Concentra Group Holdings Parent, Inc. (CON) Q3 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Our operations and sales and marketing teams have done a nice job driving visits and gaining market share against a macroeconomic backdrop that I would generally describe as uncertain considering interest rates, tariffs, and the shutdown. Some recently published jobs data would seemingly indicate that we're in an economic environment that is slowing down, but we aren't necessarily seeing that play out in our business to date. With respect to macroeconomic data reporting over a long period of time, we have seen correlation between our workers' compensation volume and employment levels reported by the BLS, and there is strong correlation between our employer services volumes and quits and hiring rates within the BLS JOLTS data. However, we've also found that our workers' comp visit data has largely lacked correlation with BLS employment data in the most recent times. I just point that out so that the folks don't rely solely on the publicly reported jobs data as the only proxy for our visit volume. On the rate front, we had strong growth again with a 4.2% increase in revenue per visit this quarter versus the same quarter prior year. This growth was driven by a 4.7% increase in workers' compensation and a 2.7% increase in employer services revenue per visit. Adjusted EBITDA was 118.9 million in the quarter versus 101.6 million in the same quarter prior year, or a 17.1% increase. Adjusted EBITDA margin increased slightly from 20.7% in Q3 2024 to 20.8% in Q3 2025. As with prior quarters, we are comparing against prior year margin that was not fully burdened by public company and other separation costs. Additionally, similar to last quarter, we had a number of one-time NOVA integration costs that burdened adjusted EBITDA. This expansion in margin, even with these dynamics, ...