Earnings release
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CONTACT: U.S. Physical Therapy, Inc. Carey Hendrickson, Chief Financial Officer email: chendrickson@usph.com Chris Reading, Chief Executive Officer (713) 297-7000 Three Part Advisors Joe Noyons (817) 778-8424 U.S. Physical Therapy Reports Third Quarter 2025 Results Houston, TX, November 5, 2025 – U.S. Physical Therapy, Inc. (“USPH” or the “Comp any”) (NYSE, NYSE Texas: USPH), a national operator of outpatient physical therapy clinics and provider of industrial injury prevention services, today reported results for the three and nine months ended September 30, 2025. FINANCIAL HIGHLIGHTS Adjusted EBITDA (1) , a non-Generally Accepted Accounting Principles (“ GAAP”) measure, was $23.9 million for the three months ended September 30, 2025 (“2025 Third Quarter”), an increase of $2.8 million, or 13.2%, from $21.1 million for the three months ended September 30, 2024 (“2024 Third Quarte r”) primarily driven by clinic additions. Net income attributable to USPH shareholders (“USPH Net Income”), a GAAP measure, was $13.1 million fo r the 2025 Third Quarter compared to $6.6 million for the 2024 Third Quarter. In accordance with GAAP, the revaluation of redeemable noncontrolling interest, net of taxes, is not included in net income but is charged directly to retained earnings. However, this change is included in the computation of earnings per shar e. Earnings per share was $0.48 and $0.39 in 2025 T hird Quarter and 2024 Third Quarter, respectively. Operating Results (1) , a non-GAAP measure, was $10.1 million for the 2025 Third Quarter compared to $10.4 million for the 2024 Third Quarter. On a per share basis, Operating Results was $0.66 for the 2025 Third Quarter compared to $0.69 for the 2024 Third Quarter. Total revenue from physical therapy operations for the 2025 Third Quarter increased $25.4 million, or 17.8%, to $168.1 million from $142.7 million for the 2024 Third Quarter. Phy sical therapy operations gross profit was $31.2 mil lion for the 2025 Third Quarter, an increase of $7.2 million, or 30.0%, fro m $24.0 million for the 2024 Third Quarter. Net rate per patient visit for the 2025 Third Quart er was $105.54 compared to $105.65 for the 2024 Third Quarter. Total patient visits were 1,554,207, which includes 30,137 home-care visits, for the 2025 Third Quarte r, an 18.0% increase from the 2024 Third Quarter. For the nine months ended September 30, 2025 (“2025 Nine Months”), the Company had 4,556,768 total patient visits, which includes 81,573 home-care vis its, compared to 3,920,388 for the nine months ende d September 30, 2024 (“2024 Nine Months”). There were no home-care visi ts in the 2024 Nine Months. Average daily patient visits per clinic, which does not include home-care visits, was 32.2 for the 202 5 Third Quarter, a record- high volume per clinic for a third quarter, compare d to 30.1 for the 2024 Third Quarter. Industrial injury prevention services (“IIP”) reven ue was $29.0 million for the 2025 Third Quarter, an increase of 14.6% as compared to the 2024 Third Quarter. IIP gross prof it was $5.7 million for the 2025 Third Quarter, an increase of $0.5 million, or 10.7%, from $5.1 million for the 2024 Third Quarter . The Company added 18 and closed seven owned and/or managed clinics in the 2025 Third Quarter bringing its total count to 779 as of September 30, 2025, compared to 700 as of Sep tember 30, 2024. On July 31, 2025, the Company acquired a 60% equity interest in a three-clinic practice with the original practice owners retaining a 40% equity interest. The business currently generates $5.3 million in annual revenue and approximately 28,000 in annual visits. The Company’s Board of Directors declared a quarterly dividend of $0.45 per share payable on December 12, 2025, to shareholders of record on November 17, 2025.
