Surgery Partners 2025 Q2 Earnings Strong Performance as Net Income Surges 58.1%

Surgery Partners (SGRY) reported its fiscal 2025 Q2 earnings on Aug 05th, 2025. The company delivered results that exceeded expectations, significantly narrowing its losses and increasing net income. Full-year guidance was reaffirmed, reflecting confidence in the business's momentum and strategic execution.

Surgery Partners reported a 8.4% year-over-year increase in total revenue, reaching $826.20 million in Q2 2025, compared to $762.10 million in the same period last year. The company’s Surgical Facility Services segment, which accounted for all of its total revenue, posted consistent growth driven by a 5.1% increase in same-facility revenue and a 3.4% increase in same-facility surgical cases. The 1.6% rise in revenue per case further supported the top-line performance.

Surgery Partners narrowed its net loss per share to $0.02 in Q2 2025, from $0.12 in the prior year period, reflecting a significant 83.3% improvement. The company’s net income surged to $44.90 million, a 58.1% increase from $28.40 million in Q2 2024. This marked a turnaround in profitability and underscored the company’s operational improvements. The improved earnings per share highlight a strong earnings performance and positive momentum.

Despite a slight decline in its stock price—down 1.60% during the latest trading day, 0.85% for the week, and 0.05% month-to-date—historical data suggests a successful post-earnings strategy. A strategy of buying SGRY when earnings beat and selling after 30 days delivered a 51.46% overall gain, with a CAGR of 8.72%. The approach demonstrated strong risk management, with a maximum drawdown of 0.00% and a Sharpe ratio of 0.16, despite a volatility of 55.84%. This balanced approach effectively captured value after earnings beats and showcased its robustness in managing risk and reward.

Eric Evans, CEO, emphasized the company's strong operational strategy and industry momentum, highlighting Adjusted EBITDA and revenue growth. He noted the company's focus on portfolio performance, surgical trends, and regulatory conditions, along with clinical quality and value. Evans outlined growth initiatives centered on excellence in core short-stay surgical services, including active evaluation of portfolio optimization opportunities to reduce leverage, accelerate cash flow, and enable self-funded growth post-strategic process.

The company reaffirmed its full-year 2025 guidance for revenue in the range of $3.30 billion to $3.45 billion and Adjusted EBITDA between $555 million and $565 million. Dave Doherty, CFO, stated the results align with internal expectations and support ongoing margin expansion through operating improvements, integration benefits from recent acquisitions, and contributions from new facility openings expected in 2025.

Additional news surrounding Surgery Partners includes recent financial and operational updates. The company's liquidity position remains strong, with $250.1 million in cash and $394.9 million of borrowing capacity as of June 30, 2025. Operating cash flow for Q2 stood at $81.3 million, slightly down from the prior year's $82.8 million due to increased cash interest payments. Year-to-date operating cash flows were $87.3 million, a decrease from $123.5 million in the prior year, driven by higher cash interest and working capital adjustments. The company’s total net debt-to-EBITDA ratio was 4.1x at the end of Q2, while leverage using consolidated debt to Adjusted EBITDA was 4.7x. Surgery Partners also held a conference call on Aug 5, 2025, at 8:30 AM ET, providing further transparency on its results and strategy.