Surgery Partners, Inc. Announces Third Quarter 2025 Results
Surgery Partners (NASDAQ:SGRY) reported third quarter 2025 results for the period ended September 30, 2025. Revenue was $821.5 million, up 6.6% YoY; same-facility revenue rose 6.3%. Adjusted EBITDA was $136.4 million, up 6.1% YoY, while net loss attributable was $22.7 million. Year-to-date revenue was $2,423.7 million, up 7.7%, with YTD Adjusted EBITDA of $369.3 million. Liquidity included $203.4 million cash and $405.9 million revolver capacity. Leverage was ~4.2x net debt/EBITDA and 4.6x consolidated debt/Adj EBITDA. Full-year 2025 guidance: $3.275–3.30 billion revenue and $535–540 million Adjusted EBITDA.
Management noted softer-than-expected volume and payor mix and delayed capital deployment as drivers of a prudent fourth-quarter outlook.
Surgery Partners (NASDAQ:SGRY) ha riportato i risultati del terzo trimestre 2025 per il periodo terminato il 30 settembre 2025. Ricavi erano 821,5 milioni di dollari, in aumento del 6,6% YoY; i ricavi nello stesso impianto sono aumentati del 6,3%. EBITDA rettificato era di 136,4 milioni di dollari, in crescita del 6,1% YoY, mentre la perdita netta attribuibile era di 22,7 milioni di dollari. I ricavi dall'inizio dell'anno erano di 2.423,7 milioni di dollari, in aumento del 7,7%, con l'EBITDA rettificato YTD di 369,3 milioni. La liquidità comprende 203,4 milioni di dollari in cassa e 405,9 milioni di capacità revolver. La leva era di circa 4,2x debito netto/EBITDA e 4,6x debito consolidato/Adj EBITDA. La guidance per l'intero 2025: 3,275–3,30 miliardi di ricavi e 535–540 milioni di EBITDA rettificato.
La direzione ha osservato volumi meno forti del previsto e una composizione dei pagatori meno favorevole e un ritardo nel capitale investito come fattori che guidano una proiezione prudente per il quarto trimestre.
Surgery Partners (NASDAQ:SGRY) informó los resultados del tercer trimestre de 2025 para el periodo finalizado el 30 de septiembre de 2025. Los ingresos fueron de 821,5 millones de dólares, con un aumento del 6,6% interanual; los ingresos por la misma instalación aumentaron un 6,3%. EBITDA ajustado fue de 136,4 millones de dólares, un 6,1% interanual más, mientras que la pérdida neta atribuible fue de 22,7 millones de dólares. Los ingresos acumulados al año fueron de 2.423,7 millones de dólares, un 7,7% aumento, con el EBITDA ajustado YTD de 369,3 millones. La liquidez incluyó 203,4 millones de dólares en caja y 405,9 millones de capacidad de revolver. El apalancamiento fue aproximadamente 4,2x deuda neta/EBITDA y 4,6x deuda consolidada/Adj EBITDA. La guía para todo 2025: 3,275–3,30 mil millones de ingresos y 535–540 millones de EBITDA ajustado.
La gerencia señaló que el volumen más débil de lo esperado y una mezcla de pagadores menos favorable, junto con un retraso en la inversión de capital, fueron impulsores de un prudente panorama para el cuarto trimestre.
Surgery Partners (NASDAQ:SGRY)는 2025년 9월 30일로 종료되는 기간에 대한 2025년 3분기 실적을 발표했습니다. 매출은 8억 2,150만 달러로 전년 대비 6.6% 증가; 동일 시설 매출은 6.3% 증가했습니다. 조정 EBITDA는 1억 3,640만 달러로 전년 대비 6.1% 증가, 순손실은 2270만 달러였습니다. 연간 누적 매출은 24억 2,370만 달러로 7.7% 증가했고, YTD 조정 EBITDA는 369.3만 달러였습니다. 유동성에는 2억 340만 달러의 현금과 4억 59만 달러의 가용 Revolver 용량이 포함되었습니다. 레버리지는 부채 순 EBITDA 대비 약 4.2x 및 결합 부채/조정 EBITDA 대비 4.6x였습니다. 2025년 연간 가이던스는 32.75–33.0억 달러의 매출과 5.35–5.40억 달러의 조정 EBITDA입니다.
