US Physical Therapy (NYSE:USPH) Q4 2025 Earnings call February 26, 2026 10:30 AM ET Company ParticipantsCarey Hendrickson - CFOChris Reading - Chairman and CEOConstantine Davides - Managing DirectorJason Curtis - SVP of Finance and AccountingConference Call ParticipantsJack Slevin - VP and Equity Research AnalystLarry Solow - Managing Director, Partner, and Senior Equity AnalystMike Petusky - Managing Director and Senior Investment AnalystNone - AnalystOperatorGood day. Thank you for standing by. Welcome to ...

US Physical Therapy (NYSE:USPH) Q4 2025 Earnings call February 26, 2026 10:30 AM ET Company ParticipantsCarey Hendrickson - CFOChris Reading - Chairman and CEOConstantine Davides - Managing DirectorJason Curtis - SVP of Finance and AccountingConference Call ParticipantsJack Slevin - VP and Equity Research AnalystLarry Solow - Managing Director, Partner, and Senior Equity AnalystMike Petusky - Managing Director and Senior Investment AnalystNone - AnalystOperatorGood day. Thank you for standing by. Welcome to ...

US Physical Therapy (NYSE:USPH) Q4 2025 Earnings call February 26, 2026 10:30 AM ET Speaker7Good day. Thank you for standing by. Welcome to the U.S. Physical Therapy fourth quarter 2025 and full year earnings conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. In order to ask a question during the session, please press the star key followed by 1 on your telephone. Please be advised that today's call is bein ...

Core Insights - U.S. Physical Therapy, Inc. reported strong financial results for the fourth quarter and full year ended December 31, 2025, with significant revenue and profit growth compared to the previous year [1][4]. Financial Highlights - Adjusted EBITDA for the year ended December 31, 2025, was $95.0 million, an increase of $13.2 million or 16.2% from $81.8 million in 2024 [3][31]. - Net income attributable to USPH shareholders for 2025 was $39.6 million, compared to $31.4 million in 2024, while earnings per share decreased to $1.42 from $1.84 due to changes in fair value of redeemable noncontrolling interests [3][31][21]. - Operating Results for 2025 was $40.0 million, up from $36.9 million in 2024, translating to $2.63 per share compared to $2.45 per share in the prior year [3][31]. Quarterly Performance - For the fourth quarter of 2025, Adjusted EBITDA was $24.8 million, a 13.5% increase from $21.8 million in the fourth quarter of 2024 [3][22]. - Net income for the fourth quarter of 2025 was $4.2 million, down from $9.2 million in the same quarter of 2024, primarily due to a net loss related to contingent earnout consideration [3][21]. - Net revenue from physical therapy operations in the fourth quarter increased by $20.0 million, or 13.0%, to $173.8 million from $153.8 million in the fourth quarter of 2024 [3][8]. Operational Metrics - Total patient visits for the fourth quarter of 2025 were 1,593,336, an 11.2% increase from 1,432,801 in the fourth quarter of 2024 [3][8]. - The average daily patient visits per clinic reached a record high of 32.7 in the fourth quarter of 2025, compared to 31.6 in the fourth quarter of 2024 [3][8]. - Industrial injury prevention services revenue for the fourth quarter was $28.9 million, an increase of 8.7% compared to $26.6 million in the fourth quarter of 2024 [3][12]. Strategic Developments - The company added 11 clinics and closed 10 in the fourth quarter of 2025, bringing the total to 780 clinics as of December 31, 2025 [3][36]. - Recent acquisitions include an eight-clinic practice and an industrial injury prevention business, expected to generate approximately $8.0 million and $7.0 million in annual revenue, respectively [3][37]. - The company announced strategic alliances with hospital systems to integrate outpatient physical therapy clinics into their clinical services networks, expected to enhance revenue and EBITDA contributions [3][39][41]. Dividend and Guidance - The Board of Directors raised the quarterly dividend rate from $0.45 to $0.46 per share, effective immediately [3][44]. - Management expects Adjusted EBITDA for 2026 to be in the range of $102.0 million to $106.0 million, including contributions from new strategic alliances and a Medicare rate increase [3][42].

Core Viewpoint - U.S. Physical Therapy, Inc. will report its financial results for Q4 and the full year of 2025 on February 25, 2026, after market close, with a conference call scheduled for the following morning [1] Financial Reporting - The financial results will cover the fourth quarter and the entire year ending December 31, 2025 [1] - The announcement of the results will occur after the stock market closes on February 25, 2026 [1] - A conference call to discuss the results will take place on February 26, 2026 [1]

Core Insights - U.S. Physical Therapy, Inc. is a national operator of outpatient physical therapy clinics and provides industrial injury prevention services [1] - The company was founded in 1990 and currently owns and/or manages 780 outpatient physical therapy clinics [1] Company Presentation - Chris Reading, the Chief Executive Officer, presented at the J.P. Morgan 2026 Healthcare Conference on January 14, 2026 [1]

