Form type: 10-Q
Period end: 2026-06-30
| Three Months Ended June 30, 2026 | Three Months Ended June 30, 2025 | Six Months Ended June 30, 2026 | Six Months Ended June 30, 2025 | |
|---|---|---|---|---|
| Revenue | 606,030,000 | 550,785,000 | ||
| Total Revenue | ||||
| Cost of revenue | 413,933,000 | 389,334,000 | ||
| Total COGS | ||||
| Gross Profit | ||||
| General and administrative | 56,677,000 | 52,931,000 | ||
| Income tax expense (benefit) | 22,046,000 | 15,155,000 | ||
| Interest expense, net | 25,723,000 | 28,193,000 | ||
| Net income attributable to noncontrolling interests | 2,000,000 | 1,634,000 | ||
| Other income statement items (derived) | 453,000 | -20,000 | ||
| Other operating costs | 19,899,000 | 18,998,000 | ||
| Total Expenses | ||||
| Net Income | ||||
| Net income (loss) available to common stockholders | ||||
| Basic earnings per share |
| June 30, 2026 | December 31, 2025 | |
|---|---|---|
| Assets | ||
| Accounts receivable | 299,819,000 | 257,900,000 |
| Cash and cash equivalents | 158,038,000 | 79,899,000 |
| Deferred tax assets | 22,511,000 | 24,120,000 |
| Goodwill and intangibles | 1,480,421,000 | 1,721,748,000 |
| Operating lease right-of-use assets | 522,421,000 | 0 |
| Other assets (derived) | 0 | 198,182,000 |
| Other current assets | 0 | 42,914,000 |
| Other intangible assets, net | 232,267,000 | 242,556,000 |
| Other noncurrent assets | 20,132,000 | 20,461,000 |
| Prepaid expenses and other current assets | 48,626,000 | 45,299,000 |
| Property, plant and equipment | 226,040,000 | 225,309,000 |
| Total Assets | ||
| Liabilities | ||
| Accounts payable | 36,415,000 | 21,005,000 |
| Debt and finance lease obligations | 1,561,211,000 | 1,561,867,000 |
| Deferred tax liabilities | 47,079,000 | 48,906,000 |
| Finance lease liabilities, current | 0 | 167,000 |
| Finance lease liabilities, noncurrent | 0 | 1,624,000 |
| Operating lease liabilities, current | 87,208,000 | 84,582,000 |
| Operating lease liabilities, noncurrent | 482,988,000 | 443,642,000 |
| Other accrued liabilities | 68,057,000 | 60,319,000 |
| Other liabilities (derived) | 169,395,000 | 170,506,000 |
| Other noncurrent liabilities | 44,634,000 | 44,506,000 |
| Taxes payable | 6,864,000 | 835,000 |
| Total Liabilities | ||
| Temporary equity | ||
| Redeemable noncontrolling interests | 21,706,000 | 19,404,000 |
| Total temporary equity | ||
| Equity | ||
| Stockholders equity | 477,095,000 | 393,281,000 |
| Total stockholders equity attributable to parent | ||
| Noncontrolling interests | 7,623,000 | 7,744,000 |
| Total Equity | ||
| Six Months Ended June 30, 2026 | Six Months Ended June 30, 2025 | |
|---|---|---|
| Operating activities | ||
| Net income | 115,787,000 | 83,471,000 |
| Depreciation and amortization | 39,547,000 | 35,617,000 |
| Stock-based compensation | 8,265,000 | 4,554,000 |
| Changes in operating assets and liabilities, net | -7,370,000 | -23,564,000 |
| Net cash from operating activities | ||
| Investing activities | ||
| Investing activities, net | -29,043,000 | -374,257,000 |
| Net cash from investing activities | - | - |
| Financing activities | ||
| Financing activities, net | -49,047,000 | 164,796,000 |
| Net cash from financing activities | - | |
| Net change in cash | - | |
| Cash at beginning of period | 183,255,000 | |
| Cash at end of period | 73,872,000 | |
| Six Months Ended June 30, 2026 | Six Months Ended June 30, 2025 | |
|---|---|---|
| Balance at beginning of period | 401,025,000 | 280,711,000 |
| Net income | 115,787,000 | 83,471,000 |
| Other equity movements | -32,094,000 | -16,362,000 |
| Balance at end of period | 484,718,000 | 347,820,000 |
Concentra Group Holdings Parent, Inc. is a public reporting company classified under Services-Specialty Outpatient Facilities. The accompanying condensed consolidated financial statements as of and for the period ended June 30, 2026 are unaudited and have been prepared from the Company's books and records in accordance with generally accepted accounting principles for interim financial information. In the opinion of management, all adjustments necessary for a fair statement of the results for the interim period have been included, and the results of operations for the interim period are not necessarily indicative of the results that may be expected for the full fiscal year.
