U S Physical Therapy Inc.: Q2 FY2025 earnings call

What management said about Q2 FY2025, from the documents filed with the SEC on 7 August 2025: press release. Guidance figures: 1 raised, 1 new, 1 kept. The quarter’s numbers.

Read the filing

Key takeaways

• Adjusted EBITDA rose 21.4%: Adjusted EBITDA was $26.9 million, up from $22.1 million a year earlier. Management attributed the increase primarily to higher patient visits. Source
• Full-year Adjusted EBITDA guidance raised: Management raised full-year 2025 Adjusted EBITDA guidance to $93.0 million to $97.0 million, citing year-to-date results and confidence in the second half. Source
• Physical therapy revenue up 17.3%: Physical therapy revenue rose $24.8 million to $168.3 million. Total net revenue for the quarter was $197.3 million. Source
• Industrial injury prevention revenue up 22.6%: IIP gross profit rose $1.3 million, or 25.8%, to $6.4 million on IIP revenue of $29.1 million. Source
• Visits up 16.7% to 1.56 million: Total patient visits were 1,558,756, against 1,335,335 in the prior-year quarter. Source
• Net rate per visit edged higher: Net rate per patient visit was $105.33, up $0.28 from $105.05. The six-month net rate was $105.49, against $104.23. Source
• Physical therapy adjusted margin 21.1%: Physical therapy gross margin was 20.9%, or 21.1% excluding $0.2 million of Metro acquisition incentive costs, against 20.1% a year earlier. Source

“Volumes in our physical therapy business remain at record levels while we execute our plan for cost rationalization and improved efficiencies.”

Chris Reading, Chief Executive Officer

Guidance

What changed from last quarter

• Guidance raised: Full-year 2025 Adjusted EBITDA guidance was raised to $93.0 million to $97.0 million. Source
• New: A share repurchase program of up to $25 million, running through December 31, 2026, became effective August 5, 2025. Source
• New: On July 31, 2025 the company bought 60% of a three-clinic practice. The business generates $5.3 million in annual revenue and approximately 28,000 annual visits. Source
• New: Home-care visits, which totaled 28,493 in the quarter, will be reported as a separate line in each period going forward. Source

Results and growth drivers

• Adjusted EBITDA rose 21.4%: Adjusted EBITDA was $26.9 million, up from $22.1 million a year earlier. Management attributed the increase primarily to higher patient visits. Source
• Full-year Adjusted EBITDA guidance raised: Management raised full-year 2025 Adjusted EBITDA guidance to $93.0 million to $97.0 million, citing year-to-date results and confidence in the second half. Source
• Earnings per share rose to $0.58: Net income attributable to USPH shareholders was $12.4 million, against $7.5 million. Revaluation of redeemable noncontrolling interest is charged to retained earnings, not to net income. Source
• Operating Results per share $0.81: Non-GAAP Operating Results were $12.4 million, or $0.81 per share, up 11.8% from $11.0 million, or $0.73 per share, a year earlier. Source
• Physical therapy revenue up 17.3%: Physical therapy revenue rose $24.8 million to $168.3 million. Total net revenue for the quarter was $197.3 million. Source
• Six-month revenue up 18.0%: Net revenue for the six months was $381.1 million, up $58.3 million. Operating costs rose 18.4% to $308.4 million. Six-month EPS was $1.38, against $0.93. Source

Segments and clinic footprint

• Industrial injury prevention revenue up 22.6%: IIP gross profit rose $1.3 million, or 25.8%, to $6.4 million on IIP revenue of $29.1 million. Source
• Organic IIP growth reported separately: Excluding the April 2024 IIP acquisition, IIP revenue rose $4.0 million, or 18.4%, and gross profit rose $1.0 million, or 21.8%. Source
• Clinic additions drove physical therapy growth: Revenue from clinics added since the prior year was $30.5 million, against $3.6 million. Mature clinic revenue was $133.7 million, up 0.2%. Source
• Clinic count reached 768: The company added six clinics and closed four in the quarter. The owned and managed total was 768, against 722 a year earlier, including 36 managed clinics. Source

“As a result of our efforts and expected progress we have updated our earnings guidance for the year.”

