USPH Reports Third Quarter 2026 Results, Record High Visits and Revenue Per Visit

Hospital affiliations generated $25 million in quarterly revenue, while employee health costs continued to pressure margins.

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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 (“IIP”), today reported results for the three and nine months ended September 30, 2026.

• Total net revenue was $223 million for the third quarter ended September 30, 2026 (“Q3 2026”), a 13% increase over the third quarter ended September 30, 2025 (“Q3 2025”).
• Net income attributable to USPH shareholders was $11 million for Q3 2026 compared to $13 million for Q3 2025. The Company reported loss per share of $1.04 in Q3 2026 compared to earnings per share of $0.48 in Q3 2025. Included in pretax income for Q3 2026 was a $0.1 million loss on change in fair value of contingent earn out consideration compared to a gain of $6 million in Q3 2025. Under GAAP, changes in the value of redeemable noncontrolling interests, representing our partners’ ownership stakes in subsidiaries not fully owned by USPH, are excluded from net income but are included in the calculation of earnings per share. Improving performance increases the value of these ownership interests, which has a dilutive effect on earnings per share.
• Adjusted net income ⁽¹⁾⁽²⁾ was $12 million for Q3 2026 compared to $10 million for Q3 2025. Adjusted earnings per share ⁽¹⁾⁽²⁾ was $0.80 in Q3 2026 compared to $0.66 in Q3 2025.
• Adjusted EBITDA ⁽¹⁾ was $28 million for Q3 2026 compared to $24 million for Q3 2025.
• The Company’s Board of Directors declared a quarterly dividend of $0.46 to be payable on December 11, 2026, to shareholders of record on November 16, 2026, consistent with the Company’s longstanding practice of delivering value to shareholders.
• Through the end of Q3 2026, the Company successfully integrated all 72 clinics under the two previously announced hospital affiliation agreements.

______________________
(1)	These are non-GAAP measures. Please refer to the section titled “Reconciliation of Non-GAAP Measures to the Most Directly Comparable GAAP Measure” for the definition and reconciliation of non-GAAP measures to the most directly comparable GAAP measure.
(2)	Adjusted net income and adjusted earnings per share were previously labeled operating results and operating results per share, respectively.

Chris Reading, Chairman and Chief Executive Officer commented, “We are pleased with the strong financial performance delivered in the third quarter 2026. The year-over-year EBITDA improvement reflects the initial benefit of the completed rollout of our first two hospital affiliations. The 72 clinics operating under hospital affiliation agreements generated $25 million in revenue in Q3, and we expect this number to increase significantly as referral volumes rise, additional clinics are incorporated into existing agreements, and our pipeline of hospital prospects results in new affiliations.”

Mr. Reading continued, “Cost pressures from our self-insured employee medical program continued in Q3. As a result, we implemented expense control efforts that partially mitigated these overages during the quarter and will benefit future periods. I want to thank our partners, clinicians, and support staff for their efforts on all fronts as we work to close out 2026, accelerate into 2027, and provide the outstanding patient service for which we are known.”

Q3 2026 compared to Q3 2025

• Physical therapy net revenue was $190 million for Q3 2026, a 13% increase compared to Q3 2025, including a 6% increase in mature revenue ⁽¹⁾.
• Patient visits ⁽¹⁾ were 1.7 million for Q3 2026, an 8% increase compared to Q3 2025, with average daily visits per clinic ⁽¹⁾ of 33 for Q3 2026 compared to 32 for Q3 2025.
• Physical therapy net revenue per patient visit ⁽¹⁾ was $111 for Q3 2026, a $5 increase compared to Q3 2025.
• Physical therapy margin was 19% in each of Q3 2026 and Q3 2025. Adjusted physical therapy margin ⁽²⁾ was 19% in Q3 2026, up approximately 150 basis points compared to Q3 2025. Q3 2026 results reflect higher company-provided health benefit costs compared to a favorable experience in Q3 2025, representing approximately 150 basis points of margin headwind.
• IIP revenue was $33 million for Q3 2026, a 14% increase compared to Q3 2025. Excluding the IIP acquisition on January 31, 2026, IIP revenue increased 8%.
• IIP margin was 22% for Q3 2026 compared to 20% for Q3 2025.
• Corporate expense as a percentage of total revenue was 8% in Q3 2026 compared to 9% in Q3 2025. Adjusted corporate expense ⁽²⁾ as a percentage of total revenue was 8% in Q3 2026 compared to 9% in Q3 2025.
• The Company added 21 and closed three locations during Q3 2026, bringing the location count ⁽¹⁾ to 799 as of September 30, 2026.

Nine Months ended September 30, 2026, compared to Nine Months ended September 30, 2025

