SGRY Plunges 25.81% to 2020 Low as Earnings Miss and Guidance Cut Spark Sell-Off

The share price fell to its lowest level since August 2020 today, with an intraday decline of 25.81%.

Surgery Partners Inc. (SGRY) shares plunged amid a string of operational setbacks and revised financial forecasts. The company reported third-quarter earnings of $0.13 per share, missing estimates by 31.58%, and cut full-year 2025 revenue guidance to $3.275–$3.3 billion, below the prior $3.353 billion consensus. Adjusted EBITDA guidance was similarly reduced to $535–$540 million, reflecting softer procedure volumes, adverse payer mix trends, and rising operating costs. Despite 6.6% year-over-year revenue growth, the earnings shortfall and downgraded projections triggered a sharp sell-off.

The stock’s volatility underscores sector-specific risks, including macroeconomic pressures and competitive pricing dynamics in the surgical facilities industry. While orthopedic procedures remain a key growth driver, the company’s margin compression—evidenced by a dip in adjusted EBITDA margins to 16.6%—raises concerns about sustainability. Analysts note that SGRY’s performance lags peers like Auna S.A., which projects stronger year-over-year revenue growth. With cash reserves of $203.4 million and $405.9 million in borrowing capacity, Surgery Partners retains liquidity, but near-term guidance suggests a challenging path to restoring investor confidence.