |
|
|
|
|
|
128,137 |
|
|
|
|
|
128,159 |
|
||||||||
|
_________________________________________ |
||
|
(1) |
Separation transaction costs represent non-recurring incremental consulting, legal, audit-related fees, system implementation, and software disposal costs incurred in connection with the Company’s separation from Select into a new, publicly traded company and are included within general and administrative expenses on the condensed consolidated statements of operations. |
|
|
(2) |
Tax impact is calculated using the annual effective tax rate, including discrete costs and benefits. |
|
|
(3) |
Totals in this column may not foot due to rounding. |
|
|
XII. Net Cash Provided by Operating Activities to Free Cash Flow Reconciliation |
|||||||||||||||
|
For the Three and Six Months ended June 30, 2026 and 2025 |
|||||||||||||||
|
(In thousands, unaudited) |
|||||||||||||||
|
|
|||||||||||||||
|
Free Cash Flow is used by management to provide useful insight into the underlying performance of our business. Free Cash Flow is not a measure of financial performance or liquidity under U.S. GAAP and is not intended to be a substitute for U.S. GAAP measures, such as net cash provided by operating activities. This metric may differ from similarly titled metrics supported by other companies. Other companies, including companies in our industry, may calculate Free Cash Flow differently than we do, limiting the usefulness of those measures for comparative purposes. We believe that the presentation of Free Cash Flow is important to investors because it is reflective of the financial performance and cash flows of Concentra’s ongoing operations and provides a better comparability of its cash flows between periods. Investors should consider this measure in addition to, and not as a replacement for, U.S. GAAP results reporting in our financial statements. |
|||||||||||||||
|
|
|||||||||||||||
|
We define Free Cash Flow as net cash provided by operating activities less net cash used in investing activities, excluding business combinations, net of cash acquired. Free Cash Flow (i) does not represent residual cash flow available for discretionary expenditures and (ii) does not reflect our mandatory debt service obligations or other non-discretionary expenditures that are not deducted in calculating the measure. |
|||||||||||||||
|
|
|||||||||||||||
|
The following table reconciles net cash provided by operating activities to Free Cash Flow. |
|||||||||||||||
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
|
|
|
2026 |
|
|
|
2025 |
|
|
|
2026 |
|
|
|
2025 |
|
|
Reconciliation of Free Cash Flow: |
|
|
|
|
|
|
|
||||||||
|
Net cash provided by operating activities |
$ |
135,210 |
|
|
$ |
88,379 |
|
|
$ |
156,229 |
|
|
$ |
100,078 |
|
|
Add (Subtract): |
|
|
|
|
|
|
|
||||||||
|
Net cash used in investing activities |
|
(14,197 |
) |
|
|
(79,508 |
) |
|
|
(29,043 |
) |
|
|
(374,257 |
) |
|
Business combinations, net of cash acquired |
|
— |
|
|
|
54,282 |
|
|
|
3,760 |
|
|
|
333,300 |
|
|
Free Cash Flow |
$ |
121,013 |
|
|
$ |
63,153 |
|
|
$ |
130,946 |
|
|
$ |
59,121 |
|
|
XIII. 2026 Net Income to Adjusted EBITDA Reconciliation |
|||||
|
Business Outlook for the Year Ending December 31, 2026 |
|||||
|
(In millions, unaudited) |
|||||
|
|
|||||
|
The following is a reconciliation of full year 2026 Adjusted EBITDA expectations as computed at the low and high points of the range to the closest comparable U.S. GAAP financial measure. Refer to table X for discussion of Concentra’s use of Adjusted EBITDA in evaluating financial performance and for the definition of Adjusted EBITDA. Each item presented in the below table is an estimation of full year 2026 expectations. |
|||||
|
|
Range |
||||
|
|
Low |
|
High |
||
|
Net income attributable to the Company |
$ |
203 |
|
$ |
210 |
|
Net income attributable to non-controlling interests |
|
7 |
|
|
7 |
|
Net income |
$ |
210 |
|
$ |
217 |
|
Income tax expense |
|
69 |
|
|
72 |
|
Interest expense |
|
102 |
|
|
102 |
|
Income from operations |
|
381 |
|
|
391 |
|
Stock compensation expense |
|
20 |
|
|
20 |
|
Depreciation and amortization |
|
81 |
|
|
81 |
|
Separation transaction costs |
|
3 |
|
|
3 |
|
Adjusted EBITDA |
$ |
485 |
|
$ |
495 |
|
XIV. 2026 Net Cash Provided by Operating Activities to Free Cash Flow Reconciliation |
|||||||
|
Business Outlook for the Year Ending December 31, 2026 |
|||||||
|
(In millions, unaudited) |
|||||||
|
|
|||||||
|
The following is a reconciliation of full year 2026 Free Cash Flow expectations as computed at the low and high points of the range to the closest comparable U.S. GAAP financial measure. Refer to table XII for discussion of Concentra’s use of Free Cash Flow in evaluating financial performance and for the definition of Free Cash Flow. Each item presented in the below table is an estimation of full year 2026 expectations. |
|||||||
|
|
Range |
||||||
|
|
Low |
|
High |
||||
|
Reconciliation of Free Cash Flow: |
|
|
|
||||
|
Net cash provided by operating activities |
$ |
300 |
|
|
$ |
310 |
|
|
Add (Subtract): |
|
|
|
||||
|
Net cash used in investing activities |
|
(84 |
) |
|
|
(74 |
) |
|
Business combinations, net of cash acquired |
|
4 |
|
|
|
4 |
|
|
Free Cash Flow |
$ |
220 |
|
|
$ |
240 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20260806268561/en/
Investor and media inquiries:
Bill Chapman
Vice President, Strategy & Investor Relations
972-725-6488
ir@concentra.com
Source: Concentra Group Holdings Parent, Inc.
Released August 6, 2026