USPH · U.S. Physical Therapy, Inc.

U.S. Physical Therapy, Inc. delivered Q1 2026 results that met internal expectations, with total revenue rising 7.9% to $198 million, anchored by 7.2% growth in physical therapy revenue and 11.8% growth in injury prevention services (IIP) revenue. The IIP growth included a partial-quarter contribution from a New York-based acquisition, while same-store IIP revenue increased 8.2% and margin expanded 180 bps year-over-year. Physical therapy revenue growth was supported by a 6.9% increase in patient visits and a modest net rate increase to $106.49 per visit (+0.8% YoY), driven primarily by a 3.4% commercial rate lift — significant given commercial payers represent nearly half the payer mix — partially offset by a Medicaid rate decline. Adjusted EBITDA rose $0.7 million to $20.2 million, though GAAP net income fell to $5.0 million from $9.9 million YoY due to a $2.0 million loss on contingent earn-out revaluation (reflecting stronger-than-expected acquisition performance) and a higher 32.3% effective tax rate tied to discrete items on lower pre-tax income. Management reaffirmed full-year 2026 adjusted EBITDA guidance of $102–$106 million, citing progress on strategic initiatives including semi-virtual front desk deployment, AI-assisted ambient documentation, remote therapeutic monitoring re-engagement, cash-based program expansion, and hospital system partnerships — notably the ongoing NYU transition. Two acquisitions and $14 million in non-controlling interest repurchases underscored continued execution of the partner-centric growth model. The April 15, 2026 closing of a $450 million, five-year credit facility — upsized from its $400 million launch and replacing a $325 million predecessor — provides enhanced financial flexibility to fund organic and acquisition-driven growth without compromising capital structure discipline.