US Physical Therapy (USPH) Q2 2025 earnings summary

Executive summary

• Achieved record Q2 with strong growth in physical therapy and industrial injury prevention, driven by high patient satisfaction, operational execution, and expanded clinic network, reaching 768 owned/managed clinics as of June 30, 2025.

• Net promoter score reached 93.5, with 95% of patients as active promoters, far exceeding healthcare benchmarks.

• Net income for Q2 2025 was $12.4M, up 65% year-over-year; six-month net income reached $22.3M, a 43% increase over the prior year.

• Declared a quarterly dividend of $0.45 per share and announced a $25 million share repurchase program effective through 2026.

• Launched new home care business and expanded cash-based service offerings, generating $900,000 in additional revenue.

Financial highlights

• Adjusted EBITDA for Q2 2025 was $26.9 million, up 21.4% year-over-year; margin expanded to 17.5%.

• Total net revenue for Q2 2025 increased 18% to $197.3M, with physical therapy revenues at $168.3M and IIP revenue at $29.1M.

• Gross profit for Q2 2025 was $41.6M, with an adjusted gross margin of 21.1%.

• Net rate per patient visit was $105.33, up from $105.05 last year, despite a 2.9% Medicare rate cut.

• Operating income for Q2 2025 was $24.9M, up 60% from Q2 2024; EPS at $0.58 vs. $0.47 year-over-year.

Outlook and guidance

• Raised full-year 2025 adjusted EBITDA guidance to $93–$97 million, up from $88–$93 million, citing strong year-to-date performance.

• Expect positive Medicare reimbursement tailwind in 2026, with a projected 1–1.75% rate increase, adding $2–$3 million to revenue.

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

• Guidance will only be updated if material developments occur that could move results outside the stated range.