U.S. Physical Therapy, Inc. (USPH) Q3 2025 Earnings Call Transcript

Gross Profit Grew 30% year-over-year. Even after adjusting for anomalies from the previous year, there was still a mid-teens percentage increase. This growth occurred despite inflationary pressures and higher staff costs.

Average Visits Per Clinic Per Day Reached a record of 32.2 for Q3, marking the highest third-quarter volume in the company's history. This was driven by strong patient care and service.

Total Patient Visits Increased 18% year-over-year, supported by the addition of 84 net owned clinics and a 2.2% increase in visits at mature clinics.

PT Salaries and Related Costs Per Visit Decreased by $0.40 per visit compared to the prior year, marking the first decline since Q4 2023. This was achieved through cost management initiatives.

IIP Revenue Grew almost 15% year-over-year, with gross profit up nearly 11%. This growth was entirely organic.

Adjusted EBITDA Increased by $2.8 million or 13.2% year-over-year, reaching $23.9 million. This reflects strong operational performance.

Net Rate Per Patient Visit Was $105.54 for Q3, slightly down from the same quarter last year but up modestly from Q2 2025. September saw the highest monthly net rate of the year, exceeding $106 per visit.

Physical Therapy Revenues Increased by $25.4 million or 17.8% year-over-year, reaching $168.1 million. Most of this growth came from acquisitions, with Metro and PT in New York contributing $19.5 million.

Physical Therapy Operating Costs Increased by $18.2 million or 15.3% year-over-year, totaling $136.9 million. However, total operating cost per visit increased by just 1%, reflecting effective cost management.

Physical Therapy Operating Margin Was 18.6%, reflecting strong operational efficiency.

IIP Net Revenues Increased by $3.7 million or 14.6% year-over-year, with income rising by $546,000 or 10.7%. This growth was entirely organic.

Corporate Expenses Were 8.5% of net revenue, slightly down from 8.6% in Q3 2024, reflecting effective cost control.

Operating Results Were $10.1 million, down slightly from $10.4 million a year ago. The decline was due to lower interest income and higher interest expenses.