Revenue growth has slowed to 2.7% in 2026Q2, while gross margin compressed to 22.4% from 27.0% in 2024Q4, and net losses persist at -$15.0M.
Surgery Partners, Inc. (SGRY) annual income statement — 13-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 |
|---|
| Sales/Revenue | 3.37B | 3.31B | 3.11B | 2.74B | 2.54B | 2.23B | 1.86B | 1.83B | 1.77B | 1.34B | 1.15B | 959.89M | 403.29M | 284.6M |
| Revenue Growth % | 3.99% | 6.24% | 13.52% | 8.03% | 14.12% | 19.62% | 1.57% | 3.38% | 32.08% | 17.09% | 19.33% | 138.02% | 41.7% | - |
| Cost of Goods Sold | 2.65B | 2.54B | 2.37B | 2.1B | 1.96B | 1.73B | 1.48B | 1.41B | 1.36B | 1.01B | 821.2M | 669.33M | 254.18M | 169.84M |
| COGS % of Revenue | - | 76.88% | 76.06% | 76.4% | 77.36% | 77.92% | 79.58% | 76.86% | 76.85% | 75.59% | 71.69% | 69.73% | 63.03% | 59.68% |
| Gross Profit | 719.4M | 765M | 745.6M | 647.5M | 574.9M | 491.4M | 379.8M | 423.8M | 410.02M | 327.42M | 324.24M | 290.56M | 149.11M | 114.75M |
| Gross Margin % | 21.37% | 23.12% | 23.94% | 23.6% | 22.64% | 22.08% | 20.42% | 23.14% | 23.15% | 24.41% | 28.31% | 30.27% | 36.97% | 40.32% |
| Gross Profit Growth % | - | 2.6% | 15.15% | 12.63% | 16.99% | 29.38% | -10.38% | 3.36% | 25.23% | 0.98% | 11.59% | 94.86% | 29.94% | - |
| Operating Expenses | 319M | 375.5M | 396.8M | 319.5M | 229.7M | 189.2M | 196.8M | 187.9M | 157.23M | 156.37M | 123.66M | 111.83M | 52.66M | 44.18M |
| OpEx % of Revenue | - | 11.35% | 12.74% | 11.65% | 9.05% | 8.5% | 10.58% | 10.26% | 8.88% | 11.66% | 10.8% | 11.65% | 13.06% | 15.53% |
| Selling, General & Admin | 627.5M | 522.7M | 138.7M | 120.9M | 102.2M | 104M | 97.1M | 88.6M | 93.56M | 75.95M | 60.25M | 55.99M | 31.45M | 26.34M |
| SG&A % of Revenue | - | 15.8% | 4.45% | 4.41% | 4.02% | 4.67% | 5.22% | 4.84% | 5.28% | 5.66% | 5.26% | 5.83% | 7.8% | 9.25% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | -2M | -147.2M | 258.1M | 198.6M | 127.5M | 85.2M | 99.7M | 99.3M | 63.67M | 25.33M | -3.73M | -119.91M | 21.21M | 17.84M |
| Operating Income | 400.4M | 389.5M | 348.8M | 328M | 345.2M | 302.2M | 183M | 235.9M | 77.84M | 158.23M | 196.48M | 144.75M | 50.81M | 58.23M |
| Operating Margin % | 11.89% | 11.77% | 11.2% | 11.96% | 13.59% | 13.58% | 9.84% | 12.88% | 4.39% | 11.8% | 17.15% | 15.08% | 12.6% | 20.46% |
| Operating Income Growth % | - | 11.67% | 6.34% | -4.98% | 14.23% | 65.14% | -22.42% | 203.07% | -50.81% | -19.47% | 35.74% | 184.91% | -12.74% | - |
| EBITDA | 577.6M | 565.5M | 501.4M | 446.1M | 460M | 401M | 277.8M | 312.4M | 145.28M | 210.16M | 236.03M | 179.3M | 65.87M | 69.89M |
| EBITDA Margin % | 17.16% | 17.09% | 16.1% | 16.26% | 18.12% | 18.02% | 14.93% | 17.06% | 8.2% | 15.67% | 20.61% | 18.68% | 16.33% | 24.56% |
| EBITDA Growth % | 10.59% | 12.78% | 12.4% | -3.02% | 14.71% | 44.35% | -11.08% | 115.04% | -30.87% | -10.96% | 31.64% | 172.21% | -5.75% | - |
| D&A (Non-Cash Add-back) | 177.2M | 176M | 152.6M | 118.1M | 114.8M | 98.8M | 94.8M | 76.5M | 67.44M | 51.93M | 39.55M | 34.55M | 15.06M | 11.66M |
