Earnings release
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USPh ONE PARTNER TM CONTACT : U.S. Physical Therapy , Inc. Jason Curtis , Interim Chief Financial Officer email : jcurtis@usph.com Chris Reading , Chief Executive Officer ( 713 ) 297-7000 Three Part Advisors Joe Noyons ( 817 ) 778-8424 USPH Reports Second Quarter 2026 Results , Reaffirms Full Year Guidance Houston , TX , August 5 , 2026 – 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 six months ended June 30 , 2026 . • • Total net revenue of $ 214.1 million for the second quarter ended June 30 , 2026 ( " Q2 2026 " ) , an 8.5 % increase over the second quarter ended June 30 , 2025 ( " Q2 2025 " ) . Net income attributable to USPH shareholders of $ 9.9 million for Q2 2026 compared to $ 12.4 million for Q2 2025 with earnings per share of $ 0.25 compared to earnings per share of $ 0.58 for the same periods , respectively . 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 . Operating results ( ¹ ) , a non - GAAP measure , of $ 11.3 million for Q2 2026 compared to $ 12.4 million for Q2 2025 , with operating results per share of $ 0.75 compared to $ 0.81 for the same periods , respectively . Adjusted EBITDA ( ) , a non - GAAP measure , of $ 27.0 million for Q2 2026 compared to $ 26.9 million for Q2 2025 . ( 1 ) These are non - GAAP measures . Please refer to the section titled " Reconciliation of Non - GAAP Measures to the Most Directly Comparable GAAP Measure " for the definition and reconciliation of Adjusted EBITDA , Operating Results and other non - GAAP measures to the most directly comparable GAAP measure . Chris Reading , Chairman and Chief Executive Officer commented , “ Our second quarter 2026 results include an important milestone for USPH as we completed the integration of 31 existing clinics into our hospital affiliations . The remaining 39 hospital affiliated clinics are expected to integrate in the third quarter , resulting in increasing physical therapy revenues and margins . Combined with the partial virtualization of front desk processes and expansion of cash - based programs in our largest partnerships , we expect to accelerate our year over year adjusted EBITDA improvement in the back half of 2026 , and for these initiatives to propel us into 2027. " Mr. Reading continued , “ I want to thank our partners , clinical and support staff for their ongoing work , with special callout to those working directly on our hospital initiative . Their work is building momentum for 2027 with an expanding pipeline of opportunities around the country . "
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U.S. Physical Therapy Press Release August 5, 2026 Q2 2026 versus Q2 2025 Physical therapy net revenue was $182.4 million for Q2 2026, an 8.4% increase versus Q2 2025, including a 3.5% increase in mature revenue (1) . Patient visits (1) were 1,661,694 for Q2 2026, a 6.6% increase versus Q2 2025, with average daily visits per clinic (1) of 33.5 for Q2 2026 compared to 32.7 for Q2 2025. Physical therapy net revenue per patient visit (1) was $107.59 for Q2 2026, a $2.26 increase compared to Q2 2025. Physical therapy margin was 19.5% for Q2 2026 compa red to 21.2% for Q2 2025. Adjusted physical therapy margin (2) was 19.9% compared to 21.4% for Q2 2025. Q2 2026 results included an unfavorable impact of company-provided health benefit costs compared to a favorable impact in Q2 2025, impacting margins by approximately 100 basis points. IIP revenue was $31.7 million for Q2 2026, a 9.1% i ncrease compared to Q2 2025. Excluding the IIP acqu isition on January 31, 2026, IIP revenue increased 3.6% over the comparabl e periods. IIP margin was 20.4% for Q2 2026 compared to 20.3% for Q2 2025. Corporate expense as a percentage of total revenue was 8.9% in each of Q2 2026 and Q2 2025. Adjusted c orporate expense (2) as a percentage of total revenue was 8.4% in Q2 2026 and 8.7% in Q2 2025. The Company added four and closed four locations du ring Q2 2026, bringing the clinic count (1) to 781 as of June 30, 2026. Six Months ended June 30, 2026 versus Six Months en ded June 30, 2025 Total net revenue was $412.3 million for year-to-da te June 30, 2026 (“YTD 2026”), an 8.2% increase ove r the year-to-date ended June 30, 2025 (“YTD 2025”). Physical therapy net revenue was $350.0 million for YTD 2026, a 7.8% increase versus YTD 2025, includi ng a 3.1% increase in mature revenue (1) . Patient visits (1) were 3,204,838 for the YTD 2026, a 6.7% increase v ersus YTD 2025, with average daily visits per clini c (1) of 32.7 for YTD 2026 compared to 31.9 for the YTD 2025. Physical therapy net revenue per patient visit (1) was $107.06 for YTD 2026, a $1.57 increase compare d to YTD 2025. Physical therapy margin was 17.7% for YTD 2026 comp ared to 19.0% for YTD 2025. Adjusted physical thera py margin (2) was 18.1% compared to 19.2% for YTD 2025. IIP revenue was $62.3 million for YTD 2026, a 10.4% increase compared to YTD 2025. Excluding the IIP a cquisition made on January 31, 2026, IIP revenue increased 5.8% over t he comparable periods. IIP margin was 20.4% for YTD 2026 compared to 19.5% for YTD 2025. Corporate expense as a percentage of total revenue was 9.0% for YTD 2026 and 8.8% for YTD 2025. Adjus ted corporate expense (2) as a percentage of total revenue was 8.6% for YTD 2 026 and 8.7% for YTD 2025. Net income attributable to USPH shareholders of $14.9 million for YTD 2026 compared to $22.3 million for YTD 2025 with earnings per share of $0.13 compared to earnings per share o f $1.38 for the same periods, respectively. Operating results (2), a non-GAAP measure, of $18.2 million for YTD 2026 compared to $19.7 million for YTD 2025, with operating results per share of $1.21 compared to $1.30 for th e same periods, respectively. Adjusted EBITDA (2), a non-GAAP measure, of $47.2 million for YTD 2026 compared to $46.4 million for YTD 2025. (1) See “Glossary of Terms” for the definition. (2) These are non-GAAP measures. Please refer to the section titled “Reconciliation of Non-GAAP Measures to the Most Directly Comparable GAAP Measure” for the definition and reconciliation of A djusted EBITDA, Operating Results and other non-GAA P measures to the most directly comparable GAAP measure. BALANCE SHEET AND CASH FLOW Cash and cash equivalents were $24.9 million as of June 30, 2026 compared to $35.6 million as of December 31, 2025. Borrowings under the Company’s credit facility was $221.0 mill ion as of June 30, 2026, compared to $161.8 million as of December 31, 2025. As previously announced, on April 14, 2026, the Company closed on a $450.0 million, five-year credit facility that includes a $175.0 million term loan and a $275.0 million revolver wit h a maturity date of April 14, 2031. This is an inc rease and extension of the Company’s prior $325.0 million credit facility which was due to expire on June 17, 2027. The Company’s Board of Directors declared a quarter ly dividend of $0.46 which will be payable on Septe mber 11, 2026 to shareholders of record on August 21, 2026. Under the Company’s $25.0 million share repurchase authorization, during Q2 2026, the Company repurcha sed 306,256 of its own shares on the open market for a total consideration of $19.2 million, at an average share price of $62.80. Including repurchases made in 2025, the Company has repurchased 387,578 shares on the open market for a total consideration of $2 4.8 million, at an average share price of $63.99.
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U.S. Physical Therapy Press Release August 5, 2026 2026 ACQUISITIONS The Company has announced three acquisitions during 2026 with a cumulative purchase price of $37.6 mil lion and approximately $27.0 million in cumulative annualized revenue. On July 1, 2026, the Company acquired a 67% equity interest in a 12-clinic physical therapy practice f or a purchase price of $16.4 million. The business currently generates $12.0 million in annual revenue and 112,000 annual visits. On January 31, 2026, the Company acquired a 70% equity interest in an industrial injury prevention business for a purchase price of $15.0 million. The business currently generates $7.0 million in annual revenue. On January 2, 2026, the Company acquired a 50% equity interest in an 8-clinic physical therapy practice for a purchase price of $6.2 million. The business currently generates $8.0 million in annual revenue and 66,000 annual visits. HOSPITAL AFFILIATIONS The Company’s two previously announced hospital aff iliations impact 70 existing USPH clinics. On February 2, 2026, the Company announced a 10-yea r strategic alliance between its subsidiary, Metro, and NYU Langone. The integration of the 60 clinics began in Q2 2026 and is expected to conclude in the three months ended S eptember 30, 2026 (“Q3 2026”). On February 25, 2026, the Company announced a 10-ye ar strategic alliance between its subsidiary in the gulf-coast region and a local hospital system. The integration of the 10 cl inics is expected to occur in Q3 2026. 2026 EARNINGS GUIDANCE Management reaffirmed the Company’s full year 2026 adjusted EBITDA guidance of $102.0 million to $106.0 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 August 6, 2026, to discuss the Company’s financial results for the three and six months ende d June 30, 2026. Interested parties may participate in the call by dialing (800) 347-6865 (Primary) or (203) 518-9757 (Alternate) and conference ID of USPHQ226. Please call approximately 10 minutes before the call is scheduled to begin. To listen to the live call, go to the Com pany’s website at www.usph.com at least 15 minutes early to register, download an d install any necessary audio software. If you are unable to listen live, a playback of the conference call can be accessed until November 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” a nd similar words) involve risks and uncertainties t hat 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 stat ements are based on our current views and assumptions and actual results co uld 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 reimb ursement or failure of our clinics to maintain thei r Medicare certification and/or 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
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U.S. Physical Therapy Press Release August 5, 2026 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 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 epid emics/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 m andates at the federal, state and/or local level, w hich 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 obt ain 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, 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 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 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, and other services, as a breach or termination of those contractual arrangements by su ch 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 un certainties, you should not place undue reliance on our forward-looking statements. For additional information regarding these and other ri sks and uncertainties, that could cause actual resu lts 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 Co mmission (“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 estima tes and assumptions only as of the date of this report. Except as required by law, we are under no obligation to update any forward-looki ng 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 affiliat ed clinics as well as homecare which were operation al prior to January 1, 2025, and are still operating as of the balance she et date. This metric excludes other management cont racts. 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 mana gement contracts.
