Second Quarter 2026
Filed Aug 10, 2026Surgery Partners reports 2.7% second-quarter revenue growth, a $15.0 million net loss, lower Adjusted EBITDA, and reaffirms full-year 2026 guidance.
Revenue and same-facility revenue increased, and the Company reaffirmed its 2026 outlook, but Adjusted EBITDA and operating cash flow declined from the prior-year period and the Company reported a net loss attributable to Surgery Partners, Inc.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| RevenueGAAP | $848.9 million | – | increased 2.7% |
| Same-facility revenuesother | increased 5.0% | – | increased 5.0% |
| Same-facility revenue per caseother | a 4.8% increase | – | a 4.8% increase |
| Same-facility casesother | a 0.3% increase | – | a 0.3% increase |
| Net loss attributable to Surgery Partners, Inc.GAAP | $15.0 million | – | – |
| Adjusted EBITDAnon-GAAP | $125.2 million | – | – |
| Cash flows from operating activitiesGAAP | $59.3 million | – | – |
| Year-to-date revenueGAAP | $1,659.8 million | – | increased 3.6% |
| Year-to-date same-facility revenuesother | increased 4.9% | – | increased 4.9% |
| Year-to-date same-facility revenue per caseother | a 4.0% increase | – | a 4.0% increase |
| Year-to-date same-facility casesother | a 0.8% increase | – | a 0.8% increase |
| Year-to-date Adjusted EBITDAnon-GAAP | $227.5 million | – | – |
| Year-to-date operating cash flowsGAAP | $71.0 million | – | – |
| Total net debt to EBITDA ratio under the credit agreementother | approximately 4.4x | – | – |
Full year 2026 outlook
- Revenue$3.35 billion to $3.45 billion
- NoteAdjusted EBITDA of at least $530 million, excluding the impact of the recently disclosed pending divestiture of our facilities in Idaho Falls, Idaho
What drove it
- Same-facility revenues increased 5.0%, supported by a 4.8% increase in revenue per case and a 0.3% increase in same-facility cases.
- Year-to-date same-facility revenues increased 4.9%, with a 4.0% increase in revenue per case and a 0.8% increase in same-facility cases.
- Management cited ongoing initiatives to improve performance and operational efficiency.
- The Company expects the pending Idaho Falls transaction to improve cash conversion and deleveraging.
Concerns
- Adjusted EBITDA was $125.2 million, compared to $129.0 million for the same period in 2025.
- The Company reported net loss attributable to Surgery Partners, Inc. of $15.0 million.
- Cash flows from operating activities were $59.3 million, compared to $81.3 million for the same period in 2025.
- The pending Idaho Falls transaction remains subject to closing conditions including physician members and governing board approvals.
What to watch
- Closing conditions and approvals for the pending Idaho Falls transaction.
- Progress in same-facility cases and revenue per case.
- Operating cash-flow performance.
- Delivery against reaffirmed full-year 2026 revenue guidance of $3.35 billion to $3.45 billion and Adjusted EBITDA of at least $530 million, excluding the Idaho Falls divestiture.
Balance sheet and cash flow
- Cash and cash equivalents of $216.7 million as of June 30, 2026.
- $617.8 million of borrowing capacity under its revolving credit facility as of June 30, 2026.
- Cash flows from operating activities were $59.3 million for the second quarter of 2026, compared to $81.3 million for the same period in 2025.
- Year-to-date, operating cash flows were $71.0 million compared to $87.3 million in the prior year period.
- The Company’s ratio of total net debt to EBITDA, as calculated under the Company’s credit agreement, was approximately 4.4x at the end of the second quarter of 2026.
Analysis
Second-quarter revenue increased 2.7% to $848.9 million, while same-facility revenue increased 5.0%. The same-facility result was driven primarily by a 4.8% increase in revenue per case, while same-facility cases increased 0.3%. Year-to-date revenue increased 3.6% to $1,659.8 million and year-to-date same-facility revenue increased 4.9%, supported by a 4.0% increase in revenue per case and a 0.8% increase in same-facility cases.
Profitability and cash generation were weaker against the prior-year comparisons provided. Adjusted EBITDA was $125.2 million, compared with $129.0 million for the same period in 2025, while year-to-date Adjusted EBITDA was $227.5 million compared with $232.9 million. The Company also reported a net loss attributable to Surgery Partners, Inc. of $15.0 million for the second quarter. The supplied filing text does not include the underlying income-statement table needed to assess reported operating income, gross margin, net-loss components, or per-share results.
Operating cash flow was $59.3 million for the quarter, compared with $81.3 million in the same period in 2025. Year-to-date operating cash flow was $71.0 million compared with $87.3 million in the prior-year period. Liquidity included $216.7 million of cash and cash equivalents and $617.8 million of revolving-credit-facility borrowing capacity as of June 30, 2026. The total net debt to EBITDA ratio under the credit agreement was approximately 4.4x at quarter-end.
Management reaffirmed full-year 2026 revenue guidance of $3.35 billion to $3.45 billion and Adjusted EBITDA of at least $530 million, excluding the impact of the pending Idaho Falls divestiture. The pending transaction is central to management's portfolio optimization and deleveraging commentary, but remains subject to closing conditions including physician members and governing board approvals. The principal operating items to follow are same-facility case growth, revenue per case, EBITDA performance, operating cash flow, and progress toward closing the Idaho Falls transaction.
Management, verbatim
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. The announcement of the pending Idaho Falls transaction was a key achievement and represents an important step forward in our portfolio optimization strategy, as we take decisive actions to improve our financial profile and sharpen our strategic focus. Looking ahead, we will capitalize on the structural tailwinds underpinning long-term ASC market growth, enhance operational efficiency, and thoughtfully deploy capital to deliver long-term value for our shareholders.
Eric Evans, Chief Executive Officer
Our financial results in the second quarter demonstrate the momentum of our ongoing initiatives to improve performance, and we are reiterating full-year guidance as a result. The Idaho Falls transaction, which remains subject to closing conditions including physician members and governing board approvals, will further strengthen our financial position, through improved cash conversion and deleveraging. Going forward, we are committed to disciplined capital allocation to support the continued growth of our business.
Dave Doherty, Chief Financial Officer
Not in the filing
stated, not guessed- The selected consolidated financial data tables are truncated in the provided filing text.
- GAAP gross profit and gross margin.
- GAAP operating income or loss.
- GAAP net income or loss prior-year comparison.
- GAAP diluted earnings or loss per share.
- Non-GAAP adjusted net income or loss attributable to common stockholders.
- Non-GAAP adjusted net income or loss per share attributable to common stockholders.
- Free cash flow.
- Total debt or total indebtedness.
- Capital expenditures.
- Share repurchases, dividends, or other capital-return amounts.
- Reportable segment revenue and segment profitability.
- Prior-quarter comparisons for reported metrics.
- Full-year 2026 guidance for gross margin, operating expenses, and tax rate.
- Previous-quarter outlook needed to compare actual results with prior guidance.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.