US Physical Therapy (USPH) Q1 2025 earnings summary

Executive summary

• Achieved record-high average visits per clinic per day for any first quarter, with strong recovery in March and continued momentum into Q2, despite weather-related headwinds.

• Net revenue for Q1 2025 increased 18.1% year-over-year to $183.8 million, driven by clinic additions, higher net rate per patient visit, and significant contributions from the Metro acquisition.

• Net income attributable to shareholders rose 23.0% to $9.9 million, with EPS at $0.80 versus $0.46 in Q1 2024.

• Adjusted EBITDA increased 16.5% year-over-year to $19.5 million, with strong demand and positive rate progression despite ongoing Medicare rate cuts.

• Added 14 new centers in the quarter through acquisitions and organic openings, with a robust pipeline of deals in diligence; 7 clinics closed, bringing total owned/managed clinics to 773 at quarter-end.

Financial highlights

• Physical therapy revenues reached $156.4 million, up 16.4% from Q1 2024, driven by higher net rates and acquisitions, especially Metro.

• Net rate per patient visit for Q1 was $105.66, up $2.29 year-over-year and $0.93 sequentially, despite a 2.9% Medicare rate cut.

• Adjusted EBITDA margin was approximately 12.5%–13.7% for the quarter; EBITDA increased by $2.8 million year-over-year.

• Physical therapy margin was 16.3%, down from 17.9% last year, but exceeded 20% in March; IIP margin held steady at 20.4%.

• Cash and cash equivalents at quarter-end: $39.2 million; available credit of $147.0 million; outstanding borrowings: $164.9 million.

Outlook and guidance

• Management is ahead of internal projections and expects strong volume and demand to continue, with updated guidance expected before or by the second quarter.

• Expects continued growth in same-clinic volume for the year, with mature clinics rebounding after weather impacts.

• Strategy remains focused on acquiring multi-clinic practices and expanding industrial injury prevention services.