At a glance
US Physicalrapy Inc is worth $1.27B, about 60 times its fiscal 2025 earnings. Revenue grew 16.3% to $781.0M in fiscal 2025, with 5.1% kept as profit; over 5 years it has grown 13.0% a year. It pays a 2.14% dividend yield, raised every year for at least 5 years, and returned $123.7M to shareholders in dividends and buybacks over FY2021–FY2025. The stock returned −2.7% over the past year with dividends reinvested and −2.2% a year over five years, against +11.5% and +11.7% for the S&P 500. At its worst it fell 64.1% in the 2020 crash (S&P 500: 33.7%) and 42.5% in the 2022 bear market (S&P 500: 24.5%).
The business in plain English
U.S. Physical Therapy (USPH), based in Houston, runs outpatient clinics offering physical, occupational and speech therapy, plus home-care therapy. Clinics treat patients before and after surgery, people with orthopedic problems or sports injuries, and injured workers. It owned or managed 780 clinics in 44 states on December 31, 2025, with many in Texas, Tennessee and Michigan. Clinic business comes mainly from local doctors' referrals. Clinics generally charge per procedure. They are paid by managed care plans, commercial insurers, Medicare, Medicaid and workers' compensation insurers.
Most clinics sit in partnerships. USPH usually owns 65% to 75%, and a local physical therapist owns the rest and runs the practice, sharing in its profits. USPH supplies billing, payroll, insurer contracts and other back-office support. It grows by acquiring practices, such as a 50% stake in a 50-clinic group in October 2024, and by opening satellite clinics within existing partnerships. It also earns fees managing 34 practices owned by hospitals or physicians.
Physical therapy operations earned $666.6 million, or 85.4% of 2025 revenue of $781.0 million. The other $114.4 million (14.6%) came from industrial injury prevention, which places specialists on-site to prevent and treat injuries, test new hires after job offers, and assess workstations to reduce strain. Most of this work is paid for directly by employers, including Fortune 500 companies.
Price history
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USPH -2.7% over the year to Oct 28, 2026, total return with dividends reinvested.
How it makes money
By product or service
| Net Patient Revenues | $650.4M | 83.3% |
| Other Revenues Including Management Contract Revenues and Industrial Injury Prevention Services Revenues | $130.6M | 16.7% |
By business segment
| Physical Therapy Operations | $666.6M | 85.4% |
| Industrial Injury Prevention Services Revenues | $114.4M | 14.6% |
Latest results
- In Q2 FY2026 (ended Jun 30, 2026), revenue was $214.1M, up 8.5% from a year earlier, and net income was $9.9M (-20.1%).
- For fiscal 2025, revenue was $781.0M (+16.3% year over year; +13.0% a year from FY2020 to FY2025) with a 5.1% net margin.
Financial health check
| Revenue growth a year (FY2020–FY2025) | +13.0% good |
|---|---|
| Operating margin | 11.1% watch |
| Free cash flow margin | 7.8% watch |
| Return on equity (FY2025) | 8.3% watch |
| Return on assets (FY2025) | 3.3% watch |
| Net cash (cash minus debt) | $-195.1M weak |
| Fiscal year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2020 | $423.0M | $35.2M | $92.4M |
| FY2021 | $495.0M | $40.8M | $68.2M |
| FY2022 | $553.1M | $32.2M | $50.3M |
| FY2023 | $604.8M | $28.2M | $72.7M |
| FY2024 | $671.3M | $31.4M | $65.8M |
| FY2025 | $781.0M | $39.6M | $61.0M |
Valuation snapshot
| Market value | $1.27B |
|---|---|
| P/E ratio | 60.1 |
| Dividend yield | 2.14% |
Rank among 1514 US companies
Market value at each year end
US Physicalrapy’s market value went from $879.0M at the end of 2016 to $1.27B on Oct 28, 2026, up 45%; since the end of 2025 it is up 7%.
