[Executive Summary](index=1&type=section&id=Executive%20Summary) [Second Quarter 2025 Highlights](index=1&type=section&id=Second%20Quarter%202025%20Highlights) Concentra's second quarter saw robust financial and operational growth, with revenue increasing 15.2% and Adjusted EBITDA up 13.2%. Patient visits per day rose by 9.5%, and the company expanded its facility count through acquisitions, notably closing on Pivot Onsite Innovations | Metric | Q2 2025 | Q2 2024 | % Change | | :----------------------- | :---------- | :---------- | :--------- | | Revenue | $550.8 million | $477.9 million | 15.2% | | Net income | $46.2 million | $53.1 million | (12.9)% | | Adjusted EBITDA | $115.0 million | $101.6 million | 13.2% | | Patient Visits per Day | 55,005 | - | 9.5% | | Revenue per Visit | $145.92 | $139.81 | 4.4% | | Occupational Health Centers | 628 | 547 | 14.8% | | Onsite Health Clinics | 406 | 154 | 163.6% | - Closed on the acquisition of Pivot Onsite Innovations on June 1st, contributing to the expansion of total locations to over **1,000**[5](index=5&type=chunk)[10](index=10&type=chunk) - Announced the appointment of Brigid Bonner and Vipin Gopal to the board of directors[5](index=5&type=chunk) [CEO and CFO Commentary](index=1&type=section&id=CEO%20and%20CFO%20Commentary) CEO Keith Newton highlighted strong Q2 results driven by growth in patient visits, rate, revenue, and Adjusted EBITDA, attributing success to disciplined strategy execution. CFO Matt DiCanio emphasized the successful integration of recent acquisitions (Nova Medical Centers and Pivot Onsite Innovations) for top-line growth and operational efficiencies, expanding the combined network to over 1,000 locations - CEO Keith Newton noted strong Q2 results across key measures, including growth in patient visits, rate, revenue, and Adjusted EBITDA, positioning the company for continued momentum[2](index=2&type=chunk) - CFO Matt DiCanio reported good progress on the integration of Nova Medical Centers and Pivot Onsite Innovations, which will contribute to increased top-line growth and operational efficiencies[2](index=2&type=chunk) - Acquisitions and development efforts have expanded Concentra's high-quality workplace health services to over **1,000** combined occupational health center and onsite health clinic locations[2](index=2&type=chunk) [Financial Performance Summary](index=1&type=section&id=Financial%20Performance%20Summary) [Second Quarter 2025 Financial Overview](index=1&type=section&id=Second%20Quarter%202025%20Financial%20Overview) For Q2 2025, Concentra reported a 15.2% increase in revenue to $550.8 million and a 6.7% rise in income from operations to $89.5 million. Net income, however, decreased by 12.9% to $46.2 million, primarily due to higher interest expense from the IPO recapitalization. Adjusted EBITDA increased by 13.2% to $115.0 million | Metric | Q2 2025 (in millions) | Q2 2024 (in millions) | % Change | | :----------------------- | :-------------------- | :-------------------- | :--------- | | Revenue | $550.8 | $477.9 | 15.2% | | Income from operations | $89.5 | $83.9 | 6.7% | | Net income | $46.2 | $53.1 | (12.9)% | | Earnings per share | $0.35 | $0.50 | - | | Adjusted Earnings per Share | $0.37 | $0.49 | - | | Adjusted EBITDA | $115.0 | $101.6 | 13.2% | - The decrease in net income was primarily attributed to higher interest expense resulting from the IPO recapitalization[4](index=4&type=chunk) [Year to Date June 30, 2025 Financial Overview](index=2&type=section&id=Year%20to%20Date%20June%2030%2C%202025%20Financial%20Overview) For the first six months of 2025, Concentra's revenue grew 11.2% to $1,051.5 million, and income from operations increased 6.5% to $169.9 million. Net income for the period was $86.8 million, a 16.0% decrease from the prior year, while Adjusted EBITDA rose 10.1% to $217.7 million | Metric | YTD Q2 2025 (in millions) | YTD Q2 2024 (in millions) | % Change | | :----------------------- | :------------------------ | :------------------------ | :--------- | | Revenue | $1,051.5 | $945.5 | 11.2% | | Income from operations | $169.9 | $159.4 | 6.5% | | Net income | $86.8 | $103.3 | (16.0)% | | Earnings per share | $0.65 | $0.97 | - | | Adjusted Earnings per Share | $0.70 | $0.98 | - | | Adjusted EBITDA | $217.7 | $197.7 | 10.1% | [Balance Sheet](index=2&type=section&id=Balance%20Sheet) As of June 30, 2025, Concentra reported a cash balance of $73.9 million, total debt of $1,665.9 million, and total assets of $2,841.6 million. The net leverage ratio stood at 3.8x, in compliance with credit agreement covenants, with targets to reduce it to approximately 3.5x by year-end 2025 and less than 3.0x by year-end 2026 | Metric | June 30, 2025 (in millions) | December 31, 2024 (in millions) | | :------------------- | :-------------------------- | :---------------------------- | | Cash | $73.9 | $183.3 | | Total debt | $1,665.9 | - | | Total assets | $2,841.6 | $2,521.2 | | Net leverage ratio | 3.8x | - | - The company is targeting a net leverage ratio of approximately **3.5x** by the end of 2025 and less than **3.0x** by the end of 2026[8](index=8&type=chunk) [Cash Flow](index=2&type=section&id=Cash%20Flow) Concentra's operating cash flow for Q2 2025 increased to $88.4 million from $70.4 million in the prior year, driven by higher income from operations and timing of payables. Investing activities used $79.5 million, primarily for acquisitions and capital expenditures, while financing activities generated $12.9 million | Metric | Q2 2025 (in millions) | Q2 2024 (in millions) | | :-------------------------------- | :-------------------- | :-------------------- | | Net cash provided by operating activities | $88.4 | $70.4 | | Net cash used in