SELECT MEDICAL HOLDINGS (SEM)

• For Q4 2025, Select Medical Holdings reported total revenue growth of more than 6% year-over-year, but adjusted EBITDA declined 10% to $104.7 million. For the full year 2025, revenue grew more than 5%, and adjusted earnings per share from continuing operations was $1.16, up from $0.94 in the prior year.
• The company has issued a business outlook for 2026, expecting revenue to be in the range of $5.6 billion-$5.8 billion, adjusted EBITDA between $520 million-$540 million, and fully diluted earnings per common share between $1.22-$1.32.
• A non-binding take-private proposal was received on November 24th, 2025, and is currently under review by a special committee of the board of directors. This process has put share repurchases on hold.
• The decline in adjusted EBITDA for Q4 2025 was partly attributed to an approximate $15 million increase in health insurance expense across the company and softness in the outpatient division, which experienced lower net revenue per visit, variable discounts, and an unfavorable shift in payer mix. The company's primary focus remains on growing its inpatient rehab division, having added 212 rehab beds in 2025 and expecting to add 399 beds across 2026 and 2027.

• Select Medical Holdings reported Q4 2025 revenue growth of over 6% year-over-year, reaching $1.29 billion (calculated from $104.7M Adj EBITDA / 10% decline from $116M prior year, and total revenue growing more than 6% year-over-year , and segment revenues: Inpatient Rehab Hospital Division $339.2 million , Critical Illness Recovery Hospital Division $629.7 million , Outpatient Rehab Division $324.6 million , sum is $1293.5 million). However, Adjusted EBITDA declined 10% to $104.7 million. For the full year 2025, revenue grew more than 5%, and Adjusted EBITDA was $493.2 million.
• The company provided its 2026 business outlook, projecting revenue in the range of $5.6 billion-$5.8 billion, Adjusted EBITDA between $520 million-$540 million, and fully diluted earnings per common share between $1.22-$1.32.
• A non-binding take-private proposal was received on November 24th, 2025, which is currently under review by a special committee of the board, leading to a hold on share repurchase activity.
• Operational expansion continued with 150 beds added in Q4 2025 and a total of 212 rehab beds added for the full year 2025. The company anticipates adding 399 beds across 2026 and 2027. Q4 Adjusted EBITDA was negatively impacted by an approximate $15 million increase in health insurance expense company-wide and specific challenges in the Outpatient Rehab Division, including a $6 million impact from variable discounts.

• Q4 2025 revenue grew over 6% year-over-year, with full-year 2025 revenue increasing over 5%.
• Q4 2025 Adjusted EBITDA declined 10% to $104.7 million, impacted by a $15 million increase in health insurance expense across the company and significant weakness in the Outpatient Rehab Division, which saw its Adjusted EBITDA drop to $11.2 million from $26.6 million in the prior year.
• The company issued 2026 guidance, forecasting revenue in the range of $5.6 billion-$5.8 billion, Adjusted EBITDA between $520 million-$540 million, and fully diluted EPS of $1.22-$1.32.
• A cash dividend of $0.0625 per share was approved, payable on March 12, 2026, and a non-binding take-private proposal received on November 24th is currently under review by a special committee of the board.

• Select Medical Holdings Corporation reported Q4 2025 revenue of $1,396.6 million, a 6.4% increase year-over-year, with earnings per common share from continuing operations of $0.16. For the full year ended December 31, 2025, revenue increased 5.1% to $5,452.8 million, and earnings per common share from continuing operations rose 127.5% to $1.16.
• The company issued its business outlook for 2026, expecting revenue in the range of $5.6 billion to $5.8 billion, Adjusted EBITDA between $520.0 million and $540.0 million, and fully diluted earnings per share from $1.22 to $1.32.
• On November 24, 2025, Robert A. Ortenzio, the Executive Chairman, Co-Founder, and Director, submitted a non-binding proposal to acquire all outstanding shares for $16.00 to $16.20 per share, which is currently being reviewed by an independent special committee.
• A cash dividend of $0.0625 per share was declared on February 12, 2026. During the year ended December 31, 2025, the company repurchased 6,375,512 shares for approximately $96.5 million, at an average cost of $15.13 per share.

• Select Medical Holdings Corporation reported a 6.4% increase in revenue to $1,396.6 million for the fourth quarter ended December 31, 2025, and a 5.1% increase to $5,452.8 million for the full year 2025.
• Income from continuing operations, net of tax, rose significantly by 461.0% to $37.7 million in Q4 2025 and by 65.0% to $214.5 million for the full year 2025.
• Diluted earnings per common share from continuing operations increased to $0.16 for Q4 2025 and $1.16 for the full year 2025.
• The company provided a 2026 Adjusted EBITDA outlook ranging from $520 million to $540 million.
• On November 24, 2025, the Executive Chairman made a non-binding proposal to acquire all outstanding shares for $16.00 to $16.20 per share, which is currently under review by an independent special committee.