Revenue for the period was $606,030,000, compared with $550,785,000 in the prior period, an increase of 10.0%. Cost of revenue was $413,933,000, compared with $389,334,000 in the prior period, and general and administrative expenses were $56,677,000, compared with $52,931,000 in the prior period. Net income for the period was $65,299,000. Basic earnings per share was $0.51, computed on the basis of weighted-average basic shares outstanding of 125,102,000. Net income attributable to noncontrolling interests was $2,000,000, compared with $1,634,000 in the prior period.
Debt and finance lease obligations totaled $1,561,211,000 at period end, compared with $1,652,003,000 at the end of the prior period, a decrease of 5.5%. Interest expense, net was $25,723,000 for the period, compared with $28,193,000 in the prior period. The Company leases facilities under operating lease arrangements, and operating lease right-of-use assets were $522,421,000 at period end, compared with $473,334,000 in the prior period. Related operating lease liabilities consisted of a current portion of $87,208,000 and a noncurrent portion of $482,988,000, compared with $83,279,000 and $430,439,000, respectively, in the prior period. Finance lease liabilities, both current and noncurrent, were zero at period end. Total debt, including lease obligations, was $2,503,851,000 at period end.
Stockholders' equity was $477,095,000 at period end, compared with $342,636,000 at the end of the prior period, an increase of 39.2%. Noncontrolling interests were $7,623,000, compared with $5,184,000 in the prior period, and redeemable noncontrolling interests were $21,706,000, compared with $19,560,000 in the prior period. Total equity, inclusive of noncontrolling interests, was $484,718,000 at period end.
| Current | Prior | |
|---|---|---|
| Debt and finance lease obligations | 1,561,211,000 | 1,561,867,000 |
| Finance lease liabilities, current | 0 | 167,000 |
| Finance lease liabilities, noncurrent | 0 | 1,624,000 |
| Operating lease liabilities, current | 87,208,000 | 84,582,000 |
| Operating lease liabilities, noncurrent | 482,988,000 | 443,642,000 |
| Total debt | 2,131,407,000 | 2,091,882,000 |
| Current | Prior | |
|---|---|---|
| Property, plant and equipment | 226,040,000 | 225,309,000 |
| Total property and equipment | 226,040,000 | 225,309,000 |
| Current | Prior | |
|---|---|---|
| Stockholders equity | 477,095,000 | 393,281,000 |
| Total stockholders' equity | 477,095,000 | 393,281,000 |
Concentra Group Holdings Parent, Inc. is a public reporting company classified under Services-Specialty Outpatient Facilities, NEC. In total, we deliver services across 46 states and the District of Columbia, and our patients are generally employed by our main customers: employers across the United States. Our business is organized into three operating segments based primarily on the type or location of occupational health services provided, including our occupational health centers operating segment, which encompasses the services we deliver at our 633 occupational health center facilities across the United States. Our onsite health clinics operating segment delivers occupational health services and/or employer-sponsored primary care services at an employer's workplace, including mobile health services and episodic specialty testing services, at 415 permanent on-site locations and multiple other employer locations. Our other businesses operating segment is comprised of several complementary services to our core occupational health services offering and includes Concentra Telemed, Concentra Pharmacy, and Concentra Medical Compliance Administration. All three operating segments are aggregated into a single reportable segment in our condensed consolidated financial statements based on similar services provided, service delivery process involved, target customers, and similar economic characteristics.