• Total net revenue was $635 million for nine months ended September 30, 2026 (“YTD 2026”), a 10% increase over the nine months ended September 30, 2025 (“YTD 2025”).
• Physical therapy net revenue was $540 million for YTD 2026, a 10% increase compared to YTD 2025, including a 4% increase in mature revenue ⁽¹⁾.
• Patient visits ⁽¹⁾ were 4.9 million for the YTD 2026, a 7% increase compared to YTD 2025, with average daily visits per clinic ⁽¹⁾ of 33 for YTD 2026 compared to 32 for the YTD 2025.
• Physical therapy net revenue per patient visit ⁽¹⁾ was $108 for YTD 2026, a $3 increase compared to YTD 2025.
• Physical therapy margin and adjusted physical therapy margin ⁽²⁾ were 18% for YTD 2026 compared to 19% for YTD 2025, respectively. YTD 2026 results include the unfavorable impact of company-provided health benefit costs compared to a favorable impact in YTD 2025, impacting margins by approximately 100 basis points.
• IIP revenue was $95 million for YTD 2026, a 12% increase compared to YTD 2025. Excluding the IIP acquisition made on January 31, 2026, IIP revenue increased 7%.
• IIP margin was 21% for YTD 2026 compared to 20% for YTD 2025.
• Corporate expense as a percentage of total revenue was 9% in each of YTD 2026 and YTD 2025. Adjusted corporate expense ⁽²⁾ as a percentage of total revenue was 8% for YTD 2026 compared to 9% for YTD 2025.
• Net income attributable to USPH shareholders was $26 million for YTD 2026 compared to $35 million for YTD 2025 with loss per share of $0.90 compared to earnings per share of $1.85 for the same periods, respectively. Included in pretax income for Q3 2026 was a loss on change in fair value of contingent earn out consideration of $3 million versus a gain of $11 million in Q3 2025.
• Adjusted net income ⁽²⁾⁽³⁾ was $30.2 million for YTD 2026 compared to $29.7 million for YTD 2025, with adjusted earnings per share ⁽²⁾⁽³⁾ of $2.01 compared to $1.96 for the same periods, respectively.
• Adjusted EBITDA ⁽²⁾ was $75 million for YTD 2026 compared to $70 million for YTD 2025.

______________________
(1)	See “Glossary of Terms” for the definition.
(2)	These are non-GAAP measures. Please refer to the section titled “Reconciliation of Non-GAAP Measures to the Most Directly Comparable GAAP Measure” for the definition and reconciliation of non-GAAP measures to the most directly comparable GAAP measure.
(3)	Adjusted net income and adjusted earnings per share were previously labeled operating results and operating results per share, respectively.

BALANCE SHEET AND CASH FLOW

• Cash and cash equivalents were $38 million as of September 30, 2026, compared to $36 million as of December 31, 2025. Borrowings under the Company’s credit facility were $247 million as of September 30, 2026, compared to $162 million as of December 31, 2025.
• As previously announced, on September 22, 2026, the Company entered into a new interest rate swap agreement (“Swap”) with a $171 million initial notional value. The Swap fixes the company’s term debt at 4.6% from June 30, 2027, to April 14, 2031.

Q3 2026 ACQUISITIONS

• On July 1, 2026, the Company acquired a 67% equity interest in a 12-clinic physical therapy practice for a purchase price of $16 million. The business currently generates $12 million in annual revenue and 0.1 million annual visits.

2026 FULL YEAR GUIDANCE

Management reaffirmed the Company’s full year 2026 adjusted EBITDA guidance of $102 million to $106 million.

CONFERENCE CALL INFORMATION

U.S. Physical Therapy’s management will host a conference call at 10:30 a.m. ET / 9:30 a.m. CT, on November 5, 2026, to discuss the Company’s financial results for the three and nine months ended September 30, 2026. Interested parties may participate in the call by dialing (800) 245-3047 (Primary) or (203) 518-9765 (Alternate) and conference ID of USPHQ326. Please call approximately 10 minutes before the call is scheduled to begin. To listen to the live call, go to the Company’s website at www.usph.com at least 15 minutes early to register, download and install any necessary audio software. If you are unable to listen live, a playback of the conference call can be accessed until February 3, 2027, on the Company’s website.

FORWARD-LOOKING STATEMENTS

This press release contains statements that are considered to be forward-looking within the meaning under Section 21E of the Securities Exchange Act of 1934, as amended. These statements contain forward-looking information relating to the financial condition, results of operations, plans, objectives, future performance and business of our Company. These statements (often using words such as “believes”, “expects”, “intends”, “plans”, “appear”, “should” and similar words) involve risks and uncertainties that could cause actual results to differ materially from those we expect. Included among such statements may be those relating to new clinics, availability of personnel and the reimbursement environment. The forward-looking statements are based on our current views and assumptions and actual results could differ materially from those anticipated in such forward-looking statements as a result of certain risks, uncertainties, and factors, which include, but are not limited to:

• changes in Medicare rules and guidelines and reimbursement or failure of our clinics to maintain their Medicare certification and/or enrollment status;
• revenue we receive from Medicare and Medicaid being subject to potential retroactive reduction;
• changes in reimbursement rates or payment methods from third party payors including government agencies, and changes in the deductibles and co-pays owed by patients;
• private third-party payors for our services may adopt payment policies that could limit our future revenue and profitability;
• compliance with federal and state laws and regulations relating to the privacy of individually identifiable patient information, and associated fines and penalties for failure to comply;
• compliance with state laws and regulations relating to the corporate practice of medicine and fee splitting, and associated fines and penalties for failure to comply;
• competitive, economic or reimbursement conditions in our markets which may require us to reorganize or close certain clinics and thereby incur losses and/or closure costs including the possible write-down or write-off of goodwill and other intangible assets;
• the impact of a termination of one or more of the Company’s hospital affiliated arrangements, which could have an adverse impact on revenue and the results of operations;
• the impact of future public health crises and epidemics/pandemics;
• certain of our acquisition agreements contain put rights related to a future purchase of significant equity interests in our subsidiaries or in a separate company;
• the impact of future vaccinations and/or testing mandates at the federal, state and/or local level, which could have an adverse impact on staffing, revenue, costs and the results of operations;
• our debt and financial obligations could adversely affect our financial condition, our ability to obtain future financing, and our ability to operate our business;
• changes as the result of government enacted national healthcare reform;
• the ability to control variable interest entities for which we do not have a direct ownership;
• business and regulatory conditions including federal and state regulations;
• governmental and other third party payor inspections, reviews, investigations and audits, which may result in sanctions or reputational harm and increased costs;
• revenue and earnings expectations;
• contingent consideration provisions in certain of our acquisition agreements, the value of which may impact future financial results;
• legal actions, which could subject us to increased operating costs and uninsured liabilities;
• general economic conditions, including but not limited to inflationary and recessionary periods;
• actual or perceived events involving banking volatility, defaults or other adverse developments that affect the U.S or the international financial systems, may result in market wide liquidity problems which could have a material and adverse impact on our available cash and results of operations;
• our business depends on hiring, training, and retaining qualified employees;
• availability and cost of qualified physical therapists;
• competitive environment in the industrial injury prevention services business, which could result in the termination or non-renewal of contractual service arrangements and other adverse financial consequences for that service line;
• our ability to identify and complete acquisitions, and the successful integration of the operations of the acquired businesses;
• impact on the business and cash reserves resulting from retirement or resignation of key partners and resulting purchase of their non-controlling interest (minority interests);
• maintaining our information technology systems with adequate safeguards to protect against cyber-attacks;
• a security breach of our or our third party vendors’ information technology systems may subject us to potential legal action and reputational harm and may result in a violation of the Health Insurance Portability and Accountability Act of 1996 of the Health Information Technology for Economic and Clinical Health Act;
• maintaining clients for which we perform management, industrial injury prevention related services, and other services, as a breach or termination of those contractual arrangements by such clients could cause operating results to be less than expected;
• maintaining adequate internal controls;
• use of generative artificial intelligence;
• maintaining necessary insurance coverage;
• availability, terms, and use of capital; and
• weather and other seasonal factors.

