ADDISON, Texas--(BUSINESS WIRE)--February 26, 2026--
Concentra Group Holdings Parent, Inc. ("Concentra," the "Company," "we," "us," or "our") $(CON)$, the nation's largest provider of occupational health services by number of locations, today announced results for its fourth quarter and full year ended December 31, 2025.
Fourth Quarter and Year Ended 2025 Highlights
For the fourth quarter ended December 31, 2025:
-- Revenue of $539.1 million, an increase of 15.9% from $465.0 million in
Q4 2024
-- Net income of $36.2 million, an increase of 58.7% from $22.8 million in
Q4 2024
-- Net income attributable to the Company of $34.7 million, and Adjusted
Net Income Attributable to the Company of $36.1 million
-- Earnings per share of $0.27 and Adjusted Earnings per Share of $0.28
-- Adjusted EBITDA of $95.3 million, an increase of 22.9% from $77.5
million in Q4 2024
-- Patient visits of 3,264,322, or 51,005 visits per day, an increase in
visits per day of 9.0% from 46,797 in Q4 2024
-- Revenue per visit of $149.63, an increase of 3.1% from $145.08 in Q4
2024
-- Capital expenditures of $20.2 million, an increase of 20.9% from $16.7
million in Q4 2024
-- Repurchases of approximately 1.1 million shares of common stock
totaling $22.4 million
-- Repayments on the Revolving Credit Facility of $35.0 million
-- Cash balance of $79.9 million and a net leverage ratio of approximately
3.4x
-- Total occupational health centers of 628, compared to 552 at the end of
Q4 2024
-- Opened two occupational health center de novos
-- Total onsite health clinics of 411, compared to 157 at the end of Q4
2024
For the year ended December 31, 2025:
-- Revenue of $2,163.4 million, an increase of 13.9% from $1,900.2 million
in FY 2024
-- Net income of $172.8 million, slightly increased compared to $171.9
million in FY 2024
-- Net income attributable to the Company of $166.4 million, and Adjusted
Net Income Attributable to the Company of $176.0 million
-- Earnings per share of $1.30 and Adjusted Earnings per Share of $1.37
-- Adjusted EBITDA of $431.9 million, an increase of 14.6% from $376.9
million in FY 2024
-- Patient visits of 13,546,707, or 53,124 visits per day, an increase in
visits per day of 7.7% from 49,311 in FY 2024
-- Revenue per visit of $147.42, an increase of 4.3% from $141.30 in FY
2024
-- No outstanding balance on the Revolving Credit Facility
-- Net cash provided by operating activities of $279.4 million and Free
Cash Flow of $197.8 million
-- Capital expenditures of $82.3 million, an increase of 28.0% from $64.3
million in FY 2024
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 December 31, 2025, our balance sheet reflected cash of $79.9 million, total debt of $1,574.4 million and total assets of $2,858.4 million. Concentra's net leverage ratio as of December 31, 2025 is 3.4x, which was in compliance with the financial covenant under our credit agreement.
Cash Flow
Cash flows provided by operating activities in the fourth quarter ended December 31, 2025 totaled $118.7 million compared to $93.7 million for the same quarter, prior year. The increase in year over year cash flow from operations resulted from materially higher earnings in 2025. During the fourth quarter ended December 31, 2025, cash used in investing activities was $20.1 million, including capital expenditures of $20.2 million, with $4 million of one-time capital expenditures associated with our integration of Nova Medical Centers ("Nova"). Free Cash Flow totaled $98.6 million in the fourth quarter ended December 31, 2025, compared to $77.0 million for the same quarter, prior year. Cash flow from financing activities used $68.6 million for the quarter, driven primarily by $38.9 million in debt repayments, $22.4 million in repurchases of shares of common stock, and $8.0 million in dividend payments. This resulted in a net increase in cash of $30.0 million for the quarter.
Dividend
On February 25, 2026, the Board of Directors declared a cash dividend of $0.0625 per share. The dividend will be payable on or about March 19, 2026, to stockholders of record as of the close of business on March 12, 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 of Directors 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 of Directors may deem to be relevant.
