U.S. Physical Therapy(USPH) - 2025 Q2 - Quarterly Results

Company Overview & Highlights U.S. Physical Therapy, Inc. (USPH) reported strong Q2 2025 results with record patient visits, significant financial growth, strategic acquisitions, and an upward revision of full-year guidance Introduction U.S. Physical Therapy, Inc. (USPH) reported its Second Quarter 2025 results, highlighting record patient visits and an upward revision of its full-year 2025 guidance - U.S. Physical Therapy, Inc. (USPH) reported results for the three and six months ended June 30, 2025, on August 6, 2025[1] - The company is a national operator of outpatient physical therapy clinics and a provider of industrial injury prevention services[1] - The report announced all-time record patient visits and raised full-year 2025 guidance[1] Financial Highlights (Q2 & YTD) USPH demonstrated strong financial performance in Q2 2025, with significant increases across key metrics including Adjusted EBITDA, net income, total revenue, and patient visits, leading to an upward revision of full-year guidance. Strategic acquisitions also contributed to growth | Metric | Q2 2025 | Q2 2024 | Change ($) | Change (%) | | :----- | :------ | :------ | :--------- | :--------- | | Adjusted EBITDA (Non-GAAP) | $26.9 million | $22.1 million | $4.7 million | 21.4% | | USPH Net Income (GAAP) | $12.4 million | $7.5 million | $4.9 million | 65.3% | | Earnings Per Share | $0.58 | $0.47 | $0.11 | 23.4% | | Operating Results (Non-GAAP) | $12.4 million | $11.0 million | $1.4 million | 11.8% | | Operating Results Per Share | $0.81 | $0.73 | $0.08 | 10.9% | | Total Revenue (PT Operations) | $168.3 million | $143.5 million | $24.8 million | 17.3% | | Net Rate Per Patient Visit | $105.33 | $105.05 | $0.28 | 0.3% | | Total Patient Visits | 1,558,756 | 1,335,335 | 223,421 | 16.7% | | Average Daily Patient Visits Per Clinic | 32.7 | 30.6 | 2.1 | 6.9% | | IIP Revenue | $29.1 million | $23.7 million | $5.4 million | 22.6% | | IIP Gross Profit | $6.4 million | $5.1 million | $1.3 million | 25.8% | - The Company added six clinics and closed four in Q2 2025, bringing its total owned and/or managed clinic count to 768 as of June 30, 2025, up from 722 as of June 30, 2024[2] - Acquired an 80% equity interest in an outpatient home-care physical and speech therapy practice on April 30, 2025, generating approximately $2.1 million in annual revenue[2] - Acquired a 60% equity interest in a three-clinic practice on July 31, 2025, generating $5.3 million in annual revenue and approximately 28,000 annual visits[3] - Management increased its guidance for Adjusted EBITDA for full-year 2025 to a range of $93.0 million to $97.0 million[3] Management's Comments CEO Chris Reading emphasized record patient volumes in the physical therapy business, continued strong growth in industrial injury prevention, and the positive impact of strategic acquisitions, all contributing to the updated earnings guidance - Physical therapy business volumes remain at record levels, supported by cost rationalization and improved efficiencies[4] - The industrial injury prevention business continues its strong growth path, both organically and through strategic acquisitions that broaden service offerings and market exposure[4] - Updated earnings guidance reflects the company's efforts and expected progress[4] Second Quarter 2025 Financial Performance USPH's Q2 2025 performance saw robust growth in physical therapy and industrial injury prevention, improved operating income, and increased net income, despite rising corporate costs and interest expenses Physical Therapy Operations (Q2) Physical therapy operations experienced robust growth in Q2 2025, with total revenue increasing by 17.3% and gross profit by 22.4%. This growth was driven by an increase in net clinics and a higher net rate per patient visit, despite Medicare rate reductions, leading to an improved adjusted gross profit margin | Metric | Q2 2025 | Q2 2024 | Change ($) | Change (%) | | :----- | :------ | :------ | :--------- | :--------- | | Net Patient Revenue (in thousands) | $164,183 | $140,271 | $23,912 | 17.0% | | Other Revenue (in thousands) | $4,109 | $3,215 | $894 | 27.8% | | Total