The core operating story is solid — record volumes and pricing — but near-term earnings are being compressed by transitory medical costs and hospital affiliation startup expenses. The H2 margin recovery thesis depends on successful integration of 39 remaining clinics into the NYU Langone structure and realization of WelcomeWare cost savings. Watch Q3 2026 for evidence of margin inflection; a miss on the guided $102M-$106M EBITDA range would be a negative signal.
Price Chart
Executive Summary
USPH reported Q2 2026 results with total revenue of $214M (+8.5% YoY) and PT revenue of $182M (+8.4% YoY), driven by record clinic volumes (33.5 visits/day) and a best-ever net rate of $107.59. However, adjusted operating results per share fell to $0.75 from $0.81, and GAAP EPS dropped sharply to $0.25 from $0.58, weighed by elevated self-insured healthcare costs (~$3.2M year-to-date headwind) and front-loaded hiring costs for the NYU Langone hospital affiliation transition. Management reaffirmed full-year 2026 adjusted EBITDA guidance of $102M-$106M, expecting margin lift from the hospital affiliation ramp and WelcomeWare efficiencies in H2.
Key Facts
- Total revenue Q2 2026: $214M (+8.5% YoY)
- Physical therapy revenue: $182M (+8.4% YoY)
- Adjusted operating results per share: $0.75 vs $0.81 YoY
- GAAP EPS: $0.25 vs $0.58 YoY (impacted by earnout and redeemable NCI accounting)
- Adjusted EBITDA: $27.0M vs $26.9M YoY (essentially flat)
- Record visits per clinic per day: 33.5 (all-time high)
- Record net rate: $107.59 (+$2.26 YoY)
- Self-insured healthcare cost headwind: ~$3.2M year-to-date above average
- Reaffirmed FY 2026 adjusted EBITDA guidance: $102M-$106M
- Completed 12-clinic acquisition post-quarter for $16.4M ($12M annual revenue)
- Repurchased 306K shares for $19.2M at avg $62.80; $25M authorization materially concluded
- Integrated 31 clinics into hospital affiliations in Q2; 39 remaining expected in Q3
Financial Impact
Revenue growth of 8.5% YoY to $214M, but adjusted operating profit declined ~$1.1M YoY to $11.3M. GAAP EPS fell 57% due to non-cash accounting charges. Self-insured medical costs created a ~$3.2M year-to-date headwind.
Risk Factors
- Self-insured healthcare costs may remain elevated if additional large claims materialize
- Hospital affiliation integration delays or slower-than-expected volume ramp could delay margin recovery
- Increased leverage (credit facility borrowings rose to $221M from $162M year-end 2025) limits financial flexibility
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 5 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0000885978-26-000045 |
| Document: form8-k.htm | 0000885978-26-000045 |
| Document: 0000885978-26-000045-index-headers.html | 0000885978-26-000045 |
| Document: 0000885978-26-000045-index.html | 0000885978-26-000045 |
| Document: 0000885978-26-000045.txt | 0000885978-26-000045 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 13, 2026 13d ago | SC 13G | $85.44 $87.02 | ▲ +1.85% | ▲ +3.00% | $88.65 (+3.76%) |
Aug 10, 2026 11w ago | 8-K | $81.67 $78.21 | ▼ −4.24% | ▼ −3.83% | $88.65 (+8.55%) |
May 6, 2026 24w ago | 8-K | $59.00 $60.14 | ▼ −1.93% | ▼ −0.43% | $88.65 (−50.25%) |
Apr 15, 2026 27w ago | 8-K | $78.18 $74.76 | ▼ −4.37% | ▼ −5.36% | $88.65 (+13.39%) |
Feb 26, 2026 34w ago | 8-K | $78.87 $82.14 | ▲ +4.15% | ▲ +5.27% | $88.65 (+12.40%) |
US Market Status
Subscribe to SecBot
Get Real-Time SEC Filing Intelligence
Comprehensive SEC filing analysis delivered the moment filings hit EDGAR. Sentiment scoring, impact analysis, and actionable insights for every material event.
Create a free account Live analysis, Telegram alerts, watchlists and the MCP server for subscribers