Concentra Group Holdings Parent, Inc. Announces Fourth Quarter and Year Ended 2025 Results
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 fourth quarter and full year ended December 31, 2025.
Fourth Quarter and Year Ended 2025 Highlights
For the fourth quarter ended December 31, 2025:
For the year ended December 31, 2025:
The definition of Adjusted EBITDA and a reconciliation of net income to Adjusted EBITDA are presented in table X of this release. The definition of Adjusted Earnings per Share and a reconciliation of net income attributable to the Company and earnings per share on a fully diluted basis to Adjusted Net Income Attributable to the Company and Adjusted Earnings per Share on a fully diluted basis are presented in table XI of this release. The definition of Free Cash Flow and a reconciliation of net cash provided by operating activities to Free Cash Flow are presented in table XII of this release.
Balance Sheet
As of December 31, 2025, our balance sheet reflected cash of $79.9 million, total debt of $1,574.4 million and total assets of $2,858.4 million. Concentra’s net leverage ratio as of December 31, 2025 is 3.4x, which was in compliance with the financial covenant under our credit agreement.
Cash Flow
Cash flows provided by operating activities in the fourth quarter ended December 31, 2025 totaled $118.7 million compared to $93.7 million for the same quarter, prior year. The increase in year over year cash flow from operations resulted from materially higher earnings in 2025. During the fourth quarter ended December 31, 2025, cash used in investing activities was $20.1 million, including capital expenditures of $20.2 million, with $4 million of one-time capital expenditures associated with our integration of Nova Medical Centers (“Nova”). Free Cash Flow totaled $98.6 million in the fourth quarter ended December 31, 2025, compared to $77.0 million for the same quarter, prior year. Cash flow from financing activities used $68.6 million for the quarter, driven primarily by $38.9 million in debt repayments, $22.4 million in repurchases of shares of common stock, and $8.0 million in dividend payments. This resulted in a net increase in cash of $30.0 million for the quarter.
Dividend
On February 25, 2026, the Board of Directors declared a cash dividend of $0.0625 per share. The dividend will be payable on or about March 19, 2026, to stockholders of record as of the close of business on March 12, 2026.
There is no assurance that future dividends will be declared. The declaration and payment of dividends in the future are at the discretion of the Board of Directors after taking various factors into account, including, but not limited to, the Company’s financial condition, operating results, available cash and current and anticipated cash needs, the terms of indebtedness, and other factors the Board of Directors may deem to be relevant.
2026 Business Outlook
We believe Concentra’s strong business performance in 2025 positions the Company well for continued growth as reflected in its 2026 financial guidance. For full year 2026, Concentra expects to deliver the following results:
A reconciliation of full year 2026 Adjusted EBITDA expectations to net income is presented in table XIII of this release and a reconciliation of full year 2026 net cash provided by operating activities to Free Cash Flow, alongside a definition of Free Cash Flow, is presented in table XIV of this release.
Company Overview
Concentra is the largest provider of occupational health services in the United States by number of locations, with the mission of improving the health of America’s workforce, one patient at a time. Our approximately 13,000 colleagues and affiliated physicians and clinicians support the delivery of an extensive suite of services, including occupational and consumer health services and other direct-to-employer care. We support the care of approximately 53,000 patients each business day on average across 47 states and the District of Columbia at our 628 occupational health centers, 411 onsite health clinics at employer worksites, and Concentra Telemed as of December 31, 2025.
Conference Call
Concentra will host a conference call regarding its fourth quarter financial results and business outlook on Friday, February 27, 2026, at 9 a.m. EST. The conference call will be a live webcast and can be accessed via this Earnings Call Webcast Link or via Concentra’s website at https://ir.concentra.com. A replay of the webcast will be available shortly after the call at the same locations.
Participants may join the audio-only version of the webcast or participate in the question-and-answer session by calling:
Toll Free: 888-506-0062
International: 973-528-0011
Participant Access: All dial-in participants should ask to join the Concentra call.
Certain statements contained herein that are not descriptions of historical facts are “forward-looking” statements (as such term is defined in the Private Securities Litigation Reform Act of 1995), including statements related to Concentra’s 2026 and long-term business outlook. Because such statements include risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements due to factors including the following:
Except as required by applicable law, including the securities laws of the United States and the rules and regulations of the Securities and Exchange Commission, we are under no obligation to publicly update or revise any forward-looking statements, whether as a result of any new information, future events, or otherwise. You should not place undue reliance on our forward-looking statements. Although we believe that the expectations reflected in our forward-looking statements are reasonable, we cannot guarantee future results or performance.
