U S Physical Therapy Inc.: Q3 FY2026 earnings call

What management said about Q3 FY2026, from the documents filed with the SEC on 6 November 2026: press release. Guidance figures: 1 kept. The quarter’s numbers.

Read the filing

Key takeaways

• Revenue rose 13% to $223 million: Total net revenue of $223 million was up 13% from $197 million a year earlier, with physical therapy and IIP both growing. Source
• Loss per share against prior earnings: Net income attributable to USPH shareholders was $11 million, against $13 million. Basic and diluted loss per share was $1.04, compared with earnings of $0.48. Source
• Adjusted EBITDA up to $28 million: Adjusted EBITDA, a non-GAAP measure, was $28 million against $24 million. The reconciliation table shows $27.8 million. Source
• Patient visits up 8%: Patient visits were about 1.68 million, up 8.3%. Average daily visits per clinic were 33.4 against 32.2, up 3.7%. Source
• All 72 affiliated clinics integrated: The company integrated all 72 clinics under the two hospital affiliation agreements by the end of Q3 2026. Source
• Health benefit costs cut margin: Company-provided health benefit costs were higher than last year's favorable experience, a headwind of about 150 basis points to Q3 margin. Source
• Dilution from improving performance: Management said improving performance raises the value of partners' ownership stakes, which dilutes EPS even though these changes are excluded from net income. Source

“The year-over-year EBITDA improvement reflects the initial benefit of the completed rollout of our first two hospital affiliations.”

Chris Reading, Chairman and Chief Executive Officer

Guidance

What changed from last quarter

• Guidance kept: Full year 2026 adjusted EBITDA guidance range was reaffirmed and not revised from the second quarter release. Source
• New: A new interest rate swap with a $171 million initial notional value was entered into on September 22, 2026. Source
• New: Nchacha Etta is named Chief Financial Officer in this release; the second quarter release named Jason Curtis as Interim Chief Financial Officer. Source

Quarter results and growth

• Revenue rose 13% to $223 million: Total net revenue of $223 million was up 13% from $197 million a year earlier, with physical therapy and IIP both growing. Source
• Loss per share against prior earnings: Net income attributable to USPH shareholders was $11 million, against $13 million. Basic and diluted loss per share was $1.04, compared with earnings of $0.48. Source
• Adjusted EBITDA up to $28 million: Adjusted EBITDA, a non-GAAP measure, was $28 million against $24 million. The reconciliation table shows $27.8 million. Source
• Adjusted earnings per share up: Adjusted net income was $12 million against $10 million, and adjusted EPS was $0.80 against $0.66. Both are non-GAAP measures. Source
• Nine-month revenue up 10%: Nine-month total net revenue was $635 million, up 10%. Nine-month loss per share was $0.90 against earnings of $1.85; adjusted EBITDA was $75 million against $70 million. Source

Physical therapy operations

• Physical therapy revenue up 13%: Physical therapy net revenue was $190 million, up 13%, including a 6% rise in mature revenue. Nine-month physical therapy revenue was $540 million, up 10%. Source
• Patient visits up 8%: Patient visits were about 1.68 million, up 8.3%. Average daily visits per clinic were 33.4 against 32.2, up 3.7%. Source
• Revenue per visit rose $5: Physical therapy net revenue per patient visit was $110.61, up $5.07 from $105.54 a year earlier. Source
• Net patient revenue slightly lower: Net patient revenue fell 1.8% to $161.1 million. Hospital affiliation revenue of $25.0 million appeared as a separate line; other revenue fell 16.4%. Source
• Physical therapy gross profit rose: Physical therapy gross profit was $35.8 million, up 14.8%. Gross profit margin was 18.9% against 18.6%. Source

“Cost pressures from our self-insured employee medical program continued in Q3.”

Chris Reading, Chairman and Chief Executive Officer

Industrial injury prevention

• IIP revenue up 14%: IIP revenue was $33 million, up 14%. Excluding the January 31, 2026 acquisition, IIP revenue rose 8%. Source
• IIP margin rose to 22%: IIP margin was 22% against 20%. IIP gross profit was $7.2 million against $5.7 million, up 27.4%. Source
• Nine-month IIP results: Nine-month IIP revenue was $95 million, up 12%; excluding the acquisition it rose 7%. Nine-month IIP margin was 21% against 20%. Source

Hospital affiliations

• All 72 affiliated clinics integrated: The company integrated all 72 clinics under the two hospital affiliation agreements by the end of Q3 2026. Source
• Affiliated clinics produced $25 million: The 72 hospital-affiliated clinics generated $25 million of revenue in Q3, reported as hospital affiliation revenue. Source
• Two alliances: NYU Langone and gulf coast: Metro's 10-year alliance with NYU Langone covers 60 clinics; a gulf-coast subsidiary's alliance covers 10 clinics, per the second quarter release.

