Surgery Partners Reports 2.7% Revenue Growth but Increases Net Loss in Q2 2026

Surgery Partners, Inc. reported a revenue increase of 2.7% for the second quarter of 2026, reaching $848.9 million compared to $826.2 million in the same period of 2025. The growth was primarily driven by a 5.0% increase in same-facility revenue, attributed to a 4.8% rise in revenue per case and a 0.3% increase in same-facility case volumes. However, the company experienced a net loss attributable to Surgery Partners of $15.0 million for the quarter, a decline from a loss of $2.5 million in the prior year. For the first half of 2026, total revenues rose to $1.66 billion, up from $1.60 billion in the same period of 2025, while the net loss attributable to Surgery Partners increased to $50.9 million from $40.2 million.

Operating expenses for the second quarter of 2026 totaled $746.8 million, up from $714.5 million in the previous year, with cost of revenues rising to $658.7 million from $630.6 million. This increase was largely due to higher case volumes and the performance of high-acuity procedures. General and administrative expenses remained relatively stable at $36.3 million, while depreciation and amortization expenses slightly decreased to $39.3 million. The company also incurred $18.4 million in transaction and integration costs, reflecting ongoing development initiatives and the integration of acquisitions.

Surgery Partners continues to expand its operational footprint, owning or operating 178 surgical facilities, including 159 ambulatory surgery centers (ASCs) and 19 surgical hospitals across 30 states as of June 30, 2026. The company has a majority interest in 87 of these facilities and consolidated 120 for financial reporting purposes. The company’s cash and cash equivalents stood at $216.7 million, with $617.8 million available under its revolving credit facility, indicating a solid liquidity position despite the net losses reported.

In terms of strategic developments, Surgery Partners acquired a controlling interest in one surgical facility for $4.1 million during the first half of 2026, contributing to an increase in goodwill. The company also disposed of its non-controlling interests in one surgical facility, resulting in a pre-tax loss of $4.0 million. Looking ahead, Surgery Partners has announced plans to sell its controlling interest in two hospitals for approximately $795 million, subject to customary closing conditions. This transaction is expected to enhance the company's financial flexibility and support future growth initiatives.

The outlook for Surgery Partners remains cautious, with management highlighting potential risks from economic factors such as interest rate changes, inflation, and supply chain issues that could impact patient volumes and collections. The company aims to improve same-facility performance, pursue selective acquisitions, and develop new facilities to enhance its market position. Despite the challenges, Surgery Partners believes that its current operational cash flows, available cash, and access to capital markets will adequately meet its liquidity needs in the near term.