I. Consolidated Statements of Operations
For the Fourth Quarters Ended December 31, 2025 and 2024
(In thousands, except per share amounts, unaudited)
Quarter Ended December 31,
2025
2024
% Change
Revenue
$
539,080
$
465,041
15.9
%
Costs and expenses:
Cost of services, exclusive of depreciation and amortization
398,353
344,851
15.5
General and administrative, exclusive of depreciation and amortization (1)
50,777
45,493
11.6
Depreciation and amortization
20,291
15,610
30.0
Total costs and expenses
469,421
405,954
15.6
Income from operations
69,659
59,087
17.9
Other income and expense:
Interest expense
(26,866
)
(26,439
)
1.6
Income before income taxes
42,793
32,648
31.1
Income tax expense
6,602
9,848
(33.0
)
Net income
36,191
22,800
58.7
Less: net income attributable to non-controlling interests
1,506
1,288
16.9
Net income attributable to the Company
$
34,685
$
21,512
61.2
%
Basic and diluted earnings per common share (2)
$
0.27
$
0.17
_____________________________________
(1)
Includes transition services agreement fees of $2.2 million and $3.7 million for the fourth quarters ended December 31, 2025 and 2024, respectively.
(2)
Refer to table III for calculation of earnings per common share.
N/M Not meaningful
II. Consolidated Statements of Operations
For the Years Ended December 31, 2025 and 2024
(In thousands, except per share amounts)
Year Ended December 31,
2025
2024
% Change
Revenue
$
2,163,417
$
1,900,192
13.9
%
Costs and expenses:
Cost of services, exclusive of depreciation and amortization
1,550,323
1,372,217
13.0
General and administrative, exclusive of depreciation and amortization (1)
203,305
156,318
30.1
Depreciation and amortization
75,817
67,178
12.9
Total costs and expenses
1,829,445
1,595,713
14.6
Other operating income
20
284
(93.0
)
Income from operations
333,992
304,763
9.6
Other income and expense:
Loss on early retirement of debt
(875
)
—
N/M
Equity in losses of unconsolidated subsidiaries
—
(3,676
)
N/M
Interest expense
(109,290
)
(47,714
)
129.1
Interest expense on related party debt
—
(21,980
)
N/M
Income before income taxes
223,827
231,393
(3.3
)
Income tax expense
50,978
59,496
(14.3
)
Net income
172,849
171,897
0.6
Less: net income attributable to non-controlling interests
6,434
5,354
20.2
Net income attributable to the Company
$
166,415
$
166,543
(0.1
)%
Basic and diluted earnings per common share (2)
$
1.30
$
1.46
____________________________________________
(1)
Includes transition services agreement fees of $12.1 million for the year ended December 31, 2025 and shared service fees from Select Medical Corporation (“Select”) and transition services agreement fees of $15.2 million for the year ended December 31, 2024.
(2)
Refer to table III for calculation of earnings per common share.
N/M Not meaningful
III. Earnings per Share
For the Fourth Quarters and Years Ended December 31, 2025 and 2024
(In thousands, except per share amounts, unaudited)
As of December 31, 2025 and 2024, the Company’s capital structure consists of common stock and unvested restricted stock. To calculate earnings per share (“EPS”) for the quarters and years ended December 31, 2025 and 2024, the Company applied the two-class method because its unvested restricted shares were participating securities.