| EBIT | 770.4M | 389.5M | 348.8M | 328M | 345.2M | 302.2M | 183M | 233.5M | 77.8M | 199.96M | 205.68M | 24.84M | 50.81M | 71.15M |
| Net Interest Income | -668M | -272.6M | -201.7M | -193M | -234.9M | -221M | -201.8M | -178.9M | -147M | 0 | -100.57M | -100.98M | -62.1M | -32.93M |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 668M | 272.6M | 201.7M | 193M | 234.9M | 221M | 201.8M | 178.9M | 147M | 117.67M | 100.57M | 100.98M | 62.1M | 32.93M |
| Other Income/Expense | -298M | -272.6M | -201.7M | -193M | -234.9M | -221M | -201.8M | -181.3M | -147M | -75.95M | -104.3M | -220.89M | -62.1M | -32.93M |
| Pretax Income | 102.4M | 116.9M | 147.1M | 135M | 110.3M | 81.2M | -18.8M | 54.6M | -69.17M | 82.29M | 92.18M | -76.14M | -11.29M | 25.3M |
| Pretax Margin % | 3.04% | 3.53% | 4.72% | 4.92% | 4.34% | 3.65% | -1.01% | 2.98% | -3.9% | 6.14% | 8.05% | -7.93% | -2.8% | 8.89% |
| Income Tax | 20.5M | 18M | 134.6M | -300K | 23.3M | 10.5M | -20.1M | 9.5M | 26.46M | 53.55M | 7.09M | -148.98M | 15.76M | 7.57M |
| Effective Tax Rate % | 20.02% | 15.4% | 91.5% | -0.22% | 21.12% | 12.93% | 106.91% | 17.4% | -38.26% | 65.08% | 7.7% | 195.68% | -139.53% | 29.92% |
| Net Income | -88.6M | -77.9M | -168.1M | -11.9M | -54.6M | -70.9M | -116.1M | -74.8M | -205.71M | -52.98M | 9.45M | 1.43M | -65.9M | -9.06M |
| Net Margin % | -2.63% | -2.35% | -5.4% | -0.43% | -2.15% | -3.19% | -6.24% | -4.08% | -11.61% | -3.95% | 0.83% | 0.15% | -16.34% | -3.18% |
| Net Income Growth % | 50.89% | 53.66% | -1312.61% | 78.21% | 22.99% | 38.93% | -55.21% | 63.64% | -288.23% | -660.51% | 561.51% | 102.17% | -627.18% | - |
| Net Income (Continuing) | 81.9M | 98.9M | 12.5M | 135.3M | 87M | 70.7M | 1.3M | 45.1M | -95.6M | 28.74M | 85.08M | 72.84M | -27.05M | 17.73M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 1.43B | 1.81B | 1.85B | 1.37B | 1.28B | 1.21B | 1.07B | 1.01B | 694.3M | 681.88M | 315M | 301.95M | 486.21M | 89.24M |
| EPS (Diluted) | -0.69 | -0.61 | -1.33 | -0.09 | -0.59 | -1.12 | -3.19 | -2.29 | -4.28 | -1.08 | 0.20 | 0.04 | -1.37 | -0.19 |
| EPS Growth % | 51.74% | 54.14% | -1304.44% | 83.95% | 47.32% | 64.89% | -39.3% | 46.5% | -296.3% | -640% | 400% | 102.92% | -621.05% | - |
| EPS (Basic) | - | -0.61 | -1.33 | -0.09 | -0.59 | -1.12 | -3.19 | -2.29 | -4.28 | -1.09 | 0.20 | 0.04 | -1.37 | -0.19 |
| Diluted Shares Outstanding | 128.82M | 127.21M | 126.12M | 125.61M | 91.95M | 72.43M | 48.78M | 48.28M | 48.03M | 49M | 48.19M | 37.46M | 48.16M | 48.16M |
| Basic Shares Outstanding | 128.82M | 127.21M | 126.12M | 125.61M | 91.95M | 72.43M | 48.78M | 48.28M | 48.03M | 48.69M | 48.02M | 36.07M | 48.16M | 48.16M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Quick answers to the most common questions about buying SGRY stock.
For fiscal year 2025, Surgery Partners, Inc. (SGRY) reported total revenue of $3.31B. This represents a 1062.6% increase compared to $284.6M in 2013.
Surgery Partners, Inc. (SGRY) reported a net loss of $77.9M for the fiscal year ending 2025.
