Surgery Partners, Inc. (NASDAQ:SGRY) reported second-quarter earnings that surpassed analyst estimates on Tuesday, with adjusted earnings per share of $0.17, beating forecasts by $0.01. Revenue rose 8.4% year-over-year to $826.2 million, exceeding the consensus estimate of $819.45 million.
The short-stay surgical facility operator saw same-facility revenues increase 5.1%, driven by a 3.4% rise in same-facility cases and a 1.6% increase in revenue per case. Adjusted EBITDA grew 9.0% to $129.0 million, with margins slightly improving to 15.6% from 15.5% the previous year.
“We are proud to report strong growth in Adjusted EBITDA and revenue, demonstrating the strength of our operational strategy as we capitalize on the continued momentum in the ambulatory surgery industry,” said Eric Evans, Chief Executive Officer. “Our growth is the result of a relentless focus on excellence and differentiation in our core short-stay surgical service lines.”
Surgery Partners reaffirmed its full-year 2025 guidance, forecasting revenue between $3.30 billion and $3.45 billion and Adjusted EBITDA of $555 million to $565 million. The midpoint of revenue guidance, $3.375 billion, aligns with analyst consensus of $3.37 billion.
Dave Doherty, Chief Financial Officer, added, “The results we report today are very much aligned with our internal expectations and give us confidence in reaffirming our guidance for the full year. Our guidance implies continued margin expansion.”
The company finished the quarter with $250.1 million in cash and cash equivalents and $394.9 million in borrowing capacity under its revolving credit facility. The total net debt to EBITDA ratio stood at about 4.1x at quarter-end.
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