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U.S. Physical Therapy Press Release August 5, 2026 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 c ontracts. 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 th e periods presented and further divided by the aver age number of owned and hospital affiliated clinics in operation during the periods presented. This metric excludes homecare and other management contracts. Clinic count includes owned and hospital affiliated clinics as well as other management contracts. This metric ex cludes homecare. ABOUT U.S. PHYSICAL THERAPY, INC. Founded in 1990, U.S. Physical Therapy, Inc. owns a nd/or manages 796 outpatient physical therapy locat ions 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 inj ury 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 August 5, 2026 U. S. PHYSICAL THERAPY, INC. AND SUBSIDIARIES UNAUDITED CONSOLIDATED STATEMENTS OF INCOME (IN THOUSANDS, EXCEPT PER SHARE DATA) Three Months Ended Six Months Ended June 30, 2026 June 30, 2025 June 30, 2026 June 30, 2025 Net patient revenue $ 173,224 $ 164,183 $ 337,552 $ 316,730 Hospital affiliation revenue 5,564 - 5,564 - Other revenue 35,271 33,161 69,228 64,402 Net revenue 214,059 197,344 412,344 381,132 Operating cost Salaries and related costs 125,404 113,788 244,892 225,037 Rent, supplies, contract labor and other 38,965 34,127 77,417 67,971 Depreciation and amortization 5,621 5,741 11,278 11,281 Provision for credit losses 2,120 1,995 4,124 3,843 Clinic closure costs - lease and other 6 69 (62) 311 Total operating cost 172,116 155,720 337,649 308,443 Gross profit 41,943 41,624 74,695 72,689 Corporate office costs 19,005 17,476 37,279 33,721 Loss (gain) on change in fair value of contingent earn -out consideration 992 (790) 2,989 (5,612) Operating income 21,946 24,938 34,427 44,580 Other (expense) income Interest expense, debt and other (3,213) (2,422) (6,004) (4,701) Interest income from investments 29 28 45 52 Change in revaluation of put -right liability (168) (339) 195 (743) Equity in earnings of unconsolidated affiliate 408 401 772 794 Loss on extinguishment of debt (124) - (124) - Loss on sale of a partnership - - - (123) Other 175 47 305 122 Total other expense (2,893) (2,285) (4,811) (4,599) Income before taxes 19,053 22,653 29,616 39,981 Provision for income taxes 4,155 4,933 6,562 8,793 Net income 14,898 17,720 23,054 31,188 Less: Net income attributable to non -controlling interest: Redeemable non -controlling interest - temporary equity (4,080) (3,914) (6,594) (5,926) Non -controlling interest - permanent equity (920) (1,413) (1,524) (2,970) (5,000) (5,327) (8,118) (8,896) Net income attributable to USPH shareholders $ 9,898 $ 12,393 $ 14,936 $ 22,292 Basic and diluted earnings per share attributable to USPH shareholders (1) $ 0.25 $ 0.58 $ 0.13 $ 1.38 Shares used in computation - basic and diluted 15,070 15,197 15,118 15,165 Dividends declared per common share $ 0.46 $ 0.45 $ 0.92 $ 0.90 (1) These are non-GAAP measures. Please refer to the section titled “Reconciliation of Non-GAAP Measures to the Most Directly Comparable GAAP Measure” section of this press release for the calculation of basic and diluted earnings per share.