investing activities | $79.5 | $15.3 | | Net cash provided by financing activities | $12.9 | ($54.1) | | Net increase in cash | $21.8 | $1.1 | - The increase in operating cash flow was primarily due to higher income from operations and the timing of payroll and other payables[9](index=9&type=chunk) - Investing activities included **$54.3 million** for acquisition-related spend and **$25.2 million** for capital expenditures, with **$7.4 million** for Nova integration and rebranding[9](index=9&type=chunk) [Operational Highlights & Corporate Actions](index=2&type=section&id=Operational%20Highlights%20%26%20Corporate%20Actions) [Pivot Onsite Innovations Acquisition Closing](index=2&type=section&id=Pivot%20Onsite%20Innovations%20Acquisition%20Closing) Effective June 1, 2025, Concentra acquired Pivot Onsite Innovations for $54.4 million, expanding its network by over 240 onsite health clinics across more than 40 states. This acquisition increased Concentra's total onsite health clinics to over 400, financed by a combination of its revolving credit facility and cash on hand - Concentra acquired Pivot Onsite Innovations for **$54.4 million**, effective June 1, 2025[10](index=10&type=chunk) - The acquisition added over **240** onsite health clinics, expanding Concentra's total to over **400** onsite health clinics in over **40** states[11](index=11&type=chunk) - The transaction was financed using **$35.0 million** from the existing Revolving Credit Facility and the remainder with cash on hand[11](index=11&type=chunk) [Dividend Declaration](index=2&type=section&id=Dividend) On August 6, 2025, Concentra's Board of Directors declared a cash dividend of $0.0625 per share, payable on August 28, 2025, to stockholders of record as of August 21, 2025. The company noted that future dividend declarations are at the discretion of the Board, considering various financial and operational factors - A cash dividend of **$0.0625** per share was declared on August 6, 2025[12](index=12&type=chunk) - The dividend is payable on August 28, 2025, to stockholders of record as of August 21, 2025[12](index=12&type=chunk) - Future dividend declarations are subject to Board discretion, considering financial condition, operating results, cash needs, and debt terms[13](index=13&type=chunk) [Company Overview](index=3&type=section&id=Company%20Overview) Concentra is the largest occupational health services provider in the U.S., operating 628 occupational health centers and 406 onsite health clinics across 47 states, serving approximately 215,000 employer customers. The company's mission is to improve workforce health, supported by 13,000 colleagues and affiliated medical professionals, providing occupational, consumer, and direct-to-employer health services - Concentra is the largest provider of occupational health services in the United States by number of locations[15](index=15&type=chunk) - As of June 30, 2025, the company operates **628** occupational health centers and **406** onsite health clinics across **47** states, serving approximately **215,000** employer customers[5](index=5&type=chunk)[15](index=15&type=chunk) - The company's mission is to improve the health of America's workforce, supporting over **50,000** patients daily with a suite of occupational and consumer health services[15](index=15&type=chunk) [2025 Business Outlook](index=3&type=section&id=2025%20Business%20Outlook) [2025 Business Outlook Details](index=3&type=section&id=2025%20Business%20Outlook%20Details) Concentra raised its financial guidance for FY 2025, now expecting revenue between $2.13 billion and $2.16 billion and Adjusted EBITDA between $420 million and $430 million. Capital expenditures and net leverage ratio targets remain unchanged - Concentra raised its financial guidance for the full year 2025[14](index=14&type=chunk) | Metric | FY 2025 Guidance (Low) | FY 2025 Guidance (High) | | :-------------------- | :----------------------- | :------------------------ | | Revenue | $2.13 billion | $2.16 billion | | Adjusted EBITDA | $420 million | $430 million | | Capital expenditures | $80 million | $90 million | | Net leverage ratio | ~3.5x | ~3.5x | [Forward-Looking Statements](index=4&type=section&id=Forward-Looking%20Statements) [Forward-Looking Statements Disclaimer](index=4&type=section&id=Forward-Looking%20Statements%20Disclaimer) The report includes forward-looking statements regarding Concentra's 2025 and long-term business outlook, which are subject to various risks and uncertainties. These factors, including changes in regulations, labor costs, competition, security breaches, and economic conditions, could cause actual results to differ materially from projections. The company is not obligated to update these statements - Statements regarding Concentra's 2025 and long-term business outlook are forward-looking and subject to risks and uncertainties[19](index=19&type=chunk) - Actual results may differ materially due to factors such as frequency of work-related injuries, changes in relationships with customers/payors, regulatory changes, labor shortages, and competition[19](index=19&type=chunk) - The company is under no obligation to publicly update or revise any forward-looking statements, and investors should not place undue reliance on them[20](index=20&type=chunk) [Conference Call Information](index=3&type=section&id=Conference%20Call) [Conference Call Details](index=3&type=section&id=Conference%20Call%20Details) Concentra will host a conference call on August 8, 2025, at 9 a.m. Eastern Time to discuss its second-quarter financial results and business outlook. The call will be accessible via a live webcast on the company's investor relations website, with a replay available afterward. Participants can also join via audio-only dial-in - Concentra will host a conference call on Friday, August 8, 2025, at 9 a.m. Eastern Time to discuss Q2 financial results and business outlook[16](index=16&type=chunk) - The conference call will be available as a live webcast via the Earnings Call Webcast Link or Concentra's investor relations website[16](index=16&type=chunk) - Audio-only participation and Q&A access are available via toll-free and international dial-in numbers[17](index=17&type=chunk) [Financial Statements and Reconciliations](index=6&type=section&id=Financial%20Statements%20and%20Reconciliations) [Condensed Consolidated Statements of Operations](index=6&type=section&id=I.