Surgery Partners (SGRY) shares have declined 39.7% over the past 12 months, significantly underperforming the broader market. The underperformance occurred as Irenic Capital Management reduced its position by 1,047,583 shares during the fourth quarter of 2025, bringing its stake down to 0.09% of total assets and representing an approximate $19 million reduction in the fund's exposure to the healthcare services provider.
While Surgery Partners maintained operational momentum with 6.6% revenue growth during the period, investor concerns have centered on the company's capital structure. The healthcare operator's net debt-to-EBITDA ratio stands between 4.2x and 4.6x, a level viewed as elevated in the current higher interest rate environment. The leverage metrics have drawn scrutiny as rising borrowing costs place pressure on earnings and free cash flow generation in a sector where debt refinancing represents an ongoing consideration.
Surgery Partners' stock performance has lagged the S&P 500 by 51.61 percentage points over the measurement period, reflecting broader market skepticism regarding the sustainability of its current financial position despite steady topline growth.