Key Takeaways Select Medical reported Q4 EPS of 16 cents, missing estimates as expenses climbed 3.2% YoY.SEM saw revenues rise 6.4% to $1.4B, led by 15.2% growth in Rehabilitation Hospital sales.Outpatient Rehabilitation EBITDA fell 57.9%, while 2026 revenues are guided at $5.6-$5.8B.Select Medical Holdings Corporation (SEM) reported fourth-quarter 2025 adjusted earnings per share (EPS) of 16 cents, which missed the Zacks Consensus Estimate by 31.6%. The bottom line declined 11.1% year over year.Net operati ...

Financial Data and Key Metrics Changes - Total revenue grew more than 6% year-over-year in Q4 2025, with full-year revenue increasing over 5% [8][10] - Adjusted EBITDA declined 10% to $104.7 million from $116 million in the prior year, with a margin decrease to 9% from 9.8% [9][10] - Earnings per common share from continuing operations was $0.16, compared to a diluted loss per common share of $0.19 in the prior year [9] Business Line Data and Key Metrics Changes - Inpatient Rehab Hospital Division revenue increased over 15% year-over-year to $339.2 million, with adjusted EBITDA rising 11% to $69.2 million [10] - Critical Illness Recovery Hospital Division revenue increased nearly 5% to $629.7 million, with adjusted EBITDA growing 5% to $66.4 million [11] - Outpatient Rehab Division revenue increased to $324.6 million, driven by nearly 5% growth in patient visits, but adjusted EBITDA fell to $11.2 million from $26.6 million [12] Market Data and Key Metrics Changes - The company added 150 beds in Q4 2025, contributing to a total of 212 rehab beds added for the full year [5][6] - The average daily census in the Inpatient Rehab Hospital Division grew nearly 10%, with occupancy improving to 82% from 81% [10] Company Strategy and Development Direction - The company is focused on expanding its inpatient rehabilitation business, with plans to add 399 beds across 2026 and 2027 [6][8] - A cash dividend of $0.0625 per share was approved, reflecting a commitment to returning value to shareholders [8] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism for the outpatient division, indicating that recent health insurance expenses were likely one-time impacts [20] - The company expects revenue for 2026 to be in the range of $5.6 billion to $5.8 billion, with adjusted EBITDA projected between $520 million and $540 million [15] Other Important Information - A non-binding proposal to take the company private is under review by a special committee of the board [4] - The company ended the quarter with $1.8 billion of debt and $26.5 million of cash on the balance sheet [13] Q&A Session Summary Question: Can you provide details on the higher health costs and their impact on the outpatient rehab business? - Management indicated that health insurance expenses impacted the outpatient division by approximately $5 million, with variable discounts adding another $6 million, totaling around $11 million [18] Question: What are the expectations for guidance going forward? - Management expressed confidence in the inpatient rehab division and cautiously optimistic outlook for outpatient improvements, indicating that the $11 million impact was likely a one-time event [20] Question: Can you elaborate on the special committee's review process? - Management stated they could not comment further on the process beyond the initial announcement [25] Question: Was there any impact from weather in Q1? - Management confirmed that there was no significant impact on inpatient divisions, but outpatient experienced some effects due to weather conditions [26] Question: Can you provide more detail on the outpatient issues and payer mix? - Management noted that the outpatient division faced challenges due to a deterioration in payer mix, impacting net revenue per visit [40]

Select Medical (NYSE:SEM) Q4 2025 Earnings call February 20, 2026 09:00 AM ET Company ParticipantsMichael Malatesta - EVP and CFOThomas Mullin - CEOConference Call ParticipantsA.J. Rice - Managing Director and Senior Health Care Equity Research AnalystAnn Hynes - Managing Director and Senior Healthcare Services Equity AnalystBen Hendrix - VP and Senior Equity Analyst in the Equity Research DivisionBill Sutherland - Director of Research and Senior Equity AnalystJoanna Gajuk - Senior Equity Research AnalystJu ...

