Surgery Partners 2025 Q3 Earnings Net Income Surges 295.3%

Surgery Partners (SGRY) reported fiscal 2025 Q3 earnings on Nov 11, 2025, with revenue rising 6.6% to $821.50 million—slightly below estimates—while net income surged 295.3% to $25.30 million. The company cut full-year guidance due to softer procedure volumes and unfavorable payer mix trends, signaling near-term challenges despite robust surgical demand.

Revenue

Surgery Partners’ total revenue reached $821.50 million in Q3 2025, reflecting a 6.6% year-over-year increase. The Surgical Facility Services segment drove this growth, contributing the entire revenue amount. This performance highlights the company’s reliance on its core outpatient surgical model amid industry-wide volume pressures.

Earnings/Net Income

The company narrowed its loss to $0.18 per share, a 28.0% improvement from $0.25 in 2024 Q3. Net income surged to $25.30 million, a 295.3% increase, underscoring stronger profitability despite operational headwinds. This turnaround demonstrates improved cost management and strategic focus on high-margin procedures.

Post-Earnings Price Action Review

Following the earnings release, Surgery Partners’ stock plummeted 28.43% during the most recent full trading week and 20.24% month-to-date. The 2.69% decline on the latest trading day reflected investor concern over revised guidance and margin pressures.

CEO Commentary

Eric Evans, CEO, attributed the revenue growth to strong orthopedic procedure demand but acknowledged challenges in volume trends and payer mix. He emphasized disciplined M&A execution, stating, “We have a strong pipeline and expect to return to normal M&A flow moving forward.” The CEO also highlighted de novo facility opportunities, particularly in high-acuity specialties, as key growth drivers.

Guidance

Surgery Partners revised full-year 2025 revenue guidance to $3.275–$3.30 billion, below prior estimates of $3.38 billion. Adjusted EBITDA guidance now stands at $535–$540 million. The company anticipates same-facility revenue growth near the midpoint of 4–6% for the year, reflecting cautious optimism about volume recovery.

Additional News

Surgery Partners disclosed a robust M&A pipeline exceeding $300 million in active opportunities, underscoring its acquisition-driven growth strategy. The CEO reiterated a disciplined approach to capital deployment, prioritizing high-impact deals. Additionally, the company announced a portfolio optimization initiative, focusing on markets aligned with its short-stay surgery ethos. These efforts aim to strengthen the balance sheet and accelerate expansion in orthopedic and gastrointestinal specialties.