U.S. Physical Therapy Reports Fourth Quarter and Full Year 2025 Results

Core Insights - U.S. Physical Therapy, Inc. reported strong financial results for the fourth quarter and full year ended December 31, 2025, with significant revenue and profit growth compared to the previous year [1][4]. Financial Highlights - Adjusted EBITDA for the year ended December 31, 2025, was $95.0 million, an increase of $13.2 million or 16.2% from $81.8 million in 2024 [3][31]. - Net income attributable to USPH shareholders for 2025 was $39.6 million, compared to $31.4 million in 2024, while earnings per share decreased to $1.42 from $1.84 due to changes in fair value of redeemable noncontrolling interests [3][31][21]. - Operating Results for 2025 was $40.0 million, up from $36.9 million in 2024, translating to $2.63 per share compared to $2.45 per share in the prior year [3][31]. Quarterly Performance - For the fourth quarter of 2025, Adjusted EBITDA was $24.8 million, a 13.5% increase from $21.8 million in the fourth quarter of 2024 [3][22]. - Net income for the fourth quarter of 2025 was $4.2 million, down from $9.2 million in the same quarter of 2024, primarily due to a net loss related to contingent earnout consideration [3][21]. - Net revenue from physical therapy operations in the fourth quarter increased by $20.0 million, or 13.0%, to $173.8 million from $153.8 million in the fourth quarter of 2024 [3][8]. Operational Metrics - Total patient visits for the fourth quarter of 2025 were 1,593,336, an 11.2% increase from 1,432,801 in the fourth quarter of 2024 [3][8]. - The average daily patient visits per clinic reached a record high of 32.7 in the fourth quarter of 2025, compared to 31.6 in the fourth quarter of 2024 [3][8]. - Industrial injury prevention services revenue for the fourth quarter was $28.9 million, an increase of 8.7% compared to $26.6 million in the fourth quarter of 2024 [3][12]. Strategic Developments - The company added 11 clinics and closed 10 in the fourth quarter of 2025, bringing the total to 780 clinics as of December 31, 2025 [3][36]. - Recent acquisitions include an eight-clinic practice and an industrial injury prevention business, expected to generate approximately $8.0 million and $7.0 million in annual revenue, respectively [3][37]. - The company announced strategic alliances with hospital systems to integrate outpatient physical therapy clinics into their clinical services networks, expected to enhance revenue and EBITDA contributions [3][39][41]. Dividend and Guidance - The Board of Directors raised the quarterly dividend rate from $0.45 to $0.46 per share, effective immediately [3][44]. - Management expects Adjusted EBITDA for 2026 to be in the range of $102.0 million to $106.0 million, including contributions from new strategic alliances and a Medicare rate increase [3][42].