Financial Data and Key Metrics Changes - Total revenue grew more than 6% year-over-year in Q4 2025, with full-year revenue growth exceeding 5% [6][8] - Adjusted EBITDA declined 10% to $104.7 million from $116 million in the prior year, impacted by increased health insurance expenses [7][8] - Earnings per common share from continuing operations was $0.16, compared to a diluted loss per common share of $0.19 in the prior year [7] - Adjusted earnings per common share from continuing operations was $0.16, down from $0.18 last year [8] - For the full year, adjusted EBITDA was $493.2 million, with a 9% margin, compared to $510.4 million and a 9.8% margin in 2024 [9] Business Line Data and Key Metrics Changes - Inpatient Rehab Hospital Division revenue increased over 15% year-over-year to $339.2 million, with adjusted EBITDA rising 11% to $69.2 million [9] - Critical Illness Recovery Hospital Division revenue increased nearly 5% to $629.7 million, with adjusted EBITDA growing 5% to $66.4 million [10] - Outpatient Rehab Division revenue increased to $324.6 million from $319.6 million, driven by nearly 5% growth in patient visits, but net revenue per visit declined to $98 from $102 [10][11] Market Data and Key Metrics Changes - The company added 150 beds in Q4 2025, contributing to a total of 212 rehab beds added for the full year [4] - The company expects to add 399 beds across 2026 and 2027, with several new hospitals and rehab units planned [5] Company Strategy and Development Direction - The company is focused on expanding its inpatient rehabilitation business and has a robust pipeline for growth in 2026 [20] - A cash dividend of $0.0625 per share was approved, reflecting the company's commitment to returning value to shareholders [6] - The company is evaluating strategic alternatives following a take-private proposal from its executive chairman [3] Management Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the outpatient division's recovery, attributing recent challenges to one-time factors [20] - The company anticipates a 2% increase in Medicare rates for 2026, which is expected to positively impact margins [41] - Labor costs have stabilized, and the company is focused on improving staffing levels in certain markets [66] Other Important Information - The company ended the quarter with $1.8 billion of debt and $26.5 million of cash on the balance sheet [12] - Interest expense for the quarter was $28.9 million, slightly up from the previous year [13] - The company expects capital expenditures in the range of $200 million-$220 million for 2026 [14] Q&A Session Summary Question: Can you provide details on the higher health costs and their impact on the outpatient business? - Management indicated that health insurance expenses impacted the outpatient division by approximately $5 million, with variable discounts adding around $6 million, totaling about $11 million in impact [18] Question: What are the expectations for guidance going forward? - Management expressed confidence in the inpatient rehab division and cautiously optimistic outlook for outpatient improvements, noting that the $11 million impact was likely a one-time event [20] Question: Can you elaborate on the special committee's review process? - Management stated they could not comment further on the process beyond the initial update provided [24] Question: Was there any impact from weather in Q1? - Management confirmed that there was no significant impact on inpatient divisions, but outpatient experienced some effects due to weather conditions [25] Question: Can you clarify the outpatient issues and payer mix? - Management noted that the outpatient division faced challenges due to a shift in payer mix and an uptick in managed Medicare population, which impacted net revenue per visit [39] Question: What are the expectations for margins in the outpatient division? - Management expects margins to improve year-over-year in the outpatient division, aided by regulatory changes in Medicare [43]

Select Medical (SEM) came out with quarterly earnings of $0.16 per share, missing the Zacks Consensus Estimate of $0.23 per share. This compares to earnings of $0.18 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -31.57%. A quarter ago, it was expected that this hospital and rehabilitation center operator would post earnings of $0.18 per share when it actually produced earnings of $0.23, delivering a surprise of +27.78%.Over ...

Use these links to rapidly review the document TABLE OF CONTENTS INDEX TO FINANCIAL STATEMENTS ☒ ANNUAL REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For fiscal year ended December 31, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file numbers: 001-34465 SELECT MEDICAL HOLDINGS CORPORATION (Exact name of Registrant as specified in its Charter) Delaware 20-1764048 Table of Content ...

