Financial Data and Key Metrics Changes - Total company revenue for Q2 2025 was $550.8 million, a 15.2% increase year over year from $477.9 million in Q2 2024. Excluding contributions from Nova, revenue was $519.4 million, resulting in an 8.7% increase over the prior year [6][10] - Adjusted EBITDA was $115 million in Q2 2025, compared to $101.6 million in the same quarter prior year, reflecting a 13.2% increase. Adjusted EBITDA margin decreased from 21.3% in Q2 2024 to 20.9% in Q2 2025 [9][20] - Adjusted net income attributable to the company was $47.7 million, with adjusted earnings per share at $0.37 for Q2 2025 [10] Business Line Data and Key Metrics Changes - In the occupational health center segment, total revenue was $516.1 million in Q2 2025, a 14.4% increase year over year. Workers' compensation revenue was $332.2 million, up 15.2% from the prior year [11][12] - Employer services revenue increased to $174.3 million, a 13.7% rise from the prior year, with visits per day increasing by 10.3% [12] - Excluding the impact of Nova, total revenue in the occupational health center segment was $484.8 million, a 7.4% increase year over year [13] Market Data and Key Metrics Changes - Total patient visits increased by 9.5% in Q2 2025, averaging approximately 55,000 visits per day. Workers' compensation visits per day increased by 9.3%, while employer services visits increased by 10.3% [7][8] - Excluding the impact from the acquisition of Nova, total visits per day increased by 2.4% [7] Company Strategy and Development Direction - The company is focused on integrating the Nova and Pivot acquisitions while continuing to expand its de novo site openings, with plans for two to three additional sites by the end of the year [4][25] - The company aims to capture remaining operational and back office synergies from the Nova acquisition, estimating over 70% of planned synergies captured by the end of Q2 [24] - The company is pursuing a strategy of both de novo openings and small bolt-on M&A deals, with a focus on maintaining a leverage ratio below three times by 2026 [26][38] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the stability of visit trends and the broader economy, noting no significant slowdown in hiring trends [30][31] - The company anticipates a strong rate year in 2026, benefiting from state-specific fee schedule adjustments tied to recent legislation [34][36] - Management highlighted the ongoing separation from Select Medical, with significant progress made towards complete separation by November 2026 [36] Other Important Information - The company declared a cash dividend of $6.25 per share, payable on or about August 28, 2025 [28] - The company ended Q2 2025 with a total debt balance of $1.67 billion and a cash balance of $74 million, with a net leverage ratio of 3.8 times [21] Q&A Session Summary Question: Can you walk through the changes to revenue and adjusted EBITDA guidance? - Management indicated that the guidance was raised due to strong performance in revenue and EBITDA, factoring in contributions from recent acquisitions [42][44] Question: What is the updated count of on-site health clinics following the Pivot acquisition? - The updated count is approximately 240 on-site clinics, with no change to the revenue figure previously stated [47][48] Question: What explains the softer trend in Q1 for workers' compensation? - Management noted that various dynamics influenced Q1 performance, but overall, they expect to see low single-digit growth rates over time [51][53] Question: How does the company view the long-term organic growth for employer services? - Management anticipates long-term organic growth in the low single-digit range, around 1% to 2% per year from M&A and de novo efforts [82] Question: How does the company manage labor dynamics? - The company has historically not faced significant labor pressures due to its staffing model, which relies on medical assistants rather than more scarce nursing roles [98]

Q2 2025 Performance Highlights - Concentra's Q2 2025 total revenue increased by 152% year-over-year to $5508 million, with an 87% increase excluding the impact of the Nova acquisition[17] - Adjusted EBITDA for Q2 2025 grew by 132% year-over-year to $1150 million[17] - The number of onsite health clinics significantly increased to 406, a rise of 252 clinics, primarily due to the Pivot Onsite acquisition[17] - Revenue per visit (RPV) increased by 44% year-over-year to $146 in Q2 2025[17] YTD 2025 Performance Highlights - Total revenue for YTD 2025 increased by 112% year-over-year to $10515 billion, or 121% on a per-day basis[18] - Adjusted EBITDA for YTD 2025 increased by 101% year-over-year to $2177 million[18] - The number of occupational health centers increased to 628, a rise of 81 centers, due to the Nova acquisition and other M&A activities[18] - Revenue per visit (RPV) increased by 50% year-over-year to $146 in YTD 2025[18] Guidance and Financial Strategy - The company is raising its FY 2025 revenue guidance to $213 billion-$216 billion and Adjusted EBITDA guidance to $420 million-$430 million[16] - Concentra is targeting a net leverage ratio of less than 30x by the end of 2026[16]

