HOUSTON--(BUSINESS WIRE)--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, today announced that Chris Reading, Chief Executive Officer, presented at the J.P. Morgan 2026 Healthcare Conference on January 14, 2026. About U.S. Physical Therapy, Inc. Founded in 1990, U.S. Physical Therapy, Inc. owns and/or manages 780 outpatient physical therapy clinics in. ...

Core Insights - 4D Advisors has initiated a new position in U.S. Physical Therapy by acquiring 110,000 shares valued at $9.34 million as of September 30, 2025, indicating strong confidence in the company despite recent stock price declines [2][11]. Company Overview - U.S. Physical Therapy operates 591 clinics across 39 states, providing outpatient physical therapy and industrial injury prevention services, which include rehabilitation and ergonomic assessments [7][10]. - The company reported trailing twelve months (TTM) revenue of $758.71 million and net income of $36.02 million, with a dividend yield of 2.5% [5][10]. Financial Performance - As of November 14, 2025, U.S. Physical Therapy's stock price was $71.67, reflecting an 18.75% decline over the past year, underperforming the S&P 500 by 32.75 percentage points [3][12]. - Revenue for the first three quarters of 2025 reached $578.3 million, up from $490.9 million in 2024, indicating growth in sales [12]. Investment Position - The new position in U.S. Physical Therapy represents 4.97% of 4D Advisors' 13F reportable assets under management, making it the third largest holding in the fund [3][11]. - The price-to-earnings ratio for U.S. Physical Therapy has decreased from over 85 in Q3 of the previous year to approximately 32 in 2025, suggesting a potentially attractive valuation for investors [13].

Financial Performance - USPH Net Income for Q3 2025 was $13.1 million, up from $6.6 million in Q3 2024, with earnings per share increasing to $0.48 from $0.39[212]. - For the nine months ended September 30, 2025, USPH Net Income reached $35.4 million, compared to $22.2 million for the same period in 2024, with earnings per share rising to $1.85 from $1.32[213]. - Net income attributable to USPH shareholders for Q3 2025 was $13,138,000, compared to $6,628,000 in Q3 2024, representing a 98.5% increase[215]. - For the nine months ended September 30, 2025, net income attributable to USPH shareholders was $35,430,000, compared to $22,180,000 for the same period in 2024, a 59.7% increase[221]. - Adjusted EBITDA for Q3 2025 was $23,855,000, up from $21,071,000 in Q3 2024, reflecting a 13.2% growth[221]. - Adjusted EBITDA for Q3 2025 was $23.9 million, an increase of $2.8 million, or 13.2%, from $21.1 million in Q3 2024[231]. - Operating income surged by $12.5 million, or 97.2%, to $25.3 million in Q3 2025 from $12.8 million in Q3 2024[230]. - Operating income was $69.9 million for the 2025 Nine Months, compared to $43.3 million for the 2024 Nine Months, marking an increase of 61.5%[278]. Revenue and Patient Visits - Net revenue for Q3 2025 increased by $29.1 million, or 17.3%, to $197.1 million compared to $168.0 million in Q3 2024[230]. - Total patient visits reached 1,554,207 in Q3 2025, an 18.0% increase from 1,317,051 in Q3 2024[238]. - Net patient revenue increased by $24.9 million, or 17.9%, to $164.0 million in Q3 2025 from $139.1 million in Q3 2024[237]. - The total number of patient visits in Q3 2025 reached 1,554,207, compared to 1,317,051 in Q3 2024, marking a 17.9% increase[225]. - The company had 4,556,768 total patient visits for the nine months, an increase of 16.2% from 3,920,388 visits in the prior year[266]. Operating Costs and Expenses - Operating costs for Q3 2025 were $134,979,000, compared to $116,698,000 in Q3 2024, indicating a 15.6% increase[225]. - Total operating costs for the nine months ended September 30, 2025, were $394,060,000, compared to $336,917,000 in the same period of 2024, reflecting a 16.9% increase[226]. - Operating costs increased by $57.1 million, or 16.7%, to $399.9 million for the nine months, with operating costs as a percentage of net revenue decreasing to 81.2% from 81.5%[269]. - Corporate office costs increased to $17.4 million for Q3 2025 from $14.4 million for Q3 2024, representing 8.8% of net revenue compared to 8.6% in the prior year[249]. - Interest expense increased by $0.4 million to $2.4 million for Q3 2025, with an effective interest rate of 5.7% compared to 5.4% in Q3 2024[252]. Acquisitions and Growth - The company completed several acquisitions, including a 60% equity interest in a three-clinic practice on July 31, 2025, and a 40% interest in an outpatient home care practice on April 30, 2025[198][201]. - The company acquired a 100% equity interest in a two-clinic practice for a purchase price of $0.4 million, with additional contingent consideration valued at less than $0.1 million[311]. - The acquisition of a 60% equity interest in a three-clinic practice was completed for approximately $7.6 million, with contingent consideration valued at $2.6 million[312]. - The company acquired an 80% equity interest in an outpatient home-care practice for approximately $2.3 million, with contingent consideration valued at $1.0 million[313]. - The purchase price for a 65% interest in a physical therapy practice was approximately $3.8 million, with contingent consideration valued at $0.3 million[314]. - Revenues from Industrial Injury Prevention (IIP) services increased by $15.2 million or 21.6% to $85.5 million for the 2025 Nine Months compared to $70.3 million for the 2024 Nine Months[275]. Challenges and Regulatory Environment - The company faced challenges related to hiring and retaining qualified employees, impacting its operational capacity[197]. - Medicare reimbursement for therapy services is projected to decrease by approximately 2.9% in 2025, following a 1.8% reduction in 2024[207]. - Regulatory changes, including Medicare reimbursement adjustments, are expected to influence the company's financial performance in the future[205]. Cash Flow and Financial Position - Net cash provided by operating activities was $50.1 million for the 2025 Nine Months, down from $55.5 million for the 2024 Nine Months[294]. - Cash used in investing activities totaled $31.3 million for the 2025 Nine Months, primarily for business acquisitions and fixed asset purchases[295]. - Total cash and cash equivalents were $31.1 million as of September 30, 2025, down from $41.4 million as of December 31, 2024[288]. - As of September 30, 2025, the outstanding balance on the Term Facility was $132.4 million, and $26.5 million was outstanding under the Revolving Facility, resulting in $148.5 million of credit availability[305]. - The interest rate on the Senior Credit Facilities was 5.0% for the 2025 Third Quarter, compared to 4.7% for the 2024 Third Quarter, with an all-in effective interest rate of 5.7% and 5.4% respectively[305].