Many factors are beyond our control. Given these uncertainties, you should not place undue reliance on our forward-looking statements. For additional information regarding these and other risks and uncertainties, that could cause actual results to differ materially from those contained in our forward-looking statements, please refer to “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2025, filed with the Securities and Exchange Commission (“SEC”) on February 27, 2026 and any risk factors contained in subsequent quarterly and annual reports we file with the SEC. Our forward-looking statements represent our estimates and assumptions only as of the date of this report. Except as required by law, we are under no obligation to update any forward-looking statement as a result of new information, future events, or otherwise, except as required by law.

GLOSSARY OF TERMS

Mature revenue includes revenues from owned and hospital affiliated locations as well as homecare which were operational prior to January 1, 2025, and are still operating as of the balance sheet date. This metric excludes other management contracts.

Physical therapy revenue per patient visit is net revenue from owned and hospital affiliated clinics as well as homecare divided by total number of patient visits (defined below) during the periods presented. This metric excludes other management contracts.

Patient visits is the number of unique patient visits at the Company’s owned and hospital affiliated clinics as well as homecare for the periods presented. This metric excludes other management contracts.

Average daily visits per clinic is patient visits at the Company’s owned and hospital affiliated clinics, divided by the number of days in which normal business operations were conducted during the periods presented and further divided by the average number of owned and hospital affiliated clinics in operation during the periods presented. This metric excludes homecare and other management contracts.

Location count includes owned and hospital affiliated clinics as well as other management contracts. This metric excludes homecare.

ABOUT U.S. PHYSICAL THERAPY, INC.

Founded in 1990, U.S. Physical Therapy, Inc. owns and/or manages 799 outpatient physical therapy locations in 45 states. USPH locations provide preventative and post-operative care for a variety of orthopedic-related disorders and sports-related injuries, treatment for neurologically-related injuries and rehabilitation of injured workers. USPH also has an industrial injury prevention business which provides onsite services for clients’ employees including injury prevention and rehabilitation, performance optimization, post-offer employment testing, functional capacity evaluations, and ergonomic assessments.

More information about U.S. Physical Therapy, Inc. is available at www.usph.com. The information included on that website is not incorporated into this press release.

U. S. PHYSICAL THERAPY, INC. AND SUBSIDIARIES UNAUDITED CONSOLIDATED STATEMENTS OF INCOME (IN THOUSANDS, EXCEPT PER SHARE DATA)
	Three Months Ended										Nine Months Ended
	September 30, 2026				September 30, 2025						September 30, 2026					September 30, 2025
Net patient revenue	$	161,086			$		164,024				$	498,638				$			480,754
Hospital affiliation revenue		25,039					-					30,603							-
Other revenue		36,433					33,108					105,661							97,510
Net revenue		222,558					197,132					634,902							578,264
Operating cost
Salaries and related costs		130,408					116,619					375,300							341,656
Rent, supplies, contract labor and other		41,471					36,115					118,888							104,086
Depreciation and amortization		5,870					5,495					17,148							16,776
Provision for credit losses		1,917					2,073					6,041							5,916
Clinic closure costs - lease and other		(140	)				(42	)				(202	)						269
Total operating cost		179,526					160,260					517,175							468,703
Gross profit		43,032					36,872					117,727							109,561
Corporate office costs		17,827					17,414					55,106							51,135
Loss (gain) on change in fair value of contingent earn-out consideration		104					(5,872	)				3,093							(11,484	)
Operating income		25,101					25,330					59,528							69,910
Other (expense) income
Interest expense, debt and other		(3,583	)				(2,408	)				(9,587	)						(7,109	)
Interest income from investments		24					33					69							85
Change in revaluation of put-right liability		(599	)				(663	)				(404	)						(1,406	)
Equity in earnings of unconsolidated affiliate		346					361					1,118							1,155
Loss on extinguishment of debt		-					-					(124	)						-
Gain (Loss) on sale of a partnership		110					-					110							(123	)
Other		161					222					466							344
Total other expense		(3,541	)				(2,455	)				(8,352	)						(7,054	)
Income before taxes		21,560					22,875					51,176							62,856
Provision for income taxes		3,974					5,233					10,536							14,026
Net income		17,586					17,642					40,640							48,830
Less: Net income attributable to non-controlling interest:
Redeemable non-controlling interest - temporary equity		(5,806	)				(3,790	)				(12,400	)						(9,716	)
Non-controlling interest - permanent equity		(735	)				(714	)				(2,259	)						(3,684	)
		(6,541	)				(4,504	)				(14,659	)						(13,400	)
Net income attributable to USPH shareholders	$	11,045			$		13,138				$	25,981				$			35,430
Basic and diluted (loss) earnings per share attributable to USPH shareholders (1)	$	(1.04	)		$		0.48				$	(0.90	)			$			1.85
Shares used in computation - basic and diluted		14,928					15,204					15,052							15,178
Dividends declared per common share	$	0.46			$		0.45				$	1.38				$			1.35