Revenue for the period was $606,030,000, an increase of 10.0% from $550,785,000 in the comparable prior-year period, driven by [COMPLETE: description of revenue drivers, such as visit volumes, rate changes, or new center openings]. Cost of revenue increased 6.3% to $413,933,000 from $389,334,000, general and administrative expenses increased 7.1% to $56,677,000 from $52,931,000, and other operating costs increased 4.7% to $19,899,000 from $18,998,000, reflecting [COMPLETE: description of expense drivers]. Interest expense, net decreased 8.8% to $25,723,000 from $28,193,000, consistent with the reduction in our debt and finance lease obligations to $1,561,211,000 from $1,652,003,000, a decrease of 5.5%. Income tax expense increased 45.5% to $22,046,000 from $15,155,000. Net income for the period was $65,299,000, of which $2,000,000 was attributable to noncontrolling interests, compared to $1,634,000 in the prior-year period. Basic earnings per share was $0.51 based on weighted-average basic shares outstanding of 125,102,000.
Cash and cash equivalents increased 113.9% to $158,038,000 as of the end of the period from $73,872,000 in the prior period, driven by [COMPLETE: description of cash flow drivers, including operating, investing, and financing activities]. Accounts receivable increased 10.3% to $299,819,000 from $271,752,000, reflecting the growth in our revenue during the period. As of the current period, our debt and finance lease obligations totaled $1,561,211,000, our operating lease liabilities included $87,208,000 of current obligations and $482,988,000 of noncurrent obligations, and our total liabilities were $2,503,851,000 compared to total equity of $484,718,000. This leverage may require us to dedicate a significant portion of our cash flow to service debt, could limit our ability to obtain additional financing, and may increase our vulnerability to adverse economic and industry conditions. Stockholders' equity increased 39.2% to $477,095,000 from $342,636,000. Our primary market risk exposure is interest rate risk on cash, cash equivalents, and short-term investments, and fluctuations in interest rates could affect our interest income and the cost of any variable-rate borrowings. We believe that our cash and cash equivalents, together with cash generated from operations and available financing sources, will be sufficient to fund our operations, working capital requirements, and debt service obligations for at least the next twelve months.
Our primary market risk exposure is interest rate risk on cash, cash equivalents, and short-term investments. As of June 30, 2026, we held cash and cash equivalents of $158.0 million, compared to $73.9 million as of the prior period end. Changes in prevailing interest rates affect the amount of interest income we earn on these balances, although we do not believe a hypothetical change in interest rates would have a material effect on our financial position or results of operations. [COMPLETE: quantified sensitivity analysis of the impact of a hypothetical change in interest rates on interest income and interest expense]
We are also exposed to interest rate risk with respect to our outstanding indebtedness, and as of June 30, 2026, our debt and finance lease obligations totaled $1,561.2 million, compared to $1,652.0 million as of the prior period end. Interest expense, net was $25.7 million for the current period, a decrease of 8.8% from $28.2 million in the prior period. [COMPLETE: description of the mix of fixed-rate and variable-rate borrowings and applicable reference rates]
We do not have material foreign currency or commodity price exposure. Accordingly, we do not currently use derivative financial instruments to hedge foreign currency or commodity price risk, and we do not hold or issue financial instruments for trading purposes. We will continue to monitor our market risk exposures and evaluate whether additional risk management actions are warranted in future periods.
Our management, with the participation of our principal executive officer and principal financial officer, evaluated the effectiveness of our disclosure controls and procedures as of June 30, 2026, the end of the period covered by this report. Based on that evaluation, management concluded that our disclosure controls and procedures were effective at the reasonable assurance level as of the end of the period. In designing and evaluating our disclosure controls and procedures, management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving their objectives. As used herein, the "Company," "we," "us," "our" or similar words refer collectively to Concentra and its subsidiaries, and Concentra Group Holdings Parent, Inc., a Delaware corporation, conducts substantially all of its business through Concentra Health Services, Inc. and its subsidiaries.
