Selectis Health Reports 54.7% Revenue Decline but Achieves Net Income Turnaround in Q2 2026

Selectis Health, Inc. reported significant financial changes in its latest 10-Q filing for the quarter ending June 30, 2026. The company generated total revenue of $4.73 million for the three months ended June 30, 2026, a decrease of 54.7% from $10.44 million in the same period last year. For the six months, revenue fell to $12.02 million from $20.93 million, marking a 42.5% decline. The drop in revenue is primarily attributed to the sale of four Georgia facilities, which significantly impacted healthcare revenue, which decreased to $4.62 million from $10.44 million year-over-year.

Despite the decline in revenue, Selectis Health reported a net income of $8.12 million for the second quarter of 2026, a substantial turnaround from a net loss of $0.31 million in the same quarter of 2025. This positive shift was largely driven by a gain on the sale of assets amounting to $10.15 million. For the first half of 2026, the company recorded a net income of $14.65 million, compared to a net loss of $0.96 million in the prior year. The company’s accumulated deficit improved to $6.61 million from $21.24 million at the end of 2025.

Operationally, Selectis Health has undergone significant restructuring, including the sale of its Georgia facilities, which has led to a reduction in total assets from $32.58 million at the end of 2025 to $31.45 million as of June 30, 2026. The company’s total liabilities also decreased significantly, from $39.19 million to $23.48 million, primarily due to the repayment of debt associated with the sold facilities. The company’s cash and cash equivalents increased to $7.73 million from $1.01 million, reflecting improved liquidity following the asset sales.

Looking ahead, Selectis Health's management has outlined a strategy focused on increasing occupancy rates in its remaining facilities and enhancing Medicaid reimbursement rates to drive revenue growth. The company is also exploring additional capital through debt or equity offerings to bolster its financial position. However, the filing notes substantial doubt about the company's ability to continue as a going concern, contingent on the successful execution of its strategic plans over the next twelve months. The company is actively working to improve its liquidity and profitability while managing its operational costs.