Core Insights - 4D Advisors has initiated a new position in U.S. Physical Therapy by acquiring 110,000 shares valued at $9.34 million as of September 30, 2025, indicating strong confidence in the company despite recent stock price declines [2][11]. Company Overview - U.S. Physical Therapy operates 591 clinics across 39 states, providing outpatient physical therapy and industrial injury prevention services, which include rehabilitation and ergonomic assessments [7][10]. - The company reported trailing twelve months (TTM) revenue of $758.71 million and net income of $36.02 million, with a dividend yield of 2.5% [5][10]. Financial Performance - As of November 14, 2025, U.S. Physical Therapy's stock price was $71.67, reflecting an 18.75% decline over the past year, underperforming the S&P 500 by 32.75 percentage points [3][12]. - Revenue for the first three quarters of 2025 reached $578.3 million, up from $490.9 million in 2024, indicating growth in sales [12]. Investment Position - The new position in U.S. Physical Therapy represents 4.97% of 4D Advisors' 13F reportable assets under management, making it the third largest holding in the fund [3][11]. - The price-to-earnings ratio for U.S. Physical Therapy has decreased from over 85 in Q3 of the previous year to approximately 32 in 2025, suggesting a potentially attractive valuation for investors [13].

Financial Performance - USPH Net Income for Q3 2025 was $13.1 million, up from $6.6 million in Q3 2024, with earnings per share increasing to $0.48 from $0.39[212]. - For the nine months ended September 30, 2025, USPH Net Income reached $35.4 million, compared to $22.2 million for the same period in 2024, with earnings per share rising to $1.85 from $1.32[213]. - Net income attributable to USPH shareholders for Q3 2025 was $13,138,000, compared to $6,628,000 in Q3 2024, representing a 98.5% increase[215]. - For the nine months ended September 30, 2025, net income attributable to USPH shareholders was $35,430,000, compared to $22,180,000 for the same period in 2024, a 59.7% increase[221]. - Adjusted EBITDA for Q3 2025 was $23,855,000, up from $21,071,000 in Q3 2024, reflecting a 13.2% growth[221]. - Adjusted EBITDA for Q3 2025 was $23.9 million, an increase of $2.8 million, or 13.2%, from $21.1 million in Q3 2024[231]. - Operating income surged by $12.5 million, or 97.2%, to $25.3 million in Q3 2025 from $12.8 million in Q3 2024[230]. - Operating income was $69.9 million for the 2025 Nine Months, compared to $43.3 million for the 2024 Nine Months, marking an increase of 61.5%[278]. Revenue and Patient Visits - Net revenue for Q3 2025 increased by $29.1 million, or 17.3%, to $197.1 million compared to $168.0 million in Q3 2024[230]. - Total patient visits reached 1,554,207 in Q3 2025, an 18.0% increase from 1,317,051 in Q3 2024[238]. - Net patient revenue increased by $24.9 million, or 17.9%, to $164.0 million in Q3 2025 from $139.1 million in Q3 2024[237]. - The total number of patient visits in Q3 2025 reached 1,554,207, compared to 1,317,051 in Q3 2024, marking a 17.9% increase[225]. - The company had 4,556,768 total patient visits for the nine months, an increase of 16.2% from 3,920,388 visits in the prior year[266]. Operating Costs and Expenses - Operating costs for Q3 2025 were $134,979,000, compared to $116,698,000 in Q3 2024, indicating a 15.6% increase[225]. - Total operating costs for the nine months ended September 30, 2025, were $394,060,000, compared to $336,917,000 in the same period of 2024, reflecting a 16.9% increase[226]. - Operating costs increased by $57.1 million, or 16.7%, to $399.9 million for the nine months, with operating costs as a percentage of net revenue decreasing to 81.2% from 81.5%[269]. - Corporate office costs increased to $17.4 million for Q3 2025 from $14.4 million for Q3 2024, representing 8.8% of net revenue compared to 8.6% in the prior year[249]. - Interest expense increased by $0.4 million to $2.4 million for Q3 2025, with an effective interest rate of 5.7% compared to 5.4% in Q3 2024[252]. Acquisitions and Growth - The company completed several acquisitions, including a 60% equity interest in a three-clinic practice on July 31, 2025, and a 40% interest in an outpatient home care practice on April 30, 2025[198][201]. - The company acquired a 100% equity interest in a two-clinic practice for a purchase price of $0.4 million, with additional contingent consideration valued at less than $0.1 million[311]. - The acquisition of a 60% equity interest in a three-clinic practice was completed for approximately $7.6 million, with contingent consideration valued at $2.6 million[312]. - The company acquired an 80% equity interest in an outpatient home-care practice for approximately $2.3 million, with contingent consideration valued at $1.0 million[313]. - The purchase price for a 65% interest in a physical therapy practice was approximately $3.8 million, with contingent consideration valued at $0.3 million[314]. - Revenues from Industrial Injury Prevention (IIP) services increased by $15.2 million or 21.6% to $85.5 million for the 2025 Nine Months compared to $70.3 million for the 2024 Nine Months[275]. Challenges and Regulatory Environment - The company faced challenges related to hiring and retaining qualified employees, impacting its operational capacity[197]. - Medicare reimbursement for therapy services is projected to decrease by approximately 2.9% in 2025, following a 1.8% reduction in 2024[207]. - Regulatory changes, including Medicare reimbursement adjustments, are expected to influence the company's financial performance in the future[205]. Cash Flow and Financial Position - Net cash provided by operating activities was $50.1 million for the 2025 Nine Months, down from $55.5 million for the 2024 Nine Months[294]. - Cash used in investing activities totaled $31.3 million for the 2025 Nine Months, primarily for business acquisitions and fixed asset purchases[295]. - Total cash and cash equivalents were $31.1 million as of September 30, 2025, down from $41.4 million as of December 31, 2024[288]. - As of September 30, 2025, the outstanding balance on the Term Facility was $132.4 million, and $26.5 million was outstanding under the Revolving Facility, resulting in $148.5 million of credit availability[305]. - The interest rate on the Senior Credit Facilities was 5.0% for the 2025 Third Quarter, compared to 4.7% for the 2024 Third Quarter, with an all-in effective interest rate of 5.7% and 5.4% respectively[305].

