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Globe and Mail
15 hours ago
- Business
- Globe and Mail
Stran & Company Achieves 95.2% Increase in Sales to Approximately $32.6 Million for the Second Quarter of 2025
Reports Positive Net Income for the Three and Six Months Ended June 30, 2025 Executes Share Repurchase Program and Maintains Strong Balance Sheet with Approximately $18.1 Million in Cash, Cash Equivalents, and Investments Conference Call Scheduled for Wednesday, August 13th at 10:00 A.M. ET QUINCY, Mass., Aug. 12, 2025 (GLOBE NEWSWIRE) -- Stran & Company, Inc. ('Stran' or the 'Company') (NASDAQ: SWAG) (NASDAQ: SWAGW), a leading provider of outsourced marketing solutions specializing in promotional products and loyalty incentives, today announced its financial results for the three and six months ended June 30, 2025, and provided a business update. Management will host a conference call at 10:00 a.m. Eastern Time on Wednesday, August 13, 2025. 'We're excited to report a remarkable 95.2% year-over-year increase in sales, reaching approximately $32.6 million for the second quarter of 2025,' commented Andy Shape, Chief Executive Officer of Stran. 'Our gross profit increased by more than 80%, driven by robust organic sales growth of 30.4%. For the first half of 2025, sales climbed by 72.5% to roughly $61.3 million, with gross profit rising 65.6% to approximately $18.4 million. While the August 2024 addition of the Gander Group segment has impacted our overall margin mix, our continued sales momentum and strong financial results underscore Stran's resilience and leadership in the marketplace—even as many industry peers face headwinds.' Mr. Shape continued, 'Our industry achievements were recently recognized by the Advertising Specialty Institute (ASI), which advanced Stran to #23 in its 2025 Counselor Top 40 distributors list, up from #27 last year. This distinction positions us among the largest and most influential promotional products distributors in North America, reflecting our sustained growth, innovative strategies, and unwavering commitment to client success. We're also proud to welcome new board members Mark Adams, Sarah Cummins, and Brian Posner, who bring a wealth of experience across media, private equity, sports, consumer brands, and public company finance. Their leadership significantly enhances our board's strategic perspective and aligns with our vision for continued operational excellence and innovation.' Mr. Shape also stated, 'In addition, following our Combined 2024/2025 Annual Meeting of Stockholders, Stran is now fully compliant with all Nasdaq continued listing requirements, further solidifying our governance foundation as a public company. With a robust balance sheet featuring approximately $18.1 million in cash, cash equivalents, and investments, we remain well-positioned to pursue strategic growth opportunities and invest in long-term value creation. During the quarter, we executed our share repurchase program—acquiring approximately 110,000 shares at an average price of $1.32, for a total investment of about $145,600—demonstrating our confidence in the business and our steadfast commitment to shareholder value.' Mr. Shape concluded, 'As we look ahead, our enhanced board, industry recognition, and disciplined financial strategy have set the stage for continued growth and success. Stran is excited to build on this momentum and deliver even greater value to our clients, team members, and shareholders.' Financial Results for the Three Months ended June 30, 2025 Sales increased 95.2% to approximately $32.6 million for the three months ended June 30, 2025, from approximately $16.7 million for the three months ended June 30, 2024. Sales by the Stran segment (which consists of the Stran business not including the former Gander Group business) increased to approximately $21.8 million for the three months ended June 30, 2025 from approximately $16.7 million for the three months ended June 30, 2024. Sales by our SLS segment (which consists of the former Gander Group business) increased to approximately $10.8 million for the three months ended June 30, 2025 from $0 for the three months ended June 30, 2024. Gross profit increased 80.5% to approximately $9.9 million, or 30.3% of sales, for the three months ended June 30, 