Select Medical Agrees $16.50 Share Merger, Q1 Revenue Climbs 5% to $1.42B
Select Medical Holdings Corporation reported Q1 revenue of $1,421.5 million, up 5.0% year-over-year, while net income fell to $63.8 million and adjusted EBITDA declined to $141.6 million. It entered a merger agreement valuing shares at $16.50 in cash, expected to close in mid-2026.
1. Q1 Financial Performance
For the quarter ended March 31, 2026, Select Medical generated $1,421.5 million in revenue, a 5.0% increase from $1,353.2 million a year earlier. Income from operations declined to $98.4 million from $112.7 million, net income fell to $63.8 million from $74.7 million, and adjusted EBITDA decreased to $141.6 million from $151.4 million.
2. Merger Agreement
On March 2, 2026, Select Medical entered into a definitive merger agreement with a consortium led by Welsh, Carson, Anderson & Stowe, under which each share will convert into the right to receive $16.50 in cash. The agreement lacks a financing condition, and the company anticipates closing the transaction in mid-2026, subject to regulatory and shareholder approvals.
3. Dividend Declaration
On April 29, 2026, the board declared a cash dividend for common shareholders, reinforcing the company’s commitment to returning capital, with details to be provided upon record date determination.