The stock may react positively to the buyback and 2026 EBITDA guidance above 2025 levels, but traders should monitor whether management can reverse margin pressure and improve execution in 2026. The narrowing net loss and solid same-facility revenue growth provide some optimism, but declining EBITDA and operating cash flow are red flags.
Price Chart
Executive Summary
Surgery Partners reported mixed Q4 and full-year 2025 results with revenue growth of 2.4% in Q4 and 6.2% for the full year, driven by higher same-facility revenues and revenue per case. However, Adjusted EBITDA declined 4.2% in Q4 and net loss narrowed significantly from the prior year. Management cited margin pressure and unmet Q4 expectations, while initiating 2026 guidance for at least $530 million Adjusted EBITDA. A $200 million share repurchase program was announced.
Key Financial Metrics
Key Facts
- Q4 revenue increased 2.4% YoY to $885.0 million; full-year revenue up 6.2% to $3.31 billion
- Same-facility revenue grew 3.5% in Q4 and 4.9% for the full year
- Q4 Adjusted EBITDA declined 4.2% to $156.9 million; full-year Adjusted EBITDA up 3.5% to $526.2 million
- Net loss attributable to SGRY was $15.0 million in Q4 (vs $108.5M loss in Q4 2024) and $77.9 million for the year (vs $168.1M in 2024)
- Operating cash flow was $103.4M in Q4 and $274.3M for the year, down from prior year
- Company guided 2026 Adjusted EBITDA of at least $530 million and revenue of $3.35B–$3.45B
- Board authorized $200 million share repurchase program on February 26, 2026
Financial Impact
Revenue growth positive but offset by margin compression: Adjusted EBITDA margin fell to 17.7% in Q4 (from 18.9%) and 15.9% for full year (from 16.3%). Free cash flow declined $25.8M YoY. $200M buyback represents ~10% of current market cap.
Risk Factors
- Continued margin pressure and operational execution risks in 2026
- High leverage: net debt/EBITDA at 4.3x (credit agreement basis) and 4.9x (consolidated basis)
- Declining operating cash flow despite revenue growth raises sustainability concerns
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 1 press release from GlobeNewswire.
| Document | Accession Number |
|---|---|
| PRESS-RELEASE Data (Synthetic) | press-3247861 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 27, 2026 today | DEFA14A | $23.20 | awaiting T+5 | — | $23.36 (+0.69%) |
Oct 26, 2026 1d ago | DEFA14A | $23.32 | awaiting T+5 | — | $23.36 (+0.17%) |
Oct 26, 2026 1d ago | SC 13D/A | $23.25 | awaiting T+5 | — | $23.36 (+0.47%) |
Oct 26, 2026 1d ago | DEFA14A | $23.25 | awaiting T+5 | — | $23.36 (+0.47%) |
Oct 26, 2026 1d ago | 8-K | $23.25 | awaiting T+5 | — | $23.36 (+0.47%) |
Oct 13, 2026 14d ago | SC 13G | $14.83 $15.40 | ▲ +3.84% | ▲ +3.39% | $23.36 (+57.52%) |
Sep 17, 2026 5w ago | 8-K | $13.35 $14.20 | ▲ +6.37% | ▲ +5.77% | $23.36 (+74.98%) |
Sep 17, 2026 5w ago | Press Release | $13.35 $14.20 | ▲ +6.37% | ▲ +5.52% | $23.36 (+74.98%) |
Aug 20, 2026 9w ago | Insider Buy | $14.52 $13.69 | ▼ −5.72% | ▼ −6.19% | $23.36 (+60.88%) |
Aug 10, 2026 11w ago | 8-K | $15.95 $14.36 | ▼ −9.97% | ▼ −9.92% | $23.36 (+46.46%) |
US Market Status
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