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Net Revenue: $821.5 million, up 6.6% year-over-year.

Adjusted EBITDA: $136.4 million, up 6.1% year-over-year.

Adjusted EBITDA Margin: 16.6%.

Same Facility Revenue Growth: 6.3%.

Surgical Cases: Over 166,000 performed in the third quarter, representing 2.1% growth.

Cash Balance: $203.4 million.

Total Available Liquidity: Over $600 million.

Operating Cash Flow: $83.6 million for the third quarter.

Capital Deployment for Acquisitions: Approximately $71 million in 2025.

Debt: Approximately $2.2 billion in outstanding corporate debt with no maturities until 2030.

Net Leverage Ratio: 4.2 times under the credit agreement, 4.6 times on a balance sheet net debt-to-EBITDA basis.

Revised Full Year Revenue Guidance: $3.275 billion to $3.3 billion.

Revised Full Year Adjusted EBITDA Guidance: $535 million to $540 million.

Same Facility Revenue Growth Guidance: Closer to the midpoint of 4% to 6% for the full year.

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Release Date: November 10, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Surgery Partners Inc (NASDAQ:SGRY) reported a 6.6% year-over-year increase in net revenue for the third quarter, reaching $821.5 million.

The company achieved a 6.1% year-over-year growth in adjusted EBITDA, amounting to $136.4 million, with a stable margin of 16.6%.

Same facility revenue grew by 6.3%, driven by strong performance in gastrointestinal and musculoskeletal procedures, particularly in orthopedics.

Surgery Partners Inc (NASDAQ:SGRY) has successfully recruited over 500 new physicians year-to-date, enhancing its capacity to meet high acuity demand.

The company has a robust M&A pipeline with over $300 million in opportunities under active evaluation, indicating potential for future growth.

The payer mix shifted unfavorably, with commercial payers representing a smaller portion of revenues, impacting margins.

Surgery Partners Inc (NASDAQ:SGRY) experienced softer-than-expected same-facility volume growth, prompting a revision of its fourth-quarter outlook.

The company has not yet redeployed proceeds from divestitures, contributing to a revised guidance for the full year.

There were construction and regulatory delays affecting the ramp-up of new de novo facilities, creating near-term pressure on earnings.

The company revised its full-year guidance, now expecting revenue between $3.275 billion and $3.3 billion, and adjusted EBITDA between $535 million and $540 million, reflecting timing-related impacts and a cautious outlook on commercial payer mix.

Q: Can you elaborate on the weakness in procedure volumes for Q4? Is it specific to certain procedures or geographies? A: Eric Evans, CEO: The weakness was broad-based, with a higher government payer mix than expected. We still anticipate growth in both cases and rates for Q4, but below internal expectations. It's not specific to any specialty or geography, and we're monitoring the situation closely.

Q: Why has there been a pullback in acquisition spending? Is it due to deal timing or valuation? A: Eric Evans, CEO: The pullback is primarily due to timing and our disciplined approach. We have a strong pipeline and expect to return to normal M&A flow moving forward.

Q: Can you provide more details on the payer mix issue? Is it related to commercial volume or denials? A: Eric Evans, CEO: There's always pressure from payers, but nothing systematically different for us. The commercial growth trend is not as strong as expected, but we still anticipate volume and rate growth in Q4.

Q: How are you prioritizing de novo efforts and what is the expected cadence of openings? A: Eric Evans, CEO: We are excited about de novo opportunities, focusing on higher acuity specialties like orthopedics. We expect to have double-digit facilities in development at any given time, with a strong pipeline of opportunities.

Q: Can you provide an update on the portfolio review process? A: Eric Evans, CEO: We are actively pursuing opportunities to optimize our portfolio, focusing on markets that are farthest from our short-stay surgery ethos. We aim to accelerate balance sheet strengthening and self-fund ASC growth.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.