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Select Medical Holdings Corp (SEM) Q4 2025 Earnings Call Transcript

Select Medical disclosed that its Board is evaluating a non‑binding take‑private proposal from the Executive Chairman, adding strategic uncertainty to the near‑term outlook. Fourth‑quarter revenue grew more than 6% year‑over‑year, but adjusted EBITDA dropped 10% to $104.7 million, driven by an unexpected $15 million health‑insurance expense and $6 million variable discounts in outpatient rehab. Outpatient margins fell to 3.4% as Medicare reimbursement and payer‑mix pressures persisted, while inpatient rehab showed strong occupancy and revenue growth. The company projected 2026 revenue of $5.6‑$5.8 billion and highlighted continued bed‑additions and AI pilots in billing.