US Physical Therapy (USPH) Q1 2026 earnings summary

Executive summary

• Q1 2026 net revenue grew 7.9% year-over-year to $198.3 million, driven by growth in physical therapy and industrial injury prevention segments.

• Net income attributable to shareholders was $5.0 million, down from $9.9 million in Q1 2025, primarily due to a $2.0 million loss on contingent earn-out revaluation and higher corporate costs.

• Adjusted EBITDA rose to $20.2 million from $19.5 million year-over-year.

• Strategic initiatives include front desk virtualization, AI-assisted documentation, remote monitoring, and expansion of cash-based programs.

• Two significant acquisitions closed in Q1, and two major hospital alliances were announced, expanding clinical network reach.

Financial highlights

• Physical therapy net revenue was $167.7 million, up 7.2% year-over-year; industrial injury prevention revenue was $30.6 million, up 11.8%.

• Patient visits increased 6.9% to 1,543,144; average daily visits per clinic rose to 31.8.

• Net patient revenue per visit increased to $106.49, up $0.83 from prior year.

• Adjusted EBITDA margin was 10.2% of net revenue.

• Physical therapy margin was 15.8% (adjusted 16.1%), and IIP margin improved to 20.4%.

Outlook and guidance

• Full-year 2026 adjusted EBITDA guidance reaffirmed at $102–$106 million, including partial year impact of new hospital affiliations and Medicare rate increase.

• Hospital alliances expected to add at least $7.3 million in annualized EBITDA upon full integration.

• Management expects continued growth through acquisitions and new clinic development.

• Implementation costs for a new financial and HR system will continue through 2026.

• Cash and credit availability are considered sufficient to fund operations and growth through at least March 2027.