U.S. Physical Therapy, Inc. (USPH) Q3 2025 Earnings Call Transcript
Gross Profit Grew 30% year-over-year. Even after adjusting for anomalies from the previous year, there was still a mid-teens percentage increase. This growth occurred despite inflationary pressures and higher staff costs.
Average Visits Per Clinic Per Day Reached a record of 32.2 for Q3, marking the highest third-quarter volume in the company's history. This was driven by strong patient care and service.
Total Patient Visits Increased 18% year-over-year, supported by the addition of 84 net owned clinics and a 2.2% increase in visits at mature clinics.
PT Salaries and Related Costs Per Visit Decreased by $0.40 per visit compared to the prior year, marking the first decline since Q4 2023. This was achieved through cost management initiatives.
IIP Revenue Grew almost 15% year-over-year, with gross profit up nearly 11%. This growth was entirely organic.
Adjusted EBITDA Increased by $2.8 million or 13.2% year-over-year, reaching $23.9 million. This reflects strong operational performance.
Net Rate Per Patient Visit Was $105.54 for Q3, slightly down from the same quarter last year but up modestly from Q2 2025. September saw the highest monthly net rate of the year, exceeding $106 per visit.
Physical Therapy Revenues Increased by $25.4 million or 17.8% year-over-year, reaching $168.1 million. Most of this growth came from acquisitions, with Metro and PT in New York contributing $19.5 million.
Physical Therapy Operating Costs Increased by $18.2 million or 15.3% year-over-year, totaling $136.9 million. However, total operating cost per visit increased by just 1%, reflecting effective cost management.
Physical Therapy Operating Margin Was 18.6%, reflecting strong operational efficiency.
IIP Net Revenues Increased by $3.7 million or 14.6% year-over-year, with income rising by $546,000 or 10.7%. This growth was entirely organic.
Corporate Expenses Were 8.5% of net revenue, slightly down from 8.6% in Q3 2024, reflecting effective cost control.
Operating Results Were $10.1 million, down slightly from $10.4 million a year ago. The decline was due to lower interest income and higher interest expenses.
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Small Caps Shine Amid Market Turmoil, Dividend Appeal Grows
- Small Cap Resilience: Despite a 0.5% decline in the S&P 500 in 2026, the Russell 2000 index has risen by 4%, demonstrating the resilience of small caps amid economic fluctuations, which attracts income-seeking investors.
- Spectrum Brands Beats Expectations: Spectrum Brands' shares have surged 27% in 2026, with a current dividend yield of 2.5%, and the company reported first-quarter results that exceeded market expectations, indicating stable profitability and a full-year revenue growth forecast of flat to low single digits.
- Concentra Group's Strong Performance: Concentra Group's stock has increased nearly 20% in 2026, with a dividend yield of about 1.1%, and preliminary fourth-quarter figures show adjusted earnings of 28 cents per share, surpassing expectations, highlighting its robust performance in occupational health services.
- Acquisition Strategy Resurgence: Concentra has refocused on its acquisition strategy, recently acquiring assets from Reliant Immediate Care in California, which illustrates its proactive positioning in industry consolidation and is expected to enhance its market competitiveness.
U.S. Physical Therapy Acquires Industrial Injury Prevention Business for $15.1 Million
- Acquisition Overview: U.S. Physical Therapy has acquired an industrial injury prevention business for approximately $15.1 million, which generates about $7.0 million in annual revenue, thereby enhancing the company's service capabilities.
- Equity Structure: In this acquisition, U.S. Physical Therapy secured a 70% stake in the business, with the remaining 30% retained by the current owner, a structure that helps maintain ongoing operations and expertise.
- Service Expansion: This acquisition allows U.S. Physical Therapy to further expand its industrial injury prevention services, strengthening its market competitiveness and meeting the growing demands of clients in this sector.
- Market Reaction: Following the acquisition announcement, U.S. Physical Therapy's stock price dipped slightly by 0.35% in after-hours trading to $83.68, reflecting a cautious market sentiment regarding the transaction.
U.S. Physical Therapy Acquires Industrial Injury Prevention Business
- Acquisition Overview: U.S. Physical Therapy acquired an industrial injury prevention business for approximately $15.1 million, which generates about $7.0 million in annual revenue, securing a 70% stake while the current owner retains 30%, thereby enhancing its market position in industrial injury prevention.