The following table sets forth the net income attributable to the Company, its shares, and its participating shares:
Quarter Ended
December 31,
Year Ended
December 31,
2025
2024
2025
2024
Net income
$
36,191
$
22,800
$
172,849
$
171,897
Less: net income attributable to non-controlling interests
1,506
1,288
6,434
5,354
Net income attributable to the Company
34,685
21,512
166,415
166,543
Less: distributed and undistributed income attributable to participating securities
637
98
2,244
211
Distributed and undistributed income attributable to common shares
$
34,048
$
21,414
$
164,171
$
166,332
The following table sets forth the computation of EPS under the two-class method:
Quarter Ended December 31, 2025
Quarter Ended December 31, 2024
Net Income Allocation
Shares (1)
Basic and Diluted EPS
Net Income Allocation
Shares (1)
Basic and Diluted EPS
Common shares
$
34,048
126,323
$
0.27
$
21,414
127,064
$
0.17
Participating securities
637
2,365
$
0.27
98
579
$
0.17
Total Company
$
34,685
128,688
$
0.27
$
21,512
127,643
$
0.17
Year Ended December 31, 2025
Year Ended December 31, 2024
Net Income Allocation
Shares (1)
Basic and Diluted EPS
Net Income Allocation
Shares (1)
Basic and Diluted EPS
Common shares
$
164,171
126,566
$
1.30
$
166,332
114,058
$
1.46
Participating securities
2,244
1,730
$
1.30
211
145
$
1.46
Total Company
$
166,415
128,296
$
1.30
$
166,543
114,203
$
1.46
____________________________________________
(1)
Represents the weighted average shares outstanding during the period.
IV. Consolidated Balance Sheets
(In thousands)
Year Ended December 31,
2025
2024
ASSETS
Current assets:
Cash
$
79,899
$
183,255
Accounts receivable
257,900
217,719
Prepaid income taxes
2,385
1,544
Other current assets
42,914
34,689
Total current assets
383,098
437,207
Operating lease right-of-use assets
483,652
435,595
Property and equipment, net
225,309
197,930
Goodwill
1,479,192
1,234,707
Other identifiable intangible assets, net
242,556
204,725
Non-current deferred tax asset
24,120
4,412
Other assets
20,461
6,588
Total assets
$
2,858,388
$
2,521,164
LIABILITIES AND EQUITY
Current liabilities:
Current operating lease liabilities
$
84,582
$
75,442
Current portion of long-term debt and notes payable
10,738
10,093
Accounts payable
21,005
19,752
Accrued and other liabilities
220,922
201,899
Total current liabilities
337,247
307,186
Non-current operating lease liabilities
443,642
396,914
Long-term debt, net of current portion
1,563,658
1,468,917
Non-current deferred tax liability
48,906
25,380
Other non-current liabilities
44,506
24,043
Total liabilities
2,437,959
2,222,440
Redeemable non-controlling interests
19,404
18,013
Stockholders’ equity:
Common stock, $0.01 par value, 700,000,000 shares authorized, 128,633,374 and 128,125,952 shares issued and outstanding at December 31, 2025 and December 31, 2024, respectively
1,286
1,281
Capital in excess of par
248,899
260,837
Retained earnings
146,448
13,553
Accumulated other comprehensive loss
(3,352
)
—
Total stockholders’ equity
393,281
275,671
Non-controlling interests
7,744
5,040
Total equity
401,025
280,711
Total liabilities and equity
$
2,858,388
$
2,521,164
V. Consolidated Statements of Cash Flows
For the Fourth Quarters Ended December 31, 2025 and 2024
(In thousands, unaudited)
Quarter Ended December 31,
2025
2024
Operating activities
Net income
$
36,191
$
22,800
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
20,291
15,610
Gain on sale of assets
(31
)
(1
)
Stock compensation expense
3,606
1,827
Amortization of debt discount and issuance costs
994
958
Deferred income taxes
(1,275
)
(1,237
)
Other
13
2
Changes in operating assets and liabilities, net of effects of business combinations:
Accounts receivable
22,712
14,481
Other current assets
(736
)
(8,294
)
Other assets
3,050
(176
)
Accounts payable and accrued liabilities
33,877
47,744
Net cash provided by operating activities
118,692
93,714
Investing activities
Purchases of property and equipment
(20,168
)
(16,688
)
Proceeds from sale of assets
36
2
Net cash used in investing activities
(20,132
)
(16,686
)
Financing activities
Payments on revolving facilities
(35,000
)
—
Payments on term loans
(2,375
)
(2,125
)
Principal payments on other debt
(1,490
)
(2,293
)
Dividends paid to common stockholders
(8,045
)
(7,959
)
Repurchases of common shares
(22,423
)
(15,403
)
Proceeds from issuance of non-controlling interests
2,866
—
Distributions to non-controlling interests
(2,135
)
(1,687
)
Distributions to Select
—
(1,128
)
Net cash used in financing activities
(68,602
)
(30,595
)
Net increase in cash
29,958
46,433
Cash at beginning of period
49,941
136,822
Cash at end of period
$
79,899
$
183,255
Supplemental information
Cash paid for interest
$
14,834
$
15,429
Cash paid for taxes
$
6,718
$
6,426
Non-cash investing and financing activities:
Liabilities for purchases of property and equipment
$
(5,745
)
$
1,583
