Full Press Release Details
U.S. Physical Therapy, Inc.
Carey Hendrickson, Chief Financial Officer
Email: Chendrickson@usph.com
Chris Reading, Chief Executive Officer
U.S. Physical Therapy Reports
Third Quarter 2025 Results
Houston, TX, November 5, 2025 - U.S. Physical
Therapy, Inc. ("USPH" or the "Company") (NYSE, NYSE Texas: USPH), a national operator of outpatient physical therapy clinics and provider of industrial injury prevention services, today reported results for the three and nine months ended September 30,
FINANCIAL HIGHLIGHTS
| U.S. Physical Therapy Press Release | Page 2 |
| November 5, 2025 |
MANAGEMENT'S COMMENTS
Chris Reading, Chief Executive Officer, said,
"This was a very solid quarter for us across the board with record visits per clinic per day, continued clinic expansion with 84 net owned additions since the third quarter of 2024, and sustained double-digit growth in our injury prevention
business. Importantly, we are also making progress on some key initiatives that will benefit our 2026 growth and performance, along with an expected and overdue Medicare pricing lift."
2025 Third Quarter Versus 2024 Third Quarter
Additional supplemental tables of financial and performance metrics are presented on page 14 of this release.
Physical Therapy Operations
| Three Months Ended | Variance | |||||||||||||||||||
| September 30, 2025 | September 30, 2024 | $ | % | |||||||||||||||||
| (In thousands, except percentages) | ||||||||||||||||||||
| Revenue related to: | ||||||||||||||||||||
| Mature Clinics (1) | $ | 131,831 | $ | 131,532 | $ | 299 | 0.2 | % | ||||||||||||
| Clinic additions (2) | 32,051 | 4,535 | 27,516 | * | (9) | |||||||||||||||
| Clinics sold or closed (3) | 142 | 3,079 | (2,937 | ) | * | (9) | ||||||||||||||
| Net Patient Revenue | 164,024 | 139,146 | 24,878 | 17.9 | % | |||||||||||||||
| Other (4) | 4,086 | 3,568 | 518 | 14.5 | % | |||||||||||||||
| Total | 168,110 | 142,714 | 25,396 | 17.8 | % | |||||||||||||||
| Operating costs (5) (7) | 136,917 | 118,715 | 18,202 | 15.3 | % | |||||||||||||||
| Gross profit | $ | 31,193 | $ | 23,999 | $ | 7,194 | 30.0 | % | ||||||||||||
| Financial and operating metrics (not in thousands): | ||||||||||||||||||||
| Net rate per patient visit (1) | $ | 105.54 | $ | 105.65 | $ | (0.11 | ) | (0.1 | )% | |||||||||||
| Patient visits (1) | 1,554,207 | 1,317,051 | 237,156 | 18.0 | % | |||||||||||||||
| Average daily visits per clinic (1) | 32.2 | 30.1 | 2.1 | 7.0 | % | |||||||||||||||
| Adjusted gross profit margin (4)(5)(6) | 18.6 | % | 19.2 | % | ||||||||||||||||
| Salaries and related costs per visit (6)(8) | $ | 62.07 | $ | 62.47 | $ | (0.40 | ) | (0.6 | )% | |||||||||||
| Operating costs per visit (6)(8) | $ | 86.88 | $ | 86.00 | $ | 0.88 | 1.0 | % | ||||||||||||
| (1) See Glossary of Terms - Revenue Metrics for definitions. | ||||||||||||||||||||
| (2) Includes 36 owned clinics added during the nine months ended September 30, 2025, and 96 owned clinics added during the year ended December 31, 2024. See Clinic Count Roll Forward on page 14 for additional information. | ||||||||||||||||||||
| (3) Includes 13 owned clinics closed during the nine months ended September 30,2025 and 45 owned clinics closed during the year ended December 31, 2024. See Clinic Count Roll Forward on page 14 for additional information. | ||||||||||||||||||||
| (4) Includes revenues from management contracts. | ||||||||||||||||||||
| (5) Includes costs from management contracts. | ||||||||||||||||||||
| (6) Excludes $0.1 million of certain incentive costs related to the Metro acquisition and gains or losses related to clinic closures, as applicable. See the reconciliation of non-GAAP measures to the most directly comparable GAAP measure on page 14. | ||||||||||||||||||||
| (7) Amortization of certain intangible assets was reallocated between the physical therapy operations and IIP segments. Prior year amounts were reallocated to conform with current presentation. | ||||||||||||||||||||
| (8) Per visit costs exclude management contract costs. | ||||||||||||||||||||
| (9) Not meaningful. |
Net revenue from physical therapy operations increased $25.4 million, or 17.8%, to $168.1 million for the 2025 Third
Quarter from $142.7 million for the 2024 Third Quarter. This growth was due to the increase in visits from the 84 net owned clinics added since the comparable prior year period. Net rate per patient visit for the 2025 Third Quarter was $105.54
compared to $105.65 for the 2024 Third Quarter.