경영진은 4분기에 보수적인 전망의 원인으로 예상을 밑도는 볼륨과 원보험자 구성의 악화 및 자본 배치의 지연을 지적했습니다.
Surgery Partners (NASDAQ:SGRY) a publié les résultats du troisième trimestre 2025 pour la période se terminant le 30 septembre 2025. Le chiffre d'affaires était de 821,5 millions de dollars, en hausse de 6,6 % sur un an; les revenus dans les mêmes établissements ont augmenté de 6,3 %. EBITDA ajusté était de 136,4 millions de dollars, en hausse de 6,1 % sur un an, tandis que la perte nette attribuable était de 22,7 millions de dollars. Le chiffre d'affaires cumulatif à ce jour était de 2 423,7 millions de dollars, en hausse de 7,7 %, avec un EBITDA ajusté YTD de 369,3 millions de dollars. La liquidité incluait 203,4 millions de dollars en cash et 405,9 millions de capacité revolver. Le levier était d’environ 4,2x net debt/EBITDA et 4,6x debt consolidé/Adj EBITDA. La guidance pour l’ensemble de 2025: 3,275–3,30 milliards de revenus et 535–540 millions d’EBITDA ajusté.
La direction a noté que des volumes plus faibles que prévu et une répartition des payeurs moins favorable, ainsi qu’un déploiement de capital retardé, expliquent une perspective prudente pour le quatrième trimestre.
Surgery Partners (NASDAQ:SGRY) hat die Ergebnisse des dritten Quartals 2025 für den Zeitraum zum 30. September 2025 gemeldet. Umsatz betrug 821,5 Mio. USD, ein Anstieg um 6,6% YoY; Umsatz auf derselben Einrichtung stieg um 6,3%. Bereinigtes EBITDA betrug 136,4 Mio. USD, ein Anstieg um 6,1% YoY, während der Nettogewinn zuzuordnen −22,7 Mio. USD war. Der Umsatz im Jahresvergleich betrug 2.423,7 Mio. USD, ein Anstieg um 7,7%, mit einem YTD bereinigten EBITDA von 369,3 Mio. USD. Liquidität umfasste 203,4 Mio. USD an Bargeld und 405,9 Mio. USD revolver-Kapazität. Die Verschuldung lag bei etwa 4,2x Nettoschulden/EBITDA und 4,6x konsolidierte Schulden/Adj EBITDA. Die Gesamtausblick-Guidance für 2025: 3,275–3,30 Milliarden Umsatz und 535–540 Millionen bereinigtes EBITDA.
Das Management verwies auf einen geringeren als erwarteteten Volumen- und Payor-Mix sowie auf verzögerten Kapitaleinsatz als Treiber für eine vorsichtige Aussicht für das vierte Quartal.
Surgery Partners (NASDAQ:SGRY) أوردت نتائج الربع الثالث من عام 2025 للفترة المنتهية في 30 سبتمبر 2025. الإيرادات كانت 821.5 مليون دولار، بارتفاع 6.6% على أساس سنوي; ارتفع إيرادات المنشأة نفسها 6.3%. EBITDA المعدل كان 136.4 مليون دولار، بارتفاع 6.1% على أساس سنوي، بينما كان صافي الخسائر العائد إلى المساهمين 22.7 مليون دولار. الإيرادات حتى تاريخه كانت 2,423.7 مليون دولار، بارتفاع 7.7%، مع EBITDA المعدل حتى تاريخ اليوم (YTD) قدره 369.3 مليون دولار. السيولة شملت 203.4 مليون دولار نقداً و405.9 مليون قدرة ائتمان Revolver. الرفع المالي كان نحو 4.2x صافي الدين/EBITDA و 4.6x الدين الموحد/Adj EBITDA. التوجيه للسنة الكاملة 2025: 3.275–3.30 مليار دولار من الإيرادات و 535–540 مليون دولار من EBITDA المعدل.
