Revenue up 4.5% as Surgery Partners (SGRY) reaffirms 2026 guidance
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Surgery Partners, Inc. reported first quarter 2026 revenue of $810.9 million, up 4.5% from the prior year, driven by 4.4% same-facility revenue growth on modest 0.6% case growth and a 3.8% increase in revenue per case. Adjusted EBITDA was $102.3 million, slightly below $103.9 million a year earlier, while net loss attributable to Surgery Partners narrowed to $35.9 million, or $(0.28) per basic and diluted share. The company ended March 31, 2026 with $182.3 million of cash and cash equivalents and $666.1 million of available borrowing capacity, with total net debt to EBITDA of roughly 4.3x. Management reaffirmed full-year 2026 guidance for revenue of $3.35–$3.45 billion and Adjusted EBITDA of at least $530 million, implying organic Adjusted EBITDA growth of at least 4.2% versus 2025 normalized levels.
Positive
- None.
Negative
- None.
Insights
Solid Q1 revenue and stable cash flow, but margins soft and growth remains moderate.
Surgery Partners delivered Q1 2026 revenue of $810.9 million, up 4.5% year over year. Same-facility revenue grew 4.4%, combining 0.6% case growth with 3.8% higher revenue per case. This shows continued volume and pricing resilience in its outpatient surgery model.
Profitability was mixed. Adjusted EBITDA slipped to $102.3 million from $103.9 million, compressing margin to 12.6%. Net loss attributable to the company improved slightly to $35.9 million. Cash from operating activities increased to $11.7 million, while liquidity remained strong with $182.3 million of cash and significant revolver capacity.
Management reaffirmed 2026 guidance for revenue of $3.35–$3.45 billion and Adjusted EBITDA of at least $530 million, framing organic Adjusted EBITDA growth of at least 4.2% versus 2025 normalized levels. Actual performance versus this outlook, as reported in future quarters, will indicate how effectively the company manages cost pressures and executes physician recruitment and portfolio optimization initiatives.
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Q1 2026 Revenue: $810.9 million
Q1 2026 Adjusted EBITDA: $102.3 million
Net loss attributable to Surgery Partners, Inc.: $35.9 million
+5 more
8 metrics
Q1 2026 Revenue
$810.9 million
Three months ended March 31, 2026; up 4.5% year over year
Q1 2026 Adjusted EBITDA
$102.3 million
Three months ended March 31, 2026; versus $103.9 million in 2025
Net loss attributable to Surgery Partners, Inc.
$35.9 million
Three months ended March 31, 2026; $(0.28) basic and diluted EPS
Same-facility revenue growth
4.4%
Q1 2026 compared to Q1 2025; days-adjusted
Same-facility case growth
0.6%
Q1 2026 compared to Q1 2025; days-adjusted
Cash and cash equivalents
$182.3 million
Balance sheet data as of March 31, 2026
Total net debt to EBITDA
4.3x
Ratio under company’s credit agreement at March 31, 2026
2026 revenue guidance range
$3.35–$3.45 billion
Full-year 2026 outlook reaffirmed; company guidance
Key Terms
Adjusted EBITDA, same-facility revenues, non-controlling interests, de novo start-up costs, +1 more
5 terms
Adjusted EBITDA financial
"For the first quarter of 2026, the Company’s Adjusted EBITDA was $102.3 million"
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
same-facility revenues financial
"Same-facility revenues for the first quarter of 2026 increased 4.4% as compared to the same period"
non-controlling interests financial
"Less: Net income attributable to non-controlling interests"
An ownership stake in a subsidiary held by outside shareholders rather than the parent company, representing the portion of that subsidiary’s assets and profits the parent does not control. For investors, it shows what part of consolidated earnings and equity belongs to others — like a roommate who owns part of a house — which affects how much value and profit per share are truly attributable to the parent company’s shareholders.
de novo start-up costs financial
"De novo start-up costs 1.9 1.7"
non-GAAP financial measures financial
"the Company has presented the following non-GAAP financial measures: Adjusted net income (loss)"
Non-GAAP financial measures are numbers companies use to show their financial performance that exclude certain expenses or income. They help investors see how the company might perform without one-time costs or other unusual items, giving a different perspective from official reports. However, since they can be adjusted, they don’t always tell the full story and should be looked at alongside standard financial figures.
