Concentra Group Holdings Parent, Inc. - Q1 2026 Filing Summary
Business Context and Reporting Period
This Form 10-Q covers the quarterly period ended March 31, 2026. Concentra is the largest provider of occupational health services in the United States by number of locations. As of the reporting date, the company operated 632 stand-alone occupational health centers in 41 states and 411 onsite health clinics at employer worksites in 45 states. The company operates as a single reportable segment offering workers' compensation, employer services, and consumer health services.
Key Financial Metrics
| Metric | Q1 2026 | Q1 2025 |
|---|---|---|
| Revenue | $569.6 million | $500.8 million |
| Net Income (GAAP) | $52.3 million | $40.6 million |
| Net Income Attributable to Company | $50.5 million | $38.9 million |
| Diluted EPS | $0.39 | $0.30 |
| Adjusted EBITDA | $120.7 million | $102.7 million |
| Operating Cash Flow | $21.0 million | $11.7 million |
| Cash and Equivalents | $61.7 million | $52.1 million |
| Total Debt (Carrying Value) | $1.576 billion | $1.574 billion |
| Revolving Credit Availability | $434.2 million | N/A |
Material Changes vs. Prior Period
- Revenue Growth: Revenue increased 13.7% year-over-year, driven by organic growth in patient visits (up 6.7%) and revenue per visit (up 3.1%), as well as the full-quarter impact of the Pivot Onsite Innovations acquisition (closed June 2025).
- Profitability: Operating margin improved to 16.8% from 16.0%. Cost of services as a percentage of revenue decreased to 70.1% from 71.3% due to staffing efficiencies.
- Acquisition Impact: The Pivot Onsite Innovations acquisition contributed $17.2 million in revenue during Q1 2026.
- Capital Allocation: The company repurchased 0.7 million shares for $15.0 million and paid dividends of $8.0 million, compared to no repurchases and no dividends in Q1 2025.
- Debt Structure: Interest expense increased slightly to $26.0 million due to an incremental term loan added in March 2025. The leverage ratio stood at 3.4x, well below the 6.5x covenant limit.
Outlook, Risks, and Contingencies
- Guidance: The filing does not provide specific numerical guidance for the full year 2026. Management notes that interim results are not necessarily indicative of full-year results.
- Legal Proceedings:
- California Whistleblower Matter: A qui tam lawsuit regarding physical therapy referral guidelines was unsealed in November 2025. The company cannot predict the outcome.
- DOJ Investigation: The Department of Justice is investigating Select (former parent) regarding physical therapy billing; Concentra is cooperating and has produced data.
- Data Breach Litigation: Consolidated class action lawsuits related to a 2023 vendor data breach (Perry Johnson & Associates) are pending. Management does not believe this will have a material financial impact.
- Dividends: A quarterly dividend of $0.0625 per share was declared on May 5, 2026, payable June 9, 2026.
- Share Repurchases: $65.0 million remains available under the $100 million repurchase program authorized in November 2025.
Investor Verification Checklist
- Verify the status and potential financial exposure of the California Whistleblower lawsuit and the ongoing DOJ investigation into physical therapy billing practices.
- Monitor the final purchase price allocation for the Pivot Onsite Innovations acquisition, which is currently preliminary and subject to adjustment.
- Assess the sustainability of the 3.1% increase in revenue per visit given the labor-intensive nature of the business and potential inflationary pressures on wages.
- Review the leverage ratio (currently 3.4x) against the 6.5x covenant limit to ensure continued compliance with credit facilities.
- Confirm the impact of separation transaction costs ($1.1 million in Q1 2026) on future GAAP earnings as the company fully transitions to standalone operations.