U.S. Physical Therapy Press Release	Page 2
August 6, 2025

Net revenue from physical therapy operations increased $24.8 million, or 17.3%, to $168.3 million for the 2025 Second Quarter from $143.5 million for the 2024 Second Quarter. This growth was due to the increase in visits from the 51 net clinics added since the comparable prior year period and an increase in net rate per patient visit, which reflects the Company’s strategic priority of increasing reimbursement rates through contract negotiations with commercial and other payors and the addition of acquisitions with accretive net rate per patient visit. Net rate per patient visit for the 2025 Second Quarter was $105.33 up from $105.05 for the 2024 Second Quarter, despite the approximate 2.9% Medicare rate reduction which went into effect on January 1, 2025. 

U.S. Physical Therapy Press Release	Page 3
August 6, 2025

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:

•	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 future public health crises and epidemics/pandemics, such as was the case with the novel strain of COVID-19 and its variants;

•	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 or limited liability, 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;

•	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, 2024, filed with the Securities and Exchange Commission (“SEC”) on March 3, 3025 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.

Founded in 1990, U.S. Physical Therapy, Inc. owns and/or manages 774 outpatient physical therapy clinics in 44 states. USPH clinics provide preventative and post-operative care for a variety of orthopedic-related disorders and sports-related injuries, treatment for neurologically-related injuries and rehabilitation of injured workers. USPH also has an industrial injury prevention business which provides onsite services for clients’ employees including injury prevention and rehabilitation, performance optimization, post-offer employment testing, functional capacity evaluations, and ergonomic assessments. 

U. S. PHYSICAL THERAPY, INC. AND SUBSIDIARIES

UNAUDITED CONSOLIDATED STATEMENTS OF INCOME

(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)

		Three Months Ended								Six Months Ended
		June 30, 2025				June 30, 2024				June 30, 2025				June 30, 2024
		(In thousands, except per share data)
Adjusted EBITDA (a non-GAAP measure)
Net income attributable to USPH shareholders		$	12,393			$	7,506			$	22,292			$	15,552
Adjustments:
Provision for income taxes			4,933				3,083				8,793				6,222
Depreciation and amortization			6,057				4,514				11,924				8,609
Interest expense, debt and other, net			2,422				1,980				4,701				3,948
Equity-based awards compensation expense			2,117				1,919				3,888				3,916
Interest income from investments			(28	)			(1,074	)			(52	)			(2,617	)
Change in revaluation of put-right liability			339				223				743				303
(Gain) loss on change in fair value of contingent earn-out consideration			(790	)			4,046				(5,612	)			3,434
Clinic Closure costs (1)			69				551				311				677
Business acquisition related costs (2)			320				-				800				-
ERP implementation costs (3)			159				-				221				-
Loss on sale of a partnership			-				-				123				-
Other income			(47	)			(109	)			(122	)			(171	)
Allocation to non-controlling interests			(1,081	)			(515	)			(1,608	)			(978	)
		$	26,863			$	22,124			$	46,402			$	38,895
Operating Results (a non-GAAP measure)
Net income attributable to USPH shareholders		$	12,393			$	7,506			$	22,292			$	15,552
Adjustments:
Gain (loss) on change in fair value of contingent earn-out consideration			(790	)			4,046				(5,612	)			3,434
Change in revaluation of put-right liability			339				223				743				303
Clinic closure costs (1)			69				551				311				677
Business acquisition related costs (2)			320				-				800				-
ERP implementation costs (3)			159				-				221				-
Loss on sale of a partnership			-				-				123				-
Allocation to non-controlling interests			(156	)			(68	)			(118	)			(84	)
Tax effect at statutory rate (federal and state)			16				(1,214	)			903				(1,106	)
		$	12,350			$	11,044			$	19,663			$	18,776
Operating Results per share (a non-GAAP measure)		$	0.81			$	0.73			$	1.30			$	1.25
Earnings per share
Computation of earnings per share - USPH shareholders:
Net income attributable to USPH shareholders		$	12,393			$	7,506			$	22,292			$	15,552
Charges to retained earnings:
Revaluation of redeemable non-controlling interest			(4,806	)			(622	)			(1,903	)			(2,061	)
Tax effect at statutory rate (federal and state)			1,228				159				486				527
		$	8,815			$	7,043			$	20,875			$	14,018
Earnings per share (basic and diluted)		$	0.58			$	0.47			$	1.38			$	0.93
Shares used in computation - basic and diluted			15,197				15,072				15,165				15,044

Revenue Metrics

(1)	See definition of the metrics above in the Glossary of Terms – Revenue Metrics section on page 5.

(2)

The Company also manages clinics owned by third parties through management contracts. In addition to the clinic count shown above (excluding the home-care business unit count), as of June 30, 2025, the Company managed 36 clinics bringing the total owned/managed clinics to 768.  In comparison, as of June 30, 2024, the Company managed 41 clinics bringing the total owned/managed clinics to 722.

(3)	Excludes home-care visits.