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U.S. Physical Therapy Press Release August 5, 2026 U. S. PHYSICAL THERAPY, INC. AND SUBSIDIARIES UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (IN THOUSANDS) Three Months Ended Six Months Ended June 30, 2026 June 30, 2025 June 30, 2026 June 30, 2025 Net income $ 14,898 $ 17,720 $ 23,054 $ 31,188 Other comprehensive gain (loss): Unrealized gain (loss) on cash flow hedge 94 (798) 454 (2,129) Tax effect at statutory rate (federal and state) (25) 204 (121) 544 Comprehensive income $ 14,967 $ 17,126 $ 23,387 $ 29,603 Comprehensive income attributable to non -controlling interest (5,000) (5,327) (8,118) (8,896) Comprehensive income attributable to USPH shareholders $ 9,967 $ 11,799 $ 15,269 $ 20,707
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U.S. Physical Therapy Press Release August 5, 2026 U. S. PHYSICAL THERAPY, INC. AND SUBSIDIARIES SEGMENT INFORMATION Three Months Ended Variance June 30, 2026 June 30, 2025 $ % (In thousands, except percentages) Physical Therapy Operations Net patient revenue $ 173,224 $ 164,183 $ 9,041 5.5 % Hospital a ffiliation revenue 5,564 - 5,564 * Other revenue (1) 3,567 4,109 (542) (13.2)% Net revenue 182,355 168,292 14,063 8.4 % Operating costs (1)(2) 146,884 132,568 14,316 10.8 % Gross profit $ 35,471 $ 35,724 $ (253) (0.7)% IIP Net revenue $ 31,704 $ 29,052 $ 2,652 9.1% Operating costs (2) 25,232 23,152 2,080 9.0% Gross profit $ 6,472 $ 5,900 $ 572 9.7% Financial and operating metrics (not in thousands): Patient visits (3) 1,661,694 1,558,756 102,938 6.6 % Average daily visits per clinic (3) 33.5 32.7 0.8 2.4 % Physical therapy revenue per patient visit (3) $ 107.59 $ 105.33 $ 2.26 2.1 % Mature revenue percent change (3) 3.5% 0.2% Salaries and related costs, as a percentage of revenue (4)(5) 57.9% 56.6% Adjusted salaries and related costs, as a percentage of revenue (4)(5)(6) 57.5% 56.4% Physical therapy operations gross profit margin (2) 19.5% 21.2% Adjusted p hysical therapy operations gross profit margin (2)(7) 19.9% 21.4% IIP gross profit margin 20.4% 20.3% (1) Includes revenues and/or costs related to other management contracts. (2) Amortization of certain intangible assets was reall ocated between physical therapy operations and IIP segments for Q2 2025 amounts to conform with current presentation. (3) See Glossary of terms for definition. Reflects the average number of clinic locations (755 and 731) du ring the current and prior-year periods, respectively. (4) Beginning Q2 2026, the Company changed its salaries and related costs metric from cost-per-visit to pe rcentage-of-revenue, which management believes is a more meaningful presentation. For hos pital affiliated clinics, salaries and related cost s reimbursements by hospital systems are recognized as revenue by USPH, supporting this presentation change. Prior period metrics have been revised to conform to the current presentation. (5) Includes cost and revenue from physical therapy operations. Excludes costs and revenue from other management contracts. (6) Excludes certain incentive costs related to Metro. See the section titled Reconciliation of Non-GAAP M easures to the Most Directly Comparable GAAP Measure. (7) Excludes certain incentive costs related to the Met ro acquisition, business acquisition costs and clin ic closure costs. See the section titled Reconciliation of Non-GAAP Measures to the Most Directly Comparable GAAP Measure. * Not applicable.
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U.S. Physical Therapy Press Release August 5, 2026 U. S. PHYSICAL THERAPY, INC. AND SUBSIDIARIES SEGMENT INFORMATION Six Months Ended Variance June 30, 2026 June 30, 2025 $ % Physical Therapy Operations (In thousands, except percentages) Revenue related to: Net patient revenue $ 337,552 $ 316,730 $ 20,822 6.6% Hospital affiliation revenue 5,564 - 5,564 * Other revenue (1) 6,914 7,970 (1,056) (13.2)% Total revenue 350,030 324,700 25,330 7.8% Operating costs (1)(2) 288,062 263,017 25,045 9.5% Gross profit $ 61,968 $ 61,683 $ 285 0.5% IIP Net revenue $ 62,314 $ 56,432 $ 5,882 10.4% Operating costs (2) 49,587 45,426 4,161 9.2% Gross profit $ 12,727 $ 11,006 $ 1,721 15.6% Financial and operating metrics (not in thousands): Patient visits (3) 3,204,838 3,002,561 202,277 6.7% Average daily visits per clinic (3) 32.7 31.9 0.8 2.5% Physical therapy revenue per patient visit (3) $ 107.06 $ 105.49 $ 1.57 1.5% Mature revenue percent change (3) 3.1% (0.5%) Salaries and related costs, as a percentage of revenue (4)(5) 58.9% 58.0% Adjusted salaries and related costs, as a percentage of revenue (4)(5)(6) 58.6% 58.0% Physical therapy operations gross profit margin (2) 17.7% 19.0% Adjusted p hysical therapy operations gross profit margin (2)(7) 18.1% 19.2% IIP gross profit margin 20.4% 19.5% (1) Includes revenues and/or costs related to other management contracts. (2) Amortization of certain intangible assets was reall ocated between physical therapy operations and IIP segments for YTD 2025 amounts to conform with current presentation. (3) See Glossary of terms for definition. Reflects the average number of clinic locations (753 and 728) du ring the current and prior-year periods, respectively. (4) Beginning Q2 2026, the Company changed its salaries and related costs metric from cost-per-visit to percentage-of-revenue, which management believes is a more meaningful presentation. For hos pital affiliated clinics, salaries and related cost s reimbursements by hospital systems are recognized as revenue by USPH, supporting this pres entation change. Prior period metrics have been re vised to conform to the current presentation. (5) Includes cost and revenue from physical therapy operations. Excludes costs and revenue from other management contracts. (6) Excludes certain incentive costs related to Metro. See the section titled Reconciliation of Non-GAAP Measures to the Most Directly Comparable GAAP Measure. (7) Excludes certain incentive costs related to the Met ro acquisition, business acquisition costs and clin ic closure costs. See the section titled Reconciliation of Non -GAAP Measures to the Most Directly Comparable GAAP Measure. * Not applicable.
