Surgery Partners, Inc. Announces First Quarter 2025 Results; Reaffirms Full Year 2025 Guidance

Core Insights - Surgery Partners, Inc. reported a strong start to 2025 with revenues increasing by 8.2% year-over-year to $776.0 million, driven by a 5.2% increase in same-facility revenues and a 6.5% increase in same-facility cases [3][6][21] - The company reaffirmed its full-year 2025 revenue guidance in the range of $3.30 billion to $3.45 billion and Adjusted EBITDA guidance between $555 million and $565 million, indicating confidence in continued growth and margin expansion [2][6] - Despite the positive revenue growth, the company reported a net loss attributable to Surgery Partners, Inc. of $37.7 million for the first quarter, compared to a net loss of $12.4 million in the same period last year [3][21] Financial Performance - Adjusted EBITDA for the first quarter of 2025 was $103.9 million, reflecting a 6.6% increase from $97.5 million in the first quarter of 2024 [3][21] - The company's operating income decreased to $61.9 million from $76.0 million year-over-year, primarily due to increased operating expenses [21] - The ratio of total net debt to EBITDA was approximately 4.1x at the end of the first quarter of 2025, indicating the company's leverage position [5] Liquidity and Cash Flow - As of March 31, 2025, Surgery Partners had cash and cash equivalents of $229.3 million and $388.9 million available under its revolving credit facility [4][20] - Cash flows from operating activities decreased to $6.0 million in the first quarter of 2025 from $40.7 million in the same period of 2024, attributed to timing of routine transactions involving working capital [4][20] Operational Highlights - The number of surgical facilities decreased slightly to 164 as of March 31, 2025, from 165 a year earlier, while the number of consolidated surgical facilities also declined to 118 from 124 [20][21] - Revenue per case increased to $4,841 in the first quarter of 2025, up from $4,677 in the same period of 2024, despite a 1.2% decrease in revenue per case year-over-year [21][23]