Surgery Partners Reports 4.5% Revenue Growth to $810.9 Million in Q1 2026

Surgery Partners, Inc. reported a revenue increase of 4.5% for the first quarter of 2026, reaching $810.9 million compared to $776.0 million in the same period of 2025. This growth was primarily driven by a 4.4% rise in same-facility revenues, attributed to a 3.8% increase in revenue per case and a 0.6% increase in same-facility case volumes. Despite the revenue growth, the company recorded a net loss attributable to Surgery Partners of $35.9 million, a slight improvement from the $37.7 million loss reported in the prior year. Adjusted EBITDA for the quarter decreased by 1.5% to $102.3 million from $103.9 million in the previous year.

In terms of operational metrics, the company owned or operated a total of 180 surgical facilities, including 161 ambulatory surgery centers (ASCs) and 19 surgical hospitals across 30 states as of March 31, 2026. The company’s cash and cash equivalents stood at $182.3 million, with an available borrowing capacity of $666.1 million under its revolving credit facility. The total current assets decreased to $1.08 billion from $1.15 billion at the end of 2025, while total liabilities also saw a reduction, leading to a total asset value of $8.04 billion, down from $8.12 billion.

Surgery Partners made strategic moves during the quarter, acquiring a controlling interest in one surgical facility for $4.2 million, net of cash acquired. This acquisition is part of the company's ongoing strategy to enhance its portfolio through selective acquisitions and the development of new facilities. The company also reported a decrease in transaction and integration costs, which fell to $15.6 million from $24.7 million in the previous year, reflecting reduced acquisition activity and associated costs.

The company’s operational expenses increased, with cost of revenues rising to $650.7 million from $614.1 million, primarily due to higher case volumes and increased hospital provider taxes. General and administrative expenses also rose to $39.3 million from $36.0 million. Interest expense increased to $69.1 million from $62.2 million, reflecting the impact of maturing interest rate swaps and increased interest from senior unsecured notes. The effective tax rate for the quarter was reported at 36.4%, compared to 0% in the prior year, influenced by earnings attributable to non-controlling interests and changes in the company’s valuation allowance.

Looking ahead, Surgery Partners remains focused on improving same-facility performance and expanding its operational footprint. The company anticipates that cash flows from operations, along with available cash and credit facilities, will be sufficient to meet its short-term and long-term liquidity needs. However, it acknowledges potential risks from economic factors such as interest rate changes, inflation, and market volatility, which could impact its operational performance and financial condition.