Surgery Partners Grows Revenue and Adjusted EBITDA in Q3 2025, Supported by Strong Surgical Case Volumes
Third Quarter Results Highlight Resilient Growth and Operational Discipline
Surgery Partners, Inc. (NASDAQ:SGRY), a leader in outpatient surgical services, announced notable year-over-year growth for the third quarter ended September 30, 2025. The company delivered a 6.6% increase in revenue to $821.5 million, with same-facility revenue up 6.3%. Key performance was underpinned by a 3.4% increase in same-facility surgical cases and a 2.8% lift in same-facility revenue per case, reflecting sustained demand in orthopedic and other high-value procedures.
Revenue and EBITDA Continue Upward Trend Despite Payor and Capital Headwinds
While the third quarter saw softer-than-expected payor mix trends and delays in capital deployment, Surgery Partners managed to boost its Adjusted EBITDA by 6.1% to $136.4 million. The margin remained essentially flat at 16.6%. Year-to-date, revenues rose 7.7% to $2.42 billion, and Adjusted EBITDA reached $369.3 million, up from $344.4 million the prior year.
| Key Metric | Q3 2025 | Q3 2024 | YTD 2025 | YTD 2024 |
|---|---|---|---|---|
| Revenue ($M) | 821.5 | 770.4 | 2,423.7 | 2,249.9 |
| Adjusted EBITDA ($M) | 136.4 | 128.6 | 369.3 | 344.4 |
| Adjusted EBITDA Margin (%) | 16.6 | 16.7 | 15.2 | 15.3 |
| Net Loss Attributable to SGRY ($M) | (22.7) | (31.7) | (62.9) | (59.6) |
| Same-Facility Case Growth (%) | 3.4 | N/A | 4.3 | N/A |
| Same-Facility Revenue Per Case Growth (%) | 2.8 | N/A | 1.1 | N/A |
Guidance Maintains Cautious Optimism
Despite volume and payor mix headwinds, management has updated 2025 guidance to reflect current market dynamics: full-year revenue is expected in the range of $3.275 billion to $3.30 billion and Adjusted EBITDA in the range of $535 million to $540 million. Leadership emphasized confidence in their outpatient growth strategy and portfolio optimization efforts, signaling ongoing focus on disciplined capital allocation and operational execution.
Liquidity and Leverage Remain Manageable
As of September 30, 2025, Surgery Partners reported cash and cash equivalents of $203.4 million, with $405.9 million in available borrowing capacity. The company’s total net debt to EBITDA ratio stands at approximately 4.2x, providing sufficient financial flexibility as it pursues further expansion and efficiency gains.
| Liquidity Snapshot | Sept. 30, 2025 | Dec. 31, 2024 |
|---|---|---|
| Cash & Equivalents ($M) | 203.4 | 269.5 |
| Borrowing Capacity ($M) | 405.9 | — |
| Total Debt ($M) | 3,563.6 | 3,370.3 |
| Total Assets ($M) | 7,946.6 | 7,890.0 |
Operating Metrics Affirm Sector Positioning
Surgery Partners operated 165 surgical facilities as of quarter end. Revenue per case climbed to $4,946 for the quarter (up from $4,737 in Q3 2024). Adjusted net income per share for the quarter was $0.13 (basic and diluted). Though the company continues to report a net loss, non-cash and non-recurring expenses and non-controlling interests remain a significant part of the earnings structure, aligning with trends seen in high-growth, asset-intensive healthcare platforms.
| Metric | Q3 2025 | Q3 2024 |
|---|---|---|
| Facilities (Total) | 165 | 166 |
| Surgical Cases | 166,106 | 162,635 |
| Revenue per Case ($) | 4,946 | 4,737 |
| Adjusted Net Income/Share (Basic) | 0.13 | 0.19 |
Key Takeaways: Long-Term Growth Trajectory Remains Intact
Surgery Partners continues to demonstrate its capacity to grow revenue and Adjusted EBITDA despite macro and industry-specific challenges. Management's updated guidance and commentary indicate an unwavering focus on efficiency, prudent capital management, and positioning in outpatient and specialty care.
While challenges such as payor mix and leverage warrant close monitoring, the underlying operational and financial momentum suggest that SGRY remains on a path to expand its market footprint and unlock further value. Investors and analysts should pay close attention to future volume trends, M&A developments, and capital allocation priorities, especially given the evolving dynamics in the healthcare sector.
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