Surgery Partners (1SP) AI Stock Analysis

Company Guidance

Surgery Partners reaffirmed full-year 2026 guidance of revenue of $3.35 billion to $3.45 billion and adjusted EBITDA of at least $530 million (excluding any impact from the pending Idaho Falls transaction) and said it will update guidance promptly after that sale closes; the Idaho Falls transaction is expected to yield approximately $795 million of gross proceeds and reduce consolidated leverage by roughly 0.3 turns. For context, reported Q2 net revenue was about $849 million (up 2.7% YoY) with adjusted EBITDA of about $125 million and a 14.7% adjusted EBITDA margin, while year-to-date net revenue was about $1.66 billion (up 3.6%) with adjusted EBITDA of about $228 million; excluding Idaho Falls, Q2 revenue would have been roughly $660 million with adjusted EBITDA of roughly $98 million (H1 ex-Idaho Falls: ~$1.29 billion revenue and ~$173 million adjusted EBITDA). At quarter end liquidity and leverage metrics included cash of ~$217 million, revolver borrowings of ~$75 million with ~$618 million available capacity, credit-agreement net debt leverage of ~4.4x (balance-sheet net debt/EBITDA ~5.1x), Q2 operating cash flow of ~$59 million (YTD ~$71 million), and Q2 interest of ~ $90 million.