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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2025
Income Tax Disclosure [Abstract] |
Schedule of the components of income tax expense | The components of the Company’s income tax expense from continuing operations for the years ended December 31, 2023, 2024, and 2025, are as follows:
| For the Year Ended December 31,
| 2023 |  | 2024 |  | 2025
| (in thousands)
Current income tax expense: |  |  |  |  |
Federal | $ | 24,766 |  |  | $ | 50,372 |  |  | $ | 21,827 |
State and local | 14,317 |  |  | 25,280 |  |  | 5,737 |
Total current income tax expense | 39,083 |  |  | 75,652 |  |  | 27,564 |
Deferred income tax expense (benefit) | (9,830) |  |  | (30,870) |  |  | 30,652 |
Total income tax expense from continuing operations | $ | 29,253 |  |  | $ | 44,782 |  |  | $ | 58,216 |
Schedule of reconciliations of the statutory federal income tax rate to the effective income tax rate | Reconciliations of the statutory federal income tax rate to the effective income tax rate are as follows:
| For the Year Ended December 31,
| 2023 |  | 2024 |  |
Federal income tax at statutory rate | 21.0 | % |  | 21.0 | % |  |
State and local income taxes, less federal income tax benefit | 11.8 |  |  | 6.5 |  |  |
Permanent differences | 1.8 |  |  | 1.7 |  |  |
Deferred income taxes — state income tax rate adjustment | (3.0) |  |  | 0.0 |  |  |
Deferred income taxes - covered employee adjustment | — |  |  | 0.9 |  |  |
Valuation allowance | (1.8) |  |  | 1.5 |  |  |
Limitation on officers’ compensation | 7.4 |  |  | 15.8 |  |  |
Tax credits | (2.7) |  |  | (1.6) |  |  |
Stock-based compensation | (1.2) |  |  | (5.4) |  |  |
Non-controlling interest | (12.2) |  |  | (15.0) |  |  |
Other | (0.2) |  |  | 0.2 |  |  |
Effective income tax rate | 20.9 | % |  | 25.6 | % |  |
|  |  | For the Year Ended December 31, 2025
|  |  | (in thousands, except percentages)
Federal income tax at statutory rate |  |  | $ | 57,290 |  |  | 21.0 | %
State and local income taxes, less federal income tax benefit (1) |  |  | 8,536 |  |  | 3.1 |
Tax credits: |  |  |  |  |
R&D credits |  |  | (1,145) |  |  | (0.4) |
Other tax credits |  |  | (2,174) |  |  | (0.8) |
Nontaxable or nondeductible items: |  |  |  |  |
Limitation on officers’ compensation |  |  | 3,535 |  |  | 1.3 |
Stock-based compensation |  |  | 1,306 |  |  | 0.5 |
Noncontrolling interest |  |  | (14,346) |  |  | (5.3) |
Other |  |  | 5,214 |  |  | 1.9 |
Effective income tax rate |  |  | $ | 58,216 |  |  | 21.3 | %
_______________________________________________________________________________ (1) In 2025, state taxes in Michigan, New Jersey, Minnesota, and Pennsylvania made up the majority (greater than 50%) of the tax effect in this category.
