Surgery Partners (SGRY) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue reached $826.2 million, up 8.5% year-over-year, with adjusted EBITDA of $129 million, reflecting 9% growth driven by organic expansion, margin improvement, and acquisitions.

• Net loss attributable to the company narrowed to $2.5 million from $15.5 million in Q2 2024.

• Strategic review concluded with a decision to remain public, reaffirming confidence in long-term value creation and market positioning.

• Portfolio optimization initiatives and recent acquisitions are underway to accelerate leverage reduction and cash flow generation.

• Portfolio included 162 surgical facilities across 30 states as of June 30, 2025.

Financial highlights

• Same-facility revenue grew 5.1% in Q2, with 3.4% case growth and 1.6% rate growth.

• Adjusted EBITDA margin for Q2 2025 was 15.6%, up 10 basis points year-over-year.

• Cash and cash equivalents stood at $250.1 million, with $394.9 million available under the Revolver at quarter-end.

• Operating cash flow for Q2 2025 was $81.3 million; $54 million distributed to physician partners; $10 million in maintenance capex.

• Interest expense increased due to swap expiration and higher rates, with net interest expense at $67.9 million.

Outlook and guidance

• Full-year 2025 revenue guidance reaffirmed at $3.3–$3.45 billion and adjusted EBITDA at $555–$565 million, likely at the lower end due to M&A timing.

• Full-year same-facility growth expected near the high end of the 4–6% target.

• Management expects continued margin expansion from operating improvements and integration synergies.

• Targeting $200 million in M&A deployment for 2025, weighted toward the back half of the year.

• Management expects cash flows from operations, available cash, and credit capacity to meet liquidity needs.