Revenue (in thousands) | $168,292 | $143,486 | $24,806 | 17.3% | | Operating Costs (in thousands) | $133,059 | $114,703 | $18,356 | 16.0% | | Gross Profit (in thousands) | $35,233 | $28,783 | $6,450 | 22.4% | | Net Rate Per Patient Visit | $105.33 | $105.05 | $0.28 | 0.3% | | Patient Visits | 1,558,756 | 1,335,335 | 223,421 | 16.7% | | Average Daily Visits Per Clinic | 32.7 | 30.6 | 2.1 | 6.9% | | Adjusted Gross Profit Margin | 21.1% | 20.1% | - | 1.0 pp | | Salaries and Related Costs Per Visit | $60.08 | $59.66 | $0.42 | 0.7% | | Operating Costs Per Visit | $83.95 | $84.46 | $(0.51) | (0.6)% | - Revenue growth was primarily due to an increase in visits from 51 net clinics added since the comparable prior year period and an increase in net rate per patient visit, despite an approximate 2.9% Medicare rate reduction[9] - Total operating costs per visit decreased by 0.6% as higher visit volumes did not result in a proportional increase in fixed costs[10] Industrial Injury Prevention Services (Q2) Industrial Injury Prevention (IIP) services demonstrated strong growth in Q2 2025, with net revenue increasing by 22.6% and gross profit by 25.8%, resulting in an improved gross profit margin of 22.0% | Metric | Q2 2025 | Q2 2024 | Change ($) | Change (%) | | :----- | :------ | :------ | :--------- | :--------- | | Net Revenue (in thousands) | $29,052 | $23,704 | $5,348 | 22.6% | | Operating Costs (in thousands) | $22,661 | $18,625 | $4,036 | 21.7% | | Gross Profit (in thousands) | $6,391 | $5,079 | $1,312 | 25.8% | | Gross Margin | 22.0% | 21.4% | - | 0.6 pp | - Excluding the IIP acquisition made in April 2024, IIP revenue increased by 18.4% and gross profit increased by 21.8% in Q2 2025[13] Corporate Office and Other Expenses (Q2) Corporate office costs increased in Q2 2025 due to supporting a larger clinic base, acquisition integration, and new system implementation. Operating income significantly improved, largely driven by a net gain from the revaluation of contingent consideration, while interest income declined due to cash deployment for acquisitions - Corporate office costs increased to $17.5 million (8.9% of net revenue) in Q2 2025 from $14.2 million (8.5% of net revenue) in Q2 2024, primarily to support clinic growth, acquisition integration, and new financial/HR system implementation[14] - Recognized a net gain of $0.8 million from the revaluation of contingent consideration in Q2 2025, a significant improvement from a net loss of $4.0 million in Q2 2024[15] - Operating income was $24.9 million for Q2 2025, compared to $15.6 million for Q2 2024[16] - Interest expense increased by $0.4 million to $2.4 million in Q2 2025 due to a higher average outstanding balance on the revolving credit facility[17] - Interest income decreased to less than $0.1 million in Q2 2025 from $1.1 million in Q2 2024, as cash was deployed to fund acquisitions[18] - The provision for income taxes was $4.9 million in Q2 2025 (effective tax rate 28.5%) compared to $3.1 million in Q2 2024 (effective tax rate 29.1%)[20] USPH Net Income and Non-GAAP Measures (Q2) USPH Net Income, Adjusted EBITDA, and Operating Results all showed substantial year-over-year growth in Q2 2025, reflecting improved overall profitability and operational efficiency | Metric | Q2 2025 | Q2 2024 | Change ($) | Change (%) | | :----- | :------ | :------ | :--------- | :--------- | | Net Income Attributable to Non-Controlling Interest | $5.3 million | $4.2 million | $1.1 million | 26.2% | | USPH Net Income | $12.4 million | $7.5 million | $4.9 million | 65.3% | | Earnings Per Share | $0.58 | $0.47 | $0.11 | 23.4% | | Adjusted EBITDA (Non-GAAP) | $26.9 million | $22.1 million | $4.7 million | 21.4% | | Operating Results (Non-GAAP) | $12.4 million | $11.0 million | $1.4 million | 11.8% | | Operating Results Per Share (Non-GAAP) | $0.81 | $0.73 | $0.08 | 10.9% | Six Months Ended June 30, 2025 Financial Performance For the first six months of 2025, USPH achieved strong revenue and gross profit growth across both physical therapy and industrial injury prevention segments, with improved operating income and net income Overall Performance (YTD) For the first six months of 2025, USPH