Download PDF

1. Company Snapshot

1.a. Company Description

Surgery Partners, Inc., through its subsidiaries, owns and operates a network of surgical facilities and ancillary services in the United States.The company operates through two segments, Surgical Facility Services and Ancillary Services.Its surgical facilities comprise ambulatory surgery centers and surgical hospitals that offer non-emergency surgical procedures in various specialties, including gastroenterology, general surgery, ophthalmology, orthopedics, and pain management.


The company's surgical hospitals also provide ancillary services, such as diagnostic imaging, pharmacy, laboratory, obstetrics, oncology, physical therapy, and wound care; and ancillary services, which consist of multi-specialty physician practices, urgent care facilities, and anesthesia services.As of December 31, 2021, it owned or operated a portfolio of 126 surgical facilities, including 108 ambulatory surgical centers and 18 surgical hospitals in 31 states.Surgery Partners, Inc.


was founded in 2004 and is headquartered in Brentwood, Tennessee.

Show Full description

1.b. Last Insights on SGRY

Surgery Partners' recent performance was negatively impacted by weaker-than-expected quarterly earnings, with Q3 earnings of $0.13 per share missing the Zacks Consensus Estimate of $0.19 per share. An analyst downgrade by Mizuho, which lowered its price target from $28.00 to $22.00, also affected the stock. Additionally, a law firm, Pomerantz LLP, is investigating claims on behalf of investors, which may have contributed to the stock's decline. The company's revenue growth of almost 7% year-over-year was not enough to offset the negative sentiment.

1.c. Company Highlights

2. Surgery Partners' Q3 2025 Earnings: A Closer Look

Surgery Partners reported net revenue of $821.5 million for Q3 2025, a 6.6% increase year over year, with adjusted EBITDA of $136.4 million, up 6.1% year over year. The adjusted EBITDA margin was 16.6%. Same-facility revenue grew 6.3%, driven by over 166,000 surgical cases in consolidated facilities. The company's EPS was $0.13, missing estimates of $0.19. The revenue growth was largely driven by volume growth in GI and MSK procedures.

Publication Date: Nov -15

📋 Highlights
  • Revenue and EBITDA Growth:: Net revenue rose 6.6% to $821.5M YoY, with adjusted EBITDA up 6.1% to $136.4M (16.6% margin), driven by 6.3% same-facility revenue growth and over 166,000 surgical cases.
  • Capital Deployment:: $71M in acquisitions YTD vs $250M annual target, while selling 3 ASCs at $50M enterprise value, with $11M annualized earnings impact from divestitures.
  • Revised Full-Year Guidance:: Revenue now projected at $3.275B–$3.3B (vs prior) and adjusted EBITDA at $535M–$540M, reflecting softer same-facility growth and payer mix pressures.
  • De Novo Expansion:: 9 new facilities operational and 12 in development, with management targeting double-digit growth in de novo opportunities.
  • EBITDA Guidance Reduction Drivers:: $20M midpoint cut attributed to 60% timing (acquisition/divestiture timing) and 40% commercial volume growth softness.

Operational Highlights

The company has been actively engaged in mergers and acquisitions, deploying approximately $71 million in capital for acquisitions year to date. It has also divested interests in three ASCs at an enterprise value of $50 million. Management is focused on disciplined capital employment, operational excellence, and strategic initiatives that position it for sustainable growth and shareholder value creation.

Guidance Revision

Due to softer-than-expected same-facility volume growth and payer mix, the company revised its full-year guidance, expecting revenue in the range of $3.275 billion to $3.3 billion and adjusted EBITDA in the range of $535 million to $540 million. Same-facility revenue growth for the full year is now expected to be closer to the midpoint of the long-term target range of 4% to 6%.

Valuation Insights

With a P/E Ratio of -11.32 and an EV/EBITDA of 3.85, the market's expectations for the company's future growth are somewhat muted, possibly reflecting concerns over the recent slowdown in same-facility volume growth. Analysts estimate next year's revenue growth at 8.3%, which could potentially lead to a re-rating if achieved. The company's current valuation metrics suggest that it is trading at a reasonable multiple relative to its EBITDA.

Growth Prospects

The company is progressing with its de novo efforts, with nine new facilities and a dozen in development. It expects double-digit growth in de novo opportunities. The recruitment of over 500 physicians year-to-date, with a higher mix of orthopedic surgeons, is also expected to drive growth. These new surgeons typically see a doubling of their business in year two and continued growth in year three.

Payer Mix and Volume Growth

The company faced pressure from payers, particularly in employer-based coverage, which impacted its commercial volume growth trend. However, it expects volume and rate growth in the fourth quarter. Management is monitoring consumer behavior and potential impacts on patient volumes due to deductible resets and benefit design changes.

Portfolio Optimization

The company is focusing on optimizing its portfolio to maximize shareholder value. This involves evaluating assets and determining if they can generate the believed value. The goal is to reduce leverage and improve cash flow conversion. A sale or partnership-based model could achieve these goals, with the potential to move to an unconsolidated position, reducing leverage.