Earnings Snapshot
Revenue: $810.9 million · Guidance included
Q1 2026
Revenue
$810.9 million
4.5% YoY
Net income (loss) attributable to Surgery Partners, Inc.
$(35.9) million
improved from $(37.7) million
Adjusted EBITDA
$102.3 million
down from $103.9 million
Adjusted net income (loss) per share
$(0.03) basic and diluted
down from $0.04
Guidance
2026 revenue expected between $3.35 billion and $3.45 billion and Adjusted EBITDA of at least $530 million, implying organic Adjusted EBITDA growth of at least 4.2% versus 2025 normalized performance.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): | ||
| (Exact Name of Registrant as Specified in Charter) | ||
| (State or Other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||||||
(Address of Principal Executive Offices) (Zip Code)
(615 ) 234-5900
(Registrant’s Telephone Number, Including Area Code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
On May 5, 2026, Surgery Partners, Inc. (the "Company") issued a press release announcing results for the three months ended March 31, 2026. See the press release attached as Exhibit 99.1.
In accordance with General Instruction B.2 of Form 8-K, the information in this Current Report on Form 8-K, including Exhibit 99.1, shall not be deemed "filed" for the purpose of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933.
The Company makes reference to non-GAAP financial measures in the attached press release and a reconciliation of such non-GAAP financial measures to the most directly comparable GAAP financial measures is provided therein.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits:
99.1 | Press release dated May 5, 2026 | |||||||
99.2 | Q1 2026 Earnings Presentation | |||||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | |||||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| SURGERY PARTNERS, INC. | |||||||||||
Date: | May 5, 2026 | By: | /s/ David T. Doherty | ||||||||
| David T. Doherty | |||||||||||
| Executive Vice President and Chief Financial Officer | |||||||||||
Exhibit 99.1
SURGERY PARTNERS, INC. ANNOUNCES FIRST QUARTER 2026 RESULTS
REAFFIRMS FULL YEAR 2026 GUIDANCE
BRENTWOOD, Tenn., May 5, 2026 (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 first quarter ended March 31, 2026.
First Quarter 2026 Financial Highlights
(All comparisons are year-over-year unless otherwise noted)
•Revenue increased 4.5% for the first quarter
◦Same-facility revenues increased 4.4% for the first quarter
◦Same-facility cases increased 0.6% for the first quarter
•Net loss attributable to Surgery Partners, Inc. was $35.9 million for the first quarter
◦Adjusted EBITDA was $102.3 million for the first quarter
2026 Guidance
•Full year 2026 revenue guidance reaffirmed to be in the range of $3.35 billion to $3.45 billion and Adjusted EBITDA of at least $530 million
Eric Evans, Chief Executive Officer, stated, “We are encouraged by our solid start to 2026, with same store revenue growth of 4.4% in line with our Q1 and long-term growth expectations. As we continue to navigate near-term market dynamics, our cost management discipline and continued execution on physician recruitment position us well to meet or exceed our 2026 plan. Our portfolio optimization efforts also remain critical to our long-term strategy as we take steps to better align with our core short-stay surgical operating model. Looking ahead, we are confident in our ability to return to our growth algorithm through capitalizing on market opportunities, driving operational excellence, and thoughtful capital deployment.”
Dave Doherty, Chief Financial Officer, commented, “The results we reported today were in line with expectations and reinforce our confidence in reaffirming our guidance for the full year. We are beginning to see improvements, and we continue to believe in the strong fundamentals underpinning our business. Through disciplined execution, and a continued focus on improving free cash flow and reducing leverage, we are well-positioned to return the business to consistent growth, while delivering on long-term shareholder value.”
First Quarter 2026 Results
Revenues for the first quarter of 2026 increased 4.5% to $810.9 million compared to $776.0 million for the first quarter of 2025. Same-facility revenues for the first quarter of 2026 increased 4.4% as compared to the same period in prior year, with a 3.8% increase in revenue per case and a 0.6% increase in same-facility cases. For the first quarter of 2026, the Company’s Adjusted EBITDA was $102.3 million, compared to $103.9 million for the same period in 2025.
Liquidity
Surgery Partners had cash and cash equivalents of $182.3 million and $666.1 million of borrowing capacity under its revolving credit facility as of March 31, 2026. Cash flows from operating activities were $11.7 million for the first quarter of 2026, compared to $6.0 million for the same period in 2025. The period-over-period change is due to timing of routine transactions involving working capital.
