Surgery Partners Inc. reported third‑quarter 2025 results on November 10, 2025, posting revenue of $821.5 million, a 6.6% year‑over‑year increase driven by a 6.3% rise in same‑facility revenue and a 3.4% rise in same‑facility case volume. The company’s adjusted earnings per share fell to $0.13, missing consensus estimates of $0.16–$0.19 by 19% to 38%, while adjusted EBITDA rose to $136.4 million, up 6.1% from $128.6 million in Q3 2024.
The revenue growth was largely supported by a 6.3% increase in same‑facility revenue, reflecting steady demand for orthopedic procedures, the company’s core high‑acuity service line. However, same‑facility case volume grew only 3.4%, indicating a modest decline in overall case mix. Operating margin expanded to 12.9% from 7.9% in Q3 2024, driven by higher pricing power in orthopedic services and improved operational leverage, while the adjusted EBITDA margin reached 16.6% from 15.5% year‑over‑year.
The adjusted EPS miss was primarily caused by softer volume and a less favorable payor mix. Management cited a decline in payer reimbursement rates and a shift toward lower‑margin procedures, which eroded profitability despite revenue growth. The company also incurred a one‑time charge related to restructuring costs, further compressing earnings. These factors combined to push EPS below analyst expectations.
In response to the weaker volume outlook, the company lowered its full‑year 2025 revenue guidance to $3.275 billion–$3.30 billion, down from the previous $3.35 billion–$3.40 billion range, and trimmed adjusted EBITDA guidance to $535 million–$540 million from $545 million–$550 million. The cuts signal management’s concern over near‑term demand softness and a cautious stance on capital deployment, while still maintaining confidence in long‑term growth from outpatient orthopedic expansion.
Management emphasized that the company remains “proud” of its execution, noting that revenue and adjusted EBITDA growth reflect continued progress in its long‑term growth algorithm. CEO Eric Evans highlighted the strength of orthopedic procedures as a key driver, while CFO Dave Doherty underscored a resilient business model despite volume and payor mix challenges. Analysts noted that the EPS miss and guidance cut were the main drivers of the negative market reaction, reflecting investor focus on profitability and forward‑looking outlook.
Overall, Surgery Partners’ Q3 results demonstrate operational resilience amid a challenging macro environment. Revenue and margin gains underscore the company’s strategic focus on high‑acuity outpatient services, but the EPS miss and guidance downgrade highlight ongoing headwinds from payer mix and volume softness. The company’s high leverage ratio remains a concern, and investors will watch how it balances debt reduction with continued expansion of its orthopedic portfolio.
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