Group 1 - Concentra Group reported quarterly earnings of $0.37 per share, matching the Zacks Consensus Estimate, but down from $0.49 per share a year ago [1] - The company achieved revenues of $550.79 million for the quarter ended June 2025, exceeding the Zacks Consensus Estimate by 2.61% and up from $477.92 million year-over-year [2] - Concentra has surpassed consensus EPS estimates three times over the last four quarters [2] Group 2 - The stock has added approximately 0.8% since the beginning of the year, underperforming compared to the S&P 500's gain of 7.9% [3] - The current consensus EPS estimate for the upcoming quarter is $0.41 on revenues of $565.74 million, and for the current fiscal year, it is $1.35 on revenues of $2.14 billion [7] - The Zacks Industry Rank indicates that the Medical Services sector is in the top 40% of over 250 Zacks industries, suggesting a favorable outlook for the industry [8]

[PART I FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%20FINANCIAL%20INFORMATION) This section provides the unaudited condensed consolidated financial statements and related notes for Concentra Group Holdings Parent, Inc [Item 1. Condensed Consolidated Financial Statements](index=3&type=section&id=ITEM%201.%20CONDENSED%20CONSOLIDATED%20FINANCIAL%20STATEMENTS) This section presents the unaudited condensed consolidated financial statements for Concentra Group Holdings Parent, Inc. as of June 30, 2025, and for the three and six-month periods then ended, including balance sheets, statements of operations, comprehensive income, changes in equity, and cash flows, along with accompanying notes [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The company's balance sheet shows increased assets and liabilities, primarily driven by goodwill from recent acquisitions and higher long-term debt Condensed Consolidated Balance Sheets (in thousands) | Balance Sheet Items | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | | :--- | :--- | :--- | | **Total Assets** | **$2,841,584** | **$2,521,164** | | Total Current Assets | $395,167 | $437,207 | | Goodwill | $1,480,653 | $1,234,707 | | **Total Liabilities** | **$2,474,204** | **$2,222,440** | | Long-term debt, net | $1,652,003 | $1,468,917 | | **Total Equity** | **$347,820** | **$280,711** | - Total assets increased to **$2.84 billion** as of June 30, 2025, from **$2.52 billion** at year-end 2024, primarily driven by a significant increase in Goodwill from **$1.23 billion** to **$1.48 billion**, reflecting recent acquisitions[9](index=9&type=chunk) - Total liabilities rose to **$2.47 billion**, largely due to an increase in long-term debt to **$1.65 billion** from **$1.47 billion** at the end of 2024, used to finance acquisitions[9](index=9&type=chunk) [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Despite revenue growth, net income declined due to increased interest and general and administrative expenses Income Statement (Three Months Ended June 30, in thousands) | Income Statement | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | | :--- | :--- | :--- | | **Revenue** | **$550,785** | **$477,915** | | Income from operations | $89,542 | $83,944 | | **Net income attributable to the Company** | **$44,560** | **$51,737** | | **Basic and diluted EPS** | **$0.35** | **$0.50** | Income Statement (Six Months Ended June 30, in thousands) | Income Statement | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | | :--- | :--- | :--- | | **Revenue** | **$1,051,537** | **$945,513** | | Income from operations | $169,861 | $159,442 | | **Net income attributable to the Company** | **$83,471** | **$100,693** | | **Basic and diluted EPS** | **$0.65** | **$0.97** | - Despite a **15.2% YoY revenue increase** for Q2 2025, net income attributable to the company decreased to **$44.6 million** from **$51.7 million** in Q2 2024, primarily due to higher interest expense and general & administrative costs[11](index=11&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20consolidated%20Statements%20of%20Cash%20Flows) Cash flow from investing activities significantly increased due to business combinations, largely funded by new debt Cash Flow Statement (Six Months Ended June 30, in thousands) | Cash Flow Statement | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | | :--- | :--- | :--- | | **Net cash provided by operating activities** | **$100,078** | **$115,055** | | Net cash used in investing activities | ($374,257) | ($37,615) | | Net cash provided by (used in) financing activities | $164,796 | ($58,145) | | **Net (decrease) increase in cash** | **($109,383)** | **$19,295** | | Cash at end of period | $73,872 | $50,669 | - Cash used in investing activities significantly increased to **$374.3 million** in the first six months of 2025, up from **$37.6 million** in the prior year period, driven by **$333.3 million** spent on business combinations[23](index=23&type=chunk) - Financing activities provided **$164.8 million** in cash, primarily from new term loan proceeds (**$948.8 million**) and revolver borrowings (**$85.0 million**), which were used to pay down old term loans (**$850.3 million**) and fund acquisitions[23](index=23&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed explanations of the accounting policies and specific financial items, covering long-term debt, revenue disaggregation, segment information, significant acquisitions, and derivative instruments [Note 6. Long-Term Debt](index=12&type=section&id=Note%206.