Selectis Health Reports 9% Revenue Growth but Faces $308K Net Loss in Q2 2025

Selectis Health, Inc. reported its financial results for the second quarter of 2025, revealing a total revenue of $10.4 million, a slight increase of 9% from $9.6 million in the same period last year. The growth was primarily driven by a rise in healthcare revenue, which reached $10.4 million, up from $9.4 million in the prior year, attributed to increased Medicaid reimbursement rates at its facilities in Georgia and Oklahoma. However, the company did not generate any rental revenue during the quarter, a significant decline from $161,026 in the previous year, following the sale of its Archway Property in June 2024.

Despite the revenue increase, Selectis Health reported a net loss of $308,027 for the quarter, compared to a net income of $794,344 in the same period last year. The loss was influenced by higher operating expenses, which totaled $10.9 million, up from $10.3 million in the prior year. Notably, property taxes, insurance, and other operating expenses rose by 10% due to inflationary pressures. The company also recorded a decrease in general and administrative expenses, which fell by 8% to $2.2 million, reflecting reduced professional service costs.

For the first half of 2025, Selectis Health's total revenue was $20.9 million, a 10% increase from $19.1 million in the same period of 2024. The net loss for the six months ended June 30, 2025, was approximately $964,000, compared to a loss of $240,000 in the previous year. The company’s total expenses for the first half increased to $21.8 million, driven by higher property taxes and operating costs. The company’s accumulated deficit also widened to $21.2 million as of June 30, 2025, from $20.2 million at the end of 2024.

Selectis Health continues to face challenges related to its liquidity, reporting a working capital deficiency of approximately $17.2 million. The company had cash and cash equivalents of $559,983 and restricted cash of $771,940 as of June 30, 2025. Management has expressed substantial doubt about the company's ability to continue as a going concern, emphasizing the need for strategic initiatives to improve liquidity and profitability. These initiatives include increasing occupancy rates in its facilities, controlling operating expenses, and seeking additional capital through debt or equity financing.

Looking ahead, Selectis Health is focused on executing its business strategy to enhance revenue and reduce costs. The company is also exploring opportunities for geographic expansion and potential acquisitions to strengthen its market position. However, the successful implementation of these strategies remains uncertain, and the company acknowledges that failure to improve its financial condition could adversely affect its operations in the future.