The Company’s ratio of total net debt to EBITDA, as calculated under the Company’s credit agreement, was approximately 4.3x at the end of the first quarter of 2026.
1
2026 Outlook
The Company reaffirmed its outlook for 2026 revenues to be in the range of $3.35 billion to $3.45 billion and Adjusted EBITDA of at least $530 million.
Conference Call Information
Surgery Partners will hold a conference call today, May 5, 2026 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 13760194. The replay will be available until May 19, 2026.
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 Securities and Exchange Commission (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, 2025 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.
2
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.
3
SURGERY PARTNERS, INC.
Selected Consolidated Financial Data
(Dollars in millions, except per share amounts, shares in thousands)
(Unaudited)
| Three Months Ended March 31, | ||||||||||||||
| 2026 | 2025 | |||||||||||||
| Revenues | $ | 810.9 | $ | 776.0 | ||||||||||
| Operating expenses: | ||||||||||||||
| Salaries and benefits | 247.4 | 238.6 | ||||||||||||
| Supplies | 220.2 | 215.8 | ||||||||||||
| Professional and medical fees | 101.3 | 95.3 | ||||||||||||
| Lease expense | 23.0 | 20.8 | ||||||||||||
| Other operating expenses | 58.8 | 43.6 | ||||||||||||
| Cost of revenues | 650.7 | 614.1 | ||||||||||||
| General and administrative expenses | 39.3 | 36.0 | ||||||||||||
| Depreciation and amortization | 38.5 | 36.3 | ||||||||||||
| Transaction and integration costs | 15.6 | 24.7 | ||||||||||||
| Net loss on disposals, consolidations and deconsolidations | 4.3 | 6.4 | ||||||||||||
| Equity in earnings of unconsolidated affiliates | (4.1) | (5.6) | ||||||||||||
| Litigation settlements | 2.5 | 2.2 | ||||||||||||
| Other income, net | (1.7) | — | ||||||||||||
| 745.1 | 714.1 | |||||||||||||
| Operating income | 65.8 | 61.9 | ||||||||||||
| Interest expense, net | (69.1) | (62.2) | ||||||||||||
Income (loss) before income taxes | (3.3) | (0.3) | ||||||||||||
Income tax (expense) benefit | 1.2 | — | ||||||||||||
| Net income (loss) | (2.1) | (0.3) | ||||||||||||
| Less: Net income attributable to non-controlling interests | (33.8) | (37.4) | ||||||||||||
Net income (loss) attributable to Surgery Partners, Inc. | $ | (35.9) | $ | (37.7) | ||||||||||
| Net loss per share attributable to common stockholders | ||||||||||||||
| Basic | $ | (0.28) | $ | (0.30) | ||||||||||
Diluted (1) | $ | (0.28) | $ | (0.30) | ||||||||||
| Weighted average common shares outstanding | ||||||||||||||
| Basic | 128,367 | 126,602 | ||||||||||||
Diluted (1) | 128,367 | 126,602 | ||||||||||||
(1)The impact of potentially dilutive securities for all periods was not considered because the effect would be anti-dilutive.
4
SURGERY PARTNERS, INC.