3. NewsRoom

Card image cap

Groupe la Francaise Boosts Holdings in Surgery Partners, Inc. $SGRY

Dec -04

Source: defenseworld.net

Card image cap

Analyzing Elevance Health (NYSE:ELV) and Surgery Partners (NASDAQ:SGRY)

Nov -21

Source: defenseworld.net

Card image cap

INVESTOR ALERT: Pomerantz Law Firm Investigates Claims On Behalf of Investors of Surgery Partners, Inc. - SGRY

Nov -20

Source: prnewswire.com

Card image cap

Surgery Partners (NASDAQ:SGRY) Sets New 12-Month Low After Analyst Downgrade

Nov -18

Source: defenseworld.net

Card image cap

Stock Traders Buy Large Volume of Surgery Partners Put Options (NASDAQ:SGRY)

Nov -15

Source: defenseworld.net

Card image cap

Surgery Partners (NASDAQ:SGRY) Hits New 12-Month Low Following Weak Earnings

Nov -12

Source: defenseworld.net

Card image cap

Why Surgery Partners Stock Plummeted on Monday

Nov -10

Source: fool.com

Card image cap

Surgery Partners, Inc. (SGRY) Q3 2025 Earnings Call Transcript

Nov -10

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.80%)

6. Segments

Surgical Facility Services

Expected Growth: 7.8%

Growing demand for outpatient surgical care, increasing focus on cost-effective and patient-centric services, and advancements in medical technology drive the growth of Surgical Facility Services from Surgery Partners, Inc.

Ancillary Services

Expected Growth: 7.8%

Growing demand for outpatient surgical procedures, increasing need for ancillary services, and expansion of Surgery Partners' ambulatory surgical centers drive growth in ancillary services segment.

7. Detailed Products

Ambulatory Surgery Centers

Surgery Partners, Inc. operates ambulatory surgery centers that provide outpatient surgical procedures in a variety of specialties, including orthopedics, ophthalmology, and general surgery.

Physician Practices

The company owns and operates physician practices that provide medical services to patients, including primary care, specialty care, and surgical services.

Urgent Care Centers

Surgery Partners, Inc. operates urgent care centers that provide immediate, non-emergency care for acute illnesses and injuries.

Optical Services

The company provides optical services, including eye exams, glasses, and contact lenses, through its optical centers.

Anesthesia Services

Surgery Partners, Inc. provides anesthesia services to patients undergoing surgical procedures.

8. Surgery Partners, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Surgery Partners, Inc. is moderate due to the presence of alternative healthcare providers and medical facilities.

Bargaining Power Of Customers

The bargaining power of customers is low for Surgery Partners, Inc. as patients often rely on healthcare providers for medical services and have limited negotiating power.

Bargaining Power Of Suppliers

The bargaining power of suppliers is moderate for Surgery Partners, Inc. as the company relies on medical suppliers and equipment providers, but has some negotiating power due to its size and scale.

Threat Of New Entrants

The threat of new entrants is high for Surgery Partners, Inc. as the healthcare industry is highly competitive and new entrants can easily enter the market.

Intensity Of Rivalry

The intensity of rivalry is high for Surgery Partners, Inc. as the healthcare industry is highly competitive and companies must compete for patients and market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 51.90%
Debt Cost 7.42%
Equity Weight 48.10%
Equity Cost 17.67%
WACC 12.35%
Leverage 107.92%

11. Quality Control: Surgery Partners, Inc. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Amedisys

A-Score: 5.2/10

Value: 4.0

Growth: 4.6

Quality: 6.9

Yield: 0.0

Momentum: 6.0

Volatility: 10.0

1-Year Total Return ->

View Full Report
Stock-Card
Option Care Health

A-Score: 4.4/10

Value: 4.5

Growth: 7.3

Quality: 5.2

Yield: 0.0

Momentum: 3.0

Volatility: 6.7

1-Year Total Return ->

View Full Report
Stock-Card
Chemed

A-Score: 4.2/10

Value: 2.9

Growth: 6.1

Quality: 7.3

Yield: 0.0

Momentum: 1.0

Volatility: 7.7

1-Year Total Return ->

View Full Report
Stock-Card
Agilon Health

A-Score: 3.5/10

Value: 9.6

Growth: 6.1

Quality: 4.4

Yield: 0.0

Momentum: 0.0

Volatility: 1.0

1-Year Total Return ->

View Full Report
Stock-Card
Surgery Partners

A-Score: 3.1/10

Value: 5.9

Growth: 4.2

Quality: 2.2

Yield: 0.0

Momentum: 1.5

Volatility: 4.7

1-Year Total Return ->

View Full Report
Stock-Card
Acadia Healthcare

A-Score: 3.0/10

Value: 5.6

Growth: 4.1

Quality: 4.8

Yield: 0.0

Momentum: 0.0

Volatility: 3.3

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

17.18$

Current Price

17.18$

Potential

-0.00%

Expected Cash-Flows