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U.S. Physical Therapy Press Release November 5, 2025 Page 2 Management reaffirmed its full-year 2025 Adjusted E BITDA guidance range of $93.0 million to $97.0 million. See “2025 Earnings Guidance” below for more information. (1) These are non-GAAP Measures. See pages 13 to 14 of this release for the definition and reconciliation of Adjusted EBITDA, Operating Results and other non-GAAP measures to the most directly comparable GAAP measure. MANAGEMENT’S COMMENTS Chris Reading, Chief Executive Officer, said, “This was a very solid quarter for us across the board w ith record visits per clinic per day, continued clinic expansion with 84 net owned additi ons since the third quarter of 2024, and sustained double-digit growth in our injury prevention business. Importantly, we are also making progress on some key initiatives that will benefit our 2026 growth and performance, along with an expected and overdue Medicare pricing lift.” 2025 Third Quarter Versus 2024 Third Quarter Additional supplemental tables of financial and performance metrics are presented on page 15 of this release. Physical Therapy Operations Three Months Ended Variance September 30, 2025 September 30, 2024 $ % (In thousands, except percentages) Revenue related to: Mature Clinics (1) $ 131,831 $ 131,532 $ 299 0.2% Clinic additions (2) 32,051 4,535 27,516 * (9) Clinics sold or closed (3) 142 3,079 (2,937) * (9) Net Patient Revenue 164,024 139,146 24,878 17.9% Other (4) 4,086 3,568 518 14.5% Total 168,110 142,714 25,396 17.8% Operating costs (5) (7) 136,917 118,715 18,202 15.3% Gross profit $ 31,193 $ 23,999 $ 7,194 30.0% Financial and operating metrics (not in thousands): Net rate per patient visit (1) $ 105.54 $ 105.65 $ (0.11) (0.1)% Patient visits (1) 1,554,207 1,317,051 237,156 18.0% Average daily visits per clinic (1) 32.2 30.1 2.1 7.0% Adjusted gross profit margin (4)(5)(6) 18. 6% 19.2% Salaries and related costs per visit (6)(8) $ 62.07 $ 62.47 $ (0. 40 ) (0. 6)% Operating costs per visit (6)(8) $ 86. 88 $ 86.00 $ 0. 88 1.0 % (1) See Glossary of Terms - Revenue Metrics for definitions. (2) Includes 36 owned clinics added during the nine months ended September 30, 2025, and 96 owned clinics added during the year ended December 31, 2024. See Clinic Count Roll Forward on page 15 for additional information. (3) Includes 13 owned clinics closed during the nin e months ended September 30,2025 and 45 owned clinics closed during the year ended December 31, 2024. See Clinic Count Roll Forward on page 15 for additional information. (4) Includes revenues from management contracts. (5) Includes costs from management contracts. (6) Excludes $0.1 million of certain incentive cost s related to the Metro acquisition and gains or los ses related to clinic closures, as applicable. See the reconciliation of non -GAAP measures to the most directly comparable GAAP measure on page 14 . (7) Amortization of certain intangible assets was r eallocated between the physical therapy operations and IIP segments. Prior year amounts were reallocated to conform with current presentation. (8) Per visit costs exclude management contract costs. (9) Not meaningful. Net revenue from physical therapy operations increased $25.4 million, or 17.8%, to $168.1 million for the 2025 Third Quarter from $142.7 million for the 2024 Third Quarter. This growth was due to the increase in visits from the 84 net owned clinics added since the comparable prior year period. Net rate per patient visit for the 2025 Third Quarter was $105.54 compared to $105 .65 for the 2024 Third Quarter. Operating costs from physical therapy operations in creased $18.2 million, or 15.3%, to $136.9 million for the 2025 Third Quarter from $118.7 million for the 2024 Third Quarter primarily driven by the 84 net owned clinics added since the comparable prior year period. Excluding certain incentive costs related to the Me tro acquisition and gains and losses related to cli nic closures for both periods, salaries
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U.S. Physical Therapy Press Release November 5, 2025 Page 3 and related costs per visit was $62.07 for the 2025 Third Quarter compared to $62.47 for the 2024 Third Quarter while total operating costs per visit was $86.88 in the 2025 Third Quarter comp ared to $86.00 in the comparable prior year period. Gross profit from physical therapy operations incre ased $7.2 million or 30.0% to $31.2 million for the 2025 Third Quarter as compared to $24.0 million for the 2024 Third Quarter. Excluding certain incentive costs related to the Metro acqui sition and gains and losses related to clinic closures for both periods, the adjusted gros s profit margin increased $3.7 million or 13.5% ove r the comparable periods. See the reconciliation of non-GAAP measures to the more dir ectly comparable GAAP measure provided on pages 13 to 14 for more information. Industrial Injury Prevention Services Three Months Ended Variance September 30, 2025 September 30, 2024 $ % (In thousands, except percentages) Net revenue $ 29,022 $ 25,319 $ 3,703 14.6% Operating costs (1) 23,343 20,187 3,156 15.6% Gross profit $ 5,679 $ 5,132 $ 547 10.7% Gross profit margin 19.6% 20.3% (1) Amortization of certain intangible assets was reallocated between the physical therapy operations and IIP segments. Prior year amounts were reallocated to conform with current presentation. IIP revenue increased $3.7 million, or 14.6%, to $2 9.0 million for the 2025 Third Quarter as compared to $25.3 million for the 2024 Third Quarter. Gross profit from IIP operations for the 2 025 Third Quarter increased $0.5 million, or 10.7%, to $5.7 million from $5.1 million for the 2024 Third Quarter. Gross profit margin from IIP operations was 19.6% for the 2025 Third Quarter compared to 20.3% for the 2024 Third Quarter. Corporate Office Costs and Other Expenses Corporate office costs increased to $17.4 million f or the 2025 Third Quarter from $14.4 million for th e 2024 Third Quarter, primarily to support the larger number of clinics, as well as costs associated with acquisition integration and the implementation of a new financial and human resources system. Implementation costs associ ated with the new financial and human resources sys tem are expected to continue through the end of 2026. As a percentage of net revenue, corporate office costs was 8.8% for the 2025 Third Quarter compared to 8.6% for the 2024 Third Quarter. Excluding the acquisition i ntegration costs and the costs associated with the implementation of the new financial and human resources system of $0.7 million, corpora te office costs was 8.5% of net revenue for the 2025 Third Quarter. The Company revalued contingent consideration related to certain acquisitions and recognized a net gain (a decrease in the related liabilities) of $5.9 million for the 2025 Third Quarter compared to a net loss (an increase in the related liabilit ies) of $1.9 million for the 2024 Third Quarter. Operating income was $25.3 million for the 2025 Thi rd Quarter compared to $12.8 million for the 2024 T hird Quarter. Excluding the impact of change in value of contingent considerati on as discussed above, operating income increased t o $19.5 million for the 2025 Third Quarter from $14.7 million in the 2024 Third Quarte r. Interest expense increased by $0.4 million to $2.4 million for the 2025 Third Quarter compared to $2.0 million for the 2024 Third Quarter due to a higher average outstanding balance on our revolving credit facility for the 2025 Third Quarte r. The interest rate associated with borrowings on the Company’s credit facilities was 5 .0% for the 2025 Third Quarter and 4.7% for the 202 4 Third Quarter, with an all-in- effective interest rate (including all associated costs), of 5.7% and 5.4% over the same periods, resp ectively. Interest income was less than $0.1 million during the 2025 Third Quarter compared to $1.0 million for the 2024 Third Quarter as the excess cash on the balance sheet at the end of the 2024 Th ird Quarter has since been deployed to fund acquisitions. The Company revalued a put-right liability related to the future purchase of an IIP business and recog nized a net non-cash expense (an increase in the related liability) of $0.7 million for the 2025 Third Quarter compared to net non-cash gain (a decrease in the related liability) of $0.2 million for the 2024 Third Quarter. The provision for income taxes was $5.2 million for the 2025 Third Quarter compared to $2.6 million during the 2024 Third Quarter while the effective tax rate was 28.5% and 27.9% over the same periods, respectively.
