SGRYMEDIUM SIGNALOPERATIONAL10-K

SGRY expanded its surgical facility footprint from 161 to 176 locations while achieving solid revenue growth and substantially improved net loss performance.

The company's operational expansion strategy appears to be gaining traction, with 15 new facilities added during the year and revenue growing 19.3% to $1.1 billion. The meaningful improvement in net losses, combined with higher operating income, suggests the business is achieving better operational leverage as it scales.

Comparing 2026-03-02 vs 2025-03-07View on EDGAR →
FINANCIAL ANALYSIS

SGRY delivered solid financial performance with revenue growing 19.3% to $1.1 billion and operating income advancing 11.7% to $389.5 million. Most notably, net losses improved substantially from -$168.1 million to -$77.9 million, indicating meaningful progress toward profitability. Cash declined modestly to $239.9 million, reflecting typical working capital needs as the business expands.

FINANCIAL STATEMENT CHANGES
Net Income
P&L
+53.7%
-$168.1M-$77.9M

Net income grew 53.7% — bottom-line growth signals improving overall business health.

Revenue
P&L
+19.3%
$959.9M$1.1B

Revenue growing 19.3% — solid top-line momentum, watch margins for quality of growth.

Operating Income
P&L
+11.7%
$348.8M$389.5M

Operating income improving — cost discipline or growing revenue base absorbing fixed costs.

Cash & Equivalents
Balance Sheet
-11%
$269.5M$239.9M

Cash decreased 11% — monitor burn rate and upcoming capital needs.

LANGUAGE CHANGES
NEW — 2026-03-02
PRIOR — 2025-03-07
ADDED
As of February 23, 2026, there were 129,419,836 shares of the registrant s common stock outstanding.
Patient services provided in our ASCs and surgical hospitals (collectively, "surgical facilities" or "facilities") generated approximately $3.2 billion in revenue during 2025.
Surgical Facilities Operations As of December 31, 2025, we owned or operated 176 surgical facilities, including 157 ASCs and 19 licensed surgical hospitals.
Our Surgical Facilities contributed substantially all of our total revenue in 2025, 2024 and 2023.
Of the 176 surgical facilities that were operational as of December 31, 2025, we hold majority ownership in 90 of these surgical facilities and consolidated 121 for financial reporting purposes.
On August 8, 2025, CMS published the IPPS final rule for federal fiscal year ("FFY") 2026, which began on October 1, 2025.
Those hospitals that do not successfully report quality data under the IQR Program (but are meaningful EHR users) would be subject to an approximate one-third reduction in their annual payment update.
On November 21, 2025, CMS published its OPPS final rule for 2026.
Certain off-campus HOPDs are paid under the Medicare Physician Fee Schedule ("MPFS"), which typically results in lower reimbursements.
These audits may result in adjustments to the amounts ultimately determined to be payable to us under these reimbursement programs.
REMOVED
As of February 24, 2025, there were 127,613,091 shares of the registrant s common stock outstanding.
Patient services provided in our ASCs and surgical hospitals (collectively, "surgical facilities" or "facilities") generated approximately $3.1 billion in revenue during 2024.
Surgical Facilities Operations As of December 31, 2024, we owned or operated 161 surgical facilities, including 142 ASCs and 19 licensed surgical hospitals.
Our Surgical Facilities contributed substantially all of our total revenue in 2024, 2023 and 2022.
Of the 161 surgical facilities that were operational as of December 31, 2024, we hold majority ownership in 83 of these surgical facilities and consolidated 118 for financial reporting purposes.
On August 1, 2024, CMS published the IPPS final rule for federal fiscal year ("FFY") 2025, which began on October 1, 2024.
Those hospitals that do not successfully report quality data under the IQR Program (but are meaningful EHR users) would be subject to a one-fourth reduction in their annual payment update.
On November 1, 2024, CMS published its OPPS final rule for 2025.
As a result of legislative changes related to off-campus HOPDs, certain off-campus HOPDs that began billing under the OPPS (or underwent certain changes) on or after November 2, 2015 are no longer paid for most services under the OPPS.
Instead, these facilities are paid under the Medicare Physician Fee Schedule ("MPFS"), which typically results in lower reimbursements.
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