2025, from approximately $5.5 million, or 32.8% of sales, for the three months ended June 30, 2024. Gross profit margin decreased to 30.3% for the three months ended June 30, 2025 from 32.8% for the three months ended June 30, 2024 primarily due to the acquisition of the Gander Group business in August 2024, which operates at a lower gross margin than the Stran segment. Operating expenses increased 44.1% to approximately $9.5 million for the three months ended June 30, 2025, from approximately $6.6 million for the three months ended June 30, 2024. As a percentage of sales, operating expenses decreased to 29.1% for the three months ended June 30, 2025, from 39.4% for the three months ended June 30, 2024. Net income for the three months ended June 30, 2025 was approximately $0.6 million, compared to net loss of approximately $(1.0) million for the three months ended June 30, 2024. Financial Results for the Six Months ended June 30, 2025 Sales increased 72.5% to approximately $61.3 million for the six months ended June 30, 2025, from approximately $35.5 million for the six months ended June 30, 2024. Sales by the Stran segment increased to approximately $42.7 million for the six months ended June 30, 2025 from approximately $35.5 million for the six months ended June 30, 2024. Sales by the SLS segment increased to approximately $18.6 million for the six months ended June 30, 2025 from $0 for the six months ended June 30, 2024. Gross profit increased 65.6% to approximately $18.4 million, or 30.0% of sales, for the six months ended June 30, 2025, from approximately $11.1 million, or 31.2% of sales, for the six months ended June 30, 2024. Gross profit margin decreased to 30.0% for the six months ended June 30, 2025 from 31.2% for the six months ended June 30, 2024 primarily due to the acquisition of the Gander Group business in August 2024, which operates at a lower gross margin than the Stran segment. Operating expenses increased 43.8% to approximately $18.5 million for the six months ended June 30, 2025, from approximately $12.9 million for the six months ended June 30, 2024. As a percentage of sales, operating expenses decreased to 30.2% for the six months ended June 30, 2025, from 36.2% for the six months ended June 30, 2024. Net income for the six months ended June 30, 2025 was approximately $0.3 million, compared to net loss of approximately $(1.5) million for the six months ended June 30, 2024. Webcast and Conference Call Management will host a webcast and conference call at 10:00 A.M. Eastern Time on Wednesday, August 13, 2025, to discuss the Company's financial results for the second quarter of 2025 ended June 30, 2025, as well as the Company's corporate progress and other developments. The conference call will be available via telephone by dialing toll free 888-506-0062 for U.S. callers or +1 973-528-0011 for international callers and using entry code: 317692. A webcast of the call may be accessed at or on the company's Investors section of the website: A webcast replay will be available on the Investor Relations section of the Company's website ( through August 13, 2026. A telephone replay of the call will be available approximately one hour following the call, through August 27, 2025, and can be accessed by dialing 877-481-4010 for U.S. callers or +1 919-882-2331 for international callers and entering conference ID: 52808. About Stran For over 30 years, Stran has grown to become a leader in the promotional products industry, specializing in complex marketing programs to help recognize the value of promotional products, branded merchandise, and loyalty incentive programs as a tool to drive awareness, build brands and impact sales. Stran is the chosen promotional programs manager of many Fortune 500 companies, across a variety of industries, to execute their promotional marketing, loyalty and incentive, sponsorship activation, recruitment, retention, and wellness campaigns. Stran provides world-class customer service and utilizes cutting-edge technology, including efficient ordering and logistics technology to provide order processing, warehousing and fulfillment functions. The Company's mission is to develop long-term relationships with its clients, enabling them to connect with both their customers and employees in order to build lasting