Joaquin

Joaquin asked about the assumed same-store revenue growth in the 2026 guidance and the specific contribution from recent acquisitions to the 2026 guide.

Answer

Carey Hendrickson, CFO, stated that the company typically does not break out same-store revenue in its guidance but expects a combined 2.5%-3% increase in same-store visits and rates for 2026, driven by Medicare rate increases. Regarding deal contribution, she mentioned that the guidance includes two acquisitions made in 2025 (one PT group and one IIP group) and advised looking at the revenue figures provided in the earnings releases for these items, noting that the IIP business has a higher margin profile.

Joaquin asked about the assumptions for same-store revenues included in the 2026 guidance. He also inquired about the specific contribution from deals (acquisitions) within the 2026 guidance.

Answer

Carey Hendrickson (CFO, U.S. Physical Therapy) stated that the company typically does not break out same-store revenues in guidance but expects visits and rates combined to achieve around a 3% increase for same-store, aiming for 2.5% to 3% given Medicare rate increases. She noted that the 2026 guidance includes two acquisitions made this year (one PT group and one IIP group), advising to refer to the revenue provided in releases for these items and assume a margin, highlighting that the IIP business has a higher margin than normal.