Selected Financial and Operating Data
(Dollars in millions, except per case and per share amounts)
(Unaudited)
| March 31, 2026 | December 31, 2025 | |||||||||||||
| Balance Sheet Data (at period end): | ||||||||||||||
| Cash and cash equivalents | $ | 182.3 | $ | 239.9 | ||||||||||
| Total current assets | 1,082.5 | 1,150.7 | ||||||||||||
| Total assets | 8,042.1 | 8,119.7 | ||||||||||||
| Current maturities of long-term debt | 100.4 | 99.3 | ||||||||||||
| Total current liabilities | 581.7 | 615.5 | ||||||||||||
| Long-term debt, less current maturities | 3,613.5 | 3,602.9 | ||||||||||||
| Total liabilities | 4,560.8 | 4,592.9 | ||||||||||||
| Non-controlling interests—redeemable | 383.4 | 395.5 | ||||||||||||
| Total Surgery Partners, Inc. stockholders' equity | 1,688.0 | 1,712.9 | ||||||||||||
| Non-controlling interests—non-redeemable | 1,409.9 | 1,418.4 | ||||||||||||
| Total stockholders' equity | 3,097.9 | 3,131.3 | ||||||||||||
| Three Months Ended March 31, | ||||||||||||||
| 2026 | 2025 | |||||||||||||
| Cash Flow Data: | ||||||||||||||
| Net cash provided by (used in): | ||||||||||||||
| Operating activities | $ | 11.7 | $ | 6.0 | ||||||||||
| Investing activities | (13.4) | (76.4) | ||||||||||||
| Purchases of property and equipment | (16.0) | (22.7) | ||||||||||||
| Payments for acquisitions, net of cash acquired | (4.2) | (44.0) | ||||||||||||
| Purchases of equity investments | — | (3.8) | ||||||||||||
| Financing activities | (55.9) | 30.2 | ||||||||||||
| Distributions to non-controlling interest holders | (58.0) | (62.3) | ||||||||||||
| Three Months Ended March 31, | ||||||||||||||
| 2026 | 2025 | |||||||||||||
| Other Data: | ||||||||||||||
| Number of surgical facilities as of the end of period | 180 | 164 | ||||||||||||
| Number of consolidated surgical facilities as of the end of period | 122 | 118 | ||||||||||||
| Cases | 157,711 | 160,300 | ||||||||||||
| Revenue per case | $ | 5,142 | $ | 4,841 | ||||||||||
Adjusted EBITDA (1) | $ | 102.3 | $ | 103.9 | ||||||||||
Adjusted EBITDA margin (2) | 12.6 | % | 13.4 | % | ||||||||||
Adjusted net income per share attributable to common stockholders - Basic (1) | $ | (0.03) | $ | 0.04 | ||||||||||
Adjusted net income per share attributable to common stockholders - Diluted (1) | $ | (0.03) | $ | 0.04 | ||||||||||
(1)A reconciliation of these non-GAAP financial measures appears below.
(2)Defined as Adjusted EBITDA as a % of Revenues.
5
SURGERY PARTNERS, INC.
Supplemental Information
(Dollars in millions, except per case amounts)
(Unaudited)
| Three Months Ended March 31, | ||||||||||||||
| 2026 | 2025 | |||||||||||||
Same-facility Information (1): | ||||||||||||||
| Cases | 178,990 | 177,947 | ||||||||||||
| Case growth | 0.6 | % | N/A | |||||||||||
| Revenue per case | $ | 5,073 | $ | 4,887 | ||||||||||
| Revenue per case growth | 3.8 | % | N/A | |||||||||||
| Number of work days in the period | 63 | 63 | ||||||||||||
| Case growth (days adjusted) | 0.6 | % | N/A | |||||||||||
| Revenue growth (days adjusted) | 4.4 | % | 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 March 31, | ||||||||||||||
| 2026 | 2025 | |||||||||||||
Income (loss) before income taxes | $ | (3.3) | $ | (0.3) | ||||||||||
| Net income attributable to non-controlling interests | (33.8) | (37.4) | ||||||||||||
| Interest expense, net | 69.1 | 62.2 | ||||||||||||
| Depreciation and amortization | 38.5 | 36.3 | ||||||||||||
| Equity-based compensation expense | 5.8 | 7.6 | ||||||||||||
Transaction and integration costs (1) | 15.6 | 24.7 | ||||||||||||
| De novo start-up costs | 1.9 | 1.7 | ||||||||||||
Net loss on disposals, consolidations and deconsolidations | 4.3 | 6.4 | ||||||||||||
Litigation settlements and other litigation costs (2) | 4.2 | 2.7 | ||||||||||||
Adjusted EBITDA (3) | $ | 102.3 | $ | 103.9 | ||||||||||
(1)For the three months ended March 31, 2026, 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 $11.8 million and other costs, including severance, IT implementation, revenue cycle standardization of $3.8 million. For the three months ended March 31, 2025, this amount includes M&A costs of $16.8 million and other costs, including severance, IT implementation, revenue cycle standardization of $7.9 million.
(2)This amount includes a litigation settlement loss of $2.5 million and $2.2 million for the three months ended March 31, 2026 and 2025, respectively. This amount also includes other litigation costs of $1.7 million and $0.5 million for the three months ended March 31, 2026 and 2025, respectively.
(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.