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U.S. Physical Therapy Press Release November 5, 2025 Page 4 USPH Net Income and Non-GAAP Measures Net income attributable to non-controlling interest (temporary and permanent) was $4.5 million for the 2025 Third Quarter compared to $3.1 million for the 2024 Third Quarter. USPH Net Income was $13.1 million for the 2025 Thir d Quarter compared to $6.6 million for the 2024 Thi rd Quarter. In accordance with GAAP, the revaluation of redeemable noncontrolling interest, net of taxes, is not included in net inco me but is charged directly to retained earnings; however, this change is included in the c omputation of earnings per share. Earnings per shar e was $0.48 for the 2025 Third Quarter and $0.39 the 2024 Third Quarter. Non-GAAP Adjusted EBITDA (1) was $23.9 million for the 2025 Third Quarter, an i ncrease of $2.8 million or 13.2%, from $21.1 millio n for the 2024 Third Quarter. Non-GAAP Operating Resu lts (1) was $10.1 million, or $0.66 per share, for the 202 5 Third Quarter compared to $10.4 million, or $0.69 per share, for the 2024 Third Quarter. (1) These are Non-GAAP Measures. See pages 13 to 14 of this release for the definition and reconciliation of Adjusted EBITDA, Operating Results, and other non-GAAP measures to the most directly comparable GAAP measure. 2025 Nine Months Versus 2024 Nine Months Total net revenue for the 2025 Nine Months increase d $87.4 million, or 17.8%, to $578.3 million from $ 490.9 million for the 2024 Nine Months while operating costs increased $69.2 million, or 17.3%, to $468.7 million from $399.5 million over the same periods, respectively. Gross profit for the 2025 Nine Months was $109.6 million, or 18.9% of net revenue, compared to $91.4 million for the 2024 Nine Months, or 18.6% of net revenue. Revenues from physical therapy operations increased $72.2 million, or 17.2% in the 2025 Nine Months ve rsus the comparable prior year period due to increased volume from the 84 net owne d clinics added since the comparable prior year per iod as well as an increase in net rate per patient visit to $105.50 for 2025 Nine Mon ths from $104.71 for 2024 Nine Months. Gross profit from physical therapy operations increased $15.0 million, or 19.3%, to $92.9 million for the 2025 Nine Months from $77.8 million for th e 2024 Nine Months. Excluding certain incentive costs related to the Metro acquisition and losses related to clinic closures, adjusted gross profit (1) , increased $11.5 million or 14.0% over the comparable periods. Revenues from IIP increased $15.2 million, or 21.6% , from $70.3 million for the 2024 Nine Months to $8 5.5 million for the 2025 Nine Months. Gross profit from IIP operations increased $3.1 million, or 23.0%, from $13.6 million in the 2024 Nine Months to $16.7 million for the 2025 Nine Months. The gross profit margin from IIP operations was 19.5% for the 2025 Nine Mon ths compared to 19.3% for the 2024 Nine Months. Excluding the IIP acquisition mad e in April 2024, IIP revenue increased by $10.5 mil lion or 16.0% in the 2025 Nine Months and gross profit increased $2.0 million or 1 6.1% in the 2025 Nine Months over the comparable pr ior year period. Corporate office costs were $51.1 million for the 2025 Nine Months, compared to $42.7 million for the 2024 Nine Months. As a percentage of net revenue, corporate office costs were 8.8% an d 8.7% over the same periods, respectively. Excludi ng the acquisition integration costs and the costs associated with the implementation of the new financial and human resources system of $1 .8 million, corporate office costs was 8.5% of net revenue for the 2025 Nine Months. The Company revalued contingent consideration related to certain acquisitions and recognized a net gain (a decrease in the related liabilities) of $11.5 million for the 2025 Nine Months compared to a net loss of $5.3 million for the 2024 Nine Mon ths (an increase in the related liabilities). Operating income was $69.9 million for the 2025 Nine Months compared to $43.3 million for the 2024 Nine Months. Excluding the impact of change in value of contingent consideration disc ussed above, operating income increased to $58.4 mi llion for the 2025 Nine Months from $48.7 million for the 2024 Nine Months, an inc rease of 20.0%. Other expenses were $7.1 million for the 2025 Nine Months compared to $1.5 million for the 2024 Nine Months, with the increase primarily due to higher interest expense as a result of incre ased borrowings and lower interest income as the ex cess cash on the balance sheet as of September 30, 2024 has been deployed to fund acquisitions since that time. Additionally, the Company revalued a put-right liability related to the future purchase of an IIP business and recog nized a net non-cash expense (an increase in the re lated liability) of $1.4 million for the 2025 Nine Months compared to net non-cash expense o f $0.1 million for the 2024 Nine Months. The provision for income tax was $14.0 million for the 2025 Nine Months and $8.8 million for the 2024 Nine Months. The effective tax rate was 28.4% over the comparable periods.
