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
Fourth Quarter and Full Year 2025 Results
Houston, TX, February 25, 2026 - 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 fourth quarter and full year ended December 31,
FINANCIAL HIGHLIGHTS
Year Ended December 31, 2025 versus Year Ended December 31, 2024
Fourth Quarter Ended December 31, 2025, versus Fourth Quarter Ended December 31, 2024
U.S. Physical Therapy Press Release
MANAGEMENT'S COMMENTS
Chris Reading, Chief Executive Officer, said, "Our team delivered a strong finish to a solid year where
we made progress around a number of key initiatives which helped to deliver revenue growth of more than 16%, gross profit growth of over 20%, and margin and net rate improvements, among other positive developments. Additionally, we have recently
announced several acquisitions as well as new, important hospital relationships in key markets which will create long-term value and increase our ability to serve patients in those areas. We have a very clear plan for the year ahead and we are
excited to bring those plans to fruition with the capable help of our partners and our support teams around the country."
U.S. Physical Therapy Press Release
2025 Fourth Quarter Versus 2024 Fourth Quarter
Additional details are available in the "Supplemental Financial and Performance Metrics" section of this release.
Physical Therapy Operations
| Three Months Ended | Variance | |||||||||||||||
| December 31, 2025 | December 31, 2024 | $ | % | |||||||||||||
| (In thousands, except percentages) | ||||||||||||||||
| Revenue related to: | ||||||||||||||||
| Mature Clinics (1) | $ | 133,497 | $ | 131,589 | $ | 1,908 | 1.4 | % | ||||||||
| Clinic additions (2) | 35,694 | 17,080 | 18,614 | * | (9) | |||||||||||
| Clinics sold or closed (3) | 484 | 1,391 | (907 | ) | * | (9) | ||||||||||
| Net Patient Revenue | 169,675 | 150,060 | 19,615 | 13.1 | % | |||||||||||
| Other (4) | 4,103 | 3,747 | 356 | 9.5 | % | |||||||||||
| Total | 173,778 | 153,807 | 19,971 | 13.0 | % | |||||||||||
| Operating costs (5) (7) | 138,599 | 125,723 | 12,876 | 10.2 | % | |||||||||||
| Gross profit | $ | 35,179 | $ | 28,084 | $ | 7,095 | 25.3 | % | ||||||||
| Financial and operating metrics (not in thousands): | ||||||||||||||||
| Net rate per patient visit (1) | $ | 106.49 | $ | 104.73 | $ | 1.76 | 1.7 | % | ||||||||
| Patient visits (1) | 1,593,336 | 1,432,801 | 160,535 | 11.2 | % | |||||||||||
| Average daily visits per clinic (1) | 32.7 | 31.6 | 1.1 | 3.5 | % | |||||||||||
| Gross Profit Margin (7) | 20.2 | % | 18.3 | % | ||||||||||||
| Adjusted gross profit margin (4)(5)(6)(7) | 20.5 | % | 18.6 | % | ||||||||||||
| Adjusted salaries and related costs per visit (6)(8) | $ | 62.15 | $ | 62.85 | $ | (0.70 | ) | (1.1 | )% | |||||||
| Adjusted operating costs per visit (6)(8) | $ | 85.56 | $ | 86.06 | $ | (0.50 | ) | (0.6 | )% |
(1) See Glossary of Terms - Revenue Metrics for definitions.
(2) Includes 47 owned clinics added during the year ended December 31, 2025 and 96 owned clinics added during the year ended
December 31, 2024. See "Clinic Count Roll Forward" for additional information.
(3) Includes 23 owned clinics closed during the year ended December 31, 2025 and 45 owned clinics closed during the year ended
December 31, 2024. See "Clinic Count Roll Forward" for additional information.
(4) Includes revenues from management contracts.
(5) Includes costs from management contracts.
(6) Excludes $0.4 million for the 2025 Fourth Quarter and $0.5 million for the 2024 Fourth Quarter of certain incentive costs
related to the Metro acquisition and gains or losses related to clinic closures, as applicable. See "Reconciliation of Non-GAAP Measures to the Most Directly Comparable GAAP Measure".
(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.
Net revenue from physical therapy operations increased $20.0 million, or 13.0%, to $173.8 million for the 2025 Fourth Quarter from $153.8 million for
the 2024 Fourth Quarter. Net rate per patient visit for the 2025 Fourth Quarter was $106.49 compared to $104.73 for the 2024 Fourth Quarter.
