Concentra Group Holdings Parent, Inc. Announces Results for Its First Quarter Ended March 31, 2026, Cash Dividend, and Raised FY 2026 Guidance
ADDISON, Texas--( BUSINESS WIRE)--Concentra Group Holdings Parent, Inc. (“Concentra,” the “Company,” “we,” “us,” or “our”) (NYSE: CON), the nation’s largest provider of occupational health services by number of locations, today announced results for its first quarter ended March 31, 2026, the declaration of a cash dividend, and raised guidance for full year 2026.
“Our strong start to 2026 is a testament to the trust our clients place in us to care for their most valuable asset: their people,” said Keith Newton, Chief Executive Officer of Concentra. “The meaningful growth in visit volumes we saw this quarter demonstrates that our clinical model and value proposition continue to lead in workers' compensation. Building on our exceptional operational and financial performance, we remain focused on achieving key strategic objectives and positioning Concentra to deliver long-term shareholder value.”
Matt DiCanio, Concentra’s President and Chief Financial Officer, added, “Our Q1 results demonstrate the inherent strength of our operating model, with broad-based growth across our business supporting our decision to raise our full-year guidance. Beyond the balance sheet, we are focused on disciplined execution of our de novo pipeline and are on track to complete our transition from Select Medical Corporation in the coming months. As an independent company, we are optimizing our operational platform and infrastructure to drive sustained excellence and capitalize on our unique position as a leading health partner for the American workforce.”
First Quarter 2026 Highlights
For the first quarter ended March 31, 2026:
The definition of Adjusted EBITDA and a reconciliation of net income to Adjusted EBITDA are presented in table VII of this release. The definition of Adjusted Earnings per Share and a reconciliation of net income attributable to the Company and earnings per share on a fully diluted basis to Adjusted Net Income Attributable to the Company and Adjusted Earnings per Share on a fully diluted basis are presented in table VIII of this release. The definition of Free Cash Flow and a reconciliation of net cash provided by operating activities to Free Cash Flow are presented in table IX of this release.
Balance Sheet
As of March 31, 2026, our balance sheet reflected cash of $61.7 million, total debt of $1,576.1 million and total assets of $2,889.8 million. Concentra’s net leverage ratio as of March 31, 2026, was 3.4x, which was in compliance with the financial covenant under our credit agreement.
Cash Flow
Cash flows provided by operating activities in the first quarter ended March 31, 2026, totaled $21.0 million compared to $11.7 million for the same quarter of the prior year. The increase in year over year cash flow from operations resulted from higher earnings in 2026. During the first quarter ended March 31, 2026, cash flow from investing activities resulted in cash used of $14.8 million, including capital expenditures of $11.1 million. Concentra had positive Free Cash Flow of $9.9 million in the first quarter ended March 31, 2026, compared to negative Free Cash Flow of $4.0 million for the same quarter of the prior year. Cash flow from financing activities used $24.4 million for the quarter, driven primarily by $15.0 million in repurchases of shares of common stock and $8.0 million in dividend payments. This resulted in a net decrease in cash of $18.2 million for the quarter.
Dividend
On May 5, 2026, the Board of Directors declared a cash dividend of $0.0625 per share. The dividend will be payable on or about June 9, 2026, to stockholders of record as of the close of business on May 19, 2026.
There is no assurance that future dividends will be declared. The declaration and payment of dividends in the future are at the discretion of the Board of Directors after taking various factors into account, including, but not limited to, the Company’s financial condition, operating results, available cash and current and anticipated cash needs, the terms of indebtedness, and other factors the Board of Directors may deem to be relevant.
2026 Business Outlook
Concentra raised its financial guidance for 2026. We now expect to deliver the following results:
A reconciliation of full year 2026 Adjusted EBITDA expectations to net income is presented in table X of this release. A reconciliation of full year 2026 Free Cash Flow expectations to net cash provided by operating activities is presented in table XI of this release.
Company Overview
Concentra is the largest provider of occupational health services in the United States by number of locations, with the mission of improving the health of America’s workforce, one patient at a time. Our approximately 13,000 colleagues and affiliated physicians and clinicians support the delivery of an extensive suite of services, including occupational and consumer health services and other direct-to-employer care. We support the care of approximately 54,000 patients each business day on average across 47 states and the District of Columbia at our 632 occupational health centers, 411 onsite health clinics at employer worksites, and Concentra Telemed as of March 31, 2026.
