Earnings Per Share

9 Months Ended

Sep. 30, 2025

2. Earnings Per Share

Basic and diluted earnings per share is computed using the two-class method, which is an earnings allocation method that determines earnings per share for common shares and participating securities. The restricted stock the Company grants are participating securities containing non-forfeitable rights to receive dividends. Accordingly, any unvested shares of restricted stock is included in the basic and diluted earnings per share computation. Additionally, in accordance with current accounting guidance, the revaluation of redeemable non-controlling interest (see Note 4, Redeemable Non-Controlling Interest), net of tax, is charged directly to retained earnings and is included in the earnings per basic and diluted share calculation.

The computation of basic and diluted earnings per share are as follows.

	Three Months Ended						Nine Months Ended
	September 30, 2025			September 30, 2024			September 30, 2025			September 30, 2024
Earnings per Share	(In thousands, except per share data)						(In thousands, except per share data)
Computation of earnings per share - USPH shareholders:
Net income attributable to USPH shareholders	$	13,138		$	6,628		$	35,430		$	22,180
Charges to retained earnings:
Revaluation of redeemable non-controlling interest		(7,918	)		(1,097	)		(9,821	)		(3,158	)
Tax effect at statutory rate (federal and state)		2,023			280			2,509			807
	$	7,243		$	5,811		$	28,118		$	19,829

Earnings per share (basic and diluted)	$	0.48		$	0.39		$	1.85		$	1.32

Shares used in computation:
Basic and diluted earnings per share - weighted-average shares		15,204			15,077			15,178			15,055