Core Viewpoint - Surgery Partners reported mixed financial results for Q2 2025, with revenue exceeding expectations but non-GAAP EPS slightly missing consensus estimates, reflecting ongoing net losses and higher costs associated with network growth [1][2][5] Financial Performance - GAAP revenue reached $826.2 million, surpassing analyst estimates of $818.4 million, and showing an 8.4% increase from $762.1 million in Q2 2024 [2][5] - Non-GAAP EPS was $0.17, missing the consensus estimate of $0.18 and down 19.0% from $0.21 in Q2 2024 [2] - Adjusted EBITDA grew 9.0% year-over-year to $129.0 million, with an adjusted EBITDA margin of 15.6%, slightly above the prior year's margin [2][6] Business Overview - Surgery Partners operates over 160 ambulatory surgery centers (ASCs) and surgical hospitals, focusing on same-day, minimally invasive procedures [3] - The company aims to provide efficient, cost-effective, and high-quality outpatient settings for patients, physicians, and payors [3] Strategic Focus - Recent growth strategies include acquisitions, new site development, and optimizing the facility portfolio for improved profitability [4] - Key success factors involve expanding physician partnerships, negotiating favorable insurance contracts, and ensuring regulatory compliance [4] Operational Highlights - Total cases performed increased to 172,858, up 3.8% year-over-year, with same-facility revenue growth of 5.1% [5] - The company reduced its facility count to 162 from 167, reflecting acquisitions and targeted divestitures [8] - Net interest expense rose to $67.9 million due to higher debt and interest rates [9] Market Trends - Strong volume growth was noted in gastrointestinal and orthopedic surgeries, with outpatient GI endoscopy growing faster than the company average [7][10] - The company maintains low exposure to Medicaid or ACA plans, with over 70% of supply purchases through group purchasing contracts [11] Future Guidance - Surgery Partners reaffirmed its full-year revenue guidance of $3.30–3.45 billion and adjusted EBITDA of $555–565 million, projecting further EBITDA margin expansion [14] - Key areas to monitor include the integration and profitability of newly acquired facilities, elevated debt service costs, and operational execution in working capital management [15]