SGRY · Surgery Partners, Inc.

Surgery Partners, Inc. delivered Q1 2026 results with revenues of $810.9 million, up 4.5% year-over-year, primarily driven by 4.4% same-facility revenue growth comprising 0.6% case volume increase and 3.8% revenue per case improvement. Despite total cases declining to 157,711 from 160,300, same-facility metrics remained resilient with consistent workdays. Adjusted EBITDA of $102.3 million slightly trailed prior year's $103.9 million, yielding a 12.6% margin versus 13.4%, reflecting pressures from higher operating expenses including salaries, supplies, and transaction costs of $15.6 million. Net loss attributable to common stockholders narrowed to $35.9 million from $37.7 million, with diluted EPS at $(0.28). CEO Eric Evans highlighted solid same-store growth aligning with expectations, cost discipline, physician recruitment of ~140 new recruits, and portfolio optimization toward core short-stay surgical model. CFO Dave Doherty emphasized results meeting expectations, improving free cash flow focus, and leverage reduction, with net debt to EBITDA at 4.3x. Liquidity stood strong at $182.3 million cash plus $666.1 million revolver capacity. The company reaffirmed full-year 2026 guidance for $3.35-3.45 billion revenue and at least $530 million Adjusted EBITDA, signaling confidence amid market dynamics, with Q2 expected at 24.0-24.5% of annual revenue midpoint and 23.0-23.5% of EBITDA. Surgical facilities expanded to 180 from 164 year-end 2025.