2026 Business Outlook
We believe Concentra's strong business performance in 2025 positions the Company well for continued growth as reflected in its 2026 financial guidance. For full year 2026, Concentra expects to deliver the following results:
-- Revenue in the range of $2.25 billion to $2.35 billion -- Adjusted EBITDA in the range of $450 million to $470 million -- Net leverage ratio of 3.0x or below -- Free Cash Flow of $200 million to $225 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 and a reconciliation of full year 2026 net cash provided by operating activities to Free Cash Flow, alongside a definition of Free Cash Flow, 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 53,000 patients each business day on average across 47 states and the District of Columbia at our 628 occupational health centers, 411 onsite health clinics at employer worksites, and Concentra Telemed as of December 31, 2025.
Conference Call
Concentra will host a conference call regarding its fourth quarter financial results and business outlook on Friday, February 27, 2026, at 9 a.m. EST. 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;
-- Cost containment initiatives or 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 rule;
-- 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 other 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 on 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. Consolidated Statements of Operations
For the Fourth Quarters Ended December 31, 2025 and 2024
(In thousands, except per share amounts, unaudited)
Quarter Ended December 31,
------------------------------
2025 2024 % Change
----------- ---------- ----------
Revenue $ 539,080 $ 465,041 15.9%
----------- ---------- ------
Costs and expenses:
Cost of services,
exclusive of
depreciation and
amortization 398,353 344,851 15.5
General and
administrative,
exclusive of
depreciation and
amortization(1) 50,777 45,493 11.6
Depreciation and
amortization 20,291 15,610 30.0
----------- ---------- ------
Total costs and
expenses 469,421 405,954 15.6
----------- ---------- ------
Income from operations 69,659 59,087 17.9
Other income and
expense:
Interest expense (26,866) (26,439) 1.6
----------- ---------- ------
Income before income
taxes 42,793 32,648 31.1
Income tax expense 6,602 9,848 (33.0)
----------- ---------- ------
Net income 36,191 22,800 58.7
Less: net income
attributable to
non-controlling
interests 1,506 1,288 16.9
----------- ---------- ------
Net income
attributable to the
Company $ 34,685 $ 21,512 61.2%
=========== ========== ======
Basic and diluted
earnings per common
share(2) $ 0.27 $ 0.17
_____________________________________
(1) Includes transition services agreement fees of $2.2 million and $3.7
million for the fourth quarters ended December 31, 2025 and 2024,
respectively.
(2) Refer to table III for calculation of earnings per common share.
N/M Not meaningful
II. Consolidated Statements of Operations
For the Years Ended December 31, 2025 and 2024
(In thousands, except per share amounts)
Year Ended December 31,
---------------------------
2025 2024 % Change
--------- --------- ----------
Revenue $ 2,163,417 $1,900,192 13.9%
--------- --------- ------
Costs and expenses:
Cost of services,
exclusive of
depreciation and
amortization 1,550,323 1,372,217 13.0
General and
administrative,
exclusive of
depreciation and
amortization(1) 203,305 156,318 30.1
Depreciation and
amortization 75,817 67,178 12.9
--------- --------- ------
Total costs and
expenses 1,829,445 1,595,713 14.6
Other operating income 20 284 (93.0)
--------- --------- ------
Income from operations 333,992 304,763 9.6
Other income and
expense:
Loss on early
retirement of debt (875) -- N/M
Equity in losses of
unconsolidated
subsidiaries -- (3,676) N/M
Interest expense (109,290) (47,714) 129.1
Interest expense on
related party debt -- (21,980) N/M
--------- --------- ------
Income before income
taxes 223,827 231,393 (3.3)
Income tax expense 50,978 59,496 (14.3)
--------- --------- ------
Net income 172,849 171,897 0.6
Less: net income
attributable to
non-controlling
interests 6,434 5,354 20.2
--------- --------- ------
Net income attributable
to the Company $ 166,415 $ 166,543 (0.1)%
========= ========= ======
Basic and diluted
earnings per common
share(2) $ 1.30 $ 1.46
____________________________________________
(1) Includes transition services agreement fees of $12.1 million for the
year ended December 31, 2025 and shared service fees from Select Medical
Corporation ("Select") and transition services agreement fees of $15.2
million for the year ended December 31, 2024.