%20Long-Term%20Debt) Total long-term debt increased to **$1.666 billion** as of June 30, 2025, primarily due to new term loans and revolving credit facility borrowings to fund acquisitions, with amended credit terms securing more favorable interest rates Debt Component (Principal Outstanding) | Debt Component | Principal Outstanding (June 30, 2025) | | :--- | :--- | | 6.875% senior notes | $650,000,000 | | Revolving Credit Facility | $85,000,000 | | Term Loan | $947,625,000 | | **Total Debt** | **$1,689,661,000** | - In March 2025, the company amended its Credit Agreement to increase the Revolving Credit Facility by **$50.0 million** to **$450.0 million** and added a **$102.1 million** incremental term loan, bringing the total Term Loan to **$950.0 million**[53](index=53&type=chunk) - As of June 30, 2025, the company had **$342.8 million** of availability under its Revolving Credit Facility and its leverage ratio was **3.8x**, well below the required maximum of **6.50 to 1.00**[54](index=54&type=chunk) [Note 9. Revenue](index=15&type=section&id=Note%209.%20Revenue) Revenue is primarily generated from occupational health centers, with workers' compensation and employer services as the main service lines Revenue by Source (Three Months Ended June 30, in thousands) | Revenue by Source | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | | :--- | :--- | :--- | | Workers' compensation | $332,191 | $288,405 | | Employer services | $174,318 | $153,305 | | Total occupational health center revenue | $516,138 | $451,240 | | **Total revenue** | **$550,785** | **$477,915** | Revenue by Source (Six Months Ended June 30, in thousands) | Revenue by Source | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | | :--- | :--- | :--- | | Workers' compensation | $634,298 | $568,271 | | Employer services | $334,458 | $304,040 | | Total occupational health center revenue | $989,060 | $892,312 | | **Total revenue** | **$1,051,537** | **$945,513** | [Note 12. Commitments and Contingencies](index=17&type=section&id=Note%2012.%20Commitments%20and%20Contingencies) The company is involved in various legal proceedings, including a California Department of Insurance investigation, class action lawsuits related to a third-party data breach, and a DOJ investigation into physical therapy billing practices - The company received a subpoena from the California Department of Insurance in February 2024 related to an investigation into billing and coding for physical therapy claims[72](index=72&type=chunk) - Concentra is a defendant in consolidated class action lawsuits following a data breach at its third-party medical transcription vendor, Perry Johnson & Associates, Inc. (PJ&A), which potentially affected nearly **four million patients**[73](index=73&type=chunk)[74](index=74&type=chunk) - A DOJ investigation into potential False Claims Act violations related to physical therapy billing at former parent Select Medical is ongoing, with a related qui tam lawsuit unsealed, though the DOJ has not intervened[75](index=75&type=chunk) [Note 14. Acquisitions](index=20&type=section&id=Note%2014.%20Acquisitions) In 2025, the company completed two significant acquisitions, Nova Medical Centers and Pivot Onsite Innovations, expanding its occupational health and onsite clinic footprint, funded by new debt and cash, resulting in substantial goodwill and intangible asset recognition - Acquired Nova Medical Centers for **$265.0 million** on March 1, 2025, adding **67** occupational health centers, with preliminary purchase price allocation including **$207.0 million** in goodwill and **$38.8 million** in customer relationships[84](index=84&type=chunk)[85](index=85&type=chunk)[92](index=92&type=chunk) - Acquired Pivot Onsite Innovations for **$54.4 million** on June 1, 2025, adding over **240** onsite health clinics, with preliminary allocation including **$34.4 million** in goodwill and **$14.3 million** in customer relationships[94](index=94&type=chunk)[95](index=95&type=chunk)[101](index=101&type=chunk) Pro Forma Results (Unaudited, Six Months Ended June 30, in thousands) | Pro Forma Results (Unaudited) | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | | :--- | :--- | :--- | | Total revenue | $1,098,450 | $1,041,382 | | Net income attributable to the Company | $90,829 | $103,762 | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=26&type=section&id=ITEM%202.