Show as a table
| Year end | Market value | Change |
|---|---|---|
| Oct 28, 2026 | $1.27B | +7.2% |
| 2025 | $1.19B | -11.3% |
| 2024 | $1.34B | -4.1% |
| 2023 | $1.40B | +32.5% |
| 2022 | $1.05B | -14.6% |
| 2021 | $1.23B | -20.2% |
| 2020 | $1.55B | +5.8% |
| 2019 | $1.46B | +12.5% |
| 2018 | $1.30B | +42.9% |
| 2017 | $908.4M | +3.3% |
| 2016 | $879.0M |
Price behavior
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | |
|---|---|---|---|---|---|
| USPH price data to Oct 28, 2026 | +11.4% | -2.7% | +2.6% | -2.2% | +5.7% |
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | +11.4% |
| 2025 | -9.9% |
| 2024 | -3.0% |
| 2023 | +17.0% |
| 2022 | -13.7% |
| 2021 | -19.5% |
| 2020 | +5.6% |
| 2019 | +12.8% |
| 2018 | +43.1% |
| 2017 | +4.2% |
| 2016 | +32.3% |
| 2015 | +29.5% |
| 2014 | +20.7% |
| 2013 | +29.9% |
| 2012 | +44.2% |
| 2011 | +0.8% |
| 2010 | +17.1% |
| 2009 | +27.0% |
| 2008 | -7.2% |
| 2007 | +17.3% |
| 2006 | -33.7% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Lost 48.3% over that stretch · deepest drop along the way 64.7%, back to its old high 21.6 months after the low |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 56.9% over that stretch · deepest drop along the way 64.1%, back to its old high 10.3 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 20.9% over that stretch · deepest drop along the way 42.5%, not recovered by the end of the data |
Insider activity
Form 4 filings from 2025-10-31 to 2026-10-31 (25 read): 4 open-market purchases ($49K) and 5 sales ($499K).
| Date | Insider | Type | Value |
|---|---|---|---|
| Mar 6, 2026 | Richard Binstein EVP Gen'l Counsel & Secretary | sell | $245K |
| Mar 6, 2026 | Graham D. Reeve COO | sell | $149K |
| Nov 24, 2025 | Graham D. Reeve COO | sell | $53K |
| Mar 11, 2026 | Graham D. Reeve COO | sell | $52K |
| Jun 8, 2026 | Peter Francis Minan Director | buy | $31K |
Who owns it
Large shareholders (13G filings)
| BlackRock, Inc. | 14.2% | Jun 30, 2025 |
| Copeland Capital Management, LLC | 6.3% | Sep 30, 2026 |
| Kayne Anderson Rudnick Investment Management, LLC | 5.6% | Jun 30, 2026 |
| Copeland Capital Management | 5.53% | Jun 30, 2026 |
| BAHL & GAYNOR INC | 5.1% | Jan 15, 2026 |
| Vanguard Capital Management | 4.82% | Sep 30, 2026 |
| Morgan Stanley | 3.9% | Jun 30, 2026 |
ETFs with the most weight in USPH
| TXSS Texas Capital Texas Small Cap Equity Index ETF | 1.53% |
| SMIG Bahl & Gaynor Small/Mid Cap Income Growth ETF | 1.22% |
| XHS SPDR S&P Health Care Services ETF | 1.06% |
| ABCS Alpha Blue Capital US Small-Mid Cap Dynamic ETF | 0.37% |
| IHF iShares U.S. Healthcare Providers ETF | 0.16% |
| JPSE JPMorgan Diversified Return U.S. Small Cap Equity ETF | 0.16% |
| DES WisdomTree U.S. SmallCap Dividend Fund | 0.13% |
| SMLV SPDR SSGA US Small Cap Low Volatility Index ETF | 0.12% |
What could go wrong
- Partner exit rights can demand cash. Local therapist partners hold minority stakes with put rights. These let them require USPH to purchase their stake, usually when they leave, at a set multiple of earnings. The rights never expire.
- Medicare pay rates may lag costs. Medicare provided about $213.5 million of patient revenue in 2025. Its rates change often and may not cover costs. The company expected about a 1.75% rate increase for 2026.
