Conestoga Capital Advisors Sells U.S. Physical Therapy Position

Conestoga Capital Advisors sold its entire position in U.S. Physical Therapy, Inc. during the second quarter of 2026. In a letter to investors, the asset management firm stated that labor cost pressures, reimbursement uncertainty, and slower margin expansion tempered its long-term return expectations for the company.

Despite the divestment, the firm noted that demand for rehabilitation services remained solid. It also observed that U.S. Physical Therapy management continued to pursue growth through acquisitions and new hospital partnerships. Conestoga concluded that other healthcare investments offered more compelling upside potential than the physical therapy provider.

As of August 6, 2026, U.S. Physical Therapy shares closed at $76.46, giving the company a market capitalization of $1.164 billion.