U.S. Physical Therapy Reports 8.5% Revenue Growth in Q2 2026, Net Income Declines

U.S. Physical Therapy, Inc. reported its financial results for the second quarter and first half of 2026, revealing a total net revenue of $214.1 million for the quarter, an increase of 8.5% from $197.3 million in the same period last year. For the six months ended June 30, 2026, net revenue reached $412.3 million, up 8.2% from $381.1 million in the prior year. However, net income attributable to shareholders decreased to $9.9 million, or $0.25 per share, compared to $12.4 million, or $0.58 per share, in the second quarter of 2025. For the first half of 2026, net income attributable to shareholders was $14.9 million, down from $22.3 million in the same period of 2025.

The company experienced a rise in operating costs, which increased by 10.5% to $172.1 million in the second quarter, primarily due to higher salaries and related costs, which rose to $125.4 million from $113.8 million. The gross profit for the quarter was $41.9 million, reflecting a slight increase from $41.6 million in the previous year. The gross profit margin decreased to 19.6% from 21.1% in the prior year, attributed to rising operational costs and changes in health benefit costs.

In terms of strategic developments, U.S. Physical Therapy completed several acquisitions, including a 70% interest in an industrial injury prevention business and a 50% interest in an eight-clinic practice in January 2026. The company also announced a strategic alliance with a New York hospital system to integrate 60 outpatient physical therapy clinics into its clinical services network. As of June 30, 2026, the company operated 781 clinics, an increase from 766 clinics a year earlier.

The company’s balance sheet showed total assets of $1.25 billion as of June 30, 2026, up from $1.20 billion at the end of 2025. Cash and cash equivalents decreased to $24.9 million from $35.6 million. U.S. Physical Therapy's total liabilities increased to $482.2 million, with a notable rise in long-term debt due to new borrowings under its recently established $450 million credit facility. The company reported a net cash provided by operating activities of $38.2 million for the first half of 2026, compared to $30.2 million in the same period of 2025.

Looking ahead, U.S. Physical Therapy remains focused on expanding its clinic network and enhancing operational efficiency. The company plans to continue pursuing acquisitions and developing outpatient physical therapy clinics as part of its growth strategy. The management expressed confidence in the company’s ability to navigate the evolving healthcare landscape and maintain its financial stability, despite the challenges posed by regulatory changes and market conditions.