Conference Call
Concentra will host a conference call regarding its first quarter financial results and business outlook on Friday, May 8, 2026, at 9 a.m. Eastern Time. The conference call will be a live webcast and can be accessed via this Earnings Call Webcast Link or via Concentra’s website at https://ir.concentra.com. A replay of the webcast will be available shortly after the call at the same locations.
Participants may join the audio-only version of the webcast or participate in the question-and-answer session by calling:
Toll Free: 888-506-0062
International: 973-528-0011
Participant Access: All dial-in participants should ask to join the Concentra call.
Certain statements contained herein that are not descriptions of historical facts are “forward-looking” statements (as such term is defined in the Private Securities Litigation Reform Act of 1995), including statements related to Concentra’s 2026 and long-term business outlook. Because such statements include risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements due to factors including the following:
Except as required by applicable law, including the securities laws of the United States and the rules and regulations of the Securities and Exchange Commission, we are under no obligation to publicly update or revise any forward-looking statements, whether as a result of any new information, future events, or otherwise. You should not place undue reliance on our forward-looking statements. Although we believe that the expectations reflected in our forward-looking statements are reasonable, we cannot guarantee future results or performance.
I. Condensed Consolidated Statements of Operations
For the Three Months Ended March 31, 2026, and 2025
(In thousands, except per share amounts, unaudited)
Three Months Ended March 31,
2026
2025
% Change
Revenue
$
569,555
$
500,752
13.7
%
Costs and expenses:
Cost of services, exclusive of depreciation and amortization
399,086
357,101
11.8
General and administrative, exclusive of depreciation and amortization (1)
55,280
46,713
18.3
Depreciation and amortization
19,648
16,619
18.2
Total costs and expenses
474,014
420,433
12.7
Other operating income
69
—
N/M
Income from operations
95,610
80,319
19.0
Other income and expense:
Loss on early retirement of debt
—
(875
)
N/M
Interest expense
(26,003
)
(25,548
)
1.8
Income before income taxes
69,607
53,896
29.2
Income tax expense
17,315
13,254
30.6
Net income
52,292
40,642
28.7
Less: net income attributable to non-controlling interests
1,804
1,731
4.2
Net income attributable to the Company
$
50,488
$
38,911
29.8
%
Basic and diluted earnings per common share: (2)
$
0.39
$
0.30
Includes transition services agreement fees of $1.6 million and $3.7 million for the three months ended March 31, 2026, and 2025, respectively.
Refer to table II for calculation of earnings per common share.
N/M
Not meaningful
II. Earnings per Share
For the Three Months Ended March 31, 2026, and 2025
(In thousands, except per share amounts, unaudited)
As of March 31, 2026, and 2025, the Company’s capital structure consists of common stock and unvested restricted stock. To calculate earnings per share (“EPS”) for the three months ended March 31, 2026, and 2025, the Company applied the two-class method because its unvested restricted shares were participating securities.
The following table sets forth the net income attributable to the Company, its shares, and its participating shares:
Three Months Ended March 31,
2026
2025
Net income
$
52,292
$
40,642
Less: net income attributable to non-controlling interests
1,804
1,731
Net income attributable to the Company
50,488
38,911
Less: distributed and undistributed net income attributable to participating securities
1,065
455
Distributed and undistributed net income attributable to common shares
$
49,423
$
38,456
The following table sets forth the computation of EPS under the two-class method:
Three Months Ended March 31, 2026
Three Months Ended March 31, 2025
Net Income Allocation
Shares (1)
Basic and Diluted EPS
Net Income Allocation
Shares (1)
Basic and Diluted EPS
Common shares
$
49,423
125,781
$
0.39
$
38,456
126,647
$
0.30
Participating securities
1,065
2,710
$
0.39
455
1,500
$
0.30
Total Company
$
50,488
128,491
$
0.39
$
38,911
128,147
$
0.30
Represents the weighted average shares outstanding during the period.