Operating costs from physical therapy operations increased $18.2 million, or 15.3%, to $136.9 million for the 2025
Third Quarter from $118.7 million for the 2024 Third Quarter primarily driven by the 84 net owned clinics added since the comparable prior year period. Excluding certain incentive costs related to the Metro acquisition and gains and losses
related to clinic closures for both periods, salaries and related costs per visit was $62.07 for the 2025 Third Quarter compared to $62.47 for the 2024 Third Quarter while total operating costs per visit was $86.88 in the 2025 Third Quarter
compared to $86.00 in the comparable prior year period.
Gross profit from physical therapy operations increased $7.2 million or 30.0% to $31.2 million for the 2025 Third
Quarter as compared to $24.0 million for the 2024 Third Quarter. Excluding certain incentive costs related to the Metro acquisition and gains and losses related to clinic closures for both periods, the adjusted gross profit margin increased $3.7
million or 13.5% over the comparable periods. See the reconciliation of non-GAAP measures to the more directly comparable GAAP measure provided on pages 13 to 14 for more information.
| U.S. Physical Therapy Press Release | Page 3 |
| November 5, 2025 |
Industrial Injury Prevention Services
| Three Months Ended | Variance | |||||||||||||||
| September 30, 2025 | September 30, 2024 | $ | % | |||||||||||||
| (In thousands, except percentages) | ||||||||||||||||
| Net revenue | $ | 29,022 | $ | 25,319 | $ | 3,703 | 14.6 | % | ||||||||
| Operating costs (1) | 23,343 | 20,187 | 3,156 | 15.6 | % | |||||||||||
| Gross profit | $ | 5,679 | $ | 5,132 | $ | 547 | 10.7 | % | ||||||||
| Gross profit margin | 19.6 | % | 20.3 | % | ||||||||||||
| (1) Amortization of certain intangible assets was reallocated between the physical therapy operations and IIP segments. Prior year amounts were reallocated to conform with current presentation. |
IIP revenue increased $3.7 million, or 14.6%, to $29.0 million for the 2025 Third Quarter as compared to $25.3 million
for the 2024 Third Quarter. Gross profit from IIP operations for the 2025 Third Quarter increased $0.5 million, or 10.7%, to $5.7 million from $5.1 million for the 2024 Third Quarter. Gross profit margin from IIP operations was 19.6% for the 2025
Third Quarter compared to 20.3% for the 2024 Third Quarter.
Corporate Office Costs and Other Expenses
Corporate office costs increased to $17.4 million for the 2025 Third Quarter from $14.4 million for the 2024 Third
Quarter, primarily to support the larger number of clinics, as well as costs associated with acquisition integration and the implementation of a new financial and human resources system. Implementation costs associated with the new financial and
human resources system are expected to continue through the end of 2026. As a percentage of net revenue, corporate office costs was 8.8% for the 2025 Third Quarter compared to 8.6% for the 2024 Third Quarter. Excluding the acquisition integration
costs and the costs associated with the implementation of the new financial and human resources system of $0.7 million, corporate office costs was 8.5% of net revenue for the 2025 Third Quarter.
