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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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.