III. Condensed Consolidated Balance Sheets
(In thousands, except par value and share data, unaudited)
March 31, 2026
December 31, 2025
ASSETS
Current assets:
Cash
$
61,699
$
79,899
Accounts receivable
296,508
257,900
Prepaid income taxes
1,247
2,385
Other current assets
44,760
42,914
Total current assets
404,214
383,098
Operating lease right-of-use assets
500,645
483,652
Property and equipment, net
223,895
225,309
Goodwill
1,480,116
1,479,192
Other identifiable intangible assets, net
238,951
242,556
Non-current deferred tax asset
21,508
24,120
Other assets
20,431
20,461
Total assets
$
2,889,760
$
2,858,388
LIABILITIES AND EQUITY
Current liabilities:
Current operating lease liabilities
$
85,252
$
84,582
Current portion of long-term debt and notes payable
13,664
10,738
Accounts payable
31,737
21,005
Accrued and other liabilities
190,222
220,922
Total current liabilities
320,875
337,247
Non-current operating lease liabilities
461,232
443,642
Long-term debt, net of current portion
1,562,483
1,563,658
Non-current deferred tax liability
47,742
48,906
Other non-current liabilities
43,458
44,506
Total liabilities
2,435,790
2,437,959
Redeemable non-controlling interests
21,762
19,404
Stockholders’ equity:
Common stock, $0.01 par value, 700,000,000 shares authorized, 127,961,780 and 128,633,374 shares issued and outstanding at March 31, 2026, and December 31, 2025, respectively
1,280
1,286
Capital in excess of par
237,896
248,899
Retained earnings
186,845
146,448
Accumulated other comprehensive loss
(1,308
)
(3,352
)
Total stockholders’ equity
424,713
393,281
Non-controlling interests
7,495
7,744
Total equity
432,208
401,025
Total liabilities and equity
$
2,889,760
$
2,858,388
IV. Condensed Consolidated Statements of Cash Flows
For the Three Months Ended March 31, 2026, and 2025
(In thousands, unaudited)
Three Months Ended March 31,
2026
2025
Operating activities
Net income
$
52,292
$
40,642
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
19,648
16,619
Loss on early retirement of debt
—
51
Stock compensation expense
4,135
2,269
Amortization of debt discount and issuance costs
1,028
976
Deferred income taxes
815
(1,028
)
Other
16
10
Changes in operating assets and liabilities, net of effects of business combinations:
Accounts receivable
(38,626
)
(21,145
)
Other current assets
(1,785
)
(2,753
)
Other assets
1,405
902
Accounts payable and accrued liabilities
(17,909
)
(24,844
)
Net cash provided by operating activities
21,019
11,699
Investing activities
Business combinations, net of cash acquired
(3,760
)
(279,018
)
Purchases of property and equipment
(11,088
)
(15,732
)
Proceeds from sale of assets
2
1
Net cash used in investing activities
(14,846
)
(294,749
)
Financing activities
Borrowings on revolving facilities
—
50,000
Proceeds from term loans, net of issuance costs
—
948,848
Payments on term loans
(2,375
)
(847,875
)
Borrowings of other debt
4,912
6,468
Principal payments on other debt
(2,128
)
(4,695
)
Dividends paid to common stockholders
(8,017
)
—
Repurchase of common shares
(14,996
)
—
Distributions to non-controlling interests
(1,769
)
(842
)
Net cash (used in) provided by financing activities
(24,373
)
151,904
Net decrease in cash
(18,200
)
(131,146
)
Cash at beginning of period
79,899
183,255
Cash at end of period
$
61,699
$
52,109
Supplemental information
Cash paid for interest
$
36,670
$
38,137
Cash refund received for taxes
$
(781
)
$
(48
)
V. Disaggregated Revenue
For the Three Months Ended March 31, 2026, and 2025
(In thousands, unaudited)
The following table disaggregates the Company’s revenue:
Three Months Ended March 31,
2026
2025
Occupational health centers:
Workers’ compensation
$
337,679
$
302,107
Employer services
172,368
160,140
Consumer health
7,830
8,611
Other occupational health center revenue
2,024
2,064
Total occupational health center revenue
519,901
472,922
Onsite health clinics
37,196
16,550
Other
12,458
11,280
Total revenue
$
569,555
$
500,752
VI. Key Statistics
For the Three Months Ended March 31, 2026, and 2025
The following table sets forth facility counts for our occupational health centers and onsite health clinics operating segments for the periods presented:
Three Months Ended March 31,
2026
2025
Facility Counts
Number of occupational health centers—start of period
628
552
Number of occupational health centers acquired
3
72
Number of occupational health centers de novos
1
3
Number of occupational health centers closed
—
—
Number of occupational health centers—end of period
632
627
Number of onsite health clinics—end of period
411
160
The following table sets forth operating statistics for our occupational health centers operating segment for the periods presented:
Three Months Ended March 31,
2026
2025
% Change
Number of patient visits
Workers’ compensation
1,583,343
1,444,880
9.6
%
Employer services
1,778,584
1,696,412
4.8
%
Consumer health
57,164
63,076
(9.4
)%
Total
3,419,091
3,204,368
6.7
%
Visits per day volume
Workers’ compensation
25,132
22,935
9.6
%
Employer services
28,231
26,927
4.8
%
Consumer health
907
1,001
(9.4
)%
Total
54,271
(3)
50,863
6.7
%
Revenue per visit (1)
Workers’ compensation
$
213.27
$
209.09
2.0
%
Employer services
96.91
94.40
2.7
%
Consumer health
136.97
136.52
0.3
%
Total
$
151.47
$
146.94
3.1
%
Business Days (2)
63
63
Represents the average amount of revenue recognized for each patient visit. Revenue per visit is calculated as total patient revenue divided by total patient visits. Revenue per visit as reported includes only the revenue and patient visits in our occupational health centers operating segment and does not include our onsite health clinics or other businesses operating segments.