Surgery Partners, Inc. (SGRY) reported an operating income of $389.5M, resulting in an operating profit margin of 11.8%. This margin reflects the operational efficiency of the business before interest and taxes.
Surgery Partners, Inc. (SGRY) generated $765.0M in gross profit for the year, representing a gross profit margin of 23.1%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Persistent GAAP net losses
Metrics are mathematically derived from official filings.
Revenue Growth Stabilizing After M&A Spree
Revenue growth decelerated from 17.5% in 2024Q4 to 2.7% in 2026Q2, per reported financials, suggesting the acquisition-driven expansion is maturing and organic case growth is moderating.
The sharp deceleration from double-digit growth in 2024 to low-single-digit in 2026 indicates that the roll-up strategy is yielding diminishing incremental revenue. While the company maintains guidance, the sequential revenue decline from 2025Q4's $885.0M to 2026Q2's $848.9M suggests seasonal or demand softness. Investors should monitor whether same-facility case growth can sustain revenue momentum without further acquisitions.
Gross Margin Compression Signals Cost Pressures
Gross margin fell from 27.0% in 2024Q4 to 22.4% in 2026Q2, as reported in financial statements, indicating rising supply and labor costs are eroding pricing power.
The 460 basis point decline in gross margin over six quarters suggests that reimbursement increases are lagging input cost inflation, particularly for implants and specialized nursing. Despite a favorable shift toward higher-acuity procedures, the margin erosion implies that the company is unable to fully pass through cost increases. This trend warrants close monitoring as it directly impacts operating leverage and overall profitability.
Operating Leverage Fading as SG&A Spikes
Operating margin improved to 12.0% in 2026Q2 from 10.2% in 2026Q1, but SG&A surged to $140.6M in 2026Q1, per reported data, indicating overhead costs are becoming less predictable.
The volatility in SG&A, which swung from $36.3M in 2026Q2 to $140.6M in 2026Q1, suggests that the company's cost structure is not scaling smoothly with revenue. While operating income has grown in absolute terms, the inconsistent SG&A line implies that integration costs or one-time items are recurring, undermining the quality of operating leverage. Investors should assess whether these fluctuations are truly non-recurring or indicative of structural inefficiencies.
Persistent Net Losses Despite Positive Operating Income
Net income remained negative in every reported quarter, with a -$15.0M loss in 2026Q2, despite positive operating income, as per financial statements, highlighting significant below-the-line charges.
The consistent gap between operating income and net income suggests that interest expense, depreciation, and non-controlling interest adjustments are consuming all operating profits. The negative EPS in 2026Q2 (-$0.12) versus the prior year's -$0.02 indicates deteriorating earnings quality, possibly due to higher interest costs or impairment charges. The reliance on 'Adjusted EBITDA' may obscure these recurring cash costs, and investors should scrutinize the bridge to GAAP net income.
COGS Dominates Cost Structure, SG&A Volatile
COGS consistently represents over 75% of revenue, with gross margin at 22.4% in 2026Q2, while SG&A fluctuates widely, as reported, indicating supply costs are the primary margin lever.
The high COGS ratio underscores the capital-intensive nature of surgical facilities, with medical supplies and labor being the largest variable costs. The SG&A volatility, ranging from $29.2M to $323.8M, suggests that the company may be capitalizing or deferring certain expenses, which could distort period-over-period comparisons. Management's expense discipline appears inconsistent, and investors should monitor whether SG&A normalization occurs as the integration pipeline stabilizes.
2024Q4 Marks Peak Margin and Loss Widening
2024Q4 showed the highest gross margin at 27.0% and operating margin at 14.7%, but also the largest net loss of -$108.5M, per reported data, signaling a turning point in profitability.
The fourth quarter of 2024 appears to be an inflection point where revenue growth peaked at 17.5% and margins were at their best, yet the net loss ballooned, likely due to one-time charges or impairments. Subsequent quarters show margin compression and smaller losses, suggesting the company is resetting to a lower profitability baseline. This period may reflect the end of the most aggressive acquisition phase and the beginning of integration challenges.
Margin Erosion and Debt Overhang Threaten Narrative
Despite revenue growth, gross margin has contracted from 27.0% to 22.4% over six quarters, and net losses persist, as per financials, challenging the secular growth story.
Short-sellers would highlight that the company's operating leverage is not translating to bottom-line profitability, with interest expenses likely consuming a significant portion of operating income. The declining gross margin suggests that the shift to higher-acuity procedures is not offsetting cost inflation, and the company's pricing power may be weaker than assumed. Additionally, the reliance on debt-funded acquisitions raises refinancing risk in a higher-rate environment, which could further pressure net income.