Surgery Partners Earnings Call Transcripts
Fiscal Year 2026
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Second quarter results exceeded expectations, with revenue and adjusted EBITDA growth driven by higher acuity procedures and strong physician recruitment. The pending Idaho Falls divestiture will simplify the business, reduce leverage, and sharpen focus on core short-stay surgical facilities. Full-year guidance is reaffirmed, with updated outlook to follow transaction close.
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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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Revenue and adjusted EBITDA grew 8% and 7% year-over-year, driven by strong case growth in GI and orthopedics, robust M&A, and de novo facility expansion. Guidance for 2025 is reaffirmed, with margin expansion and liquidity to fund growth without new debt or equity.
Fiscal Year 2024
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Delivered record revenue and Adjusted EBITDA in 2024, driven by organic growth, margin expansion, and robust M&A. 2025 guidance calls for continued double-digit EBITDA growth, strong liquidity, and minimal risk from regulatory changes.
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Q3 2024 saw net revenue rise 14% to $770M and Adjusted EBITDA up 22% to $128.6M, driven by strong growth in high acuity procedures and robust physician recruitment. Full-year guidance projects over $3.075B in revenue and $508M in Adjusted EBITDA, with 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.