brand loyalty. Additional information about the Company is available at: Forward Looking Statements This press release contains 'forward-looking statements' that are subject to substantial risks and uncertainties. All statements, other than statements of historical fact, contained in this press release are forward-looking statements. Forward-looking statements contained in this press release may be identified by the use of words such as 'anticipate,' 'believe,' 'contemplate,' 'could,' 'estimate,' 'expect,' 'intend,' 'seek,' 'may,' 'might,' 'plan,' 'potential,' 'predict,' 'project,' 'target,' 'aim,' 'should,' "will' 'would,' or the negative of these words or other similar expressions, although not all forward-looking statements contain these words. Forward-looking statements include, but are not limited to, the Company's expectations regarding synergies from its acquired businesses, its financial position and operating performance, its expectations regarding its business initiatives, the Company's expectations about its operating performance, trends in its business, the effectiveness of its growth strategies, its market opportunities, and demand for its products and services in general. Forward-looking statements are based on the Company's current expectations and are subject to inherent uncertainties, risks and assumptions that are difficult to predict. Further, certain forward-looking statements are based on assumptions as to future events that may not prove to be accurate. These and other risks and uncertainties are described more fully in the section titled 'Risk Factors' in the Company's periodic reports which are filed with the Securities and Exchange Commission. Forward-looking statements contained in this announcement are made as of this date, and the Company undertakes no duty to update such information except as required under applicable law. Contacts: CONSOLIDATED BALANCE SHEETS (in thousands, except share and per share amounts) June 30, 2025 December 31, 2024 (Unaudited) ASSETS CURRENT ASSETS: Cash and cash equivalents $ 13,070 $ 9,358 Investments 4,997 8,856 Accounts receivable, net 22,063 18,092 Accounts receivable - related parties, net 402 573 Inventory 6,736 5,389 Prepaid corporate taxes — 28 Prepaid expenses 2,391 2,308 Deposits 467 423 Other current assets 4 455 Total current assets 50,130 45,482 Property and equipment, net 1,618 1,701 OTHER ASSETS: Intangible assets - customer lists, net 3,934 4,170 Intangible assets - trade name 654 654 Goodwill 2,321 2,321 Other assets 222 23 Right of use assets 2,336 797 Total other assets 9,467 7,965 Total assets $ 61,215 $ 55,148 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Accounts payable and accrued expenses $ 9,513 $ 8,919 Accrued payroll and related 2,044 1,513 Unearned revenue 4,817 4,423 Rewards program liability 9,000 6,000 Sales tax payable 315 353 Corporate taxes payable 9 — Current portion of contingent earn-out liabilities 105 256 Current portion of installment payment liabilities 158 365 Current portion of lease liabilities 661 366 Total current liabilities 26,622 22,195 LONG-TERM LIABILITIES: Long-term contingent earn-out liabilities 455 455 Long-term installment payment liabilities 425 425 Long-term lease liabilities 1,880 432 Total long-term liabilities 2,760 1,312 Total liabilities 29,382 23,507 Commitments and contingencies Preferred stock, $0.0001 par value; 50,000,000 shares authorized, 0 shares issued and outstanding as of June 30, 2025 and December 31, 2024, respectively — — Common stock, $0.0001 par value; 300,000,000 shares authorized, 18,546,461 and 18,598,574 shares issued and outstanding as of June 30, 2025 and December 31, 2024, respectively 2 2 Additional paid-in capital 38,285 38,391 Accumulated deficit (6,492) (6,742) Accumulated other comprehensive income (loss) 38 (10) Total stockholders' equity 31,833 31,641 Total liabilities and stockholders' equity $ 61,215 $ 55,148 For the Three Months Ended June 30, For the Six Months Ended June 30, 2025 2024 2025 2024 SALES Sales $ 32,577 $ 16,693 $ 61,271 $ 35,474 Sales – related parties — — — 46 Total sales 32,577 16,693 61,271 35,520 COST OF SALES: Cost of sales 22,708 11,226 42,920 24,405 Cost of sales - related parties — — — 35 Total cost of sales 22,708 11,226 42,920 24,440 GROSS PROFIT 9,869 5,467 