أشارت الإدارة إلى أن حجمًا أقرب من المتوقع ومزيج المدفوعات الأقل فائدة وتأخر نشر رأس المال هي عوامل تقود توقعًا حذرًا للربع الرابع.
- Revenue +6.6% YoY to $821.5 million in Q3 2025
- Adjusted EBITDA +6.1% YoY to $136.4 million in Q3 2025
- Same-facility cases +3.4% in Q3 2025
- Net loss attributable of $22.7 million in Q3 2025
- Net debt to EBITDA approximately 4.2x at quarter end
- Year-to-date operating cash flow down to $170.9 million from $188.7 million
Insights
Surgery Partners reported modest top‑line and adjusted EBITDA growth but remains loss-making with leverage elevated; Q4 guidance and leverage are key.
The company grew third‑quarter revenue to
Key dependencies and risks center on leverage and cash flow. The company reports total net debt to EBITDA near
Practical items to watch over the next few months include the company’s fourth‑quarter execution versus the revised full‑year guidance of
BRENTWOOD, Tenn., Nov. 10, 2025 (GLOBE NEWSWIRE) -- Surgery Partners, Inc. (NASDAQ:SGRY) (“Surgery Partners” or the “Company”), a leading short-stay surgical facility owner and operator, today announced results for the third quarter ended September 30, 2025.
Third Quarter 2025 Financial Highlights
(All comparisons are year-over-year unless otherwise noted)
- Revenue increased
6.6% for the third quarter- Same-facility revenues increased
6.3% for the third quarter
- Same-facility revenues increased
- Surgical cases increased
2.1% for the third quarter- Same-facility cases increased
3.4% for the third quarter
- Same-facility cases increased
- Net loss attributable to Surgery Partners, Inc. was
$22.7 million for the third quarter- Adjusted EBITDA increased
6.1% to$136.4 million for the third quarter
- Adjusted EBITDA increased
2025 Guidance
- Full year 2025 revenue and Adjusted EBITDA guidance to be in the range of
$3.27 5 billion to$3.30 billion and$535 million to$540 million , respectively
Eric Evans, Chief Executive Officer, stated, “We are proud to report another quarter of solid execution, with revenue and Adjusted EBITDA growth reflecting continued progress in line with our long-term growth algorithm. The continued strength in orthopedic procedures underpinning our topline growth reinforces our leading positioning within the industry, and we remain committed to operational excellence and disciplined capital deployment to maximize performance of our portfolio. We also continue to evaluate our M&A pipeline and portfolio optimization opportunities and remain encouraged by the multiple levers available to unlock value and drive sustained success.”
Dave Doherty, Chief Financial Officer, commented, “Our third quarter performance demonstrates the resilience of our business model and the discipline of our team. Considering that volume and payor mix trends were softer than anticipated, coupled with this year's delayed cadence of capital deployment activities, we have revised our full-year guidance to reflect a prudent approach to the fourth quarter. We remain confident in the strength of our platform, our long-term growth algorithm, and our ability to deliver long-term shareholder value.”
Third Quarter 2025 Results
Revenues for the third quarter of 2025 increased
Year-to-Date 2025 Results
Revenues year-to-date 2025 increased
Liquidity
Surgery Partners had cash and cash equivalents of
Year-to-date, operating cash flows were
The Company’s ratio of total net debt to EBITDA, as calculated under the Company’s credit agreement, was approximately 4.2x at the end of the third quarter of 2025. Leverage calculated using consolidated debt from our balance sheet divided by Adjusted EBITDA, before reducing it for NCI, was 4.6x times.
Conference Call Information
Surgery Partners will hold a conference call today, November 10, 2025 at 8:30 a.m. (Eastern Time). The conference call can be accessed live over the phone by dialing 1-877-451-6152, or for international callers, 1-201-389-0879. A replay will be available three hours after the call and can be accessed by dialing 1-844-512-2921, or for international callers, 1-412-317-6671. The passcode for the live call and the replay is 13756022. The replay will be available until November 24, 2025.
