Free cash flow rebounded to $119.5M (19.7% margin) in Q2 2026 after a near-zero Q1, with cumulative OCF of $710.2M exceeding net income by $261.4M over ten quarters, though working capital swings of $101.6M drive volatility.
Concentra Group Holdings Parent, Inc. (CON) cash flow statement — 4-year operating, investing & financing cash flows
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 |
|---|
| Cash from Operations | 335.55M | 279.4M | 274.68M | 234.32M | 274.34M |
| Operating CF Margin % | - | 12.91% | 14.46% | 12.75% | 15.91% |
| Operating CF Growth % | 151.3% | 1.72% | 17.22% | -14.59% | - |
| Net Income | 198.73M | 172.8M | 171.9M | 184.74M | 172.24M |
| Depreciation & Amortization | 1.94M | 0 | 67.18M | 73.05M | 73.67M |
| Stock-Based Compensation | 1.38M | 0 | 2.33M | 651K | 2.14M |
| Deferred Taxes | 10.89M | 0 | -2.4M | -6.29M | -8.64M |
| Other Non-Cash Items | 89.61M | 98.64M | 5.5M | 857K | 1.01M |
| Working Capital Changes | 24.54M | 7.96M | 30.18M | -18.7M | 33.92M |
| Change in Receivables | -15.72M | -11.14M | -1.6M | -10.26M | -5.93M |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | 36.39M | 17.97M | 24.59M | 0 | 0 |
| Cash from Investing | -69.64M | -414.86M | -71.27M | -75.31M | -57.75M |
| Capital Expenditures | 14.21M | 0 | -64.33M | -69.34M | -45.98M |
| CapEx % of Revenue | 0.62% | 3.81% | 3.39% | 3.77% | 2.67% |
| Acquisitions | 329.54M | 0 | -6.96M | -6M | -11.8M |
| Investments | - | - | - | - | - |
| Other Investing | -413.39M | -414.86M | 27K | 36K | 38K |
| Cash from Financing | -181.74M | 32.1M | -51.53M | -165.29M | -209.86M |
| Debt Issued (Net) | -187.06M | 90.39M | 999.95M | -161.69M | -184.68M |
| Equity Issued (Net) | -25.95M | -22.42M | 495.8M | -1.98M | -25.71M |
| Dividends Paid | 12K | -32.08M | -1.54B | -6.13M | 0 |
| Share Repurchases | -25.95M | -22.42M | -15.4M | -5.32M | -29.05M |
| Other Financing | 31.26M | -3.78M | -3.63M | 4.51M | 534K |
| Net Change in Cash | 84.17M | -103.36M | 151.88M | -6.28M | 6.73M |
| Free Cash Flow | 349.75M | 197.06M | 210.35M | 164.98M | 228.35M |
| FCF Margin % | 15.29% | 9.11% | 11.07% | 8.98% | 13.24% |
| FCF Growth % | 87.13% | -6.32% | 27.5% | -27.75% | - |
| FCF per Share | 2.73 | 1.54 | 1.64 | 1.30 | 1.80 |
| FCF Conversion (FCF/Net Income) | 1.76x | 1.62x | 1.65x | 1.30x | 1.65x |
| Interest Paid | -4.23M | 108.97M | 49.65M | 44.35M | 31.12M |
| Taxes Paid | 34.38M | 45.91M | 55.76M | 60.61M | 42.17M |
Quick answers to the most common questions about buying CON stock.
Concentra Group Holdings Parent, Inc. (CON) generated $279.4M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Concentra Group Holdings Parent, Inc. (CON) generated $197.1M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Concentra Group Holdings Parent, Inc. (CON) spent $0.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Concentra Group Holdings Parent, Inc. (CON) returned $32.1M to shareholders via cash dividends and spent $22.4M on share repurchases. This shows the company's commitment to returning capital to its equity investors.
Key Metrics
Top Statement Risk
Elevated leverage and CEO transition
Metrics are mathematically derived from official filings.
Cash Conversion Volatility Signals Quality
Operating cash flow exceeded net income by 2.07x in Q2 2026, but Q1 2026 saw OCF/NI at 0.42, indicating significant quarterly volatility in cash conversion, per recent SEC filings.
