U.S. Physical Therapy, Inc., through its various subsidiaries, manages a network of outpatient physical therapy facilities. These clinics deliver a range of ...
U.S. Physical Therapy, Inc. is a specialized healthcare services company headquartered in Houston, Texas. Founded in 1990, it has developed into one of the largest publicly traded pure-play operators of outpatient physical and occupational therapy clinics in the United States. The company trades on the New York Stock Exchange under ...U.S. Physical Therapy, Inc. is a specialized healthcare services company headquartered in Houston, Texas. Founded in 1990, it has developed into one of the largest publicly traded pure-play operators of outpatient physical and occupational therapy clinics in the United States. The company trades on the New York Stock Exchange under the symbol USPH and operates through two principal business areas: Physical Therapy Operations and Industrial Injury Prevention Services.
The Physical Therapy Operations segment provides outpatient rehabilitation and related clinical services. Treatment commonly includes pre-operative and post-operative rehabilitation, care for orthopedic and musculoskeletal disorders, recovery from sports-related injuries, neurological rehabilitation, work-related injury recovery, and preventive or wellness-oriented programs. Clinics generally serve patients referred by physicians, employers, insurers, and other healthcare organizations. The company also has hospital and physician services capabilities in selected markets. Based on the supplied company information, the company operates approximately 649 outpatient physical therapy clinics in 40 states, while earlier company disclosures reported 591 operational clinics in 39 states at the end of 2021. Clinic counts can change as the company opens, acquires, sells, or reorganizes locations.
Its Industrial Injury Prevention Services business focuses on helping employers reduce workplace injuries and improve employee performance. Services include on-site injury prevention, injury evaluation and recovery support, pre-employment screening, functional capacity assessments, ergonomic analysis, physical performance programs, and workplace injury-management services. Customers include large corporations, Fortune 500 companies, insurers, contractors, and other employers. These programs are delivered by licensed physical therapists, certified athletic trainers, and other qualified professionals.
Unlike a manufacturing company, USPH does not have a conventional bill of materials, factory production line, or inventory-based cost structure. Its main operating inputs are clinical labor, therapist and athletic-trainer compensation, clinic rent, medical and rehabilitation equipment, information systems, insurance, compliance, facility maintenance, and administrative support. The business is therefore labor-intensive and location-dependent, with profitability influenced by patient volumes, reimbursement rates, payer mix, clinician recruiting and retention, wage inflation, occupancy costs, and the success of acquisitions and clinic partnerships.
The company uses a combination of wholly owned operations, partnerships, acquisitions, and management arrangements to expand its network. Its scale can provide administrative leverage, referral relationships, purchasing benefits, and broader geographic coverage, although healthcare regulation, reimbursement pressure, labor availability, and competition remain important risks. Christopher J. Reading, PT, serves as Chief Executive Officer, Chairman of the Board, and a director, and has held senior leadership responsibilities with the company since the early 2000s.
The supplied data reports approximately 7,294 full-time employees, placing USPH in the 5,001-10,000 employee category. Financially, the company is a moderate-sized public healthcare services business with reported market capitalization of approximately $1.2 billion in the referenced data. Its business generates recurring patient and employer-service revenue, but earnings can be affected by utilization trends, reimbursement changes, labor costs, acquisition accounting, and integration expenses. The company also pays a regular dividend, although investors should evaluate current filings for the latest dividend, clinic count, employee count, operating results, debt levels, and management outlook.
YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength.
QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes.
RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three).
$781.0M
+16.3%
+8.0%
Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day.
$15.1M
-43.1%
+137.0%
Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials.
+20.1%
+9.1%
+35.4%
Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on).
+10.3%
+9.4%
+36.0%
Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales.
+1.9%
-51.1%
+134.3%
Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock.
$61.0M
-7.2%
+2203.0%
FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine.
+7.8%
-20.3%
+2048.0%
Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe.
89.4%
+48.0%
+11.1%
Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking.
1.01x
-14.9%
+7.2%
Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground.
Operator: Good day, and thank you for standing by. Welcome to the U.S. Physical Therapy Second Quarter 2026 Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. I'd now like to turn the call over to Chris Reading, Chairman and CEO. Please go ahead, sir.
Christopher Reading: Thank you. Good morning, and welcome, everyone, to our U.S. Physical Therapy Second Quarter 2026 Earnings Call. With me on the line include Eric Williams, our President and Chief Operating Officer, East; Jason Curtis, our Interim CFO, also serving as our Senior Vice President of Finance and Accounting; Rick Binstein, our Executive Vice President and General Counsel; Graham Reeve, our Chief Operating Officer, West; and Kate Ventin, our Vice President of Accounting and our Controller. Before we make some prepared remarks on the quarter as well as the year, we need to cover a brief disclosure statement. Kate, if you would, please.
Kate Venturina: Thank you, Chris. This presentation includes forward-looking statements, which involve certain risks and uncertainties. The forward-looking statements are based on the company's current views and assumptions. The company's actual results may vary materially from those anticipated. Please see the company's filings with the Securities and Exchange Commission for more information. This presentation also contains certain non-GAAP measures as defined in Regulation G, and the related reconciliations can be found in the company's earnings release and the company's presentation on its website. Back to you, Chris.
Christopher Reading: Thanks, Kate. So this morning, I'm going to spend a little time talking about where we are going with a heavy concentration around these hospital affiliation arrangements and try to dovetail that into our results for the quarter as well as look forward because it's all intertwined. For starters, volumes across the company are and have been very strong. This includes our Metro partnership, now part of our long-term NYU Langone affiliation. For some perspective, visits per clinic per day were at an all-time high this quarter at 33.5 per day. For the past 24 consecutive months and 37 out of the last 42 months, we have set visit per clinic per day record volumes, including those at our hospital-affiliated clinics. They're all very strong. This is important because part of our cost equation in Q2 is related to upfront hiring with the expectation of referral and volume translation within these partnerships. In short, the transition of our NYU-affiliated clinics has gone very well. By the end of this month, we will have transitioned all 60 of our metro clinics and will benefit from approximately 50 clinicians hired in advance, which will drive the opportunity for growth going forward. That was at the expense of some short-term cost absorption. However, once those facilities are transitioned, that creates nothing but upside opportunity with no cost downside based on …
