US Physical Therapy Inc
NYSE:USPH
US Physical Therapy Inc
US Physical Therapy Inc., founded in 1990 and headquartered in Houston, Texas, has crafted a unique niche within the healthcare sector, specializing in the development and operation of outpatient physical therapy clinics across the United States. The company focuses on providing physical rehabilitation services to patients suffering from medical conditions that impair their mobility or physical function. US Physical Therapy, with its extensive network, partners with licensed physical therapists who offer personalized care aimed at improving the quality of life for those recovering from injuries or surgeries. The company emphasizes a high level of clinical expertise and personalized patient care, which not only fosters recovery but also builds trust and long-term relationships with patients and practitioners alike.
The company’s revenue model largely revolves around patient visits, where each patient interaction represents a billable service. This model is further supported by a combination of direct payments and reimbursements from government and private insurance plans. By strategically expanding its clinics and continuously improving operational efficiency, US Physical Therapy maximizes its capacity to serve a broad range of patients and enhances its financial performance. The company also intelligently pursues selective acquisitions to expand its footprint and increase market share. This growth strategy, combined with its core mission of delivering effective physical therapy care, positions the company as a leading player in the outpatient physical therapy industry, balancing both patient outcomes and shareholder value.
US Physical Therapy Inc., founded in 1990 and headquartered in Houston, Texas, has crafted a unique niche within the healthcare sector, specializing in the development and operation of outpatient physical therapy clinics across the United States. The company focuses on providing physical rehabilitation services to patients suffering from medical conditions that impair their mobility or physical function. US Physical Therapy, with its extensive network, partners with licensed physical therapists who offer personalized care aimed at improving the quality of life for those recovering from injuries or surgeries. The company emphasizes a high level of clinical expertise and personalized patient care, which not only fosters recovery but also builds trust and long-term relationships with patients and practitioners alike.
The company’s revenue model largely revolves around patient visits, where each patient interaction represents a billable service. This model is further supported by a combination of direct payments and reimbursements from government and private insurance plans. By strategically expanding its clinics and continuously improving operational efficiency, US Physical Therapy maximizes its capacity to serve a broad range of patients and enhances its financial performance. The company also intelligently pursues selective acquisitions to expand its footprint and increase market share. This growth strategy, combined with its core mission of delivering effective physical therapy care, positions the company as a leading player in the outpatient physical therapy industry, balancing both patient outcomes and shareholder value.
Strong Volume Growth: Total patient visits increased 18% year-over-year, supported by 84 net new clinic additions and a record-high average of 32.2 visits per clinic per day for Q3.
Margin & Cost Control: Gross profit grew 30% compared to a soft quarter last year, and PT salaries and related costs per visit declined for the first time since Q4 2023, despite inflationary pressures.
Injury Prevention Performance: Injury prevention (IIP) revenue grew nearly 15% organically, with gross profit up almost 11%, though margins dipped slightly due to business mix.
Guidance Reaffirmed: Adjusted EBITDA guidance for full year 2025 was reaffirmed at $93 million to $97 million.
Medicare Tailwind for 2026: CMS's final rule improved from initial expectations, likely providing at least a 1.5% increase (possibly higher) to Medicare reimbursement in 2026.
Operational Initiatives: AI-powered documentation and semi-virtualized front desk processes are being rolled out, targeting 200 facilities by year-end.
Acquisition Focus: M&A remains the primary use of capital, with emphasis on growing the higher-return injury prevention segment.
Steady Demand & Retention: Demand for physical therapy remains strong across markets, with successful recruitment and stable therapist turnover.