18,351 11,080 OPERATING EXPENSES: General and administrative expenses 9,474 6,575 18,491 12,857 Total operating expenses 9,474 6,575 18,491 12,857 INCOME (LOSS) FROM OPERATIONS 395 (1,108) (140) (1,777) OTHER INCOME: Other income 285 1 280 16 Interest income 77 82 119 175 Realized gain on investments — 3 67 73 Total other income 362 86 466 264 INCOME (LOSS) BEFORE INCOME TAXES 757 (1,022) 326 (1,513) Provision for income taxes 114 3 76 3 NET INCOME (LOSS) $ 643 $ (1,025) $ 250 $ (1,516) NET INCOME (LOSS) PER COMMON SHARE Basic $ 0.03 $ (0.06) $ 0.01 $ (0.08) Diluted $ 0.03 $ (0.06) $ 0.01 $ (0.08) WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING Basic 18,592,339 18,589,086 18,600,373 18,581,957 2025 2024 CASH FLOWS FROM OPERATING ACTIVITIES: Net income (loss) $ 250 $ (1,516) Adjustments to reconcile net income (loss) to net cash provided by operating activities: Depreciation and amortization 521 341 Noncash operating lease expense 537 274 Change in allowance for credit losses 360 (288) Noncash interest accretion 23 72 Stock-based compensation 40 170 Changes in operating assets and liabilities: Accounts receivable, net (4,331) 4,496 Accounts receivable – related parties, net 172 25 Inventory (1,347) 808 Prepaid corporate taxes 29 30 Prepaid expenses (82) 336 Deposits (44) (193) Other assets 252 — Accounts payable and accrued expenses 590 (871) Accrued payroll and related 531 (1,357) Unearned revenue 395 (262) Rewards program liability 3,000 2,475 Sales tax payable (38) (117) Corporate taxes payable 9 — Operating lease liabilities (333) (256) Net cash provided by operating activities 534 4,167 CASH FLOWS FROM INVESTING ACTIVITIES: Additions to property and equipment (202) (364) Proceeds from sale of investments 4,400 4,608 Purchase of investments (493) (3,836) Net cash provided by investing activities 3,705 408 CASH FLOWS FROM FINANCING ACTIVITIES: Payment of contingent earn-out liabilities (151) — Payment of installment payment liabilities (230) (760) Payment for stock repurchase (146) — Net cash used in financing activities (527) (760) NET INCREASE IN CASH 3,712 3,815 CASH AND CASH EQUIVALENTS - BEGINNING 9,358 8,059
Yahoo
4 days ago
- Business
- Yahoo
Victory Capital Holdings Inc (VCTR) Q2 2025 Earnings Call Highlights: Record Asset Growth and ...
Total Client Assets: Increased by 76% quarter-over-quarter, reaching over $300 billion. Quarterly Gross Long-Term Flows: $15.4 billion. Net Outflows: $660 million. Adjusted EBITDA: $179 million, with a margin of 50.8%. Adjusted Net Income with Tax Benefit: $133 million or $1.57 per diluted share. Net Expense Synergies Achieved: $70 million on a run rate basis. Revenue: Increased to $351.2 million, up 60% from the first quarter. Average Assets: $285 billion, 64% higher quarter-over-quarter. Realized Fee Rate: 49.4 basis points. GAAP Operating Margin: 26.8%. Share Repurchase Plan: Increased from $200 million to $500 million. Cash at End of Quarter: $108 million. Net Leverage Ratio: Improved to 1.2 times. Gross Sales: $15.4 billion, representing more than 20% of AUM on an annualized basis. GAAP Expenses: Increased by $125 million. Effective Tax Rate: 32.5% for the quarter, with a normal rate of approximately 25% going forward. Adjusted Net Income Per Diluted Share: Increased to $1.57 from $1.36. Debt-to-Equity Ratio: Improved to 0.39. Interest Coverage Ratio: Nearly 14 times in the period. Warning! GuruFocus has detected 4 Warning Sign with TEM. Release Date: August 08, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Total client assets increased by 76% quarter-over-quarter, reaching a record high of over $300 billion. Adjusted EBITDA was $179 million with a margin of 50.8%, slightly higher than anticipated. Successful acquisition and integration of Amundi US business, enhancing size, scale, and diversification. Launch of new ETFs, including the VictoryShares Pioneer Asset-based income ETF, expanding product range. Board authorized an increase in the share repurchase plan to $500 million, the largest in company history. Negative Points Net outflows were $660 million, despite improvements in long-term flows. GAAP results included $53 million of acquisition-related restructuring and integration costs. Realized fee rate decreased to 49.4 basis points, with expectations to further decrease to 