Financial Performance - Adjusted EBITDA for Q3 2025 was $23.9 million, a 13.2% increase from $21.1 million in Q3 2024, primarily due to clinic additions[3]. - Net income attributable to USPH shareholders for Q3 2025 was $13.1 million, compared to $6.6 million in Q3 2024, with earnings per share increasing to $0.48 from $0.39[3][24]. - Total revenue from physical therapy operations increased by $25.4 million, or 17.8%, to $168.1 million in Q3 2025 from $142.7 million in Q3 2024[3][10]. - Total net revenue for the first nine months of 2025 increased by $87.4 million, or 17.8%, to $578.3 million from $490.9 million in the same period of 2024[26]. - Operating income for the first nine months of 2025 was $69.9 million, compared to $43.3 million for the same period in 2024, marking a significant increase[31]. - Net income for the first nine months of 2025 was $35.4 million, compared to $22.2 million for the same period in 2024, with earnings per share increasing to $1.85[33]. - Comprehensive income attributable to USPH shareholders for the three months ended September 30, 2025, was $12,870, compared to $3,883 in the same period of 2024[50]. - Adjusted EBITDA for the nine months ended September 30, 2025, was $70,256,000, up from $59,966,000 in 2024, reflecting an 17.0% growth[62]. Patient Visits and Clinic Operations - Total patient visits reached 1,554,207 in Q3 2025, an 18.0% increase from 1,317,051 in Q3 2024[3][10]. - Average daily patient visits per clinic reached a record-high of 32.2 in Q3 2025, compared to 30.1 in Q3 2024[3]. - The company added 18 clinics and closed 7 in Q3 2025, bringing the total to 779 clinics as of September 30, 2025, compared to 700 a year earlier[3]. - Revenues from physical therapy operations rose by $72.2 million, or 17.2%, in the first nine months of 2025, driven by the addition of 84 net owned clinics[27]. - The total number of clinics increased to 779 by the end of Q3 2025, up from 700 at the end of Q3 2024, indicating a net addition of 79 clinics year-over-year[70]. - The average visits per clinic per day increased to 32.2 in Q3 2025, compared to 30.1 in Q3 2024, showing an improvement in clinic utilization[68]. Revenue and Costs - Industrial injury prevention services revenue was $29.0 million for Q3 2025, a 14.6% increase from $25.3 million in Q3 2024[3][15]. - Corporate office costs increased to $17.4 million in Q3 2025 from $14.4 million in Q3 2024, primarily due to supporting a larger number of clinics[16]. - Corporate office costs were $51.1 million for the first nine months of 2025, up from $42.7 million in the same period of 2024[29]. - The company reported a total operating cost of $394,060,000 for the nine months ended September 30, 2025, compared to $336,917,000 for the same period in 2024, representing an increase of approximately 17%[65]. - Operating costs per visit decreased slightly to $86.88 in Q3 2025 from $88.61 in Q3 2024, indicating improved cost efficiency[65]. - Salaries and related costs per visit remained stable at $62.07 in Q3 2025, compared to $62.47 in Q3 2024[65]. Cash and Investments - Total cash and cash equivalents decreased to $31.1 million as of September 30, 2025, from $117.0 million a year earlier[35]. - Cash and cash equivalents as of September 30, 2025, were $31,102, down from $41,362 as of December 31, 2024[52]. - Net cash provided by operating activities for the nine months ended September 30, 2025, was $50,126,000, down from $55,531,000 in 2024, a decrease of 9.0%[55]. - Net cash used in investing activities for the nine months ended September 30, 2025, was $(31,269,000), compared to $(54,597,000) in 2024, showing a 42.7% improvement[55]. - Cash and cash equivalents at the end of the period were $31,102,000, down from $116,959,000 at the end of September 30, 2024, a decrease of 73.4%[55]. Acquisitions and Dividends - The company acquired a 60% equity interest in a three-clinic practice, generating $5.3 million in annual revenue[3]. - The company acquired a 60% equity interest in a three-clinic practice on July 31, 2025, which generates approximately $5.3 million in annual revenue[36]. - The company declared dividends of $0.45 per common share for the three months ended September 30, 2025, compared to $0.44 in the same period of 2024[49].