There were no changes in our internal control over financial reporting that occurred during the quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting. Our certifying officers have disclosed, based on their most recent evaluation of internal control over financial reporting, to our auditors and the audit committee of our board of directors, all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect our ability to record, process, summarize and report financial information, and any fraud, whether or not material, that involves management or other employees who have a significant role in our internal control over financial reporting.
[COMPLETE: Management must review and adopt the conclusion language above regarding the effectiveness of disclosure controls and procedures, and confirm the absence of material changes in internal control over financial reporting, before filing.]
From time to time, Concentra Group Holdings Parent, Inc. is involved in legal proceedings arising in the ordinary course of business. These matters may include claims incidental to the normal conduct of the Company's operations, and the Company evaluates such matters as they arise to assess their potential impact on its financial condition, results of operations, and cash flows.
Management does not currently believe that any pending legal matter is material to the Company's financial statements. The outcome of litigation is inherently uncertain, however, and there can be no assurance that the resolution of any such matters will not have an adverse effect on the Company in future periods.
The following discussion updates certain risk factors relevant to an investment in our securities, and should be read together with [COMPLETE: cross-reference to risk factors disclosed in the Company's most recent Annual Report on Form 10-K]. We are a public reporting company classified under Services-Specialty Outpatient Facilities, and our results depend substantially on continued demand from employers for occupational health services. We deliver services across 46 states and the District of Columbia, and our patients are generally employed by our main customers: employers across the United States. Our business is organized into three operating segments based primarily on the type or location of occupational health services provided, including 633 occupational health center facilities across the United States and 415 permanent on-site locations, with services also delivered at multiple other employer locations through our episodic services. All three operating segments are aggregated into a single reportable segment based on similar services provided, service delivery process involved, target customers, and similar economic characteristics, and this concentration in occupational health services means that adverse developments affecting employer demand, workforce levels, or workers' compensation utilization could disproportionately affect our revenue and profitability. For the period ended June 30, 2026, we generated revenue of $606,030,000 and net income of $65,299,000, and a decline in employer demand could materially reduce these results in future periods.
Our substantial indebtedness and lease obligations could adversely affect our financial condition and limit our operating flexibility. As of the period end, we had debt and finance lease obligations of $1,561,211,000, current operating lease liabilities of $87,208,000, and noncurrent operating lease liabilities of $482,988,000, which increased 12.2% from $430,439,000 in the prior period. We incurred interest expense, net, of $25,723,000 during the current period, and servicing these obligations requires a significant portion of our cash flow, which reduces funds available for operations, capital expenditures, and other corporate purposes. Our primary market risk exposure is interest rate risk on cash, cash equivalents, and short-term investments, and changes in prevailing interest rates could affect our interest income and the cost of any future refinancing of our obligations. In addition, our tax-related obligations have grown, which could affect our cash flows; income tax expense was $22,046,000, an increase of 45.5% from $15,155,000 in the prior period, deferred tax liabilities increased 93.2% to $47,079,000, and taxes payable increased to $6,864,000 from $1,131,000.
We are subject to litigation risk in the ordinary course of our business. We are involved in legal proceedings arising in the ordinary course of business from time to time. Although management does not currently believe any pending matter is material to the financial statements, the outcome of litigation is inherently uncertain, and an adverse determination in one or more matters, or the costs of defending such matters, could have a material adverse effect on our business, financial condition, or results of operations. [COMPLETE: statement as to whether there have been any material changes from the risk factors previously disclosed in the Annual Report on Form 10-K].
Pursuant to Item 408(a) of Regulation S-K, Concentra Group Holdings Parent, Inc. provides the following disclosure regarding Rule 10b5-1 trading arrangements of its directors and officers for the quarterly period ended June 30, 2026. [COMPLETE: Rule 10b5-1 trading arrangement adoptions and terminations from the D&O questionnaires]