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U.S. Physical Therapy Press Release November 5, 2025 Page 5 USPH Net Income was $35.4 million for the 2025 Nine Months as compared to $22.2 million for the 2024 Nine Months while earnings per share was $1.85 for the 2025 Nine Months compared t o $1.32 for the 2024 Nine Months. Non-GAAP Adjusted EBITDA (1) increased $10.3 million to $70.3 million for the 2025 Nine Months from $60.0 million for the 2024 Nine Months while non-GAAP Operating Results (1) increased $0.6 million to $29.7 million, or $1.96 per share, for the 2025 Nine Months from $29.2 million, or $1.94 per share, for the 2024 Nin e Months. (1) These are Non-GAAP Measures. See pages 13 to 14 of this release for the definition and reconciliation of Adjusted EBITDA, Operating Results, and other non-GAAP measures to the most directly comparable GAAP measure. For additional information on 2025 Nine Months results, please refer to the Company’s Quarterly Report on Form 10-Q which is expected to be filed with the Securities and Exchange Commis sion on November 7, 2025. BALANCE SHEET AND CASH FLOW Total cash and cash equivalents were $31.1 million as of September 30, 2025, compared to $41.4 million as of December 31, 2024, and $117.0 million as of September 30, 2024. The Compa ny had $159.6 million in outstanding borrowings and $148.5 million in available credit under the Company’s revolving facility as of September 30, 2025. This compares to $151.6 milli on of outstanding borrowings and $164.0 million in available credit under the Compan y’s revolving facility as of December 31, 2024. RECENT ACQUISITIONS On July 31, 2025, the Company acquired a 60% equity interest in a three-clinic practice with the pract ice owners retaining a 40% equity interest. The business currently generates approxim ately $5.3 million in annual revenue and approximately 28,000 in annual visits. The Company’s strategy is to continue acquiring mul ti-clinic outpatient physical therapy practices and home-care physical and speech therapy practices, to develop outpatient physical t herapy clinics as satellites in existing partnershi ps, and to continue acquiring companies that provide industrial injury prevention services. 2025 EARNINGS GUIDANCE Management reaffirmed its full-year 2025 Adjusted E BITDA guidance range of $93.0 million to $97.0 mill ion, reflecting third-quarter results and the Company’s current expectations for the remainder of the year. QUARTERLY DIVIDEND The Company’s Board of Directors declared a quarter ly dividend of $0.45 per share payable on December 12, 2025, to shareholders of record on November 17, 2025. CONFERENCE CALL INFORMATION U.S. Physical Therapy’s management will host a conf erence call at 10:30 a.m. ET / 9:30 a.m. CT, on Nov ember 6, 2025, to discuss the Company’s financial results for the three and nine months ended September 30, 2025. Interested parties may participate in the call by dialing (800) 245-3047 (Primary) or (203) 518-9765 (Alternate) and conference ID of USPHQ325. Please c all 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 4, 2026, on the Company’s website. FORWARD-LOOKING STATEMENTS This press release contains statements that are con sidered to be forward-looking within the meaning un der 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 a nd 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 suc h 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-l ooking statements as a result of certain risks, unc ertainties, and factors, which include, but are not limited to: • changes in Medicare rules and guidelines and reimb ursement or failure of our clinics to maintain their Medicare certification and/or
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U.S. Physical Therapy Press Release November 5, 2025 Page 6 enrollment status; • revenue we receive from Medicare and Medicaid bein g subject to potential retroactive reduction; • changes in reimbursement rates or payment methods from third party payors including government agenci es, and changes in the deductibles and co-pays owed by patients; • private third-party payors for our services may a dopt payment policies that could limit our future revenue and profitability; • compliance with federal and state laws and regulat ions relating to the privacy of individually identi fiable patient information, and associated fines and penalties for failure to comply; • compliance with state laws and regulations relatin g to the corporate practice of medicine and fee spl itting, and associated fines and penalties for failure to comply ; • competitive, economic or reimbursement conditions in our markets which may require us to reorganize o r close certain clinics and thereby incur losses and/or closure costs including the possible write-down or write-off of goodwill a nd other intangible assets; • the impact of future public health crises and epid emics/pandemics, such as was the case with the nove l strain of COVID-19 and its variants; • 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 m andates at the federal, state and/or local level, which could have an adverse impact on staffing, revenue, costs and the results of oper ations; • 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 nation al healthcare reform; • the ability to control variable interest entities for which we do not have a direct ownership; • business and regulatory conditions including feder al and state regulations; • governmental and other third party payor inspectio ns, 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 lim ited to inflationary and recessionary periods; • actual or perceived events involving banking volat ility or limited liability, 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 reta ining qualified employees; • availability and cost of qualified physical therap ists; • competitive environment in the industrial injury p revention services business, which could result in the termination or non-renewal of contractual service arrangements and other adver se 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 wit h adequate safeguards to protect against cyber-atta cks; • a security breach of our or our third party vendor s’ 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 He alth Act; • maintaining clients for which we perform managemen t, industrial injury prevention related services, a nd 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; • maintaining necessary insurance coverage; • availability, terms, and use of capital; and • weather and other seasonal factors. Many factors are beyond our control. Given these un certainties, you should not place undue reliance on our forward-looking statements. For additional information regarding these and othe r 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 Fo rm 10-K for the year ended December 31, 2024, filed with the Securities and Ex change Commission (“SEC”) on March 3, 3025 and any risk factors contained in subsequent quarterly and annual reports we file wit h 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, ex cept as required by law.
