Selectis Health Reports $6.5 Million Net Income Turnaround in Latest Quarter

Selectis Health, Inc. reported a significant financial turnaround in its latest quarterly results, with a net income of $6.5 million for the three months ended March 31, 2026, compared to a net loss of $655,969 during the same period in 2025. This improvement was largely driven by a gain on the sale of assets amounting to $8.9 million, attributed to the sale of two skilled nursing facilities in Georgia. Total revenue for the quarter was $7.3 million, a decrease of 30% from $10.5 million in the prior year, primarily due to the divestiture of these facilities.

The company's total expenses also decreased to $8.6 million from $10.9 million year-over-year, reflecting a reduction in property taxes, insurance, and other operating costs, which fell by 25% to $6.1 million. General and administrative expenses decreased by 10% to $2.1 million, while the provision for credit losses dropped significantly by 80% to $20,357, indicating improved collection efforts. Despite these reductions, Selectis reported a loss from operations of $1.3 million, compared to a loss of $421,746 in the previous year.

In terms of strategic developments, Selectis Health executed two significant asset sales during the quarter, which included the aforementioned facilities in Georgia. The company has been actively managing its portfolio, with total assets held for sale increasing to $5.5 million as of March 31, 2026, up from $4.0 million at the end of 2025. The company’s total assets decreased to $30.0 million from $32.6 million, while total liabilities also saw a reduction to $29.8 million from $38.8 million, primarily due to the repayment of debt associated with the sold facilities.

Operationally, Selectis Health's customer base and facility count have been impacted by these sales, with the company now owning ten long-term care facilities across the Midwest and Southeastern U.S. The company reported cash and cash equivalents of $1.3 million, alongside restricted cash of $192,129, indicating a need for improved liquidity management. The company’s accumulated deficit has narrowed to $14.7 million from $21.2 million, reflecting the positive impact of the recent asset sales on its financial position.

Looking ahead, Selectis Health's management has expressed a commitment to enhancing liquidity and profitability through various strategies, including increasing occupancy rates in its facilities, controlling operating expenses, and potentially seeking additional capital through debt or equity offerings. However, the company has acknowledged substantial doubt regarding its ability to continue as a going concern, emphasizing the importance of executing its strategic plans effectively over the next twelve months.