Surgery Partners' Revenue Surges, but Net Loss Widens in Q4

BRENTWOOD, Tenn. — surgery partners, Inc. (NASDAQ:SGRY), a leading short-stay surgical facility owner and operator, reported strong revenue growth in the fourth quarter of 2024, but a widening net loss. The company's revenue increased 17.5% year-over-year to $864.4 million, while its net loss attributable to common stockholders widened to $108.5 million from a loss of $1.0 million in the same period last year.

The company's same-facility revenues increased 5.6% in the fourth quarter, driven by a 0.5% increase in revenue per case and a 5.1% increase in same-facility cases. For the full year 2024, Surgery Partners' revenue increased 13.5% to $3.1 billion, and its same-facility revenues increased 8.0% compared to the same period in 2023.

However, the company's net loss widened due to a non-cash valuation allowance against its deferred tax assets as a result of a technical accounting requirement. Additionally, while revenue grew, the company's Adjusted EBITDA margin decreased slightly, suggesting that costs may have increased or profitability may have been lower.

Surgery Partners' Chief Executive Officer, Eric Evans, stated, "We are pleased to report another year of mid-teens growth, while continuing to expand margin. Our 2024 results are a continuation of the Company's consistent and predictable organic growth, with same-facility revenue growth of 8.0%. During 2024 we deployed nearly $400 million on accretive acquisitions and opened eight de novo facilities to further expand our portfolio of high quality, short-stay surgical facilities offering exceptional value to our patients, health plans, and the communities we serve."

The company's Chief Financial Officer, dave Doherty, commented, "We are pleased to deliver these fourth quarter and full year results, which reflect our disciplined management approach, strong underlying business fundamentals and the benefits of our multi-year growth investments. We enter 2025 with a liquidity position of over $770 million, which enhances our confidence and ability to continue to fund accretive M&A without the need to access the capital markets."

Surgery Partners' guidance for 2025 reflects its confidence in the company's growth prospects, with expected revenue in the range of $3.30 billion to $3.45 billion and Adjusted EBITDA in the range of $555 million to $565 million. The company's strong revenue growth and strategic initiatives, such as acquisitions and de novo facility openings, position it well for continued success in the future. However, investors should be aware of the potential risks and challenges, such as the widening net loss and uncertainty surrounding the company's future profitability.