Revenue growth has decelerated significantly from 17.5% in 2024Q4 to 4.5% in 2026Q1, while gross margins have simultaneously contracted to 19.8% due to rising clinical and supply costs.
| 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 | 3.34B | 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 % | 5.38% | 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 | 2.58B | 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 | 763.3M | 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 % | 22.83% | 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 | 416.1M | 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 | 627.3M | 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 | -1000K | -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 | 393.4M | 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 % | 11.77% | 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 | 571.6M | 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 % | 17.1% | 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 % | 16.68% | 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) | 178.2M | 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 | 712.8M | 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 | -595.6M | -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 | 526.5M | 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 | -210.4M | -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 | 113.9M | 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 % | 3.41% | 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 | 19.2M | 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 % | 16.86% | 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 | -76.1M | -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 % | -2.28% | -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 % | 60.65% | 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) | 63.3M | 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 | 1.79B | 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) | -0.59 | -0.61 | -1.33 | -0.09 | -0.59 | -1.12 | -3.19 | 0.95 | -4.28 | -1.08 | 0.20 | 0.04 | -1.37 | -0.19 |
| EPS Growth % | 61.46% | 54.14% | -1304.44% | 83.95% | 47.32% | 64.89% | -435.79% | 122.2% | -296.3% | -640% | 400% | 102.92% | -621.05% | - |
| EPS (Basic) | - | -0.61 | -1.33 | -0.09 | -0.59 | -1.12 | -3.19 | 0.95 | -4.28 | -1.09 | 0.20 | 0.04 | -1.37 | -0.19 |
| Diluted Shares Outstanding | 128.37M | 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 | 128.37M | 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 | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Persistent Net Income Deficits
As indicated by recent quarterly filings, Surgery Partners' year-over-year revenue growth has decelerated from a peak of 17.5% in 2024Q4 to 4.5% in 2026Q1, suggesting that the company's aggressive acquisition-led expansion strategy may be encountering diminishing returns in its core surgical facility services segment.
The sharp decline in top-line growth rates implies that organic volume gains are struggling to offset the integration challenges inherent in the company's roll-up model. Investors should monitor whether this deceleration reflects a saturation of the outpatient surgery market or a temporary pause in the company's ability to successfully execute new facility acquisitions.
Based on reported financial statements, gross margins have fluctuated significantly, dropping from a high of 27.0% in 2024Q4 to 19.8% in 2026Q1, which highlights the company's sensitivity to rising costs for specialized medical supplies and the ongoing labor inflation impacting clinical staff compensation.
The inability to maintain consistent gross margins suggests that the company lacks sufficient pricing power to fully pass through inflationary pressures to private payers. This margin compression warrants further investigation into whether the current case mix shift toward higher-acuity procedures is being offset by the higher cost of specialized implants.
According to the provided income statement data, Surgery Partners has reported consistent net losses over the last ten quarters, with a net margin of -4.4% in 2026Q1, indicating that high interest expenses and depreciation charges continue to overwhelm the company's operating income generation.
The recurring nature of these net losses suggests that the company's capital structure may be fundamentally misaligned with its operational cash flow generation. Analysts should scrutinize the reliance on adjusted EBITDA metrics, as they appear to mask the underlying reality of a business that struggles to achieve GAAP profitability.
Financial data reveals that despite operating income scaling to $65.8M in 2026Q1, the company remains unable to translate this into bottom-line profitability, raising concerns that the debt-funded acquisition strategy may be creating a structural liability that limits long-term financial flexibility for the organization.
Short-sellers would likely focus on the disconnect between the company's growth-oriented narrative and the reality of persistent net losses and high interest burdens. This pattern suggests that the company's valuation may be overly dependent on future acquisition synergies that have yet to materialize in the form of consistent net income.
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.