US Physical Therapy (USPH) Q1 2025 earnings summary

Executive summary

• Achieved record-high average visits per clinic per day and record first quarter patient volume, with net patient revenue up 16.4% year-over-year to $156.4 million, despite weather-related headwinds; strong March recovery and robust demand supported outperformance.

• 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.

• Added 14 clinics and closed 7, bringing total owned/managed clinics to between 736 and 773 at quarter-end; continued focus on acquisitions and multi-clinic deals.

• Board declared a quarterly dividend of $0.45 per share, payable June 13, 2025.

Financial highlights

• Physical therapy revenues reached $156.4 million, up 16.4% year-over-year, with net rate per visit at $105.66, up $2.29 year-over-year, despite a 2.9% Medicare rate cut.

• Industrial Injury Prevention (IIP) segment revenue grew 28.8% to $27.4 million, with gross margin steady at 20.4%.

• Adjusted EBITDA increased 16.5% year-over-year to $19.5 million, with margin improving to 13.7% from 13.2%.

• Operating income rose 31.6% to $19.6 million; gross margin for PT operations was 16.3% (down from 17.9%).

• Cash and cash equivalents at quarter-end were $39.2 million, with $147.0 million in available credit.

Outlook and guidance

• Management expects continued growth through acquisitions, new clinic development, and benefit from insurance renegotiations and workers compensation mix.

• Guidance update deferred until more data is available, but internal projections are being exceeded.

• Cash and credit facilities are considered sufficient to fund operations and expansion through at least March 2026.