The quarter missed the market’s adjusted-earnings bar. Published Q2 consensus was approximately $0.81 per share, versus USPH’s $0.75 operating results per share — a narrow miss.
| Metric | Q2 2026 | Q2 2025 | Market expectation |
|---|---|---|---|
| Net revenue | $214.1M | $197.3M | Not reliably published |
| Operating results | $11.3M | $12.4M | — |
| Operating results per share | $0.75 | $0.81 | ~$0.81 |
| Adjusted EBITDA | $27.0M | $26.9M | — |
| Physical therapy margin | 19.5% | 21.2% | — |
| Adjusted physical therapy margin | 19.9% | 21.4% | — |
| IIP margin | 20.4% | 20.3% | — |
Growth was solid, but the core physical-therapy engine did not convert it into more profit. Revenue rose 8.5%, patient visits increased 6.6%, and revenue per visit grew 2.1%; however, physical-therapy gross profit fell 0.7% because operating costs grew faster than revenue. The reported margin declined 170 basis points, or 150 basis points even after adjustments. (Financial Highlights; Segment Information)
The operating miss is more meaningful than the weak GAAP EPS headline. GAAP EPS fell to $0.25 from $0.58, but much of the decline reflects a larger revaluation charge for redeemable non-controlling interests, which is excluded from operating results. Even on the company’s preferred adjusted measure, operating results declined to $11.3 million from $12.4 million and operating results per share fell to $0.75 from $0.81. (Income Statement; Reconciliation of Non-GAAP Measures)
The forward setup remains intact, but it is still largely a promise about the back half. Management reaffirmed $102 million-$106 million of full-year adjusted EBITDA guidance and said the remaining 39 hospital-affiliated clinics should integrate in Q3, following 31 integrations completed in Q2. That provides a potential margin-recovery catalyst, but the filing shows little Q2 evidence of operating leverage yet. (2026 Earnings Guidance; Hospital Affiliations)
Balance-sheet flexibility is weaker than the headline growth suggests. Cash declined to $24.9 million from $35.6 million at year-end, while credit-facility borrowings rose to $221.0 million from $161.8 million. The company also spent $19.2 million on share repurchases in Q2 and $13.9 million on dividends during the first half, alongside acquisition and minority-interest purchases. (Balance Sheet and Cash Flow; Consolidated Balance Sheet; Cash Flow Statement)
Read the original 8-K on SEC EDGAR ↗