U.S. Physical Therapy Reports Robust 2025 Growth, Cements Future with Strategic Alliances

HOUSTON, TX – February 25, 2026 – U.S. Physical Therapy, Inc. (NYSE: USPH) today announced impressive financial results for the fourth quarter and full-year 2025, signaling a period of significant operational strength and strategic expansion. The national operator of outpatient physical therapy clinics showcased double-digit revenue growth, record patient volumes, and a series of transformative moves—including major hospital alliances and key acquisitions—that position it for continued dominance in the evolving healthcare landscape.

Highlighting the company's momentum, full-year 2025 Adjusted EBITDA, a key non-GAAP measure of profitability, surged 16.2% to $95.0 million. This was fueled by a 16.3% increase in net revenue, which reached $781.0 million for the year. The strong performance was capped by a solid fourth quarter that saw physical therapy operations' revenue climb 13.0% to $173.8 million compared to the prior-year period.

In his comments, Chief Executive Officer Chris Reading celebrated the results, stating, “Our team delivered a strong finish to a solid year where we made progress around a number of key initiatives which helped to deliver revenue growth of more than 16%, gross profit growth of over 20%, and margin and net rate improvements, among other positive developments.”

A Tale of Two Metrics: Strong Growth Amidst Accounting Complexities

While top-line growth and Adjusted EBITDA painted a clear picture of success, the company’s GAAP-based earnings per share (EPS) presented a more complex narrative. For the full year, GAAP net income attributable to USPH shareholders rose to $39.6 million from $31.4 million in 2024. However, EPS decreased to $1.42 from $1.84. Similarly, the fourth quarter saw a net loss per share of $0.44 compared to earnings of $0.52 in Q4 2024.

This discrepancy is primarily due to non-cash accounting treatments related to the company's successful partnership model. Under GAAP, the increased value of ownership interests held by USPH's clinic partners (redeemable non-controlling interests) is recorded as a reduction to earnings per share. As the company's performance improves, the value of these partnerships increases, creating a significant, albeit non-cash, charge against EPS. For the full year, this revaluation reduced earnings per share by $18.0 million, net of taxes.

To provide a clearer view of operational performance, the company also reports non-GAAP Operating Results. On this basis, full-year 2025 results were $2.63 per share, a healthy increase from $2.45 per share in 2024. The fourth quarter showed an even more pronounced improvement, with Operating Results of $0.67 per share, up from $0.51 in the same period last year.

Forging Powerful Alliances with Hospital Systems

Beyond the financial statements, USPH made significant strategic moves in early 2026 that promise to fuel future growth. The company announced two separate 10-year strategic alliances with major hospital systems, integrating a total of 70 of its affiliated outpatient clinics directly into the hospitals' clinical networks.

On February 2, 2026, USPH's subsidiary partner, MSO Metro LLC, entered into an agreement with a prominent New York hospital system. The deal will bring 60 of Metro's existing clinics into the hospital's network. A second alliance, announced on February 25, will see another subsidiary partner integrate its 10 clinics with a local hospital system.

These partnerships are a strategic masterstroke in an industry where securing patient referrals is paramount. By becoming an extension of the hospital's services, these clinics are expected to see a more consistent and integrated flow of patients. USPH projects the arrangements will be accretive to revenue, EBITDA, and margins. Upon full integration, the company estimates these two alliances will contribute at least $7.3 million in incremental annualized EBITDA attributable to USPH's ownership interest.

Expansion Continues with Strategic Acquisitions

Reinforcing its long-standing growth strategy, USPH also announced the completion of two acquisitions in January 2026. The company acquired a 50% interest in an eight-clinic practice that generates approximately $8.0 million in annual revenue. This move follows USPH's typical partnership model, where previous owners retain a significant equity stake, ensuring continued local leadership and commitment.

Later in the month, the company expanded its industrial injury prevention (IIP) segment by acquiring a 70% interest in a business generating approximately $7.0 million in annual revenue. The IIP segment, which provides onsite services like injury prevention, ergonomic assessments, and rehabilitation for corporate clients, saw its revenue grow 8.7% in the fourth quarter, and this acquisition further solidifies its market position.

These acquisitions, combined with organic growth, contributed to a net increase in clinic count, ending the year with 780 clinics across 44 states, up from 761 at the end of 2024.

Operational Excellence and Shareholder Confidence

The company's growth was not just a result of expansion but also of strong performance at its existing locations. Average daily patient visits per clinic hit a record high for a fourth quarter at 32.7, up from 31.6 a year prior. Total patient visits in the fourth quarter rose by a substantial 11.2% to over 1.59 million, while the net rate per visit also ticked up to $106.49.

Demonstrating confidence in its financial stability and future prospects, USPH's Board of Directors took two shareholder-friendly actions. First, it raised the quarterly dividend from $0.45 to $0.46 per share. Second, the company repurchased 81,322 shares of its common stock for $5.6 million during the fourth quarter.

Leadership Transition and A Look Ahead to 2026

The company also announced a transition in its executive ranks. Chief Financial Officer Carey Hendrickson will be resigning effective April 24, 2026, to pursue another opportunity. Jason Curtis, the company's Senior Vice President of Finance and Accounting, will step in as interim CFO while a search for a permanent successor is conducted.

Despite the leadership change, the company's outlook for 2026 remains bullish. Management issued guidance for 2026 Adjusted EBITDA to be in the range of $102.0 million to $106.0 million. This forecast incorporates a modest contribution from the new hospital alliances, which will begin a phased ramp-up mid-year, as well as an estimated $2.5 million benefit from the 2026 Medicare rate increase.

As Chris Reading noted, “We have a very clear plan for the year ahead and we are excited to bring those plans to fruition with the capable help of our partners and our support teams around the country.”