%20Condensed%20Consolidated%20Statements%20of%20Operations) This section presents the unaudited condensed consolidated statements of operations for Concentra, detailing revenue, costs and expenses, income from operations, and net income for the three and six months ended June 30, 2025 and 2024. It highlights changes in key income statement items over these periods - The statements provide a detailed breakdown of revenue, cost of services, general and administrative expenses, and depreciation and amortization[23](index=23&type=chunk)[26](index=26&type=chunk) - Income from operations increased for both the three and six months ended June 30, 2025, while net income decreased due to higher interest expenses[23](index=23&type=chunk)[26](index=26&type=chunk) [Three Months Ended June 30, 2025 and 2024](index=6&type=section&id=I.%20Condensed%20Consolidated%20Statements%20of%20Operations%20For%20the%20Second%20Quarter%20Ended%20June%2030%2C%202025%20and%202024) | Metric | Q2 2025 (in thousands) | Q2 2024 (in thousands) | % Change | | :------------------------------------ | :--------------------- | :--------------------- | :--------- | | Revenue | $550,785 | $477,915 | 15.2% | | Income from operations | $89,542 | $83,944 | 6.7% | | Net income | $46,194 | $53,059 | (12.9)% | | Net income attributable to the Company | $44,560 | $51,737 | (13.9)% | | Interest (expense) income | ($28,193) | $205 | N/M | - General and administrative expenses, exclusive of depreciation and amortization, increased significantly by **43.7%** in Q2 2025[23](index=23&type=chunk) [Six Months Ended June 30, 2025 and 2024](index=7&type=section&id=II.%20Condensed%20Consolidated%20Statements%20of%20Operations%20For%20the%20Six%20Months%20Ended%20June%2030%2C%202025%20and%202024) | Metric | YTD Q2 2025 (in thousands) | YTD Q2 2024 (in thousands) | % Change | | :------------------------------------ | :------------------------- | :------------------------- | :--------- | | Revenue | $1,051,537 | $945,513 | 11.2% | | Income from operations | $169,861 | $159,442 | 6.5% | | Net income | $86,836 | $103,338 | (16.0)% | | Net income attributable to the Company | $83,471 | $100,693 | (17.1)% | | Interest (expense) income | ($53,741) | $94 | N/M | - General and administrative expenses, exclusive of depreciation and amortization, increased by **35.1%** for the six months ended June 30, 2025[26](index=26&type=chunk) [Earnings per Share](index=8&type=section&id=III.%20Earnings%20per%20Share) This section details the computation of basic and diluted earnings per share (EPS) for the three and six months ended June 30, 2025 and 2024. For 2025, the company applied the two-class method due to unvested restricted shares being participating securities, which was not applicable in 2024 - For the three and six months ended June 30, 2025, the Company applied the two-class method for EPS calculation due to unvested restricted shares being participating securities[28](index=28&type=chunk) - In 2024, there were no participating shares or securities outstanding, simplifying the EPS calculation[29](index=29&type=chunk) [Three and Six Months Ended June 30, 2025 and 2024](index=8&type=section&id=III.%20Earnings%20per%20Share%20For%20the%20Three%20and%20Six%20Months%20Ended%20June%2030%2C%202025%20and%202024) | Metric | Q2 2025 | Q2 2024 | YTD Q2 2025 | YTD Q2 2024 | | :------------------------------------ | :------ | :------ | :---------- | :---------- | | Basic and Diluted EPS (Common shares) | $0.35 | $0.50 | $0.65 | $0.97 | | Net income attributable to the Company | $44,560 | $51,737 | $83,471 | $100,693 | | Weighted average shares outstanding | 128,171 | 104,094 | 128,159 | 104,094 | [Condensed Consolidated Balance Sheets](index=9&type=section&id=IV.%20Condensed%20Consolidated%20Balance%20Sheets) Concentra's balance sheet as of June 30, 2025, shows total assets of $2,841.6 million, an increase from $2,521.2 million at December 31, 2024. This growth was primarily driven by increases in goodwill and other identifiable intangible assets, reflecting recent acquisitions. Total liabilities also increased to $2,474.2 million, with long-term debt rising to $1,652.0 million | Metric | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | | :-------------------------------- | :--------------------------- | :----------------------------- | | Total assets | $2,841,584 | $2,521,164 | | Cash | $73,872 | $183,255 | | Goodwill | $1,480,653 | $1,234,707 | | Other Identifiable intangible assets, net | $257,261 | $204,725 | | Total liabilities | $2,474,204 | $2,222,440 | | Long-term debt, net of current portion | $1,652,003 | $1,468,917 | | Total stockholders' equity | $342,636 | $275,671 | - Goodwill increased significantly from **$1,234.7 million** to **$1,480.7 million**, and other identifiable intangible assets also rose, reflecting acquisition activities[32](index=32&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=V.