VI. Consolidated Statements of Cash Flows
For the Years Ended December 31, 2025 and 2024
(In thousands)
Year Ended December 31,
2025
2024
Operating activities
Net income
$
172,849
$
171,897
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
75,817
67,178
Equity in losses of unconsolidated subsidiaries
—
3,676
Loss on early retirement of debt
51
—
(Gain) loss on sale of assets
(773
)
40
Stock compensation expense
10,490
2,327
Amortization of debt discount and issuance costs
3,959
1,708
Deferred income taxes
7,890
(2,396
)
Other
1,155
72
Changes in operating assets and liabilities, net of effects of business combinations:
Accounts receivable
(11,136
)
(1,598
)
Other current assets
(6,441
)
4,206
Other assets
7,570
2,973
Accounts payable and accrued liabilities
17,966
24,594
Net cash provided by operating activities
279,397
274,677
Investing activities
Business combinations, net of cash acquired
(333,300
)
(6,965
)
Purchases of property and equipment
(82,335
)
(64,327
)
Proceeds from sale of assets
778
27
Net cash used in investing activities
(414,857
)
(71,265
)
Financing activities
Borrowings on revolving facilities
85,000
—
Payments on revolving facilities
(85,000
)
—
Borrowings from related party revolving promissory note
—
10,000
Payments on related party revolving promissory note
—
(480,000
)
Proceeds from term loans, net of issuance costs
948,848
836,697
Payments on term loans
(855,000
)
(2,125
)
Proceeds from 6.875% senior notes, net of issuance costs
—
637,337
Borrowings of other debt
6,575
8,222
Principal payments on other debt
(10,037
)
(10,181
)
Dividends paid to common stockholders
(32,077
)
(7,959
)
Repurchase of common stock
(22,423
)
(15,403
)
Proceeds from issuance of non-controlling interests
2,866
—
Distributions to non-controlling interests
(6,648
)
(5,913
)
Proceeds from Initial Public Offering
—
511,198
Dividend to Select
—
(1,535,683
)
Contributions from Select
—
2,279
Net cash provided by (used in) financing activities
32,104
(51,531
)
Net (decrease) increase in cash
(103,356
)
151,881
Cash at beginning of period
183,255
31,374
Cash at end of period
$
79,899
$
183,255
Supplemental information
Cash paid for interest
$
108,969
$
49,650
Cash paid for taxes
$
45,910
$
55,763
Non-cash investing and financing activities:
Liabilities for purchases of property and equipment
$
2,463
$
5,241
VII. Disaggregated Revenue
For the Fourth Quarters and Years Ended December 31, 2025 and 2024
(In thousands, unaudited)
The following table disaggregates the Company’s revenue for the quarters and years ended December 31, 2025 and 2024:
Quarter Ended
December 31,
Year Ended
December 31,
2025
2024
2025
2024
Occupational health centers:
Workers' compensation
$
328,455
$
289,130
$
1,306,207
$
1,156,082
Employer services
151,853
137,203
659,541
596,052
Consumer health
8,119
8,192
31,302
31,519
Other occupational health center revenue
2,133
2,507
8,602
8,752
Total occupational health center revenue
490,560
437,032
2,005,652
1,792,405
Onsite health clinics
36,227
17,092
110,243
64,081
Other
12,293
10,917
47,522
43,706
Total revenue
$
539,080
$
465,041
$
2,163,417
$
1,900,192
VIII. Key Statistics
For the Fourth Quarters Ended December 31, 2025 and 2024
The following table sets forth facility counts for our occupational health centers and onsite health clinics operating segments for the periods presented:
Quarter Ended December 31,
Facility Count
2025
2024
Number of occupational health centers—start of period
628
549
Number of occupational health centers acquired
—
—
Number of occupational health centers de novos
2
3
Number of occupational health centers closed
(2
)
—
Number of occupational health centers—end of period
628
552
Number of onsite health clinics—end of period
411
157
The following table sets forth operating statistics for our occupational health centers operating segment for the periods presented:
Quarter Ended December 31,
2025
2024
% Change
Number of patient visits
Workers’ compensation
1,559,160
1,429,344
9.1
%
Employer services
1,647,612
1,506,163
9.4
%
Consumer health
57,550
59,481
(3.2
)%
Total
3,264,322
2,994,988
9.0
%
Visits per day volume
Workers’ compensation
24,362
22,334
9.1
%
Employer services
25,744
23,534
9.4
%
Consumer health
899
929
(3.2
)%
Total
51,005
46,797
9.0
%
Revenue per visit (1)
Workers’ compensation
$
210.66
$
202.28
4.1
%
Employer services
92.17
91.09
1.2
%
Consumer health
141.07
137.72
2.4
%
Total
$
149.63
$
145.08
3.1
%
Business Days (2)
64
64
____________________________________________
(1)
Represents the average amount of revenue recognized for each patient visit. Revenue per visit is calculated as total patient revenue divided by total patient visits. Revenue per visit as reported includes only the revenue and patient visits in our occupational health centers operating segment and does not include our onsite health clinics or other businesses operating segments.
