CONHIGH SIGNALOPERATIONAL10-K

CON completed a major $265M acquisition of Nova Medical Centers while achieving 14% revenue growth, but burned through over half its cash reserves in the process.

The Nova acquisition represents a transformative expansion, adding 76 health centers and 254 onsite clinics while increasing headcount by 18% to serve 6% more daily patients. However, the company's cash position dropping 56% to just $79.9M raises concerns about financial flexibility, despite increased borrowing capacity and stronger equity position.

Comparing 2026-02-26 vs 2025-03-03View on EDGAR →
FINANCIAL ANALYSIS

CON shows strong operational momentum with revenue growing 14% to $2.2B and total assets expanding 13% to $2.9B, supported by higher accounts receivable reflecting business growth. However, the company's liquidity profile deteriorated significantly with cash declining 56% to $79.9M and current assets falling 12%, offset partially by equity strengthening 43% to $393.3M. The combination of increased capex (up 28%) and higher share buybacks (up 46%) alongside acquisition financing suggests aggressive capital deployment that investors should monitor closely for sustainability.

FINANCIAL STATEMENT CHANGES
Cash & Equivalents
Balance Sheet
-56.4%
$183.3M$79.9M

Cash declined 56.4% — significant cash burn or deployment; verify adequacy of remaining liquidity runway.

Share Buybacks
Cash Flow
+45.6%
$15.4M$22.4M

Share repurchases increased 45.6% — management returning capital, signals confidence in intrinsic value.

Stockholders Equity
Balance Sheet
+42.7%
$275.7M$393.3M

Equity base grew 42.7% — retained earnings accumulation or equity issuance strengthening the balance sheet.

Capital Expenditure
Cash Flow
+28%
$64.3M$82.3M

Capex increased 28% — ongoing investment in capacity or infrastructure for future growth.

Accounts Receivable
Balance Sheet
+18.5%
$217.7M$257.9M

Receivables grew 18.5% — monitor days sales outstanding for collection efficiency.

Revenue
P&L
+13.9%
$1.9B$2.2B

Revenue growing 13.9% — solid top-line momentum, watch margins for quality of growth.

Total Assets
Balance Sheet
+13.4%
$2.5B$2.9B

Asset base grew 13.4% — expansion through organic growth, acquisitions, or capital deployment.

Current Assets
Balance Sheet
-12.4%
$437.2M$383.1M

Current assets declined 12.4% — monitor working capital adequacy and short-term liquidity.

LANGUAGE CHANGES
NEW — 2026-02-26
PRIOR — 2025-03-03
ADDED
As of December 31, 2025, we operated 628 stand-alone occupational health centers in 41 states and 411 onsite health clinics at employer worksites in 44 states.
We had approximately 13,000 colleagues and affiliated physicians and clinicians as of December 31, 2025 who supported the delivery of an extensive suite of services, including occupational and consumer health services and other direct-to-employer care to approximately 53,000 patients each business day on average during 2025.
For the year ended December 31, 2025 our revenue was $2,163.4 million, with approximately 93% from occupational health centers, approximately 5% from onsite health clinics, and approximately 2% from other businesses.
Significant Events Nova Acquisition Effective March 1, 2025, the Company acquired Nova Medical Centers ( Nova ).
Concentra Health Services, Inc., a wholly owned subsidiary of Concentra ( CHSI ), entered into an equity purchase agreement to acquire all of the outstanding membership interests for a purchase price of $265.0 million, subject to adjustment in accordance with the terms and conditions set forth in the purchase agreement.
We financed the transaction using a combination of $102.1 million of new debt financing under the Credit Agreement (as defined below), $50.0 million of available borrowing capacity under our Revolving Credit Facility (as defined below), and the remaining with cash on hand.
The interest rate for the Revolving Credit Facility has been reduced from Term Secured Overnight Financing Rate ( Term SOFR ) plus 2.50% to Term SOFR plus 2.00%, subject to a leverage-based pricing grid including a 25-basis point step down at a net leverage ratio of 3.50x.
Pivot Onsite Innovations Acquisition Effective June 1, 2025, the Company acquired Onsite Innovations, LLC ( Pivot Onsite Innovations ) from Pivot Occupational Health, LLC.
We financed the transaction using a combination of $35.0 million of available borrowing capacity under our existing Revolving Credit Facility and the remaining with cash on hand.
Pivot Onsite Innovations operated over 240 onsite health clinics at employer locations in over 40 states, providing occupational health, wellness, prevention, and performance services.
REMOVED
Accordingly, there was no public market for the registrant s common stock as of June 30, 2024, the last business day of the registrant s most recently completed second fiscal quarter.
As of December 31, 2024, we operated 552 stand-alone occupational health centers in 41 states and 157 onsite health clinics at employer worksites in 36 states.
We had approximately 11,000 colleagues and affiliated physicians and clinicians as of December 31, 2024 who supported the delivery of an extensive suite of services, including occupational and consumer health services and other direct-to-employer care to approximately 50,000 patients each business day on average during 2024.
For the year ended December 31, 2024 our revenue was $1,900.2 million, with approximately 95% from occupational health centers, approximately 3% from onsite health clinics, and approximately 2% from other businesses.
Significant Events Separation Announced On January 3, 2024, Select Medical Holdings Corporation ( Select ), our former parent company, announced its intention to separate Concentra from its business.
In connection with the Separation, we entered into the Separation Agreement, as further described in the section of this annual report on Form 10-K entitled Certain Relationships and Related Person Transactions Agreements to be Entered into in Connection with the Separation Separation Agreement.
We entered into various other agreements with Select and its wholly-owned subsidiaries that, together with the Separation Agreement, provide for certain transactions and arrangements to effect the separation of our business from Select.
We refer to these transactions, as further described in the section of this annual report on Form 10-K entitled The Separation and Distribution Transactions The Separation, collectively as the Separation.
Initial Public Offering and Debt Transactions On July 26, 2024, the Company completed an Initial Public Offering ( IPO ) of 22,500,000 shares of its common stock, par value $0.01 per share, at an initial public offering price of $23.50 per share for net proceeds of $499.7 million after deducting underwriting discounts and commission of $29.1 million.
In addition, the underwriters exercised the option to purchase an additional 750,000 shares of the Company s common stock for net proceeds of $16.7 million after deducting underwriting discounts and commission of $1.0 million.
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