U.S. Physical Therapy Reports 18.1% Revenue Growth to $183.8 Million in Q1 2025

U.S. Physical Therapy, Inc. reported significant financial growth in its unaudited consolidated financial statements for the first quarter of 2025, with net revenue reaching $183.8 million, an increase of 18.1% from $155.7 million in the same period of 2024. The company's net patient revenue rose by 16.4% to $152.5 million, while other revenue increased by 27.0% to $31.2 million. The net income attributable to U.S. Physical Therapy shareholders was $9.9 million, up 23.0% from $8.0 million in the prior year, resulting in earnings per share of $0.80 compared to $0.46.

Operating costs also saw a substantial rise, increasing by 20.0% to $152.7 million, primarily driven by the addition of 53 net new clinics since the previous year. Salaries and related costs accounted for a significant portion of this increase, rising 18.7% to $111.2 million. Despite the increase in operating costs, the company achieved a gross profit of $31.1 million, representing 16.9% of net revenue, although this was a slight decline from 18.2% in the previous year.

Strategically, U.S. Physical Therapy has continued its expansion through acquisitions, completing several significant transactions. In February 2025, the company acquired a 65% interest in a physical practice with three clinic locations for approximately $3.8 million. Additionally, the company has been actively acquiring outpatient physical therapy practices and expanding its industrial injury prevention services, which contributed to a 28.8% increase in revenue from this segment, totaling $27.4 million for the quarter.

Operationally, the company managed a total of 736 clinics across 44 states as of March 31, 2025, with an additional 37 clinics managed under contracts with hospitals and physician groups. The average daily visits per clinic increased to 31.4, up from 29.5 in the previous year, reflecting improved patient engagement and service utilization. The company also reported a net rate per patient visit of $105.66, an increase from $103.37, despite a 2.9% reduction in Medicare reimbursement rates.

Looking ahead, U.S. Physical Therapy remains optimistic about its growth trajectory, focusing on further acquisitions and expanding its clinic network. The company has sufficient cash reserves and credit availability to support its operational needs and strategic initiatives, with total cash and cash equivalents at $39.2 million as of March 31, 2025. The board of directors has also declared a quarterly dividend of $0.45 per share, payable on June 13, 2025, indicating confidence in the company's ongoing financial health and commitment to returning value to shareholders.