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U.S. Physical Therapy Press Release November 5, 2025 Page 7 GLOSSARY OF TERMS – REVENUE METRICS Mature clinics are clinics (physical clinic locations and home-care business units) opened or acquired prior to January 1, 2024, and are still operating as of the balance sheet date. Net rate per patient visit is net patient revenue related to our physical the rapy operations divided by total number of patient visits (defined below) during the periods presented. Patient visits is the number of unique patient visits during the periods presented for both physical clinic locations and home-care. Average daily visits per clinic per day is patient visits (excluding home-care visits) 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 clinics in operation during the periods presented. ABOUT U.S. PHYSICAL THERAPY, INC. Founded in 1990, U.S. Physical Therapy, Inc. owns a nd/or manages 779 outpatient physical therapy clini cs in 44 states. USPH clinics 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 in jury prevention and rehabilitation, performance opt imization, post-offer employment testing, functional capacity evaluations, and ergon omic assessments. More information about U.S. Physical Therapy, Inc. is available at www.usph.com. The information inclu ded on that website is not incorporated into this press release.
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U.S. Physical Therapy Press Release November 5, 2025 Page 8 U. S. PHYSICAL THERAPY, INC. AND SUBSIDIARIES UNAUDITED CONSOLIDATED STATEMENTS OF INCOME (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) Three Months Ended Nine Months Ended September 30, 2025 September 30, 2024 September 30, 2025 September 30, 2024 Net patient revenue $ 164,024 $ 139,146 $ 480,754 $ 410,492 Other revenue 33,108 28,887 97,510 80,406 Net revenue 197,132 168,033 578,264 490,898 Operating cost: Salaries and related costs 116,619 99,835 341,656 289,900 Rent, supplies, contract labor and other 36,115 29,756 104,086 88,104 Depreciation and amortization 5,495 4,158 16,776 12,326 Provision for credit losses 2,073 1,721 5,916 5,065 (Gain) loss on clinic closures - lease and other (42) 3,432 269 4,109 Total operating cost 160,260 138,902 468,703 399,504 Gross profit 36,872 29,131 109,561 91,394 Corporate office costs 17,414 14,385 51,135 42,719 (Gain) loss on change in fair value of contingent earn-out consideration (5,872) 1,899 (11,484) 5,332 Operating income 25,330 12,847 69,910 43,343 Other income (expense): Interest expense, debt and other (2,408) (2,018) (7,109) (5,966) Interest income from investments 33 1,018 85 3,635 Change in revaluation of put -right liability (663) 168 (1,406) (136) Equity in earnings of unconsolidated affiliate 361 231 1,155 750 Loss on sale of partnership - - (123) - Other 222 90 344 261 Total other expense (2,455) (511) (7,054) (1,456) Income before taxes 22,875 12,336 62,856 41,887 Provision for income taxes 5,233 2,559 14,026 8,781 Net income 17,642 9,777 48,830 33,106 Less: Net income attributable to non -controlling interest: Redeemable non -controlling interest - temporary equity (3,790) (1,998) (9,716) (7,539) Non -controlling interest - permanent equity (714) (1,151) (3,684) (3,387) (4,504) (3,149) (13,400) (10,926) Net income attributable to USPH shareholders $ 13,138 $ 6,628 $ 35,430 $ 22,180 Basic and diluted earnings per share attributable to USPH shareholders (1) $ 0.48 $ 0.39 $ 1.85 $ 1.32 Shares used in computation – basic and diluted 15,204 15,077 15,178 15,055 Dividends declared per common share $ 0.45 $ 0.44 $ 1.35 $ 1.32 (1) See page 13 of this press release for the calculation of basic and diluted earnings per share.