______________________
(1)	Please refer to the section titled “Reconciliation of Non-GAAP Measures to the Most Directly Comparable GAAP Measure” of this press release for the calculation of basic and diluted (loss) earnings per share.

U. S. PHYSICAL THERAPY, INC. AND SUBSIDIARIES UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (IN THOUSANDS)
	Three Months Ended								Nine Months Ended
	September 30, 2026				September 30, 2025				September 30, 2026				September 30, 2025
Net income	$	17,586			$	17,642			$	40,640			$	48,830
Other comprehensive gain (loss):
Unrealized gain (loss) on cash flow hedge		1,221				(360	)			1,675				(2,489	)
Tax effect at statutory rate (federal and state)		(324	)			92				(445	)			636
Comprehensive income	$	18,483			$	17,374			$	41,870			$	46,977
Comprehensive income attributable to non-controlling interest		(6,541	)			(4,504	)			(14,659	)			(13,400	)
Comprehensive income attributable to USPH shareholders	$	11,942			$	12,870			$	27,211			$	33,577

U. S. PHYSICAL THERAPY, INC. AND SUBSIDIARIES SEGMENT INFORMATION
	Three Months Ended								Variance
	September 30, 2026				September 30, 2025				$				%
	(In thousands, except percentages)
Physical Therapy Operations
Net patient revenue	$	161,086			$	164,024			$	(2,938	)		(1.8	)%
Hospital affiliation revenue		25,039				-				25,039			*
Other revenue (1)		3,414				4,086				(672	)		(16.4	)%
Net revenue		189,539				168,110				21,429			12.7	%
Operating costs (1)		153,740				136,917				16,823			12.3	%
Gross profit	$	35,799			$	31,193			$	4,606			14.8	%
IIP
Net revenue	$	33,019			$	29,022			$	3,997			13.8	%
Operating costs		25,786				23,343				2,443			10.5	%
Gross profit	$	7,233			$	5,679			$	1,554			27.4	%
Financial and operating metrics (not in thousands):
Patient visits (2)		1,682,642				1,554,207				128,435			8.3	%
Average daily visits per clinic (2)		33.4				32.2				1.2			3.7	%
Physical therapy revenue per patient visit (2)	$	110.61			$	105.54			$	5.07			4.8	%
Mature revenue percent change (2)		6.4	%			0.2	%
Salaries and related costs, as a percentage of revenue (3)(4)		58.2	%			58.2	%
Adjusted salaries and related costs, as a percentage of revenue (3)(4)(5)		58.0	%			58.2	%
Physical therapy operations gross profit margin		18.9	%			18.6	%
Adjusted physical therapy operations gross profit margin (6)		19.1	%			18.5	%
IIP gross profit margin		21.9	%			19.6	%

______________________
(1)	Includes revenues and/or costs related to other management contracts.
(2)	See Glossary of terms for definition. The average number of clinic locations used in the calculation of average daily visits per clinic was 767 for Q3 2026 and 739 for Q3 2025.
(3)	Beginning in the 2026 Second Quarter, the Company changed its salaries and related costs metric from cost-per-visit to percentage-of-revenue, which management believes is a more meaningful presentation. For hospital affiliated clinics, salaries and related costs reimbursements by hospital systems are recognized as revenue by USPH, supporting this presentation change.  Prior period metrics have been revised to conform to the current presentation.
(4)	Includes cost and revenue from physical therapy operations. Excludes costs and revenue from other management contracts.
(5)	Excludes certain incentive costs related to Metro. See the section titled Reconciliation of non-GAAP Measures to the Most Directly Comparable GAAP Measure.
(6)	Excludes certain incentive costs related to the Metro acquisition, and clinic closure costs. See the section titled Reconciliation of non-GAAP Measures to the Most Directly Comparable GAAP Measure.
*	Not applicable

U. S. PHYSICAL THERAPY, INC. AND SUBSIDIARIES SEGMENT INFORMATION
	Nine Months Ended								Variance
	September 30, 2026				September 30, 2025				$				%
Physical Therapy Operations	(In thousands, except percentages)
Net patient revenue	$	498,638			$	480,754			$	17,884			3.7	%
Hospital affiliation revenue		30,603				-				30,603			*
Other revenue (1)		10,327				12,056				(1,729	)		(14.3	)%
Net revenue		539,568				492,810				46,758			9.5	%
Operating costs (1)		441,801				399,933				41,868			10.5	%
Gross profit	$	97,767			$	92,877			$	4,890			5.3	%
IIP
Net revenue	$	95,334			$	85,454			$	9,880			11.6	%
Operating costs		75,374				68,770				6,604			9.6	%
Gross profit	$	19,960			$	16,684			$	3,276			19.6	%
Financial and operating metrics (not in thousands):
Patient visits (2)		4,887,480				4,556,768				330,712			7.3	%
Average daily visits per clinic (2)		32.9				32.0				0.9			2.8	%
Physical therapy revenue per patient visit (2)	$	108.28			$	105.50			$	2.78			2.6	%
Mature revenue percent change (2)		4.2	%			0.2	%
Salaries and related costs, as a percentage of revenue (3)(4)		58.6	%			58.1	%
Adjusted salaries and related costs, as a percentage of revenue (3)(4)(5)		58.4	%			58.0	%
Physical therapy operations gross profit margin		18.1	%			18.8	%
Adjusted physical therapy operations gross profit margin (6)		18.4	%			19.0	%
IIP gross profit margin		20.9	%			19.5	%

