Irenic Capital Management cut its stake in Surgery Partners (SGRY 3.04%) by 1,047,583 shares in the fourth quarter, an estimated $19.25 million trade based on quarterly average pricing, according to a February 17, 2026, SEC filing.
What happened
Irenic Capital Management disclosed in a recent SEC filing that it sold 1,047,583 shares of Surgery Partners during the quarter ended December 31, 2025. The estimated value of shares sold was $19.25 million, based on the quarterly average share price. The fund’s quarter-end position in the company declined to 84,620 shares, with the value shift also reflecting price performance over the period.
What else to know
- This was a sell, reducing the position to 0.09% of Irenic’s $1.49 billion reportable U.S. equity assets under management as of December 31, 2025.
- Top holdings after the filing:
- NYSE: ITGR: $99.11 million (13.7% of AUM)
- NASDAQ: SHC: $67.00 million (9.3% of AUM)
- NASDAQ: TBPH: $51.66 million (7.1% of AUM)
- NASDAQ: ALKT: $48.60 million (6.7% of AUM)
- NYSE: WK: $47.61 million (6.6% of AUM)
- As of February 17, 2026, shares of Surgery Partners were priced at $15.60, down 39.7% in the past year and underperforming the S&P 500 by 51.61 percentage points over the same period.
Company overview
| Metric | Value |
|---|---|
| Revenue (TTM) | $3.29 billion |
| Net Income (TTM) | ($171.40 million) |
| Market Capitalization | $2.02 billion |
| Price (as of market close February 17, 2026) | $15.60 |
Company snapshot
- Surgery Partners operates a network of ambulatory surgery centers and surgical hospitals, offering non-emergency surgical procedures across specialties such as gastroenterology, orthopedics, ophthalmology, and pain management.
- The firm generates revenue primarily through facility fees for surgical procedures and ancillary services, including imaging, pharmacy, laboratory, and physician practices.
- It serves patients requiring outpatient and short-stay surgical care, targeting healthcare providers, payors, and referring physicians across U.S. states.
Surgery Partners, Inc. is a leading operator of surgical facilities in the United States, with a diversified portfolio spanning ambulatory surgery centers and surgical hospitals. The company leverages a scalable model focused on high-demand specialties and ancillary healthcare services, aiming to deliver efficient, cost-effective care outside of traditional hospital settings. Its broad national footprint and integrated service offerings position it to address evolving healthcare delivery trends and patient preferences.
What this transaction means for investors
Capital allocation decisions tell you where conviction is fading, and in this case, the remaining stake is now just 0.09% of assets, effectively a rounding error compared with larger positions in Integer, Shockwave and Alkami. That signals a clear re-prioritization.
Operationally, Surgery Partners is not imploding. Third quarter revenue rose 6.6% to $821.5 million, with same facility revenues up 6.3% and Adjusted EBITDA climbing 6.1% to $136.4 million. Revenue per case increased 2.8%, and full year guidance calls for up to $3.30 billion in revenue and as much as $540 million in Adjusted EBITDA.
The tension might be leverage. Net debt to EBITDA sits around 4.2x under the company’s credit agreement and 4.6x on a consolidated basis. In a higher rate environment, that matters. The stock, down nearly 40% over the past year, seemingly reflects that risk.
For long-term investors, the question is this balance sheet discipline. The outpatient model has structural tailwinds, but debt amplifies both upside and downside. If management executes on guidance while steadily reducing leverage, today’s valuation could prove conservative. If not, volatility will likely persist.
