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Outpatient physical therapy provider U.S. Physical Therapy (NYSE:USPH) announced better-than-expected revenue in Q2 CY2025, with sales up 18% year on year to $197.3 million. Its non-GAAP profit of $0.81 per share was 16.7% above analysts’ consensus estimates.
Is now the time to buy USPH? Find out in our full research report (it’s free).
U.S. Physical Therapy’s second quarter saw a strong market reaction, reflecting positive surprise on both revenue and profitability. Management attributed the momentum to robust visit growth, driven by higher patient satisfaction and referrals, and successful execution in its injury prevention segment. CEO Christopher Reading highlighted that the company’s Net Promoter Score reached 93.5, indicating exceptional patient advocacy, while the industrial injury prevention business posted double-digit revenue growth. Operational efficiency initiatives and disciplined cost management also contributed, with average visits per clinic per day hitting a company record.
Looking ahead, management expects continued growth in both core physical therapy and injury prevention, supported by targeted investments in recruitment, retention, and new clinic openings. CFO Carey Hendrickson pointed to ongoing contract negotiations to improve reimbursement rates and highlighted early progress from cash-based service offerings. Reading emphasized that the introduction of AI-powered clinical documentation tools and semi-virtualized front desk operations are expected to further enhance productivity and margins, while the recently announced share repurchase program provides flexibility without diverting capital from priority growth investments.
Management credited the quarter’s outperformance to higher patient volumes, expanded service offerings, and improved operational discipline, while new AI initiatives and cost controls set the stage for future margin gains.
Management’s outlook is anchored in expanding service offerings, continued volume growth, and efficiency gains from technology and scale.
In the coming quarters, the StockStory team will be monitoring (1) the pace of new clinic openings and the ability to maintain high visit volumes per clinic, (2) the full-scale rollout and effectiveness of AI-driven documentation and virtual front desk technologies in lowering costs, and (3) the ramp of large new injury prevention contracts. Progress on reimbursement negotiations and continued expansion in higher-rate markets will also be key for sustaining margin improvements.
U.S. Physical Therapy currently trades at $87.34, up from $73.12 just before the earnings. In the wake of this quarter, is it a buy or sell? The answer lies in our full research report (it’s free).
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