- Audits can claw back past payments. Medicare and Medicaid can audit claims and take money back if paperwork is incomplete or care is judged not medically necessary. Errors can bring fines or exclusion from these programs.
- Employers can end injury-prevention contracts. The industrial injury prevention segment, 14.6% of 2025 revenue, depends on contracts with employers, including Fortune 500 companies. Clients can end these relationships, which could cut revenue.
- Growth depends on deals and debt. The strategy relies on acquiring practices, which can disappoint. Total debt was about $220.0 million against $24.9 million of cash and investments as of June 30, 2026.
- Heavy reliance on insurers and government payors. Substantially all revenue comes from third parties: managed care plans, commercial insurers, Medicare, Medicaid and workers' compensation. Lower rates, tighter coverage or slow payments could hurt results.
Recent events
- Major agreement signed; New debt or financial obligation
- Executive or board change
- Major agreement signed; Executive or board change; Other company announcement
- Investor presentation or announcement
- Quarterly results released; Other company announcement
- Other company announcement
- Shareholder vote results
- Investor presentation or announcement
- Quarterly results released; Other company announcement
- Major agreement signed; New debt or financial obligation
For income and retirement investors
U.S. Physical Therapy has raised its regular dividend five years in a row, from $0.32 a share in 2020 to $1.80 in 2025. Most of that rise came in 2021; later raises were small. In 2025, dividends paid equaled about 69% of net income and 45% of free cash flow (cash left after running and investing in the business). On a per-share basis, though, the $1.80 dividend exceeded diluted earnings per share of $1.42. The yield was 2.14% as of October 28, 2026. Buybacks were small, $5.6 million in 2025, and the share count rose about 16% between August 2021 and August 2026.
In past downturns, the stock fell 65% in the 2008 financial crisis, recovering by December 2010, and 64% in the 2020 COVID crash, recovering by January 2021. After a 43% slide in 2022, it had not regained its August 2022 high as of October 28, 2026. Single stocks carry more risk than diversified funds.
Questions investors ask
How does U.S. Physical Therapy make money?
Mostly by treating patients in its clinics. Net patient revenues were $650.4 million, or 83.3% of 2025 revenue of $781.0 million. Clinics bill per procedure and are paid by managed care plans, commercial insurers, Medicare, Medicaid and workers' compensation insurers. The rest comes from management fees from hospital- and physician-owned practices, other on-site services such as athletic trainers for schools, and industrial injury prevention work that employers mostly pay for directly.
Does U.S. Physical Therapy raise its dividend every year?
Yes, for five straight years through 2025. Its regular dividend rose from $0.32 a share in 2020 to $1.46 in 2021, then more slowly to $1.80 in 2025. The yield was 2.14% as of October 28, 2026. A five-year streak is short next to companies with decades of increases, and the 2025 increase, from $1.76 to $1.80, was small. Dividends paid equaled about 45% of 2025 free cash flow.
How many clinics does U.S. Physical Therapy have?
It owned or managed 780 clinics in 44 states on December 31, 2025: 746 owned and 34 managed for hospitals or physicians. Most owned clinics sit in partnerships where USPH holds a majority stake, generally 65% to 75%, and a local physical therapist owns the rest and runs the practice. During 2025 it added 49 clinics and closed or sold 30. These counts exclude its home-care business.
How much of U.S. Physical Therapy's revenue comes from Medicare?
A sizable share. Net patient revenue from Medicare was about $213.5 million in 2025, up from $183.4 million in 2024, out of total 2025 revenue of $781.0 million. Medicare pays under a fee schedule, a government price list for services, that changes often. The company expected those rates to rise about 1.75% for 2026. Medicare can also audit claims and take back past payments, which adds risk.
Is USPH stock expensive?
On 2025 earnings, the shares carry a high valuation. The price-to-earnings ratio, the share price divided by a year's profit per share, was 60.1 as of October 28, 2026, using 2025 diluted earnings of $1.42 a share. That figure fell from $1.84 in 2024, even as revenue grew 16.3% and net income rose 26%. The market value was about $1.27 billion on that date. The share price fell about 11% over the five years to October 28, 2026.