CON Filings — Concentra Group Holdings Parent, Inc.

CON Filings — Concentra Group Holdings Parent, Inc. - FilingSpy

10-Q · Quarter ended Jun 30, 2026 · SEC filing ↗

Operating margin hit 19.0% as gross margin widened to 31.7%, both the highest in the reported history.

Concentra's is accelerating. rose 10.0% to $606.0 million and widened 2.4 points to 31.7%, driving up 28.5% to $115.1 million as staffing efficiencies took hold. The business is now generating enough cash to self-fund growth while reducing debt costs.

Key takeaways

widened to 31.7%, the highest in the reported quarterly history, as cost of services improved to 68.3% of from 70.7% a year ago due to staffing efficiencies and the elimination of prior-year acquisition-related costs.
rose 28.5% to $115.1 million, with widening 2.7 points to 19.0%, as the gain was partly offset by general and administrative expenses remaining elevated at 9.3% of .
rose 46.5% to $65.3 million, as the $25.6 million increase in was amplified by a $2.5 million decline in to $25.7 million following voluntary debt repayments.
rose 89.3% to $119.5 million, as increased 53.0% to $135.2 million, providing ample liquidity for $26.8 million in and $25.9 million in share repurchases during the quarter.
The company's fell to 2.99x at quarter-end, with $158.0 million in cash and $430.2 million available under its , and no outstanding revolver borrowings.

What changed

The 2.7-point expansion in to 19.0% resolves the prior watch item on whether G&A costs would recede enough to allow margin recovery; G&A remained elevated at 9.3% of , but the gain to 31.7% more than compensated.
The 2.6% increase in patient visits confirms the volume recovery is sustaining organically as the initial lift from the Nova and Pivot acquisitions annualizes, though the growth rate has moderated from the 9.5% reported in Q2 2025.

What to watch

Whether can sustain the 31.7% level through Q3 2026, or whether it reverts toward the 29-30% range seen in prior third quarters, which will determine if can remain near 19%.
Whether G&A as a percentage of declines from 9.3% toward the 7.6-7.9% range reported before the IPO, which would allow to widen further as acquisition and separation costs recede.
Whether the company continues to deleverage: with the at 2.99x, further voluntary repayments or growth could reduce and lift .

Section summaries

Management's Discussion and Analysis

Revenue rose 10% to $606M on higher patient visits and reimbursement rates, while cost efficiencies expanded margins.

Total increased 10.0% to $606.0 million in Q2 2026, driven by a 2.6% rise in patient visits and a 4.6% increase in revenue per visit.
Workers' compensation visits per day grew 3.7% and per visit rose 4.9%, benefiting from higher state fee schedule reimbursements.
Cost of services improved to 68.3% of from 70.7% a year ago due to staffing efficiencies and the elimination of prior-year acquisition-related costs.

Quantitative and Qualitative Disclosures About Market Risk

Our market exposure risk is primarily related to interest rate risk in connection with our variable rate long-term indebtedness. Our principal interest rate exposure relates to the loans outstanding under our credit facilities, which bear interest rates that are indexed against Term SOFR. Interest rate risk is highly sensitive due to many factors, monetary and tax policy, macroeconomic factors, and other factors beyond our control. We do not hold or use derivative financial instruments for trading purposes. At June 30, 2026, we had outstanding borrowings under our credit facilities consisting of a $938.1 million Term Loan (excluding unamortized original issue discount and debt issuance costs of $10.6 million) and no borrowings under our Revolving Credit Facility, which bear variable interest rates. In order to mitigate our exposure to rising interest rates, we entered into a derivative swap contract effective on March 3, 2025, which limits the Term SOFR rate to a fixed rate of 3.829% on $300 million of principal outstanding under our Term Loan. The agreement applies to interest payments through February 29, 2028. In addition, we entered into a derivative collar contract effective on March 3, 2025, which limits the Term SOFR rate to a cap of 4.500% and floor of 3.001% on $300 million of principal outstanding under our Term Loan. The agreement applies to interest payments through February 29, 2028. As of June 30, 2026, the Term SOFR rate was 3.65% and we had $638.1 million of our Term Loan borrowings subject to variable interest rates. At June 30, 2026, a hypothetical 0.25% change in market interest rates would have no material impact on our annual interest expense and financial results. 39 Table of Contents

Read original filing text →

CON

CON