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