U.S. Physical Therapy, Inc. operates and manages outpatient physical therapy clinics through its subsidiaries. It has two segments: Physical Therapy Operations and Industrial Injury Prevention Services. The company provides pre- and post-operative care and treatment for orthopedic-related disorders, sports-related injuries, preventative care, rehabilitation of injured workers, and neurological-related injuries. It also offers industrial injury prevention services, including onsite injury prevention and rehabilitation, performance optimization, post-offer employment testing, functional capacity evaluations, and ergonomic assessments, delivered by physical therapists and specialized certified athletic trainers for Fortune 500 companies and other clients such as insurers and their contractors. Founded in 1990, the company is based in Houston, Texas.
US Physical Therapy Names Nchacha Etta as CFO Effective September 1
US Physical Therapy announced on August 14 that Nchacha Etta will become its Executive Vice President and Chief Financial Officer, effective September 1, closing a search that began after Jason Curtis stepped in as interim CFO on April 24. Etta most recently served as Executive Vice President and Chief Financial Officer of Omnicell from 2023 to 2025, and previously held CFO roles at Essilor of America, a subsidiary of EssilorLuxottica, and at Johnson & Johnson Vision, after nine years in senior finance roles at The Coca-Cola Company and earlier stops at Microsoft, Eli Lilly, and The Carlyle Group. He inherits a company that grew total net revenue 8.5% to $214.1 million in the second quarter of 2026, closed three acquisitions this year for a combined $37.6 million, and reaffirmed full-year adjusted EBITDA guidance of $102 million to $106 million. Net income attributable to USPH shareholders fell to $9.9 million in the second quarter of 2026 from $12.4 million a year earlier, with EPS dropping to $0.25 from $0.58, while physical therapy margin slipped to 19.5% from 21.2% partly on about 100 basis points of pressure from company-provided health benefit costs. Cash and cash equivalents dropped to $24.9 million as of June 30 from $35.6 million at the end of 2025, and borrowings under the company's credit facility climbed to $221 million from $161.8 million, following an April 14 refinancing into a $450 million, five-year credit facility.
USPH · Capital · Neutral USPH names Nchacha Etta as new CFO effective September 1, closing a search that began after an interim CFO stepped in; a leadership change with no clear directional signal.
U.S. Physical Therapy Bets on Hospital Alliances to Drive Visits, Reimbursement
U.S. Physical Therapy (NYSE:USPH) is pursuing growth through clinic openings, acquisitions, and a newer hospital-alliance strategy that CEO Chris Reading said could expand patient volumes and improve reimbursement. Speaking at an investor event, Reading said the company operates in 45 states with just under 800 locations, with about one-third of business from Medicare and roughly 10% from workers' compensation. The company typically opens 25 to 30 clinics organically and acquires 30 to 70 annually, often at single-digit multiples of trailing 12-month EBITDA. Reading highlighted a 10-year partnership with NYU Langone that has expanded its New York network to 60 locations, providing higher, more predictable reimbursement through flat per-visit payments. The injury-prevention business, launched in 2017, has grown to about $120 million in revenue and more than $20 million in EBITDA, representing roughly 15% of company revenue with margins about twice those of the physical therapy segment. U.S. Physical Therapy had approximately $220 million in debt and expects EBITDA of more than $100 million for the year.
Outpatient and Specialty Care Stocks Post Strong Q2 Results
Outpatient and specialty care stocks tracked by the publication reported strong second-quarter results, with revenues beating analysts' consensus estimates by 2.6% and next quarter's revenue guidance coming in 3.3% above expectations. U.S. Physical Therapy reported revenues of $214.1 million, up 8.5% year on year, exceeding expectations by 1.9% but missing EPS estimates significantly. LifeStance Health Group delivered the biggest analyst estimate beat, fastest revenue growth, and highest full-year guidance raise in the group, with revenues of $435.4 million, up 26.1% year on year. DaVita reported revenues of $3.55 billion, up 5.2% year on year, but missed full-year EPS guidance estimates and delivered the weakest performance against analyst estimates among its peers. Surgery Partners reported revenues of $848.9 million, up 2.7% year on year, beating expectations by 2.2%, while agilon health reported revenues of $1.49 billion, up 7.2% year on year, surpassing expectations by 2.8% and delivering the highest guidance raise in the group.
U.S. Physical Therapy announced that Nchacha Etta will become its Executive Vice President and Chief Financial Officer effective September 1, 2026. Etta most recently served as CFO of Omnicell from 2023 to 2025 and previously held CFO roles at Essilor of America and Johnson & Johnson Vision. Jason Curtis, who has been interim CFO since April 24, 2026, will continue as Senior Vice President of Finance and Accounting. CEO Chris Reading said Etta brings a long track record as a public company CFO and will be a strong cultural fit.