Operating costs from physical therapy operations increased $12.9 million, or 10.2%, to $138.6 million for the 2025 Fourth Quarter from $125.7 million
for the 2024 Fourth Quarter. Excluding certain incentive costs related to Metro and clinic closures costs for both periods, adjusted salaries and related costs per visit (1) was $62.15 for the 2025 Fourth Quarter compared to $62.85 for
the 2024 Fourth Quarter while adjusted total operating costs per visit (1) was $85.56 in the 2025 Fourth Quarter compared to $86.06 for the 2024 Fourth Quarter.
Gross profit from physical therapy operations increased $7.1 million, or 25.3%, to $35.2 million for the 2025 Fourth Quarter as compared to $28.1
million for the 2024 Fourth Quarter.
U.S. Physical Therapy Press Release
Industrial Injury Prevention Services
| Three Months Ended | Variance | |||||||||||||||
| December 31, 2025 | December 31, 2024 | $ | % | |||||||||||||
| (In thousands, except percentages) | ||||||||||||||||
| Net revenue | $ | 28,948 | $ | 26,640 | $ | 2,308 | 8.7 | % | ||||||||
| Operating costs (1) | 23,995 | 22,197 | 1,798 | 8.1 | % | |||||||||||
| Gross profit | $ | 4,953 | $ | 4,443 | $ | 510 | 11.5 | % | ||||||||
| Gross profit margin | 17.1 | % | 16.7 | % |
(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 $2.3 million, or 8.7%, to $28.9 million for the 2025 Fourth Quarter as compared to $26.6 million for the 2024 Fourth Quarter.
Gross profit from IIP operations for the 2025 Fourth Quarter increased $0.5 million, or 11.5%, to $5.0 million from $4.4 million for the 2024 Fourth Quarter. Gross profit margin from IIP operations was 17.1% for the 2025 Fourth Quarter compared to
16.7% for the 2024 Fourth Quarter.
Corporate Office Costs and Other Expenses
Corporate office costs increased to $18.1 million for the 2025 Fourth Quarter from $15.6 million for the 2024 Fourth Quarter, primarily to support the
larger number of clinics in 2025, 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 8.9% for the 2025 Fourth Quarter compared to 8.6% for the 2024 Fourth Quarter. Excluding the acquisition integration costs and costs associated
with the implementation of the new financial and human resources system of $1.0 million and $0.5 million in each comparative quarter, corporate office costs was 8.5% and 8.3% of net revenue for the 2025 Fourth Quarter and the 2024 Fourth Quarter,
The Company revalued contingent consideration related to certain acquisitions and recognized a net loss (an increase in the related liabilities) of
$5.2 million for the 2025 Fourth Quarter compared to a net gain (a decrease in the related liabilities) of $5.1 million for the 2024 Fourth Quarter.
A non-cash impairment charge of $2.4 million was recognized during the 2024 Fourth Quarter related to the impairment of assets held for sale. No
impairment was recorded during the 2025 Fourth Quarter.
Operating income was $16.8 million for the 2025 Fourth Quarter compared to $19.7 million for the 2024 Fourth Quarter. Excluding the impact of certain
costs discussed above, adjusted operating income (1) increased $5.4 million or 30.3% to $23.4 million for the 2025 Fourth Quarter from $17.9 million in the 2024 Fourth Quarter. See "Reconciliation of Non-GAAP measures to the Most
Directly Comparable GAAP Measure".
Interest expense increased by $0.3 million to $2.3 million for the 2025 Fourth Quarter compared to $2.0 million for the 2024 Fourth Quarter due to a
higher average outstanding balance on our revolving credit facility for the 2025 Fourth Quarter. The interest rate associated with borrowings on the Company's credit facilities was 4.8% in each of the 2025 Fourth Quarter and the 2024 Fourth
Quarter, with an all-in effective interest rate (including all associated costs) of 5.6% and 5.5% over the same periods, respectively.
Interest income was $0.1 million during the 2025 Fourth Quarter compared to $0.3 million for the 2024 Fourth Quarter.
The Company revalued a put-right liability related to the future purchase of an IIP business and recognized a net non-cash gain (a decrease in the
related liability) of $0.1 million in both the 2025 Fourth Quarter and the 2024 Fourth Quarter.
The provision for income taxes was $5.8 million for each of the 2025 Fourth Quarter and 2024 Fourth Quarter. Income tax expense for the 2025 Fourth
Quarter included an adjustment of $1.2 million to revalue the Company's deferred tax assets and liabilities using the most current statutory income tax rate.
