AllSight
Companies · USPH · Services-Health Services · Earnings · Aug 10, 2026

Strong volume and hospital ramp, but Q2 profit stalled under cost pressure

U S PHYSICAL THERAPY INC /NV (USPH) — what happened, in plain English, and what it means versus what the market expected.

The filing does not establish a clean consensus beat or miss. No published analyst estimate is provided in the filing or accompanying context, so the reliable benchmark is the company’s existing 2026 adjusted EBITDA target of $102 million–$106 million. Against that bar, reaffirming guidance is essentially in line—not an upgrade. (Financial outlook)

Underlying demand was better than the earnings line suggests. Q2 revenue rose 8.5% to $214 million, led by physical therapy revenue up 8.4%, visits up 6.6%, a record $107.59 revenue per visit, and industrial injury prevention revenue up 9.1%. The hospital-affiliation rollout contributed $5.6 million of revenue, with 31 clinics integrated during the quarter and 39 more expected in Q3. (Financial highlights; Hospital affiliation rollout)

MetricQ2 2026Comparison
Total revenue$214 million+8.5% year over year (Financial highlights)
Physical therapy revenue$182 million+8.4% year over year (Financial highlights)
PT revenue per visit$107.59+$2.26 year over year (Financial highlights)
Adjusted EBITDA$27.0 million$26.9 million in Q2 2025 (Financial highlights)
Adjusted operating results$11.3 million$12.4 million in Q2 2025 (Financial highlights)
Adjusted operating results per share$0.75$0.81 in Q2 2025 (Financial highlights)
Net income attributable to USPH$9.9 million$12.4 million in Q2 2025 (Financial highlights)
GAAP EPS$0.25$0.58 in Q2 2025 (Financial highlights)
Full-year adjusted EBITDA guidance$102 million–$106 millionReaffirmed (Financial outlook)

Profit conversion was the weak point. Adjusted EBITDA was essentially flat despite high-single-digit revenue growth, while adjusted PT gross margin fell to 19.9% from 21.4%. Management attributed roughly $3.2 million of year-to-date pressure to unusually high employee medical claims, with most of that impact in Q2, plus upfront hiring costs for the hospital partnerships. The result is that strong volume and pricing have not yet translated into stronger operating earnings. (PT margin; Operating results)

The hospital strategy is progressing, but the payoff is still back-half weighted. The filing indicates that the remaining 39 clinics should transition in Q3, with roughly $1.5 million–$2 million of hospital-affiliation impact implied for Q4 and a larger 2027 contribution than the originally discussed $7.3 million. That improves the forward setup, but it remains execution-dependent and does not change the fact that current-quarter earnings were below the company’s operational potential. (Hospital affiliation rollout; Q&A)

Balance-sheet capacity improved, but at a higher debt cost. Year-end cash fell to $25 million from $36 million, while credit-facility borrowings increased to $221 million from $162 million; interest expense also rose to $3.2 million from $2.4 million. The expanded facility provides $229 million of revolver availability plus a $125 million accordion, supporting acquisitions, but the quarter shows that growth is being funded with more leverage while earnings remain flat. (Balance sheet; Liquidity)

Read the original 8-K on SEC EDGAR ↗
More from U S PHYSICAL THERAPY INC /NV (USPH)
Sep 28, 2026U.S. Physical Therapy locks $171M of debt costs, but adds no growth capitalSep 21, 2026U.S. Physical Therapy adds healthcare-tech director, but strategy remains unchangedAug 14, 2026A seasoned CFO arrives—with a $1.4 million first-year packageAug 12, 2026A polished growth deck, but little here is actually newAug 6, 2026Revenue grew, but margins slipped and adjusted earnings missed consensusAll USPH filings, decoded →
Related companies in Services-Health Services
Latest across the market
NTSTNETSTREIT debt amendment formalizes investment-grade pricing and widens leverage cushionFLOCFlowco acquisition adds Canadian rod lift but increases debt-funded execution riskCTRECareTrust acquisition adds 45 UK care homes, but SHOP payoff is years awayADCAgree Realty share-count filing adds routine dilution detail, not new business newsACNAccenture earnings beat as Q4 revenue clears guidance, but FY27 growth stays measuredROPRoper Technologies adds NTT DATA CEO to board, but brings no operating changeBrowse all companies, decoded →
Open live on AllSight — the whole market, decoded →
AllSight turns SEC filings into plain-English, neutral reads and objective market context. We explain what happened and how it lands versus expectations — we do not give investment advice or predict prices. Decoded straight from the filing; check it against the source.
Analysis by AllSight · Editorial standards & method · Contact