46-47 basis points. Closure of NewBridge, Sofas, and THB investment franchises, managing less than $1 billion of AUM. Ongoing integration costs and noncash compensation expenses related to the Amundi transaction. Q & A Highlights Q: Can you provide more details on the nonrecurring expenses and how they will impact future quarters? A: Michael Policarpo, President, CFO, and CAO, explained that in Q2, $53 million of acquisition-related costs were incurred, with $26 million being onetime deal-related expenses. Additionally, $14 million was spent on extracting synergies, with a total of $30 million expected. A $13 million noncash compensation expense related to a deferred comp plan will run off over the next few years. These costs will decline over the next several quarters. Q: How is the fixed income product set performing given current market conditions? A: David Brown, Chairman and CEO, expressed confidence in their fixed income asset class, highlighting their diverse product offerings across active ETFs, UCITS, and institutional accounts. He emphasized the strong performance of their two franchises, Victory Income Investors and Pioneer Investments, and sees fixed income as a key growth area. Q: What are the expectations for non-US distribution through the Amundi partnership? A: David Brown noted that the partnership with Amundi allows Victory Capital to sell products across Europe and Asia. Pioneer Investments' products are already in Amundi's distribution system, and Victory's institutional products are available globally. They are working on launching registered products outside the US, with significant growth expected as they globalize their business. Q: What is the outlook for organic growth and flows? A: David Brown stated that Victory Capital aims for consistent organic growth, noting improvements in gross flows and investments in distribution. They are expanding their US intermediary and institutional sales efforts and expect to leverage international opportunities through the Amundi partnership to drive future growth. Q: Can you clarify the impact of the onetime revenue realization on margins? A: Michael Policarpo explained that the revenue realization was due to accounting for certain products, including fulcrum fees and annual fees. The impact on margins was minimal due to their variable cost structure, which offsets changes in revenue. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Yahoo
5 days ago
- Business
- Yahoo
Vaisala Corporation: Share Repurchase 8.8.2025
VAISALA CORPORATION STOCK EXCHANGE RELEASE 8.8.2025 Vaisala Corporation: Share Repurchase 8.8.2025 In the Helsinki Stock Exchange Trade date 8.8.2025 Bourse trade Buy Share VAIAS Amount 1 197 Shares Average price/ share 46,9253 EUR Total cost 56 169,58 EUR Vaisala Corporation now holds a total of 134 826 shares including the shares repurchased on 8.8.2025 The share buybacks are executed in compliance with Regulation No. 596/2014 of the European Parliament and Council (MAR) Article 5 and the Commission Delegated Regulation (EU) 2016/1052. On behalf of Vaisala Corporation Nordea Bank Oyj Sami Huttunen Ilari Isomäki More information:Niina Ala-Luopa+358 400 728 957, ir@ Distribution:Nasdaq HelsinkiKey Vaisala is a global leader in measurement instruments and intelligence for climate action. We equip our customers with devices and data to improve resource efficiency, drive energy transition, and care for the safety and well-being of people and societies worldwide. With almost 90 years of innovation and expertise, we employ a team of close to 2,500 experts committed to taking every measure for the planet. Vaisala series A shares are listed on the Nasdaq Helsinki stock exchange. Vaisala 8.8 tradesError in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
5 days ago
- Business
- Yahoo
Dropbox Inc (DBX) Q2 2025 Earnings Call Highlights: Navigating Challenges with Strategic Optimism
