Surgery Partners, Inc. (SGRY)

Key figures

The last twelve months reported, with the latest price and balance sheet.

Revenue, last twelve months

$3.4B

Revenue growth

4.0%

Net income, last twelve months

-$88.6M

Earnings per share

-$0.70

Operating margin

11.4%

Net margin

-2.6%

Free cash flow

$187.6M

Return on equity

-5.3%

Market value

$3.0B

Cash

$216.7M

Debt

$3.8B

Debt to equity

2.25

Shares outstanding

130.9M

Financial statements

Revenue, profit and cash flow by fiscal year, each year linked to its annual report.

By quarter

What the company said with its results

From the second quarter of 2026 results, filed 10 August 2026.

• Revenue rose 2.7% in quarter. Revenues were $848.9 million, compared with $826.2 million in the second quarter of 2025.
• Same-facility revenue rose 5.0%. Same-facility revenue grew 5.0%, up from 4.4% in the first quarter. Revenue per case rose 4.8% and same-facility cases rose 0.3%.
• Net loss attributable widened. Net loss attributable to Surgery Partners, Inc. was $15.0 million, compared with a $2.5 million loss in the second quarter of 2025.
• First-half revenue up 3.6%. Year-to-date revenue was $1,659.8 million, up 3.6%. Year-to-date same-facility revenue rose 4.9%.
• Revenue per case rose. Revenue per case was $5,057, up from $4,780. Total cases were 167,866, against 172,858 a year earlier.
• Same-facility cases nearly flat. Same-facility cases rose 0.3% in the quarter and 0.8% year to date, on a days-adjusted basis.
• Work days unchanged year over year. Both second-quarter periods had 64 work days, so reported and days-adjusted same-facility growth are the same.
• Facility count rose year over year. Surgical facilities totaled 178 at June 30, against 162 a year earlier and 180 at March 31. Consolidated facilities were 120, up from 115.
• Salaries and supplies increased. Salaries and benefits were $253.1 million, against $235.2 million. Supplies were $226.8 million, against $215.0 million.
• Cost of revenues up 4.5%. Total cost of revenues was $658.7 million, against $630.6 million. General and administrative expenses were $36.3 million, against $36.1 million.
• Transaction costs near prior level. Transaction and integration costs were $18.4 million, against $18.1 million. Of that, M&A costs were $12.5 million and other costs $5.9 million.
• Litigation costs rose. Other litigation costs were $2.7 million in the quarter, against $0.4 million in the second quarter of 2025.
• Adjusted EBITDA fell year over year. Adjusted EBITDA was $125.2 million, against $129.0 million. Margin was 14.7%, against 15.6%; year-to-date margin was 13.7%, against 14.5%.
• Operating income declined. Operating income was $102.1 million, against $111.7 million. Income before income taxes was $32.3 million, against $43.8 million.

Company events

The newest 8-K filings of 143 held.

Every filing

The newest filings with the SEC of 261 held.

Insider trades

Form 4 trades by officers, directors and 10% owners, last 12 months.

Planned insider sales

Form 144 notices, filed when the sell order goes to the broker.

Large holders

Schedule 13D and 13G filings by holders of more than 5% of the voting shares.

Short interest

Shares sold short and not yet bought back, on each FINRA settlement date.

Funds that hold it

From each fund's latest Form 13F.

214 funds held it at 30 Jun 2026: 101 added and 51 trimmed in the quarter. The largest:

Peers

Companies in the same industry.

• HCA Healthcare, Inc. (HCA): revenue $78.0B, market value $101.0B
• Tenet Healthcare Corp. (THC): revenue $21.8B, market value $21.6B
• Universal Health Services Inc. (UHS): revenue $18.1B, market value $10.3B
• Ardent Health, Inc. (ARDT): revenue $6.4B, market value $1.7B

What the company does

Surgery Partners is a Delaware corporation that, through its subsidiaries, owns and operates a national network of surgical facilities and ancillary services in the United States. It has more than 200 locations in 30 states, including ambulatory surgery centers ("ASCs"), short-stay surgical hospitals and multi-specialty physician practices. As of 31 December 2025 it owned or operated 176 surgical facilities, made up of 157 ASCs and 19 licensed surgical hospitals. The company describes itself as one of the largest and fastest growing surgical services businesses in the United States. It had approximately 16,000 employees.

