Brookdale Senior Living 2025 Q2 Earnings Wider Net Loss but Stronger Guidance

Brookdale Senior Living reported mixed results for Q2 2025, with a wider-than-expected net loss but an increase in occupancy and revised guidance reflecting improved performance. Despite the earnings miss, the firm raised key metrics, signaling optimism for future recovery.

Revenue
Brookdale’s total revenue rose 4.6% year-over-year to $812.94 million. Resident fees remained the core revenue driver, contributing $775.61 million. Additional income came from management fees, amounting to $2.62 million, and reimbursed costs incurred on behalf of managed communities, totaling $34.71 million. The performance reflects the company’s continued focus on occupancy growth and operational execution across its senior living communities.

Earnings/Net Income
Despite improved revenue, Brookdale’s earnings continued to decline. The company posted a net loss of $43.04 million in Q2 2025, a 14.0% increase in losses compared to the prior year. On a per-share basis, the loss widened to $0.18, up from $0.17 in the same period last year. The earnings outcome reflects ongoing cost pressures and operational challenges.

Price Action
Following the earnings release, Brookdale’s stock edged down 0.26% in the latest trading day but gained 1.04% over the most recent full week. Month-to-date, the stock surged 16.59%, indicating some investor optimism despite the earnings loss.

Post-Earnings Price Action Review
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CEO Commentary
Denise Warren, Brookdale’s interim CEO and Chairman, expressed confidence in the company’s momentum. She highlighted improved occupancy rates, with acceleration in the second half of Q2 continuing into July, surpassing 80% in key properties. She emphasized the importance of profitable occupancy and operating income growth in driving sustainable shareholder value.

Guidance
Brookdale raised its annual guidance for the second consecutive quarter, citing stronger occupancy, operating income, and cash flow performance. Weighted average occupancy reached 80.1%, up 200 basis points year-over-year. Same Community operating income grew by 4.9%, and Adjusted Free Cash Flow improved by $25.4 million to $19.9 million. Although specific guidance ranges were not provided, the company remains focused on sustained occupancy and operating income growth to support durable cash flow and long-term value.

Additional News
Brookdale is actively improving occupancy in underperforming communities through its “SWAT team” initiative. As of Q2, 129 of its 617 communities reported occupancy below 70%, an improvement from 143 in Q1. Two SWAT teams are now in operation, targeting 137 communities with significant occupancy and revenue per occupied room gains. The company also announced a “permanent distressed asset team” to provide additional support to lagging properties. Brookdale will offload 55 leased communities and plans to divest 28 more over the next 12 to 18 months. Meanwhile, the CEO search committee is evaluating 50 potential candidates, with a goal to finalize the appointment in the coming months. Brookdale also continues its rollout of the HealthPlus care coordination program, which has reduced emergency care and hospitalizations among residents.