Brookdale Senior Living 2025 Q1 Earnings Net Loss Widens by 119.7%

Brookdale Senior Living (BKD) reported its fiscal 2025 Q1 earnings on May 07th, 2025. The company's revenue for the first quarter increased by 4.0% to $813.86 million, compared to $782.83 million in the same period last year. However, the net loss widened significantly to $-64.99 million, representing a 119.7% increase from the $-29.58 million loss recorded in 2024 Q1. Despite the losses, Brookdale has raised its annual guidance, reflecting its confidence in continued growth throughout 2025.

Revenue

Brookdale Senior Living's revenue for Q1 2025 saw an uptick of 4.0%, reaching $813.86 million, compared to the previous year's $782.83 million. The breakdown includes resident fees at $777.45 million, independent living contributing $157.12 million, and assisted living and memory care generating $533.38 million. Management fees added $2.62 million, while reimbursed costs incurred on behalf of managed communities were $33.79 million. The continuing care retirement communities (CCRCs) segment brought in $86.96 million, and all other segments together contributed $36.41 million.

Earnings/Net Income

Brookdale Senior Living's earnings per share (EPS) reflected a deeper loss of $0.28 in Q1 2025, compared to a loss of $0.13 in Q1 2024—a 115.4% increase in the loss per share. The company's net loss expanded to $-64.99 million from $-29.58 million in the previous year, underscoring ongoing challenges.

Post-Earnings Price Action Review

Over the past five years, Brookdale Senior Living's strategy of purchasing shares post a quarterly revenue decline and holding them for 30 days has proven largely unprofitable. The approach has resulted in a -2.32% return, considerably underperforming the benchmark's 84.08% return. With an excess return of -86.40% and a compound annual growth rate (CAGR) of -0.47%, the strategy has incurred substantial losses. Additionally, a maximum drawdown of -33.57% and a Sharpe ratio of -0.03 highlight the high risk and negative returns associated with this strategy, rendering it unsuitable for investors seeking growth or income.

CEO Commentary

“Our solid first quarter results and annual guidance raise are a testament to the significant momentum underway at Brookdale as we continue to meet the diverse needs of the large aging older adult population,” said Denise Warren, Interim Chief Executive Officer and Chairman. The company delivered financial and operational results above expectations, establishing a strong foundation for growth in 2025. The management team is executing its strategy to position Brookdale for accelerated growth, confident in their ability to generate significant cash flow and drive substantial shareholder value creation in the near and long term.

Guidance

Brookdale anticipates continued growth, with management expressing confidence in achieving strong financial results and increasing cash flow throughout 2025. The company expects to maintain its upward momentum in occupancy and operating income, positioning itself effectively in the senior living market. The Board and management team will focus on executing strategies that enhance shareholder value and address the diverse needs of the aging population.

Additional News

Brookdale Senior Living has recently undergone significant leadership changes. On April 14, 2025, the company announced a transition in its CEO position, with Lucinda "Cindy" M. Baier stepping down. Denise W. Warren, the current Chairman of the Board, has taken over as Interim CEO. Additionally, Brookdale is refreshing its Board of Directors, appointing Mark Fioravanti as a new independent director to strengthen corporate governance. The leadership transition aims to optimize performance and enhance shareholder returns. The company is actively searching for a permanent CEO to guide Brookdale through its next phase of growth, focusing on leveraging its real estate value and improving occupancy rates.