achieved an 18.0% increase in total net revenue and a 16.7% rise in gross profit, demonstrating strong top-line growth, though the gross profit margin slightly decreased | Metric | YTD 2025 | YTD 2024 | Change ($) | Change (%) | | :----- | :------- | :------- | :--------- | :--------- | | Total Net Revenue (in millions) | $381.1 | $322.9 | $58.3 | 18.0% | | Operating Costs (in millions) | $308.4 | $260.6 | $47.8 | 18.4% | | Gross Profit (in millions) | $72.7 | $62.3 | $10.4 | 16.7% | | Gross Profit Margin | 19.1% | 19.3% | - | (0.2) pp | Physical Therapy Operations (YTD) Physical therapy operations revenue increased by 16.8% year-to-date, driven by volume from new clinics and an improved net rate per patient visit. Gross profit also saw a significant increase of 14.9% | Metric | YTD 2025 | YTD 2024 | Change ($) | Change (%) | | :----- | :------- | :------- | :--------- | :--------- | | Revenue (in millions) | $325.0 | $278.2 | $46.8 | 16.8% | | Net Rate Per Patient Visit | $105.49 | $104.23 | $1.26 | 1.2% | | Gross Profit (in millions) | $60.7 | $52.8 | $7.9 | 14.9% | | Adjusted Gross Profit Margin | 18.8% | - | - | - | - Revenue growth was attributed to increased volume from 51 net new clinics added since the comparable prior year period and an increase in net rate per patient visit[25] Industrial Injury Prevention Services (YTD) IIP services continued their strong performance year-to-date, with revenue growing by 25.5% and gross profit by 27.3%, resulting in an improved gross profit margin of 21.2% | Metric | YTD 2025 | YTD 2024 | Change ($) | Change (%) | | :----- | :------- | :------- | :--------- | :--------- | | Revenue (in millions) | $56.4 | $44.9 | $11.5 | 25.5% | | Gross Profit (in millions) | $12.0 | $9.4 | $2.6 | 27.3% | | Gross Profit Margin | 21.2% | 20.9% | - | 0.3 pp | - Excluding the April 2024 IIP acquisition, IIP revenue increased by 16.7% and gross profit by 21.0% year-to-date[26] Corporate Office and Other Expenses (YTD) Corporate office costs increased year-to-date but remained stable as a percentage of net revenue. Operating income saw a substantial increase, partly due to a net gain on contingent consideration revaluation, while other expenses rose due to higher interest costs and lower interest income - Corporate office costs were $33.7 million (8.8% of net revenue) in YTD 2025, compared to $28.3 million (8.8% of net revenue) in YTD 2024[27] - Recognized a net gain of $5.6 million from the revaluation of contingent consideration in YTD 2025, compared to a net loss of $3.4 million in YTD 2024[28] - Operating income was $44.6 million for YTD 2025, compared to $30.5 million for YTD 2024[29] - Other expenses increased to $4.6 million in YTD 2025 from $0.9 million in YTD 2024, primarily due to higher interest expense from increased borrowings and lower interest income[30] - The provision for income tax was $8.8 million in YTD 2025 (effective tax rate 28.3%) compared to $6.2 million in YTD 2024 (effective tax rate 28.6%)[31] USPH Net Income and Non-GAAP Measures (YTD) USPH Net Income and non-GAAP measures for the six months ended June 30, 2025, showed solid growth, with USPH Net Income increasing by 43.3% and Adjusted EBITDA by 19.3%, reflecting improved profitability | Metric | YTD 2025 | YTD 2024 | Change ($) | Change (%) | | :----- | :------- | :------- | :--------- | :--------- | | USPH Net Income (in millions) | $22.3 | $15.6 | $6.7 | 43.3% | | Earnings Per Share | $1.38 | $0.93 | $0.45 | 48.4% | | Adjusted EBITDA (Non-GAAP) (in millions) | $46.4 | $38.9 | $7.5 | 19.3% | | Operating Results (Non-GAAP) (in millions) | $19.7 | $18.8 | $0.9 | 4.8% | | Operating Results Per Share (Non-GAAP) | $1.30 | $1.25 | $0.05 | 4.0% | Financial Position and Strategic Activities USPH's financial position reflects cash deployment for strategic acquisitions, increased borrowings, and a new share repurchase program, alongside an upward revision of full-year Adjusted EBITDA guidance and a declared quarterly dividend Balance Sheet and Cash Flow As of June 30, 2025, USPH's cash and cash equivalents decreased compared to prior periods, reflecting the deployment of cash for strategic acquisitions. Outstanding borrowings increased, while