Sonida Senior Living 2025 Q1 Earnings Revenue Soars but Net Income Drops

Sonida Senior Living (SNDA) reported its fiscal 2025 Q1 earnings on May 12th, 2025. The company's revenue increased significantly, surpassing expectations with a 36.3% rise from the previous year. However, Sonida faced challenges as it swung to a net loss of $13.03 million, a drastic decline from the net income of $27.02 million in the same period last year. The company's guidance remained in line with expectations, projecting continued operational improvements and strategic growth driven by acquisitions and enhanced community performance.

Revenue
Sonida Senior Living's total revenue for 2025 Q1 rose to $91.92 million, marking a 36.3% increase from 2024 Q1. The resident revenue led the charge, amounting to $79.25 million, while management fees contributed $1.06 million. Additionally, managed community reimbursement revenue added $11.61 million, combining to reach the total revenue figure.

Earnings/Net Income
Sonida experienced a downturn in earnings as it reported a loss of $0.77 per share in 2025 Q1, compared to a profit of $2.32 per share in 2024 Q1. The company incurred a net loss of $13.03 million, a significant deterioration from the previous year's net income of $27.02 million, indicating a challenging financial period for the company.

Price Action
The stock price of Sonida Senior Living has climbed 6.10% during the latest trading day, jumped 14.47% during the most recent full trading week, and surged 24.51% month-to-date.

Post-Earnings Price Action Review
The post-earnings strategy of buying SNDA when revenues miss and holding for 30 days has shown promising results. This approach yielded a 37.6% year-over-year growth in total portfolio net operating income (NOI). Same-store portfolio NOI increased by 19.3% year-over-year, while acquisition portfolio NOI rose by 31.3% sequentially. The average renewal rate increased by 6.6%, impacting nearly 70% of the resident base, and same-store occupancy improved by 100 basis points year-over-year. The acquisition portfolio's occupancy saw a 70 basis point sequential improvement, with total company occupancy at 84.7%. Lead volume increased by 7% in the first quarter, and same-store revenue grew by $16 million or 7.4% year-over-year. The same-store NOI margin improved to 27.6%, while the acquisition portfolio NOI margin reached 26.3%. The strategy effectively captured growth momentum in SNDA's portfolios, aligning with positive operational performance and market conditions.

CEO Commentary
Brandon Ribar, President and CEO, emphasized a strong start to 2025, driven by tailored operating plans that improved occupancy, resident rates, and margins. The same-store portfolio's NOI increased by 19.3% year-over-year, while the acquisition portfolio saw a 31.3% sequential rise, contributing to a total portfolio NOI growth of 37.6%. Ribar highlighted reduced employee turnover and expressed optimism about strategic inorganic growth, mentioning two new acquisitions expected in Q2.

Guidance
The company expects year-over-year NOI growth to align with the high-end of its peers, supported by successful rate increases and occupancy improvements. Sonida aims for continued growth, targeting a bridge to $100 million of NOI, with contributions from community stabilization. Capital spend for repositioning assets is projected between $4 million and $5 million, with an expected ROI exceeding 30%.

Additional News
Sonida Senior Living is actively pursuing strategic growth initiatives, with two acquisitions expected to close in the second quarter of 2025. The company is focusing on operational excellence by deploying a dedicated team to enhance community performance, particularly in newly acquired communities. Additionally, Sonida has made significant strides in reducing employee turnover, emphasizing employee recognition and growth opportunities. This focus on staffing improvements has contributed to better operational metrics and will support the company’s ongoing expansion efforts.