Select Medical (SEM) Q4 2025 earnings summary

Executive summary

• Received a non-binding take-private proposal from the executive chairman at $16.00–$16.20 per share; a special committee is reviewing it.

• Revenue for Q4 2025 rose 6.4% year-over-year to $1,396.6 million; full-year revenue increased 5.1% to $5,452.8 million.

• Income from continuing operations before other income and expense surged 203.1% in Q4 and 25.3% for the year.

• Net income from continuing operations, net of tax, increased 461.0% in Q4 and 65.0% for the year.

• Focused on expanding the inpatient rehabilitation business, adding 212 rehab beds in 2025 and planning significant growth through 2027.

Financial highlights

• Q4 revenue grew 6.4% year-over-year to $1,396.6 million; full-year revenue increased 5.1% to $5,452.8 million.

• Q4 Adjusted EBITDA declined 10% to $104.7M, impacted by higher health insurance expenses.

• Q4 EPS from continuing operations was $0.16, compared to a loss of $0.19 last year; adjusted EPS was $0.16 vs. $0.18.

• Full-year Adjusted EBITDA was $493.2M (9% margin), down from $510.4M (9.8% margin) in 2024.

• Full-year EPS from continuing operations was $1.16, up from $0.51; adjusted EPS was $1.16 vs. $0.94.

Outlook and guidance

• 2026 revenue expected between $5.6B–$5.8B; Adjusted EBITDA $520M–$540M; EPS $1.22–$1.32.

• Capital expenditures projected at $200M–$220M for 2026.

• Outpatient margins expected to improve year-over-year, aided by a 2% Medicare rate increase.

• Cautiously optimistic on outpatient and critical illness segments; robust growth expected in inpatient rehab.