Chris Reading, Chief Executive Officer

Patient volume and demand

• Visits up 16.7% to 1.56 million: Total patient visits were 1,558,756, against 1,335,335 in the prior-year quarter. Source
• Daily visits per clinic reached 32.7: Average daily visits per clinic, excluding home-care visits, were 32.7 against 30.6 a year earlier, an increase of 6.9%. Source
• Six-month visits include home care: Six-month visits totaled 3,002,561, including 51,436 home-care visits. The first half of 2024 had no home-care visits. Source

Pricing and payor mix

• Net rate per visit edged higher: Net rate per patient visit was $105.33, up $0.28 from $105.05. The six-month net rate was $105.49, against $104.23. Source
• Payor contracts and acquisitions cited: Management described the rate as reflecting a priority of higher reimbursement through commercial payor contract negotiations, and acquisitions added with accretive net rates per visit. Source

Costs and margins

• Physical therapy adjusted margin 21.1%: Physical therapy gross margin was 20.9%, or 21.1% excluding $0.2 million of Metro acquisition incentive costs, against 20.1% a year earlier. Source
• Operating cost per visit slightly lower: Operating costs per visit were $83.95 against $84.46. Salaries and related costs per visit rose to $60.08 from $59.66. Source
• IIP gross margin rose to 22.0%: IIP gross margin was 22.0% for the quarter, against 21.4% a year earlier. Source
• Corporate office costs 8.9% of revenue: Corporate office costs were $17.5 million, against $14.2 million, reflecting clinic count and integration work. Excluding $0.3 million of such costs, the ratio was 8.7%. Source
• Operating income rose to $24.9 million: Operating income was $24.9 million against $15.6 million. Excluding contingent consideration changes, it was $24.1 million against $19.6 million. Source

Balance sheet and cash

• Cash fell to $34.1 million: Cash and equivalents were $34.1 million, against $41.4 million at year-end 2024 and $112.9 million a year earlier. Cash has been used to fund acquisitions. Source
• Revolver borrowings $159.5 million: Outstanding borrowings were $159.5 million and available revolver credit was $150.5 million, against $151.6 million borrowed and $164.0 million available at December 31, 2024. Source
• Six-month operating cash flow $30.2 million: Net cash provided by operating activities was $30.2 million for the six months, against $33.4 million a year earlier. Source
• Acquisition spending $6.9 million: Purchases of majority interests in businesses, net of cash acquired, were $6.9 million for the six months, against $38.7 million a year earlier. Source

Strategy and acquisitions

• Strategy centers on practice acquisitions: Management said it plans to keep acquiring multi-clinic outpatient and home-care physical and speech therapy practices, open satellite clinics in existing partnerships, and acquire industrial injury prevention companies. Source
• MSO Metro acquired home-care practice: Through its 50%-owned subsidiary MSO Metro, the company acquired 80% of a home-care physical and speech therapy practice with about $2.1 million in annual revenue. The announcement was April 30. Source

Coming up, as management said on 7 August 2025

• Form 10-Q expected August 8: The Quarterly Report on Form 10-Q for the six months is expected to be filed with the SEC on August 8, 2025. Source
• Guidance changes only if material: Annual guidance will not be updated unless a material development makes management believe Adjusted EBITDA will be significantly outside the range. Source

Figures management reported

Risks management discussed

• Operational: Costs of the new financial and human resources system are expected to continue through the end of 2026. Source
• Regulatory: A roughly 2.9% Medicare rate reduction took effect January 1, 2025. Management noted net rate per visit still rose despite it. Source
• Financial: Interest expense rose $0.4 million to $2.4 million on a higher average revolver balance. The rate on credit facility borrowings was 5.1%, against 4.7%. Source
• Financial: A put-right liability for a future IIP business purchase was revalued, adding a $0.3 million non-cash expense this quarter. Source
• Financial: Contingent consideration revaluation produced a $0.8 million gain this quarter, against a $4.0 million loss a year earlier, and such changes affect reported results. Source

Earlier plans management reported on

• Not stated: Management said volumes are at high levels while it executes its plan for cost rationalization and improved efficiencies. No status against that plan is given. Source
• Not stated: Management described increasing reimbursement rates through commercial and other payor contract negotiations as a strategic priority. No result is stated against it. Source

Other quarters

• Q2 FY2026 earnings call
• Q1 FY2026 earnings call
• Q4 FY2025 results
• Q3 FY2025 earnings call

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.