# Surgery Partners Inc. (SGRY) — Financial Analysis

**Exchange:** NASDAQ  
**Coverage as of:** 2026-Q2  
**Updated:** 2026-05-29  
**Tier:** Free primer (step 2 of 19)  
**Sibling pages:** /stocks/SGRY/thesis · /stocks/SGRY/memo

## Financial Snapshot

---
source: coverage-next-full
ticker: SGRY
step: "04"
title: Financial Snapshot — 3-Year P&L Summary
created: 2026-05-29
---

### SGRY — Financial Snapshot

#### Income Statement Summary (FY2023–FY2025)

| Metric ($M) | FY2023 | FY2024 | FY2025 | 3Y CAGR |
|-------------|--------|--------|--------|---------|
| Revenue | $2,739 | $3,112 | $3,314 | +10.0% |
| Cost of Revenues | ~$2,157 | ~$2,600 | ~$2,746 | — |
| Gross Profit | ~$582 | ~$512 | ~$568 | — |
| Gross Margin | ~21.3% | ~16.5% | ~17.1% | — |
| Operating Income | $328.0 | $348.8 | $389.5 | +9.0% |
| Operating Margin | 12.0% | 11.2% | 11.7% | — |
| Adjusted EBITDA | $446 | $501 | $526 | +8.6% |
| Adj. EBITDA Margin | 16.3% | 16.1% | 15.9% | — |
| D&A | $118.1 | $152.6 | $176.0 | — |
| Interest Expense (est.) | ~$185 | ~$230 | ~$265 | — |
| Net Income (GAAP) | -$11.9 | -$168.1 | -$77.9 | — |
| EPS (Diluted, GAAP) | -$0.09 | -$1.33 | -$0.61 | — |
| Adj. EPS (est.) | ~$0.25 | ~$0.40 | ~$0.55 | — |

**Note on Gross Margin:** SGRY's reported gross margin is compressed because cost of revenues includes physician/surgeon payments and all facility-level operating costs. The metric is less comparable to traditional healthcare gross margins; EBITDA margin is the primary street metric.

**Note on FY2024 Net Loss:** The $168M net loss in FY2024 includes non-cash charges related to goodwill impairment and debt refinancing costs associated with the acquisition of NovaBay / ASC portfolio expansion and related debt issuance. The FY2024 balance sheet shows debt rose from $2.804B to $3.405B.

#### Key Profitability Metrics

| Metric | FY2023 | FY2024 | FY2025 |
|--------|--------|--------|--------|
| Revenue Growth | +7.9% | +13.6% | +6.5% |
| Same-Facility Revenue Growth | ~5.3% | ~5.8% | ~4.5% |
| Adj. EBITDA Growth | -3.0% | +12.3% | +5.0% |
| Adj. EBITDA Margin | 16.3% | 16.1% | 15.9% |
| Operating Cash Flow | $293.8M | $300.1M | $274.3M |
| Free Cash Flow | $205.0M | $209.7M | $195.6M |
| FCF Margin | 7.5% | 6.7% | 5.9% |

#### Cash Flow Statement Summary

| Metric ($M) | FY2023 | FY2024 | FY2025 |
|-------------|--------|--------|--------|
| Operating Cash Flow | $293.8 | $300.1 | $274.3 |
| Capital Expenditures | -$88.8 | -$90.4 | -$78.7 |
| Free Cash Flow | $205.0 | $209.7 | $195.6 |
| Acquisitions | -$80.0 | -$378.8 | -$162.1 |
| Net Debt Issued/(Repaid) | +$19.5 | +$450.4 | +$162.8 |
| SBC | $17.7 | $33.3 | $14.8 |

**FCF Note:** FCF declined slightly in FY2025 vs. FY2024 despite EBITDA growth, reflecting higher interest expense on expanded debt load and some working capital headwinds. Management has guided to improving FCF conversion in FY2026 through lower CapEx (post-acquisition integration) and reduced deal costs.

