Select Medical Q4 EPS Drops 11.1% to $0.16, Expenses Up 3.2%
Select Medical posted Q4 adjusted EPS of $0.16, missing estimates by 31.6% as expenses rose 3.2% to $1.3 billion and EBITDA fell 9.8% to $104.7 million. Revenue grew 6.4% to $1.4 billion, driven by a 15.2% gain in rehabilitation hospital sales offset by a 57.9% plunge in outpatient rehab EBITDA.
1. Q4 Financial Results
Select Medical posted adjusted EPS of $0.16 in Q4 2025, missing estimates by 31.6% and declining 11.1% from year-ago levels on $1.4 billion in operating revenues, which beat consensus by 2.6%. Rising total costs of $1.3 billion, up 3.2%, contributed to a 9.8% drop in adjusted EBITDA to $104.7 million, short of the $126.7 million target.
2. Segment Breakdown
Critical Illness Recovery Hospital revenues rose 4.9% to $629.7 million on a 3% admissions gain and flat occupancy, though adjusted EBITDA missed estimates. Rehabilitation Hospital revenue surged 15.2% to $339.2 million with occupancy up 120 bps, and outpatient rehab revenues climbed 1.6% to $324.6 million despite a 57.9% plunge in EBITDA due to a 3.9% drop in revenue per visit.
3. Balance Sheet and Outlook
Cash and equivalents fell 55.6% to $26.5 million while long-term debt rose 6.6% to $1.8 billion. Management authorized a $0.0625 dividend per share, repurchased $96.5 million in stock, and guided 2026 revenues of $5.6–5.8 billion, EBITDA of $520–540 million and EPS of $1.22–1.32.