Concentra Group Holdings Parent, Inc. (CON) Q2 2025 Earnings Summary

Executive Summary

Strong Q2 performance driven by volume and pricing: revenue $550.8M (+15.2% YoY), Adjusted EBITDA $115.0M (+13.2% YoY), Adjusted EPS $0.37; GAAP EPS $0.35, with margin compression tied to one-time integration and public company costs .
Beat vs S&P Global consensus: revenue beat by ~$13.4M; EBITDA modest beat; EPS essentially in line-to-slight beat on “Primary EPS” (adjusted) basis; GAAP EPS was below adjusted consensus framing *.
Guidance raised: FY25 revenue to $2.13–$2.16B (from $2.10–$2.15B) and Adjusted EBITDA to $420–$430M (from $415–$430M); capex $80–$90M and ~3.5x year-end net leverage unchanged .
Strategic catalysts: (1) Nova integration complete (67 centers) and Pivot Onsite closing (240+ clinics) pushing footprint to >1,000 total locations; (2) strong rate environment (RPV +4.4% YoY); (3) deleveraging path reaffirmed; and (4) quarterly dividend maintained at $0.0625 .

What Went Well and What Went Wrong

What Went Well

Broad-based growth: Visits per day +9.5% YoY to 55,005; Workers’ Comp VPD +9.3%, Employer Services VPD +10.3%; Revenue per visit +4.4% YoY (W/C +5.4%, Employer +3.1%) .
Executed M&A and integration: Closed Pivot Onsite (240+ clinics) on June 1 and completed Nova integration across systems/branding, expanding to >1,000 total locations serving ~215,000 employers .
Management confidence on macro and reimbursement: “We are not seeing any slowdown... based on the data we look at every day” and expect a favorable 2026 rate year (doc fix conversion factor uplift in CA, OH, NC, TN) .

What Went Wrong

Margin pressure: Adjusted EBITDA margin declined 38 bps YoY (20.9% vs. 21.3%) driven by prior-year favorable items and one-time Nova/Pivot transition costs not adjusted out, plus incremental public company/separation G&A .
Higher interest expense post-IPO recap reduced GAAP net income (down 12.9% YoY) and GAAP EPS ($0.35 vs. $0.50) despite strong operations; management attributed decline to recapitalization burden .
G&A up as % of revenue (9.6% vs. 7.7% prior year) reflecting public company/separation and acquired G&A not fully synergized through quarter, with remaining synergies to be executed over 2025–Q1’26 .

Financial Results

Trend vs Prior Periods

Metric	Q4 2024	Q1 2025	Q2 2025
Revenue ($M)	$465.0	$500.8	$550.8
Adjusted EBITDA ($M)	$77.5	$102.7	$115.0
Adjusted EBITDA Margin (%)	16.7%	20.5%	20.9%
Net Income ($M)	$22.8	$40.6	$46.2
GAAP EPS ($)	$0.17	$0.30	$0.35
Adjusted EPS ($)	—	$0.32	$0.37
Visits per Day	46,800	50,863	55,005
Revenue per Visit ($)	$145	$146.94	$145.92

Q2 2025 Actual vs S&P Global Consensus

Metric	Q2 2025 Actual	Q2 2025 Consensus
Revenue ($M)	$550.8	$537.36*
GAAP EPS ($)	$0.35	—
Primary EPS ($) (Adjusted proxy)	$0.37	$0.376*
Adjusted EBITDA ($M)	$115.0	$112.18*

Revenue: bold beat by ~$13.4M.
Primary EPS (aligned to adjusted EPS): essentially in line to slight beat.
Adjusted EBITDA: modest beat.
Values retrieved from S&P Global.*

Segment Revenue Breakdown (Q2)

Segment ($000s)	Q2 2024	Q2 2025
Workers’ Compensation	$288,405	$332,191
Employer Services	$153,305	$174,318
Consumer Health	$7,669	$7,177
Other Occ Health Center Rev	$1,861	$2,452
Total Occ Health Centers	$451,240	$516,138
Onsite Health Clinics	$15,539	$22,569
Other	$11,136	$12,078
Total Revenue	$477,915	$550,785

KPIs (Q2)

KPI	Q2 2024	Q2 2025
Total Patient Visits	3,214,255	3,520,320
Visits per Day (Total)	50,223	55,005
W/C Visits per Day	22,739	24,843
Employer Services VPD	26,600	29,334
Revenue per Visit (Total, $)	$139.81	$145.92
W/C RPV ($)	$198.18	$208.93
Employer Services RPV ($)	$90.05	$92.85
Business Days	64	64
Centers (end of period)	547	628
Onsite Clinics (end of period)	154	406

Guidance Changes

Metric	Period	Previous Guidance (May 7, 2025)	Current Guidance (Aug 7–8, 2025)	Change
Total Revenue	FY 2025	$2.10B – $2.15B	$2.13B – $2.16B	Raised
Adjusted EBITDA	FY 2025	$415M – $430M	$420M – $430M	Raised (lower bound)
Capital Expenditures	FY 2025	$80M – $90M	$80M – $90M	Maintained
Net Leverage Ratio	FY 2025 YE	~3.5x	~3.5x	Maintained
Dividend	Quarterly	$0.0625 declared (May)	$0.0625 declared (Aug)	Maintained

Management reiterated deleveraging plan to <3.0x by end of 2026 .

