Surgery Partners, Inc. (NASDAQ:SGRY) shares tumbled more than 11% in premarket trading Monday after the company cut its full-year 2025 outlook and reported third-quarter results that fell short of analyst expectations.
The short-stay surgical facility operator posted adjusted earnings of $0.13 per share, missing the consensus estimate of $0.21. Revenue came in at $821.5 million, slightly below projections of $821.86 million, though it still marked a 6.6% year-over-year increase. Same-facility revenue grew 6.3% compared to the prior year.
Surgery Partners sharply revised its 2025 full-year guidance, now forecasting revenue between $3.275 billion and $3.30 billion, down from the analyst consensus of $3.353 billion. The company expects adjusted EBITDA in the range of $535 million to $540 million.
“Considering that volume and payor mix trends were softer than anticipated, coupled with this year’s delayed cadence of capital deployment activities, we have revised our full-year guidance to reflect a prudent approach to the fourth quarter,” said Dave Doherty, Chief Financial Officer.
Despite the weaker guidance, CEO Eric Evans emphasized that the company continues to make operational progress:
“We are proud to report another quarter of solid execution, with revenue and Adjusted EBITDA growth reflecting continued progress in line with our long-term growth algorithm. The continued strength in orthopedic procedures underpinning our topline growth reinforces our leading positioning within the industry.”
For the quarter, Surgery Partners reported a net loss of $22.7 million, while adjusted EBITDA increased 6.1% to $136.4 million, representing a margin of 16.6%, down slightly from 16.7% a year earlier.
The company ended the quarter with $203.4 million in cash and cash equivalents and $405.9 million in available borrowing capacity under its revolving credit facility, maintaining financial flexibility despite near-term challenges.