Q2 2025 Surgery Partners Inc Earnings Call Transcript
Key Points
- Surgery Partners Inc (SGRY) reported second quarter net revenue of $826 million and adjusted EBITDA of $129 million, both in line with expectations.
- The company achieved a 9% growth in adjusted EBITDA and an 8.5% increase in net revenue compared to the prior year's second quarter.
- Same-facility revenue growth was over 5%, with surgical case growth of 3.4% and rate growth of 1.6%.
- Surgery Partners Inc (SGRY) performed nearly 173,000 surgical cases in the second quarter, with significant growth in GI and MSK procedures, including a 26% increase in total joint procedures.
- The company has invested in 69 surgical robots and added nearly 300 new physicians in the first half of 2025, enhancing its capability to perform higher acuity procedures.
- The pace of acquisitions has been slower than anticipated, with only $66 million deployed so far in 2025, impacting the company's ability to reach the higher end of its EBITDA guidance.
- Interest expenses increased by $23 million in the second quarter due to the expiration of interest rate swaps, affecting operating cash flows.
- The company faces challenges in achieving its full-year same-facility growth target of 6%, with first-half growth tracking at around 5%.
- Transaction and integration costs were $18 million in the second quarter, although this represents a 27% sequential decrease.
- Surgery Partners Inc (SGRY) is exploring portfolio optimization, which may involve divesting certain assets or forming partnerships, indicating potential strategic uncertainties.
Good day, and welcome to the Surgery Partners, Inc. Second Quarter 2025 Earnings Conference Call. (Operator Instructions) Please note this event is being recorded.
I would now like to turn the conference over to Dave Doherty, Chief Financial Officer. Please go ahead.
Good morning, and thank you for joining Surgery Partners Second Quarter 2025 Earnings Call. I am joined today by Eric Evans, our CEO.
During this call, we will make forward-looking statements. There are risk factors that could cause future results to be materially different from these statements that are described in this morning's press release and the reports we file with the SEC, each of which are available on our corporate website. The company does not undertake any duty to update these forward-looking statements.
In addition, we reference certain financial measures that are non-GAAP, which we believe can be useful in evaluating our performance. We reconciled these measures to
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