Overview

• US short-stay surgical facility operator's Q1 revenue rose 4.5%, beating analyst expectations

• Adjusted EPS and adjusted EBITDA for Q1 both beat analyst expectations

• Company reaffirmed full-year 2026 revenue and adjusted EBITDA guidance

Outlook

• Surgery Partners sees 2026 revenue between $3.35 bln and $3.45 bln

• Company expects 2026 Adjusted EBITDA of at least $530 mln

• Company says cost management and physician recruitment are key to meeting 2026 targets

Result Drivers

• REVENUE PER CASE - Q1 same-facility revenue growth was driven by a 3.8% increase in revenue per case

• CASE VOLUME - Same-facility cases rose 0.6% year-over-year, contributing to revenue growth

• COST MANAGEMENT - Management cited cost management discipline and portfolio optimization as key operational focuses

Company press release: ID:nGNX8CP8dx

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 Revenue	Beat	$810.90 mln	$797.89 mln (11 Analysts)
Q1 Adjusted EPS	Beat	-$0.03	-$0.12 (12 Analysts)
Q1 Adjusted EBITDA	Beat	$102.30 mln	$100.79 mln (11 Analysts)
Q1 Adjusted EBITDA Margin		12.60%
Q1 Operating Income		$65.80 mln
Q1 Pretax Profit		-$3.30 mln

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 9 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the healthcare facilities & services peer group is "buy"

• Wall Street's median 12-month price target for Surgery Partners Inc is $19.00, about 33.8% above its May 4 closing price of $14.20

• The stock recently traded at 48 times the next 12-month earnings vs. a P/E of 20 three months ago

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