Select Medical Holdings Corporation (SEM) Q3 2025 Earnings Call Transcript
Consolidated Revenue Revenue grew over 7% to $1.36 billion compared to $1.27 billion in the prior year. The increase was driven by growth across various segments.
Adjusted EBITDA Adjusted EBITDA increased over 7% to $111.7 million, up from $103.9 million. This reflects improved operational performance.
Earnings Per Common Share Earnings per common share from continuing operations rose over 21% to $0.23 compared to $0.19 per share in the same quarter last year. The increase was due to higher revenue and operational efficiencies.
Inpatient Rehab Hospital Revenue Revenue increased 16% year-over-year to $328.6 million. The growth was driven by a 5% increase in revenue per patient day and an 11% rise in the average daily census.
Inpatient Rehab Hospital Adjusted EBITDA Adjusted EBITDA was up 13% to $68 million. However, the adjusted EBITDA margin declined slightly to 20.7% from 21.3%.
Outpatient Rehab Revenue Revenue increased 4% to $325.4 million, driven by over 5% growth in patient visits. However, net revenue per visit decreased to $100 from $101 due to a reduction in Medicare reimbursement and an unfavorable shift in payer mix.
Outpatient Rehab Adjusted EBITDA Adjusted EBITDA decreased over 14% to $24.2 million, with margin declining from 9.1% to 7.4%. This was due to lower net revenue per visit and increased costs.
Critical Illness Recovery Hospital Revenue Revenue increased over 4% to $609.9 million. The growth was supported by a 2.1% increase in admissions.
Critical Illness Recovery Hospital Adjusted EBITDA Adjusted EBITDA rose over 10% to $56.1 million, up from $50.8 million in the same quarter last year. The adjusted EBITDA margin increased to 9.2% from 8.7%.
Debt Outstanding At the end of the quarter, the company had $1.8 billion of debt outstanding, including $1.04 billion in term loans, $150 million in revolving loans, and $550 million in senior notes.
Cash Flow from Operating Activities Cash flow from operating activities was $175.3 million, reflecting strong operational cash generation.
Days Sales Outstanding (DSO) DSO from continuing operations was 56 days at September 30, 2025, compared to 60 days at September 30, 2024, indicating improved collections.
Trade with 70% Backtested Accuracy
Analyst Views on SEM
About SEM
About the author
Select Medical (SEM) to Release Q4 and Full Year 2025 Financial Results on February 19, 2026
- Earnings Release Schedule: Select Medical will release its Q4 and full year 2025 financial results after market close on February 19, 2026, providing investors with critical financial data and operational performance insights.
- Conference Call Details: The company will host a conference call on February 20, 2026, at 9:00 AM ET to discuss the financial results in detail and offer an opportunity for investor questions.
- Business Scale Overview: As of December 31, 2025, Select Medical operates 104 critical illness recovery hospitals, 38 rehabilitation hospitals, and 1,917 outpatient rehabilitation clinics across the U.S., highlighting its extensive footprint and market leadership in the healthcare sector.
- Diverse Business Structure: Select Medical's reportable segments include critical illness recovery hospitals, rehabilitation hospitals, and outpatient rehabilitation, showcasing its robust capabilities and adaptability in the diversified healthcare services market.
Select Medical Holdings Under Investigation for Potential Securities Violations
- Investigation Launched: Kaskela Law LLC has initiated an investigation into Select Medical Holdings Corporation to determine whether the company and its officers violated securities laws or breached fiduciary duties, potentially impacting shareholder rights.
- Shareholder Rights Protection: This investigation focuses on recent corporate actions by Select Medical, encouraging shareholders to contact the law firm to understand their legal rights and options, highlighting concerns over corporate governance.
- Legal Consultation Channels: Kaskela Law LLC offers multiple contact methods, including phone and email, aimed at providing necessary legal support to shareholders to ensure their rights in potential legal issues are protected.
- Investor Representation: The law firm specializes in securities fraud, corporate governance, and merger & acquisition litigation, indicating its commitment to providing robust legal support for investors and safeguarding shareholder interests.
Select Medical Holdings Shares Surge 12% Following Take-Private Proposal from Executive Chairman
Stock Performance: Select Medical Holdings Corporation (SEM) shares rose 12.35% to $15.74 following a buyout proposal from Executive Chairman Robert A. Ortenzio, who offered to acquire shares for $16.00 to $16.20 in cash.
Proposal Details: Ortenzio's acquisition proposal was filed publicly on November 24, 2025, and the board's independent members are currently consulting advisors to evaluate the offer.
Market Reaction: The announcement led to unusually high trading volume for SEM as investors reacted to the potential buyout scenario.
Cautionary Note: The company has stated that there is no guarantee the deal will proceed and will keep shareholders updated as necessary.
SEM Surpasses Important Moving Average Threshold
- 52 Week Range: SEM's stock has a 52-week low of $11.65 and a high of $21.36, with the last trade recorded at $16.29.
- Dividend Stocks: There is a mention of other dividend stocks that have recently crossed above their 200-day moving average.
- Author's Views: The opinions expressed in the article are solely those of the author and do not necessarily represent Nasdaq, Inc.
- Market Analysis: The information provided includes a brief analysis of SEM's stock performance within the context of the market.
Select Medical co-founder offers to acquire all shares and privatize the company.
Take-Private Proposal: Select Medical (SEM) received a non-binding proposal from executive chairman Robert A. Ortenzio to acquire all shares for $16.00 to $16.20 each.
Board Review: The disinterested members of SEM's Board of Directors are evaluating the proposal with advisors to ensure the best interests of the company and its shareholders.
