U.S. Physical Therapy, Inc. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Total net revenue was $223 million for Q3 2026, a 13% increase over Q3 2025; year-to-date (YTD) revenue was $635 million, a 10% increase over YTD 2025.
• Net income attributable to USPH shareholders was $11 million for Q3 2026 compared to $13 million for Q3 2025; YTD net income was $26 million compared to $35 million for the same period in 2025.
• Reported loss per share was $1.04 for Q3 2026 compared to earnings per share of $0.48 in Q3 2025; YTD loss per share was $0.90 compared to $1.85 in 2025.
• Adjusted net income was $12 million for Q3 2026 compared to $10 million for Q3 2025; YTD adjusted net income was $30.2 million compared to $29.7 million in 2025.
• Adjusted earnings per share was $0.80 for Q3 2026 compared to $0.66 in Q3 2025; YTD adjusted EPS was $2.01 compared to $1.96 in 2025.
• Adjusted EBITDA was $28 million for Q3 2026 compared to $24 million for Q3 2025; YTD adjusted EBITDA was $75 million compared to $70 million in 2025.
• Physical therapy net revenue was $190 million for Q3 2026 (13% increase) and $540 million YTD (10% increase).
• IIP revenue was $33 million for Q3 2026 (14% increase) and $95 million YTD (12% increase).
• Physical therapy margin was 19% for Q3 2026 and 18% YTD 2026, compared to 19% Q3 2025 and 19% YTD 2025.
• Adjusted physical therapy margin was 19% for Q3 2026 (up 150 basis points from Q3 2025) and 18% YTD 2026 (down from 19% YTD 2025).
• IIP margin was 22% for Q3 2026 (up from 20% in Q3 2025) and 21% YTD 2026 (up from 20% YTD 2025).
• Corporate expense as a percentage of total revenue was 8% for Q3 2026 (down from 9% in Q3 2025) and 9% YTD 2026 (flat with YTD 2025).
• Cash and cash equivalents were $38 million as of September 30, 2026, compared to $36 million as of December 31, 2025.
• Borrowings under the credit facility were $247 million as of September 30, 2026, compared to $162 million as of December 31, 2025.

Guidance and Future Outlook:

• Management reaffirmed full-year 2026 adjusted EBITDA guidance of $102 million to $106 million.
• The Company expects revenue from the 72 clinics operating under hospital affiliation agreements to increase significantly as referral volumes rise, additional clinics are incorporated, and the pipeline of hospital prospects results in new affiliations.

Business Segments and Product Lines:

• Physical therapy patient visits were 1.7 million for Q3 2026 (8% increase) and 4.9 million YTD (7% increase).
• Average daily visits per clinic were 33 for Q3 2026 (up from 32 in Q3 2025) and 33 YTD (up from 32 YTD 2025).
• Physical therapy net revenue per patient visit was $111 for Q3 2026 (up $5 from Q3 2025) and $108 YTD (up $3 from YTD 2025).
• Mature revenue increased 6% in Q3 2026 and 4% YTD 2026.
• IIP revenue increased 8% in Q3 2026 and 7% YTD 2026, excluding the IIP acquisition on January 31, 2026.
• The Company added 21 locations and closed three locations during Q3 2026, bringing the total location count to 799 as of September 30, 2026.
• The Company successfully integrated all 72 clinics under two previously announced hospital affiliation agreements.
• On July 1, 2026, the Company acquired a 67% equity interest in a 12-clinic physical therapy practice for $16 million; the business generates $12 million in annual revenue and 0.1 million annual visits.

Market and Competitive Landscape:

• Hospital affiliation agreements generated $25 million in revenue in Q3 2026.
• The Company operates 799 outpatient physical therapy locations in 45 states.

Risks and Challenges:

• Cost pressures from the self-insured employee medical program continued in Q3, impacting margins by approximately 150 basis points in the quarter and 100 basis points YTD compared to favorable experiences in the prior year.
• The press release lists numerous forward-looking risks including changes in Medicare rules, reimbursement rates, regulatory compliance, competition, staffing availability, and potential impacts from public health crises or pandemics.
• Changes in the fair value of contingent earn-out consideration resulted in a $0.1 million loss in Q3 2026 compared to a $6 million gain in Q3 2025.

Management Commentary and Tone:

• Chairman and CEO Chris Reading expressed pleasure with the strong financial performance, noting that EBITDA improvement reflects the initial benefit of the completed hospital affiliation rollout.
• Management implemented expense control efforts to mitigate medical program overages, which are expected to benefit future periods.
• Management thanked partners, clinicians, and support staff for their efforts.

Other Key Points:

• The Board of Directors declared a quarterly dividend of $0.46 per share, payable on December 11, 2026, to shareholders of record on November 16, 2026.
• On September 22, 2026, the Company entered into a new interest rate swap agreement with a $171 million initial notional value, fixing term debt at 4.6% from June 30, 2027, to April 14, 2031.
• Net cash provided by operating activities was $63.9 million for the nine months ended September 30, 2026, compared to $50.1 million in the same period of 2025.
• Net cash used in investing activities was $72.7 million for the nine months ended September 30, 2026, compared to $31.3 million in the same period of 2025.
• Net cash provided by financing activities was $11.4 million for the nine months ended September 30, 2026, compared to net cash used of $29.1 million in the same period of 2025.
• The Company repurchased $19.2 million of common stock during the nine months ended September 30, 2026.