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Dec 31, 2024

Surgery Partners Q4 2024 Earnings Report

Surgery Partners reported increased revenue but a net loss in Q4 2024.

Key Takeaways

Surgery Partners delivered strong revenue growth in Q4 2024, increasing 17.5% year-over-year. However, the company reported a net loss of $108.5 million due to a non-cash tax valuation allowance. Adjusted EBITDA grew to $163.8 million, reflecting continued operational improvements.

Revenue grew 17.5% YoY to $864.4 million.

Net loss was $108.5 million, impacted by a non-cash tax valuation allowance.

Adjusted EBITDA increased 15.1% to $163.8 million.

Same-facility revenues grew 5.6%, driven by case volume growth.

Total Revenue
$864M
Previous year: $735M
+17.5%
EPS
$0.44
Previous year: $0.44
+0.0%
Days adjusted revenue growth
5.6%
Previous year: 8.1%
-30.9%
Cases
174.19K
Previous year: 153.19K
+13.7%
Revenue per case
$4.96K
Previous year: $4.8K
+3.4%
Cash and Equivalents
$270M
Previous year: $196M
+37.6%
Total Assets
$7.89B
Previous year: $6.88B
+14.7%

Surgery Partners

Surgery Partners

Forward Guidance

Surgery Partners projects revenue growth for 2025, targeting up to $3.45 billion with strong EBITDA expansion.

Positive Outlook

  • 2025 revenue guidance set between $3.30B and $3.45B.
  • Adjusted EBITDA expected to grow to $555M-$565M.
  • Over $770M in liquidity provides financial flexibility.
  • Continued investment in acquisitions and de novo facilities.
  • Operational improvements expected to enhance margins.

Challenges Ahead

  • Net loss impact from deferred tax valuation adjustments.
  • Slight decline in surgical facility count.
  • Higher interest expenses affecting profitability.
  • Regulatory uncertainties may impact reimbursement rates.
  • Potential challenges in acquiring new physician partners.