SELECT MEDICAL HOLDINGS CORP (SEM) FY2025 10-K Annual Report
SELECT MEDICAL HOLDINGS CORP (SEM) 10-K annual report for fiscal year 2025, filed with SEC EDGAR on Feb 19, 2026. This page provides AI-powered analysis including business overview, management discussion & analysis (MD&A), risk factors, and key financial data such as revenue, net income, gross margin, operating margin, and return on equity (ROE) extracted from XBRL.
SELECT MEDICAL HOLDINGS CORP FY2025 10-K Analysis
Business Overview
- • Core business model: Operates critical illness recovery hospitals, rehabilitation hospitals, and outpatient rehabilitation clinics across 39 states plus DC
- • Discontinued Concentra business via tax-free distribution in November 2024, reflected as discontinued operations for FY2025
- • Received non-binding acquisition proposal for a take-private transaction at $16.00-$16.20/share from Executive Chairman in late 2025
- • Operated 104 critical illness recovery hospitals, 38 rehabilitation hospitals, and 1,917 outpatient clinics as of December 31, 2025
- • Revenue growth slowed to $5.45B in 2025 after divestiture; net income attributable to common stockholders dropped to $146.2M in 2025 from $214M in 2024
Management Discussion & Analysis
- • Revenue $5,452.8M for 2025, up 5.1% YoY from $5,187.1M in 2024 and $4,826.0M in 2023
- • Adjusted EBITDA $493.2M in 2025, down 3.4% YoY from $510.4M in 2024 and up 10.5% from $446.1M in 2023; margin 9.0% in 2025 vs 9.8% in 2024
- • Best performing segment rehab hospital with revenue $1,288.9M (+16.1%), Adjusted EBITDA $278.6M (+13.4%), margin 21.6%
- • Worst performing segment outpatient rehab with revenue $1,284.9M (+2.8%), Adjusted EBITDA $90.2M (-17.0%), margin 7.0%
- • Net income from continuing operations $214.5M in 2025 vs $130.0M in 2024 and $110.5M in 2023; income growth impacted by debt retirement losses in 2024 and 2023
- • Capital allocation details not explicitly stated; tax-free spin-off of Concentra completed Nov 2024, no longer owned
- • Regulatory risks from Medicaid funding cuts up to $1 trillion (2025-2034) under OBBBA; potential reimbursement rate cuts and timing uncertainty
- • Medicare payment rate increases for critical illness recovery hospitals for FY 2026: standard federal rate $50,825 vs $49,383 in FY 2025; holds telehealth policy expansions through 2025 with some permanent changes
Risk Factors
- • Regulatory reimbursement risk from CMS Transmittal 12594 raising LTCH outlier reconciliation CCR threshold to 20%, effective Oct 1, 2025, increasing outlier payment recoupments
- • Macroeconomic impact of Medicare payment updates: FY2026 IRF standard payment factor $19,371, up 2.4% vs FY2025, with outlier threshold dropped to $10,141
- • Operational exposure to changes in MPFS therapy payments, including a -2.5% efficiency adjustment on non-time-based codes affecting physical/occupational therapy revenue
- • Competitive risk from specialty rehabilitation hospitals with 50% Medicare patient days, amid industry-wide reimbursement and regulatory shifts
- • Financial risk from insurance programs liability with accrued losses of $143.6M at Dec 31, 2025, including unknown future claim frequency and severity changes
SELECT MEDICAL HOLDINGS CORP FY2025 Key Financial MetricsXBRL
Revenue
$5.5B
▲ +5.1% YoY
Net Income
$146M
▼ -31.7% YoY
Operating Margin
6.2%
▲ +99bp YoY
Net Margin
2.7%
▼ -144bp YoY
ROE
8.6%
▼ -416bp YoY
Total Assets
$5.9B
▲ +4.3% YoY
EPS (Diluted)
$1.16
▼ -30.1% YoY
Operating Cash Flow
$346M
▼ -33.1% YoY
Source: XBRL data from SELECT MEDICAL HOLDINGS CORP FY2025 10-K filing on SEC EDGAR. All figures in USD.
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