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U.S. Physical Therapy Press Release August 5, 2026 U. S. PHYSICAL THERAPY, INC. AND SUBSIDIARIES SUPPLEMENTAL FINANCIAL AND PERFORMANCE METRICS Revenue Metrics Physical Therapy Revenue Per Patient Visit (1) Patient Visits (1) Average Visits Per Clinic Per Day (2) 2026 2025 2026 2025 2026 2025 First quarter $ 10 6.49 $ 105.66 1,543,144 1,443,805 31.8 31.2 Second quarter $ 107.59 $ 105.33 1,661,694 1,558,756 33.5 32.7 Third quarter $ 105.54 1,554,207 32.2 Fourth quarter $ 106.49 1,593,336 32.7 Year $ 107.06 $ 105.76 3,204,838 6,150,104 32.7 32.2 (1) See definition of the metrics above in the Glossary of Terms . (2) Excludes home -care visits. Physical Therapy Locations Roll Forward (1) 2026 2025 Number of clinics, beginning of period 778 759 Q1 additions 15 14 Q1 closed or sold (12) (9) Number of clinics, end of period 781 764 Q2 additions 4 6 Q2 closed or sold (4) (4) Number of clinics, end of period 781 766 Q3 additions 18 Q3 closed or sold (7) Number of clinics, end of period 777 Q4 additions 11 Q4 closed or sold (10) Number of clinics, end of period 778 Year -to -date total additions 19 20 Year -to -date total closed or sold (16) (13) (1) See “Glossary of Terms” for the definition
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U.S. Physical Therapy Press Release August 5, 2026 U. S. PHYSICAL THERAPY, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEET (IN THOUSANDS, EXCEPT SHARES AND PER SHARE AMOUNTS) June 30, 2026 December 31, 2025 (unaudited) ASSETS Current assets: Cash and cash equivalents $ 24,887 $ 35,570 Patient accounts receivable, less provision for credit losses of $3,824 and $3,775, respectively 69,603 64,249 Accounts receivable - other 28,557 24,087 Other current assets 16,628 16,084 Total current assets 139,675 139,990 Fixed assets: Furniture and equipment 74,132 67,891 Leasehold improvements 60,397 58,985 Fixed assets, gross 134,529 126,876 Less accumulated depreciation and amortization (94,095) (91,225) Fixed assets, net 40,434 35,651 Operating lease right -of -use assets 156,466 144,197 Investment in unconsolidated affiliate 12, 712 12,275 Goodwill 716,535 692,392 Other identifiable intangible assets, net 176,547 172,861 Other assets 6, 505 6,644 Total assets $ 1,248,874 $ 1,204,010 LIABILITIES, REDEEMABLE NON-CONTROLLING INTEREST, USPH SHAREHOLDERS’ EQUITY AND NON -CONTROLLING INTEREST Current liabilities: Accounts payable - trade $ 6,917 $ 6,059 Accrued expenses 45,424 49,424 Current portion of operating lease liabilities 42,871 42,134 Current portion of term loan and notes payable 4,563 9,865 Other current liabilities 10,134 31,558 Total current liabilities 109,909 139,040 Notes payable, net of current portion 890 417 Revolving facility 46,000 30,500 Term loan, net of current portion and deferred financing costs 168,566 121,677 Deferred taxes 30,998 28,391 Operating lease liabilities, net of current portion 122,899 110,572 Other long -term liabilities 2,954 3,214 Total liabilities 482,216 433,811 Redeemable non -controlling interest - temporary equity 317,491 293,311 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, 17,526,791 and 17,418,621 shares issued, respectively 175 174 Additional paid -in capital 290,551 285,522 Accumulated other comprehensive gain 1,047 714 Retained earnings 213,361 227,216 Treasury stock at cost, 2,603,117 shares and 2,296,059 shares, respectively (56,478) (37,194) Total USPH shareholders’ equity 448,656 476,432 Non -controlling interest - permanent equity 511 456 Total USPH shareholders' equity and non -controlling interest - permanent equity 449,167 476,888 Total liabilities, redeemable non -controlling interest, USPH shareholders' equity and non -controlling interest - permanent equity $ 1,248,874 $ 1,204,010
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U.S. Physical Therapy Press Release August 5, 2026 U. S. PHYSICAL THERAPY, INC. AND SUBSIDIARIES UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS (IN THOUSANDS) Six Months Ended June 30, 2026 June 30, 2025 OPERATING ACTIVITIES Net income including non -controlling interest $ 23,054 $ 31,188 Adjustments to reconcile net income including non-controlling interest to net cash provided by operating activities: Depreciation and amortization 11,935 11,924 Provision for credit losses 4,124 3,843 Equity -based awards compensation expense 5,479 3,888 Amortization of debt issuance costs 212 210 Change in deferred income taxes 5,232 7,279 Change in revaluation of put -right liability (195) 743 Change in fair value of contingent earn -out consideration 2,989 (5,612) Equity of earnings in unconsolidated affiliate (772) (794) Loss