Surgery Partners, Inc. operates a nationwide network of surgical facilities and associated medical services across the United States. Its business is categorized ...
Surgery Partners, Inc. is a publicly traded healthcare services company headquartered in Brentwood, Tennessee, and listed on the Nasdaq Global Select Market under the symbol SGRY. Founded in 2004, the company has developed a nationwide platform focused on surgical services delivered outside traditional acute-care hospital settings. Its operating model emphasizes ...Surgery Partners, Inc. is a publicly traded healthcare services company headquartered in Brentwood, Tennessee, and listed on the Nasdaq Global Select Market under the symbol SGRY. Founded in 2004, the company has developed a nationwide platform focused on surgical services delivered outside traditional acute-care hospital settings. Its operating model emphasizes partnerships with physicians, health systems, and other healthcare providers, allowing it to develop, acquire, manage, and operate facilities that support planned and non-emergency procedures.
The company’s principal business areas are Surgical Facility Services and Ancillary Services. Surgical Facility Services include ambulatory surgery centers and dedicated surgical hospitals. These facilities serve patients requiring procedures in fields such as gastroenterology, general surgery, ophthalmology, orthopedics, pain management, and other specialties. Compared with a full-service hospital, an ambulatory surgery center generally focuses on scheduled procedures that can be completed without a prolonged inpatient stay. Dedicated surgical hospitals can provide a broader range of services and may include supporting capabilities such as diagnostic imaging, pharmacy, laboratory services, obstetrics, oncology, physical therapy, and wound care.
Ancillary Services expand the company’s healthcare offering beyond the operating room. They include multi-specialty physician practices, urgent care locations, anesthesia services, and other related clinical or operational capabilities. The business therefore combines facility operations with physician and procedure-support services. Supplied company information indicates that Surgery Partners has more than 180 locations and, in later company descriptions, more than 200 or 300 locations depending on the reporting period and definition used. Its workforce exceeds 16,000 employees and supports approximately 5,000 affiliated physicians and more than 670,000 patients annually.
The company’s cost structure is typical of a healthcare-facilities operator: major expenses include clinical labor, facility staffing, supplies, physician-related arrangements, anesthesia, rent or facility costs, insurance, administration, and technology. Capital requirements include investments in surgical equipment, facility development, renovations, information systems, and acquisitions. Because the company operates through facilities and partnerships, profitability can be influenced by procedure volumes, reimbursement rates, payer mix, labor availability, supply costs, physician alignment, and regulatory requirements.
Financially, the supplied trailing-twelve-month data show approximately $2.03 billion in equity market capitalization and approximately $5.88 billion in enterprise value at the cited snapshot. The company reported positive operating cash flow and free cash flow metrics, but also a negative trailing net margin and negative earnings per share. Leverage is material, with enterprise-value-to-EBITDA of approximately 6.1 times and net debt-to-EBITDA of approximately 4.0 times in the supplied data. These figures make debt management, cash generation, reimbursement stability, and disciplined capital allocation important considerations for investors. Surgery Partners does not currently pay a regular dividend according to the supplied information. CEO J. Eric Evans has served as chief executive officer and a director since January 2020.
YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength.
QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes.
RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three).
$3.3B
+6.2%
+4.7%
Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day.
$-77.9M
+53.7%
+58.2%
Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials.
+23.1%
-3.4%
+49.3%
Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on).
+11.8%
+5.1%
+18.4%
Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales.
-2.4%
+56.4%
+60.1%
Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock.
$195.6M
-6.7%
+972.1%
FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine.
+5.9%
-12.2%
+933.1%
Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe.
235.0%
+13.6%
+0.8%
Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking.
1.87x
+4.3%
+4.6%
Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground.
Operator: Greetings, welcome to Surgery Partners Second Quarter 2026 Earnings Call. [Operator Instructions] Please note, this conference is being recorded. I will now turn the conference over to Dave Doherty, Chief Financial Officer. Thank you. You may begin.
David Doherty: Good morning, and thank you for joining Surgery Partners' Second Quarter 2026 Earnings Call. I'm joined today by Eric Evans, our Chief Executive Officer; and Justin Oppenheimer, our Chief Operating Officer. During this call, we will make forward-looking statements. There are risk factors that could cause future results to be materially different from these statements as described in this morning's press release and in the reports we file with the SEC. The company does not undertake any duty to update these forward-looking statements. In addition, we will reference certain non-GAAP financial measures, which we believe can be useful in evaluating our performance. We have reconciled these measures to the applicable GAAP measures in this morning's press release and in the supplemental materials posted to our Investor Relations website. With that, I will turn the call over to Eric Evans. Eric?
J. Evans: Thank you, Dave, and good morning, everyone. Before discussing our quarterly results, I want to address a significant portfolio optimization milestone we announced last month. As we noted, we have signed definitive agreements in escrow for the sale of our interest in the Idaho Falls market, Mountain View Hospital and Idaho Falls Community Hospital to our partner, Intermountain Health. We have had a successful and long-standing partnership with Intermountain, not only in Idaho, but also in 15 ASCs across Utah and Montana that remain in our portfolio. The Idaho Falls facilities have built an exceptional reputation as preferred providers and leaders in delivering high-quality, affordable care for the Idaho Falls region. At the same time, they have evolved in ways that today extend well beyond our core short-stay surgical focus to include more traditional acute care services such as obstetrics, neonatology, pediatrics and other nonsurgical service lines. We are confident these facilities will continue to grow and serve the health care needs of this community with the strength of Intermountain's partnership. This pending transaction is the most impactful part of our strategic review process to date and represents the vast majority of planned portfolio optimization. Our objectives in this process were to further sharpen our focus on our core short-stay surgical facility portfolio to simplify our operations, drive growth and strengthen our balance sheet, and we believe we have been successful in achieving this. To help investors evaluate the company on a comparable basis, in the supplemental financial information we posted on our Investor Relations website this morning, we provide key financial and nonfinancial metrics about this market to help illustrate the change in our business mix, …