______________________
(1)	Includes revenues and/or costs related to other management contracts.
(2)	See Glossary of terms for definition. The average number of clinic locations used in the calculation of average daily visits per clinic was 759 for 2026 and 732 for 2025.
(3)	Beginning in the 2026 Second Quarter, the Company changed its salaries and related costs metric from cost-per-visit to percentage-of-revenue, which management believes is a more meaningful presentation. For hospital affiliated clinics, salaries and related costs reimbursements by hospital systems are recognized as revenue by USPH, supporting this presentation change.  Prior period metrics have been revised to conform to the current presentation.
(4)	Includes cost and revenue from physical therapy operations. Excludes costs and revenue from other management contracts.
(5)	Excludes certain incentive costs related to Metro. See the section titled Reconciliation of non-GAAP Measures to the Most Directly Comparable GAAP Measure.
(6)	Excludes certain incentive costs related to the Metro acquisition, business acquisition costs and clinic closure costs. See the section titled Reconciliation of non-GAAP Measures to the Most Directly Comparable GAAP Measure.
*	Not applicable

U. S. PHYSICAL THERAPY, INC. AND SUBSIDIARIES SUPPLEMENTAL FINANCIAL AND PERFORMANCE METRICS
Revenue Metrics
		Physical Therapy Revenue Per Patient Visit (1)						Patient Visits (1)				Average Visits Per Clinic Per Day (2)
			2026			2025		2026		2025		2026		2025
First quarter		$	106.49		$	105.66		1,543,144		1,443,805		31.8		31.2
Second quarter		$	107.59		$	105.33		1,661,694		1,558,756		33.5		32.7
Third quarter		$	110.61		$	105.54		1,682,642		1,554,207		33.4		32.2
Fourth quarter					$	106.49				1,593,336				32.7
Year or Year-to-date		$	108.28		$	105.76		4,887,480		6,150,104		32.9		32.2

______________________
(1)	See definition of the metrics above in the Glossary of Terms.
(2)	Excludes home-care visits.

Physical Therapy Locations Roll Forward (1)
		2026		2025
Number of clinics, beginning of period		778		759
Q1 additions		15		14
Q1 closed or sold		(12)		(9)
Number of clinics, end of period		781		764
Q2 additions		4		6
Q2 closed or sold		(4)		(4)
Number of clinics, end of period		781		766
Q3 additions		21		18
Q3 closed or sold		(3)		(7)
Number of clinics, end of period		799		777
Q4 additions				11
Q4 closed or sold				(10)
Number of clinics, end of period		799		778
Year-to-date total additions		40		49
Year-to-date total closed or sold		(19)		(30)

______________________
(1)	See “Glossary of Terms” for the definition.

U. S. PHYSICAL THERAPY, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEET (IN THOUSANDS, EXCEPT SHARES AND PER SHARE AMOUNTS)
	September 30, 2026				December 31, 2025
	(unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	38,225			$	35,570
Patient accounts receivable, less provision for credit losses of $4,120 and $3,775, respectively		63,215				64,249
Accounts receivable - other		34,174				24,087
Other current assets		19,147				16,084
Total current assets		154,761				139,990
Fixed assets:
Furniture and equipment		75,838				67,891
Leasehold improvements		62,556				58,985
Fixed assets, gross		138,394				126,876
Less accumulated depreciation and amortization		(96,183	)			(91,225	)
Fixed assets, net		42,211				35,651
Operating lease right-of-use assets		164,361				144,197
Investment in unconsolidated affiliate		12,358				12,275
Goodwill		732,803				692,392
Other identifiable intangible assets, net		180,374				172,861
Other assets		8,873				6,644
Total assets	$	1,295,741			$	1,204,010
LIABILITIES, REDEEMABLE NON-CONTROLLING INTEREST, USPH SHAREHOLDERS’ EQUITY AND NON-CONTROLLING INTEREST
Current liabilities:
Accounts payable - trade	$	5,360			$	6,059
Accrued expenses		44,632				49,424
Current portion of operating lease liabilities		44,552				42,134
Current portion of term loan and notes payable		4,415				9,865
Other current liabilities		10,259				31,558
Total current liabilities		109,218				139,040
Notes payable, net of current portion		1,283				417
Revolving facility		72,700				30,500
Term loan, net of current portion and deferred financing costs		167,703				121,677
Deferred taxes		23,931				28,391
Operating lease liabilities, net of current portion		129,283				110,572
Other long-term liabilities		4,240				3,214
Total liabilities		508,358				433,811
Redeemable non-controlling interest - temporary equity		357,306				293,311
Commitments and Contingencies
U.S. Physical Therapy, Inc. ("USPH") shareholders’ equity:
Preferred stock, $.01 par value, 500,000 shares authorized, no shares issued and outstanding		-				-
Common stock, $.01 par value, 20,000,000 shares authorized,
17,532,646 and 17,418,621 shares issued, respectively		175				174
Additional paid-in capital		292,562				285,522
Accumulated other comprehensive gain		1,944				714
Retained earnings		191,254				227,216
Treasury stock at cost, 2,605,083 shares and 2,296,059 shares, respectively		(56,632	)			(37,194	)
Total USPH shareholders’ equity		429,303				476,432
Non-controlling interest - permanent equity		774				456
Total USPH shareholders' equity and non-controlling interest - permanent equity		430,077				476,888
Total liabilities, redeemable non-controlling interest,
USPH shareholders' equity and non-controlling interest - permanent equity	$	1,295,741			$	1,204,010