available credit under the revolving facility slightly decreased | Metric (in millions) | June 30, 2025 | Dec 31, 2024 | June 30, 2024 | | :----- | :------------ | :----------- | :------------ | | Cash and Cash Equivalents | $34.1 | $41.4 | $112.9 | | Outstanding Borrowings | $159.5 | $151.6 | - | | Available Credit | $150.5 | $164.0 | - | Recent Acquisitions USPH continues to execute its growth strategy through strategic acquisitions, recently acquiring an outpatient home-care practice and a three-clinic practice, expanding its service offerings and market presence - On April 30, 2025, the Company acquired an 80% equity interest in an outpatient home-care physical and speech therapy practice, which currently generates approximately $2.1 million in annual revenue[36] - On July 31, 2025, the Company acquired a 60% equity interest in a three-clinic practice, which currently generates $5.3 million in annual revenue and approximately 28,000 annual visits[37] - The Company's strategy is to continue acquiring multi-clinic outpatient physical therapy practices, home-care physical and speech therapy practices, developing satellite clinics, and acquiring industrial injury prevention services companies[38] 2025 Earnings Guidance Management raised its full-year 2025 Adjusted EBITDA guidance to a range of $93.0 million to $97.0 million, reflecting strong year-to-date performance and confidence in continued solid results - Management increased its Adjusted EBITDA guidance for full-year 2025 to a range of $93.0 million to $97.0 million[39] - The guidance update is based on strong year-to-date performance and management's confidence in delivering solid results[39] - Annual earnings guidance figures will only be updated if there is a material development causing Adjusted EBITDA to be significantly outside the given range[40] Quarterly Dividend The Board of Directors declared a quarterly dividend of $0.45 per share, payable in September 2025 - The Company's Board of Directors declared a quarterly dividend of $0.45 per share[41] - The dividend is payable on September 12, 2025, to shareholders of record on August 22, 2025[41] Share Repurchase Program The Board of Directors approved a new share repurchase program, authorizing the repurchase of up to $25 million of common stock through December 31, 2026 - The Company's Board of Directors approved a share repurchase program effective August 5, 2025[42] - The program authorizes the repurchase of up to $25 million of outstanding common stock over the period ending on December 31, 2026[42] - Repurchases may occur in the open market or negotiated transactions, depending on factors like stock price performance, capital allocation, and market conditions[42] Additional Information This section provides essential supplementary information, including conference call details, forward-looking statements with associated risk factors, a glossary of key revenue metrics, and an overview of U.S. Physical Therapy, Inc.'s business operations Conference Call Information Details for accessing the conference call are provided, with information available on the Company's website until November 5, 2025 - Conference call information can be accessed on the Company's website until November 5, 2025[43] Forward-Looking Statements & Risk Factors The press release contains forward-looking statements that are subject to various risks and uncertainties, including changes in healthcare regulations, reimbursement rates, competitive conditions, and the ability to integrate acquisitions, which could cause actual results to differ materially - The press release contains forward-looking statements regarding financial condition, results of operations, plans, objectives, future performance, and business[43] - These statements involve risks and uncertainties, including changes in Medicare rules, reimbursement rates, compliance with federal and state laws, competitive conditions, and the ability to identify and complete acquisitions[44] - Readers should not place undue reliance on forward-looking statements and are advised to refer to the 'Risk Factors' section in the Company's Annual Report on Form 10-K for additional information[45] Glossary