US Physical Therapy Inc. Reports Strong Q2 Performance Amidst Market Challenges

In a remarkable display of resilience and strategic growth, US Physical Therapy Inc. (USPH) has reported a robust second quarter for 2025, marked by a significant 17.3% increase in physical therapy revenues. This performance has not only exceeded market expectations but also led to an upward revision of the company’s full-year EBITDA guidance. Despite facing headwinds from Medicare rate reductions, USPH’s adept management and operational efficiency have shone through, underscoring the company’s robust position in the health care sector.

The company’s shares experienced a notable surge, trading up 15.4% during mid-day trading on Thursday, following the earnings announcement. The stock reached a high of $85.12, closing at $83.87, a substantial increase from the previous close of $72.69. This positive market reaction reflects investor confidence in USPH’s growth trajectory and its ability to navigate the complexities of the health care landscape.

USPH’s earnings per share (EPS) for the quarter stood at $0.81, surpassing analysts’ consensus estimates of $0.71 by $0.10. The company reported a quarterly revenue of $197.34 million, outperforming the consensus estimate of $190.24 million. This financial performance is a testament to USPH’s strategic initiatives and its commitment to expanding its network of freestanding outpatient physical therapy clinics across the United States.

In addition to financial achievements, USPH reported all-time record patient visits for the quarter, further highlighting the company’s growing footprint in the health care sector. This milestone is indicative of the increasing demand for physical therapy services and USPH’s ability to meet this demand through its extensive network of clinics and partnerships with physical therapists.

Despite a previous report indicating a 20% drop in EPS due to a miss, the company’s overall performance in Q2 2025 has been strong, with adjusted EBITDA reaching $26.9 million for the quarter, marking a 21.4% increase from the same period in the previous year. This growth in EBITDA, a key indicator of operational profitability, underscores USPH’s effective cost management and revenue generation strategies.

As USPH continues to navigate the challenges and opportunities within the health care sector, its recent performance and strategic initiatives position it well for sustained growth. The company’s ability to exceed earnings and revenue estimates, coupled with its record patient visits, signals a positive outlook for USPH and its stakeholders.

Investors and market watchers will undoubtedly keep a close eye on USPH as it moves forward, leveraging its strong foundation and strategic vision to capitalize on the growing demand for physical therapy services in the United States. With its shares trading on the New York Stock Exchange and a market capitalization of $1.27 billion, USPH remains a significant player in the health care providers and services industry, poised for continued success in the years to come.