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U.S. Physical Therapy Press Release November 5, 2025 Page 9 U. S. PHYSICAL THERAPY, INC. AND SUBSIDIARIES UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (IN THOUSANDS) Three Months Ended Nine Months Ended September 30, 2025 September 30, 2024 September 30, 2025 September 30, 2024 Net income $ 17,642 $ 9,777 $ 48,830 $ 33,106 Other comprehensive income: Unrealized loss on cash flow hedge (360) (3,687) (2,489) (1,937) Tax effect at statutory rate (federal and state) 92 942 636 495 Comprehensive income $ 17,374 $ 7,032 $ 46,977 $ 31,664 Comprehensive income attributable to non -controlling interest (4,504) (3,149) (13,400) (10,926) Comprehensive income attributable to USPH shareholders $ 12,870 $ 3,883 $ 33,577 $ 20,738
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U.S. Physical Therapy Press Release November 5, 2025 Page 10 U. S. PHYSICAL THERAPY, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEET (IN THOUSANDS, EXCEPT SHARES AND PER SHARE AMOUNTS) September 30, 2025 December 31, 2024 ASSETS (unaudited) Current assets: Cash and cash equivalents $ 31,102 $ 41,362 Patient accounts receivable, less provision for credit losses of $4,263 and $3,506, respectively 67,629 59,040 Accounts receivable - other 23,672 26,626 Other current assets 16,032 10,555 Total current assets 138,435 137,583 Fixed assets: Furniture and equipment 67,522 68,128 Leasehold improvements 58,015 51,105 Fixed assets, gross 125,537 119,233 Less accumulated depreciation and amortization (91,315) (87,093) Fixed assets, net 34,222 32,140 Operating lease right -of -use assets 139,926 133,936 Investment in unconsolidated affiliate 12,289 12,190 Goodwill 690,412 667,152 Other identifiable intangible assets, net 176,429 179,311 Other assets 4,557 5,155 Total assets $ 1,196,270 $ 1,167,467 LIABILITIES, REDEEMABLE NON-CONTROLLING INTEREST, USPH SHAREHOLDERS’ EQUITY AND NON -CONTROLLING INTEREST Current liabilities: Accounts payable - trade $ 7,417 $ 5,936 Accrued expenses 56,901 59,513 Current portion of operating lease liabilities 41,960 39,835 Current portion of term loan and notes payable 8,802 10,999 Total current liabilities 115,080 116,283 Notes payable, net of current portion 576 903 Revolving facility 26,500 11,000 Term loan, net of current portion and deferred financing costs 124,384 130,627 Deferred taxes 35,695 29,465 Operating lease liabilities, net of current portion 106,178 101,868 Other long -term liabilities 5,414 18,275 Total liabilities 413,827 408,421 Redeemable non -controlling interest - temporary equity 277,661 269,025 Commitments and Contingencies U.S. Physical Therapy, Inc. ("USPH") shareholders’ equity: Preferred stock, $.01 par value, 500,000 shares authorized, no shares issued and outstanding - - Common stock, $.01 par value, 20,000,000 shares authorized, 17,418,856 and 17,309,120 shares issued, respectively 172 172 Additional paid -in capital 296,806 290,321 Accumulated other comprehensive gain 945 2,799 Retained earnings 237,272 227,265 Treasury stock at cost, 2,214,737 shares (31,628) (31,628) Total USPH shareholders’ equity 503,567 488,929 Non -controlling interest - permanent equity 1,215 1,092 Total USPH shareholders' equity and non -controlling interest - permanent equity 504,782 490,021 Total liabilities, redeemable non -controlling interest, USPH shareholders' equity and non -controlling interest - permanent equity $ 1,196,270 $ 1,167,467
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U.S. Physical Therapy Press Release November 5, 2025 Page 11 U. S. PHYSICAL THERAPY, INC. AND SUBSIDIARIES UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS (IN THOUSANDS) Nine Months Ended September 30, 2025 September 30, 2024 OPERATING ACTIVITIES Net income including non -controlling interest $ 48,830 $ 33,106 Adjustments to reconcile net income including non-controlling interest to net cash provided by operating activities: Depreciation and amortization 17,756 12,996 Provision for credit losses 5,916 5,065 Equity -based awards compensation expense 6,151 5,837 Amortization of debt issue costs 315 317 Change in deferred income taxes 11,163 605 Change in revaluation of put -right liability 1,406 136 Change in fair value of contingent earn -out consideration (11,484) 5,332 Equity of earnings in unconsolidated affiliate (1,155) (750) Loss on sale of fixed assets 420 280 Loss on sale of a partnership 123 - Other - (169) Changes in operating assets and liabilities: Patient accounts receivable, net (13,604) (8,870) Accounts receivable - other 3,559 (960) Other current and long term assets (8,155) (1,808) Accounts payable and accrued expenses (10,908) 5,003 Other long -term liabilities (207) (589) Net cash provided by operating activities 50,126 55,531 INVESTING ACTIVITIES Purchase of fixed assets (10,145) (6,697) Purchase of interest in businesses, net of cash acquired (15,214) (41,196) Purchase of redeemable non -controlling interest, temporary equity (8,579) (6,957) Purchase of non -controlling interest, permanent equity (196) (756) Proceeds from the sale of non -controlling interest, permanent equity 9 26 Proceeds from the sale of partnership interest - redeemable non -controlling interest, temporary equity 149 229 Repayment of notes receivable related to sale s of redeemable non -controlling interest 387 451 Proceeds from the sale of partnership 700 - Distributions from unconsolidated affiliate 1,089 838 Other 531 (535) Net cash (used in) investing activities (31,269) (54,597) FINANCING ACTIVITIES Proceeds from revolving facility 146,500 - Payments on revolving facility (131,000) - Distributions to non -controlling interest, permanent and temporary equity (14,610) (11,399) Cash dividends paid to shareholders (20,520) (19,898) Payments on term loan (7,500) (3,750) Principal payments on notes payable (1,994) (1,726) Other 7 (27) Net cash (used in) financing activities (29,117) (36,800) Net (decrease) in cash and cash equivalents (10,260) (35,866) Cash and cash equivalents - beginning of period 41,362 152,825 Cash and cash equivalents - end of period $ 31,102 $ 116,959 SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION Cash paid during the period for: Income taxes $ 11,809 $ 5,759 Interest paid 7,305 5,630 Non -cash investing and financing transactions during the period: Purchase of businesses - seller financing portion 300 955 Fair market value of initial contingent consideration related to purchase of businesses 5,731 6,440 Offset of notes receivable associated with purchase of redeemable non -controlling interest 254 627 Notes payable related to purchase of redeemable non-controlling interest, temporary equity 135 66 Notes receivable related to sale of redeemable non -controlling interest, temporary equity 2,017 2,075 Notes receivable related to the sale of non -controlling interest, permanent equity 29 282