(2)
Represents the number of days in which normal business operations were conducted during the periods presented.
IX. Key Statistics
For the Years Ended December 31, 2025 and 2024
The following table sets forth facility counts for our occupational health centers and onsite health clinics operating segments for the periods presented:
Year Ended December 31,
Facility Count
2025
2024
Number of occupational health centers—start of period
552
544
Number of occupational health centers acquired
72
3
Number of occupational health centers de novos
7
6
Number of occupational health centers closed
(3
)
(1
)
Number of occupational health centers—end of period
628
552
Number of onsite health clinics—end of period
411
157
The following table sets forth operating statistics for our occupational health centers operating segment for the periods presented:
Year Ended December 31,
2025
2024
% Change
Number of patient visits
Workers’ compensation
6,215,456
5,794,168
7.3
%
Employer services
7,104,227
6,596,573
7.7
%
Consumer health
227,024
232,762
(2.5
)%
Total
13,546,707
12,623,503
7.3
%
Visits per day volume
Workers’ compensation
24,374
22,633
7.7
%
Employer services
27,860
25,768
8.1
%
Consumer health
890
909
(2.1
)%
Total
53,124
49,311
(3)
7.7
%
Revenue per visit (1)
Workers’ compensation
$
210.15
$
199.53
5.3
%
Employer services
92.84
90.36
2.7
%
Consumer health
137.88
135.41
1.8
%
Total
$
147.42
$
141.30
4.3
%
Business Days (2)
255
256
____________________________________________
(1)
Represents the average amount of revenue recognized for each patient visit. Revenue per visit is calculated as total patient revenue divided by total patient visits. Revenue per visit as reported includes only the revenue and patient visits in our occupational health centers operating segment and does not include our onsite health clinics or other businesses operating segments.
(2)
Represents the number of days in which normal business operations were conducted during the periods presented.
(3)
Does not foot due to rounding.
X. Net Income to Adjusted EBITDA Reconciliation
For the Fourth Quarters and Years Ended December 31, 2025 and 2024
(In thousands, unaudited)
Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP measures that we believe provide useful insight into the underlying performance of our business by excluding items that may obscure trends in our core operating results. These metrics are not intended to be substitutes for U.S. GAAP measures such as net income and may differ from similarly titled metrics supported by other companies. We use these non-GAAP measures internally for budgeting, forecasting, and evaluating performance. Investors should consider these measures in addition to, and not as a replacement for, U.S. GAAP results reported in our financial statements.
Adjusted EBITDA is a supplemental measure that we believe offers useful insight to the Company’s business performance by excluding items that do not reflect the core operations of the Company. We define Adjusted EBITDA as net income before interest, income taxes, depreciation and amortization, stock-based compensation expense, acquisition-related costs, gains or losses on early retirement of debt, separation transaction costs, and equity in earnings or losses from unconsolidated subsidiaries. Adjusted EBITDA margin is calculated by dividing Adjusted EBITDA by total revenue. Adjusted EBITDA margin helps assess the efficiency of our operations on a normalized basis.
