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Income Taxes (Tables)

12 Months Ended

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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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.

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Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets.

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Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations.

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Tabular disclosure of pertinent information, such as tax authority, amounts, and expiration dates, of net operating loss carryforwards, including an assessment of the likelihood of utilization.

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