%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This section provides the unaudited condensed consolidated statements of cash flows, detailing cash generated from operating, investing, and financing activities for the three and six months ended June 30, 2025 and 2024. It highlights the impact of acquisitions and debt-related activities on the company's cash position - Operating activities consistently provided positive cash flow in both periods, driven by net income and non-cash adjustments[33](index=33&type=chunk)[34](index=34&type=chunk) - Investing activities were a significant use of cash, primarily due to business combinations and capital expenditures[33](index=33&type=chunk)[34](index=34&type=chunk) - Financing activities showed a net cash inflow for Q2 2025 and YTD 2025, largely influenced by borrowings on revolving facilities and term loans, offset by dividend payments and debt repayments[33](index=33&type=chunk)[34](index=34&type=chunk) [Three Months Ended June 30, 2025 and 2024](index=10&type=section&id=V.%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows%20For%20the%20Three%20Months%20Ended%20June%2030%2C%202025%20and%202024) | Metric | Q2 2025 (in thousands) | Q2 2024 (in thousands) | | :-------------------------------- | :--------------------- | :--------------------- | | Net cash provided by operating activities | $88,379 | $70,433 | | Net cash used in investing activities | ($79,508) | ($15,262) | | Business combinations, net of cash acquired | ($54,282) | — | | Net cash provided by (used in) financing activities | $12,892 | ($54,054) | | Net increase in cash and cash equivalents | $21,763 | $1,117 | [Six Months Ended June 30, 2025 and 2024](index=11&type=section&id=VI.%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows%20For%20the%20Six%20Months%20Ended%20June%2030%2C%202025%20and%202024) | Metric | YTD Q2 2025 (in thousands) | YTD Q2 2024 (in thousands) | | :-------------------------------- | :------------------------- | :------------------------- | | Net cash provided by operating activities | $100,078 | $115,055 | | Net cash used in investing activities | ($374,257) | ($37,615) | | Business combinations, net of cash acquired | ($333,300) | ($5,144) | | Proceeds from term loans, net of issuance costs | $948,848 | — | | Payments on term loans | ($850,250) | — | | Net (decrease) increase in cash | ($109,383) | $19,295 | [Disaggregated Revenue](index=12&type=section&id=VII.%20Disaggregated%20Revenue) This section disaggregates Concentra's revenue by service type for the three and six months ended June 30, 2025 and 2024. Occupational health centers, particularly workers' compensation and employer services, remain the primary revenue drivers, with significant growth also observed in onsite health clinics - Occupational health centers are the primary revenue source, with workers' compensation and employer services being the largest contributors[35](index=35&type=chunk) - Onsite health clinics revenue showed strong growth for both the quarter and year-to-date periods[35](index=35&type=chunk) [Three and Six Months Ended June 30, 2025 and 2024](index=12&type=section&id=VII.%20Disaggregated%20Revenue%20For%20the%20Three%20and%20Six%20Months%20Ended%20June%2030%2C%202025%20and%202024) | Revenue Category | Q2 2025 (in thousands) | Q2 2024 (in thousands) | % Change (Q2) | YTD Q2 2025 (in thousands) | YTD Q2 2024 (in thousands) | % Change (YTD) | | :----------------------------- | :--------------------- | :--------------------- | :------------ | :------------------------- | :------------------------- | :------------- | | Workers' compensation | $332,191 | $288,405 | 15.2% | $634,298 | $568,271 | 11.6% | | Employer services | $174,318 | $153,305 | 13.7% | $334,458 | $304,040 | 10.0% | | Onsite health clinics | $22,569 | $15,539 | 45.2% | $39,119 | $31,396 | 24.6% | | Total revenue | $550,785 | $477,915 | 15.2% | $1,051,537 | $945,513 | 11.2% | [Key Operational Statistics](index=13&type=section&id=VIII.%20Key%20Statistics) This section provides key operational statistics for Concentra's occupational health centers, including facility counts, patient visits, and revenue per visit, for the three and six months ended June 30, 2025 and 2024. It highlights growth in patient volumes and revenue efficiency - The number of occupational health centers and onsite health clinics increased significantly year-over-year, reflecting expansion efforts[36](index=36&type=chunk)[38](index=38&type=chunk) - Total patient visits and visits per day volume showed healthy growth across workers' compensation and employer services segments[36](index=36&type=chunk)[38](index=38&type=chunk) - Revenue per visit increased across all service categories, indicating improved pricing or service mix[36](index=36&type=chunk)[38](index=38&type=chunk) [Three Months Ended June 30, 2025 and 2024](index=13&type=section&id=VIII.%20Key%20Statistics%20For%20the%20Second%20Quarter%20Ended%20June%2030%2C%202025%20and%202024) | Metric | Q2 2025 | Q2 2024 | % Change | | :-------------------------------- | :---------- | :---------- | :--------- | | Number of occupational health centers—end of period | 628 | 547 | 14.8% | | Number of onsite health clinics operated—end of period | 406 | 154 | 163.6% | | Total patient visits | 3,520,320 | 3,214,255 | 9.5% | | Visits per day volume (Total) | 55,005 | 50,223 | 9.5% | | Revenue per visit (Total) | $145.92 | $139.81 | 4.4% | - Workers' compensation patient visits increased by **9.3%**, and employer services visits by **10.3%**[36](index=36&type=chunk) [Six Months Ended June 30, 2025 and 2024](index=14&type=section&id=IX.