Surgery Partners, Inc. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Total revenue for the third quarter of 2026 decreased 0.8% year-over-year to $815.3 million, compared to $821.5 million in the third quarter of 2025.
• Same-facility revenues increased 6.0% year-over-year, driven by a 5.8% increase in revenue per case and a 0.2% increase in same-facility cases.
• Net loss attributable to Surgery Partners, Inc. was $21.1 million for the third quarter of 2026, compared to a net loss of $22.7 million in the prior year period.
• Adjusted EBITDA was $132.7 million for the third quarter of 2026, down from $136.4 million in the third quarter of 2025.
• Year-to-date 2026 revenue increased 2.1% to $2,475.1 million compared to $2,423.7 million in the prior year period.
• Year-to-date 2026 Adjusted EBITDA was $360.2 million, compared to $369.3 million in the prior year period.
• Cash flows from operating activities were $103.5 million for the third quarter of 2026, compared to $83.6 million in the prior year period.
• Year-to-date operating cash flows were $174.5 million, compared to $170.9 million in the prior year period.
• The ratio of total net debt to EBITDA was approximately 4.4x at the end of the third quarter of 2026.

Guidance and Future Outlook:

• The Company will not provide forward-looking guidance due to the pending transaction with HealthSpan Partners.
• The Company will not host an earnings conference call.

Business Segments and Product Lines:

• The Company operates more than 200 locations in 30 states, including ambulatory surgery centers, surgical hospitals, multi-specialty physician practices, and urgent care facilities.
• The number of surgical facilities increased to 173 as of September 30, 2026, from 165 as of September 30, 2025.
• The number of consolidated surgical facilities increased to 115 as of September 30, 2026, from 114 as of September 30, 2025.
• Total cases for the third quarter of 2026 were 159,070, compared to 166,106 in the prior year period.
• Revenue per case for the third quarter of 2026 was $5,125, compared to $4,946 in the prior year period.

Market and Competitive Landscape:

• The Company is a leading short-stay surgical facility owner and operator focused on providing high-quality, cost-effective solutions for surgical and related ancillary care.

Risks and Challenges:

• Risks include the ability to consummate the proposed merger with HealthSpan Partners, satisfaction of closing conditions, regulatory approvals, and stockholder approval.
• Potential risks include litigation related to the merger, disruption to business operations, diversion of management attention, and the ability to retain key personnel.
• Risks also include the possibility that anticipated benefits from the sale of Idaho Falls facilities are not realized, potential adverse reactions to the merger, and changes in payor mix or surgical case mix.
• Additional risks involve competition for physicians and strategic relationships, supply chain issues, and the impact of legislative or regulatory developments.

Management Commentary and Tone:

• CEO Eric Evans stated that financial results reflect the impact of the successful Idaho Falls divestiture and sustained momentum in the core business.
• Management highlighted the value of the short-stay surgical platform and described the amended merger agreement with HealthSpan Partners as validation of their unique offering.
• Management expressed excitement to move forward with the next chapter while delivering high-quality care to patients and supporting physicians and health system partners.

Other Key Points:

• On November 9, 2026, Surgery Partners announced an amendment to its merger agreement with HealthSpan Partners following an unsolicited competing proposal.
• The amended merger consideration is $25.00 per share in cash, representing an enterprise value of up to approximately $6.0 billion.
• The amendment includes a "Ticking Fee" providing additional monthly cash payments to stockholders (excluding Bain Capital Private Equity affiliates) at a rate of 10% per annum on the $25.00 per share consideration if the merger has not occurred by March 1, 2027.
• The merger is expected to close in the first quarter of 2027, subject to stockholder approval, regulatory approvals, and other customary conditions.
• Surgery Partners had cash and cash equivalents of $354.5 million and $692.8 million of borrowing capacity under its revolving credit facility as of September 30, 2026.
• The Company divested its ownership of Idaho Falls facilities through September 13, 2026.