Financial Performance - Adjusted EBITDA for Q3 2025 was $23.9 million, a 13.2% increase from $21.1 million in Q3 2024, primarily due to clinic additions[3]. - Net income attributable to USPH shareholders for Q3 2025 was $13.1 million, compared to $6.6 million in Q3 2024, with earnings per share increasing to $0.48 from $0.39[3][24]. - Total revenue from physical therapy operations increased by $25.4 million, or 17.8%, to $168.1 million in Q3 2025 from $142.7 million in Q3 2024[3][10]. - Total net revenue for the first nine months of 2025 increased by $87.4 million, or 17.8%, to $578.3 million from $490.9 million in the same period of 2024[26]. - Operating income for the first nine months of 2025 was $69.9 million, compared to $43.3 million for the same period in 2024, marking a significant increase[31]. - Net income for the first nine months of 2025 was $35.4 million, compared to $22.2 million for the same period in 2024, with earnings per share increasing to $1.85[33]. - Comprehensive income attributable to USPH shareholders for the three months ended September 30, 2025, was $12,870, compared to $3,883 in the same period of 2024[50]. - Adjusted EBITDA for the nine months ended September 30, 2025, was $70,256,000, up from $59,966,000 in 2024, reflecting an 17.0% growth[62]. Patient Visits and Clinic Operations - Total patient visits reached 1,554,207 in Q3 2025, an 18.0% increase from 1,317,051 in Q3 2024[3][10]. - Average daily patient visits per clinic reached a record-high of 32.2 in Q3 2025, compared to 30.1 in Q3 2024[3]. - The company added 18 clinics and closed 7 in Q3 2025, bringing the total to 779 clinics as of September 30, 2025, compared to 700 a year earlier[3]. - Revenues from physical therapy operations rose by $72.2 million, or 17.2%, in the first nine months of 2025, driven by the addition of 84 net owned clinics[27]. - The total number of clinics increased to 779 by the end of Q3 2025, up from 700 at the end of Q3 2024, indicating a net addition of 79 clinics year-over-year[70]. - The average visits per clinic per day increased to 32.2 in Q3 2025, compared to 30.1 in Q3 2024, showing an improvement in clinic utilization[68]. Revenue and Costs - Industrial injury prevention services revenue was $29.0 million for Q3 2025, a 14.6% increase from $25.3 million in Q3 2024[3][15]. - Corporate office costs increased to $17.4 million in Q3 2025 from $14.4 million in Q3 2024, primarily due to supporting a larger number of clinics[16]. - Corporate office costs were $51.1 million for the first nine months of 2025, up from $42.7 million in the same period of 2024[29]. - The company reported a total operating cost of $394,060,000 for the nine months ended September 30, 2025, compared to $336,917,000 for the same period in 2024, representing an increase of approximately 17%[65]. - Operating costs per visit decreased slightly to $86.88 in Q3 2025 from $88.61 in Q3 2024, indicating improved cost efficiency[65]. - Salaries and related costs per visit remained stable at $62.07 in Q3 2025, compared to $62.47 in Q3 2024[65]. Cash and Investments - Total cash and cash equivalents decreased to $31.1 million as of September 30, 2025, from $117.0 million a year earlier[35]. - Cash and cash equivalents as of September 30, 2025, were $31,102, down from $41,362 as of December 31, 2024[52]. - Net cash provided by operating activities for the nine months ended September 30, 2025, was $50,126,000, down from $55,531,000 in 2024, a decrease of 9.0%[55]. - Net cash used in investing activities for the nine months ended September 30, 2025, was $(31,269,000), compared to $(54,597,000) in 2024, showing a 42.7% improvement[55]. - Cash and cash equivalents at the end of the period were $31,102,000, down from $116,959,000 at the end of September 30, 2024, a decrease of 73.4%[55]. Acquisitions and Dividends - The company acquired a 60% equity interest in a three-clinic practice, generating $5.3 million in annual revenue[3]. - The company acquired a 60% equity interest in a three-clinic practice on July 31, 2025, which generates approximately $5.3 million in annual revenue[36]. - The company declared dividends of $0.45 per common share for the three months ended September 30, 2025, compared to $0.44 in the same period of 2024[49].

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