U.S. Physical Therapy’s second quarter saw a strong market reaction, reflecting positive surprise on both revenue and profitability. Management attributed the momentum to robust visit growth, driven by higher patient satisfaction and referrals, and successful execution in its injury prevention segment. CEO Christopher Reading highlighted that the company’s Net Promoter Score reached 93.5, indicating exceptional patient advocacy, while the industrial injury prevention business posted double-digit revenue growth. Operational efficiency initiatives and disciplined cost management also contributed, with average visits per clinic per day hitting a company record.

Is now the time to buy USPH? Find out in our full research report (it’s free).

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From U.S. Physical Therapy’s Q2 Earnings Call

• Brian Gil Tanquilut (Jefferies) asked about demand trends and clinic capacity. CEO Christopher Reading responded that demand remains strong across markets, with staffing investments and new de novo clinics positioned to meet incremental volume.
• Joanna Sylvia Gajuk (Bank of America) inquired about labor costs and turnover. President Eric Williams stated that recent investments in recruitment and mentorship systems have reduced turnover to the lowest level in seven years.
• Joanna Sylvia Gajuk (Bank of America) also asked about the impact of proposed Medicare rate changes. CFO Carey Hendrickson estimated a potential 1% to 1.75% increase in revenue, translating to $2–3 million in annual benefit.
• Jared Phillip Haase (William Blair) questioned the backlog and incremental opportunity in injury prevention. Reading declined to quantify, citing staffing as the key determinant for realizing new contract value.
• Jiten Sanghai (Corre Partners) asked about system capacity and the margin impact of incremental visits. Reading confirmed that clinics are not constrained by physical space and that additional volumes are highly margin accretive.

Catalysts in Upcoming Quarters

In the coming quarters, the StockStory team will be monitoring (1) the pace of new clinic openings and the ability to maintain high visit volumes per clinic, (2) the full-scale rollout and effectiveness of AI-driven documentation and virtual front desk technologies in lowering costs, and (3) the ramp of large new injury prevention contracts. Progress on reimbursement negotiations and continued expansion in higher-rate markets will also be key for sustaining margin improvements.

U.S. Physical Therapy currently trades at $87.49, up from $73.12 just before the earnings. In the wake of this quarter, is it a buy or sell? Find out in our full research report (it’s free).

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