Earnings Per Share

6 Months Ended

Jun. 30, 2026

2. Earnings Per Share

Basic and diluted earnings per share is computed using the two-class method, which is an earnings allocation method that determines earnings per share for common shares and participating securities. Outstanding restricted stock awards are considered participating securities as they contain nonforfeitable rights to dividends. Accordingly, any unvested shares of restricted stock are included in the basic and diluted earnings per share computation. Additionally, in accordance with current accounting guidance, the revaluation of redeemable non-controlling interest (see Note 4 - Redeemable Non-Controlling Interest), net of tax, is charged directly to retained earnings and is included in the earnings per basic and diluted share calculation.

The computation of basic and diluted earnings per share is as follows.

	Three Months Ended						Six Months Ended
	June 30, 2026			June 30, 2025			June 30, 2026			June 30, 2025
Earnings per Share	(In thousands, except per share data)						(In thousands, except per share data)
Computation of earnings per share - USPH shareholders:
Net income attributable to USPH shareholders	$	9,898		$	12,393		$	14,936		$	22,292
Charges to retained earnings:
Revaluation of redeemable non-controlling interest		(8,294	)		(4,806	)		(17,663	)		(1,903	)
Tax effect at statutory rate (federal and state)		2,202			1,228			4,690			486
	$	3,806		$	8,815		$	1,963		$	20,875

Earnings per share (basic and diluted)	$	0.25		$	0.58		$	0.13		$	1.38

Shares used in computation:
Basic and diluted earnings per share - weighted-average shares		15,070			15,197			15,118			15,165