Represents the number of days in which normal business operations were conducted during the periods presented.
Does not foot due to rounding.
VII. Net Income to Adjusted EBITDA Reconciliation
For the Three Months Ended March 31, 2026, and 2025
(In thousands, unaudited)
Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP measures that we believe provide useful insight into the underlying performance of our business by excluding items that may obscure trends in our core operating results. These metrics are not intended to be substitutes for U.S. GAAP measures such as net income and net income margin, and may differ from similarly titled metrics supported by other companies. We use these non-GAAP measures internally for budgeting, forecasting, and evaluating performance. Investors should consider these measures in addition to, and not as a replacement for, U.S. GAAP results reported in our financial statements.
Adjusted EBITDA is a supplemental measure that we believe offers useful insight into the Company’s business performance by excluding items that do not reflect the core operations of the Company. We define Adjusted EBITDA as net income before interest, income taxes, depreciation and amortization, stock compensation expense, acquisition related costs, gains or losses on early retirement of debt, and separation transaction costs. We define Adjusted EBITDA margin as Adjusted EBITDA divided by total revenue. Adjusted EBITDA margin is a supplemental measure that we believe helps assess the efficiency of our operations on a normalized basis.
The following table reconciles net income to Adjusted EBITDA and net income margin to Adjusted EBITDA margin and should be referenced when we discuss Adjusted EBITDA and Adjusted EBITDA margin.
Three Months Ended March 31,
2026
2025
Amount
% of Revenue (4)
Amount
% of Revenue (4)
Reconciliation of Adjusted EBITDA:
Net income (1)
$
52,292
9.2
%
$
40,642
8.1
%
Add (Subtract):
Income tax expense
17,315
3.0
13,254
2.6
Interest expense
26,003
4.6
25,548
5.1
Loss on early retirement of debt
—
—
875
0.2
Stock compensation expense
4,135
0.7
2,269
0.5
Depreciation and amortization
19,648
3.4
16,619
3.3
Separation transaction costs (2)
1,076
0.2
315
0.1
Nova and Pivot Onsite Innovations acquisition costs
219
0.0
3,137
0.6
Adjusted EBITDA (3)
$
120,688
21.2
%
$
102,659
20.5
%
The percentage of revenue values on this row represent the net income margin for the period.
Separation transaction costs represent non-recurring incremental consulting, legal, audit-related fees, system implementation, and software disposal costs incurred in connection with the Company’s separation into a new, publicly traded company and are included within general and administrative expenses on the condensed consolidated statements of operations.
The percentage of revenue values on this row represent the Adjusted EBITDA margin for the period.
Totals in this column may not foot due to rounding.
VIII. Earnings per Share to Adjusted Earnings per Share Reconciliation
For the Three Months Ended March 31, 2026, and 2025
(In thousands, except per share amounts, unaudited)
Adjusted Net Income Attributable to the Company and Adjusted Earnings per Share are used by management to provide useful insight into the underlying performance of our business. Adjusted Net Income Attributable to the Company and Adjusted Earnings per Share are not measures of financial performance under U.S. GAAP and are not intended to be substitutes for U.S. GAAP measures such as net income attributable to the Company or earnings per share. These metrics may differ from similarly titled metrics supported by other companies. We believe that the presentation of Adjusted Net Income Attributable to the Company and Adjusted Earnings per Share are important to investors because they are reflective of the financial performance of Concentra’s ongoing operations and provide better comparability of its results of operations between periods. Investors should consider these measures in addition to, and not as a replacement for, U.S. GAAP results reported in our financial statements.
We define Adjusted Net Income Attributable to the Company as net income attributable to the Company, excluding gain (loss) on early retirement of debt, separation transaction costs, and acquisition costs, all on an after tax basis. We define Adjusted Earnings per Share as the Adjusted Net Income Attributable to the Company divided by the diluted weighted average shares outstanding.