6
The following table provides supplemental information for Adjusted EBITDA related to unconsolidated affiliates:
| Three Months Ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Adjusted EBITDA related to unconsolidated affiliates: | |||||||||||
Management fee revenues (1)(2) | $ | 10.0 | $ | 8.2 | |||||||
Equity in earnings of unconsolidated affiliates (2) | 4.1 | 5.6 | |||||||||
| Plus: | |||||||||||
Start-up costs related to unconsolidated de novo surgical facilities (3) | 1.2 | 0.3 | |||||||||
| Adjusted EBITDA related to unconsolidated affiliates | $ | 15.3 | $ | 14.1 | |||||||
(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 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 March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Consolidated Statements of Operations Data: | |||||||||||
| Net income (loss) | $ | (2.1) | $ | (0.3) | |||||||
| Plus (minus): | |||||||||||
| Net income attributable to non-controlling interests | (33.8) | (37.4) | |||||||||
| Equity-based compensation expense | 5.8 | 7.6 | |||||||||
| Transaction and integration costs | 15.6 | 24.7 | |||||||||
| De novo start-up costs | 1.9 | 1.7 | |||||||||
| Net loss on disposals, consolidations and deconsolidations | 4.3 | 6.4 | |||||||||
| Litigation settlements and other litigation costs | 4.2 | 2.7 | |||||||||
Adjusted net income (loss) attributable to common stockholders | $ | (4.1) | $ | 5.4 | |||||||
Adjusted net income (loss) per share attributable to common stockholders | |||||||||||
| Basic | $ | (0.03) | $ | 0.04 | |||||||
Diluted (1) | $ | (0.03) | $ | 0.04 | |||||||
| Weighted average common shares outstanding | |||||||||||
| Basic | 128,367 | 126,602 | |||||||||
Diluted (1) | 128,367 | 127,697 | |||||||||
(1)The impact of potentially dilutive securities for the three months ended March 31, 2026 was not considered because the effect would be anti-dilutive.
Contact
Surgery Partners Investor Relations
(615) 234-8940
IR@surgerypartners.com
7
1st Quarter 2026 Earnings Presentation May 5, 2026
Page 2 | SURGERY PARTNERS Cautionary Statements Forward-Looking Statements Statements contained in this presentation, other than statements of historical fact, are forward-looking 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,” “plans,” “will,” “would,” and similar expressions. These forward-looking statements include, without limitation, statements regarding the anticipated timing and strength of the opportunities available to Surgery Partners, Inc. and its subsidiaries (the “Company”), as well as the future financial position of the Company, including financial targets, business strategy, plans and objectives for future operations and future operating results and cash flows. These statements are subject to risks, uncertainties and other factors that may cause actual results to differ materially from those made 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 healthcare 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; 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 manage material liabilities whether known or unknown incurred as a result of acquiring or operating surgical facilities; the impact that legislation and other health care public policy changes, and other regulatory actions or executive orders may have 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 set forth under the heading "Risk Factors" in our 2025 Annual Report on Form 10-K and discussed from time to time in our other reports filed with the Securities and Exchange Commission (the “SEC”). You should read the Company’s annual report and all other filings with the SEC, available at www.sec.gov, for a discussion of these and other risks and uncertainties. The forward-looking statements contained in this presentation speak only as of the date of the presentation, and the Company undertakes no obligation to update or revise any forward- looking statements for any reason, except as required by law. No representations or warranties are made by the Company or any of its affiliates, or any of its or their respective direct or indirect subsidiaries, affiliates, stockholders, members, partners, directors, officers, employees, advisors, agents or any representatives, as to the accuracy of any such statements or projections. Investors, potential investors, and others should give careful consideration to these risks and uncertainties and should not place considerable reliance on the forward-looking statements contained in this presentation. Non-GAAP Financial Measures This presentation contains certain non-GAAP financial measures. A “non-GAAP financial measure” is defined as a numerical measure of a company’s financial performance that excludes or includes amounts so as to be different than the most directly comparable measure calculated and presented in accordance with generally accepted accounting principles in the United States (“GAAP”) in the statements of income, balance sheets or statements of cash flow of the company. We present non-GAAP financial measures when we believe that the additional information is useful and meaningful to investors. Non-GAAP financial measures do not have any standardized meaning and are therefore unlikely to be comparable to similar measures presented by other companies. The presentation of non-GAAP financial measures is not intended to be a substitute for, and should not be considered in isolation from, the financial measures reported in accordance with GAAP. Reconciliations of these non-GAAP measures are included in our filings with the SEC and at the end of this presentation.