Exhibit 99.1 FOR IMMEDIATE RELEASE 4714 Gettysburg Road Mechanicsburg, PA 17055 NYSE Symbol: SEM Select Medical Holdings Corporation Announces Results For Its Fourth Quarter and Year Ended December 31, 2025, Its 2026 Business Outlook, and Cash Dividend MECHANICSBURG, PENNSYLVANIA — February 19, 2026 — Select Medical Holdings Corporation ("Select Medical," "we," "us," or "our") (NYSE: SEM) today announced results for its fourth quarter and year ended December 31, 2025, its 2026 business outlook, and the decl ...

Core Viewpoint - Select Medical Holdings Corporation reported significant growth in revenue and income for the fourth quarter and full year ended December 31, 2025, alongside a positive business outlook for 2026 and the declaration of a cash dividend [1][2]. Financial Performance - For Q4 2025, revenue increased by 6.4% to $1,396.6 million from $1,312.6 million in Q4 2024 [1]. - Income from continuing operations before other income and expense surged by 203.1% to $63.9 million compared to $21.1 million in the prior year [1]. - Net income from continuing operations, net of tax, rose by 461.0% to $37.7 million, reversing a loss of $10.5 million in Q4 2024 [1]. - Adjusted EBITDA for Q4 2025 was $104.7 million, down from $116.0 million in Q4 2024 [1]. - Earnings per common share from continuing operations increased by 184.2% to $0.16, compared to a diluted loss per share of $0.19 in the prior year [1]. Annual Performance - For the year ended December 31, 2025, revenue grew by 5.1% to $5,452.8 million from $5,187.1 million in 2024 [1]. - Income from continuing operations before other income and expense increased by 25.3% to $336.2 million compared to $268.3 million in 2024 [1]. - Net income from continuing operations, net of tax, increased by 65.0% to $214.5 million from $130.0 million in the prior year [1]. - Adjusted EBITDA for the year was $493.2 million, down from $510.4 million in 2024 [1]. - Earnings per common share from continuing operations, net of tax, increased by 127.5% to $1.16, compared to $0.51 in 2024 [1]. Segment Performance - Critical Illness Recovery Hospital Segment: Q4 revenue increased by 4.9% to $629.7 million, with adjusted EBITDA rising by 5.3% to $66.4 million [2]. - Rehabilitation Hospital Segment: Q4 revenue increased by 15.2% to $339.2 million, with adjusted EBITDA increasing by 11.1% to $69.2 million [2]. - Outpatient Rehabilitation Segment: Q4 revenue increased by 1.6% to $324.6 million, but adjusted EBITDA fell to $11.2 million from $26.6 million in the prior year [2]. Business Outlook - For 2026, Select Medical expects revenue to be between $5.6 billion and $5.8 billion, with adjusted EBITDA projected between $520.0 million and $540.0 million [3]. - Fully diluted earnings per share are anticipated to range from $1.22 to $1.32 [3]. Dividend and Stock Repurchase - A cash dividend of $0.0625 per share was declared, payable on or about March 12, 2026 [2]. - The company authorized a stock repurchase program of up to $1.0 billion, with $96.5 million spent on repurchasing 6,375,512 shares in 2025 [2].

PHILADELPHIA EAGLES RENEW DEAL WITH SELECT MEDICAL NAMING NOVACARE REHABILITATION THE TEAM'S OFFICIAL PHYSICAL THERAPY PARTNER [Accessibility Statement] Skip NavigationMECHANICSBURG, Pa., Feb. 17, 2026 /PRNewswire/ -- Select Medical Corporation ("Select Medical") and the Philadelphia Eagles have announced a multi-year extension of its longstanding 25-year partnership naming NovaCare Rehabilitation as the team's Official Physical Therapy Partner."We are proud to continue our longstanding founding partner rel ...

Select Medical Holdings Corporation to Announce Fourth Quarter and Full Year 2025 Results and Business Outlook on Thursday, February 19, 2026 [Accessibility Statement] Skip NavigationMECHANICSBURG, Pa., Feb. 17, 2026 /PRNewswire/ -- Select Medical Holdings Corporation ("Select Medical") (NYSE: SEM), will release the financial results for its fourth quarter and full year ended December 31, 2025 on Thursday, February 19, 2026 after the market closes.Select Medical will host a conference call regarding its fou ...