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Core Insights - U.S. Physical Therapy's shares fell 11.5% following the release of third-quarter results, indicating declining year-over-year profitability despite revenue exceeding expectations [1][2] Financial Performance - The company reported adjusted earnings of $0.66 per share, matching analyst estimates but down from $0.69 per share in the same quarter last year [2] - Revenue increased by 17.3% year-on-year to $197.1 million, surpassing Wall Street forecasts [2] - The decline in per-share earnings and a slight miss on adjusted EBITDA raised concerns among investors, overshadowing strong sales growth [2] Market Reaction - The stock's significant drop is notable as U.S. Physical Therapy's shares are generally not very volatile, with only four moves greater than 5% in the past year [4] - The current stock price of $79.78 represents a 20.1% decline from its 52-week high of $99.91 recorded in December 2024 [6] - Year-to-date, the stock is down 9.2%, and an investment of $1,000 made five years ago would now be worth $871.16 [6]

Financial Data and Key Metrics Changes - The company achieved a record average of 32.7 visits per clinic per day, up from 30.6 in the same quarter last year, marking a 7% year-over-year increase [4][12] - Adjusted EBITDA increased to $26.9 million, up $4.7 million from the previous year, with an adjusted EBITDA margin expanding to 17.5% from 16.4% [13][20] - Physical therapy revenues reached $168.3 million, representing a 17.3% increase compared to the same period last year [16] - The gross profit margin for physical therapy improved to 21.1%, up from 20.1% in the prior year [12][16] Business Line Data and Key Metrics Changes - Injury prevention (IIP) revenues increased by 22.6%, with gross profit up 25.8% compared to the prior year [6][17] - IIP net revenues grew by $5.3 million, reflecting strong organic growth attributed to new contracts [17] - The company added over 50 net clinics compared to the prior year period, contributing to the overall growth in patient visits [6][16] Market Data and Key Metrics Changes - The net rate per patient visit was $105.33, slightly up from $105.05 in the same quarter last year, despite a 2.9% Medicare rate reduction [14][15] - Workers' compensation represented 10.4% of net patient revenues, with visits increasing by 8.4% year-over-year [15] Company Strategy and Development Direction - The company plans to focus on expanding its injury prevention business, which has shown strong organic growth and margin improvement [10][17] - The introduction of cash-based programs has generated approximately $900,000 in additional revenue, indicating a new revenue stream [22] - The company has raised its full-year 2025 adjusted EBITDA guidance from $88-$93 million to $93-$97 million, reflecting confidence in continued growth [20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the operating environment, noting strong demand for services despite some staffing challenges [26] - The company is actively working on increasing reimbursement rates through targeted contract negotiations [15] - Management highlighted the positive impact of AI tools on operational efficiency, particularly in clinical documentation [38][39] Other Important Information - The company has authorized a share repurchase program of up to $25 million, providing flexibility for capital allocation [19] - Implementation costs for a new enterprise-wide financial and human resources system will continue through 2026, with $221,000 incurred year-to-date [18] Q&A Session Summary Question: How would you characterize demand for your services? - Management indicated that demand is solid across most markets, although some areas face staffing challenges [26] Question: How do you view capital deployment for de novo builds? - Management expects this to be one of the strongest years for de novo openings, with adjustments made to recruiting efforts [29] Question: Can you provide an update on labor management strategies? - The company has seen a 25% increase in student clinical rotations and is implementing mentorship programs to reduce turnover [45][46] Question: What is the outlook for Medicare rates in 2026? - Management anticipates a positive increase in Medicare rates, estimating a 1% to 1.75% increase, translating to $2 million to $3 million in additional revenue [58][59] Question: How is the injury prevention segment performing? - The injury prevention segment is ahead of budget, with strong organic growth and continued capital deployment expected [68]

