U.S. Physical Therapy, Inc. (NYSE: USPH) reported financial results for the three and nine months ended September 30, 2026, during a conference call on November 5, 2026. The company, a national operator of outpatient physical therapy clinics and provider of industrial injury prevention services, announced that total revenue for the third quarter of 2026 was $223 million, representing a 13% increase compared to the same period in 2025.
Key operational metrics showed significant growth. Patient visits totaled 1.68 million, up 8% year-over-year, while the average number of visits per clinic rose to 33 from 32 in the prior year. The company noted that every month in 2026 has been a record for that month, marking 27 consecutive months of record volume. A major driver of this growth was the company's hospital affiliation strategy. Hospital revenue exceeded $25 million in the third quarter, representing over 13% of total revenue, up from less than 5% in the second quarter. This increase was attributed to the completion of the Metro New York facilities transition to NYU Langone and the onboarding of the Gulf Coast Group, which added 10 facilities in September.
Financial performance also improved, with adjusted physical therapy margin increasing to 19% in the third quarter, a 60 basis point improvement compared to the prior year. Adjusted earnings per share were $0.80, an increase of $0.14 from Q3 2025. However, the company reported that GAAP net income attributable to shareholders was $11 million, compared to $13 million in the prior year, resulting in a GAAP loss per share of $1.04.
The company highlighted that employee insurance claims expense was $7 million higher year-to-date compared to last year, with a $2 million overrun in the third quarter. In response, the company implemented targeted labor reductions and cost control initiatives. The Industrial Injury Prevention (IIP) segment also performed well, with revenue growing 14% to $33 million and margins improving by 230 basis points.
Regarding its balance sheet, U.S. Physical Therapy ended the quarter with $38 million in cash and $247 million in credit facility borrowings. The company repurchased $19 million in shares and paid $21 million in dividends during the first nine months of the year. The company also entered into a new interest rate swap agreement on September 22, 2026, to hedge a portion of its floating rate debt, fixing the SOFR index at 4.6% through April 2031.