Revenue: $626 million, a decline of 1.4% year over year. Constant Currency Revenue: $626 million, a decline of 1.3% year over year. Total ARR: $2.542 billion, down 1.2% year over year. Gross Margin: 82.2%, down 230 basis points from the previous year. Operating Margin: 41.5%, up 560 basis points from the previous year. Net Income: $198 million, up 2% year over year. Diluted EPS: $0.71, an 18% increase year over year. Cash Flow from Operations: $261 million, a 13% increase year over year. Capital Expenditures: $2 million. Unlevered Free Cash Flow: $276 million or $1 per share. Paying Users: 18.13 million, a sequential decline of approximately 34,000 users. Average Revenue Per Paying User (ARPU): $138.32, down from $139.26 in the prior quarter. Share Repurchase: Approximately 14 million shares repurchased, spending approximately $400 million. Cash and Short-term Investments: $955 million. Warning! GuruFocus has detected 3 Warning Signs with DBX. Release Date: August 07, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Dropbox Inc (NASDAQ:DBX) reported revenue ahead of guidance, showcasing strong financial performance. The company achieved a significant operating margin of 41.5%, exceeding expectations. Dropbox Inc (NASDAQ:DBX) is seeing positive early signals with its Dash product, including increased user engagement and adoption. The company has made improvements in user onboarding and retention, leading to higher activation and setup rates. Dropbox Inc (NASDAQ:DBX) is successfully optimizing its outbound sales motion and improving onboarding flows, which is expected to drive further growth. Negative Points Total revenue declined by 1.4% year over year, impacted by strategic decisions related to FormSwift and outbound sales reductions. The company experienced a sequential decline of approximately 34,000 paying users, primarily due to reduced investment in FormSwift. Average revenue per paying user (ARPU) decreased sequentially, influenced by FormSwift and the rollout of the simple plan. Gross margin decreased by 230 basis points year over year due to data center refresh cycle support. Dropbox Inc (NASDAQ:DBX) anticipates a decline of approximately 1.5% in paying users for the full year, with FormSwift contributing to half of this decline. Q & A Highlights Q: Can you discuss the positive early signals and retention metrics observed among early Dash adopters versus existing cohorts? A: Andrew Houston, CEO, explained that the focus has been on building a great product experience. The April launch of features like image and media search has shown double-digit engagement. Key onboarding metrics, such as license provisioning and retention rates, have improved significantly, indicating strong early adoption and retention among new customers. Q: What improvements have been seen due to changes in the cancellation flow? A: Andrew Houston noted that by better articulating the value Dropbox provides, especially during the cancellation process, they have seen improvements in retention. Customers often aren't fully aware of the depth of their usage, and clearer messaging has helped reduce churn. Q: Despite better-than-expected churn, why is the guidance for a 300,000 user decline maintained? A: Timothy Regan, CFO, stated that while FormSwift is performing well, they still expect it to account for roughly half of the 300,000 user decline. The remainder is due to expected near-term down sales across managed sales motions. Positive momentum in retention efforts has contributed to raising full-year guidance. Q: What is the timeline and focus for the self-serve version of Dash, and what are the monetization expectations? A: Andrew Houston mentioned plans to launch a self-serve version of Dash similar to Dropbox 1.0, targeting both new users and existing Dropbox self-serve business accounts. Monetization will involve separate subscriptions for non-FSS users and add-on packages for existing FSS customers. Timothy Regan added that while Dash's contribution to revenue growth will take time, expectations are reflected in current guidance. Q: How is Dropbox navigating API access limitations from partners like Slack? A: Andrew Houston explained that while Slack has changed some APIs, Dropbox maintains access and a good partnership with them. Although some technical adjustments are needed, Dropbox continues to provide value through integrations. Houston emphasized that customer data access is crucial, and Dropbox's ability to integrate deeply could be a competitive advantage for Dash. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Yahoo
5 days ago
- Business
- Yahoo
US Physical Therapy Inc (USPH) Q2 2025 Earnings Call Highlights: Strong Revenue Growth and ...