U.S. Physical Therapy Q2 2026 Earnings Call Transcript
U.S. Physical Therapy reported second quarter 2026 total net revenue of $214.1 million, an 8.5% increase from the prior year quarter, while net income attributable to shareholders fell to $9.9 million from $12.4 million a year earlier due to higher employee health costs and front-loaded hiring expenses. Physical therapy net revenue grew 8.4% to $182.4 million, driven by record net rates of $107.59 per visit and a 6.6% increase in patient visits to 1,661,694, with visits per clinic per day reaching an all-time high of 33.5. Industrial injury prevention revenue rose 9.1% to $31.7 million, and adjusted EBITDA was relatively flat at $27.0 million compared to $26.9 million in the second quarter of 2025. The company reaffirmed full year 2026 adjusted EBITDA guidance of $102 million to $106 million and noted that it completed the acquisition of a 12-clinic physical therapy practice for a purchase price of $16.4 million, bringing total 2026 acquisition spending to $37.6 million across three acquisitions with combined annualized revenue of approximately $27 million.
Outpatient and specialty care stocks rise 62.3% on average after strong Q1 earnings
The six outpatient and specialty care stocks tracked by this publication reported a strong first quarter, with revenues beating analysts' consensus estimates by 2% and next quarter's revenue guidance coming in 5.9% above expectations. Encompass Health reported revenues of 1.59 billion dollars, up 9% year on year and exceeding estimates by 1.2%, while agilon health posted revenues of 1.42 billion dollars, down 7.3% year on year but beating estimates by 3.2% and delivering the highest guidance raise among its peers. U.S. Physical Therapy, the weakest performer, reported revenues of 198.3 million dollars, up 7.9% year on year and in line with expectations, but significantly missed analysts' EPS estimates. LifeStance Health Group recorded revenues of 403.5 million dollars, up 21.2% year on year and topping estimates by 4.2%, achieving the fastest revenue growth and biggest analyst estimate beat in the group. DaVita reported revenues of 3.42 billion dollars, up 6% year on year and surpassing estimates by 2.1%, with a beat on both EPS and full-year EPS guidance. Since their latest earnings results, share prices of these outpatient and specialty care stocks have risen 62.3% on average.
U.S. Physical Therapy Acquires 12-Clinic Practice, Expanding to 45 States
U.S. Physical Therapy has acquired a twelve-clinic physical therapy practice, effective July 1. The company took a 67% equity interest while the existing owners retained 33%, consistent with its partnership-style acquisition model. The acquired practice generates approximately 112,000 annual patient visits and around $12 million in annual revenue. The deal expands U.S. Physical Therapy's footprint from 44 states to 45 states.
Surgery Partners Q1 revenue beats estimates but issues weakest full-year guidance among peers
Surgery Partners reported first-quarter revenues of $810.9 million, up 4.5% year on year and exceeding analyst expectations by 1.6%, while also beating earnings per share estimates. However, the company delivered the weakest full-year guidance update among the seven outpatient and specialty care stocks tracked, a group that collectively beat revenue consensus by 1.9% and saw next-quarter guidance come in 5.9% above expectations. Shares of Surgery Partners have risen 2.5% since the report to $14.56. The broader peer group has averaged a 50.3% share price gain since their latest earnings, with agilon health surging 309% after posting the highest guidance raise, while U.S. Physical Therapy fell 14% after the weakest performance against analyst estimates.
StockStory Highlights Nasdaq as Cash-Producing Stock to Watch, Flags Middleby and U.S. Physical Therapy as Sells
StockStory identifies Nasdaq as a cash-producing stock worth investigating while recommending investors avoid Middleby and U.S. Physical Therapy. Nasdaq, with a trailing 12-month free cash flow margin of 37%, posted 15% annual revenue growth over the past two years and earnings per share compounding at 14.8% annually, alongside an industry-leading 15.6% return on equity. Middleby, holding a 13.7% free cash flow margin, saw flat earnings per share and diminishing returns on capital, trading at $164.92 per share or 16.5 times forward earnings. U.S. Physical Therapy, with an 8.4% free cash flow margin on $795.5 million in revenue, experienced flat earnings per share over five years and shrinking returns on capital, trading at $66.39 per share or 22.1 times forward earnings.
MIDD · Capital · Negative StockStory recommends avoiding Middleby due to flat earnings per share and diminishing returns on capital.
NDAQ · Capital · Positive StockStory highlights Nasdaq as a cash-producing stock with strong free cash flow margin, revenue growth, and return on equity.
USPH · Capital · Negative StockStory recommends avoiding U.S. Physical Therapy due to flat earnings per share and shrinking returns on capital.
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