The reaffirmed guidance provides a floor, but the declining Adjusted EBITDA and margin compression suggest ongoing operational headwinds. Monitor the Q2 2025 earnings for signs of margin stabilization and whether the 4.2%+ organic Adjusted EBITDA growth target for 2026 remains achievable. The $200M share repurchase authorized in February 2026 may provide some support, but leverage at 4.3x limits financial flexibility.
Price Chart
Executive Summary
Surgery Partners reported Q1 2026 revenue of $810.9M (+4.5% YoY), slightly above the $797.9M consensus, but GAAP net loss attributable to common stockholders widened to -$35.9M (vs -$37.7M in Q1 2025) and GAAP EPS was -$0.28, well below the Street consensus of -$0.17. Adjusted EBITDA declined to $102.3M from $103.9M a year ago, and adjusted net income per share turned negative at -$0.03 vs +$0.04 in Q1 2025. The company reaffirmed full-year 2026 guidance of $3.35B-$3.45B revenue and at least $530M Adjusted EBITDA, but the lack of upward revision combined with declining profitability metrics makes this a neutral-to-slightly-negative report.
Key Financial Metrics
Key Facts
- Q1 2026 revenue $810.9M, +4.5% YoY vs $776.0M in Q1 2025
- GAAP net loss attributable to Surgery Partners -$35.9M vs -$37.7M in Q1 2025
- GAAP diluted EPS -$0.28 vs -$0.30 in Q1 2025
- Adjusted EBITDA $102.3M vs $103.9M in Q1 2025, a decline of 1.5%
- Adjusted EBITDA margin contracted to 12.6% from 13.4% in Q1 2025
- Same-facility revenue growth +4.4%, same-facility case growth +0.6%
- Full-year 2026 guidance reaffirmed: revenue $3.35B-$3.45B, Adjusted EBITDA at least $530M
- Cash and cash equivalents $182.3M, down from $239.9M at Dec 31, 2025
- Total net debt to EBITDA ratio remained at 4.3x
- Operating cash flow improved to $11.7M from $6.0M in Q1 2025
Financial Impact
Revenue beat consensus by ~1.6% ($810.9M vs $797.9M est), but GAAP EPS of -$0.28 missed the Street consensus of -$0.17. Adjusted EBITDA declined YoY.
Risk Factors
- Adjusted EBITDA declining YoY despite revenue growth indicates margin pressure
- Provider tax and Medicaid pressures cited as headwinds for 2026 guidance
- High leverage (4.3x net debt/EBITDA) limits financial flexibility
- GAAP net loss continues, driven by high interest expense and non-controlling interest drag
- Cash balance declined $57.6M from year-end 2025
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 7 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001638833-26-000044 |
| Document: sgry-20260505.htm | 0001638833-26-000044 |
| Document: q12026earningspresentati.htm | 0001638833-26-000044 |
| Document: 0001638833-26-000044-index-headers.html | 0001638833-26-000044 |
| Document: 0001638833-26-000044-index.html | 0001638833-26-000044 |
| Document: 0001638833-26-000044.txt | 0001638833-26-000044 |
| 8-K Data (Synthetic) | 0001638833-26-000044 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 26, 2026 today | DEFA14A | $23.32 | awaiting T+5 | — | $23.25 (−0.30%) |
Oct 26, 2026 today | SC 13D/A | — | awaiting T+5 | — | — |
Oct 26, 2026 today | DEFA14A | — | awaiting T+5 | — | — |
Oct 26, 2026 today | 8-K | — | awaiting T+5 | — | — |
Oct 13, 2026 12d 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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