Revenue: Physical therapy revenues increased by 17.3% to $168.3 million. Gross Profit: Gross profit margin for physical therapy improved to 21.1% from 20.1% in the prior year quarter. Net Income: Operating results were $12.4 million, up from $11 million in the prior year quarter. Adjusted EBITDA: Increased to $26.9 million, up $4.7 million from the prior year quarter. Adjusted Margin: Expanded to 17.5% from 16.4% in the prior year quarter. Clinic Visits: 1,530,263 clinic visits and 28,493 home care visits in the second quarter. Net Rate per Patient Visit: $105.33, slightly down from the first quarter but up from the prior year. Same-Store Sales Growth: Over 1%, slightly below expectations. Number of Clinics: Added over 50 net clinics compared to the prior year period. Cash Position: Ended the quarter with $34.1 million in cash. Share Repurchase Program: Authorized up to $25 million in share repurchases through December 31, 2026. Guidance: Full year 2025 adjusted EBITDA guidance raised to $93 million to $97 million. Warning! GuruFocus has detected 7 Warning Signs with USPH. Release Date: August 07, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points US Physical Therapy Inc (NYSE:USPH) achieved a record average of 32.7 visits per clinic per day, the highest in its history. The company's net promoter score is an impressive 93.5, indicating high patient satisfaction and loyalty. Revenues from the industrial injury prevention (IIP) segment increased by 22.6%, with gross profit up 25.8% compared to the prior year. USPH added over 50 net clinics compared to the prior year period, contributing to a 17.3% increase in physical therapy revenues. The company raised its full-year 2025 adjusted EBITDA guidance to a range of $93 million to $97 million, reflecting strong performance and confidence in future growth. Negative Points USPH faced a significant headwind from Medicare rate reductions, impacting profits by approximately $25 million. Same-store growth in mature facilities was lighter than expected, partly due to staffing constraints in certain markets. The company experienced a slight decrease in net rate per patient visit compared to the first quarter, influenced by a policy change from a major payer in Michigan. Operating costs per visit decreased, but salaries and related costs increased slightly by 0.7% compared to the prior year. The implementation of a new enterprise-wide financial and human resources system will incur ongoing costs through 2026. Q & A Highlights Q: Chris, could you elaborate on the demand for your services and how you're managing costs given the current labor situation? A: Demand is solid across most markets. We're balancing cost control with meeting demand, which involves managing resources efficiently. We're also seeing benefits from cash-based programs that generate additional revenue. Regarding de novo builds, this year is shaping up to be our strongest in terms of new openings, and we're making adjustments in recruiting and residency programs to meet demand. - Christopher Reading, CEO Q: Can you provide more details on your labor management strategies and how they're impacting costs? A: We've made significant investments in systems and resources, resulting in a 25% increase in student clinical rotations and improved applicant tracking. Our mentorship programs are also reducing turnover rates, which are the lowest we've seen in seven years. Additionally, we're using AI tools to improve efficiency in clinical documentation, which is helping with retention. - Eric Williams, COO - East Q: How do you view the recent Medicare rate changes, and what impact do you expect for your company? A: The proposed Medicare rate changes for 2026 are positive, with an expected increase of 1% to 1.75% for us, translating to a $2 to $3 million top-line benefit. While this is a step forward, we continue to advocate for a more sustainable, multi-year plan with CMS. - Carey Hendrickson, CFO Q: Can you discuss the performance and future outlook of your Injury Prevention (IIP) segment? A: The IIP segment is performing ahead of expectations, with strong organic growth and margin expansion. We're focusing on development and identifying good companies for potential acquisitions. The segment's growth is supported by the increasing demand for manufacturing in the U.S., which aligns well with our services. - Christopher Reading, CEO Q: What are your thoughts on participating in virtual PT networks, and how do you see technology impacting your business? A: We've had discussions about providing in-person services to complement virtual offerings, but the effectiveness of such models remains to be seen. We're using technology like Limber to enhance patient care and are exploring broader digital solutions to augment our services. However, we believe that current virtual models may be overreaching in their capabilities. - Christopher Reading, CEO For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