Supplemental cash flow information | The following is selected financial information included on the Consolidated Statements of Cash Flows for Concentra:
| For the Year Ended December 31,
| 2023 |  | 2024 |  |
Depreciation and amortization | 73,051 |  |  | 61,028 |  |  |
Cash flows from investing activities: |  |  |  |  |
Purchases of property, equipment, and other assets | $ | 69,340 |  |  | $ | 63,269 |  |  |
Supplemental cash flow information related to leases is as follows:
| For the Year Ended December 31,
| 2023 |  | 2024 |  | 2025
| (in thousands)
Cash paid for amounts included in the measurement of lease liabilities (1): |  |  |  |  |
Operating cash flows for operating leases | $ | 317,256 |  |  | $ | 321,271 |  |  | $ | 244,623 |
Operating cash flows for finance leases | 1,239 |  |  | 1,104 |  |  | 1,081 |
Financing cash flows for finance leases | 1,617 |  |  | 1,347 |  |  | 652 |
Right-of-use assets obtained in exchange for lease liabilities: |  |  |  |  |
Operating leases | 171,569 |  |  | 299,111 |  |  | 238,495 |
Finance leases | — |  |  | — |  |  | 56,676 |
_______________________________________________________________________________ (1) Cash flows include cash paid for operating and finance leases of discontinued operations for the years ended December 31, 2023 and 2024. The Company’s net cash paid for income taxes consisted of the following:
|  |  |  |  | For the Year Ended December 31, 2025
|  |  |  |  | (in thousands)
Federal |  |  |  |  | $ | 10,745 |
Aggregated state and local jurisdictions |  |  |  |  | 5,731 |
Disaggregated state and local jurisdictions |  |  |  |  |
Florida |  |  |  |  | 1,284 |
New Jersey |  |  |  |  | 1,474 |
Ohio |  |  |  |  | 1,171 |
Pennsylvania |  |  |  |  | 5,617 |
Net cash paid for income taxes |  |  |  |  | $ | 26,022 |
Schedule of deferred tax assets and liabilities | The Company’s deferred tax assets and liabilities are as follows:
| December 31,
| 2024 |  | 2025
| (in thousands)
Deferred tax assets |  |  |
Implicit discounts and adjustments | $ | 6,169 |  |  | $ | 4,166 |
Compensation and benefit-related accruals | 44,651 |  |  | 46,459 |
Professional malpractice liability insurance | 14,081 |  |  | 14,724 |
Federal and state net operating loss and state tax credit carryforwards | 22,611 |  |  | 26,506 |
Interest limitation carryforward | 47,905 |  |  | 46,187 |
Stock awards | 2,314 |  |  | 995 |
Equity investments | 1,235 |  |  | 1,442 |
Operating lease liabilities | 174,165 |  |  | 192,152 |
Derivatives | — |  |  | 1,548 |
Research and experimental expenditures | 20,478 |  |  | 9,914 |
Excess capital loss | 4,941 |  |  | 1,131 |
Other | 384 |  |  | 399 |
Deferred tax assets | 338,934 |  |  | 345,623 |
Valuation allowance | (15,230) |  |  | (16,644) |
Deferred tax assets, net of valuation allowance | 323,704 |  |  | 328,979 |
Deferred tax liabilities |  |  |
Investment in unconsolidated affiliates | $ | (20,228) |  |  | $ | (22,502) |
Investment in consolidated affiliates | (3,511) |  |  | (3,613) |
Depreciation and amortization | (190,355) |  |  | (205,334) |
Deferred financing costs | (494) |  |  | (420) |
Operating lease right-of-use assets | (162,171) |  |  | (178,359) |
Other | (1,378) |  |  | (1,813) |
Deferred tax liabilities | (378,137) |  |  | (412,041) |
Deferred tax liabilities, net of deferred tax assets | $ | (54,433) |  |  | $ | (83,062) |
The Company’s deferred tax assets and liabilities are included in the consolidated balance sheet captions as follows:
| December 31,
| 2024 |  | 2025
| (in thousands)
Other assets | $ | 27,064 |  |  | $ | 29,095 |
Non-current deferred tax liability | (81,497) |  |  | (112,157) |
| $ | (54,433) |  |  | $ | (83,062) |
Schedule of state net operating loss carryforwards | The total state net operating losses are approximately $607.9 million. State net operating loss carryforwards expire and are subject to valuation allowances as follows:
| State Net Operating Losses |  | Gross Valuation Allowance
| (in thousands)
2026 | $ | 23,592 |  |  | $ | 22,458 |
2027 | 40,402 |  |  | 38,795 |
2028 | 47,292 |  |  | 44,776 |
2029 | 27,019 |  |  | 21,800 |
Thereafter through 2042 | 469,567 |  |  | 345,522 |

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- Definition Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 9 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-9 + Details
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