U S Physical Therapy Inc.: Q3 FY2025 earnings call

What management said about Q3 FY2025, from the documents filed with the SEC on 6 November 2025: press release. Guidance figures: 1 kept. The quarter’s numbers.

Read the filing

Key takeaways

• Adjusted EBITDA rose 13.2%: Adjusted EBITDA was $23.9 million, driven primarily by clinic additions. Net income attributable to USPH shareholders was $13.1 million, against $6.6 million a year earlier. Source
• Therapy revenue up 17.8%: Physical therapy operations revenue rose $25.4 million to $168.1 million from the prior-year quarter. Source
• Injury prevention revenue up 14.6%: IIP revenue rose $3.7 million, or 14.6%, to $29.0 million from $25.3 million a year earlier. Source
• Patient visits up 18.0%: Total patient visits reached 1,554,207, including 30,137 home-care visits, an 18.0% increase over the prior-year quarter. Source
• Record daily visits per clinic: Average daily visits per clinic, excluding home-care, reached 32.2, a record-high for a third quarter, against 30.1 a year earlier. Source
• Adjusted gross margin 18.6% vs 19.2%: Excluding Metro incentive costs and clinic-closure gains and losses, the adjusted gross profit margin was 18.6%, against 19.2% a year earlier. Source
• Operating income rose to $25.3M: Operating income was $25.3 million, up from $12.8 million a year earlier. Source

“This was a very solid quarter for us across the board with record visits per clinic per day”

Chris Reading, Chief Executive Officer

Guidance

What changed from last quarter

• Guidance kept: Full-year 2025 Adjusted EBITDA range reaffirmed at the same $93.0 million to $97.0 million set in the second-quarter raise. Source
• New: Amortization of certain intangible assets moved between the therapy and injury prevention segments; prior-year amounts were reallocated to match. Source

Results and growth drivers

• Adjusted EBITDA rose 13.2%: Adjusted EBITDA was $23.9 million, driven primarily by clinic additions. Net income attributable to USPH shareholders was $13.1 million, against $6.6 million a year earlier. Source
• EPS up; Operating Results down: EPS was $0.48 against $0.39. Operating Results, a non-GAAP measure, were $10.1 million, or $0.66 per share, against $10.4 million, or $0.69. Source
• Therapy revenue up 17.8%: Physical therapy operations revenue rose $25.4 million to $168.1 million from the prior-year quarter. Source
• Growth tied to 84 net owned clinics: Management attributed the revenue increase to visits from 84 net owned clinics added since the comparable prior-year period. Source

Segments: therapy and injury prevention

• Injury prevention revenue up 14.6%: IIP revenue rose $3.7 million, or 14.6%, to $29.0 million from $25.3 million a year earlier. Source
• IIP gross profit up 10.7%: IIP gross profit was $5.7 million, up $0.5 million or 10.7% from $5.1 million a year earlier, a smaller percentage gain than revenue. Source
• IIP margin fell to 19.6%: The IIP gross profit margin was 19.6%, against 20.3% a year earlier. Source

“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.”

Chris Reading, Chief Executive Officer

Patient volumes and rate per visit

• Patient visits up 18.0%: Total patient visits reached 1,554,207, including 30,137 home-care visits, an 18.0% increase over the prior-year quarter. Source
• Record daily visits per clinic: Average daily visits per clinic, excluding home-care, reached 32.2, a record-high for a third quarter, against 30.1 a year earlier. Source
• Net rate per visit down $0.11: Net rate per patient visit was $105.54, against $105.65 a year earlier. Source

Costs, margins and corporate expense

• Salaries per visit eased: Excluding Metro incentive costs and clinic-closure gains and losses, salaries and related costs per visit were $62.07, against $62.47. Source
• Operating cost per visit rose: Total operating costs per visit were $86.88, against $86.00 in the prior-year quarter, on the same adjusted basis. Source
• Adjusted gross margin 18.6% vs 19.2%: Excluding Metro incentive costs and clinic-closure gains and losses, the adjusted gross profit margin was 18.6%, against 19.2% a year earlier. Source
• Gross profit up 30.0%: Physical therapy gross profit was $31.2 million, up $7.2 million or 30.0%. Source
• Corporate office costs rose: Corporate office costs rose to $17.4 million from $14.4 million, primarily to support more clinics, with integration and system costs also included. Source

Operating income and below-the-line items

• Operating income rose to $25.3M: Operating income was $25.3 million, up from $12.8 million a year earlier. Source
• Contingent consideration gain $5.9M: The revaluation of contingent consideration produced a $5.9 million net gain in the quarter, a decrease in related liabilities. Source
• Interest expense rose $0.4M: Interest expense rose $0.4 million to $2.4 million, due to a higher average revolver balance. Source
• Effective tax rate 28.5%: The effective tax rate was 28.5%, against 27.9% a year earlier. Source
• Non-controlling interest rose: Net income attributable to non-controlling interests was $4.5 million, against $3.1 million a year earlier. Source

Cash, debt and capital spending

• Cash fell to $31.1 million: Cash and cash equivalents were $31.1 million at September 30, 2025, down from $41.4 million at December 31, 2024. Source
• Revolver borrowings $159.6 million: Borrowings were $159.6 million, with $148.5 million available under the revolving facility. Source
• Nine-month operating cash flow lower: Net cash from operations for the nine months was $50.1 million, against $55.5 million. Fixed asset purchases were $10.1 million, against $6.7 million. Source
• Quarterly dividend of $0.45: The board declared a quarterly dividend of $0.45 per share, payable December 12, 2025, to holders of record November 17, 2025. Source

Acquisitions, clinics and strategy

• Three-clinic practice acquired: The company acquired a 60% equity interest in a three-clinic practice, with the original owners keeping 40%. Source
• Strategy: keep acquiring practices: Management said its strategy is to continue acquiring multi-clinic outpatient physical therapy practices and home-care physical and speech therapy practices. Source
• 18 clinics added, seven closed: The company added 18 and closed seven owned and/or managed clinics, bringing the total to 779 at September 30, 2025. Source
• 36 owned clinics added in nine months: Management reported 36 owned clinics added during the nine months ended September 30, 2025. Source

Coming up, as management said on 6 November 2025

• Form 10-Q for nine months: The Form 10-Q covering the nine months is expected to be filed on November 7, 2025. Source

Figures management reported

Risks management discussed

• Operational: Acquisition integration and a new financial and HR system added to corporate office costs. Source
• Financial: Revaluation of a put-right liability on a future IIP business added a non-cash expense of $0.7 million. Source

Earlier plans management reported on

• Not stated: Management reaffirmed the range set in the August raise, with no new figure given. Source
• Not stated: Management expects the system implementation costs to continue through the end of 2026. Source

Other quarters

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