Earnings Call Themes & Trends

Topic	Q4 2024 (Mar 4)	Q1 2025 (May 8)	Q2 2025 (Aug 8)	Trend
Volume trajectory	ES VPD -4.8% YoY; W/C VPD +1.1% YoY	ES VPD inflected positive; core ES +0.9% YoY; core W/C +0.2% YoY	Stronger: core W/C +3.2%, core ES +2.0%; total VPD +9.5% YoY	Improving
Rate/pricing	RPV +5.8% YoY	RPV +5.6% YoY; strong fee schedule backdrop (incl. FL)	RPV +4.4% YoY; favorable 2026 doc fix uplift in select states	Sustained strength
M&A/integration	Nova signed; delever plan	Nova closed; Pivot signed; de novo pipeline	Pivot closed; Nova fully integrated; >1,000 locations	Executing
Macro/hiring	Stabilizing hiring/quit rates; cautious optimism	No current macro impact; reshoring tailwind	“Not seeing any slowdown”; stable labor dynamics	Neutral-to-positive
Regulatory/reimbursement	Florida fee schedule uplift; low gov’t pay exposure (<1%)	Minimal tariff exposure; ES pricing tracks inflation	2026 doc fix + MEI flows into W/C fee schedules (CA strongest)	Tailwinds forming
Onsite/adjacent offerings	Won 10 onsite Q4; pipeline	Pivot doubles onsite; APC and behavioral ramp	Onsite revenue +45% YoY incl. Pivot; APC wins expected	Scaling
Technology/AI	Efficiency initiatives; limited explicit AI	Operational tech efficiencies	Board additions with data/AI expertise (Bonner, Gopal)	Capability build

Management Commentary

“We are not seeing any slowdown based on the data we look at every day... employers of all sizes, industries, and geography.” — Keith Newton, CEO .
“Adjusted EBITDA margin... would have been flat or potentially even higher than prior year” excluding one-time Nova/Pivot costs and public company/separation expenses — Matt DiCanio, CFO .
“We are progressing well on the integration of... Nova... and Pivot Onsite... enabling Concentra to deliver... from over 1,000 combined... locations” — Matt DiCanio, CFO .
“We are pleased to announce a continuation of our dividend... $0.0625 per share” — Matt DiCanio, CFO .
“With recent legislation... 2.5% doc fix... CA, OH, NC, TN... expecting another strong rate year in 2026” — Keith Newton, CEO .

Q&A Highlights

Guidance drivers: Raised FY25 revenue/EBITDA reflect run-rate performance and inclusion of M&A (Nova/Pivot), with prior weather impact noted only for Q3’24 comps; remaining synergies to be phased in .
Margin clarifications: One-time Nova/Pivot transition costs (~$0.75M) burdened cost of services; acquired G&A not fully synergized; public company/separation costs elevated G&A; underlying margins viewed as stable .
Volume cadence: Back half expected closer to YTD average; ES volumes moving to flat-to-slightly positive by year-end; W/C low single-digit organic growth long-term .
Onsite outlook: Organic growth ~10% excluding Pivot; advanced primary care (APC) expanding addressable market and RFP wins .
Reimbursement: W/C fee schedule increases generally track inflation; ES pricing set annually to reflect CPI/MEI trends; 2026 doc fix seen as tailwind .

Estimates Context

Revenue beat: $550.8M actual vs $537.36M consensus; bold positive surprise on top-line* .
Primary EPS (adjusted proxy) essentially in line/slight beat: $0.37 actual vs $0.376 consensus* .
Adjusted EBITDA modest beat: $115.0M actual vs $112.18M consensus* .
Values retrieved from S&P Global.*

Implication: Street likely nudges FY25/26 revenue and EBITDA higher; EPS revisions may be modest given normalization of one-time costs and interest expense headwinds.

Key Takeaways for Investors

Rate + volume engine intact: double-barreled Q2 with strong W/C and ES volumes and mid-single digit rate growth supports FY25 raise and FY26 tailwinds (doc fix), a constructive setup into Q3/Q4 .
Integration value unlock: Nova fully branded/integrated; Pivot closed; remaining synergies through 2025–Q1’26 should backstop margin normalization as public company/separation costs taper .
Deleveraging on track: YE’25 ~3.5x; <3.0x by YE’26 with strong 2H cash flow seasonality — positioning for optionality on bolt-ons and de novos without stressing leverage .
Onsite/APC adjacency: Pivot doubles onsite scale; APC wins expand employer relationships and revenue resilience; watch for pipeline conversion .
Reimbursement resilience: Low government exposure (~<1%); state W/C fee schedules and inflation-linked mechanisms reduce “stroke-of-the-pen” risk; Florida uplift already benefiting centers .
Near-term trading lens: Top-line beat and raised guide vs modest margin headwinds (one-time) frames a favorable risk-reward into Q3 prints; monitor synergy capture cadence and SG&A normalization .
Medium-term thesis: Durable mid/high single-digit revenue growth, ~20%+ adjusted EBITDA margins, >80% FCF conversion, and improving leverage support a compounder profile .

Additional documents referenced:

Q2 2025 8-K press release and exhibits (includes dividend, raised guidance, financials) .
Q2 2025 earnings call transcript (themes, guidance, integration, macro, reimbursement) .
Q1 2025 8-K press release and earnings call (prior quarter context, initial guide, Nova closing, Pivot signing) .
Pivot Onsite Innovations closing 8-K/press release (June 2) .
Q4 2024 earnings call (baseline trends and Florida fee schedule) .

S&P Global consensus data used for estimates comparisons.*