Surgery Partners (SGRY) Q4 2024 earnings summary

Executive summary

• Achieved record 2024 revenue over $3 billion and Adjusted EBITDA over $500 million, with 16% Adjusted EBITDA growth and 13.5% net revenue growth year-over-year, driven by strong organic performance, robust M&A activity, and margin expansion initiatives.

• Q4 revenue grew 17.5% year-over-year to $864 million; full-year revenue up 13.5% to $3.1 billion.

• Opened eight de novo facilities and added 14 surgical robots, with over 750 new physicians recruited, primarily in orthopedics.

• Net loss attributable to the company was $108.5 million in Q4 and $168.1 million for the year, impacted by a non-cash deferred tax valuation allowance.

• 2025 guidance projects net revenue of $3.3–$3.45 billion and Adjusted EBITDA of $555–$565 million, reflecting continued double-digit growth.

Financial highlights

• Q4 Adjusted EBITDA was $163.8 million (18.9% margin); full-year Adjusted EBITDA reached $508.2 million, up 16%.

• Same-facility revenue increased 8% for the year, exceeding growth targets; same-facility cases increased 3.9%.

• Adjusted net income per share was $0.44 in Q4 and $0.94 for the year.

• Operating cash flows totaled $300 million in 2024, with $171 million distributed to physician partners.

• Cash and equivalents at year-end were $269.5 million; liquidity position over $770 million.

Outlook and guidance

• 2025 net revenue guidance: $3.3–$3.45 billion; Adjusted EBITDA: $555–$565 million, including ~$11 million from late 2024 divestitures.

• Expect to deploy at least $200 million in M&A capital; organic growth expected near the top end of long-term targets.

• Margin expansion anticipated to continue, supported by supply chain, revenue cycle improvements, and integration benefits.

• Liquidity position supports continued M&A without capital market access.