of Terms – Revenue Metrics This section defines key revenue metrics used in the financial reporting, such as 'Mature clinics,' 'Net rate per patient visit,' 'Patient visits,' and 'Average daily visits per clinic per day,' to ensure clarity and consistency in interpretation - Mature clinics are defined as clinics (physical clinic locations and home-care business units) opened or acquired prior to January 1, 2024, and still operating[46] - Net rate per patient visit is calculated as net patient revenue from physical therapy operations divided by the total number of patient visits[46] - Patient visits refer to the number of unique patient visits for both physical clinic locations and home-care during the reported periods[47] - Average daily visits per clinic per day excludes home-care visits and is calculated based on operating days and the average number of clinics in operation[47] About U.S. Physical Therapy, Inc. U.S. Physical Therapy, Inc. is a leading operator and/or manager of outpatient physical therapy clinics across 44 states, providing comprehensive care for various orthopedic and neurological conditions, and also offers industrial injury prevention services - Founded in 1990, U.S. Physical Therapy, Inc. owns and/or manages 774 outpatient physical therapy clinics in 44 states[48] - USPH clinics provide preventative and post-operative care for orthopedic-related disorders, sports-related injuries, treatment for neurologically-related injuries, and rehabilitation of injured workers[48] - The Company also operates an industrial injury prevention business, offering onsite services such as injury prevention, rehabilitation, performance optimization, and ergonomic assessments[48] Consolidated Financial Statements This section presents the unaudited consolidated financial statements, including statements of income, comprehensive income, balance sheets, and cash flows, for the reported periods, providing a detailed overview of the company's financial health and performance Unaudited Consolidated Statements of Income This section presents the unaudited consolidated statements of income for the three and six months ended June 30, 2025 and 2024, detailing revenue, operating costs, gross profit, operating income, and net income attributable to USPH shareholders | Metric (in thousands) | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :-------------------- | :------ | :------ | :------- | :------- | | Net patient revenue | $164,183 | $140,271 | $316,730 | $271,346 | | Other revenue | $33,161 | $26,919 | $64,402 | $51,519 | | Net revenue | $197,344 | $167,190 | $381,132 | $322,865 | | Total operating cost | $155,720 | $133,328 | $308,443 | $260,602 | | Gross profit | $41,624 | $33,862 | $72,689 | $62,263 | | Corporate office costs | $17,476 | $14,249 | $33,721 | $28,334 | | (Gain) loss on change in fair value of contingent earn-out consideration | $(790) | $4,046 | $(5,612) | $3,434 | | Operating income | $24,938 | $15,567 | $44,580 | $30,495 | | Total other expense | $(2,285) | $(772) | $(4,599) | $(944) | | Income before taxes | $22,653 | $14,795 | $39,981 | $29,551 | | Provision for income taxes | $4,933 | $3,083 | $8,793 | $6,222 | | Net income | $17,720 | $11,712 | $31,188 | $23,329 | | Net income attributable to USPH shareholders | $12,393 | $7,506 | $22,292 | $15,552 | | Basic and diluted earnings per share attributable to USPH shareholders | $0.58 | $0.47 | $1.38 | $0.93 | | Dividends declared per common share | $0.45 | $0.44 | $0.90 | $0.88 | Unaudited Consolidated Statements of Comprehensive Income This section presents the unaudited consolidated statements of comprehensive income for the three and six months ended June 30, 2025 and 2024, including net income and other comprehensive income/loss components | Metric (in thousands) | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :-------------------- | :------ | :------ | :------- | :------- | | Net income | $17,720 | $11,712 | $31,188 | $23,329 | | Other comprehensive (loss) gain: | | | | | | Unrealized (loss) gain on cash flow hedge | $(798) | $(31) | $(2,129) | $1,750 | | Tax effect | $204 | $8 | $544 | $(447) | | Comprehensive income | $17,126 | $11,689 | $29,603 | $24,632 | | Comprehensive income attributable to non-controlling interest | $(5,327) | $(4,206) | $(8,896) | $(7,777) | | Comprehensive income attributable to USPH shareholders | $11,799 | $7,483 | $20,707 | $16,855 | Consolidated Balance Sheet This section provides the consolidated balance sheet as of June 30, 2025, and December 31, 2024, detailing the company's assets, liabilities, redeemable non-controlling interest, and USPH shareholders' equity | Metric (in thousands) | June 30, 2025 | Dec 31, 2024 | | :-------------------- | :------------ | :----------- | | ASSETS | | | | Total current assets | $140,532 | $137,583 | | Fixed assets, net | $32,121 | $32,140 | | Operating lease right-of-use assets | $137,248 | $133,936 | | Goodwill | $677,595 | $667,152 | | Other identifiable intangible assets, net | $175,627 | $179,311 | | Total assets | $1,179,600 | $1,167,467 | | LIABILITIES & EQUITY | | | | Total current liabilities | $118,842 | $116,283 | | Revolving facility | $24,500 | $11,000 | | Term loan, net of current portion and deferred financing costs | $127,093 | $130,627 | | Deferred taxes | $34,402 | $29,465 | | Operating lease liabilities, net of current portion | $104,279 | $101,868 | | Total liabilities | $414,008 | $408,421 | | Redeemable non-controlling interest - temporary equity | $263,298 | $269,025 | | Total USPH shareholders' equity | $500,750 | $488,929 | | Non-controlling interest - permanent equity | $1,544 | $1,092 | | Total liabilities, redeemable non-controlling interest, USPH shareholders' equity and non-controlling interest - permanent equity | $1,179,600 | $1,167,467 | Unaudited Consolidated Statements of Cash Flow This section presents the unaudited consolidated statements of cash flow for the six months ended June 30, 2025 and 2024, detailing cash flows from operating, investing, and financing activities, and showing a net decrease in cash and cash equivalents | Metric (in thousands) | YTD 2025 | YTD 2024 | | :-------------------- | :------- | :------- | | Net cash provided by operating activities | $30,186 | $33,411 | | Net cash (used in) investing activities | $(19,334) | $(48,755) | | Net cash (used in) financing activities | $(18,128) | $(24,570) | | Net (decrease) in cash and cash equivalents | $(7,276) | $(39,914) | | Cash and cash equivalents - end of period | $34,086 | $112,911 | - Cash paid for income taxes increased to $9,833 thousand in YTD 2025 from $4,932 thousand in YTD 2024[60] - Cash paid for interest increased to $4,683 thousand in YTD 2025 from $3,708 thousand in YTD 2024[60] Non-GAAP Financial Measures Reconciliation This section defines and reconciles non-GAAP financial measures, Adjusted EBITDA and Operating Results, to their GAAP equivalents, providing clarity on how management assesses financial performance by excluding certain non-recurring or non-cash items Adjusted EBITDA and Operating Results This section defines and explains the rationale for using non-GAAP financial measures, Adjusted EBITDA and Operating Results, which management utilizes to evaluate and monitor financial performance by excluding certain volatile or unusual costs for better period-to-period comparability - Adjusted EBITDA and Operating Results are non-GAAP measures used by management to compare the Company's period-to-period results and with other similar businesses[62] - Adjusted EBITDA is defined as net income attributable to USPH shareholders before interest income, interest expense, taxes, depreciation, amortization, and other specific non-recurring or non-cash items[63] - Operating Results equals net income attributable to USPH shareholders less specific adjustments for revaluation of put-right liability, clinic closure costs, contingent earn-out changes, business acquisition related costs, and ERP implementation costs, net of taxes and non-controlling interests[64] - These non-GAAP measures should not be considered in isolation or as an alternative to, or substitute for, net income attributable to USPH shareholders presented in the consolidated financial statements[65] Reconciliation of Non-GAAP Measures to GAAP This section provides detailed reconciliations of Adjusted EBITDA and Operating