• Concentra reported strong third quarter 2025 results, with revenue increasing 17.0% to $572.8 million and Adjusted EBITDA increasing 17.1% to $118.9 million compared to Q3 2024.
• The company raised its full-year 2025 guidance, now expecting revenue in the range of $2.145 billion to $2.160 billion and Adjusted EBITDA between $425 million and $430 million.
• Concentra declared a cash dividend of $0.0625 per share payable on or about December 9, 2025, and authorized a share repurchase program of up to $100 million.
• As of September 30, 2025, the company's net leverage ratio was 3.6x, with a target of 3.5x or below by the end of 2025.

• Select Medical Holdings Corporation reported Q3 2025 consolidated revenue of $1.36 billion, an increase of over 7% year-over-year, with adjusted EBITDA growing over 7% to $111.7 million, and earnings per common share from continuing operations rising over 21% to $0.23.
• The company reaffirmed its 2025 revenue guidance of $5.3 billion to $5.5 billion and adjusted EBITDA guidance of $510 million to $530 million, while increasing its earnings per common share estimate to $1.14 to $1.24.
• A favorable revenue adjustment from the deferment of the CMS 20% transmittal rule contributed a net impact of $12 million to $15 million to EBITDA in Q3 2025.
• Select Medical acquired a 30-bed critical illness recovery hospital and three outpatient clinics in Q3 2025, and plans to add 395 inpatient rehabilitation beds by the first half of 2027. The Board also approved a cash dividend of $0.0625 per share payable on November 25, 2025.

• Select Medical Holdings Corporation reported Q3 2025 consolidated revenue of $1.36 billion and Adjusted EBITDA of $111.7 million, both increasing over 7% year-over-year, with earnings per common share rising over 21% to $0.23.
• The Centers for Medicare & Medicaid Services (CMS) deferred the expanded Medicare outlier reconciliation criteria (20% transmittal rule) to apply on or after October 1, 2025, which resulted in a favorable Q3 2025 revenue adjustment and a $12 million to $15 million net impact on EBITDA for the quarter.
• The company is actively expanding its inpatient rehabilitation segment, planning to add 395 beds by the first half of 2027 through new openings and strategic additions, including a 32-bed hospital with Cleveland Clinic and a 45-bed facility in Temple, Texas by year-end.
• Select Medical reaffirmed its 2025 revenue guidance of $5.3 billion to $5.5 billion and Adjusted EBITDA guidance of $510 million to $530 million, while increasing its EPS estimate to $1.14 to $1.24.
• The outpatient rehabilitation division experienced softness, with Adjusted EBITDA decreasing over 14% to $24.2 million and margin declining to 7.4%, primarily due to Medicare reimbursement reductions and an unfavorable shift in payer mix.

• Select Medical Holdings Corporation reported Q3 2025 consolidated revenue of $1.36 billion, an increase of over 7% year-over-year, and Adjusted EBITDA of $111.7 million, also up over 7%.
• The company's earnings per common share from continuing operations rose over 21% to $0.23 for Q3 2025.
• The Centers for Medicare & Medicaid Services (CMS) deferred the 20% transmittal rule, resulting in a favorable revenue adjustment and a $12 million-$15 million net impact to EBITDA in Q3 2025.
• Select Medical reaffirmed its 2025 revenue guidance of $5.3 billion-$5.5 billion and Adjusted EBITDA guidance of $510 million-$530 million, while increasing its EPS estimate to $1.14-$1.24.
• The company plans to add 395 inpatient rehabilitation beds by the first half of 2027 and approved a cash dividend of $0.0625 per share payable on November 25, 2025.

• Select Medical Holdings Corporation reported Q3 2025 revenue of $1,363.4 million, an increase of 7.2% compared to the prior year, and earnings per common share from continuing operations of $0.23, up 21.1%.
• For the nine months ended September 30, 2025, revenue increased 4.7% to $4,056.2 million, and earnings per common share from continuing operations rose 44.9% to $1.00.
• The Board of Directors declared a cash dividend of $0.0625 per share, payable on or about November 25, 2025, to stockholders of record as of November 12, 2025.
• The company updated its 2025 business outlook, increasing its fully diluted earnings per share expectation to a range of $1.14 to $1.24, while reaffirming revenue guidance of $5.3 billion to $5.5 billion and Adjusted EBITDA of $510.0 million to $530.0 million.
• The results for the three and nine months ended September 30, 2024, exclude the results of Concentra, which were presented as discontinued operations following its tax-free distribution on November 25, 2024.

Q3 and Nine Months Financial Performance

Fiscal Year 2025 Business Outlook