%20Key%20Statistics%20For%20the%20Six%20Months%20Ended%20June%2030%2C%202025%20and%202024) | Metric | YTD Q2 2025 | YTD Q2 2024 | % Change | | :-------------------------------- | :---------- | :---------- | :--------- | | Number of occupational health centers—end of period | 628 | 547 | 14.8% | | Number of occupational health centers acquired | 72 | 2 | 3500.0% | | Number of onsite health clinics operated—end of period | 406 | 154 | 163.6% | | Total patient visits | 6,724,688 | 6,369,910 | 5.6% | | Visits per day volume (Total) | 52,950 | 49,765 | 6.4% | | Revenue per visit (Total) | $146.41 | $139.45 | 5.0% | - The company acquired **72** occupational health centers during the six-month period, significantly contributing to facility count growth[38](index=38&type=chunk) [Net Income to Adjusted EBITDA Reconciliation](index=15&type=section&id=X.%20Net%20Income%20to%20Adjusted%20EBITDA%20Reconciliation) This section provides the reconciliation of net income to Adjusted EBITDA for the three and six months ended June 30, 2025 and 2024. Adjusted EBITDA is presented as a non-GAAP measure to offer insight into core operating performance by excluding items like interest, taxes, depreciation, amortization, stock-based compensation, and acquisition-related costs - Adjusted EBITDA is a non-GAAP measure used to provide useful insight into the underlying performance of the business by excluding items that may obscure trends in core operating results[41](index=41&type=chunk)[42](index=42&type=chunk) - Adjusted EBITDA is defined as net income before interest, income taxes, depreciation and amortization, stock-based compensation, acquisition-related costs, and other specific non-recurring items[42](index=42&type=chunk) [Three and Six Months Ended June 30, 2025 and 2024](index=15&type=section&id=X.%20Net%20Income%20to%20Adjusted%20EBITDA%20Reconciliation%20For%20the%20Three%20and%20Six%20Months%20Ended%20June%2030%2C%202025%20and%202024) | Metric | Q2 2025 (in thousands) | Q2 2024 (in thousands) | YTD Q2 2025 (in thousands) | YTD Q2 2024 (in thousands) | | :-------------------------------- | :--------------------- | :--------------------- | :------------------------- | :------------------------- | | Net income | $46,194 | $53,059 | $86,836 | $103,338 | | Adjusted EBITDA | $115,018 | $101,600 | $217,677 | $197,742 | | Adjusted EBITDA Margin | 20.9% | 21.3% | 20.7% | 20.9% | | Interest expense (income) | $28,193 | ($205) | $53,741 | ($94) | | Nova and Pivot Onsite Innovations acquisition costs | $2,833 | — | $5,970 | — | [Reconciliation of EPS to Adjusted EPS](index=16&type=section&id=XI.%20Reconciliation%20of%20Earnings%20per%20Share%20to%20Adjusted%20Earnings%20per%20Share) This section provides a reconciliation of GAAP earnings per share (EPS) to Adjusted Earnings per Share, a non-GAAP measure. Adjusted EPS is used by management to offer a clearer view of ongoing operational performance by excluding non-recurring costs such as acquisition costs and separation transaction costs, all on an after-tax basis - Adjusted Net Income Attributable to the Company and Adjusted Earnings per Share are non-GAAP measures used to provide useful insight into the underlying performance of the business[47](index=47&type=chunk) - Adjusted Net Income Attributable to the Company excludes gain (loss) on early retirement of debt, separation transaction costs, acquisition costs, and other non-recurring costs, all on an after-tax basis[48](index=48&type=chunk) [Three and Six Months Ended June 30, 2025 and 2024](index=16&type=section&id=XI.%20Reconciliation%20of%20Earnings%20per%20Share%20to%20Adjusted%20Earnings%20per%20Share%20For%20the%20Three%20and%20Six%20Months%20Ended%20June%2030%2C%202025%20and%202024) | Metric | Q2 2025 | Q2 2024 | YTD Q2 2025 | YTD Q2 2024 | | :------------------------------------ | :------ | :------ | :---------- | :---------- | | Net income attributable to the Company | $44,560 | $51,737 | $83,471 | $100,693 | | Adjusted Net Income Attributable to the Company | $47,717 | $51,454 | $89,891 | $101,914 | | Adjusted Earnings per Share | $0.37 | $0.49 | $0.70 | $0.98 | | Nova and Pivot Onsite Innovations acquisition costs | $2,833 | — | $5,970 | — | [2025 Net Income to Adjusted EBITDA Reconciliation (Business Outlook)](index=17&type=section&id=XII.%202025%20Net%20Income%20to%20Adjusted%20EBITDA%20Reconciliation%20Business%20Outlook%20for%20the%20Year%20Ending%20December%2031%2C%202025) This section provides a reconciliation of the full year 2025 Adjusted EBITDA expectations to net income, as part of the raised business outlook. The reconciliation details estimated adjustments for items such as income tax expense, interest expense, depreciation and amortization, and acquisition costs to arrive at the projected Adjusted EBITDA range of $420 million to $430 million - The reconciliation provides estimated full year 2025 expectations for Adjusted EBITDA, ranging from **$420 million** to **$430 million**[54](index=54&type=chunk)[55](index=55&type=chunk) | Metric | Low (in millions) | High (in millions) | | :------------------------------------ | :---------------- | :----------------- | | Net income attributable to the Company | $157 | $164 | | Net income | $163 | $171 | | Adjusted EBITDA | $420 | $430 | | Adjusted Net Income Attributable to the Company | $165 | $172 | - Key adjustments in the reconciliation include estimated income tax expense of **$54-56 million**, interest expense of **$109 million**, and Nova and Pivot Onsite Innovations acquisition costs of **$6 million**[55](index=55&type=chunk)

