USPH Reports Third Quarter 2026 Results, Record High Visits and Revenue Per Visit

HOUSTON--(BUSINESS WIRE)--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 (“IIP”), today reported results for the three and nine months ended September 30, 2026.

• Total net revenue was $223 million for the third quarter ended September 30, 2026 (“Q3 2026”), a 13% increase over the third quarter ended September 30, 2025 (“Q3 2025”).
• Net income attributable to USPH shareholders was $11 million for Q3 2026 compared to $13 million for Q3 2025. The Company reported loss per share of $1.04 in Q3 2026 compared to earnings per share of $0.48 in Q3 2025. Included in pretax income for Q3 2026 was a $0.1 million loss on change in fair value of contingent earn out consideration compared to a gain of $6 million in Q3 2025. Under GAAP, changes in the value of redeemable noncontrolling interests, representing our partners’ ownership stakes in subsidiaries not fully owned by USPH, are excluded from net income but are included in the calculation of earnings per share. Improving performance increases the value of these ownership interests, which has a dilutive effect on earnings per share.
• Adjusted net income ⁽¹⁾⁽²⁾ was $12 million for Q3 2026 compared to $10 million for Q3 2025. Adjusted earnings per share ⁽¹⁾⁽²⁾ was $0.80 in Q3 2026 compared to $0.66 in Q3 2025.
• Adjusted EBITDA ⁽¹⁾ was $28 million for Q3 2026 compared to $24 million for Q3 2025.
• The Company’s Board of Directors declared a quarterly dividend of $0.46 to be payable on December 11, 2026, to shareholders of record on November 16, 2026, consistent with the Company’s longstanding practice of delivering value to shareholders.
• Through the end of Q3 2026, the Company successfully integrated all 72 clinics under the two previously announced hospital affiliation agreements.

Chris Reading, Chairman and Chief Executive Officer commented, “We are pleased with the strong financial performance delivered in the third quarter 2026. The year-over-year EBITDA improvement reflects the initial benefit of the completed rollout of our first two hospital affiliations. The 72 clinics operating under hospital affiliation agreements generated $25 million in revenue in Q3, and we expect this number to increase significantly as referral volumes rise, additional clinics are incorporated into existing agreements, and our pipeline of hospital prospects results in new affiliations.”

Mr. Reading continued, “Cost pressures from our self-insured employee medical program continued in Q3. As a result, we implemented expense control efforts that partially mitigated these overages during the quarter and will benefit future periods. I want to thank our partners, clinicians, and support staff for their efforts on all fronts as we work to close out 2026, accelerate into 2027, and provide the outstanding patient service for which we are known.”

Q3 2026 compared to Q3 2025

• Physical therapy net revenue was $190 million for Q3 2026, a 13% increase compared to Q3 2025, including a 6% increase in mature revenue ⁽¹⁾.
• Patient visits ⁽¹⁾ were 1.7 million for Q3 2026, an 8% increase compared to Q3 2025, with average daily visits per clinic ⁽¹⁾ of 33 for Q3 2026 compared to 32 for Q3 2025.
• Physical therapy net revenue per patient visit ⁽¹⁾ was $111 for Q3 2026, a $5 increase compared to Q3 2025.
• Physical therapy margin was 19% in each of Q3 2026 and Q3 2025. Adjusted physical therapy margin ⁽²⁾ was 19% in Q3 2026, up approximately 150 basis points compared to Q3 2025. Q3 2026 results reflect higher company-provided health benefit costs compared to a favorable experience in Q3 2025, representing approximately 150 basis points of margin headwind.
• IIP revenue was $33 million for Q3 2026, a 14% increase compared to Q3 2025. Excluding the IIP acquisition on January 31, 2026, IIP revenue increased 8%.
• IIP margin was 22% for Q3 2026 compared to 20% for Q3 2025.
• Corporate expense as a percentage of total revenue was 8% in Q3 2026 compared to 9% in Q3 2025. Adjusted corporate expense ⁽²⁾ as a percentage of total revenue was 8% in Q3 2026 compared to 9% in Q3 2025.
• The Company added 21 and closed three locations during Q3 2026, bringing the location count ⁽¹⁾ to 799 as of September 30, 2026.