USPH Net Income and Non-GAAP Measures
Net income attributable to non-controlling interest (temporary and permanent) was $5.0 million for the 2025 Fourth Quarter compared to $3.3 million for
the 2024 Fourth Quarter.
U.S. Physical Therapy Press Release
USPH Net Income was $4.2 million for the 2025 Fourth Quarter compared to $9.2 million for the 2024 Fourth Quarter, with the decrease attributable to
the change in fair value of contingent earnout consideration quarter over quarter. Under GAAP, increases and decreases in the value of redeemable noncontrolling interests, net of taxes, are not included in net income, but they are included in the
calculation of earnings per share. The Company's improved performance in the 2025 Fourth Quarter increased the value of these ownership interests, net of taxes, by $10.8 million, which reduced earnings per share. Loss per share was $0.44 for the
2025 Fourth Quarter compared to earnings per share of $0.52 for the 2024 Fourth Quarter.
Non-GAAP Adjusted EBITDA (1) was $24.8 million for the 2025 Fourth Quarter, an increase of $3.0 million or 13.5%, from $21.8 million for
the 2024 Fourth Quarter. Non-GAAP Operating Results (1) was $10.2 million, or $0.67 per share, for the 2025 Fourth Quarter compared to $7.8 million, or $0.51 per share, for the 2024 Fourth Quarter.
2025 Year Versus 2024 Year
Net revenue for the 2025 Year increased $109.6 million, or 16.3%, to $781.0 million from $671.3 million for the 2024 Year while operating costs
increased $83.9 million, or 15.3%, to $631.3 million from $547.4 million over the same periods, respectively. Gross profit for the 2025 Year was $149.7 million, or 19.2% of net revenue, compared to $123.9 million for the 2024 Year, or 18.5% of net
Net revenue from physical therapy operations increased $92.2 million, or 16.0%, in the 2025 Year versus the comparable prior year period.
Additionally, net rate per patient visit increased to $105.76 for the 2025 Year from $104.71 for the 2024 Year. Gross profit from physical therapy operations increased $22.1 million or 20.9% to $128.1 million, or 19.2% as a percent of net revenues,
for the 2025 Year as compared to $105.9 million, or 18.4% as a percent of net revenues, for the 2024 Year. Excluding certain incentive costs related to the Metro acquisition, which occurred on October 31, 2024, and clinic closures, the adjusted
gross profit margin (1) increased $18.5 million or 16.8%. to $129.0 million, or 19.4% as a percent of net revenues for the 2025 Year compared to $110.5 million, or 19.2% as a percent of net revenues, for the 2024 Year.
Revenues from IIP increased $17.5 million, or 18.0%, to $114.4 million for the 2025 Year from $96.9 million for the 2024 Year. Gross profit from IIP
operations increased $3.6 million, or 20.2%, to $21.6 million for the 2025 Year from $18.0 million in the 2024 Year. The gross profit margin from IIP operations was 18.9% for the 2025 Year compared to 18.6% for the 2024 Year.
Corporate office costs were $69.3 million for the 2025 Year compared to $58.3 million for the 2024 Year. As a percentage of net revenue, corporate
office costs were 8.9% and 8.7% over the same periods, respectively. Excluding acquisition integration costs and the costs associated with the implementation of the new financial and human resources system of $2.4 million and $0.8 million in the
comparative years, corporate office costs was 8.6% of net revenue for the 2025 Year and the 2024 Year.
The Company revalued contingent consideration related to certain acquisitions and recognized a net gain (a decrease in the related liabilities) of $6.2
million for the 2025 Year compared to a net loss of $0.2 million for the 2024 Year (an increase in the related liabilities).
Operating income was $86.7 million for the 2025 Year compared to $63.0 million for the 2024 Year. Excluding the certain costs discussed above, adjusted
operating income (1) increased to $84.1 million for the 2025 Year from $71.0 million for the 2024 Year, an increase of 18.4%. See the "Reconciliation of Non-GAAP Measures to the Most Directly Comparable GAAP Measure".
Other expenses were $8.9 million for the 2025 Year compared to $2.8 million for the 2024 Year, with the increase primarily due to higher interest
expense as a result of increased borrowings and lower interest income as the excess cash available during the 2024 Year 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 $1.3 million for the 2025 Year compared to net non-cash expense of $0.1 million for the 2024 Year.
The provision for income tax was $19.8 million, or an effective tax rate of 33.4%, for the 2025 Year and $14.6 million, or an effective tax rate of
31.7%, for the 2024 Year. Income tax expense for the 2025 Year included an adjustment of $1.2 million to revalue the Company's deferred tax assets and liabilities using the most current income tax rate.