This press release contains statements that are considered to be forward-looking within the meaning under Section 21E of the Securities Exchange Act of 1934, as amended. These statements contain forward-looking information relating to the financial condition, results of operations, plans, objectives, future performance and business of our Company. These statements (often using words such as “believes”, “expects”, “intends”, “plans”, “appear”, “should” and similar words) involve risks and uncertainties that could cause actual results to differ materially from those we expect. Included among such statements may be those relating to new clinics, availability of personnel and the reimbursement environment. The forward-looking statements are based on our current views and assumptions and actual results could differ materially from those anticipated in such forward-looking statements as a result of certain risks, uncertainties, and factors, which include, but are not limited to:

ent conditions in our markets which may require us to reorganize or close certain clinics and thereby incur losses and/or closure costs including the possible write-down or write-off of goodwill and other intangible assets;

•	changes in Medicare rules and guidelines and reimbursement or failure of our clinics to maintain their Medicare certification and/or enrollment status;

•	revenue we receive from Medicare and Medicaid being subject to potential retroactive reduction;

•	changes in reimbursement rates or payment methods from third party payors including government agencies, and changes in the deductibles and co-pays owed by patients;

•	private third-party payors for our services may adopt payment policies that could limit our future revenue and profitability;

•	compliance with federal and state laws and regulations relating to the privacy of individually identifiable patient information, and associated fines and penalties for failure to comply;

•	compliance with state laws and regulations relating to the corporate practice of medicine and fee splitting, and associated fines and penalties for failure to comply ;

•	competitive, economic or reimbursement conditions in our markets which may require us to reorganize or close certain clinics and thereby incur losses and/or closure costs including the possible write-down or write-off of goodwill and other intangible assets;

•	the impact of a termination of one or more of the Company’s hospital affiliated arrangements, which could have an adverse impact on revenue and the results of operations;

•	the impact of future public health crises and epidemics/pandemics;

•	certain of our acquisition agreements contain put-rights related to a future purchase of significant equity interests in our subsidiaries or in a separate company;

•	the impact of future vaccinations and/or testing mandates at the federal, state and/or local level, which could have an adverse impact on staffing, revenue, costs and the results of operations;

•	our debt and financial obligations could adversely affect our financial condition, our ability to obtain future financing, and our ability to operate our business;

•	changes as the result of government enacted national healthcare reform;

•	the ability to control variable interest entities for which we do not have a direct ownership;

•	business and regulatory conditions including federal and state regulations;

•	governmental and other third party payor inspections, reviews, investigations and audits, which may result in sanctions or reputational harm and increased costs;

•	revenue and earnings expectations;

•	contingent consideration provisions in certain of our acquisition agreements, the value of which may impact future financial results;

•	legal actions, which could subject us to increased operating costs and uninsured liabilities;

•	general economic conditions, including but not limited to inflationary and recessionary periods;

•	actual or perceived events involving banking volatility, defaults or other adverse developments that affect the U.S or the international financial systems, may result in market wide liquidity problems which could have a material and adverse impact on our available cash and results of operations;

•	our business depends on hiring, training, and retaining qualified employees;

•	availability and cost of qualified physical therapists;

•	competitive environment in the industrial injury prevention services business, which could result in the termination or non-renewal of contractual service arrangements and other adverse financial consequences for that service line;

•	our ability to identify and complete acquisitions, and the successful integration of the operations of the acquired businesses;

•	impact on the business and cash reserves resulting from retirement or resignation of key partners and resulting purchase of their non-controlling interest (minority interests);

•	maintaining our information technology systems with adequate safeguards to protect against cyber-attacks;

•

a security breach of our or our third party vendors’ information technology systems may subject us to potential legal action and reputational harm and may result in a violation of the Health Insurance Portability and Accountability Act of 1996 of the Health Information Technology for Economic and Clinical Health Act;

•	maintaining clients for which we perform management, industrial injury prevention related services, and other services, as a breach or termination of those contractual arrangements by such clients could cause operating results to be less than expected;

•	maintaining adequate internal controls;

•	use of generative artificial intelligence;

•	maintaining necessary insurance coverage;

•	availability, terms, and use of capital; and

•	weather and other seasonal factors.

Many factors are beyond our control. Given these uncertainties, you should not place undue reliance on our forward-looking statements. For additional information regarding these and other risks and uncertainties, that could cause actual results to differ materially from those contained in our forward-looking statements, please refer to “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2025, filed with the Securities and Exchange Commission (“SEC”) on February 27, 2026 and any risk factors contained in subsequent quarterly and annual reports we file with the SEC. Our forward-looking statements represent our estimates and assumptions only as of the date of this report. Except as required by law, we are under no obligation to update any forward-looking statement as a result of new information, future events, or otherwise, except as required by law.

Physical therapy revenue per patient visit is net revenue from owned and hospital affiliated clinics as well as homecare divided by total number of patient visits (defined below) during the periods presented. This metric excludes other management contracts.

Patient visits is the number of unique patient visits at the Company’s owned and hospital affiliated clinics as well as homecare for the periods presented.  This metric excludes other management contracts.

Average daily visits per clinic is patient visits at the Company’s owned and hospital affiliated clinics, divided by the number of days in which normal business operations were conducted during the periods presented and further divided by the average number of owned and hospital affiliated clinics in operation during the periods presented. This metric excludes homecare and other management contracts.

Clinic count includes owned and hospital affiliated clinics as well as other management contracts.  This metric excludes homecare.

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(1)Includes revenues and/or costs related to other management contracts.

(2)Amortization of certain intangible assets was reallocated between physical therapy operations and IIP segments for Q2 2025 amounts to conform with current presentation.