Page 3 | SURGERY PARTNERS First Quarter 2026 Highlights ~158k Consolidated Surgical Cases 0.6% Same-Facility Growth $811M Net Revenue 4.5% Y/Y Growth 4.4% Same-Facility Growth 17% Total Joint Growth YoY ~65k Musculoskeletal¹ procedures ~140 New Physician Recruits Same-Facility 4.4% Net Revenue 0.6% Surgical Cases 3.8% Rate (1) Musculoskeletal (or “MSK”) references orthopedic, spine, neurology and pain management specialties Surgical Cases ~158k Net Revenue $810.9m Adjusted EBITDA $102.3m 12.6% Margin
Page 4 | SURGERY PARTNERS 2026 Financial Outlook Second Quarter 2026 Adjusted EBITDA 23.0% to 23.5% of 2026 Adjusted EBITDA guidance Second Quarter 2026 Revenue 24.0% to 24.5% of mid-point of 2026 Revenue guidance The Company Reaffirms its 2026 Full Year Guidance Revenue $3.35b - $3.45b Adjusted EBITDA $530m+ Organic Adjusted EBITDA Growth 4.2%+ Same-Facility Revenue Growth 3.0%+
Page 5 | SURGERY PARTNERS 2026 Adjusted EBITDA Outlook Bridge from 2025 2026 organic growth and prior year capital deployment gains offset incentive plan costs and regulatory pressures $ in millions 2025 Adjusted EBITDA $526 Annualize 2025 Acquisitions & Divestitures 9 Funding Annual Cash Incentive at Target (15) 2025 Normalized Performance $520 Provider Tax & Medicaid Pressures (8) Incremental Tariff Pressures (4) Organic Growth 22+ 2026 Adjusted EBITDA Guidance $530+ 2026 Anticipated Growth vs 2025 Normalized 1.9%+ 2026 Organic Growth vs 2025 Normalized 4.2%+
Supplemental Non-GAAP Reconciliations
Page 7 | SURGERY PARTNERS Supplemental Non-GAAP Disclosures We are not able to project components of 2026 Adjusted EBITDA outlook.
FAQ
How did Surgery Partners (SGRY) perform financially in Q1 2026?
Surgery Partners generated Q1 2026 revenue of $810.9 million, up 4.5% year over year. Same-facility revenues grew 4.4%, supported by 0.6% higher case volumes and a 3.8% increase in revenue per case, reflecting steady demand and pricing.
What was Surgery Partners’ profitability and margin in Q1 2026?
The company reported a net loss attributable to Surgery Partners of $35.9 million, or $(0.28) per share. Adjusted EBITDA was $102.3 million versus $103.9 million a year earlier, producing an Adjusted EBITDA margin of 12.6%, down from 13.4%.
What full-year 2026 guidance did Surgery Partners (SGRY) reaffirm?
Surgery Partners reaffirmed 2026 revenue guidance of $3.35–$3.45 billion and expects Adjusted EBITDA of at least $530 million. The company highlighted anticipated organic Adjusted EBITDA growth of at least 4.2% versus 2025 normalized performance in its outlook bridge.
What is Surgery Partners’ liquidity and leverage position as of March 31, 2026?
As of March 31, 2026, Surgery Partners held $182.3 million in cash and cash equivalents and had $666.1 million of available borrowing capacity on its revolver. The company’s total net debt to EBITDA ratio under its credit agreement was approximately 4.3x.
How did Surgery Partners’ same-facility volumes and pricing trend in Q1 2026?
Same-facility metrics showed modest growth, with 0.6% case growth and a 3.8% increase in revenue per case for Q1 2026. Combined, these drove 4.4% same-facility revenue growth, consistent with management’s stated growth expectations for the business.
What were key non-GAAP results for Surgery Partners (SGRY) in Q1 2026?
In Q1 2026, Surgery Partners reported Adjusted EBITDA of $102.3 million and Adjusted net loss attributable to common stockholders of $4.1 million, or $(0.03) per basic and diluted share, compared with adjusted net income of $5.4 million in the prior-year quarter.