(2) Refer to table III for calculation of earnings per common share.
N/M Not meaningful
III. Earnings per Share
For the Fourth Quarters and Years Ended December 31, 2025 and 2024
(In thousands, except per share amounts, unaudited)
As of December 31, 2025 and 2024, the Company's capital structure consists of
common stock and unvested restricted stock. To calculate earnings per share
("EPS") for the quarters and years ended December 31, 2025 and 2024, 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:
Quarter Ended Year Ended
December 31, December 31,
---------------- --------------------
2025 2024 2025 2024
------ ------ ------- -------
Net income $36,191 $22,800 $172,849 $171,897
Less: net income
attributable to
non-controlling
interests 1,506 1,288 6,434 5,354
------ ------ ------- -------
Net income
attributable to
the Company 34,685 21,512 166,415 166,543
Less: distributed
and
undistributed
income
attributable to
participating
securities 637 98 2,244 211
------ ------ ------- -------
Distributed and
undistributed
income
attributable to
common shares $34,048 $21,414 $164,171 $166,332
====== ====== ======= =======
The following table sets forth the computation of EPS under the two-class method:
Quarter Ended December 31, 2025 Quarter Ended December 31, 2024
---------------------------------- ------------------------------------
Basic and Basic and
Net Income Diluted Net Income Diluted
Allocation Shares(1) EPS Allocation Shares(1) EPS
------------ --------- --------- ------------ --------- -----------
Common shares $ 34,048 126,323 $ 0.27 $ 21,414 127,064 $ 0.17
Participating
securities 637 2,365 $ 0.27 98 579 $ 0.17
-------- --------- ----- -------- --------- -----
Total Company $ 34,685 128,688 $ 0.27 $ 21,512 127,643 $ 0.17
======== ========= ===== ======== ========= =====
Year Ended December 31, 2025 Year Ended December 31, 2024
---------------------------------- ------------------------------------
Basic and Basic and
Net Income Diluted Net Income Diluted
Allocation Shares(1) EPS Allocation Shares(1) EPS
------------ --------- --------- ------------ --------- -----------
Common shares $ 164,171 126,566 $ 1.30 $ 166,332 114,058 $ 1.46
Participating
securities 2,244 1,730 $ 1.30 211 145 $ 1.46
-------- --------- ----- -------- --------- -----
Total Company $ 166,415 128,296 $ 1.30 $ 166,543 114,203 $ 1.46
======== ========= ===== ======== ========= =====
____________________________________________
(1) Represents the weighted average shares outstanding during the period.