Core Viewpoint - Concentra Group (CON) is anticipated to report a year-over-year decline in earnings despite an increase in revenues for the quarter ended June 2025, with the actual results being a significant factor influencing its near-term stock price [1][2]. Earnings Expectations - The upcoming earnings report is expected to be released on August 7, with a consensus estimate of quarterly earnings at $0.37 per share, reflecting a year-over-year decrease of 24.5%. Revenues are projected to be $536.8 million, which is a 12.3% increase from the previous year [3][2]. Estimate Revisions - Over the last 30 days, the consensus EPS estimate has been revised downwards by 0.47%, indicating a collective reassessment by analysts regarding the company's earnings outlook [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that the Most Accurate Estimate for Concentra is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -7.56%, suggesting a bearish sentiment among analysts [12]. Historical Performance - In the last reported quarter, Concentra was expected to post earnings of $0.31 per share but exceeded expectations with actual earnings of $0.32, resulting in a surprise of +3.23%. Over the past four quarters, the company has beaten consensus EPS estimates three times [13][14]. Investment Considerations - Despite the potential for an earnings beat, Concentra does not currently appear to be a compelling candidate for such an outcome, and investors are advised to consider other factors before making investment decisions [17].

Core Viewpoint - Concentra Group (CON) has experienced significant selling pressure, resulting in a 5.8% decline over the past four weeks, but analysts anticipate better earnings than previously predicted, indicating potential for recovery [1]. Group 1: Technical Analysis - The Relative Strength Index (RSI) is utilized to determine if a stock is oversold, with readings below 30 indicating oversold conditions [2]. - CON's current RSI reading is 28.87, suggesting that the heavy selling may be exhausting itself and a trend reversal could be imminent [5]. - RSI serves as a tool to identify potential price reversals, allowing investors to seek entry points for anticipated rebounds [3]. Group 2: Fundamental Analysis - Analysts have raised earnings estimates for CON, with a consensus EPS estimate increase of 0% over the last 30 days, which typically correlates with price appreciation [7]. - CON holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, further supporting the potential for a turnaround [8].

Group 1 - Concentra Group (CON) has outperformed its Medical sector peers, gaining approximately 3.3% year-to-date, while the average loss for Medical stocks is 3.3% [4] - The Zacks Rank for Concentra Group is 2 (Buy), indicating a positive outlook based on earnings estimates and revisions [3] - The Zacks Consensus Estimate for Concentra Group's full-year earnings has increased by 1.5% over the past three months, reflecting improved analyst sentiment [4] Group 2 - Concentra Group is part of the Medical Services industry, which consists of 58 stocks and currently ranks 65 in the Zacks Industry Rank, with an average loss of 2.4% year-to-date [6] - Boston Scientific (BSX), another Medical stock, has returned 15.3% year-to-date and has a Zacks Rank of 2 (Buy) [5] - The Medical - Products industry, to which Boston Scientific belongs, has moved up by 6.1% year-to-date and is currently ranked 152 [6]

Core Viewpoint - Concentra Group (CON) has seen a 2.9% increase in share price over the past four weeks, closing at $22.03, with a mean price target of $28 indicating a potential upside of 27.1% [1] Price Targets and Analyst Consensus - The average price target consists of eight estimates ranging from a low of $25 to a high of $30, with a standard deviation of $1.85, suggesting a potential increase of 13.5% to 36.2% from the current price [2] - A low standard deviation indicates a high degree of agreement among analysts regarding the stock's price movement, which can serve as a starting point for further research [9] Earnings Estimates and Market Sentiment - Analysts are optimistic about CON's earnings prospects, as indicated by a positive trend in earnings estimate revisions, which historically correlates with stock price movements [11] - Over the last 30 days, the Zacks Consensus Estimate for the current year has increased by 1.5%, with three estimates moving higher and no negative revisions [12] Zacks Rank and Investment Potential - CON holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates, suggesting a strong potential for upside in the near term [13]

Company Overview - Benitec Biopharma Limited (BNTC) is a notable stock within the Medical sector, currently ranked 5 in the Zacks Sector Rank, which evaluates 16 different groups based on the average Zacks Rank of individual stocks [2] - BNTC has a Zacks Rank of 2 (Buy), indicating a favorable outlook based on earnings estimate revisions and improving earnings prospects [3] Performance Metrics - Over the past 90 days, the Zacks Consensus Estimate for BNTC's full-year earnings has increased by 61.8%, reflecting improved analyst sentiment and a more positive earnings outlook [4] - Year-to-date, BNTC has returned 7.7%, significantly outperforming the average return of -5.6% for Medical companies as a whole [4] - In the Medical - Biomedical and Genetics industry, which includes 506 stocks, BNTC is performing better than the average loss of 6.5% this year, currently ranked 77 in the Zacks Industry Rank [6] Comparative Analysis - Another outperforming stock in the Medical sector is Concentra Group (CON), which has returned 14.9% year-to-date and has a Zacks Rank of 2 (Buy) [5] - Concentra Group belongs to the Medical Services industry, which has seen a year-to-date decline of -2.4% and consists of 58 stocks currently ranked 51 [6] Future Outlook - Investors interested in Medical stocks should monitor Benitec Biopharma Limited and Concentra Group for potential continued strong performance [7]

