Selectis Health Reports 12% Revenue Growth to $10.5 Million in Q1 2025

Selectis Health, Inc. reported its financial results for the first quarter of 2025, revealing a total revenue of $10.5 million, a 12% increase from $9.3 million in the same period last year. The growth in revenue was primarily driven by an increase in healthcare revenue, which rose to $10.5 million from $9.3 million, attributed to higher Medicaid reimbursement rates at its facilities in Georgia and Oklahoma. However, the company reported a net loss of $0.7 million for the quarter, an improvement from a net loss of $1.0 million in the first quarter of 2024. The loss per share attributable to common stockholders was $0.22, compared to $0.34 in the prior year.

In terms of operational metrics, Selectis Health's total current assets increased to $4.7 million as of March 31, 2025, up from $3.5 million at the end of 2024. The company’s cash and cash equivalents also saw a significant rise, reaching $1.3 million compared to $680,332 at the end of the previous year. However, total liabilities increased to $40.6 million from $38.9 million, with current liabilities rising to $21.5 million, reflecting higher accounts payable and accrued liabilities. The accumulated deficit grew to $20.9 million from $20.2 million, indicating ongoing challenges in achieving profitability.

Selectis Health is actively pursuing strategic initiatives to enhance its financial position. The company has entered into Purchase and Sale Agreements to sell four skilled nursing facilities in Georgia for a total of $27 million, which is expected to close in 2025. This divestiture is part of a broader strategy to streamline operations and focus on more profitable segments. The company also reported a significant increase in cash provided by operating activities, which rose to $1.0 million from $249,495 in the prior year, indicating improved cash flow management.

The company’s operational focus remains on increasing occupancy rates in its facilities and controlling operating expenses. As of March 31, 2025, Selectis Health operated twelve long-term care facilities, with plans for further geographic expansion. The company is also exploring additional capital through debt or equity offerings to bolster its liquidity, which is critical given its working capital deficiency of $16.8 million. Management has expressed that the ability to continue as a going concern is contingent upon successfully executing its strategic plans and improving financial performance.

Looking ahead, Selectis Health aims to enhance its revenue streams and reduce costs while navigating the complexities of the healthcare market. The company acknowledges the uncertainties surrounding its ability to maintain operations without additional funding and is committed to implementing measures to improve its financial health. The management's outlook emphasizes the importance of increasing occupancy and Medicaid reimbursement rates, alongside potential asset sales, to stabilize the company's financial footing in the coming months.