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- **Revenue Growth**: 17.8% YoY to $168.1M, driven by 84 new clinics and 18% visit growth
- **Cost Efficiency**: Salaries per visit down $0.40 YoY, operating margin 18.6%
- **Medicare 2026**: 1.5-1.7% rate hike + RTM expansion
- **AI & Automation**: Virtual front desk in 50% of clinics, reducing wait times 30%
- **De Novo Pipeline**: 30-50 new clinics/year, constrained by leadership
- **IIP Outperformance**: 15% revenue growth, 11% EBITDA growth
- **Leverage**: $132M term loan at 4.7%, $26.5M revolver draw

**【CEO Opening Remarks】**
- CEO Christopher Reading highlighted Q3 2025 results, emphasizing 84 new PT facilities (net of closures) and 32.2 average visits per clinic per day, a record high.
- Noted 18% year-over-year revenue growth, driven by acquisitions and organic expansion, with 84% of growth from new locations.
- Discussed Medicare headwinds ($25M profit impact in 2025) but highlighted resilience, including AI-driven documentation and front-desk virtualization initiatives.

**【CFO Financial Commentary】
- CFO Carey Hendrickson reported:
  - Total revenue $168.1M, +17.8% YoY
  - Gross profit up 30% YoY, despite inflation
  - Salaries and related costs per visit down $0.40 YoY
  - Operating margin 18.6%, up 20bps vs. prior year
  - IIP segment: 15% revenue growth, 11% EBITDA growth
- Noted $132M term loan with 4.7% fixed rate and $26.5M revolver draw.

**【Q&A Highlights】**
- **Demand & Labor**: CEO reported 18% visit growth, with 2.2% increase in mature clinics. Labor costs per visit down 1% YoY despite inflation. 84% of staff retained in 2025.
- **Medicare Outlook 2026**: Expected 1.5-1.7% rate increase, with remote therapeutic monitoring (RTM) poised to add $0.50-$1.00/visit. CMS reduced visit thresholds for RTM eligibility.
- **M&A Strategy**: Prioritized IIP (injury prevention) acquisitions due to higher margins (19.6% vs. PT 18.6%). 2026 focus on RTM and AI tools.
- **Home Care Expansion**: Metro (NYC) home care visits +28% YoY, with Northeast Medicare rates 2x national average. Margins offset higher labor costs via scheduling density.
- **De Novo Growth**: Target 30-50 new clinics/year, constrained by leadership availability. 2026 pipeline includes 11 new work comp contracts.
- **Inflation Impact**: Operating costs +1% YoY, best-in-class control in inflationary environment.

U.S. Physical Therapy, Inc. (USPH) Q3 2025 Earnings Call Transcript

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USPH

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