Core Viewpoint - U.S. Physical Therapy (USPH) reported quarterly earnings of $0.66 per share, missing the Zacks Consensus Estimate of $0.67 per share, and showing a decline from $0.69 per share a year ago, indicating an earnings surprise of -1.49% [1] Financial Performance - The company posted revenues of $197.13 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 1.36%, and showing an increase from $168.03 million year-over-year [2] - Over the last four quarters, U.S. Physical Therapy has exceeded consensus revenue estimates four times [2] Stock Performance - U.S. Physical Therapy shares have declined approximately 1.9% since the beginning of the year, contrasting with the S&P 500's gain of 15.1% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.69 on revenues of $198.26 million, and for the current fiscal year, it is $2.61 on revenues of $773.83 million [7] - The estimate revisions trend for U.S. Physical Therapy was mixed ahead of the earnings release, which may change following the recent report [6] Industry Context - The Medical - Outpatient and Home Healthcare industry, to which U.S. Physical Therapy belongs, is currently ranked in the top 18% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]

Core Insights - The article highlights two healthcare facility stocks, Concentra Group Holdings and US Physical Therapy, as strong investment opportunities due to favorable market conditions and demographic trends [1][13]. Concentra Group Holdings - Concentra is the largest outpatient provider of occupational health services in the U.S., with a market cap of $2.65 billion and a network of 11,000 health professionals [1]. - The company serves over 50,000 patients daily and operates more than 540 medical centers, treating 1 in 5 workplace injuries [9]. - Concentra's revenue for 2Q25 was $550.8 million, a 15% year-over-year increase, exceeding forecasts by $13.44 million [10]. - The company focuses on occupational health and workplace injury management, partnering with over 239,000 employers [7][8]. - J.P. Morgan analyst Benjamin Rossi rates Concentra as Overweight with a price target of $31, indicating a potential upside of 50% [12]. US Physical Therapy - US Physical Therapy operates outpatient clinics for physical and occupational therapy, with a market cap of $1.2 billion and over 765 clinics across 44 states [13]. - The company reported revenue of $197.3 million in 2Q25, an 18% year-over-year increase, beating forecasts by $7.45 million [16]. - US Physical Therapy is well-positioned to benefit from demographic trends such as an aging population and increasing obesity rates, driving demand for physical therapy services [17]. - Rossi rates US Physical Therapy as Overweight with a price target of $110, suggesting a potential gain of 34% [17].

Core Viewpoint - Investors are evaluating Astrana Health, Inc. (ASTH) and U.S. Physical Therapy (USPH) to determine which stock offers better value opportunities in the Medical - Outpatient and Home Healthcare sector [1] Valuation Metrics - ASTH has a Zacks Rank of 1 (Strong Buy), while USPH has a Zacks Rank of 3 (Hold), indicating a stronger earnings outlook for ASTH compared to USPH [3] - ASTH's forward P/E ratio is 23.09, significantly lower than USPH's forward P/E of 31.71, suggesting that ASTH may be undervalued [5] - The PEG ratio for ASTH is 0.78, while USPH's PEG ratio is 4.15, indicating that ASTH has a more favorable earnings growth outlook relative to its price [5] - ASTH's P/B ratio is 2.28, compared to USPH's P/B of 2.5, further supporting the argument that ASTH is a better value option [6] - ASTH has a Value grade of B, while USPH has a Value grade of C, reinforcing the conclusion that ASTH is the preferred choice for value investors [6]