U.S. Physical Therapy

Q2 FY2026 EarningsQ2 FY26 results were mixed relative to consensus: revenue of $214.1M beat the $211.4M estimate by 1.3%, driven by an 8.5% YoY increase in physical therapy and IIP services. However, GAAP EPS of $0.25 significantly missed the $0.78 mean consensus, primarily due to higher-than-expected revaluations of redeemable non-controlling interests. Physical therapy margins fell to 19.5% (vs. 20.8% expected) due to a ~100 bps headwind from health benefit costs. Management reaffirmed FY26 Adjusted EBITDA guidance of $102M–$106M, in-line with current market trajectories.