Brookdale Senior Living 2025 Q3 Earnings Wider Losses, Raised Guidance Amid Strong Occupancy

Brookdale Senior Living (BKD) reported Q3 2025 earnings that fell short of revenue estimates while raising full-year guidance. The company’s net loss widened significantly year-over-year, but adjusted EBITDA growth and occupancy levels improved.

Revenue

Brookdale’s total revenue rose 3.7% to $813.16 million in Q3 2025, driven by higher resident fees and occupancy. The Assisted Living and Memory Care segment led with $531.94 million in resident fees, supported by a 5.3% increase in same-community RevPAR. Independent Living contributed $157 million, while Continuing Care Retirement Communities (CCRCs) added $86.20 million. Management fees and reimbursed costs totaled $2.70 million and $35.33 million, respectively. The company’s regional operating structure and portfolio optimization efforts appear to have bolstered performance across segments.

Earnings/Net Income

The company’s losses deepened, with a net loss of $114.74 million ($0.48 per share) in Q3 2025, a 126.2% increase from the prior year. This was driven by a $61.8 million non-cash impairment charge. Despite the loss, adjusted EBITDA rose 20.4% to $111.1 million, reflecting operational efficiency and higher occupancy. The widening net loss, however, underscores ongoing challenges in profitability.

Post-Earnings Price Action Review

Shares of Brookdale Senior Living surged 6.55% on the day of the earnings release, adding to a 16.13% monthly gain. The stock’s performance reflects optimism around the company’s occupancy recovery and raised guidance, though the earnings miss and wider losses may temper long-term sentiment. Analysts remain cautious, with a “hold” consensus rating and a median 12-month price target of $8.00, 13.9% below the closing price. The stock’s year-to-date gain of 84.3% highlights investor confidence in its strategic initiatives, including deleveraging and portfolio optimization.

CEO Commentary

CEO Nikolas Stengle highlighted a weighted average occupancy of 81.8% (82.3% same-store), the highest since pre-pandemic levels, and a 20% year-over-year adjusted EBITDA increase. Strategic priorities include refining regional operations, deploying $170M–$175M in CapEx for NOI-linked projects, and reducing leverage to below 6x. Stengle emphasized the “silver tsunami” demographic tailwinds and Brookdale’s position as the third-largest senior housing owner.

Guidance

Brookdale raised 2025 adjusted EBITDA guidance to $455M–$460M, up from $445M–$455M, and expects RevPAR growth above the 5.25%–6% midpoint. The company aims to leverage 80%+ occupancy thresholds for operating leverage, deleverage via EBITDA growth, and deploy strategic CapEx. Fourth-quarter adjusted EBITDA is projected to benefit from portfolio optimization, while 2026 plans focus on continued deleveraging and operational execution.

Additional News

Brookdale recently completed the acquisition of 25 senior living communities from Diversified Healthcare Trust and five from Welltower Inc., expanding its owned portfolio. The company plans to reduce its community count to 550 by mid-2026, exiting non-strategic assets through dispositions and lease terminations. Additionally, Brookdale announced $170M–$175M in CapEx for NOI-linked projects, underscoring its commitment to operational efficiency and capital deployment.