Surgery Partners (SGRY) Q3 2025 earnings summary

Executive summary

• Q3 2025 net revenue was $821.5 million, up 6.6% year-over-year, with adjusted EBITDA of $136.4 million, up 6.1% and a margin of 16.6%.

• Net loss attributable to the company was $22.7 million, an improvement from $31.7 million in Q3 2024.

• Over 166,000 surgical cases performed in Q3, with strong growth in GI and MSK, especially orthopedics; ophthalmology was slightly lower.

• Commercial payer mix declined 160 basis points year-over-year, while government payers increased 120 basis points.

• The company owned or operated 165 surgical facilities across 30 states as of September 30, 2025.

Financial highlights

• Same facility revenue grew 6.3% year-over-year; same facility case growth was 3.4% and rate growth 2.8%.

• Year-to-date adjusted EBITDA reached $369.3 million, up 7.2% from prior year; year-to-date margin is 15.2%.

• Cash and cash equivalents at quarter end were $203.4 million; revolver availability was $405.9 million.

• Operating cash flow for Q3 was $83.6 million.

• Supply costs were 25.4% of net revenue, down 70 basis points year-over-year; G&A expenses were 2.7% of revenue, down from 3.8%.

Outlook and guidance

• Full-year 2025 revenue guidance revised to $3.275–$3.3 billion and adjusted EBITDA to $535–$540 million.

• Guidance revision reflects delayed capital deployment, lost earnings from divested ASCs, and a cautious outlook on commercial payer mix and volume.

• Same facility revenue growth for the year expected near the midpoint of the 4%-6% long-term target.

• M&A pipeline remains robust with over $300 million in opportunities under evaluation; normal capital deployment levels expected in 2026.

• Management expects continued focus on same-facility performance, selective acquisitions, and new facility development.