Interested investors and other parties may also listen to a simultaneous webcast of the conference call by logging onto the Investor Relations section of the Company's website at www.surgerypartners.com. The replay will also be available on this same website for a limited time following the call.
To learn more about Surgery Partners, please visit the Company's website at www.surgerypartners.com. Surgery Partners uses its website as a channel of distribution for material Company information. Financial and other material information regarding Surgery Partners is routinely posted on the Company's website and is readily accessible.
About Surgery Partners
Headquartered in Brentwood, Tennessee, Surgery Partners is a leading healthcare services company with a differentiated outpatient delivery model focused on providing high quality, cost effective solutions for surgical and related ancillary care in support of both patients and physicians. Founded in 2004, Surgery Partners is one of the largest and fastest growing surgical services businesses in the country, with more than 200 locations in 30 states, including ambulatory surgery centers, surgical hospitals, multi-specialty physician practices and urgent care facilities. For additional information, visit www.surgerypartners.com.
Forward-Looking Statements
This press release contains forward-looking statements, including those regarding growth, our anticipated operating results for future periods and other similar statements. These statements can be identified by the use of words such as "believes," "anticipates," "expects," "intends," "plans," "continues," "estimates," "predicts," "projects," "forecasts," "may," "could," and similar expressions. All forward-looking statements are based on current expectations and beliefs as of the date of this release and are subject to risks, uncertainties and other factors that may cause actual results to differ materially from the expectations discussed in, or implied by, the forward-looking statements. Many of these factors are beyond our ability to control or predict including, without limitation, reductions in payments from government health care programs and private insurance payors, such as health maintenance organizations, preferred provider organizations, and other managed care organizations and employers; our ability to contract with private insurance payors; changes in our payor mix or surgical case mix; failure to maintain or develop relationships with physicians on beneficial or favorable terms, or at all; the impact of payor controls designed to reduce the number of surgical procedures; our efforts to integrate operations of acquired or developed businesses and surgical facilities, attract new physician partners, or acquire additional surgical facilities; supply chain issues, including shortages or quality control issues with surgery-related products, equipment and medical supplies; competition for physicians, nurses, strategic relationships, acquisitions and managed care contracts; our ability to attract and retain qualified health care professionals; our ability to enforce non-compete restrictions against our physicians; our ability to manage material liabilities whether known or unknown incurred as a result of acquiring or operating surgical facilities; the impact of future legislation and other health care regulatory reform actions, and the effect of that legislation and other regulatory actions on our business; our ability to comply with current health care laws and regulations; the outcome of legal and regulatory proceedings that have been or may be brought against us; the impact of cybersecurity attacks or intrusions, changes in the regulatory, economic and other conditions of the states where our surgical facilities are located; our indebtedness; the social and economic impact of a pandemic, epidemic or outbreak of a contagious disease on our business; and the risks and uncertainties identified and discussed from time to time in the Company’s reports filed with the SEC, including in Item 1A under the heading "Risk Factors" in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024 and other reports filed with the SEC. Except as required by law, the Company undertakes no obligation to revise or update publicly any forward-looking statements to reflect events or circumstances after the date of this report, or to reflect the occurrence of unanticipated events or circumstances.
Use of Non-GAAP Financial Measures
In addition to the results prepared in accordance with generally accepted accounting principles in the United States ("GAAP") provided throughout this press release, Surgery Partners has presented the following non-GAAP financial measures: Adjusted net income (loss) attributable to common stockholders, Adjusted net income (loss) per share attributable to common stockholders, Adjusted EBITDA, and Adjusted EBITDA related to unconsolidated affiliates, which exclude various items detailed in the "Reconciliation of Non-GAAP Financial Measures" below.