“As a result, we implemented expense control efforts that partially mitigated these overages during the quarter and will benefit future periods.”

Chris Reading, Chairman and Chief Executive Officer

Costs and margins

• Health benefit costs cut margin: Company-provided health benefit costs were higher than last year's favorable experience, a headwind of about 150 basis points to Q3 margin. Source
• Adjusted physical therapy margin: The table shows adjusted physical therapy margin of 19.1% against 18.5%. The release text says it rose 150 basis points, while the table difference is about 60 basis points. Source
• Salaries flat as share of revenue: Salaries and related costs were 58.2% of revenue in both years. Adjusted for Metro incentive costs, they were 58.0% against 58.2%. Source
• Corporate expense share fell: Corporate office costs were $17.8 million against $17.4 million. Corporate expense was 8% of revenue against 9%; the table shows adjusted 7.7% against 8.5%. Source
• Earn-out fair value swung to small loss: Pretax income included a $0.1 million loss on change in fair value of contingent earn-out consideration, against a $6 million gain in Q3 2025. Source
• Payor dispute settlement excluded: A $0.5 million settlement of a payor dispute was recorded in Q3 and is excluded from adjusted EBITDA as a non-GAAP adjustment. Source

Cash, debt and interest rate swap

• Cash and borrowings rose: Cash was $38 million against $36 million at December 31, 2025. Borrowings under the credit facility were $247 million, up from $162 million. Source
• Interest rate swap fixes term debt rate: The swap has a $171 million initial notional value and fixes term debt at 4.6% from June 30, 2027 to April 14, 2031. Source
• Operating cash flow rose: Nine-month net cash from operating activities was $63.9 million, against $50.1 million a year earlier. Source
• Acquisition and capital spending rose: Purchases of majority interests in businesses were $36.5 million in the nine months, against $15.2 million; purchases of fixed assets were $15.8 million, against $10.1 million. Source

Shareholder returns

• Quarterly dividend held at $0.46: The declared dividend was $0.46 per share, the same as the second quarter and up from $0.45 a year earlier. Nine-month dividends declared were $1.38 against $1.35. Source
• Dividends paid rose modestly: Cash dividends paid to shareholders were $20.7 million in the nine months, against $20.5 million. Distributions to non-controlling interests were $16.8 million. Source
• Nine-month share repurchases $19.2 million: Repurchases of common stock were $19.2 million in the nine months, the same as the six-month figure in the second quarter release, which reported 306,256 shares bought. Source

Per-share results and redeemable interests

• Redeemable interest revaluation drives EPS gap: Revaluation of redeemable non-controlling interest charged $36.2 million to retained earnings in Q3, against $7.9 million; nine months $53.9 million against $9.8 million. Source
• Dilution from improving performance: Management said improving performance raises the value of partners' ownership stakes, which dilutes EPS even though these changes are excluded from net income. Source
• Adjusted net income nine months: Nine-month adjusted net income was $30.2 million against $29.7 million; adjusted EPS was $2.01 against $1.96. Source

Locations, acquisitions and leadership

• Locations grew to 799: The company added 21 and closed three locations in Q3, so the count rose from 781 at June 30 to 799 at September 30, 2026. Source
• Acquired 67% of 12-clinic practice: The July 1 acquisition was a 67% equity interest for $16 million; the business generates $12 million annual revenue and 0.1 million annual visits. The second quarter release gave $16.4 million. Source
• Chief financial officer named: The third quarter release names Nchacha Etta as Chief Financial Officer; the second quarter release named Jason Curtis as Interim Chief Financial Officer. Source

Coming up, as management said on 6 November 2026

• Dividend payable December 11: The $0.46 dividend is payable December 11, 2026 to holders of record on November 16, 2026. Source
• Close 2026, accelerate into 2027: Management said it is working to close out 2026 and accelerate into 2027. Source

Figures management reported

Risks management discussed

• Operational: Self-insured employee medical costs continued to pressure results in Q3; management says expense controls partly offset the overages. Source
• Financial: Rising value of redeemable interests dilutes per-share results as performance improves, according to management's explanation. Source

Earlier plans management reported on

• Met: The second quarter release expected the remaining 39 clinics to integrate in Q3; the third quarter release states all 72 were integrated by the end of Q3.
• Not stated: The second quarter release expected accelerated year-over-year adjusted EBITDA improvement in the back half of 2026; the third quarter release does not state status against it.

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.