UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-K (Mark One) ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE FISCAL YEAR ENDED DECEMBER 31, 2025 OR (EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER) (STATE OR OTHER JURISDICTION OF INCORPORATION OR ORGANIZATION) NEVADA 76-0364866 (I.R.S. EMPLOYER IDENTIFICATION NO.) 1300 WEST SAM HOUSTON PARKWAY SOUTH, SUITE 300, HOUSTON, TEXAS 77042 (ADDRESS OF PRINCIPAL EXECUTIVE OFFICES) (Z ...

US Physical Therapy (NYSE:USPH) Q4 2025 Earnings call February 26, 2026 10:30 AM ET Company ParticipantsCarey Hendrickson - CFOChris Reading - Chairman and CEOConstantine Davides - Managing DirectorJason Curtis - SVP of Finance and AccountingConference Call ParticipantsJack Slevin - VP and Equity Research AnalystLarry Solow - Managing Director, Partner, and Senior Equity AnalystMike Petusky - Managing Director and Senior Investment AnalystNone - AnalystOperatorGood day. Thank you for standing by. Welcome to ...

US Physical Therapy (NYSE:USPH) Q4 2025 Earnings call February 26, 2026 10:30 AM ET Company ParticipantsCarey Hendrickson - CFOChris Reading - Chairman and CEOConstantine Davides - Managing DirectorJason Curtis - SVP of Finance and AccountingConference Call ParticipantsJack Slevin - VP and Equity Research AnalystLarry Solow - Managing Director, Partner, and Senior Equity AnalystMike Petusky - Managing Director and Senior Investment AnalystNone - AnalystOperatorGood day. Thank you for standing by. Welcome to ...

US Physical Therapy (NYSE:USPH) Q4 2025 Earnings call February 26, 2026 10:30 AM ET Speaker7Good day. Thank you for standing by. Welcome to the U.S. Physical Therapy fourth quarter 2025 and full year earnings conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. In order to ask a question during the session, please press the star key followed by 1 on your telephone. Please be advised that today's call is bein ...

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].

Core Viewpoint - U.S. Physical Therapy, Inc. will report its financial results for Q4 and the full year of 2025 on February 25, 2026, after market close, with a conference call scheduled for the following morning [1] Financial Reporting - The financial results will cover the fourth quarter and the entire year ending December 31, 2025 [1] - The announcement of the results will occur after the stock market closes on February 25, 2026 [1] - A conference call to discuss the results will take place on February 26, 2026 [1]

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].

Core Insights - Surgery Partners is set to announce earnings results, with expectations of revenue growth slowing compared to the previous year [1][2] - The company reported a strong performance last quarter, exceeding revenue expectations by 1.2% [1] Revenue Expectations - Analysts expect Surgery Partners' revenue to grow 6.7% year on year to $821.8 million, down from a 14.3% increase in the same quarter last year [2] - The company reported revenues of $826.2 million last quarter, reflecting an 8.4% year-on-year increase [1] Earnings Performance - Adjusted earnings per share (EPS) are anticipated to be $0.16 [2] - Surgery Partners has missed Wall Street's revenue estimates three times in the past two years [3] Peer Comparison - In the outpatient & specialty care segment, Select Medical reported a 7.2% year-on-year revenue growth, while U.S. Physical Therapy saw a 17.3% increase [4] - Select Medical and U.S. Physical Therapy both experienced declines in share price following their earnings reports [4] Market Sentiment - There is positive sentiment in the outpatient & specialty care segment, with average share prices up 3.9% over the last month [5] - Surgery Partners' share price has increased by 11.1% during the same period, with an average analyst price target of $30.82 compared to the current share price of $21.93 [5]

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].