How does a physical therapy provider achieve record-breaking results in an industry grappling with persistent staffing shortages? US Physical Therapy appears to have found the formula, delivering a second-quarter 2025 report that significantly surpassed analyst expectations and demonstrated remarkable operational strength. The financial metrics tell a compelling story of growth and efficiency.
Operational Excellence Drives Record Profits
The company posted extraordinary results, with earnings climbing 14.08% and revenue exceeding projections by 3.78%. The core physical therapy segment generated $168.3 million in revenue, representing a 17.3% increase compared to the same period last year. The acquisition of Metro contributed substantially to this expansion, adding $19.6 million to the top line.
Even more impressive was the 21.4% surge in adjusted EBITDA, which reached $26.9 million. This performance boosted the company’s margin from 16.4% to 17.5%, demonstrating significantly improved operational efficiency that directly enhanced profitability.
Unprecedented Patient Volume Achieved
Operational metrics revealed perhaps the most surprising development: US Physical Therapy reached a new clinic-level record of 32.7 daily patient visits. This achievement is particularly notable given the industry-wide challenge of clinical staff shortages. Total patient visits increased by 16.7% while the company simultaneously reduced treatment costs per visit. This powerful combination drove the therapy segment’s profit margin to 21.1%—its highest level since the second quarter of 2023.
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Industrial Prevention Services Emerge as Key Growth Engine
Beyond the core business, the industrial injury prevention services division has emerged as a significant growth driver. This segment generated $56.5 million in revenue during the first half of 2025, with a gross profit of $12.0 million. The second quarter saw particularly dynamic organic growth in this division, with revenue expanding by 18.4% and profits growing by 21.8%.
Revised Outlook from Analysts
The outstanding quarterly performance has prompted market experts to reconsider their projections. The company itself has raised its full-year 2025 earnings guidance. While third-quarter estimates were slightly adjusted downward from $0.70 to $0.68 per share, at least one analyst now anticipates full-year earnings of $2.45 per share. The expected EPS growth rate for the coming year stands at a solid 9.74%.
Shareholder-Friendly Initiatives
Management is backing its optimistic outlook with concrete action. On August 5, 2025, the company authorized a $25 million share repurchase program extending through the end of 2026. This initiative signals confidence in future prospects and is designed to provide additional support for the stock price.
The market has already responded positively to these developments, with shares advancing 17.5% over the past four weeks. Whether this momentum can be sustained will depend on the company’s ability to consistently exceed expectations moving forward, or if the strong quarterly results have already been fully priced into the stock.
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