Summary of Concentra Group Holdings Parent (CON) 2025 Conference Call Company Overview - Concentra is the largest primary care provider of occupational health care services in the United States, focusing on workplace health and injury management [1][2] - The company treats approximately 20% of all workers' compensation injuries in the U.S., working with over 215,000 employers [3][4] Core Business Lines - **Workers' Compensation Services**: - Majority of visits are related to musculoskeletal injuries, with 40-50% referred to therapy [7][8] - Reimbursement is based on state fee schedules, which vary by state [10][11] - **Employer Services**: - Includes drug screenings and physicals, with direct negotiations for pricing with employers [12][9] - Services are fee-for-service, with no capitation or at-risk payments [13] - **On-site Services and Telemedicine**: - Concentra offers on-site health services at employer locations and a telemedicine platform, expanding their service offerings [16][17] Financial Performance and Growth Strategy - Revenue growth is targeted in the mid to high single digits, driven by same-center visits, pricing adjustments, and small acquisitions [18][21] - Workers' compensation volumes were flat in Q1, but positive growth was observed in subsequent months [22][23] - Employer Services experienced a decline post-COVID but showed signs of recovery with a 10-15% increase in volume [25][46] Market Dynamics - The company operates in a diversified market, with no single industry representing more than 10% of revenues [29] - Historical resilience during economic downturns, with modest declines in EBITDA during the global financial crisis [30][31] Pricing and Rate Adjustments - Workers' compensation rates are influenced by state fee schedules, with an average growth of 3% historically [19][37] - Approximately 20 states have a Consumer Price Index (CPI) or Medical Economic Index (MEI) tied to their fee schedules, allowing for potential rate increases in line with inflation [39][40] Future Outlook - Positive trends in both workers' compensation and employer services are expected to continue, contingent on economic stability [27][47] - The company is focused on integrating recent acquisitions and reducing leverage, targeting a leverage ratio of 3.0x within 18-24 months [62][63] Additional Insights - The company is exploring new service offerings, such as background checks, to enhance employer services [53] - Behavioral health services are being expanded through telemedicine, reflecting growing demand [59] This summary encapsulates the key points discussed during the conference call, highlighting Concentra's business model, financial performance, market dynamics, and future growth strategies.

Group 1 - Concentra Group (CON) closed at $21.40, with a 5.5% gain over the past four weeks, and a mean price target of $28 suggests a 30.8% upside potential [1] - The average price targets range from $25 to $30, with a standard deviation of $1.85, indicating a low variability among analysts' estimates [2] - Analysts are optimistic about CON's earnings prospects, with a positive trend in earnings estimate revisions, which historically correlates with stock price movements [4][11] Group 2 - The Zacks Consensus Estimate for the current year has increased by 1.5% over the past month, with three estimates revised higher and no negative revisions [12] - CON holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates [13] - While the consensus price target may not be a reliable indicator of the stock's potential gain, it does suggest a positive direction for price movement [13]

Financial Data and Key Metrics Changes - Revenue for Q1 2025 was $500.8 million, a 7.1% increase from $467.6 million in Q1 2024, representing an 8.9% growth on a revenue per day basis [8][11] - Adjusted EBITDA increased to $102.7 million in Q1 2025 from $96.1 million in Q1 2024, a 6.8% increase, with adjusted EBITDA margin slightly decreasing from 20.6% to 20.5% [8][18] - Net income was $40.6 million, lower than the same quarter last year, primarily due to increased interest expenses and transaction costs related to acquisitions [9][10] Business Line Data and Key Metrics Changes - Total patient visits per day increased by 3.2% year over year to 50,900, with a 0.6% increase to 49,600 when excluding the Nova acquisition [5][11] - Workers' compensation revenue was $302.1 million, an 8% increase year over year, with visits per day up 2.4% [12] - Employer services revenue increased by 6.2% to $160.1 million, with visits per day up 3.9% [13] Market Data and Key Metrics Changes - The company reported strong growth in both workers' compensation and employer services, indicating a positive trend in the occupational health market [6][9] - The acquisition of Nova Medical Centers and other strategic acquisitions are expected to enhance market presence and service offerings [7][22] Company Strategy and Development Direction - The company is focused on expanding its footprint through acquisitions, with the recent Nova acquisition and plans for the Pivot On-site acquisition, which will significantly increase its operational scale [7][24] - The strategy includes enhancing employer relationships and scaling the on-site health segment, which is projected to double in revenue due to the Pivot acquisition [24][25] - The company aims to maintain a leverage ratio of approximately 3.5 times by the end of 2025 and 3.0 times within the next 18 to 24 months, focusing on debt repayment and organic growth initiatives [26] Management's Comments on Operating Environment and Future Outlook - Management noted that despite macroeconomic uncertainties, there has been no observed impact on visit volumes, which is seen as a positive indicator [27][28] - The company is well-positioned to handle potential economic slowdowns, leveraging its history of managing costs effectively during downturns [31][32] - Future growth is anticipated from potential increases in manufacturing jobs due to reshoring efforts, which could drive visit growth at the company's centers [28][29] Other Important Information - The company declared a cash dividend of $0.0625 per share, payable on May 29, 2025 [21] - The company ended Q1 2025 with a total debt balance of $1.6 billion and a cash balance of $52 million, with a net leverage ratio of 3.9 times [20] Q&A Session Summary Question: Discussion on Employer Services volumes and turnaround - Management indicated that the positive performance in Employer Services volumes is attributed to improved sales and marketing efforts, with cautious optimism for continued growth [39][41] Question: Future growth with recent acquisitions - Management emphasized the importance of scaling operations and enhancing partnerships within the managed care ecosystem to drive future growth [43][44] Question: Workers' compensation visit growth and long-term outlook - Management acknowledged that while organic growth was slightly slower than expected, they anticipate positive growth moving forward [53][54] Question: Impact of inflation on rates - Management explained that rates typically adjust in line with inflation, with historical patterns showing timely adjustments to fee schedules [61][64] Question: Cost structure and labor efficiency - Management highlighted that labor constitutes a significant portion of costs, with teams effectively managing staffing levels in response to visit volumes [102][103]

Financial Data and Key Metrics Changes - Revenue for Q1 2025 was $500.8 million, a 7.1% increase from $467.6 million in Q1 2024, representing an 8.9% growth rate on a revenue per day basis [8][12] - Adjusted EBITDA was $102.7 million, up 6.8% from $96.1 million in the same quarter last year, with a slight decrease in adjusted EBITDA margin from 20.6% to 20.5% [8][19] - Net income was $40.6 million, lower than the same quarter last year primarily due to increased interest expenses and transaction costs related to acquisitions [10][19] Business Line Data and Key Metrics Changes - Total patient visits per day increased 3.2% year over year to 50,900, with a 0.6% increase to 49,600 when excluding the Nova acquisition [5][12] - Workers' compensation revenue was $302.1 million, an 8% increase year over year, with visits per day up 2.4% [13] - Employer services revenue increased 6.2% to $160.1 million, with visits per day up 3.9%, marking a turnaround from previous declines [14][19] Market Data and Key Metrics Changes - The company reported strong growth in both workers' compensation and employer services, indicating a positive trend in visit volumes across all service lines [6][10] - The acquisition of Nova Medical Centers contributed positively to the company's performance, although it only accounted for one month of results in Q1 [4][10] Company Strategy and Development Direction - The company is focused on corporate development, having recently completed several acquisitions, including Nova and Physician Health Center, and is set to close the Pivot On-site acquisition [7][25] - The strategy includes expanding the on-site health clinics business, which is expected to double revenue in that segment and enhance overall service offerings [24][25] - The company aims to maintain a leverage ratio of approximately 3.5 times by the end of 2025 and is committed to deleveraging while focusing on organic growth initiatives [26][27] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the current macroeconomic environment, noting no observed impact on visit volumes despite broader economic uncertainties [28][29] - The company is well-positioned to handle potential economic slowdowns, leveraging its history of managing costs effectively during downturns [31][32] - Future growth is anticipated from potential increases in manufacturing jobs due to reshoring efforts, which could drive visit growth at the company's centers [30][32] Other Important Information - The company declared a cash dividend of $0.0625 per share, payable on May 29, 2025 [22] - The company ended Q1 2025 with a total debt balance of $1.6 billion and a cash balance of $52 million, with a net leverage ratio of 3.9 times [21] Q&A Session Summary Question: Discussion on Employer Services volumes and turnaround - Management noted that the turnaround in employer services was aided by improved sales and marketing efforts, leading to increased optimism among employers [38][40] Question: Future growth with recent acquisitions - Management highlighted that the acquisitions enhance partnerships within the managed care ecosystem, driving additional volume and growth opportunities [42][44] Question: Workers' compensation performance and outlook - Management acknowledged that while organic growth was slightly slower than expected, they anticipate continued positive growth in the future [51][52] Question: Impact of inflation on rates - Management indicated that rates typically adjust in line with inflation, with historical patterns showing timely updates to fee schedules [58][60] Question: Cost of services performance and labor efficiencies - Management confirmed that labor efficiencies and revenue increases contributed to lower costs as a percentage of revenue, with ongoing investments in technology to enhance efficiency [62][64] Question: Guidance update and acquisition impacts - Management clarified that the updated guidance includes contributions from recent acquisitions, with expectations for continued strong performance [66][68]