The following table reconciles net income attributable to the Company and earnings per share on a fully diluted basis to Adjusted Net Income Attributable to the Company and Adjusted Earnings per Share on a fully diluted basis.
Three Months Ended March 31,
2026
Per Share (4)
2025
Per Share (4)
Reconciliation of Adjusted Net Income Attributable to the Company: (1)
Net income attributable to the Company
$
50,488
$
0.39
$
38,911
$
0.30
Adjustments:
Loss on early retirement of debt
—
—
875
0.01
Separation transaction costs (2)
1,076
0.01
315
0.00
Nova and Pivot Onsite Innovations acquisition costs
219
0.00
3,137
0.02
Total additions (subtractions), net
$
1,295
$
0.01
$
4,327
$
0.03
Less: tax effect of adjustments (3)
(322
)
(0.00
)
(1,064
)
(0.01
)
Adjusted Net Income Attributable to the Company
$
51,461
$
0.40
$
42,174
$
0.33
Weighted average shares outstanding - diluted
128,491
128,147
Beginning in the second quarter of 2025, we updated the schedule for all periods presented to include Net Income Attributable to the Company. Management believes this measure will provide an improved insight into the performance of our business. As a result, the reconciliation for the three months ended March 31, 2025, has been recast to conform to the current period’s presentation.
Separation transaction costs represent non-recurring incremental consulting, legal, audit-related fees, system implementation, and software disposal costs incurred in connection with the Company’s separation into a new, publicly traded company and are included within general and administrative expenses on the condensed consolidated statements of operations.
Tax impact is calculated using the annual effective tax rate, including discrete costs and benefits.
Totals in this column may not foot due to rounding.
IX. Net Cash Provided by Operating Activities to Free Cash Flow Reconciliation
For the Three Months ended March 31, 2026, and 2025
(In thousands, unaudited)
Free Cash Flow is used by management to provide useful insight into the underlying performance of our business. Free Cash Flow is not a measure of financial performance under U.S. GAAP and is not intended to be a substitute for U.S. GAAP measures, such as net cash provided by operating activities. This metric may differ from similarly titled metrics supported by other companies. We believe that the presentation of Free Cash Flow is important to investors because it is reflective of the financial performance and cash flows of Concentra’s ongoing operations and provides a better comparability of its cash flows between periods. Investors should consider these measures in addition to, and not as a replacement for, U.S. GAAP results reporting in our financial statements.
We define Free Cash Flow as net cash provided by operating activities less net cash used in investing activities, excluding business combinations, net of cash acquired.
The following table reconciles net cash provided by operating activities to Free Cash Flow.
Three Months Ended March 31,
2026
2025
Reconciliation of Free Cash Flow:
Net cash provided by operating activities
$
21,019
$
11,699
Add (Subtract):
Net cash used in investing activities
(14,846
)
(294,749
)
Business combinations, net of cash acquired
3,760
279,018
Free Cash Flow
$
9,933
$
(4,032
)
X. 2026 Net Income to Adjusted EBITDA Reconciliation
Business Outlook for the Year Ending December 31, 2026
(In millions, unaudited)
The following is a reconciliation of full year 2026 Adjusted EBITDA expectations as computed at the low and high points of the range to the closest comparable U.S. GAAP financial measure. Refer to table VII for discussion of Concentra’s use of Adjusted EBITDA in evaluating financial performance and for the definition of Adjusted EBITDA. Each item presented in the below table is an estimation of full year 2026 expectations.
Range
Low
High
Net income attributable to the Company
$
184
$
199
Net income attributable to non-controlling interests
7
7
Net income
$
191
$
206
Income tax expense
63
68
Interest expense
104
104
Income from operations
358
378
Stock compensation expense
21
21
Depreciation and amortization
80
80
Separation transaction costs
1
1
Adjusted EBITDA
$
460
$
480
XI. 2026 Net Cash Provided by Operating Activities to Free Cash Flow Reconciliation
Business Outlook for the Year Ending December 31, 2026
(In millions, unaudited)
The following is a reconciliation of full year 2026 Free Cash Flow expectations as computed at the low and high points of the range to the closest comparable U.S. GAAP financial measure. Refer to table IX for discussion of Concentra’s use of Free Cash Flow in evaluating financial performance and for the definition of Free Cash Flow. Each item presented in the below table is an estimation of full year 2026 expectations.
Range
Low
High
Reconciliation of Free Cash Flow:
Net cash provided by operating activities
$
295
$
305
Add (Subtract):
Net cash used in investing activities
(84
)
(74
)
Business combinations, net of cash acquired
4
4
Free Cash Flow
$
215
$
235