How the business is organised

The company reports one segment, Surgical Facilities. It covers ASCs, surgical hospitals, anesthesia services, urgent care facilities and multi-specialty physician practices. Facilities are owned and run through partnerships or limited liability companies with physicians, physician groups and health care systems. Of the 176 facilities, the company holds majority ownership in 90 and consolidated 121 for financial reporting. For most facilities it provides day-to-day management under a management agreement and receives a fee that is typically a percentage of the facility's revenue. It also makes intercompany loans to some facilities, often secured by a pledge of the facility's assets. In some markets a health care system is an owner alongside the physician investors.

What the facilities do

The facilities mainly perform non-emergency, scheduled surgery. A typical ASC is free-standing and handles outpatient procedures for patients who are not expected to need an overnight stay. Each usually has one to seven operating or procedure rooms. The surgical hospitals focus on less complex elective surgeries with shorter recovery times and are generally not equipped for critical or traumatic injuries.

The company mainly runs multi-specialty facilities and keeps some as single-specialty where that suits the market. By share of cases at consolidated facilities, the mix is:

- Orthopedics and pain management: 40.7% - Gastrointestinal: 24.4% - Ophthalmology: 21.7% - General surgery: 1.9% - Other: 11.3%

How it earns its money

Revenue from consolidated facilities comes from facility fees. These usually cover use of an operating room and recovery room, equipment, supplies, nursing staff and medications. They do not usually include the professional fees of the surgeon or anesthesiologist, which those physicians bill directly. The other 2.5% is other service revenues, mainly management fees from facilities the company does not consolidate.

By payor, patient service revenues at consolidated facilities come from private insurance at 52.3%, government programs at 42.8%, self-pay at 2.7% and other payors at 2.2%. Medicare pays ASCs based on the Outpatient Prospective Payment System, at a percentage of what hospital outpatient departments receive. Hospitals are paid under separate Medicare systems. Most private insurance is paid under written contracts that generally require discounts from the company's established charges.

Who it competes with and how it grows

In each market the company competes with hospitals and other surgical facility operators for physicians and patients. It names HCA Healthcare, Inc., AMSURG Corp., Tenet Healthcare Corporation and Optum, Inc. among the large national companies that own or manage surgical facilities. Physicians choosing to operate in office-based settings are another source of competition.

The company grows by acquiring existing facilities, developing new ones with local physician partners, and recruiting physicians to its facilities. It uses a dedicated acquisition team. It is either a majority owner alongside physicians or a minority owner with possible buy-up options. For new facilities it offers in-house capabilities for structuring partnerships and financing, and it works with architects and construction firms. Marketing is aimed at physicians and at private insurance payors, which the corporate managed care team approaches for contracts.

Rules it works under

The company says it depends on government and private insurance sources of payment. Continued Medicare participation depends on compliance with regulations from the Department of Health and Human Services. It operates in 21 states that have certificate of need laws, which can require approval to build, acquire or expand facilities. Facilities must meet state licensing requirements, and the majority were accredited by either The Joint Commission or the Accreditation Association for Ambulatory Health Care. The filing also describes the federal Anti-Kickback Statute, the Stark Law, HIPAA privacy and security rules and the Emergency Medical Treatment and Active Labor Act as applying to its arrangements with physicians and its hospitals. It runs a company-wide compliance program with training for employees involved in patient care, coding and billing.

Its people

None of the roughly 16,000 employees is covered by a collective bargaining agreement. Most physicians who use the facilities are not employees and are not contractually required to use them. The company generally has contracts with physicians only through partnership and operating agreements, anesthesiology service agreements and medical director agreements. It competes with hospitals and other facilities for physicians, nurses and medical staff, and it notes that nurse and medical support availability is an operating issue in several markets.

*From Surgery Partners's annual report on Form 10-K for the year ended 31 December 2025. [The filing](https://www.sec.gov/Archives/edgar/data/1638833/000163883326000008/sgry-20251231.htm)*

From the company's 10-K.