The Company revalued contingent consideration related to certain acquisitions and recognized a net
gain (a decrease in the related liabilities) of $5.9 million for the 2025 Third Quarter compared to a net loss (an increase in the related liabilities) of $1.9 million for the 2024 Third Quarter.
Operating income was $25.3 million for the 2025 Third Quarter compared to $12.8 million for the 2024 Third Quarter.
Excluding the impact of change in value of contingent consideration as discussed above, operating income increased to $19.5 million for the 2025 Third Quarter from $14.7 million in the 2024 Third Quarter.
Interest expense increased by $0.4 million to $2.4 million for the 2025 Third Quarter compared to
$2.0 million for the 2024 Third Quarter due to a higher average outstanding balance on our revolving credit facility for the 2025 Third Quarter. The interest rate associated with borrowings on the Company's credit facilities was 5.0% for the 2025
Third Quarter and 4.7% for the 2024 Third Quarter, with an all-in-effective interest rate (including all associated costs), of 5.7% and 5.4% over the same periods, respectively.
Interest income was less than $0.1 million during the 2025 Third Quarter compared to $1.0 million
for the 2024 Third Quarter as the excess cash on the balance sheet at the end of the 2024 Third Quarter has since been deployed to fund acquisitions.
The Company revalued a put-right liability related to the future purchase of an IIP business and
recognized a net non-cash expense (an increase in the related liability) of $0.7 million for the 2025 Third Quarter compared to net non-cash gain (a decrease in the related liability) of $0.2 million for the 2024 Third Quarter.
The provision for income taxes was $5.2 million for the 2025 Third Quarter compared to $2.6 million during the 2024
Third Quarter while the effective tax rate was 28.5% and 27.9% over the same periods, respectively.
USPH Net Income and Non-GAAP Measures
Net income attributable to non-controlling interest (temporary and permanent) was $4.5 million for the 2025 Third Quarter compared to $3.1 million
for the 2024 Third Quarter.
USPH Net Income was $13.1 million for the 2025 Third Quarter compared to $6.6 million for the 2024 Third Quarter. In
accordance with GAAP, the revaluation of redeemable noncontrolling interest, net of taxes, is not included in net income but is charged directly to retained earnings; however, this change is included in the computation of earnings per share. Earnings
per share was $0.48 for the 2025 Third Quarter and $0.39 the 2024 Third Quarter.
Non-GAAP Adjusted EBITDA (1) was $23.9 million for the 2025 Third Quarter, an increase of $2.8 million or 13.2%, from $21.1 million
for the 2024 Third Quarter. Non-GAAP Operating Results (1) was $10.1 million, or $0.66 per share, for the 2025 Third Quarter compared to $10.4 million, or $0.69 per share, for the 2024 Third Quarter.
| U.S. Physical Therapy Press Release | Page 4 |
| November 5, 2025 |
2025 Nine Months Versus 2024 Nine Months
Total net revenue for the 2025 Nine Months increased $87.4 million, or 17.8%, to $578.3 million from $490.9 million for
the 2024 Nine Months while operating costs increased $69.2 million, or 17.3%, to $468.7 million from $399.5 million over the same periods, respectively. Gross profit for the 2025 Nine Months was $109.6 million, or 18.9% of net revenue, compared to
$91.4 million for the 2024 Nine Months, or 18.6% of net revenue.
Revenues from physical therapy operations increased $72.2 million, or 17.2% in the 2025 Nine Months
versus the comparable prior year period due to increased volume from the 84 net owned clinics added since the comparable prior year period as well as an increase in net rate per patient visit to $105.50 for 2025 Nine Months from $104.71 for 2024
Nine Months. Gross profit from physical therapy operations increased $15.0 million, or 19.3%, to $92.9 million for the 2025 Nine Months from $77.8 million for the 2024 Nine Months. Excluding certain incentive costs related to the Metro acquisition
and losses related to clinic closures, adjusted gross profit (1), increased $11.5 million or 14.0% over the comparable periods.
