Surgery Partners Reports 8.3% Revenue Growth to $826.2 Million in Q2 2025

Surgery Partners, Inc. reported a revenue increase of 8.3% for the second quarter of 2025, reaching $826.2 million compared to $762.1 million in the same period of 2024. The growth was driven by same-facility revenue growth and the impact of acquisitions and divestitures over the past year. The company also noted a 5.1% increase in days adjusted same-facility revenues, attributed to a 3.4% rise in same-facility case volumes and a 1.6% increase in revenue per case. Despite the revenue growth, the net loss attributable to Surgery Partners, Inc. was $2.5 million, an improvement from a loss of $15.5 million in the prior year.

For the first half of 2025, total revenues reached $1.6 billion, up from $1.5 billion in the same period of 2024. Operating income for the six months ended June 30, 2025, was $173.6 million, compared to $160.8 million in 2024. However, the net loss attributable to Surgery Partners, Inc. for the first half was $40.2 million, worsening from a loss of $27.9 million in the previous year. The company’s operating expenses increased, with costs of revenues rising to $1.2 billion, primarily due to higher case volumes and the performance of high-acuity procedures.

Strategically, Surgery Partners acquired a controlling interest in four surgical facilities and two physician practices for $48.0 million during the second quarter. The company continues to focus on improving same-facility performance and selectively acquiring established facilities. As of June 30, 2025, Surgery Partners operated 162 surgical facilities across 30 states, with a majority interest in 83 of these facilities. The company’s cash and cash equivalents stood at $250.1 million, with an additional $394.9 million available under its revolving credit facility.

Operationally, the company reported a decrease in general and administrative expenses to $36.1 million for the second quarter, down from $40.3 million in the prior year, reflecting improved cost management. However, interest expenses increased to $67.9 million, up from $51.5 million, primarily due to financing activities related to senior unsecured notes and increased borrowings. The company’s effective tax rate for the second quarter was -2.5%, compared to 14.7% in the previous year, influenced by earnings attributable to non-controlling interests and changes in valuation allowances.

Looking ahead, Surgery Partners remains focused on enhancing operational performance and managing costs while navigating the evolving healthcare landscape, including the implications of recent legislative changes affecting federally funded healthcare programs. The company anticipates that its current cash flows, available cash, and access to capital markets will adequately support its liquidity needs in the near term.