Q4 2025 Surgery Partners Inc Earnings Call Transcript
Key Points
- Surgery Partners Inc (SGRY) reported a full year net revenue of $3.3 billion, up 6.2% year over year.
- The company performed nearly 670,000 surgical cases in 2025, showing a 2% increase from 2024.
- There was strong growth in orthopedic cases, with total joint replacements growing 15% in Q4 and 19% year-to-date.
- Surgery Partners Inc (SGRY) opened eight de novo facilities in 2025, expanding their presence in high-growth markets.
- The company has a strong pipeline for M&A and plans to deploy at least $200 million towards acquisitions in 2026.
- Full year adjusted EBITDA was $526 million, which was below expectations and reflected a margin compression of 40 basis points.
- The company faced significant headwinds in the second half of the year, particularly in three surgical hospital markets.
- There was a decline in commercial payer mix, with a shift towards a higher proportion of Medicare patients.
- Surgery Partners Inc (SGRY) experienced higher labor and anesthesia costs, which contributed to margin pressure.
- Operating cash flows in 2025 were lower than in 2024, primarily due to higher interest costs on corporate debt.
Greetings and welcome to the Surgery Partners Q4 and full year 2025 earnings call.
(Operator Instructions)
Please note this conference is being recorded. I will now turn the conference over to your host, Dave Doherty, CFO. Please go ahead.
Good morning and welcome to Surgery Partners Q4 and full year 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 as described in yesterday's press release and the reports we filed 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 referenced certain financial measures that are non-GAAP, which we believe can be useful in evaluating our performance. These measures are reconciled to the most applicable GAAP measure in yesterday's press release
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