These non-GAAP financial measures are not intended to replace financial performance measures determined in accordance with GAAP. Rather, they are presented as supplemental measures of the Company's performance that management believes may enhance the evaluation of the Company's ongoing operating results. These non-GAAP financial measures are not presented in accordance with GAAP, and the Company’s computation of these non-GAAP financial measures may vary from similar measures used by other companies. These measures have limitations as an analytical tool and should not be considered in isolation or as a substitute or alternative to revenue, net income or loss, operating income or loss, cash flows from operating activities, total indebtedness or any other measures of operating performance, liquidity or indebtedness derived in accordance with GAAP.
| SURGERY PARTNERS, INC. Selected Consolidated Financial Data (Dollars in millions, except per share amounts, shares in thousands) (Unaudited) | ||||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Revenues | $ | 821.5 | $ | 770.4 | $ | 2,423.7 | $ | 2,249.9 | ||||||||
| Operating expenses: | ||||||||||||||||
| Salaries and benefits | 242.8 | 228.4 | 716.6 | 666.8 | ||||||||||||
| Supplies | 208.9 | 201.4 | 639.7 | 589.9 | ||||||||||||
| Professional and medical fees | 104.0 | 91.0 | 301.4 | 266.0 | ||||||||||||
| Lease expense | 21.5 | 23.9 | 65.2 | 67.5 | ||||||||||||
| Other operating expenses | 49.0 | 48.2 | 148.0 | 147.7 | ||||||||||||
| Cost of revenues | 626.2 | 592.9 | 1,870.9 | 1,737.9 | ||||||||||||
| General and administrative expenses | 22.4 | 29.2 | 94.5 | 102.7 | ||||||||||||
| Depreciation and amortization | 39.5 | 50.2 | 116.1 | 118.7 | ||||||||||||
| Transaction and integration costs | 12.6 | 29.4 | 55.4 | 66.1 | ||||||||||||
| Net loss on disposals, consolidations and deconsolidations | 15.6 | 14.7 | 19.0 | 21.5 | ||||||||||||
| Equity in earnings of unconsolidated affiliates | (5.2 | ) | (5.2 | ) | (16.3 | ) | (12.3 | ) | ||||||||
| Litigation settlements | 5.1 | 0.5 | 7.3 | (0.8 | ) | |||||||||||
| Loss on debt extinguishment | 1.3 | — | 1.3 | 5.1 | ||||||||||||
| Other income, net | (1.7 | ) | (2.2 | ) | (3.8 | ) | (10.7 | ) | ||||||||
| 715.8 | 709.5 | 2,144.4 | 2,028.2 | |||||||||||||
| Operating income | 105.7 | 60.9 | 279.3 | 221.7 | ||||||||||||
| Interest expense, net | (74.9 | ) | (50.0 | ) | (205.0 | ) | (148.8 | ) | ||||||||
| Income before income taxes | 30.8 | 10.9 | 74.3 | 72.9 | ||||||||||||
| Income tax expense | (5.5 | ) | (4.5 | ) | (4.4 | ) | (13.8 | ) | ||||||||
| Net income | 25.3 | 6.4 | 69.9 | 59.1 | ||||||||||||
| Less: Net income attributable to non-controlling interests | (48.0 | ) | (38.1 | ) | (132.8 | ) | (118.7 | ) | ||||||||
| Net loss attributable to Surgery Partners, Inc. | $ | (22.7 | ) | $ | (31.7 | ) | $ | (62.9 | ) | $ | (59.6 | ) | ||||
| Net loss per share attributable to common stockholders | ||||||||||||||||
| Basic | $ | (0.18 | ) | $ | (0.25 | ) | $ | (0.50 | ) | $ | (0.47 | ) | ||||
| Diluted(1) | $ | (0.18 | ) | $ | (0.25 | ) | $ | (0.50 | ) | $ | (0.47 | ) | ||||
| Weighted average common shares outstanding | ||||||||||||||||
| Basic | 127,206 | 126,172 | 126,932 | 126,093 | ||||||||||||
| Diluted(1) | 127,206 | 126,172 | 126,932 | 126,093 | ||||||||||||
(1) The impact of potentially dilutive securities for all periods was not considered because the effect would be anti-dilutive.