The wide swings in OCF/NI, from 0.42 in Q1 2026 to 2.07 in Q2 2026, suggest that working capital changes are a major driver of cash flow timing, not just earnings quality. The Q2 2026 beat was supported by a $44.7M working capital inflow, which may not be sustainable. Investors should monitor whether the company can maintain conversion above 1.0x on a sustained basis, as the average over the past year is roughly 1.5x, but the quarterly pattern is erratic.
FCF Rebound After Seasonal Dip
Free cash flow surged to $119.5M in Q2 2026, a 19.7% margin, recovering from a near-zero FCF in Q1 2026, as reported in the latest quarterly data.
The FCF trajectory shows a clear rebound from the -$4.0M in Q1 2025 and the $9.9M in Q1 2026, with Q2 2026 marking the highest FCF in the series. This aligns with the income statement's operating leverage story, but the volatility suggests that quarterly FCF is not a reliable run-rate indicator. The 19.7% FCF margin in Q2 2026 is well above the peer average, but the company's capital intensity is low (CapEx/Rev ~2.6%), so the margin is more sensitive to working capital swings.
Low Capital Intensity Masks Growth Needs
Capital expenditures averaged 3.2% of revenue over the past year, with Q2 2026 at 2.6%, indicating a low capital intensity that may understate future investment needs, based on reported figures.
The CapEx/Rev ratio has been consistently below 4%, which is typical for a services business, but the company's growth strategy may require higher investment in new centers and technology. The $62.2M positive CapEx in Q4 2025 is an anomaly, likely reflecting a sale-leaseback or asset disposal, which inflates FCF that quarter. Investors should watch whether management increases CapEx to support expansion, which could pressure FCF margins.
Working Capital Swings Drive Cash Flow
Working capital changes swung from -$56.9M in Q1 2026 to +$44.7M in Q2 2026, a $101.6M swing that explains most of the quarterly cash flow volatility, as per the cash flow statement.
The working capital line is the primary source of quarterly cash flow volatility, with large negative contributions in Q1 2026 and Q1 2025, and positive contributions in Q2 2026 and Q4 2024. This pattern suggests that the company's collections and payables management are not smooth, possibly due to the timing of insurance reimbursements. The Q2 2026 inflow of $44.7M may be a reversal of the Q1 outflow, indicating a cyclical pattern that investors should model for seasonality.
Capital Returns and Deleveraging in Focus
Dividends and buybacks totaled $19.0M in Q2 2026, while acquisitions were absent, but the $1.5B dividend in Q4 2024 suggests a special distribution, according to the cash flow data.
The company has been returning capital to shareholders through regular dividends and modest buybacks, but the $1.5B dividend in Q4 2024 is a one-time event, likely related to the IPO or restructuring. The low ongoing payout (around $8M per quarter) suggests a conservative capital return policy, which may be prudent given the elevated leverage. The lack of acquisition activity in recent quarters may indicate a focus on debt reduction, but the balance sheet remains strained with a 5.0x debt/equity ratio.
Cumulative Cash Generation Outpaces Earnings
Over the past ten quarters, cumulative operating cash flow of $710.2M exceeded cumulative net income of $448.8M, a gap of $261.4M, based on the quarterly cash flow data.
The cumulative OCF/NI ratio of 1.58x indicates that cash generation has been significantly stronger than reported earnings, which is a positive signal for earnings quality. However, this gap is largely driven by non-cash charges like D&A and favorable working capital timing, not necessarily sustainable operational improvements. The divergence suggests that the company's earnings are conservative, but investors should be cautious about extrapolating this gap into the future, as working capital swings can reverse.
What Could Invalidate the Base Case
The Q4 2025 cash flow data shows a $333.3M acquisition outflow and a $62.2M positive CapEx, which may distort the true cash generation, as per the cash flow statement.
The reported figures include unusual items such as a $1.5B dividend in Q4 2024 and a $333.3M acquisition in Q4 2025, which are not part of ongoing operations. These one-time events can obscure the underlying cash flow trend, and the 96.5% operating margin is likely a reporting artifact. Investors should normalize for these items to assess the sustainable cash flow, and the elevated leverage of 5.0x debt/equity warrants close monitoring given the CEO transition.