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U.S. Physical Therapy Press Release November 5, 2025 Page 12 U.S. PHYSICAL THERAPY, INC. AND SUBSIDIARIES ADJUSTED EBITDA AND OPERATING RESULTS The following tables provide details of the basic and diluted earnings per share computation and reconcile net income attributable to USPH shareholders calculated in accordance with GAAP to Adjusted EBITDA and Operating Results. The tables also provide a reconciliation of additional non-GAAP measures to the most comparable GAAP measure. Management believes providing Adjusted EBITDA and Operating Results to investors is useful for comparing the Co mpany's period-to-period results as well as for com paring with other similar businesses since most do not have redeemable instruments and t herefore have different equity structures. Manageme nt uses Adjusted EBITDA and Operating Results, which eliminate certain items de scribed above that can be subject to volatility and unusual costs, as the principal measures to evaluate and monitor financial performa nce period over period. Adjusted EBITDA, a non-GAAP measure, is defined as net income attributable to USPH shareholders before interest income, interest expense, taxes, depreciation, amortization, change in fair value of contingent earn-out consideration, changes in revaluation of put-right liability, equity-based awards compensation expense , clinic closure costs, business acquisition relate d costs, costs related to a one-time financial and human resources systems upgrade, loss on sale of a partnership and other income and rela ted portions for non-controlling interests. Operating Results, a non-GAAP measure, equals net i ncome attributable to USPH shareholders less, chang es in revaluation of a put-right liability, clinic closure costs, loss on sale of a partnership, changes in fair value of contingent ea rn-out consideration, business acquisition related costs, costs related to a one-time financia l and human resources systems upgrade and any alloc ations to non-controlling interests, all net of taxes. Operating Results per share also excludes the impact of the revaluation of redeemabl e non-controlling interest and the associated tax impact. Adjusted EBITDA and Operating Results are not measu res of financial performance under GAAP. Adjusted E BITDA, Operating Results and other non-GAAP measures should not be considere d in isolation or as an alternative to, or substitu te for, net income attributable to USPH shareholders presented in the consolidated fin ancial statements.
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U.S. Physical Therapy Press Release November 5, 2025 Page 13 U. S. PHYSICAL THERAPY, INC. AND SUBSIDIARIES ADJUSTED EBITDA, OPERATING RESULTS AND EARNINGS PER SHARE (IN THOUSANDS, EXCEPT PER SHARE DATA) Three Months Ended Nine Months Ended September 30, 2025 September 30, 2024 September 30, 2025 September 30, 2024 (In thousands, except per share data) Adjusted EBITDA (a non-GAAP measure) Net income attributable to USPH shareholders $ 13,138 $ 6,628 $ 35,430 $ 22,180 Adjustments: Provision for income taxes 5,233 2,559 14,026 8,781 Depreciation and amortization 5,832 4,387 17,756 12,996 Interest expense, debt and other, net 2,408 2,018 7,109 5,966 Equity -based awards compensation expense 2,263 1,921 6,151 5,837 Interest income from investments (33) (1,018) (85) (3,635) Change in revaluation of put -right liability 663 (168) 1,406 136 (Gain) loss on change in fair value of contingent earn -out consideration (5,872) 1,899 (11,484) 5,332 Clinic closure costs (1) (42) 3,432 269 4,109 Business acquisition related costs (2) 70 314 870 314 ERP implementation costs (3) 664 - 885 - Loss on sale of partnership - - 123 - Other income (222) (90) (344) (261) Allocation to non -controlling interests (247) (811) (1,856) (1,789) $ 23,855 $ 21,071 $ 70,256 $ 59,966 Operating Results (a non-GAAP measure) Net income attributable to USPH shareholders $ 13,138 $ 6,628 $ 35,430 $ 22,180 Adjustments: (Gain) loss on change in fair value of contingent earn -out consideration (5,872) 1,899 (11,484) 5,332 Change in revaluation of put -right liability 663 (168) 1,406 136 Clinic closure costs (1) (42) 3,432 269 4,109 Business acquisition related costs (2) 70 314 870 314 ERP implementation costs (3) 664 - 885 - Loss on sale of partnership - - 123 - Allocation to non -controlling interests 397 (429) 279 (513) Tax effect at statutory rate (federal and state) 1,053 (1,290) 1,955 (2,396) $ 10,071 $ 10,386 $ 29,733 $ 29,162 Operating Results per share (a non -GAAP measure) $ 0.66 $ 0.69 $ 1.96 $ 1.94 Earnings per share Computation of earnings per share - USPH shareholders: Net income attributable to USPH shareholders $ 13,138 $ 6,628 $ 35,430 $ 22,180 Charges to retained earnings: Revaluation of redeemable non -controlling interest (7,918) (1,097) (9,821) (3,158) Tax effect at statutory rate (federal and state) 2,023 280 2,509 807 $ 7,243 $ 5,811 $ 28,118 $ 19,829 Earnings per share (basic and diluted) $ 0.48 $ 0.39 $ 1.85 $ 1.32 Shares used in computation – basic and diluted 15,204 15,077 15,178 15,055 (1) Costs associated with the closure of 13 owned clinics during the 2025 Nine Months and 43 owned clinics during the 2024 Nine Months. See Clinic Count Roll Forward on page 15 for additional information. (2) Primarily consists of retention bonuses, legal and consulting expenses related to the acquisitions of equity interests in certain partnerships. (3) Consists of costs related to a one -time financial and human resources systems upgrade.