| SURGERY PARTNERS, INC. Selected Financial and Operating Data (Dollars in millions, except per case and per share amounts) (Unaudited) | ||||||
| September 30, 2025 | December 31, 2024 | |||||
| Balance Sheet Data (at period end): | ||||||
| Cash and cash equivalents | $ | 203.4 | $ | 269.5 | ||
| Total current assets | 1,102.2 | 1,119.4 | ||||
| Total assets | 7,946.6 | 7,890.0 | ||||
| Current maturities of long-term debt | 103.0 | 101.4 | ||||
| Total current liabilities | 586.0 | 624.4 | ||||
| Long-term debt, less current maturities | 3,460.6 | 3,268.9 | ||||
| Total liabilities | 4,393.6 | 4,254.8 | ||||
| Non-controlling interests—redeemable | 411.0 | 438.8 | ||||
| Total Surgery Partners, Inc. stockholders' equity | 1,729.5 | 1,789.7 | ||||
| Non-controlling interests—non-redeemable | 1,412.5 | 1,406.7 | ||||
| Total stockholders' equity | 3,142.0 | 3,196.4 | ||||
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Cash Flow Data: | ||||||||||||||||
| Net cash provided by (used in): | ||||||||||||||||
| Operating activities | $ | 83.6 | $ | 65.2 | $ | 170.9 | $ | 188.7 | ||||||||
| Investing activities | (46.2 | ) | (49.6 | ) | (120.5 | ) | (376.8 | ) | ||||||||
| Purchases of property and equipment | (19.8 | ) | (20.2 | ) | (65.9 | ) | (68.1 | ) | ||||||||
| Payments for acquisitions, net of cash acquired | (4.6 | ) | (26.6 | ) | (52.6 | ) | (291.2 | ) | ||||||||
| Purchases of equity investments | (9.6 | ) | — | (13.4 | ) | (1.7 | ) | |||||||||
| Financing activities | (84.1 | ) | (7.3 | ) | (116.5 | ) | 214.0 | |||||||||
| Distributions to non-controlling interest holders | (52.5 | ) | (41.7 | ) | (168.8 | ) | (122.4 | ) | ||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Other Data: | ||||||||||||||||
| Number of surgical facilities as of the end of period | 165 | 166 | 165 | 166 | ||||||||||||
| Number of consolidated surgical facilities as of the end of period | 114 | 123 | 114 | 123 | ||||||||||||
| Cases | 166,106 | 162,635 | 499,264 | 482,547 | ||||||||||||
| Revenue per case | $ | 4,946 | $ | 4,737 | $ | 4,855 | $ | 4,663 | ||||||||
| Adjusted EBITDA(1) | $ | 136.4 | $ | 128.6 | $ | 369.3 | $ | 344.4 | ||||||||
| Adjusted EBITDA margin(2) | 16.6 | % | 16.7 | % | 15.2 | % | 15.3 | % | ||||||||
| Adjusted net income per share attributable to common stockholders - Basic(1) | $ | 0.13 | $ | 0.19 | $ | 0.35 | $ | 0.50 | ||||||||
| Adjusted net income per share attributable to common stockholders - Diluted(1) | $ | 0.13 | $ | 0.19 | $ | 0.34 | $ | 0.49 | ||||||||
(1) A reconciliation of these non-GAAP financial measures appears below.
(2) Defined as Adjusted EBITDA as a % of Revenues.
| SURGERY PARTNERS, INC. Supplemental Information (Dollars in millions, except per case amounts) (Unaudited) | ||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||
| Same-facility Information(1): | ||||||||||||||
| Cases | 183,786 | 177,789 | 525,127 | 506,048 | ||||||||||
| Case growth | 3.4 | % | N/A | 3.8 | % | N/A | ||||||||
| Revenue per case | $ | 4,917 | $ | 4,783 | $ | 4,869 | $ | 4,818 | ||||||
| Revenue per case growth | 2.8 | % | N/A | 1.1 | % | N/A | ||||||||
| Number of work days in the period | 64 | 64 | 191 | 192 | ||||||||||
| Case growth (days adjusted) | 3.4 | % | N/A | 4.3 | % | N/A | ||||||||
| Revenue growth (days adjusted) | 6.3 | % | N/A | 5.4 | % | N/A | ||||||||
(1) Same-facility information includes cases and revenues from our consolidated and non-consolidated surgical facilities (excluding facilities acquired in new markets or divested during the current and prior periods).