on sale of clinics and fixed assets 302 438 Loss on sale of a partnership - 123 Loss on extinguishment of debt 124 - Changes in operating assets and liabilities: Patient accounts receivable, net (9,047) (10,232) Accounts receivable - other (2,962) 355 Other current and long term assets 74 (4,426) Accounts payable and accrued expenses (1,410) (7,914) Other long -term liabilities (961) (827) Net cash provided by operating activities 38,178 30,186 INVESTING ACTIVITIES Purchase of fixed assets (10,737) (5,830) Purchase of majority interest in businesses, net of cash acquired (21,133) (6,890) Purchase of redeemable non -controlling interest, temporary equity (6,531) (8,427) Purchase of non controlling interest, permanent equity (8,973) (149) Proceeds on sale of non -controlling interest, permanent equity 50 9 Repayment of notes receivable related to sales of redeemable non -controlling interest 396 346 Proceeds on sale of partnership interest - redeemable non -controlling interest, temporary equity 221 15 Distributions from unconsolidated affiliate 335 664 Proceeds on sale of partnership interest, clinics and fixed assets - 700 Other 165 228 Net cash (used in) investing activities (4 6,207 ) (19,334) FINANCING ACTIVITIES Payment of debt issuance costs (2,214) - Proceeds from revolving facility 153,262 73,500 Payments on revolving facility (137,762) (60,000) Distributions to non -controlling interest, permanent and temporary equity (12,326) (10,697) Cash dividends paid to shareholders (13,871) (13,678) Proceeds from term loan 45,625 - Payments on term loan (1,875) (5,625) Principal payments on notes payable (617) (1,628) Payment for taxes related to net settlement of equity awards (51) - Repurchases of common stock (19,233) - Payment of contingent consideration (13,592) - Net cash (used in) financing activities (2,654) (18,128) Net (decrease) in cash and cash equivalents (10,683) (7,276) Cash and cash equivalents - beginning of period 35,570 41,362 Cash and cash equivalents - end of period $ 24,887 $ 34,086 SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION Cash paid during the period for: Income taxes $ 4,769 $ 9,833 Interest paid 6,589 4,683 Non -cash investing and financing transactions during the period: Purchase of businesses - seller financing portion 500 - Fair market value of initial contingent consideration related to purchase of businesses - 3,059 Notes payable related to purchase of redeemable non-controlling interest, temporary equity 78 89 Notes receivable related to sale of redeemable non -controlling interest, temporary equity 3,649 660 Notes receivable related to the sale of non -controlling interest, permanent equity 527 29 Offset to notes receivable associated with purchase of redeemable non -controlling interest $ 72 $ 254
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U.S. Physical Therapy Press Release August 5, 2026 U.S. PHYSICAL THERAPY, INC. AND SUBSIDIARIES RECONCILIATION OF NON-GAAP MEASURES TO THE MOST DIRECTLY COMPARABLE GAAP MEASURE The following tables provide details of the basic a nd diluted earnings per share computation and recon cile net income attributable to USPH shareholders calculated in accordance with GAAP to Adjusted EBITDA and Operating Results. The tables a lso provide a reconciliation of additional non-GAAP measures to the most comparable GAAP measure. Management believes providing Adjust ed 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 described above that can be subject to volatility and unusual costs, as the principal measures to evaluate and monitor financial performance perio d 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 c osts, business acquisition related costs, costs rel ated to a one-time financial and human resources systems upgrade, loss on sale of a partne rship, other income and related portions for non-co ntrolling interests, and other non- recurring items as applicable. Operating Results, a non-GAAP measure, equals net i ncome attributable to USPH shareholders less change s 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, any allocati ons to non-controlling interests, all net of taxes, and other non-recurring items as applicab le. Operating Results per share also excludes the i mpact of the revaluation of redeemable non-controlling interest and the associated tax impact. Adjusted EBITDA and Operating Results are not measures of financial performance under GAAP. Adjusted EBITDA, Operating Results and other non-GAAP measures should not be considered in isolation or as an alternative to, or substitute f or, net income attributable to USPH shareholders presented in the consolidated financial statements.
