Surgery Partners (SGRY) Q1 2025 earnings summary

Executive summary

• Revenue for Q1 2025 rose 8.2% year-over-year to $776.0 million, with same-facility revenues up 5.2% and cases up 6.5%, driven by organic growth, margin improvement, and acquisitions.

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

• Net loss attributable to Surgery Partners, Inc. was $37.7 million, compared to $12.4 million in Q1 2024, due to higher costs and interest expense.

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

• Full-year 2025 revenue and Adjusted EBITDA guidance reaffirmed at $3.30–$3.45 billion and $555–$565 million, respectively.

Financial highlights

• Patient service revenues grew 7.5% to $758.4 million; other service revenues were $17.6 million.

• Adjusted EBITDA margin was 13.4% for the quarter.

• Cash and cash equivalents at quarter-end: $229.3 million; revolver capacity: $388.9 million.

• Operating cash flow was $6.0 million, down from $40.7 million year-over-year, due to working capital timing.

• Net loss per share: $(0.30) basic and diluted, compared to $(0.10) in Q1 2024.

Outlook and guidance

• Reaffirmed full-year 2025 revenue guidance of $3.3–$3.45 billion and adjusted EBITDA of $555–$565 million.

• Expects full-year same-facility growth at or above the high end of the 6% target, with more balanced growth between volume and rate as the year progresses.

• Management expects continued margin expansion and sufficient liquidity to fund M&A without accessing additional debt or equity for the next five years.