Results to the most directly comparable GAAP measures for the three and six months ended June 30, 2025 and 2024, along with reconciliations for other non-GAAP segment information related to physical therapy operations | Metric (in thousands) | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :-------------------- | :------ | :------ | :------- | :------- | | Adjusted EBITDA (Non-GAAP) | $26,863 | $22,124 | $46,402 | $38,895 | | Net income attributable to USPH shareholders | $12,393 | $7,506 | $22,292 | $15,552 | | Adjustments (e.g., taxes, D&A, interest, equity-based awards, contingent earn-out, clinic closure, acquisition costs, ERP costs, NCI allocation) | $14,470 | $14,618 | $24,110 | $23,343 | | Operating Results (Non-GAAP) | $12,350 | $11,044 | $19,663 | $18,776 | | Operating Results per share (Non-GAAP) | $0.81 | $0.73 | $1.30 | $1.25 | | Physical Therapy Operations (in thousands) | As Reported (GAAP) Q2 2025 | Adjustments Q2 2025 | As Adjusted (Non-GAAP) Q2 2025 | As Reported (GAAP) YTD 2025 | Adjustments YTD 2025 | As Adjusted (Non-GAAP) YTD 2025 | | :--------------------------------------- | :------------------------- | :------------------ | :----------------------------- | :-------------------------- | :------------------- | :------------------------------ | | Salaries and related costs | $93,877 | $(229) | $93,648 | $185,676 | $(294) | $185,382 | | Operating costs | $131,093 | $(229) | $130,864 | $260,064 | $(294) | $259,770 | | Gross profit | $35,233 | $229 | $35,462 | $60,701 | $294 | $60,995 | | Gross margin | 20.9% | * | 21.1% | 18.7% | * | 18.8% | | Salaries and related costs per visit | $60.23 | $(0.15) | $60.08 | $61.84 | $(0.10) | $61.74 | | Operating costs per visit | $84.10 | $(0.15) | $83.95 | $86.62 | $(0.10) | $86.52 | Supplemental Financial and Performance Metrics This section provides detailed supplemental financial and performance metrics, including revenue breakdowns, clinic counts, and operational statistics, offering a comprehensive view of the company's operational trends and growth Revenue Metrics This section provides a detailed breakdown of key revenue and operational metrics, including clinic count, net rate per patient visit, total patient visits, and average daily visits per clinic, for various quarters in 2024 and 2025 | Metric | Q1 2025 | Q2 2025 | Q1 2024 | Q2 2024 | Q3 2024 | Q4 2024 | YTD 2025 | YTD 2024 | | :----- | :------ | :------ | :------ | :------ | :------ | :------ | :------- | :------- | | Number of Clinics (Owned/Managed) | 729 | 732 | 679 | 681 | 661 | 722 | 722 | 722 | | Net Rate Per Patient Visit | $105.66 | $105.33 | $103.37 | $105.05 | $105.65 | $104.73 | $104.71 | $104.71 | | Patient Visits | 1,443,805 | 1,558,756 | 1,268,002 | 1,335,335 | 1,317,051 | 1,432,801 | 3,002,561 | 5,353,189 | | Average Daily Visits Per Clinic | 31.2 | 32.7 | 29.5 | 30.6 | 30.1 | 31.6 | - | 30.4 | - As of June 30, 2025, the Company owned/managed 768 clinics, including 36 managed clinics, compared to 722 clinics (41 managed) as of June 30, 2024[73] Clinic Count Roll Forward This section provides a detailed roll forward of owned and managed clinic counts for 2024 and the first two quarters of 2025, illustrating additions and closures | Clinic Activity | Owned 2025 | Managed 2025 | Total 2025 | Owned 2024 | Managed 2024 | Total 2024 | | :-------------- | :--------- | :----------- | :--------- | :--------- | :----------- | :--------- | | Beginning of period | 722 | 39 | 761 | 671 | 43 | 714 | | Q1 additions | 14 | - | 14 | 14 | - | 14 | | Q1 closed or sold | (7) | (2) | (9) | (6) | (2) | (8) | | End of Q1 | 729 | 37 | 766 | 679 | 41 | 720 | | Q2 additions | 6 | - | 6 | 7 | - | 7 | | Q2 closed or sold | (3) | (1) | (4) | (5) | - | (5) | | End of Q2 | 732 | 36 | 768 | 681 | 41 | 722 | | Q3 additions | - | - | - | 12 | - | 12 | | Q3 closed or sold | - | - | - | (32) | (2) | (34) | | End of Q3 | - | - | - | 661 | 39 | 700 | | Q4 additions | - | - | - | 63 | - | 63 | | Q4 closed or sold | - | - | - | (2) | - | (2) | | End of Q4 | - | - | - | 722 | 39 | 761 | | Year-to-date total additions | 20 | - | 20 | 96 | - | 96 | | Year-to-date total closed or sold | (10) | (3) | (13) | (45) | (4) | (49) |