The following table reconciles net income to Adjusted EBITDA and net income margin to Adjusted EBITDA margin and should be referenced when we discuss Adjusted EBITDA and Adjusted EBITDA margin.
Quarter Ended December 31,
Year Ended December 31,
2025
2024
2025
2024
Amount
% of Revenue (4)
Amount
% of Revenue (4)
Amount
% of Revenue (4)
Amount
% of Revenue (4)
Reconciliation of Adjusted EBITDA:
Net income (1)
$
36,191
6.7
%
$
22,800
4.9
%
$
172,849
8.0
%
$
171,897
9.0
%
Add (Subtract):
Income tax expense
6,602
1.2
9,848
2.1
50,978
2.4
59,496
3.1
Interest expense
26,866
5.0
26,439
5.7
109,290
5.1
47,714
2.5
Interest expense on related party debt
—
—
—
—
—
—
21,980
1.2
Equity in losses of unconsolidated subsidiaries
—
—
—
—
—
—
3,676
0.2
Loss on early retirement of debt
—
—
—
—
875
0.0
—
—
Stock compensation expense
3,606
0.7
1,827
0.4
10,490
0.5
2,327
0.1
Depreciation and amortization
20,291
3.8
15,610
3.4
75,817
3.5
67,178
3.6
Separation transaction costs (2)
1,393
0.3
124
0.0
4,093
0.2
1,693
0.1
Nova and Pivot Onsite Innovations acquisition costs
320
0.1
895
0.2
7,471
0.3
895
0.0
Adjusted EBITDA (3)
$
95,269
17.7
%
$
77,543
16.7
%
$
431,863
20.0
%
$
376,856
19.8
%
____________________________________________
(1)
The percentage of revenue values on this row represent the net income margin for the period.
(2)
Separation transaction costs represent non-recurring incremental consulting, legal, audit-related fees, system implementation, and software disposal costs incurred in connection with the Company’s separation into a new, publicly traded company and are included within general and administrative expenses on the consolidated statements of operations.
(3)
The percentage of revenue values on this row represent the Adjusted EBITDA margin for the period.
(4)
Totals in this column may not foot due to rounding.
XI. Earnings per Share to Adjusted Earnings per Share Reconciliation
For the Fourth Quarters and Years Ended December 31, 2025 and 2024
(In thousands, except per share amounts, unaudited)
Adjusted Net Income Attributable to the Company and Adjusted Earnings per Share are used by management to provide useful insight into the underlying performance of our business. Adjusted Net Income Attributable to the Company and Adjusted Earnings per Share are not measures of financial performance under U.S. GAAP and are not intended to be substitutes for U.S. GAAP measures such as net income attributable to the Company or earnings per share. These metrics may differ from similarly titled metrics supported by other companies. Concentra believes that the presentation of Adjusted Net Income Attributable to the Company and Adjusted Earnings per Share are important to investors because they are reflective of the financial performance of Concentra’s ongoing operations and provide better comparability of its results of operations between periods. Investors should consider these measures in addition to, and not as a replacement for, U.S. GAAP results reported in our financial statements.
We define Adjusted Net Income Attributable to the Company as net income attributable to the Company, excluding gain (loss) on early retirement of debt, separation transaction costs, and acquisition costs, all on an after tax basis. We define Adjusted Earnings per Share as the Adjusted Net Income Attributable to the Company divided by the diluted weighted average shares outstanding.
The following table reconciles net income attributable to the Company and earnings per share on a fully diluted basis to Adjusted Net Income Attributable to the Company and Adjusted Earnings per Share on a fully diluted basis.
