Concentra Group's 2025 Q2 Earnings: M&A, Workers' Comp, and Weather Events Spark Key Contradictions

Impact of M&A on revenue growth, workers' compensation growth expectations and revenue trends, workers' comp revenue trends and interpretation of 1Q softness, impact of weather events on revenue and EBITDA are the key contradictions discussed in Concentra Group Holdings Parent's latest 2025Q2 earnings call.



Strong Financial Performance:
- Concentra Group Holdings reported total company revenue of $550.8 million for Q2 2025, representing a 15.2% growth year-over-year.
- Excluding contributions from the Nova acquisition, revenue was $519.4 million, resulting in an 8.7% increase over the prior year.
- The growth was driven by increased patient visits and strong revenue per visit increases.

Patient Volume and Revenue per Visit:
- Total patient visits increased 9.5% in the quarter, with workers' compensation visits per day increasing 9.3% and employer services visits increasing 10.3%.
- The company also reported a 4.4% increase in revenue per visit, driven by a 5.4% increase in workers' compensation and a 3.1% increase in Employer Services revenue per visit.
- This growth was supported by strong volume trends and rate increases.

On-Site Health Clinics Expansion:
- The On-Site Health Clinics segment reported revenue of $22.6 million, a 45.2% increase from the same quarter prior year.
- Excluding the impact from the Pivot acquisition, the On-site segment grew 9.9% year-over-year.
- The expansion is expected to enhance the company's ability to compete in the broader on-site space, with plans to continue organic growth and potential acquisition opportunities.

Integration and Cost Management:
- The company successfully completed the integration and rebranding of acquired Nova occupational health centers and closed on the Pivot acquisition, doubling the size of the on-site health clinics segment.
- There were one-time costs related to these integrations, but cost efficiencies were achieved due to strong revenue growth and better staffing levels.
- The ongoing separation from Select Medical and integration efforts are on track to meet timelines, with the expectation of significant synergies in the future.