Stock Price Reaction: Following the announcement, SEM's stock price increased by approximately 7% during after-market trading.
Financial Performance: Select Medical reported a Q3 2025 revenue target of $5.3B–$5.5B, with a non-GAAP EPS of $0.23, exceeding expectations.
Select Medical (SEM) Receives $16.00 to $16.20 Acquisition Proposal from Chairman
- Acquisition Proposal: Select Medical's Executive Chairman Robert A. Ortenzio has proposed a cash acquisition offer ranging from $16.00 to $16.20 per share, indicating a recognition of the company's value and potentially influencing shareholder investment decisions.
- Board Review: The Board of Directors of Select Medical is carefully reviewing the proposal in consultation with advisors, ensuring actions align with the best interests of the company and its shareholders, reflecting transparency and accountability in corporate governance.
- Market Reaction: The public announcement of the proposal may trigger increased market attention on Select Medical's stock, prompting investors to reassess their positions in healthcare sector equities.
- Future Uncertainty: Despite the proposal being made, Select Medical has not guaranteed that a transaction will occur, leaving the outcome uncertain, which could affect investor confidence and market expectations.
Select Medical (SEM) to Release Q4 and Full Year 2025 Financial Results on February 19, 2026
- Earnings Release Schedule: Select Medical will release its Q4 and full year 2025 financial results after market close on February 19, 2026, providing investors with critical financial data and operational performance insights.
- Conference Call Details: The company will host a conference call on February 20, 2026, at 9:00 AM ET to discuss the financial results in detail and offer an opportunity for investor questions.
- Business Scale Overview: As of December 31, 2025, Select Medical operates 104 critical illness recovery hospitals, 38 rehabilitation hospitals, and 1,917 outpatient rehabilitation clinics across the U.S., highlighting its extensive footprint and market leadership in the healthcare sector.
- Diverse Business Structure: Select Medical's reportable segments include critical illness recovery hospitals, rehabilitation hospitals, and outpatient rehabilitation, showcasing its robust capabilities and adaptability in the diversified healthcare services market.
Select Medical Holdings Under Investigation for Potential Securities Violations
- Investigation Launched: Kaskela Law LLC has initiated an investigation into Select Medical Holdings Corporation to determine whether the company and its officers violated securities laws or breached fiduciary duties, potentially impacting shareholder rights.
- Shareholder Rights Protection: This investigation focuses on recent corporate actions by Select Medical, encouraging shareholders to contact the law firm to understand their legal rights and options, highlighting concerns over corporate governance.
- Legal Consultation Channels: Kaskela Law LLC offers multiple contact methods, including phone and email, aimed at providing necessary legal support to shareholders to ensure their rights in potential legal issues are protected.
- Investor Representation: The law firm specializes in securities fraud, corporate governance, and merger & acquisition litigation, indicating its commitment to providing robust legal support for investors and safeguarding shareholder interests.
Select Medical Holdings Shares Surge 12% Following Take-Private Proposal from Executive Chairman
Stock Performance: Select Medical Holdings Corporation (SEM) shares rose 12.35% to $15.74 following a buyout proposal from Executive Chairman Robert A. Ortenzio, who offered to acquire shares for $16.00 to $16.20 in cash.
Proposal Details: Ortenzio's acquisition proposal was filed publicly on November 24, 2025, and the board's independent members are currently consulting advisors to evaluate the offer.
Market Reaction: The announcement led to unusually high trading volume for SEM as investors reacted to the potential buyout scenario.
Cautionary Note: The company has stated that there is no guarantee the deal will proceed and will keep shareholders updated as necessary.
SEM Surpasses Important Moving Average Threshold
- 52 Week Range: SEM's stock has a 52-week low of $11.65 and a high of $21.36, with the last trade recorded at $16.29.
- Dividend Stocks: There is a mention of other dividend stocks that have recently crossed above their 200-day moving average.
- Author's Views: The opinions expressed in the article are solely those of the author and do not necessarily represent Nasdaq, Inc.
- Market Analysis: The information provided includes a brief analysis of SEM's stock performance within the context of the market.
Select Medical co-founder offers to acquire all shares and privatize the company.
Take-Private Proposal: Select Medical (SEM) received a non-binding proposal from executive chairman Robert A. Ortenzio to acquire all shares for $16.00 to $16.20 each.
Board Review: The disinterested members of SEM's Board of Directors are evaluating the proposal with advisors to ensure the best interests of the company and its shareholders.
Stock Price Reaction: Following the announcement, SEM's stock price increased by approximately 7% during after-market trading.
Financial Performance: Select Medical reported a Q3 2025 revenue target of $5.3B–$5.5B, with a non-GAAP EPS of $0.23, exceeding expectations.
Select Medical (SEM) Receives $16.00 to $16.20 Acquisition Proposal from Chairman
- Acquisition Proposal: Select Medical's Executive Chairman Robert A. Ortenzio has proposed a cash acquisition offer ranging from $16.00 to $16.20 per share, indicating a recognition of the company's value and potentially influencing shareholder investment decisions.
- Board Review: The Board of Directors of Select Medical is carefully reviewing the proposal in consultation with advisors, ensuring actions align with the best interests of the company and its shareholders, reflecting transparency and accountability in corporate governance.
- Market Reaction: The public announcement of the proposal may trigger increased market attention on Select Medical's stock, prompting investors to reassess their positions in healthcare sector equities.
- Future Uncertainty: Despite the proposal being made, Select Medical has not guaranteed that a transaction will occur, leaving the outcome uncertain, which could affect investor confidence and market expectations.