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U.S. Physical Therapy Press Release August 5, 2026 U. S. PHYSICAL THERAPY, INC. AND SUBSIDIARIES ADJUSTED EBITDA, OPERATING RESULTS AND EARNINGS PER SHARE (IN THOUSANDS, EXCEPT PERCENTAGES AND PER SHARE DAT A) Three Months Ended Six Months Ended June 30, 2026 June 30, 2025 June 30, 2026 June 30, 2025 Adjusted EBITDA (a non-GAAP measure) Net income attributable to USPH shareholders $ 9,898 $ 12,393 $ 14,936 $ 22,292 Adjustments: Provision for income taxes 4,155 4,933 6,562 8,793 Depreciation and amortization 5,935 6,057 11,935 11,924 Interest expense, debt and other, net 3,213 2,422 6,004 4,701 Interest income from investments (29) (28) (45) (52) Equity -based awards compensation expense 3,168 2,117 5,47 9 3,888 Change in revaluation of put -right liability 168 339 (195) 743 Loss (gain) on change in fair value of contingent earn -out consideration 992 (790) 2,989 (5,612) Clinic closure costs (1) 6 69 (62) 311 Business acquisition related costs (2) 219 320 756 800 ERP implementation costs (3) 419 159 727 221 Loss on sale of a partnership - - - 123 Loan amendment costs (4) 288 - 288 - Loss on extinguishment of debt (4) 124 - 124 - Other income (175) (47) (305) (122) Allocation to non -controlling interests (1,429) (1,081) (1,99 7) (1,608) $ 26,952 $ 26,863 $ 47,196 $ 46,402 Operating Results (a non-GAAP measure) Net income attributable to USPH shareholders $ 9,898 $ 12,393 $ 14,936 $22,292 Adjustments: Loss (gain) on change in fair value of contingent earn -out consideration 992 (790) 2,989 (5,612) Change in revaluation of put -right liability 168 339 (195) 743 Clinic closure costs (1) 6 69 150 311 Business acquisition related costs (2) 219 320 756 800 ERP implementation costs (3) 419 159 727 221 Loss on sale of a partnership - - - 123 Loan amendment costs (4) 288 - 288 - Loss on extinguishment of debt (4) 124 - 124 - Allocation to non -controlling interest (355) (156) (356) (118) Tax effect at statutory rate (federal and state) (494) 16 (1,190) 903 $ 11,265 $ 12,350 $ 18,229 $ 19,663 Operating Results per share (a non -GAAP measure) $ 0.75 $ 0.81 $ 1.21 $ 1.30 Earnings per share Computation of earnings per share - USPH shareholders: Net income attributable to USPH shareholders $ 9,898 $ 12,393 $ 14,936 $ 22,292 Charges to retained earnings: . Revaluation of redeemable non -controlling interest (8,294) (4,806) (17,663) (1,903) Tax effect at statutory rate (federal and state) 2,202 1,228 4,690 486 $ 3,806 $ 8,815 $ 1,963 $ 20,875 Earnings per share (basic and diluted) $ 0.25 $ 0.58 $ 0.13 $ 1.38 Shares used in computation - basic and diluted 15,070 15,197 15,118 15,165 (1) Costs associated with clinic closures during the periods presented and, for purposes of Operating Results, includes accelerat ed depreciation related to closed clinics. (2) Primarily consists of retention bonuses, as well as legal and consulting expenses related to the acquisition of equity interests in certain partnerships and costs associated with entering into hospital affiliation contracts . (3) Consists of costs related to a one -time financial and human resources systems upgrade. (4) Consists of costs related to the amendment of the Company's credit facility.
