Surgery Partners Earnings Call Transcripts
Fiscal Year 2026
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First quarter 2026 results met expectations with $811M revenue and 4.4% same-facility growth, supported by strong MSK performance and disciplined cost management. Guidance for 2026 is reiterated, with ongoing focus on organic growth, margin improvement, and portfolio optimization.
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Shifts in payer mix, particularly increased Medicare cases, compressed margins despite higher procedure volumes. Cost reduction, portfolio optimization, and a conservative approach to guidance are underway, with a focus on deleveraging and maintaining high patient experience.
Fiscal Year 2025
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2025 revenue and EBITDA grew but missed expectations due to margin pressure in three surgical hospital markets from payer mix shifts and cost increases. 2026 guidance reflects continued headwinds, with a focus on portfolio optimization, disciplined capital allocation, and organic growth in higher acuity procedures.
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Q3 2025 saw 6.6% revenue growth and stable margins, but guidance was revised downward due to softer commercial volumes, delayed M&A, and divestitures. The M&A pipeline remains strong, and de novo facility expansion continues, with a focus on long-term growth and portfolio optimization.
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Q2 2025 saw 8.5% revenue and 9% adjusted EBITDA growth, driven by strong organic and M&A performance. Guidance for 2025 is reaffirmed, with growth expected at the high end of targets and margin expansion continuing. Strategic review concluded with a focus on portfolio optimization and self-funded growth.
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First quarter revenue and adjusted EBITDA grew 8% and 7% year-over-year, respectively, driven by strong case growth in GI and orthopedics, robust de novo and M&A activity, and improved operating efficiencies. Full-year guidance is reaffirmed, with margin expansion and liquidity supporting ongoing growth.
Fiscal Year 2024
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Record 2024 results with revenue over $3B and Adjusted EBITDA above $500M, driven by strong organic growth, M&A, and margin expansion. 2025 guidance projects continued double-digit growth, with minimal exposure to policy risks and robust liquidity to support ongoing investments.
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Q3 2024 saw 14% revenue growth and 22% Adjusted EBITDA growth, driven by high acuity procedures and strong physician recruitment. Full-year guidance projects over $3.075B in revenue and $508M in Adjusted EBITDA, with robust liquidity and continued margin expansion.
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Q2 2024 saw 14.2% revenue growth and 18% Adjusted EBITDA growth, driven by strong organic performance, high-acuity procedures, and strategic acquisitions. Full-year guidance was raised, with continued margin expansion and robust liquidity supporting future growth.