#### Balance Sheet Summary

| Metric ($M) | FY2023 | FY2024 | FY2025 |
|-------------|--------|--------|--------|
| Cash & Equivalents | $195.9 | $269.5 | $239.9 |
| Total Current Assets | $895 | $1,119 | $1,151 |
| Goodwill | $4,326 | $5,068 | $5,195 |
| Total Assets | $6,877 | $7,890 | $8,120 |
| Total Current Liabilities | $523 | $624.4 | $615.5 |
| Long-Term Debt | $2,804 | $3,405 | $3,735 |
| Total Equity (incl. NCI) | $3,362 | $3,635 | $3,527 |
| Parent Stockholders' Equity | ~$1,700 | ~$1,800 | ~$1,700 |

**Goodwill Note:** $5.195B in goodwill (FY2025) represents ~64% of total assets. Goodwill is not amortized under GAAP but must be tested annually for impairment. Any significant impairment charge would flow through the P&L and further depress reported net income.

#### Leverage Profile

| Metric | FY2023 | FY2024 | FY2025 |
|--------|--------|--------|--------|
| Gross Debt | $2,804M | $3,405M | $3,735M |
| Net Debt | ~$2,608M | ~$3,136M | ~$3,495M |
| Adj. EBITDA | $446M | $501M | $526M |
| Net Leverage (x) | ~5.8x | ~6.3x | ~6.6x |
| Interest Coverage (EBITDA/Int.) | ~2.4x | ~2.2x | ~2.0x |

**Leverage is the primary credit/equity risk.** At 6.6x net debt/EBITDA, SGRY operates with limited margin for error. The debt maturity schedule, refinancing risk, and ability to service interest out of operating cash flow are key investor watch items.

#### Debt Structure (FY2025, Estimated)

| Facility | Balance (est.) | Maturity |
|----------|---------------|---------|
| Term Loan B | ~$1,900M | 2028–2030 |
| Senior Secured Notes | ~$900M | 2027–2031 |
| Revolving Credit Facility | ~$200–400M | 2027–2028 |
| Other | ~$300M | Various |

Note: SGRY refinanced portions of its debt during 2024 to extend maturities; specific terms from FY2025 10-K.

#### Per-Share Metrics

| Metric | FY2023 | FY2024 | FY2025 |
|--------|--------|--------|--------|
| EPS (Diluted, GAAP) | -$0.09 | -$1.33 | -$0.61 |
| Adj. EPS (est.) | ~$0.25 | ~$0.40 | ~$0.55 |
| Book Value Per Share (Parent) | ~$13.50 | ~$14.20 | ~$13.15 |
| FCF Per Share | ~$1.62 | ~$1.65 | ~$1.51 |

#### Profitability Outlook

Management's FY2026 guidance (reaffirmed Q1 2026):
- Revenue: $3.35B–$3.45B (+1–4% YoY)
- Adj. EBITDA: ≥$530M (+0.8%+ YoY)
- Implied Adj. EBITDA margin: ~15.4–15.8% (slight compression at midpoint)

Consensus FY2026 estimates (May 2026): Revenue $3.48B; EPS $0.46

## Deeper Financial Analysis

The fundamental tier ($1.00) adds 8 dimensions not included here:

- Revenue Breakdown — segment revenue, geographic mix, product-line margins
- Financial Trends — QoQ momentum, leading indicators, inflection points
- Balance Sheet — debt structure, dilution risk, working capital dynamics
- Capital Allocation — ROIC, buyback cadence, reinvestment efficiency
- Earnings Analysis — beats/misses, guidance vs actuals, transcript highlights
- Competitive Positioning — market share, pricing power, peer benchmarks
- Industry Context — TAM, sector tailwinds/headwinds, regulatory backdrop

**API endpoint:** GET /api/v1/research/SGRY/fundamental

## Navigation

- Overview: /stocks/SGRY
- Financials (this page): /stocks/SGRY/financials
- Thesis: /stocks/SGRY/thesis
- Investment Memo: /stocks/SGRY/memo
- Coverage universe: /stocks