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U.S. Physical Therapy Press Release November 5, 2025 Page 14 U. S. PHYSICAL THERAPY, INC. AND SUBSIDIARIES RECONCILIATION OF NON-GAAP MEASURES TO THE MOST COM PARABLE GAAP MEASURES (IN THOUSANDS, EXCEPT PER SHARE DATA AND PERCENTAGE S) The tables below reconcile other non-GAAP measures to the most directly comparable GAAP measures for the 2025 Third Quarter and the 2025 Nine Months. Three Months Ended September 30, 2025 Three Months Ended September 30, 2024 Reported (GAAP) Adjustments (1) Adjusted (Non -GAAP) Reported (GAAP) Adjustments (1) Adjusted (Non -GAAP) (in thousands, except percentages) Segment information - Physical Therapy Operations Salaries and related costs (2) $ 96,470 $ 8 $ 96 ,478 $ 82,281 $ - $ 82,281 Operating costs (2) (3) $ 134,979 $ 50 $ 13 5,029 $ 116,698 $ (3,432) $ 113,266 Gross profit $ 31,193 $ (50 ) $ 31, 143 $ 23,999 $ 3,432 $ 27,431 Gross profit margin 18.6% * 18. 6% 16.8% * 19.2% Number of visits 1,554,207 1,554,207 1,317,051 1,317,051 Salaries and related costs per visit (2) $ 62.07 * $ 62.07 $ 62.47 $ - $ 62.47 Operating costs per visit (2) (3) $ 86.85 $ 0. 03 $ 86. 88 $ 88.61 $ (2.61) $ 86.00 Nine Months Ended September 30, 2025 Nine Months Ended September 30, 2024 Reported (GAAP) Adjustments (1) Adjusted (Non -GAAP) Reported (GAAP) Adjustments (1) Adjusted (Non -GAAP) (in thousands, except percentages) Segment information - Physical Therapy Operations Salaries and related costs (2) $ 282,146 $ (286 ) $ 281, 860 $ 239,829 $ - $ 239,829 Operating costs (2)(3) $ 394,060 $ (555 ) $ 393, 505 $ 336,917 $ (4,109) $ 332,808 Gross profit $ 92,877 $ 555 $ 93, 43 2 $ 77,830 $ 4,109 $ 81,939 Gross profit margin 18.8% * 19.0% 18.5% * 19.5% Number of visits 4,556,768 4,556,768 3,920,388 3,920,388 Salaries and related costs per visit (2) $ 61.92 $ (0. 06 ) $ 61.8 6 $ 61.17 $ - $ 61.17 Operating costs per visit (2)(3) $ 86.48 $ (0.1 2) $ 86.3 6 $ 85.94 $ (1.05) $ 84.89 (1) Certain incentive costs related to the Metro acquisition and gains or losses related to clinic closures , as applicable . (2) Excludes costs related to management contracts. (3) Amortization of certain intangible assets was reallocated between the physical therapy operations and IIP segments. Prior year amounts were reallocated to conform with current presentation. * Not meaningful
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U.S. Physical Therapy Press Release November 5, 2025 Page 15 U. S. PHYSICAL THERAPY, INC. AND SUBSIDIARIES SUPPLEMENTAL FINANCIAL AND PERFORMANCE METRICS Revenue Metrics Net Rate Per Patient Visit (1) Patient Visits (1) Average Visits Per Clinic Per Day (2) 2025 2024 2025 2024 2025 2024 First quarter $ 105.66 $ 103.37 1,443,805 1,268,002 31.2 29.5 Second quarter $ 105.33 $ 105.05 1,558,756 1,335,335 32.7 30.6 Third quarter $ 105.54 $ 105.65 1,554,207 1,317,051 32.2 30.1 Fourth quarter $ 104.73 1,432,801 31.6 Year $ 104.71 4,556,768 5,353,189 30.4 (1) See definition of the metrics above in the Glossary of Terms – Revenue Metrics on page 7. (2) Excludes home -care visits. Clinic Count Roll Forward (1) 2025 2024 Owned Managed Total Owned Managed Total Number of clinics, beginning of period 722 39 761 671 43 714 Q1 additions 14 - 14 14 - 14 Q1 closed or sold (7) (2) (9) (6) (2) (8) Number of clinics, end of period 729 37 766 679 41 720 Q2 additions 6 - 6 7 - 7 Q2 closed or sold (3) (1) (4) (5) - (5) Number of clinics, end of period 732 36 768 681 41 722 Q3 additions 16 2 18 12 - 12 Q3 closed or sold (3) (4) (7) (32) (2) (34) Number of clinics, end of period 745 34 779 661 39 700 Q4 additions 63 - 63 Q4 closed or sold (2) - (2) Number of clinics, end of period 722 39 761 Year -to -date 2025 and full -year 2024 additions 36 2 38 96 - 96 Year -to -date 2025 and full -year 2024 sold or closed (13) (7) (20) (45) (4) (49) (1) Excludes the home care busines s.