Select Medical Holdings Corporation
Q4 2025 Earnings
Market Reaction
Did SEM Beat Earnings? Q4 2025 Results
Select Medical delivered a mixed fourth quarter for fiscal 2025, posting earnings that fell well short of expectations even as revenue held up better than feared. The company earned $0.16 per share, missing the $0.2321 consensus estimate by 31.06%, while revenue of $1.40 billion edged ahead of the $1.36 billion forecast by 2.39%. The profitability shortfall traced most directly to deepening margin pressure in the outpatient rehabilitation segment, where Adjusted EBITDA collapsed 57.9% year-over-year to just $11.18 million — compressing the segment's margin from 8.3% to 3.4%. On a consolidated basis, Adjusted EBITDA declined to $104.66 million from $115.99 million in the prior year, underscoring that the headline earnings improvement was flattered by one-time charges taken in Q4 2024. The strategic backdrop has grown equally complex, with the company having entered a definitive merger agreement to be acquired by a consortium led by Executive Chairman Robert Ortenzio at $16.50 per share. Management guided 2026 revenue of $5.60 billion to $5.80 billion and EPS of $1.22 to $1.32, signaling an expected recovery in earnings power despite ongoing cost headwinds.
- Rehabilitation hospital segment revenue growth of 15.2% driven by expansion from 35 to 38 hospitals and 9.6% increase in admissions
- Critical illness recovery hospital revenue per patient day increased 5.9% to $2,312
- Rehabilitation hospital revenue per patient day increased 6.2% to $2,311
- Outpatient rehabilitation visits increased 4.9% to 2,948,604
- Interest expense declined 8.3% for full year to $117.9 million
Forward Guidance & Outlook
Select Medical issued its 2026 business outlook, expecting revenue in the range of $5.6 billion to $5.8 billion, Adjusted EBITDA of $520.0 million to $540.0 million, and fully diluted earnings per share of $1.22 to $1.32. The outlook implies income from continuing operations, net of tax, of $228 million to $244 million, and income from continuing operations, net of tax, attributable to Select Medical of $152 million to $164 million.
SEM YoY Financials
SEM Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.