Quarter Ended December 31,
Year Ended December 31,
2025
Per Share (4)
2024
Per Share (4)
2025
Per Share (4)
2024
Per Share (4)
Reconciliation of Adjusted Net Income Attributable to the Company: (1)
Net income attributable to the Company
$
34,685
$
0.27
$
21,512
$
0.17
$
166,415
$
1.30
$
166,543
$
1.46
Adjustments:
Loss on early retirement of debt
—
—
—
—
875
0.01
—
—
Separation transaction costs (2)
1,393
0.01
124
0.00
4,093
0.03
1,693
0.01
Nova and Pivot Onsite Innovations acquisition costs
320
0.00
895
0.01
7,471
0.06
895
0.01
Total additions (subtractions), net
$
1,713
$
0.01
$
1,019
$
0.01
$
12,439
$
0.10
$
2,588
$
0.02
Less: tax effect of adjustments (3)
(264
)
(0.00
)
(308
)
(0.00
)
(2,836
)
(0.02
)
(665
)
(0.01
)
Adjusted Net Income Attributable to the Company
$
36,134
$
0.28
$
22,223
$
0.17
$
176,018
$
1.37
$
168,466
$
1.48
Weighted average shares outstanding - diluted
128,688
127,643
128,296
114,203
____________________________________________
(1)
Beginning in the second quarter of 2025, we updated the schedule for all periods presented to include Net Income Attributable to the Company. Management believes this measure will provide an improved insight into the performance of our business.
(2)
Separation transaction costs represent non-recurring incremental consulting, legal, audit-related fees, system implementation, and software disposal costs incurred in connection with the Company’s separation into a new, publicly traded company and are included within general and administrative expenses on the consolidated statements of operations.
(3)
Tax impact is calculated using the annual effective tax rate, including discrete costs and benefits.
(4)
Totals in this column may not foot due to rounding.
XII. Net Cash Provided by Operating Activities to Free Cash Flow Reconciliation
For the Fourth Quarters and Years Ended December 31, 2025 and 2024
(In thousands, unaudited)
Free Cash Flow is used by management to provide useful insight into the underlying performance of our business. Free Cash Flow is not a measure of financial performance under U.S. GAAP and is not intended to be a substitute for U.S. GAAP measures, such as net cash provided by operating activities. This metric may differ from similarly titled metrics supported by other companies. Concentra believes that the presentation of Free Cash Flow is important to investors because it is reflective of the financial performance and cash flows of Concentra’s ongoing operations and provides a better comparability of its cash flows between periods. Investors should consider these measures in addition to, and not as a replacement for, U.S. GAAP results reporting in our financial statements.
We define Free Cash Flow as net cash provided by operating activities less net cash used in investing activities, excluding business combinations, net of cash acquired.
The following table reconciles net cash provided by operating activities to Free Cash Flow.
Quarter Ended December 31,
Year Ended December 31,
2025
2024
2025
2024
Reconciliation of Free Cash Flow:
Net cash provided by operating activities
$
118,692
$
93,714
$
279,397
$
274,677
Add (Subtract):
Net cash used in investing activities
(20,132
)
(16,686
)
(414,857
)
(71,265
)
Business combinations, net of cash acquired
—
—
333,300
6,965
Free Cash Flow
$
98,560
$
77,028
$
197,840
$
210,377
XIII. 2026 Net Income to Adjusted EBITDA Reconciliation
Business Outlook for the Year Ending December 31, 2026
(In millions, unaudited)
The following is a reconciliation of full year 2026 Adjusted EBITDA expectations as computed at the low and high points of the range to the closest comparable U.S. GAAP financial measure. Refer to table X for discussion of Concentra's use of Adjusted EBITDA in evaluating financial performance and for the definition of Adjusted EBITDA. Each item presented in the below table is an estimation of full year 2026 expectations.
Range
Low
High
Net income attributable to the Company
$
176
$
191
Net income attributable to non-controlling interests
6
6
Net income
$
182
$
197
Income tax expense
61
66
Interest expense
105
105
Income from operations
348
368
Stock compensation expense
21
21
Depreciation and amortization
81
81
Adjusted EBITDA
$
450
$
470
XIV. 2026 Net Cash Provided by Operating Activities to Free Cash Flow Reconciliation
Business Outlook for the Year Ending December 31, 2026
(In millions, unaudited)
The following table is a reconciliation of full year 2026 Free Cash Flow expectations as computed at the low and high points of the range to the closest comparable U.S. GAAP financial measure. Refer to table XII for discussion of Concentra’s use of Free Cash Flow in evaluating financial performance and for the definition of Free Cash Flow. Each item presented in the below table is an estimation of full year 2026 expectations.
Range
Low
High
Reconciliation of Free Cash Flow:
Net cash provided by operating activities
$
280
$
295
Add (Subtract):
Net cash used in investing activities
(84
)
(74
)
Business combinations, net of cash acquired
4
4
Free Cash Flow
$
200
$
225