Surgery Partners beats Q2 expectations, reaffirms 2025 guidance

Published 05/08/2025, 12:46
 Surgery Partners beats Q2 expectations, reaffirms 2025 guidance

BRENTWOOD, Tenn. - On Tuesday, Surgery Partners, Inc. (NASDAQ:SGRY) reported second quarter earnings that exceeded analyst expectations, with adjusted earnings per share of $0.17, beating estimates by $0.01, while revenue grew 8.4% year-over-year to $826.2 million, surpassing the consensus estimate of $819.45 million.

The short-stay surgical facility operator saw same-facility revenues increase 5.1% in the quarter, driven by a 3.4% increase in same-facility cases and a 1.6% increase in revenue per case. Adjusted EBITDA rose 9.0% to $129.0 million, with margins improving slightly to 15.6% from 15.5% in the prior-year period.

"We are proud to report strong growth in Adjusted EBITDA and revenue, demonstrating the strength of our operational strategy as we capitalize on the continued momentum in the ambulatory surgery industry," said Eric Evans, Chief Executive Officer. "Our growth is the result of a relentless focus on excellence and differentiation in our core short-stay surgical service lines."

Surgery Partners reaffirmed its full-year 2025 guidance, projecting revenue between $3.30 billion and $3.45 billion and Adjusted EBITDA between $555 million and $565 million. The midpoint of the revenue guidance ($3.375 billion) is in line with analyst consensus of $3.37 billion.

Dave Doherty, Chief Financial Officer, commented, "The results we report today are very much aligned with our internal expectations and give us confidence in reaffirming our guidance for the full year. Our guidance implies continued margin expansion."

The company ended the quarter with $250.1 million in cash and cash equivalents and $394.9 million in borrowing capacity under its revolving credit facility. Its ratio of total net debt to EBITDA stood at approximately 4.1x at the end of the quarter.

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