U.S. Physical Therapy Reports 7.9% Revenue Growth but Declines in Net Income for Q1 2026

U.S. Physical Therapy, Inc. reported its financial results for the first quarter of 2026, revealing a net revenue of $198.3 million, a 7.9% increase from $183.8 million in the same period last year. The company's net patient revenue rose to $164.3 million, up from $152.5 million, while other revenue also saw an increase, reaching $34.0 million compared to $31.2 million in the prior year. However, net income attributable to U.S. Physical Therapy shareholders decreased significantly to $5.0 million, or a loss of $0.12 per share, down from $9.9 million, or $0.80 per share, in the first quarter of 2025.

The company's operating costs increased by 8.4% to $165.5 million, driven primarily by higher salaries and related costs, which rose to $119.5 million from $111.2 million. The gross profit for the quarter was $32.8 million, representing a gross margin of 16.5%, slightly down from 16.9% in the previous year. The decline in profitability was attributed to a loss on the change in fair value of contingent earn-out consideration, which amounted to $2.0 million in the current quarter compared to a gain of $4.8 million in the prior year.

In terms of operational developments, U.S. Physical Therapy expanded its clinic network, adding 15 clinics while closing 12, resulting in a total of 783 clinics as of March 31, 2026, compared to 766 a year earlier. The company also completed several acquisitions, including a 70% interest in an industrial injury prevention business and a 50% interest in an eight-clinic practice, further solidifying its market presence. The company’s strategic focus remains on acquiring multi-clinic outpatient physical therapy practices and expanding its industrial injury prevention services.

Looking ahead, U.S. Physical Therapy has expressed confidence in its growth strategy, supported by a new $450 million credit facility established in April 2026, which is expected to fund future acquisitions and operational needs. The company anticipates that its cash and cash equivalents, along with available credit, will be sufficient to meet its working capital requirements through at least March 2027. The management remains vigilant regarding market conditions and regulatory changes that could impact its operations, particularly in the Medicare reimbursement landscape.