U.S. Physical Therapy’s first quarter results came in ahead of Wall Street’s expectations, with management highlighting strong patient volumes and improved reimbursement rates as key drivers. CEO Christopher Reading described a quarter that began with weather-related disruptions but finished with record-high average daily visits for a first quarter. The company’s recent Metro acquisition also contributed meaningfully to revenue growth. Reading noted, “By the end of [March], we finished really strong...and that has continued as we’ve gone forward,” underscoring that demand remained robust despite early setbacks.
Is now the time to buy USPH? Find out in our full research report (it’s free).
U.S. Physical Therapy (USPH) Q1 CY2025 Highlights:
- Revenue: $183.8 million vs analyst estimates of $176.1 million (18.1% year-on-year growth, 4.4% beat)
- Adjusted EPS: $0.48 vs analyst estimates of $0.45 (6.2% beat)
- Adjusted EBITDA: $19.54 million vs analyst estimates of $18.44 million (10.6% margin, 5.9% beat)
- Operating Margin: 10.7%, up from 9.2% in the same quarter last year
- Sales Volumes rose 13.9% year on year (3.3% in the same quarter last year)
- Market Capitalization: $1.23 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions U.S. Physical Therapy’s Q1 Earnings Call
-
Joanna Gajuk (Bank of America) asked about the impact of weather on mature clinic revenue and whether volume declines would reverse. CEO Christopher Reading and CFO Carey Hendrickson confirmed weather was the primary driver and expect demand to recover.
-
Benjamin Rossi (JPMorgan) inquired about what drives growth in the industrial injury prevention segment and the use of inflation adjustments in contracts. Reading and COO Eric Williams highlighted organic growth, the effectiveness of injury prevention programs, and periodic renegotiation of contract rates.
-
Brian Tanquilut (Jefferies) questioned if the business upturn was due to demand durability or improved clinician productivity. Reading pointed to investments in recruiting, school partnerships, and internship programs as contributing factors.
-
Lawrence Solow (CJS Securities) pressed for detail on rate trends across commercial, Medicare, and workers' compensation payers. Hendrickson reported commercial and workers’ comp rates rose, with Metro’s payer contracts delivering incremental rate increases.
-
Jared Haase (William Blair) explored lessons from the Metro acquisition and the opportunity for expanding home care services. Reading explained Metro’s home care model is being evaluated for rollout to other partnerships, particularly to reach homebound patients.
Catalysts in Upcoming Quarters
Looking ahead, StockStory analysts will be watching (1) whether payer contract renegotiations deliver sustained net rate improvements, (2) the success of home care and injury prevention expansion in driving incremental volumes and profit, and (3) the company’s ability to manage labor costs and clinic productivity as it integrates recent acquisitions. Upcoming regulatory decisions on Medicare reimbursement also remain an important external variable.
U.S. Physical Therapy currently trades at $80.67, up from $70.87 just before the earnings. Is there an opportunity in the stock?The answer lies in our full research report (it’s free).
Our Favorite Stocks Right Now
Donald Trump’s victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs.
While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.