U.S. Physical Therapy's Revenue Growth Accelerates to 12.9%

The Tip Desk · November 11, 2026 · 3 min read

Third-quarter net revenue reached $222.6 million as a July twelve-clinic deal lifted the clinic count to 799 and GAAP earnings swung to a $1.04-a-share loss.

U.S. Physical Therapy (USPH), the outpatient physical therapy operator, reported third-quarter net revenue of $222.6 million, up 12.9% from $197.1 million a year earlier, a faster pace than the 8.5% year-over-year increase in the second quarter.

Gross profit rose 16.7% to $43.0 million from $36.9 million, after only 0.8% growth in the second quarter. Operating costs increased 12.0% to $179.5 million.

Net income attributable to shareholders was $11.0 million, down from $13.1 million a year earlier. The company reported a loss of $1.04 a share versus earnings of $0.48 a share. Under GAAP, changes in the value of redeemable noncontrolling interests are excluded from net income but included in the earnings-per-share calculation; the revaluation was a $36.2 million charge, compared with a $7.9 million charge a year earlier. Pretax income also included a $0.1 million loss on the change in fair value of contingent earn-out consideration, versus a $5.9 million gain a year earlier.

Adjusted EBITDA was $27.8 million, up from $23.9 million a year earlier. Adjusted earnings were $0.80 a share, compared with $0.66 a year earlier.

The company acquired a 67% interest in a twelve-clinic practice on July 1, 2026. It added 21 clinics in the third quarter and closed or sold three, ending the period with 799 clinics, versus 781 at the end of the second quarter.

Through the end of the third quarter, the company said it had integrated all 72 clinics under two hospital affiliation agreements. As of September 30, 2026, 62 of Metro’s outpatient physical therapy clinics in New York and 10 other clinics had become part of hospital clinical services networks.

Physical Therapy Operations reported GAAP gross profit of $17.8 million. Salaries and related costs were $109.2 million, or 58.2% of net revenue, and corporate costs were $35.8 million, or 18.9% of net revenue. A year earlier, GAAP gross profit was $17.4 million, salaries were $96.5 million (58.2%) and corporate costs were $31.2 million (18.6%).

For 2026, the Medicare Physician Fee Schedule increased reimbursement for therapy services by approximately 1.75%, which the company said equates to a 1.1% increase after considering the mix of Medicare Advantage plans, compared with 2025 rates.

On April 14, 2026, the company closed a $450.0 million five-year credit facility comprising a $175.0 million term loan and a $275.0 million revolver maturing April 14, 2031. In September 2026 it entered an interest-rate swap with a $170.6 million initial notional value that fixes term debt at 4.6% from June 30, 2027 to April 14, 2031. On September 21, 2026, it appointed Nchacha Etta as chief financial officer.

During the nine months ended September 30, 2026, the company repurchased 306,256 shares for $19.2 million, an average price of $62.80, under a $25.0 million authorization. The board declared a quarterly dividend of $0.46 payable December 11, 2026, matching the dividend declared in the prior two quarterly reports.