Surgery Partners, Inc. (NASDAQ:SGRY) shares slipped 0.71% in pre-market trading on Monday after the healthcare services company reported mixed second-quarter results, with revenue exceeding Wall Street forecasts while profitability remained under pressure.
Adjusted earnings per share came in at $0.10, compared with the analyst consensus estimate of $0.06. On a GAAP basis, however, Surgery Partners recorded a net loss attributable to the company of $0.12 per share.
Quarterly revenue reached $848.9 million, beating the $830.05 million expected by analysts and increasing 2.7% from $826.2 million in the corresponding period last year.
Same-facility revenue grows 5%
Underlying operating trends remained positive during the quarter, with same-facility revenue increasing 5.0% year-on-year.
The improvement was primarily driven by a 4.8% rise in revenue per case, while same-facility case volumes increased 0.3%.
Adjusted EBITDA nevertheless declined to $125.2 million from $129.0 million in the second quarter of the previous year, highlighting continued pressure on profitability despite higher revenue.
“We are pleased with our progress this quarter, which reflects disciplined execution against our key strategic priorities to support a return to growth and reinforces our conviction in our short stay surgical platform,” said Eric Evans, Chief Executive Officer.
Surgery Partners maintains 2026 guidance
Surgery Partners reaffirmed its full-year 2026 revenue forecast of between $3.35 billion and $3.45 billion.
The midpoint of $3.40 billion is marginally below the current analyst consensus estimate of $3.41 billion.
The company also maintained its forecast for adjusted EBITDA of at least $530 million for the year. That outlook excludes the potential impact of the pending divestiture of facilities in Idaho Falls, Idaho.
Cash flow declines as leverage remains elevated
Operating cash flow totalled $59.3 million during the second quarter, down from $81.3 million in the same period last year.
At the end of the quarter, Surgery Partners reported a total net debt-to-EBITDA ratio of approximately 4.4x.
While the company delivered better-than-expected revenue and maintained its full-year outlook, lower adjusted EBITDA and weaker operating cash flow provided a more cautious counterweight to the quarter’s underlying same-facility growth.
Surgery Partners stock price