| SURGERY PARTNERS, INC. Reconciliation of Non-GAAP Financial Measures (Dollars in millions, except per share amounts, shares in thousands) (Unaudited) | ||||||||||||||||
| The following table reconciles Adjusted EBITDA to income before income taxes in the reported consolidated financial information, the most directly comparable GAAP financial measure: | ||||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Income before income taxes | $ | 30.8 | $ | 10.9 | $ | 74.3 | $ | 72.9 | ||||||||
| Net income attributable to non-controlling interests | (48.0 | ) | (38.1 | ) | (132.8 | ) | (118.7 | ) | ||||||||
| Interest expense, net | 74.9 | 50.0 | 205.0 | 148.8 | ||||||||||||
| Depreciation and amortization | 39.5 | 50.2 | 116.1 | 118.7 | ||||||||||||
| Equity-based compensation expense | 2.6 | 7.1 | 17.0 | 27.1 | ||||||||||||
| Transaction and integration costs(1) | 12.6 | 29.4 | 55.4 | 66.1 | ||||||||||||
| De novo start-up costs | 1.7 | 2.1 | 5.4 | 5.1 | ||||||||||||
| Net loss on disposals, consolidations and deconsolidations | 15.6 | 14.7 | 19.0 | 21.5 | ||||||||||||
| Litigation settlements and other litigation costs(2) | 5.4 | 1.6 | 8.6 | 1.5 | ||||||||||||
| Loss on debt extinguishment | 1.3 | — | 1.3 | 5.1 | ||||||||||||
| Other | — | 0.7 | — | (3.7 | ) | |||||||||||
| Adjusted EBITDA(3) | $ | 136.4 | $ | 128.6 | $ | 369.3 | $ | 344.4 | ||||||||
(1) For the three months ended September 30, 2025, this amount includes due diligence, transaction and integration costs related to acquisitions (both completed and in the pipeline) and divested facilities (collectively “M&A costs”) of
For the nine months ended September 30, 2025, this amount includes M&A costs of
(2) This amount includes a litigation settlement loss of
This amount includes a litigation settlement loss of
(3) We use Adjusted EBITDA as a measure of financial performance. Adjusted EBITDA is a key measure used by management to assess operating performance, make business decisions and allocate resources. Non-controlling interests represent the interests of third parties, such as physicians, and in some cases, healthcare systems that own an interest in surgical facilities that we consolidate for financial reporting purposes. We believe that it is helpful to investors to present Adjusted EBITDA as defined above because it excludes the portion of net income attributable to these third-party interests and clarifies for investors our portion of Adjusted EBITDA generated by our surgical facilities and other operations. Adjusted EBITDA is not a measurement of financial performance under GAAP and should not be considered in isolation or as a substitute for net income, operating income or any other measure calculated in accordance with GAAP. The items excluded from Adjusted EBITDA are significant components in understanding and evaluating our financial performance. We believe such adjustments are appropriate, as the magnitude and frequency of such items can vary significantly and are not related to the assessment of normal operating performance. Our calculation of Adjusted EBITDA may not be comparable to similarly titled measures reported by other companies.