- Strategic Business Expansion: This acquisition allows U.S. Physical Therapy to expand its industrial injury prevention service lines; COO Eric Williams noted that the management team aligns well with the company's culture, and they anticipate exploring cross-selling opportunities with existing partners to enhance overall service capabilities.
- Market Coverage Enhancement: U.S. Physical Therapy operates 780 outpatient clinics across 44 states, providing various preventative and post-operative care services, and this acquisition will further solidify its market coverage in industrial injury prevention, addressing client needs for onsite services.
- Industry Outlook: With increasing demand for industrial injury prevention services, this acquisition is expected to drive revenue growth and enhance the company's competitiveness, positioning it favorably in a rapidly evolving market.
U.S. Physical Therapy Forms Strategic Alliance with NYU Langone Health
- Strategic Partnership: U.S. Physical Therapy has entered into a 10-year strategic alliance with NYU Langone Health to expand outpatient physical therapy services in Long Island and the New York metropolitan area, integrating Metro Physical & Aquatic Therapy's 60 existing clinics into NYU's clinical services network.
- Operational Timeline: The alliance is expected to become operational within the next few months, which will enhance the company's service capabilities and market share in a competitive healthcare landscape.
- Financial Impact Discussion: U.S. Physical Therapy plans to discuss the financial implications of this partnership during its year-end earnings release scheduled for late February, indicating a focus on future revenue growth that may attract investor interest.
- Stock Price Reaction: Following the announcement, U.S. Physical Therapy's stock rose by 1.83% to $83.87, reflecting positive market sentiment and confidence in the strategic alliance.
USPH Forms Strategic Alliance with NYU Langone Health
- Strategic Partnership: USPH's subsidiary Metro Physical Therapy has entered into a 10-year strategic alliance with NYU Langone Health, aimed at enhancing physical therapy services in the New York metropolitan area, expected to commence in the coming months.
- Network Expansion: This collaboration will integrate Metro Physical Therapy's existing 60 outpatient clinics into NYU Langone's clinical services network, thereby broadening the service reach of both organizations and improving patient care experiences in local communities.
- Leadership Endorsement: USPH CEO Chris Reading emphasized that the Metro Physical Therapy team is an ideal partner for NYU Langone's expansion in the New York market, with both organizations committed to delivering exceptional patient care and increasing the overall footprint of outpatient physical therapy services.
- Financial Impact Discussion: USPH plans to discuss the financial implications of this partnership during its year-end earnings release on February 25 and 26, 2026, indicating the company's focus on future growth and transparency.
YieldBoost U.S. Physical Therapy Increases from 2.4% to 15.6% Through Options Strategy
Dividend Predictability: Dividend amounts for companies like U.S. Physical Therapy, Inc. are influenced by profitability and historical trends, making future dividends uncertain, though a 2.4% annualized yield is currently expected.
Options Trading Insights: The stock's historical volatility of 34% and trading history can inform decisions on selling covered calls, particularly at the $80 strike price, balancing potential rewards against risks.
Current Market Activity: On a recent trading day, S&P 500 options showed a put volume of 859,694 contracts and call volume of 1.62 million, indicating a strong preference for call options among traders.
Author's Perspective: The opinions expressed in the article are those of the author and do not necessarily represent the views of Nasdaq, Inc.
Small Caps Shine Amid Market Turmoil, Dividend Appeal Grows
- Small Cap Resilience: Despite a 0.5% decline in the S&P 500 in 2026, the Russell 2000 index has risen by 4%, demonstrating the resilience of small caps amid economic fluctuations, which attracts income-seeking investors.
- Spectrum Brands Beats Expectations: Spectrum Brands' shares have surged 27% in 2026, with a current dividend yield of 2.5%, and the company reported first-quarter results that exceeded market expectations, indicating stable profitability and a full-year revenue growth forecast of flat to low single digits.
- Concentra Group's Strong Performance: Concentra Group's stock has increased nearly 20% in 2026, with a dividend yield of about 1.1%, and preliminary fourth-quarter figures show adjusted earnings of 28 cents per share, surpassing expectations, highlighting its robust performance in occupational health services.
- Acquisition Strategy Resurgence: Concentra has refocused on its acquisition strategy, recently acquiring assets from Reliant Immediate Care in California, which illustrates its proactive positioning in industry consolidation and is expected to enhance its market competitiveness.
