Earnings Per Share

12 Months Ended

Dec. 31, 2025

3. 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 6 Redeemable Non-Controlling Interest), net of tax, charged directly to retained earnings is included in the earnings per basic and diluted share calculation. We compute basic and diluted earnings per common share by dividing net earnings by the respective weighted average number of common shares outstanding for the periods presented.

The table below shows the calculation of basic and diluted earnings for the periods presented. The Company’s improved performance during the twelve months ended December 31, 2025, increased the value of redeemable non-controlling interests by $24.5 million, which reduced earnings per share.

	For the Year Ended
	December 31, 2025			December 31, 2024			December 31, 2023
	(In thousands, except per share data)
Computation of earnings per share - USPH shareholders:
Net income attributable to USPH shareholders	$	39,583		$	31,424		$	28,239
Charges to retained earnings:
Revaluation of redeemable non-controlling interest		(24,521	)		(4,964	)		(13,565	)
Tax effect at statutory rate (federal and state)		6,510			1,268			3,466
	$	21,572		$	27,728		$	18,140

Earnings per share (basic and diluted)	$	1.42		$	1.84		$	1.28

Shares used in computation:
Basic and diluted earnings per share - weighted-average shares		15,175			15,064			14,188