$SGRY

Surgery Partners, Inc.

CIK:0001638833|SEC Filings

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)
shares in Thousands, $ in Millions

3 Months Ended

6 Months Ended

Jun. 30, 2026

Jun. 30, 2025

Jun. 30, 2026

Jun. 30, 2025

Income Statement [Abstract]

Revenues

$ 848.9

$ 826.2

$ 1,659.8

$ 1,602.2

Operating expenses:

Salaries and benefits

253.1

235.2

500.5

473.8

Supplies

226.8

215.0

447.0

430.8

Professional and medical fees

102.8

102.1

204.1

197.4

Lease expense

24.2

22.9

47.2

43.7

Other operating expenses

51.8

55.4

110.6

99.0

Cost of revenues

658.7

630.6

1,309.4

1,244.7

General and administrative expenses

36.3

36.1

75.6

72.1

Depreciation and amortization

39.3

40.3

77.8

76.6

Transaction and integration costs

18.4

18.1

34.0

42.8

Net (gain) loss on disposals, consolidations and deconsolidations

2.4

(3.0)

6.7

3.4

Equity in earnings of unconsolidated affiliates

(6.4)

(5.5)

(10.5)

(11.1)

Litigation settlements

0.0

2.5

2.2

Other income, net

(1.9)

(2.1)

(3.6)

(2.1)

Total operating expenses

746.8

714.5

1,491.9

1,428.6

Operating income

102.1

111.7

167.9

173.6

Interest expense, net

(69.8)

(67.9)

(138.9)

(130.1)

Income (loss) before income taxes

32.3

43.8

29.0

43.5

Income tax (expense) benefit

(2.6)

1.1

(1.4)

1.1

Net income (loss)

29.7

44.9

27.6

44.6

Less: Net income attributable to non-controlling interests

(44.7)

(47.4)

(78.5)

(84.8)

Net income (loss) attributable to Surgery Partners, Inc.

$ (15.0)

$ (2.5)

$ (50.9)

$ (40.2)

Net income (loss) per share attributable to common stockholders:

Basic (in USD per share)

$ (0.12)

$ (0.02)

$ (0.40)

$ (0.32)

Diluted (in USD per share)

^[1]

$ (0.12)

$ (0.02)

$ (0.40)

$ (0.32)

Weighted average common shares outstanding:

Basic (shares)

128,825

126,980

128,597

126,792

Diluted (shares)

^[1]

128,825

126,980

128,597

126,792

[1]	The impact of potentially dilutive securities for all periods was not considered because the effect would be anti-dilutive.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Cash flows from operating activities:
Net income (loss)	$ 27.6	$ 44.6
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization	77.8	76.6
Non-cash lease expense	20.3	19.5
Non-cash interest expense, net	4.5	4.0
Equity-based compensation expense	9.6	14.4
Net loss on disposals, consolidations and deconsolidations	6.7	3.4
Deferred income taxes	0.9	(1.8)
Equity in earnings of unconsolidated affiliates, net of distributions received	1.4	0.2
Changes in operating assets and liabilities, net of acquisitions and divestitures:
Accounts receivable	(11.4)	8.5
Other operating assets and liabilities	(66.4)	(82.1)
Net cash provided by (used in) operating activities	71.0	87.3
Cash flows from investing activities:
Purchases of property and equipment	(37.8)	(46.1)
Payments for acquisitions, net of cash acquired	(4.1)	(48.0)
Proceeds from disposals of facilities and other assets	0.3	42.9
Purchases of equity investments	0.0	(3.8)
Proceeds from sales of equity investments	0.9	0.0
Other investing activities	7.5	(19.3)
Net cash provided by (used in) investing activities	(33.2)	(74.3)
Cash flows from financing activities:
Principal payments on long-term debt	(310.2)	(299.4)
Borrowings of long-term debt	350.0	382.2
Payments of debt issuance costs	(0.4)	0.0
Distributions to non-controlling interest holders	(103.5)	(116.3)
Proceeds related to ownership transactions with non-controlling interest holders	3.0	3.1
Other financing activities	0.1	(2.0)
Net cash provided by (used in) financing activities	(61.0)	(32.4)
Net increase (decrease) in cash and cash equivalents	(23.2)	(19.4)
Cash and cash equivalents at beginning of period	239.9	269.5
Cash and cash equivalents at end of period	$ 216.7	$ 250.1

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	Jun. 30, 2026	Dec. 31, 2025
Current assets:
Cash and cash equivalents	$ 216.7	$ 239.9
Accounts receivable	616.6	602.2
Inventories	98.8	96.6
Prepaid expenses	48.3	41.1
Other current assets	145.6	170.9
Total current assets	1,126.0	1,150.7
Property and equipment, net of accumulated depreciation of $718.0 and $651.2, respectively	1,122.7	1,153.4
Goodwill and other intangible assets, net	5,242.1	5,235.6
Investments in and advances to affiliates	226.9	234.0
Right-of-use operating lease assets	278.5	289.2
Other long-term assets	53.5	56.8
Total assets	8,049.7	8,119.7
Current liabilities:
Accounts payable	175.2	208.7
Accrued payroll and benefits	73.1	64.9
Other current liabilities	227.3	242.6
Current maturities of long-term debt	102.9	99.3
Total current liabilities	578.5	615.5
Long-term debt, less current maturities	3,648.3	3,602.9
Right-of-use operating lease liabilities	266.3	279.9
Long-term deferred tax liabilities	54.4	53.4
Other long-term liabilities	33.8	41.2
Non-controlling interests—redeemable	366.7	395.5
Stockholders' equity:
Preferred stock, $0.01 par value; shares authorized - 20,310,000; shares issued or outstanding - none	0.0	0.0
Common stock, $0.01 par value; shares authorized - 300,000,000; shares issued and outstanding - 130,886,397 and 129,321,144, respectively	1.3	1.3
Additional paid-in capital	2,544.4	2,540.6
Accumulated other comprehensive income (loss)	(8.9)	(13.8)
Retained deficit	(866.1)	(815.2)
Total Surgery Partners, Inc. stockholders' equity	1,670.7	1,712.9
Non-controlling interests—non-redeemable	1,431.0	1,418.4
Total stockholders' equity	3,101.7	3,131.3
Total liabilities and stockholders' equity	$ 8,049.7	$ 8,119.7