%20MANAGEMENT'S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) Management discusses the company's financial performance for Q2 and H1 2025, highlighting strong revenue growth driven by acquisitions and organic volume, but a decline in net income due to higher costs and increased interest expense, along with liquidity and non-GAAP measures [Operating Metrics](index=30&type=section&id=Operating%20Metrics) The company's occupational health centers showed strong growth in the first half of 2025, with increases in total patient visits, visits per day, and revenue per visit across all service lines Key Metrics (Six Months Ended June 30) | Key Metrics (Six Months Ended June 30) | 2025 | 2024 | % Change | | :--- | :--- | :--- | :--- | | Total Patient Visits | 6,724,688 | 6,369,910 | 5.6% | | Total VPD Volume | 52,950 | 49,765 | 6.4% | | Total Revenue per visit | $146.41 | $139.45 | 5.0% | - For the six months ended June 30, 2025, workers' compensation VPD volume increased by **5.9%** and employer services VPD volume increased by **7.1%** compared to the same period in 2024[138](index=138&type=chunk) [Results of Operations](index=31&type=section&id=Results%20of%20Operations) For Q2 2025, revenue grew **15.2% YoY** to **$550.8 million**, driven by acquisitions and a **9.5% increase** in patient visit volume, but net income attributable to the company fell to **$44.6 million** from **$51.7 million**, impacted by higher G&A expenses and increased interest expense - **Q2 2025 vs Q2 2024:** Revenue increased **15.2%** to **$550.8 million**, driven by acquisitions and a **9.5% increase** in total patient visits, with revenue per visit increasing **4.4%**[144](index=144&type=chunk)[145](index=145&type=chunk)[146](index=146&type=chunk) - **H1 2025 vs H1 2024:** Revenue increased **11.2%** to **$1.05 billion**, driven by a **5.6% increase** in patient visits and a **5.0% increase** in revenue per visit[156](index=156&type=chunk)[157](index=157&type=chunk)[158](index=158&type=chunk) - General and administrative expenses rose to **9.6% of revenue** in Q2 2025 from **7.7%** in Q2 2024, due to acquisition costs, separation costs, and increased personnel to support operations as a standalone public company[149](index=149&type=chunk) - Interest expense was **$28.2 million** in Q2 2025, compared to interest income of **$0.2 million** in Q2 2024, due to new debt issued in July 2024 and March 2025 to fund operations and acquisitions[153](index=153&type=chunk) [Liquidity and Capital Resources](index=38&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains a solid liquidity position with **$73.9 million** in cash and **$342.8 million** available under its revolving credit facility, despite a decrease in net working capital due to acquisition funding Cash Flow Summary (Six Months Ended June 30, in thousands) | Cash Flow Summary | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | | :--- | :--- | :--- | | Net cash from operating activities | $100,078 | $115,055 | | Net cash used in investing activities | ($374,257) | ($37,615) | | Net cash from/(used in) financing activities | $164,796 | ($58,145) | - As of June 30, 2025, the company had **$73.9 million** in cash and **$342.8 million** of availability under its Revolving Credit Facility[187](index=187&type=chunk) - The company declared and paid two quarterly dividends of **$0.0625 per share** in 2025, totaling **$16.0 million**, with a further dividend declared on August 6, 2025[190](index=190&type=chunk) [Non-GAAP Measures](index=36&type=section&id=Non-GAAP%20Measures) Management uses Adjusted EBITDA and Adjusted Net Income to evaluate performance, with Adjusted EBITDA increasing to **$115.0 million** in Q2 2025, despite a slight margin decrease, primarily due to adjustments for interest, taxes, D&A, stock compensation, and one-time separation and acquisition costs Adjusted EBITDA Reconciliation (Three Months Ended June 30, in thousands) | Adjusted EBITDA Reconciliation | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | | :--- | :--- | :--- | | Net income | $46,194 | $53,059 | | Adjustments (Interest, Taxes, D&A, etc.) | $68,824 | $48,541 | | **Adjusted EBITDA** | **$115,018** | **$101,600** | | **Adjusted EBITDA Margin** | **20.9%** | **21.3%** | Adjusted Net Income Reconciliation (Three Months Ended June 30) | Adjusted Net Income Reconciliation | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net income attributable to the Company | $44,560 | $51,737 | | Adjustments (Separation/Acquisition costs, net of tax) | $3,157 | ($283) | | **Adjusted Net Income** | **$47,717** | **$51,454** | | **Adjusted EPS** | **$0.37** | **$0.49** | [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=40&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) The company is exposed to interest rate risk from its variable-rate long-term debt, but mitigates this through derivative swap and collar contracts on **$600 million** of its term loan principal, with a **0.25%** interest rate increase estimated to raise annual interest expense by **$1.6 million** on unhedged debt - The