Select Medical reports Q1 revenue growth but lower profits; merger plans announced with $16.50/share cash offer.

Select Medical Holdings reported a 5% revenue increase to $1.42 billion in Q1 2026 but saw net income decline to $63.8 million from $74.7 million the prior year. The company announced a merger agreement with an investment fund consortium, offering $16.50 per share in cash, pending regulatory and shareholder approvals, expected mid-2026. Despite profit pressures, Select Medical maintains its 2026 revenue outlook of $5.6-$5.8 billion and adjusted EBITDA of $520-$540 million. A $0.0625 per share dividend was declared, payable in May.