U. S. PHYSICAL THERAPY, INC. AND SUBSIDIARIES UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS (IN THOUSANDS)
	Nine Months Ended
	September 30, 2026				September 30, 2025
OPERATING ACTIVITIES
Net income including non-controlling interest	$	40,640			$	48,830
Adjustments to reconcile net income including non-controlling interest to net cash provided by operating activities:
Depreciation and amortization		18,182				17,756
Provision for credit losses		6,041				5,916
Equity-based awards compensation expense		8,476				6,151
Amortization of debt issuance costs		343				315
Change in deferred income taxes		7,740				11,163
Change in revaluation of put-right liability		404				1,406
Change in fair value of contingent earn-out consideration		3,093				(11,484	)
Equity of earnings in unconsolidated affiliate		(1,118	)			(1,155	)
Loss on sale of clinics and fixed assets		525				420
(Gain) loss on sale of a partnership		(110	)			123
Loss on extinguishment of debt		124				-
Changes in operating assets and liabilities:
Patient accounts receivable, net		(3,422	)			(13,604	)
Accounts receivable - other		(8,566	)			3,559
Other current and long term assets		(3,583	)			(8,155	)
Accounts payable, accrued expenses and other current liabilities		(4,203	)			(10,908	)
Other long-term liabilities		(664	)			(207	)
Net cash provided by operating activities		63,902				50,126
INVESTING ACTIVITIES
Purchase of fixed assets		(15,810	)			(10,145	)
Purchase of majority interest in businesses, net of cash acquired		(36,468	)			(15,214	)
Purchase of redeemable non-controlling interest, temporary equity		(13,549	)			(8,579	)
Purchase of non controlling interest, permanent equity		(9,018	)			(196	)
Proceeds on sale of non-controlling interest, permanent equity		(502	)			9
Repayment of notes receivable related to sales of redeemable non-controlling interest		418				387
Proceeds on sale of partnership interest - redeemable non-controlling interest, temporary equity		740				149
Distributions from unconsolidated affiliate		1,036				1,089
Proceeds on sale of partnership interest, clinics and fixed assets		-				700
Other		467				531
Net cash (used in) investing activities		(72,686	)			(31,269	)
FINANCING ACTIVITIES
Payment of debt issuance costs		(2,214	)			-
Proceeds from revolving facility		234,262				146,500
Payments on revolving facility		(192,062	)			(131,000	)
Distributions to non-controlling interest, permanent and temporary equity		(16,767	)			(14,610	)
Cash dividends paid to shareholders		(20,735	)			(20,520	)
Proceeds from term loan		45,625				-
Payments on term loan		(2,969	)			(7,500	)
Principal payments on notes payable		(672	)			(1,994	)
Payment for taxes related to net settlement of equity awards		(204	)			-
Repurchases of common stock		(19,233	)			-
Payment of contingent consideration		(13,592	)			-
Other		-				7
Net cash provided by (used in) financing activities		11,439				(29,117	)
Net increase (decrease) in cash and cash equivalents		2,655				(10,260	)
Cash and cash equivalents - beginning of period		35,570				41,362
Cash and cash equivalents - end of period	$	38,225			$	31,102
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Cash paid during the period for:
Income taxes	$	7,351			$	11,809
Interest paid on credit facilities and other notes payable		9,705				7,305
Non-cash investing and financing transactions during the period:
Purchase of businesses - seller financing portion		900				300
Fair market value of initial contingent consideration related to purchase of businesses		100				5,731
Notes payable related to purchase of redeemable non-controlling interest, temporary equity		78				135
Notes payable related to purchase of redeemable non-controlling interest, permanent equity		16				-
Notes receivable related to sale of redeemable non-controlling interest, temporary equity		4,751				2,017
Notes receivable related to the sale of non-controlling interest, permanent equity		527				29
Offset to notes receivable associated with purchase of redeemable non-controlling interest		72				254

U.S. PHYSICAL THERAPY, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP MEASURES
TO THE MOST DIRECTLY COMPARABLE GAAP MEASURE

The following tables provide details of the basic and diluted earnings per share computation and reconcile net income attributable to USPH shareholders calculated in accordance with GAAP to non-GAAP adjusted EBITDA, non-GAAP adjusted net income and non-GAAP adjusted earnings per share. The tables also provide a reconciliation of additional non-GAAP measures to the most comparable GAAP measure. Management believes providing adjusted EBITDA, adjusted net income and adjusted earnings per share to investors is useful for comparing the Company's period-to-period results as well as for comparing with other similar businesses since most do not have redeemable instruments and therefore have different equity structures. Management uses adjusted EBITDA, adjusted net income and adjusted earnings per share, which eliminate certain items described above that can be subject to volatility and unusual costs, as the principal measures to evaluate and monitor financial performance period over period.

Non-GAAP adjusted EBITDA is defined as net income attributable to USPH shareholders before interest income, interest expense, taxes, depreciation, amortization, change in fair value of contingent earn-out consideration, changes in revaluation of put-right liability, equity-based awards compensation expense, clinic closure costs, business acquisition related costs, costs related to a one-time financial and human resources systems upgrade, gain or loss on sale of a partnership, settlement of a payor dispute, other income and related portions for non-controlling interests, and other non-recurring items as applicable.

