Surgery Partners — Financial Results
Revenue Growth Is Steady, Driven by More Cases and Higher Prices Per Case
| Metric | 2025 | 2024 | Change |
|---|---|---|---|
| Total revenues | $3,308.7M | $3,114.3M | +6.2% |
| Same-facility revenue growth | — | — | +4.9% |
| Same-facility case volume growth | — | — | +3.4% |
| Revenue per case growth | — | — | +1.4% |
Total revenues grew to $3.3 billion, with the majority of that growth coming from existing facilities rather than just acquisitions. Both more patients coming through the door and slightly higher revenue collected per procedure contributed. This suggests the underlying business is genuinely expanding, not just growing on paper through deal-making.
Profitability Is Improving, but Interest Costs Are Eating Into Gains
| Metric | 2025 | 2024 |
|---|---|---|
| Adjusted EBITDA (operating profit before non-cash and one-time items) | $526.2M | $508.2M |
| Interest expense, net | $272.6M | $201.7M |
| Net loss attributable to Surgery Partners | $(77.9M) | $(168.1M) |
Adjusted EBITDA — a measure of recurring operating profit — grew 3.5% to $526.2 million. However, net interest expense jumped 35% to $272.6 million, largely because interest rate hedges (contracts that capped borrowing costs) expired in March 2025 and the company raised additional debt in 2024. The good news is that the net loss narrowed substantially from $168.1 million to $77.9 million, partly due to a much smaller tax charge in 2025.
The Company Carries a Heavy Debt Load With $5.7 Billion in Obligations
Total long-term debt obligations, including interest, stand at $5.74 billion. In August 2025, Surgery Partners refinanced $1.4 billion of existing term loans, extending their maturity to December 2030, which reduces near-term repayment pressure. The company also issued an additional $425 million in senior unsecured notes (bonds not backed by specific assets) in December 2025. With only $239.9 million in cash on hand and $692.8 million available on its credit line, managing this debt load remains a central financial priority.
Costs Are Rising Slightly Faster Than Revenue
Cost of revenues as a percentage of total revenues edged up from 76.1% to 76.9%. The company attributes this to a shift toward higher-complexity procedures, which cost more to perform. On the positive side, general and administrative (G&A) expenses fell from $138.7 million to $118.2 million — dropping from 4.5% to 3.6% of revenues — driven by lower executive incentive compensation. The two trends partially offset each other.
Acquisitions Continue at a Measured Pace
Surgery Partners acquired controlling interests in 12 surgical facilities plus several physician practices in 2025, spending $162.1 million net of cash acquired — notably less than recent years. Cash used in investing activities fell to $246.6 million from $488.5 million in 2024. This more disciplined acquisition pace, combined with higher proceeds from facility sales, suggests the company is prioritizing integration and portfolio quality over rapid expansion.
New Healthcare Legislation Noted but Not Expected to Materially Hurt Results
The One Big Beautiful Bill Act, passed July 4, 2025, introduces cuts to Medicaid and Medicare spending and adds regulatory requirements. Management has assessed the impact and does not expect it to materially affect the company's financials. Investors should note, however, that government payors now represent 42.8% of patient service revenue — up from 41.1% in 2024 — so any future reimbursement rate reductions in those programs would have a meaningful effect.