US Physical Therapy (USPH) Earnings Transcript

The Motley Fool

by newsfeedback@fool.com (Motley Fool Transcribing)

February 26, 2026

AI-Generated Deep Dive Summary

U.S. Physical Therapy (USPH) delivered a strong financial performance in its latest quarter, highlighted by significant revenue growth and operational improvements. The company reported a 17.3% year-over-year increase in physical therapy revenue, reaching $168.3 million, driven largely by acquisitions and organic growth. Key metrics such as average visits per clinic, net promoter scores, and gross profit margins all reached record levels or showed substantial improvement, underscoring the company’s ability to enhance both patient satisfaction and profitability. One of the standout figures was the adjusted EBITDA, which rose 17.5%, reflecting improved cost management and operational efficiency. Despite headwinds like Medicare rate reductions and payer policy changes, particularly in Michigan, USPH managed to maintain a net rate per patient visit increase of $0.28 year over year, reaching $105.33. The company also expanded its gross profit margin by 1% compared to the prior year, demonstrating strong cost control measures. The industrial injury prevention (IIP) segment continued to shine, with revenue up 22.6%, driven by organic growth of 18.4%. This segment’s gross profit margin improved to 22%, further solidifying its contribution to USPH’s overall financial health. Additionally, the company reported a significant increase in home care visits, with over 28,000 such visits in the quarter—a new metric being tracked for the first time. USPH also highlighted its strategic initiatives, including the deployment of AI-driven tools and semi-virtualized front desk processes, aimed at improving clinician efficiency and reducing labor needs. These innovations, coupled with a 25% increase in student clinical rotations and record-low turnover rates, indicate a strong focus on recruitment and retention. Looking ahead, USPH has raised its adjusted EBITDA guidance for the year to $93 million–$97 million, reflecting confidence in continued growth. The company also authorized up to $25 million in share buybacks through 2026, signaling strategic capital allocation priorities that align with shareholder value maximization. Overall, USPH’s performance

Verticals

financeinvesting

Originally published on The Motley Fool on 2/26/2026