company has **$947.6 million** in term loan borrowings and **$85.0 million** in Revolving Credit Facility borrowings subject to variable interest rates indexed to Term SOFR[194](index=194&type=chunk)[195](index=195&type=chunk) - To mitigate risk, the company uses derivative contracts to hedge **$600 million** of its term loan principal: a swap fixing the rate at **3.829%** on **$300 million**, and a collar with a **4.500% cap** and **3.001% floor** on another **$300 million**[196](index=196&type=chunk)[197](index=197&type=chunk) - Each **0.25% increase** in market interest rates is estimated to increase the company's annual interest expense by **$1.6 million** on its variable rate debt[198](index=198&type=chunk) [Item 4. Controls and Procedures](index=41&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) Management concluded that the company's disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal control over financial reporting during the second quarter - The principal executive officer and principal financial officer concluded that as of June 30, 2025, the company's disclosure controls and procedures were effective[200](index=200&type=chunk) - No changes occurred during the second quarter ended June 30, 2025, that have materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[201](index=201&type=chunk) [PART II OTHER INFORMATION](index=42&type=section&id=PART%20II%20OTHER%20INFORMATION) This section provides additional information beyond the financial statements, including legal proceedings, risk factors, other disclosures, and a list of exhibits [Item 1. Legal Proceedings](index=42&type=section&id=ITEM%201.%20LEGAL%20PROCEEDINGS) This section refers to Note 12 of the financial statements for information on legal proceedings, including a California Department of Insurance investigation, lawsuits related to a third-party data breach, and a DOJ investigation into physical therapy billing - For details on legal proceedings, the report refers to the 'Litigation' section within Note 12 of the condensed consolidated financial statements[205](index=205&type=chunk) [Item 1A. Risk Factors](index=42&type=section&id=ITEM%201A.%20RISK%20FACTORS) There have been no material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K for the year ended December 31, 2024, and the Quarterly Report on Form 10-Q for the quarter ended March 31, 2025 - The company reports no material changes from the risk factors previously disclosed in its 2024 Form 10-K and Q1 2025 Form 10-Q[206](index=206&type=chunk) [Item 5. Other Information](index=42&type=section&id=ITEM%205.%20OTHER%20INFORMATION) This section discloses that on May 28, 2025, trusts affiliated with Executive Chairman Robert Ortenzio entered into Rule 10b5-1 trading plans for the potential sale of up to **1.1 million shares** of common stock through August 31, 2026 - On May 28, 2025, trusts affiliated with Executive Chairman Robert Ortenzio entered into Rule 10b5-1 trading plans for the potential sale of up to **1.1 million shares** of common stock[210](index=210&type=chunk) [Item 6. Exhibits](index=43&type=section&id=ITEM%206.%20EXHIBITS) This section lists the exhibits filed with the Form 10-Q, including certifications by the CEO and CFO as required by the Sarbanes-Oxley Act, and XBRL data files - The exhibits filed with this report include CEO and CFO certifications pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act[211](index=211&type=chunk)

Financial Performance - Consolidated Edison reported a net income of $246 million or $0.68 per share for Q2 2025, an increase from $202 million or $0.58 per share in Q2 2024 [1] - For the first half of 2025, net income reached $1,038 million or $2.93 per share, compared to $922 million or $2.67 per share in the same period of 2024 [2] - Adjusted earnings for Q2 2025 were $240 million or $0.67 per share, up from $203 million or $0.59 per share in Q2 2024 [1] - Adjusted earnings for the first six months of 2025 were $1,032 million or $2.91 per share, compared to $945 million or $2.73 per share in the first half of 2024 [2] Strategic Initiatives - The company is focused on disciplined investments in infrastructure to enhance reliability and resilience against extreme weather [3] - Con Edison secured approval to invest $440 million in five key projects aimed at advancing building and transportation electrification, indicating strong regulatory support [3] - The company reaffirmed its adjusted earnings per share guidance for 2025 to be in the range of $5.50 to $5.70 [3] Project Developments - Major transmission projects in Brooklyn and Staten Island have been completed, contributing to long-term reliability for customers [3] - The company continues to execute complex energy projects that benefit both customers and shareholders [3] Regulatory Environment - The company benefits from regulatory support for its strategy and the state's clean energy goals, as evidenced by the approval of significant investments [3]

[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]