Non-GAAP adjusted net income equals net income attributable to USPH shareholders less changes in revaluation of a put-right liability, clinic closure costs, gain or loss on sale of a partnership, changes in fair value of contingent earn-out consideration, business acquisition related costs, costs related to a one-time financial and human resources systems upgrade, settlement of a payor dispute, any allocations to non-controlling interests, all net of taxes, and other non-recurring items as applicable. Non-GAAP adjusted earnings per share also excludes the impact of the revaluation of redeemable non-controlling interest and the associated tax impact.

Adjusted EBITDA, adjusted net income and adjusted earnings per share are not measures of financial performance under GAAP. Adjusted EBITDA, adjusted net income, adjusted earnings per share and other 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.

U. S. PHYSICAL THERAPY, INC. AND SUBSIDIARIES ADJUSTED EBITDA, ADJUSTED NET INCOME, ADJUSTED EARNINGS PER SHARE AND EARNINGS PER SHARE
	Three Months Ended								Nine Months Ended
	September 30, 2026				September 30, 2025				September 30, 2026				September 30, 2025
	(In thousands, except per share data)
Adjusted EBITDA (a non-GAAP measure)
Net income attributable to USPH shareholders	$	11,045			$	13,138			$	25,981			$	35,430
Adjustments:
Provision for income taxes		3,974				5,233				10,536				14,026
Depreciation and amortization		6,247				5,832				18,182				17,756
Interest expense, debt and other, net		3,583				2,408				9,587				7,109
Interest income from investments		(24	)			(33	)			(69	)			(85	)
Equity-based awards compensation expense		2,997				2,263				8,476				6,151
Change in revaluation of put-right liability		599				663				404				1,406
Loss (gain) on change in fair value of contingent earn-out consideration		104				(5,872	)			3,093				(11,484	)
Clinic closure costs (1)		(140	)			(42	)			(202	)			269
Business acquisition related recoveries (costs) (2)		(102	)			70				654				870
ERP implementation costs (3)		370				664				1,097				885
(Gain) loss on sale of a partnership		(110	)			-				(110	)			123
Settlement of a payor dispute		500				-				500				-
Loan amendment costs (4)		-				-				288				-
Loss on extinguishment of debt (4)		-				-				124				-
Other income		(161	)			(222	)			(466	)			(344	)
Allocation to non-controlling interests		(1,101	)			(247	)			(3,099	)			(1,856	)
Adjusted EBITDA	$	27,781			$	23,855			$	74,976			$	70,256
Adjusted net income and adjusted earnings per share (non-GAAP measures)
Net income attributable to USPH shareholders	$	11,045			$	13,138			$	25,981			$	35,430
Adjustments:
Change in revaluation of put-right liability		599				663				404				1,406
Loss (gain) on change in fair value of contingent earn-out consideration		104				(5,872	)			3,093				(11,484	)
Clinic closure costs (1)		(140	)			(42	)			11				269
Business acquisition related recoveries (costs) (2)		(102	)			70				654				870
ERP implementation costs (3)		370				664				1,097				885
(Gain) loss on sale of a partnership		(110	)			-				(110	)			123
Settlement of a payor dispute		500				-				500				-
Loan amendment costs (4)		-				-				288				-
Loss on extinguishment of debt (4)		-				-				124				-
Allocation to non-controlling interest		15				397				(343	)			279
Tax effect at statutory rate (federal and state)		(328	)			1,053				(1,518	)			1,955
Adjusted net income	$	11,953			$	10,071			$	30,181			$	29,733
Adjusted earnings per share	$	0.80			$	0.66			$	2.01			$	1.96
Earnings per share
Computation of earnings per share - USPH shareholders:
Net income attributable to USPH shareholders	$	11,045			$	13,138			$	25,981			$	35,430
Charges to retained earnings:									.
Revaluation of redeemable non-controlling interest		(36,188	)			(7,918	)			(53,851	)			(9,821	)
Tax effect at statutory rate (federal and state)		9,608				2,023				14,297				2,509
	$	(15,535	)		$	7,243			$	(13,573	)		$	28,118
(Loss) earnings per share (basic and diluted)	$	(1.04	)		$	0.48			$	(0.90	)		$	1.85
Shares used in computation (basic and diluted)		14,928				15,204				15,052				15,178

______________________
(1)	Costs associated with clinic closures during the periods presented and, for purposes of adjusted net income, includes accelerated depreciation related to closed clinics.
(2)	Certain expenses related to the acquisitions of equity interests in certain partnerships and costs associated with entering into hospital affiliated contracts.
(3)	Costs related to a one-time financial and human resources systems upgrade.
(4)	Costs related to the amendment of the Company's Credit Agreement.