U.S. Physical Therapy Acquires Industrial Injury Prevention Business for $15.1 Million
- Acquisition Overview: U.S. Physical Therapy has acquired an industrial injury prevention business for approximately $15.1 million, which generates about $7.0 million in annual revenue, thereby enhancing the company's service capabilities.
- Equity Structure: In this acquisition, U.S. Physical Therapy secured a 70% stake in the business, with the remaining 30% retained by the current owner, a structure that helps maintain ongoing operations and expertise.
- Service Expansion: This acquisition allows U.S. Physical Therapy to further expand its industrial injury prevention services, strengthening its market competitiveness and meeting the growing demands of clients in this sector.
- Market Reaction: Following the acquisition announcement, U.S. Physical Therapy's stock price dipped slightly by 0.35% in after-hours trading to $83.68, reflecting a cautious market sentiment regarding the transaction.
U.S. Physical Therapy Acquires Industrial Injury Prevention Business
- Acquisition Overview: U.S. Physical Therapy acquired an industrial injury prevention business for approximately $15.1 million, which generates about $7.0 million in annual revenue, securing a 70% stake while the current owner retains 30%, thereby enhancing its market position in industrial injury prevention.
- Strategic Business Expansion: This acquisition allows U.S. Physical Therapy to expand its industrial injury prevention service lines; COO Eric Williams noted that the management team aligns well with the company's culture, and they anticipate exploring cross-selling opportunities with existing partners to enhance overall service capabilities.
- Market Coverage Enhancement: U.S. Physical Therapy operates 780 outpatient clinics across 44 states, providing various preventative and post-operative care services, and this acquisition will further solidify its market coverage in industrial injury prevention, addressing client needs for onsite services.
- Industry Outlook: With increasing demand for industrial injury prevention services, this acquisition is expected to drive revenue growth and enhance the company's competitiveness, positioning it favorably in a rapidly evolving market.
U.S. Physical Therapy Forms Strategic Alliance with NYU Langone Health
- Strategic Partnership: U.S. Physical Therapy has entered into a 10-year strategic alliance with NYU Langone Health to expand outpatient physical therapy services in Long Island and the New York metropolitan area, integrating Metro Physical & Aquatic Therapy's 60 existing clinics into NYU's clinical services network.
- Operational Timeline: The alliance is expected to become operational within the next few months, which will enhance the company's service capabilities and market share in a competitive healthcare landscape.
- Financial Impact Discussion: U.S. Physical Therapy plans to discuss the financial implications of this partnership during its year-end earnings release scheduled for late February, indicating a focus on future revenue growth that may attract investor interest.
- Stock Price Reaction: Following the announcement, U.S. Physical Therapy's stock rose by 1.83% to $83.87, reflecting positive market sentiment and confidence in the strategic alliance.
USPH Forms Strategic Alliance with NYU Langone Health
- Strategic Partnership: USPH's subsidiary Metro Physical Therapy has entered into a 10-year strategic alliance with NYU Langone Health, aimed at enhancing physical therapy services in the New York metropolitan area, expected to commence in the coming months.
- Network Expansion: This collaboration will integrate Metro Physical Therapy's existing 60 outpatient clinics into NYU Langone's clinical services network, thereby broadening the service reach of both organizations and improving patient care experiences in local communities.
- Leadership Endorsement: USPH CEO Chris Reading emphasized that the Metro Physical Therapy team is an ideal partner for NYU Langone's expansion in the New York market, with both organizations committed to delivering exceptional patient care and increasing the overall footprint of outpatient physical therapy services.
- Financial Impact Discussion: USPH plans to discuss the financial implications of this partnership during its year-end earnings release on February 25 and 26, 2026, indicating the company's focus on future growth and transparency.
YieldBoost U.S. Physical Therapy Increases from 2.4% to 15.6% Through Options Strategy
Dividend Predictability: Dividend amounts for companies like U.S. Physical Therapy, Inc. are influenced by profitability and historical trends, making future dividends uncertain, though a 2.4% annualized yield is currently expected.
Options Trading Insights: The stock's historical volatility of 34% and trading history can inform decisions on selling covered calls, particularly at the $80 strike price, balancing potential rewards against risks.
Current Market Activity: On a recent trading day, S&P 500 options showed a put volume of 859,694 contracts and call volume of 1.62 million, indicating a strong preference for call options among traders.
Author's Perspective: The opinions expressed in the article are those of the author and do not necessarily represent the views of Nasdaq, Inc.