IV. Consolidated Balance Sheets
(In thousands)
Year Ended December 31,
-----------------------------
2025 2024
---------- ---------
ASSETS
Current assets:
Cash $ 79,899 $ 183,255
Accounts receivable 257,900 217,719
Prepaid income taxes 2,385 1,544
Other current assets 42,914 34,689
---------- ---------
Total current assets 383,098 437,207
Operating lease right-of-use assets 483,652 435,595
Property and equipment, net 225,309 197,930
Goodwill 1,479,192 1,234,707
Other identifiable intangible
assets, net 242,556 204,725
Non-current deferred tax asset 24,120 4,412
Other assets 20,461 6,588
---------- ---------
Total assets $ 2,858,388 $2,521,164
========== =========
LIABILITIES AND EQUITY
Current liabilities:
Current operating lease liabilities $ 84,582 $ 75,442
Current portion of long-term debt
and notes payable 10,738 10,093
Accounts payable 21,005 19,752
Accrued and other liabilities 220,922 201,899
---------- ---------
Total current liabilities 337,247 307,186
Non-current operating lease
liabilities 443,642 396,914
Long-term debt, net of current
portion 1,563,658 1,468,917
Non-current deferred tax liability 48,906 25,380
Other non-current liabilities 44,506 24,043
---------- ---------
Total liabilities 2,437,959 2,222,440
Redeemable non-controlling interests 19,404 18,013
Stockholders' equity:
Common stock, $0.01 par value,
700,000,000 shares authorized,
128,633,374 and 128,125,952 shares
issued and outstanding at December
31, 2025 and December 31, 2024,
respectively 1,286 1,281
Capital in excess of par 248,899 260,837
Retained earnings 146,448 13,553
Accumulated other comprehensive loss (3,352) --
---------- ---------
Total stockholders' equity 393,281 275,671
Non-controlling interests 7,744 5,040
---------- ---------
Total equity 401,025 280,711
---------- ---------
Total liabilities and equity $ 2,858,388 $2,521,164
========== =========
V. Consolidated Statements of Cash Flows
For the Fourth Quarters Ended December 31, 2025 and 2024
(In thousands, unaudited)
Quarter Ended December 31,
--------------------------------
2025 2024
----------- ----------
Operating activities
Net income $ 36,191 $ 22,800
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation and amortization 20,291 15,610
Gain on sale of assets (31) (1)
Stock compensation expense 3,606 1,827
Amortization of debt discount and
issuance costs 994 958
Deferred income taxes (1,275) (1,237)
Other 13 2
Changes in operating assets and
liabilities, net of effects of
business combinations:
Accounts receivable 22,712 14,481
Other current assets (736) (8,294)
Other assets 3,050 (176)
Accounts payable and accrued
liabilities 33,877 47,744
----------- ----------
Net cash provided by
operating activities 118,692 93,714
----------- ----------
Investing activities
Purchases of property and
equipment (20,168) (16,688)
Proceeds from sale of assets 36 2
----------- ----------
Net cash used in investing
activities (20,132) (16,686)
----------- ----------
Financing activities
Payments on revolving facilities (35,000) --
Payments on term loans (2,375) (2,125)
Principal payments on other debt (1,490) (2,293)
Dividends paid to common
stockholders (8,045) (7,959)
Repurchases of common shares (22,423) (15,403)
Proceeds from issuance of
non-controlling interests 2,866 --
Distributions to non-controlling
interests (2,135) (1,687)
Distributions to Select -- (1,128)
----------- ----------
Net cash used in financing
activities (68,602) (30,595)
----------- ----------
Net increase in cash 29,958 46,433
Cash at beginning of period 49,941 136,822
----------- ----------
Cash at end of period $ 79,899 $ 183,255
=========== ==========
Supplemental information
Cash paid for interest $ 14,834 $ 15,429
Cash paid for taxes $ 6,718 $ 6,426
Non-cash investing and financing
activities:
Liabilities for purchases of
property and equipment $ (5,745) $ 1,583
VI. Consolidated Statements of Cash Flows
For the Years Ended December 31, 2025 and 2024
(In thousands)
Year Ended December 31,
-----------------------------
2025 2024
-------- ----------
Operating activities
Net income $ 172,849 $ 171,897
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation and amortization 75,817 67,178
Equity in losses of
unconsolidated subsidiaries -- 3,676
Loss on early retirement of debt 51 --
(Gain) loss on sale of assets (773) 40
Stock compensation expense 10,490 2,327
Amortization of debt discount and
issuance costs 3,959 1,708
Deferred income taxes 7,890 (2,396)
Other 1,155 72
Changes in operating assets and
liabilities, net of effects of
business combinations:
Accounts receivable (11,136) (1,598)
Other current assets (6,441) 4,206
Other assets 7,570 2,973
Accounts payable and accrued
liabilities 17,966 24,594
-------- ----------
Net cash provided by
operating activities 279,397 274,677
-------- ----------
Investing activities
Business combinations, net of cash
acquired (333,300) (6,965)
Purchases of property and equipment (82,335) (64,327)
Proceeds from sale of assets 778 27
-------- ----------
Net cash used in investing
activities (414,857) (71,265)
-------- ----------
Financing activities
Borrowings on revolving facilities 85,000 --
Payments on revolving facilities (85,000) --
Borrowings from related party
revolving promissory note -- 10,000
Payments on related party revolving
promissory note -- (480,000)
Proceeds from term loans, net of
issuance costs 948,848 836,697
Payments on term loans (855,000) (2,125)
Proceeds from 6.875% senior notes,
net of issuance costs -- 637,337
Borrowings of other debt 6,575 8,222
Principal payments on other debt (10,037) (10,181)
Dividends paid to common
stockholders (32,077) (7,959)
Repurchase of common stock (22,423) (15,403)
Proceeds from issuance of
non-controlling interests 2,866 --
Distributions to non-controlling
interests (6,648) (5,913)
Proceeds from Initial Public
Offering -- 511,198
Dividend to Select -- (1,535,683)
Contributions from Select -- 2,279
-------- ----------
Net cash provided by (used
in) financing activities 32,104 (51,531)
-------- ----------
Net (decrease) increase in cash (103,356) 151,881
Cash at beginning of period 183,255 31,374
-------- ----------
Cash at end of period $ 79,899 $ 183,255
======== ==========
Supplemental information
Cash paid for interest $ 108,969 $ 49,650
Cash paid for taxes $ 45,910 $ 55,763
Non-cash investing and financing
activities:
Liabilities for purchases of
property and equipment $ 2,463 $ 5,241
VII. Disaggregated Revenue For the Fourth Quarters and Years
Ended December 31, 2025 and 2024 (In thousands, unaudited) The
following table disaggregates the Company's revenue for the
quarters and years ended December 31, 2025 and 2024:
Quarter Ended Year Ended
December 31, December 31,
------------------ ------------------------
2025 2024 2025 2024
------- ------- --------- ---------
Occupational health
centers:
Workers'
compensation $328,455 $289,130 $1,306,207 $1,156,082
Employer
services 151,853 137,203 659,541 596,052
Consumer health 8,119 8,192 31,302 31,519
Other
occupational
health center
revenue 2,133 2,507 8,602 8,752
------- ------- --------- ---------
Total
occupational
health
center
revenue 490,560 437,032 2,005,652 1,792,405
Onsite health
clinics 36,227 17,092 110,243 64,081
Other 12,293 10,917 47,522 43,706
------- ------- --------- ---------
Total revenue $539,080 $465,041 $2,163,417 $1,900,192
======= ======= ========= =========
VIII. Key Statistics For the Fourth Quarters Ended December 31, 2025 and
2024 The following table sets forth facility counts for our occupational
health centers and onsite health clinics operating segments for the
periods presented:
Quarter Ended December 31,
--------------------------------
Facility Count 2025 2024
-------------------- ----------
Number of occupational health
centers--start of period 628 549
Number of occupational health
centers acquired -- --
Number of occupational health centers
de novos 2 3
Number of occupational health centers
closed (2) --
------------ ----- --------
Number of occupational health
centers--end of period 628 552
============ ====== ========
Number of onsite health clinics--end of
period 411 157
The following table sets forth operating statistics for our
occupational health centers operating segment for the periods
presented:
Quarter Ended December 31,
----------------------------------
2025 2024 % Change
------------- -------------- -----------
Number of
patient visits
Workers'
compensation 1,559,160 1,429,344 9.1%
Employer
services 1,647,612 1,506,163 9.4%
Consumer
health 57,550 59,481 (3.2)%
------------- --------------
Total 3,264,322 2,994,988 9.0%
============= ==============
Visits per day
volume
Workers'
compensation 24,362 22,334 9.1%
Employer
services 25,744 23,534 9.4%
Consumer
health 899 929 (3.2)%
------------- --------------
Total 51,005 46,797 9.0%
============= ==============
Revenue per
visit(1)
Workers'
compensation $ 210.66 $ 202.28 4.1%
Employer
services 92.17 91.09 1.2%
Consumer
health 141.07 137.72 2.4%
------------- --------------
Total $ 149.63 $ 145.08 3.1%
============= ==============
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.
