U.S. Physical Therapy achieves record $95M adjusted EBITDA in 2025
U.S. Physical Therapy (NYSE:USPH) reported a significant expansion in its 2025 financial performance, driven by robust organic growth and a steady cadence of clinic acquisitions.
The company’s adjusted EBITDA rose to $95 million for the full year ended December 31, 2025, a 16.2% increase from the $81.8 million recorded in 2024.
The company's core physical therapy operations saw fourth-quarter revenue climb 13% to $173.8 million, fueled by a record-high average of 32.7 daily patient visits per clinic.
This operational momentum helped mitigate the impact of ongoing Medicare rate reductions, which management estimated had a cumulative $25 million impact on annual profitability.
For the full year, non-GAAP operating results improved to $40 million, or $2.63 per share, up from $2.45 per share in the prior year.
While operating metrics trended upward, GAAP diluted earnings per share fell to $1.42 from $1.84 in 2024.
This decrease was primarily a technical accounting result of the company’s success; as the profitability of USPH’s partnership-model clinics rose, the valuation of redeemable non-controlling interests held by clinic partners increased by $18 million, which under GAAP is deducted from the earnings attributable to common shareholders.
The company’s Industrial Injury Prevention (IIP) segment also contributed to the record year, with fourth-quarter revenue rising 8.7% to $28.9 million.
Gross profit for the IIP division grew 11.5% in the final quarter, as the company secured major new contracts in the automotive and industrial sectors.