The following table provides supplemental information for Adjusted EBITDA related to unconsolidated affiliates:
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||
| Adjusted EBITDA related to unconsolidated affiliates: | |||||||||||
| Management fee revenues(1)(2) | $ | 7.8 | $ | 6.8 | $ | 24.6 | $ | 20.0 | |||
| Equity in earnings of unconsolidated affiliates(2) | 5.2 | 5.2 | 16.3 | 12.3 | |||||||
| Plus: | |||||||||||
| Start-up costs related to unconsolidated de novo surgical facilities(3) | 1.6 | 0.9 | 4.3 | 2.9 | |||||||
| Adjusted EBITDA related to unconsolidated affiliates | $ | 14.6 | $ | 12.9 | $ | 45.2 | $ | 35.2 | |||
(1) Includes management and administrative service fees derived from the non-consolidated facilities that the Company accounts for under the equity method and management of surgical facilities in which it does not own an interest. Management fee revenues are included in Revenues on the Consolidated Statements of Operations.
(2) Included as a component of (loss) income before income taxes in the Adjusted EBITDA reconciliation table above.
(3) Included as a component of de novo start-up costs in the Adjusted EBITDA reconciliation table above.
From time to time, the Company incurs certain non-recurring gains or losses that are normally non-operational in nature and management does not consider relevant in assessing its ongoing operating performance. When significant, Surgery Partners’ management and the Company's Board of Directors typically exclude these gains or losses when evaluating the Company’s operating performance and in certain instances when evaluating performance for incentive compensation purposes. Additionally, management believes that certain investors and equity analysts exclude these or similar items when evaluating the Company’s current or future operating performance and in making informed investment decisions regarding the Company. Accordingly, the Company provides adjusted net income attributable to common stockholders and adjusted net income per share attributable to common stockholders as supplements to the comparable GAAP financial measures. Adjusted net income attributable to common stockholders and adjusted net income per share attributable to common stockholders should not be considered measures of financial performance under GAAP, and the items excluded from such measures are significant components in understanding and assessing financial performance. These measures should not be considered in isolation or as an alternative to the comparable GAAP measures as presented in the consolidated financial statements.
The following table reconciles net income (loss) as reflected in the consolidated statements of operations to adjusted net income attributable to common stockholders used to calculate adjusted net income per share attributable to common stockholders:
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||
| Consolidated Statements of Operations Data: | |||||||||||||||
| Net income | $ | 25.3 | $ | 6.4 | $ | 69.9 | $ | 59.1 | |||||||
| Plus (minus): | |||||||||||||||
| Net income attributable to non-controlling interests | (48.0 | ) | (38.1 | ) | (132.8 | ) | (118.7 | ) | |||||||
| Equity-based compensation expense | 2.6 | 7.1 | 17.0 | 27.1 | |||||||||||
| Transaction and integration costs | 12.6 | 29.4 | 55.4 | 66.1 | |||||||||||
| De novo start-up costs | 1.7 | 2.1 | 5.4 | 5.1 | |||||||||||
| Net loss on disposals, consolidations and deconsolidations | 15.6 | 14.7 | 19.0 | 21.5 | |||||||||||
| Litigation settlements and other litigation costs | 5.4 | 1.6 | 8.6 | 1.5 | |||||||||||
| Loss on debt extinguishment | 1.3 | — | 1.3 | 5.1 | |||||||||||
| Other | — | 0.7 | — | (3.7 | ) | ||||||||||
| Adjusted net income attributable to common stockholders | $ | 16.5 | $ | 23.9 | $ | 43.8 | $ | 63.1 | |||||||
| Adjusted net income per share attributable to common stockholders | |||||||||||||||
| Basic | $ | 0.13 | $ | 0.19 | $ | 0.35 | $ | 0.50 | |||||||
| Diluted | $ | 0.13 | $ | 0.19 | $ | 0.34 | $ | 0.49 | |||||||
| Weighted average common shares outstanding | |||||||||||||||
| Basic | 127,206 | 126,172 | 126,932 | 126,093 | |||||||||||
| Diluted | 128,112 | 127,640 | 127,867 | 127,521 | |||||||||||
Contact
Surgery Partners Investor Relations
(615) 234-8940
IR@surgerypartners.com
FAQ
What were Surgery Partners (SGRY) Q3 2025 revenue and Adjusted EBITDA?
What full-year 2025 guidance did Surgery Partners (SGRY) provide on Nov 10, 2025?
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