U. S. PHYSICAL THERAPY, INC. AND SUBSIDIARIES RECONCILIATION OF OTHER NON-GAAP MEASURES TO THE MOST COMPARABLE GAAP MEASURES
	Three Months Ended September 30, 2026
	Segment information - Physical Therapy Operations														Corporate
	Salaries and related (5)							Gross Profit							Corporate Costs
	Amount				As a % of Net Revenue			Amount				As a % of Net Revenue			Amount				As a % of Net Revenue
	(in thousands, except percentages)
Reported (GAAP)	$	109,175			58.2	%		$	35,799			18.9	%		$	17,827			8.0	%
Adjustments
Clinic closure costs (1)									(140	)		(0.1	)%
Metro incentive costs (2)		(449	)		(0.2	)%			449			0.2	%
Business acquisition related recoveries (3)																102			*
ERP implementation costs (4)																(370	)		(0.2	)%
Settlement of a payor dispute																(500	)		(0.2	)%
Adjusted (Non-GAAP)	$	108,726			58.0	%		$	36,108			19.1	%		$	17,059			7.7	%
	Three Months Ended September 30, 2025
	Segment information - Physical Therapy Operations														Corporate
	Salaries and related (5)							Gross Profit							Corporate Costs
	Amount				As a % of Net Revenue			Amount				As a % of Net Revenue			Amount				As a % of Net Revenue
Reported (GAAP)	$	96,470			58.2	%		$	31,193			18.6	%		$	17,414			8.8	%
Adjustments
Clinic closure costs (1)									(42	)		*
Metro incentive costs (2)		8			*				(8	)		*
Business acquisition related costs (3)																(70	)		*
ERP implementation costs (4)																(664	)		(0.3	)%
Adjusted (Non-GAAP)	$	96,478			58.2	%		$	31,143			18.5	%		$	16,680			8.5	%

______________________
(1)	Costs that are associated with closed clinics (owned).
(2)	Certain earnout bonuses and incentive costs related to Metro.
(3)	Certain expenses related to the acquisitions of equity interests in certain partnerships and costs associated with entering into hospital affiliated contracts.
(4)	Costs related to a one-time financial and human resources systems upgrade.
(5)	Excludes revenues and costs related to management contracts.
*	Not meaningful

U.S. PHYSICAL THERAPY, INC. AND SUBSIDIARIES RECONCILIATION OF OTHER NON-GAAP MEASURES TO THE MOST COMPARABLE GAAP MEASURES
	Nine Months Ended September 30, 2026
	Segment information - Physical Therapy Operations													Corporate
	Salaries and related (6)							Gross Profit						Corporate Costs
	Amount				As a % of Net Revenue			Amount			As a % of Net Revenue			Amount				As a % of Net Revenue
	(in thousands, except percentages)
Reported (GAAP)	$	313,063			58.6	%		$	97,767		18.1	%		$	55,106			8.7	%
Adjustments
Clinic closure costs (1)									11		*
Metro incentive costs (2)		(1,525	)		(0.3	)%			1,525		0.3	%
Business acquisition related costs (3)									107		*				(547	)		(0.1	)%
ERP implementation costs (4)															(1,097	)		(0.2	)%
Amended credit facility costs (5)															(288	)		*
Settlement of dispute															(500	)		(0.1	)%
Adjusted (Non-GAAP)	$	311,538			58.4	%		$	99,410		18.4	%		$	52,674			8.3	%
	Nine Months Ended September 30, 2025
	Segment information - Physical Therapy Operations													Corporate
	Salaries and related (6)							Gross Profit						Corporate Costs
	Amount				As a % of Net Revenue			Amount			As a % of Net Revenue			Amount				As a % of Net Revenue
	(in thousands, except percentages)
Reported (GAAP)	$	282,146			58.1	%		$	92,877		18.8	%		$	51,135			8.8	%
Adjustments
Clinic closure costs (1)									269		0.1	%
Metro incentive costs (2)		(286	)		(0.1	)%			286		0.1	%
Business acquisition related costs (3)		(367	)		(0.1	)%			367		0.1	%			(503	)		(0.1	)%
ERP implementation costs (4)															(885	)		(0.2	)%
Adjusted (Non-GAAP)	$	281,493			58.0	%		$	93,799		19.0	%		$	49,748			8.6	%

______________________
(1)	These are costs incurred during the period that are associated with closed clinics (owned).
(2)	Certain earnout bonuses and incentive costs related to Metro.
(3)	Certain expenses related to the acquisitions of equity interests in certain partnerships and includes costs associated with entering into hospital affiliated contracts.
(4)	Costs related to a one-time financial and human resources systems upgrade.
(5)	Certain fees expensed when entering into the Fourth Amended Credit Facility.
(6)	Excludes revenues and costs related to management contracts.
*	Not meaningful

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20261104893319/en/

U.S. Physical Therapy, Inc.
Nchacha Etta, Chief Financial Officer
email: netta@usph.com
(713) 297-7000

Three Part Advisors
Joe Noyons
(817) 778-8424

Source: U.S. Physical Therapy, Inc.

Key Terms

gaap financial

GAAP, or Generally Accepted Accounting Principles, are a set of standardized rules and guidelines that companies follow when preparing their financial statements. They ensure consistency, transparency, and comparability across different companies, making it easier for investors to understand and compare financial information accurately. This helps investors make informed decisions based on trustworthy and uniform financial reports.

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redeemable noncontrolling interests financial

A redeemable noncontrolling interest is a minority ownership stake in a company that the holder can force the company to buy back at a set price or under certain conditions. For investors this matters because it creates a future cash obligation and can be treated more like a liability than permanent equity, affecting a company’s reported debt, net income and valuation — think of it as a part-owner who can cash out, forcing the business to pay them.

ebitda financial

EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It measures a company's profitability by focusing on the money it makes from its core operations, ignoring expenses like taxes and accounting adjustments. Investors use EBITDA to compare how well different companies are performing financially, as it provides a clearer picture of operational success without the influence of financial structure or accounting choices.

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interest rate swap financial

An interest rate swap is a financial agreement where two parties exchange interest payments on a set amount of money over time. Typically, one side pays a fixed interest rate, while the other pays a variable rate that can change with market conditions. This helps investors manage or reduce their exposure to interest rate fluctuations, much like locking in a mortgage rate to avoid future cost increases.