Short answer
Surgery Partners, Inc. (SGRY) filed its fiscal 2025 10-K annual report with the SEC on Mar 2, 2026. It reported revenue of $3.3B (+6.2% year over year) and net income of −$78M.
- Top risk flagged: Regulatory risk from One Big Beautiful Bill Act (OBBBA), effective July 4, 2025, increasing Medicaid and Medicare regulatory burdens
FY2025 key financial metrics · XBRL
- Revenue
- $3.3B
- +6.2% YoY
- Net income
- −$78M
- +53.7% YoY
- Operating margin
- 11.8%
- +0.6 pp YoY
- EPS (diluted)
- −$0.61
- +54.1% YoY
- ROE
- -4.5%
- +4.8 pp YoY
- Operating cash flow
- $274M
- −8.6% YoY
Source: XBRL data from the Surgery Partners, Inc. (SGRY) FY2025 10-K on SEC EDGAR. USD.
Surgery Partners, Inc. FY2025 10-K analysis
AI summary of each section, grounded in the filing text
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
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