IX. Key Statistics For the Years Ended December 31, 2025 and 2024 The
following table sets forth facility counts for our occupational health
centers and onsite health clinics operating segments for the periods
presented:
Year Ended December 31,
-----------------------------
Facility Count 2025 2024
----------------- ----------
Number of occupational health
centers--start of period 552 544
Number of occupational health centers
acquired 72 3
Number of occupational health centers de
novos 7 6
Number of occupational health centers
closed (3) (1)
---------- ---- ------
Number of occupational health centers--end
of period 628 552
========== ===== ======
Number of onsite health clinics--end of
period 411 157
The following table sets forth operating statistics for our
occupational health centers operating segment for the periods
presented:
Year Ended December 31,
---------------------------------
2025 2024 % Change
----------- ------------ ----------
Number of
patient visits
Workers'
compensation 6,215,456 5,794,168 7.3%
Employer
services 7,104,227 6,596,573 7.7%
Consumer
health 227,024 232,762 (2.5)%
----------- ------------
Total 13,546,707 12,623,503 7.3%
=========== ============
Visits per day
volume
Workers'
compensation 24,374 22,633 7.7%
Employer
services 27,860 25,768 8.1%
Consumer
health 890 909 (2.1)%
----------- ------------
Total 53,124 49,311 (3) 7.7%
=========== ============
Revenue per
visit(1)
Workers'
compensation $ 210.15 $ 199.53 5.3%
Employer
services 92.84 90.36 2.7%
Consumer
health 137.88 135.41 1.8%
----------- ------------
Total $ 147.42 $ 141.30 4.3%
=========== ============
Business Days(2) 255 256
____________________________________________
(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.
X. Net Income to Adjusted EBITDA Reconciliation For the Fourth Quarters and
Years Ended December 31, 2025 and 2024 (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 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 to 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-based compensation expense,
acquisition-related costs, gains or losses on early retirement of debt,
separation transaction costs, and equity in earnings or losses from
unconsolidated subsidiaries. Adjusted EBITDA margin is calculated by dividing
Adjusted EBITDA by total revenue. Adjusted EBITDA margin 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.
Quarter Ended December 31, Year Ended December 31,
-------------------------------------------- ----------------------------------------------
2025 2024 2025 2024
--------------------- --------------------- ---------------------- ----------------------
% of % of % of % of
Amount Revenue(4) Amount Revenue(4) Amount Revenue(4) Amount Revenue(4)
------- ------------ ------- ------------ -------- ------------ -------- ------------
Reconciliation of Adjusted
EBITDA:
Net income(1) $36,191 6.7% $22,800 4.9% $172,849 8.0% $171,897 9.0%
Add (Subtract):
Income tax
expense 6,602 1.2 9,848 2.1 50,978 2.4 59,496 3.1
Interest
expense 26,866 5.0 26,439 5.7 109,290 5.1 47,714 2.5
Interest
expense on
related party
debt -- -- -- -- -- -- 21,980 1.2
Equity in
losses of
unconsolidated
subsidiaries -- -- -- -- -- -- 3,676 0.2
Loss on early
retirement of
debt -- -- -- -- 875 0.0 -- --
Stock
compensation
expense 3,606 0.7 1,827 0.4 10,490 0.5 2,327 0.1
Depreciation
and
amortization 20,291 3.8 15,610 3.4 75,817 3.5 67,178 3.6
Separation
transaction
costs(2) 1,393 0.3 124 0.0 4,093 0.2 1,693 0.1
Nova and Pivot
Onsite
Innovations
acquisition
costs 320 0.1 895 0.2 7,471 0.3 895 0.0
------ ----- ----- ------ ----- ----- ------- ----- ----- ------- ----- -----
Adjusted EBITDA(3) $95,269 17.7% $77,543 16.7% $431,863 20.0% $376,856 19.8%
====== ===== ==== ====== ===== ==== ======= ===== ==== ======= ===== ====
____________________________________________
(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 into a new, publicly traded company and are included within
general and administrative expenses on the 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
Fourth Quarters and Years Ended December 31, 2025 and 2024 (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. Concentra believes 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.
