Brookdale Senior Living reported third‑quarter 2025 results that highlighted a mix of operational strength and profitability challenges. Total revenue reached $813.2 million, down 1.7% from $827.2 million expected by analysts, largely because resident fees—$775.1 million—fell short of the $787 million consensus. The company’s net loss widened to $114.7 million, driven by a $50.7 million impairment charge related to the disposition of several communities, a one‑time hit that does not reflect ongoing operating performance.
Adjusted EBITDA climbed to $111.1 million, a 20.4% year‑over‑year increase, beating the consensus estimate of $106.1 million by $5.0 million. The lift came from a 4.2% rise in resident fees and a 3.4% increase in facility operating expenses, while cash facility lease payments fell 12.0% as the company transitioned many operating‑lease communities to a new lease structure with Ventas. The company’s occupancy rate hit 81.8%, the highest since the pandemic’s first quarter, and RevPAR rose to $5,158 per available unit, underscoring strong demand in its core markets.
Despite the EBITDA beat, Brookdale missed on earnings per share, reporting $-0.48 versus the consensus of $-0.17 to $-0.18—a miss of $0.31 or 176% to 182%. The miss reflects the impact of the impairment charge and the fact that the company’s operating income, while improving, still falls short of covering the one‑time costs. Revenue also fell short of expectations, indicating that the company’s pricing power is limited by competitive pressures and that the growth in resident fees is not fully translating into top‑line expansion.
Management raised its full‑year 2025 Adjusted EBITDA guidance to $455 million–$460 million, up from the prior $445 million–$455 million range. The upward revision signals confidence that the demand tailwind and cost‑control initiatives will continue to drive profitability, even as the company navigates the transition of lease obligations and the sale of nine owned communities for $7.1 million. The company also plans to market an additional 25 owned communities and expects to close six more sales in the next twelve months, a strategy aimed at improving cash flow and reducing leverage.
The company’s CEO, Nick Stengle, emphasized that the quarter’s occupancy momentum and EBITDA growth demonstrate the underlying strength of Brookdale’s business model. He noted that the company remains focused on delivering shareholder value through profitable occupancy and continued operational efficiency, while the portfolio optimization program is expected to support long‑term turnaround goals.
The market reaction to the earnings was muted, with investors focusing on the significant EPS and revenue misses. The company’s guidance, while positive, was tempered by the one‑time impairment charges and the need to manage ongoing operating expenses in a high‑cost environment. Analysts remain cautious, reflecting the balance between strong occupancy trends and the challenges of translating revenue growth into profitability.
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