Overview

• US physical therapy clinic operator's Q1 revenue rose 7.9% yr/yr but missed analyst expectations

• Company posted Q1 net loss per share, compared to profit in prior-year period

• Management reaffirmed full-year adjusted EBITDA guidance, citing hospital alliances and Medicare rate increase

Outlook

• Company reaffirms 2026 adjusted EBITDA guidance of $102 mln to $106 mln

• 2026 guidance includes partial-year impact of Medicare rate increase and new hospital affiliations

• Hospital alliances expected to be accretive to revenue, EBITDA, and margins as integration ramps up

Result Drivers

• PATIENT VOLUME - Co said Q1 physical therapy revenue rose 7.2% yr/yr, driven by a 6.9% increase in patient visits and new clinic additions

• IIP SEGMENT GROWTH - Industrial injury prevention revenue rose 11.8% yr/yr, with an 8.2% same-store increase

• TECHNOLOGY AND PROGRAM INITIATIVES - Co cited rollout of ambient-listening technology, remote therapeutic monitoring, and cash-based program expansion as ongoing operational initiatives

Company press release: ID:nBw7HR2v2a

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 Revenue	Miss	$198.30 mln	$201.007 mln (7 Analysts)
Q1 EPS		-$0.12

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the healthcare facilities & services peer group is "buy"

• Wall Street's median 12-month price target for US Physical Therapy Inc is $102.50, about 39.2% above its May 6 closing price of $73.65

• The stock recently traded at 24 times the next 12-month earnings vs. a P/E of 28 three months ago

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