Surgery Partners (SGRY) Q1 2025 earnings summary

Executive summary

• Revenue for Q1 2025 grew 8.2% year-over-year to $776 million, driven by same-facility growth, acquisitions, and strong execution across core specialties.

• Adjusted EBITDA increased 6.6% to $103.9 million, reflecting operating improvements, M&A integration, and margin expansion.

• Net loss attributable to the company widened to $37.7 million, compared to $12.4 million in Q1 2024, due to higher costs and interest expense.

• Over 160,000 surgical cases were performed, with growth across all core specialties, especially GI and orthopedics.

• Full-year 2025 revenue and Adjusted EBITDA guidance reaffirmed at $3.3–$3.45 billion and $555–$565 million, respectively.

Financial highlights

• Q1 2025 revenue was $776 million, up from $717.4 million in Q1 2024; same-facility revenue increased 5.2%.

• Adjusted EBITDA was $103.9 million (13.4% margin), up from $97.5 million (13.6% margin) year-over-year.

• Net loss per share was $(0.30), compared to $(0.10) in Q1 2024; adjusted net income per share was $0.04, down from $0.10.

• Cash and cash equivalents at quarter-end were $229.3 million, with $388.9 million available on the revolver.

• Cash flow from operating activities was $6 million, down from $40.7 million, due to working capital timing.

Outlook and guidance

• Full-year 2025 revenue guidance reaffirmed at $3.3–$3.45 billion and Adjusted EBITDA at $555–$565 million.

• Management expects continued margin expansion, supported by supply chain and revenue cycle improvements.

• Sufficient liquidity to fund M&A and growth without accessing capital markets for at least five years.

• Same-facility growth expected at or above the high end of the 6% target, with more balanced growth between volume and rate.

• Management remains bullish on surgical trends and regulatory landscape, supporting long-term growth.