Surgery Partners, Inc. (SGRY) FY2025 10-K Annual Report

Filed: Mar 2, 2026
Health Care
Services-General Medical & Surgical Hospitals, NECSEC EDGAR

Surgery Partners, Inc. (SGRY) 10-K annual report for fiscal year 2025, filed with SEC EDGAR on Mar 2, 2026. This page provides AI-powered analysis including business overview, management discussion & analysis (MD&A), risk factors, and key financial data such as revenue, net income, gross margin, operating margin, and return on equity (ROE) extracted from XBRL.

Surgery Partners, Inc. FY2025 10-K Analysis

Business Overview

  • Core business: Management and operation of surgical facilities primarily focused on outpatient surgical procedures
  • New emphasis: Increased revenue diversification from management and administrative services in non-owned surgical facilities
  • Strategic shift: Improved operational efficiency reflected in decreased general and administrative expenses ratio, from 4.5% in 2024 to 3.6% in 2025
  • Quantitative metric: Revenue growth to $3.31 billion in 2025, up 6.3% from $3.11 billion in 2024, driven by 3.4% volume and 1.4% revenue per case increases
  • Noteworthy fact: Significant increase in interest expense to $272.6 million (8.2% of revenues) due to maturity of interest rate swaps and new unsecured notes

Management Discussion & Analysis

  • Adjusted EBITDA $526.2M in 2025 vs $508.2M in 2024, income before taxes $116.9M vs $147.1M in 2024
  • Operating cash flow $274.3M in 2025, Credit Agreement EBITDA $578.2M reflecting acquisitions and synergies
  • Refinanced $1.4B term loans with interest rate ~6.22%, issued $425M senior unsecured notes due 2032 at 101%
  • Net working capital $535.2M at Dec 31, 2025 vs $495.0M in 2024, total debt obligations $5.7B including interest
  • Management highlights economic risks: interest rate inflation could pressure payor mix, patient volume and liquidity; expects capital markets access to meet liquidity needs

Risk Factors

  • Regulatory risk from One Big Beautiful Bill Act (OBBBA), effective July 4, 2025, increasing Medicaid and Medicare regulatory burdens
  • Macroeconomic exposure to government payors, comprising 42.8% of patient service revenues in 2025
  • Operational risk tied to partnership model with physicians owning majority in 86 of 176 surgical facilities
  • Competitive threat from decline in ophthalmology cases, dropping from 24.4% to 21.7% of surgical mix 2023-2025
  • Financial leverage risk with $692.8 million borrowing capacity under Revolver and $239.9 million cash holdings as of 12/31/2025

Surgery Partners, Inc. FY2025 Key Financial Metrics
XBRL

Revenue

$3.3B

+6.2% YoY

Net Income

-$78M

+53.7% YoY

Operating Margin

11.8%

+57bp YoY

Net Margin

-2.4%

+304bp YoY

ROE

-4.5%

+484bp YoY

Total Assets

$8.1B

+2.9% YoY

EPS (Diluted)

$-0.61

+54.1% YoY

Operating Cash Flow

$274M

-8.6% YoY

Source: XBRL data from Surgery Partners, Inc. FY2025 10-K filing on SEC EDGAR. All figures in USD.

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