Quarter Ended December 31, Year Ended December 31,
---------------------------------------- --------------------------------------------
Per Per Per Per
2025 Share(4) 2024 Share(4) 2025 Share(4) 2024 Share(4)
------ --------- ------ --------- ------- --------- ------- -----------
Reconciliation of Adjusted
Net Income Attributable to
the Company:(1)
Net income
attributable to
the Company $34,685 $ 0.27 $21,512 $ 0.17 $166,415 $ 1.30 $166,543 $ 1.46
Adjustments:
Loss on early
retirement of
debt -- -- -- -- 875 0.01 -- --
Separation
transaction
costs(2) 1,393 0.01 124 0.00 4,093 0.03 1,693 0.01
Nova and Pivot
Onsite
Innovations
acquisition
costs 320 0.00 895 0.01 7,471 0.06 895 0.01
------ ------- ------ ------- ------- ------- ------- -------
Total additions
(subtractions),
net $ 1,713 $ 0.01 $ 1,019 $ 0.01 $ 12,439 $ 0.10 $ 2,588 $ 0.02
Less: tax effect
of
adjustments(3) (264) (0.00) (308) (0.00) (2,836) (0.02) (665) (0.01)
------ ------- ------ ------- ------- ------- ------- -------
Adjusted Net Income
Attributable to
the Company $36,134 $ 0.28 $22,223 $ 0.17 $176,018 $ 1.37 $168,466 $ 1.48
====== ======= ====== ======= ======= ======= ======= =======
Weighted average
shares outstanding
- diluted 128,688 127,643 128,296 114,203
____________________________________________
(1) Beginning in the second quarter of 2025, we updated the schedule for all
periods presented to include Net Income Attributable to the Company.
Management believes this measure will provide an improved insight into
the performance of our business.
(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 into a new, publicly traded company and are included within
general and administrative expenses on the consolidated statements of
operations.
(3) Tax impact is calculated using the annual effective tax rate, including
discrete costs and benefits.
(4) Totals in this column may not foot due to rounding.
XII. Net Cash Provided by Operating Activities to Free Cash Flow
Reconciliation For the Fourth Quarters and Years Ended December
31, 2025 and 2024 (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 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. Concentra believes
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 these measures 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. The following table
reconciles net cash provided by operating activities to Free Cash
Flow.
Quarter Ended
December 31, Year Ended December 31,
-------------------- -----------------------
2025 2024 2025 2024
------- ------- -------- -------
Reconciliation of
Free Cash Flow:
Net cash
provided by
operating
activities $118,692 $ 93,714 $ 279,397 $274,677
Add (Subtract):
Net cash used
in investing
activities (20,132) (16,686) (414,857) (71,265)
Business
combinations,
net of cash
acquired -- -- 333,300 6,965
------- ------- -------- -------
Free Cash Flow $ 98,560 $ 77,028 $ 197,840 $210,377
======= ======= ======== =======
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 $ 176 $191
Net income attributable to non-controlling
interests 6 6
---- ---
Net income $ 182 $197
Income tax expense 61 66
Interest expense 105 105
---- ---
Income from operations 348 368
Stock compensation expense 21 21
Depreciation and amortization 81 81
---- ---
Adjusted EBITDA $ 450 $470
==== ===
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 table 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 $ 280 $ 295
Add (Subtract):
Net cash used in investing activities (84) (74)
Business combinations, net of cash acquired 4 4
----- ----
Free Cash Flow $ 200 $ 225
===== ====
View source version on businesswire.com: https://www.businesswire.com/news/home/20260226277306/en/
CONTACT:
Investor inquiries:
Bill Chapman
Vice President, Strategy & Investor Relations
972-725-6488
ir@concentra.com
(END) Dow Jones Newswires
February 26, 2026 16:30 ET (21:30 GMT)