Surgery Partners misses, issues guidance

 

Surgery Partners misses EBITDA expectations, issues muted 2026 guidance and authorizes $200M share repurchase program

• Q4 2025 non-GAAP EPS $0.12 (-73% YoY) missed estimates, while revenue $885.0M (+2% YoY) beat.
• 2025 revenue $3.3B (+6.2% YoY) at low end of expectations, with full-year EBITDA below plan.
• Q4 adjusted EBITDA $156.9M, margin 17.7%, and full-year EBITDA $526M with margin down 40 bps.
• Weak quarter with earnings shortfall concentrated in three surgical hospital markets facing weaker volumes, worse payer mix and anesthesia costs.
• Commercial payer mix fell 120 bps for 2025 and 370 bps in Q4, pressuring margins.
• 2026 guidance: revenue $3.35–$3.45B and adjusted EBITDA ≥$530M, implying low-single-digit EBITDA growth and slight margin compression

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