Nine Months ended September 30, 2026, compared to Nine Months ended September 30, 2025

• Total net revenue was $635 million for nine months ended September 30, 2026 (“YTD 2026”), a 10% increase over the nine months ended September 30, 2025 (“YTD 2025”).
• Physical therapy net revenue was $540 million for YTD 2026, a 10% increase compared to YTD 2025, including a 4% increase in mature revenue ⁽¹⁾.
• Patient visits ⁽¹⁾ were 4.9 million for the YTD 2026, a 7% increase compared to YTD 2025, with average daily visits per clinic ⁽¹⁾ of 33 for YTD 2026 compared to 32 for the YTD 2025.
• Physical therapy net revenue per patient visit ⁽¹⁾ was $108 for YTD 2026, a $3 increase compared to YTD 2025.
• Physical therapy margin and adjusted physical therapy margin ⁽²⁾ were 18% for YTD 2026 compared to 19% for YTD 2025, respectively. YTD 2026 results include the unfavorable impact of company-provided health benefit costs compared to a favorable impact in YTD 2025, impacting margins by approximately 100 basis points.
• IIP revenue was $95 million for YTD 2026, a 12% increase compared to YTD 2025. Excluding the IIP acquisition made on January 31, 2026, IIP revenue increased 7%.
• IIP margin was 21% for YTD 2026 compared to 20% for YTD 2025.
• Corporate expense as a percentage of total revenue was 9% in each of YTD 2026 and YTD 2025. Adjusted corporate expense ⁽²⁾ as a percentage of total revenue was 8% for YTD 2026 compared to 9% for YTD 2025.
• Net income attributable to USPH shareholders was $26 million for YTD 2026 compared to $35 million for YTD 2025 with loss per share of $0.90 compared to earnings per share of $1.85 for the same periods, respectively. Included in pretax income for Q3 2026 was a loss on change in fair value of contingent earn out consideration of $3 million versus a gain of $11 million in Q3 2025.
• Adjusted net income ⁽²⁾⁽³⁾ was $30.2 million for YTD 2026 compared to $29.7 million for YTD 2025, with adjusted earnings per share ⁽²⁾⁽³⁾ of $2.01 compared to $1.96 for the same periods, respectively.
• Adjusted EBITDA ⁽²⁾ was $75 million for YTD 2026 compared to $70 million for YTD 2025.

BALANCE SHEET AND CASH FLOW

• Cash and cash equivalents were $38 million as of September 30, 2026, compared to $36 million as of December 31, 2025. Borrowings under the Company’s credit facility were $247 million as of September 30, 2026, compared to $162 million as of December 31, 2025.
• As previously announced, on September 22, 2026, the Company entered into a new interest rate swap agreement (“Swap”) with a $171 million initial notional value. The Swap fixes the company’s term debt at 4.6% from June 30, 2027, to April 14, 2031.

Q3 2026 ACQUISITIONS

• On July 1, 2026, the Company acquired a 67% equity interest in a 12-clinic physical therapy practice for a purchase price of $16 million. The business currently generates $12 million in annual revenue and 0.1 million annual visits.

2026 FULL YEAR GUIDANCE

Management reaffirmed the Company’s full year 2026 adjusted EBITDA guidance of $102 million to $106 million.

CONFERENCE CALL INFORMATION

U.S. Physical Therapy’s management will host a conference call at 10:30 a.m. ET / 9:30 a.m. CT, on November 5, 2026, to discuss the Company’s financial results for the three and nine months ended September 30, 2026. Interested parties may participate in the call by dialing (800) 245-3047 (Primary) or (203) 518-9765 (Alternate) and conference ID of USPHQ326. Please call approximately 10 minutes before the call is scheduled to begin. To listen to the live call, go to the Company’s website at www.usph.com at least 15 minutes early to register, download and install any necessary audio software. If you are unable to listen live, a playback of the conference call can be accessed until February 3, 2027, on the Company’s website.

FORWARD-LOOKING STATEMENTS

This press release contains statements that are considered to be forward-looking within the meaning under Section 21E of the Securities Exchange Act of 1934, as amended. These statements contain forward-looking information relating to the financial condition, results of operations, plans, objectives, future performance and business of our Company. These statements (often using words such as “believes”, “expects”, “intends”, “plans”, “appear”, “should” and similar words) involve risks and uncertainties that could cause actual results to differ materially from those we expect. Included among such statements may be those relating to new clinics, availability of personnel and the reimbursement environment. The forward-looking statements are based on our current views and assumptions and actual results could differ materially from those anticipated in such forward-looking statements as a result of certain risks, uncertainties, and factors, which include, but are not limited to:

• changes in Medicare rules and guidelines and reimbursement or failure of our clinics to maintain their Medicare certification and/or enrollment status;
• revenue we receive from Medicare and Medicaid being subject to potential retroactive reduction;
• changes in reimbursement rates or payment methods from third party payors including government agencies, and changes in the deductibles and co-pays owed by patients;
• private third-party payors for our services may adopt payment policies that could limit our future revenue and profitability;
• compliance with federal and state laws and regulations relating to the privacy of individually identifiable patient information, and associated fines and penalties for failure to comply;
• compliance with state laws and regulations relating to the corporate practice of medicine and fee splitting, and associated fines and penalties for failure to comply;
• competitive, economic or reimbursement conditions in our markets which may require us to reorganize or close certain clinics and thereby incur losses and/or closure costs including the possible write-down or write-off of goodwill and other intangible assets;
• the impact of a termination of one or more of the Company’s hospital affiliated arrangements, which could have an adverse impact on revenue and the results of operations;
• the impact of future public health crises and epidemics/pandemics;
• certain of our acquisition agreements contain put rights related to a future purchase of significant equity interests in our subsidiaries or in a separate company;
• the impact of future vaccinations and/or testing mandates at the federal, state and/or local level, which could have an adverse impact on staffing, revenue, costs and the results of operations;
• our debt and financial obligations could adversely affect our financial condition, our ability to obtain future financing, and our ability to operate our business;
• changes as the result of government enacted national healthcare reform;
• the ability to control variable interest entities for which we do not have a direct ownership;
• business and regulatory conditions including federal and state regulations;
• governmental and other third party payor inspections, reviews, investigations and audits, which may result in sanctions or reputational harm and increased costs;
• revenue and earnings expectations;
• contingent consideration provisions in certain of our acquisition agreements, the value of which may impact future financial results;
• legal actions, which could subject us to increased operating costs and uninsured liabilities;
• general economic conditions, including but not limited to inflationary and recessionary periods;
• actual or perceived events involving banking volatility, defaults or other adverse developments that affect the U.S or the international financial systems, may result in market wide liquidity problems which could have a material and adverse impact on our available cash and results of operations;
• our business depends on hiring, training, and retaining qualified employees;
• availability and cost of qualified physical therapists;
• competitive environment in the industrial injury prevention services business, which could result in the termination or non-renewal of contractual service arrangements and other adverse financial consequences for that service line;
• our ability to identify and complete acquisitions, and the successful integration of the operations of the acquired businesses;
• impact on the business and cash reserves resulting from retirement or resignation of key partners and resulting purchase of their non-controlling interest (minority interests);
• maintaining our information technology systems with adequate safeguards to protect against cyber-attacks;
• a security breach of our or our third party vendors’ information technology systems may subject us to potential legal action and reputational harm and may result in a violation of the Health Insurance Portability and Accountability Act of 1996 of the Health Information Technology for Economic and Clinical Health Act;
• maintaining clients for which we perform management, industrial injury prevention related services, and other services, as a breach or termination of those contractual arrangements by such clients could cause operating results to be less than expected;
• maintaining adequate internal controls;
• use of generative artificial intelligence;
• maintaining necessary insurance coverage;
• availability, terms, and use of capital; and
• weather and other seasonal factors.

Many factors are beyond our control. Given these uncertainties, you should not place undue reliance on our forward-looking statements. For additional information regarding these and other risks and uncertainties, that could cause actual results to differ materially from those contained in our forward-looking statements, please refer to “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2025, filed with the Securities and Exchange Commission (“SEC”) on February 27, 2026 and any risk factors contained in subsequent quarterly and annual reports we file with the SEC. Our forward-looking statements represent our estimates and assumptions only as of the date of this report. Except as required by law, we are under no obligation to update any forward-looking statement as a result of new information, future events, or otherwise, except as required by law.

GLOSSARY OF TERMS

Mature revenue includes revenues from owned and hospital affiliated locations as well as homecare which were operational prior to January 1, 2025, and are still operating as of the balance sheet date. This metric excludes other management contracts.

Physical therapy revenue per patient visit is net revenue from owned and hospital affiliated clinics as well as homecare divided by total number of patient visits (defined below) during the periods presented. This metric excludes other management contracts.

Patient visits is the number of unique patient visits at the Company’s owned and hospital affiliated clinics as well as homecare for the periods presented. This metric excludes other management contracts.

Average daily visits per clinic is patient visits at the Company’s owned and hospital affiliated clinics, divided by the number of days in which normal business operations were conducted during the periods presented and further divided by the average number of owned and hospital affiliated clinics in operation during the periods presented. This metric excludes homecare and other management contracts.

Location count includes owned and hospital affiliated clinics as well as other management contracts. This metric excludes homecare.

ABOUT U.S. PHYSICAL THERAPY, INC.

Founded in 1990, U.S. Physical Therapy, Inc. owns and/or manages 799 outpatient physical therapy locations in 45 states. USPH locations provide preventative and post-operative care for a variety of orthopedic-related disorders and sports-related injuries, treatment for neurologically-related injuries and rehabilitation of injured workers. USPH also has an industrial injury prevention business which provides onsite services for clients’ employees including injury prevention and rehabilitation, performance optimization, post-offer employment testing, functional capacity evaluations, and ergonomic assessments.

More information about U.S. Physical Therapy, Inc. is available at www.usph.com. The information included on that website is not incorporated into this press release.

U.S. Physical Therapy, Inc.
Nchacha Etta, Chief Financial Officer
email: netta@usph.com
(713) 297-7000

Three Part Advisors
Joe Noyons
(817) 778-8424