Monitor the Idaho Falls divestiture closing timeline and physician approvals — successful completion would de-lever and improve organic growth optics. With revenue growth decelerating to 2.7% and Adjusted EBITDA declining, the stock may trade range-bound until H2 shows operating leverage or case volume improves.
Price Chart
Executive Summary
Surgery Partners reported Q2 2026 revenue of $848.9M (+2.7% YoY) and adjusted EPS of $0.10, beating consensus of $0.07 by ~49%. Same-facility revenue grew 5.0% on 4.8% rate growth, but total case volume was flat and Adjusted EBITDA declined YoY to $125.2M from $129.0M. Full-year guidance was reaffirmed at $3.35B-$3.45B revenue and $530M+ Adjusted EBITDA, excluding a pending Idaho Falls divestiture that would improve leverage and cash conversion.
Key Financial Metrics
Key Facts
- Q2 2026 revenue grew 2.7% YoY to $848.9M (vs $826.2M), slightly above $830.3M consensus
- Adjusted EPS was $0.10 (consensus $0.07), a 49.4% beat; GAAP net loss attributable to common was $15.0M (improved from -$2.5M a year ago)
- Adjusted EBITDA was $125.2M, down 2.9% from $129.0M in Q2 2025; margin contracted to 14.7% from 15.6%
- Same-facility revenue grew 5.0% driven by 4.8% revenue per case; same-facility case volume was +0.3%
- Total consolidated surgical cases declined 2.9% YoY to 167,866 (from 172,858)
- Full-year 2026 guidance reiterated: revenue $3.35B-$3.45B, Adjusted EBITDA at least $530M (excludes pending Idaho Falls divestiture)
- Pending Idaho Falls divestiture would reduce leverage; 2026 pro forma organic Adj. EBITDA growth target is 5.3%+ excluding that market
- Cash flow from operations was $59.3M vs $81.3M in Q2 2025; total net debt/EBITDA was 4.4x
Financial Impact
Revenue beat consensus by $18.6M (2.2%); adjusted EPS beat by $0.03 (49.4%); full-year guidance approximately $3.4B midpoint implies H2 revenue ~$1.74B
Risk Factors
- Total case volume declining 2.9% YoY suggests market share or utilization headwinds
- Adjusted EBITDA margin compression (14.7% vs 15.6%) despite revenue growth
- Pending Idaho Falls divestiture subject to physician and regulatory approvals — risk of delay or failure
- Net debt/EBITDA of 4.4x limits financial flexibility
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 7 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001638833-26-000074 |
| Document: sgry-20260810.htm | 0001638833-26-000074 |
| Document: q22026earningspresentati.htm | 0001638833-26-000074 |
| Document: 0001638833-26-000074-index-headers.html | 0001638833-26-000074 |
| Document: 0001638833-26-000074-index.html | 0001638833-26-000074 |
| Document: 0001638833-26-000074.txt | 0001638833-26-000074 |
| 8-K Data (Synthetic) | 0001638833-26-000074 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 26, 2026 today | DEFA14A | $23.32 | awaiting T+5 | — | $23.25 (−0.30%) |
Oct 26, 2026 today | SC 13D/A | $19.47 | awaiting T+5 | — | $23.25 (+19.41%) |
Oct 26, 2026 today | DEFA14A | $19.47 | awaiting T+5 | — | $23.25 (+19.41%) |
Oct 26, 2026 today | 8-K | $19.47 | awaiting T+5 | — | $23.25 (+19.41%) |
Oct 13, 2026 13d ago | SC 13G | $14.83 $15.40 | ▲ +3.84% | ▲ +3.39% | $23.25 (+56.78%) |
Sep 17, 2026 5w ago | 8-K | $13.35 $14.20 | ▲ +6.37% | ▲ +5.77% | $23.25 (+74.16%) |
Sep 17, 2026 5w ago | Press Release | $13.35 $14.20 | ▲ +6.37% | ▲ +5.52% | $23.25 (+74.16%) |
Aug 20, 2026 9w ago | Insider Buy | $14.52 $13.69 | ▼ −5.72% | ▼ −6.19% | $23.25 (+60.12%) |
Aug 10, 2026 11w ago | 8-K | $15.95 $14.36 | ▼ −9.97% | ▼ −9.92% | $23.25 (+45.77%) |
Aug 10, 2026 11w ago | Press Release | $15.95 $14.36 | ▼ −9.97% | ▼ −9.92% | $23.25 (+45.77%) |
US Market Status
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