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U. S. PHYSICAL THERAPY, INC. AND SUBSIDIARIES RECONCILIATION OF OTHER NON-GAAP MEASURES TO THE MOST COMPARABLE GAAP MEASURES (3) (5) Three Months Ended June 30, 2026 Adjustments Reported (GAAP) Clinic Closure Costs (1) Metro Incentive Costs (2) Business Acquisition Related Costs (3) ERP Implementation Costs (4) Amended Credit Facility Costs (5) Adjusted (Non -GAAP) (in thousands, except percentages) Segment information - Physical Therapy Operations Salaries and related costs, clinics (6) $ 104,563 $ - $ (816) $ - $ - $ - $ 103,747 Salaries and related costs as a percentage of revenue (6) 57.9% - (0.5%) - - - 57.5% Gross profit $ 35,471 $ 6 $ 816 $ - $ - $ - $ 36,293 Gross profit margin 19.5% * 0.4% - - - 19.9% Corporate office costs $ 19,005 $ - $ - $ (219) $ (419) $ (288) $ 18,079 Corporate office costs as a percentage of revenue 8.9% - - (0.1%) (0.2%) (0.1%) 8.4% Three Months Ended June 30, 2025 Adjustments Reported (GAAP) Clinic Closure Costs (1) Metro Incentive Costs (2) Business Acquisition Related Costs (3) ERP Implementation Costs (4) Amended Credit Facility Costs (5) Adjusted (Non -GAAP) (in thousands, except percentages) Segment information - Physical Therapy Operations Salaries and related costs, clinics (6) $ 93,877 $ - $ (229) $ - $ - $ - $ 93,648 Salaries and related costs as a percentage of revenue (6) 56.6% - (0.1%) - - - 56.4% Gross profit $ 35,724 $ 69 $ 229 $ - $ - $ - $ 36,022 Gross profit margin 21.2% * 0.1% - - - 21.4% Corporate office costs $ 17,476 $ - $ - $ (178 ) $ (159) $ - $ 17,139 Corporate office costs as a percentage of revenue 8.9% - - (0. 1%) (0.1%) - 8. 7% (1) These are costs incurred during the period that are associated with closed clinics (owned). (2) Certain earnout bonuses and incentive costs related to Metro. (3) Includes expenses related to the acquisitions of equity interests in certain partnerships and includes costs associated w ith entering into hospital affiliated contracts. (4) Includes costs related to a one -time financial and human resources systems upgrade. (5) Certain fees expensed when entering into the Fourth Amended Credit Facility . (6) Excludes revenues and costs related to management contracts. * Not meaningful
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U.S. Physical Therapy Press Release August 5, 2026 U. S. PHYSICAL THERAPY, INC. AND SUBSIDIARIES RECONCILIATION OF OTHER NON-GAAP MEASURES TO THE MOST COMPARABLE GAAP MEASURES Six Months Ended June 30, 2026 Adjustments Reported (GAAP) Clinic Closure Costs (1) Metro Incentive Costs (2) Business Acquisition Related Costs (3) ERP Implementation Costs (4) Amended Credit Facility Costs (5) Adjusted (Non -GAAP) (in thousands, except percentages) Segment information - Physical Therapy Operations Salaries and related costs, clinics (6) $ 203,888 $ - $ (1,076) $ - $ - $ - $ 202,812 Salaries and related costs as a percentage of revenue (6) 58.9% - (0.3%) - - - 58.6% Gross profit $ 61,968 $ 150 $ 1,076 $ 107 $ - $ - $ 63,301 Gross profit margin 17.7% * 0.3% * - - 18.1% Corporate office costs $ 37,279 $ - $ - $ (756) $ (727) $ (288) $ 35,508 Corporate office costs as a percentage of revenue 9.0% - - (0.2%) (0.2%) (0.1%) 8.6% Six Months Ended June 30, 2025 Adjustments Reported (GAAP) Clinic Closure Costs (1) Metro Incentive Costs (2) Business Acquisition Related Costs (3) ERP Implementation Costs (4) Amended Credit Facility Costs (5) Adjusted (Non -GAAP) (in thousands, except percentages) Segment information - Physical Therapy Operations Salaries and related costs, clinics (6) $ 185,676 $ - $ (294) $ - $ - $ - $ 185,382 Salaries and related costs as a percentage of revenue (6) 58.0% - (0.1%) - - - 58.0% Gross profit $ 61,683 $ 311 $ 294 $ - $ - $ - $ 62,288 Gross profit margin 19.0% 0.1% 0.1% - - - 19.2% Corporate office costs $ 33,721 $ - $ - $ (433 ) $ (221) $ - $ 33,067 Corporate office costs as a percentage of revenue 8.8% - - (0. 1%) (0.1%) 8. 7% (1) These are costs incurred during the period that are associated with closed clinics (owned). (2) Certain earnout bonuses and incentive costs related to Metro. (3) Includes expenses related to the acquisitions of equity interests in certain partnerships and includes costs associated w ith entering into hospital affiliated contracts. (4) Includes costs related to a one -time financial and human resources systems upgrade. (5) Certain fees expensed when entering into the Fourth Amended Credit Facility . (6) Excludes revenues and costs related to management contracts. * Not meaningful .