(3)See Glossary of terms for definition. Reflects the average number of clinic locations (755 and 731) during the current and prior-year periods, respectively. .

(4)Beginning Q2 2026, the Company changed its salaries and related costs metric from cost-per-visit to percentage-of-revenue, which management believes is a more meaningful presentation. For hospital affiliated clinics, salaries and related costs reimbursements by hospital systems are recognized as revenue by USPH, supporting this presentation change.  Prior period metrics have been revised to conform to the current presentation.

(5)Includes cost and revenue from physical therapy operations. Excludes costs and revenue from other management contracts.

(6)Excludes certain incentive costs related to Metro. See the section titled Reconciliation of Non-GAAP Measures to the Most Directly Comparable GAAP Measure.

(7)Excludes certain incentive costs related to the Metro acquisition, business acquisition costs and clinic closure costs.  See the section titled Reconciliation of Non-GAAP Measures to the Most Directly Comparable GAAP Measure.

*     Not applicable.

 

		Six Months Ended								Variance
		June 30, 2026				June 30, 2025				$					%
Physical Therapy Operations		(In thousands, except percentages)
Revenue related to:
Net patient revenue		$	337,552			$	316,730			$	20,822				6.6	%
Hospital affiliation revenue			5,564				-				5,564				*
Other revenue (1)			6,914				7,970				(1,056	)			(13.2	)%
Total revenue			350,030				324,700				25,330				7.8	%
Operating costs (1)(2)			288,062				263,017				25,045				9.5	%
Gross profit		$	61,968			$	61,683			$	285				0.5	%
IIP
Net revenue		$	62,314			$	56,432			$	5,882				10.4	%
Operating costs (2)			49,587				45,426				4,161				9.2	%
Gross profit		$	12,727			$	11,006			$	1,721				15.6	%
Financial and operating metrics (not in thousands):
Patient visits (3)			3,204,838				3,002,561				202,277				6.7	%
Average daily visits per clinic (3)			32.7				31.9				0.8				2.5	%
Physical therapy revenue per patient visit (3)		$	107.06			$	105.49			$	1.57				1.5	%
Mature revenue percent change (3)			3.1	%			(0.5	%)
Salaries and related costs, as a percentage of revenue (4)(5)			58.9	%			58.0	%
Adjusted salaries and related costs, as a percentage of revenue (4)(5)(6)			58.6	%			58.0	%
Physical therapy operations gross profit margin (2)			17.7	%			19.0	%
Adjusted physical therapy operations gross profit margin (2)(7)			18.1	%			19.2	%
IIP gross profit margin			20.4	%			19.5	%

		June 30, 2026				December 31, 2025
		(unaudited)
ASSETS
Current assets:
Cash and cash equivalents		$	24,887			$	35,570
Patient accounts receivable, less provision for credit losses of $3,824 and $3,775, respectively			69,603				64,249
Accounts receivable - other			28,557				24,087
Other current assets			16,628				16,084
Total current assets			139,675				139,990
Fixed assets:
Furniture and equipment			74,132				67,891
Leasehold improvements			60,397				58,985
Fixed assets, gross			134,529				126,876
Less accumulated depreciation and amortization			(94,095	)			(91,225	)
Fixed assets, net			40,434				35,651
Operating lease right-of-use assets			156,466				144,197
Investment in unconsolidated affiliate			12,712				12,275
Goodwill			716,535				692,392
Other identifiable intangible assets, net			176,547				172,861
Other assets			6,505				6,644
Total assets		$	1,248,874			$	1,204,010
LIABILITIES, REDEEMABLE NON-CONTROLLING INTEREST, USPH SHAREHOLDERS’ EQUITY AND NON-CONTROLLING INTEREST
Current liabilities:
Accounts payable - trade		$	6,917			$	6,059
Accrued expenses			45,424				49,424
Current portion of operating lease liabilities			42,871				42,134
Current portion of term loan and notes payable			4,563				9,865
Other current liabilities			10,134				31,558
Total current liabilities			109,909				139,040
Notes payable, net of current portion			890				417
Revolving facility			46,000				30,500
Term loan, net of current portion and deferred financing costs			168,566				121,677
Deferred taxes			30,998				28,391
Operating lease liabilities, net of current portion			122,899				110,572
Other long-term liabilities			2,954				3,214
Total liabilities			482,216				433,811
Redeemable non-controlling interest - temporary equity			317,491				293,311
Commitments and Contingencies
U.S. Physical Therapy, Inc. ("USPH") shareholders’ equity:
Preferred stock, $.01 par value, 500,000 shares authorized, no shares issued and outstanding			-				-
Common stock, $.01 par value, 20,000,000 shares authorized,
17,526,791 and 17,418,621 shares issued, respectively			175				174
Additional paid-in capital			290,551				285,522
Accumulated other comprehensive gain			1,047				714
Retained earnings			213,361				227,216
Treasury stock at cost, 2,603,117 shares and 2,296,059 shares, respectively			(56,478	)			(37,194	)
Total USPH shareholders’ equity			448,656				476,432
Non-controlling interest - permanent equity			511				456
Total USPH shareholders' equity and non-controlling interest - permanent equity			449,167				476,888
Total liabilities, redeemable non-controlling interest,
USPH shareholders' equity and non-controlling interest - permanent equity		$	1,248,874			$	1,204,010

U. S. PHYSICAL THERAPY, INC. AND SUBSIDIARIES

RECONCILIATION OF OTHER NON-GAAP MEASURES TO THE

MOST COMPARABLE GAAP MEASURES

U. S. PHYSICAL THERAPY, INC. AND SUBSIDIARIES

RECONCILIATION OF OTHER NON-GAAP MEASURES TO THE

MOST COMPARABLE GAAP MEASURES