Revenues from IIP increased $15.2 million, or 21.6%, from $70.3 million for the 2024 Nine Months to
$85.5 million for the 2025 Nine Months. Gross profit from IIP operations increased $3.1 million, or 23.0%, from $13.6 million in the 2024 Nine Months to $16.7 million for the 2025 Nine Months. The gross profit margin from IIP operations was 19.5%
for the 2025 Nine Months compared to 19.3% for the 2024 Nine Months. Excluding the IIP acquisition made in April 2024, IIP revenue increased by $10.5 million or 16.0% in the 2025 Nine Months and gross profit increased $2.0 million or 16.1% in the
2025 Nine Months over the comparable prior year period.
Corporate office costs were $51.1 million for the 2025 Nine Months, compared to $42.7 million for the 2024 Nine
Months. As a percentage of net revenue, corporate office costs were 8.8% and 8.7% over the same periods, respectively. Excluding the acquisition integration costs and the costs associated with the implementation of the new financial and human
resources system of $1.8 million, corporate office costs was 8.5% of net revenue for the 2025 Nine Months.
The Company revalued contingent consideration related to certain acquisitions and recognized a net gain (a decrease in
the related liabilities) of $11.5 million for the 2025 Nine Months compared to a net loss of $5.3 million for the 2024 Nine Months (an increase in the related liabilities).
Operating income was $69.9 million for the 2025 Nine Months compared to $43.3 million for the 2024 Nine Months.
Excluding the impact of change in value of contingent consideration discussed above, operating income increased to $58.4 million for the 2025 Nine Months from $48.7 million for the 2024 Nine Months, an increase of 20.0%.
Other expenses were $7.1 million for the 2025 Nine Months compared to $1.5 million for the 2024
Nine Months, with the increase primarily due to higher interest expense as a result of increased borrowings and lower interest income as the excess cash on the balance sheet as of September 30, 2024 has been deployed to fund acquisitions since that
time. Additionally, the Company revalued a put-right liability related to the future purchase of an IIP business and recognized a net non-cash expense (an increase in the related liability) of $1.4 million for the 2025 Nine Months compared to net
non-cash expense of $0.1 million for the 2024 Nine Months.
The provision for income tax was $14.0 million for the 2025 Nine Months and $8.8 million for the 2024 Nine Months. The
effective tax rate was 28.4% over the comparable periods.
USPH Net Income was $35.4 million for the 2025 Nine Months as compared to $22.2 million for the
2024 Nine Months while earnings per share was $1.85 for the 2025 Nine Months compared to $1.32 for the 2024 Nine Months.
Non-GAAP Adjusted EBITDA (1) increased $10.3 million to $70.3 million for the 2025 Nine Months from $60.0
million for the 2024 Nine Months while non-GAAP Operating Results (1) increased $0.6 million to $29.7 million, or $1.96 per share, for the 2025 Nine Months from $29.2 million, or $1.94 per share, for the 2024 Nine Months.
For additional information on 2025 Nine Months results, please refer to the Company's Quarterly Report on Form 10-Q
which is expected to be filed with the Securities and Exchange Commission on November 7, 2025.
BALANCE SHEET AND CASH FLOW
Total cash and cash equivalents were $31.1 million as of September 30, 2025, compared to $41.4 million as of December 31, 2024, and $117.0
million as of September 30, 2024. The Company had $159.6 million in outstanding borrowings and $148.5 million in available credit under the Company's revolving facility as of September 30, 2025. This compares to $151.6 million of outstanding
borrowings and $164.0 million in available credit under the Company's revolving facility as of December 31, 2024.
| U.S. Physical Therapy Press Release | Page 5 |
| November 5, 2025 |
On July 31, 2025, the Company acquired a 60% equity interest in a three-clinic practice with
the practice owners retaining a 40% equity interest. The business currently generates approximately $5.3 million in annual revenue and approximately 28,000 in annual visits.
The Company's strategy is to continue acquiring multi-clinic outpatient physical therapy practices and home-care