Sonida Senior Living 2025 Q3 Earnings Net Loss Widens 91.7% Amid 31.2% Revenue Growth

Sonida Senior Living (SNDA) reported its fiscal 2025 Q3 earnings on Nov 11, 2025, revealing a 31.2% revenue surge to $98.04 million but a net loss widening to $27.35 million, or $1.56 per share. The results contrasted with a $0.98 per share loss in 2024 Q3. While revenue exceeded estimates, the EPS miss and broader industry challenges highlight operational pressures.

Revenue

Sonida’s total revenue rose to $98.04 million in Q3 2025, a 31.2% increase from $74.75 million in the prior year. Resident revenue, the largest segment, surged to $84.60 million, reflecting higher occupancy and rate growth. Management fees contributed $1.15 million, while managed community reimbursement revenue added $12.29 million. The performance underscores the company’s focus on expanding its senior living portfolio through acquisitions and operational optimization.

Earnings/Net Income

The company’s net loss widened to $27.35 million, or $1.56 per share, in Q3 2025, compared to a $14.27 million, or $0.98 per share, loss in 2024 Q3. The EPS loss represents a 59.2% deterioration year-over-year, driven by elevated operating expenses and transaction costs. Despite robust revenue growth, the widening loss highlights the challenges of scaling operations and integrating new acquisitions.

Post-Earnings Price Action Review

The strategy of buying SNDA shares on the date of its revenue raise announcement and holding for 30 days yielded positive returns, with an average gain of 12.86% over three years. This suggests a solid short-term holding strategy can be profitable, especially when coupled with positive earnings announcements. The strategy resulted in an average return of 12.86% over three years, indicating it was a profitable approach. There were 2 positive outcomes from 3 earnings releases, reflecting a success rate of approximately 67%. The highest return was 25.23%, which occurred when SNDA reported an earnings beat and a significant revenue increase, leading to a substantial stock price rise. The lowest return was 0.91%, following an earnings release with mixed results, resulting in a modest stock price increase. Key factors for success included positive earnings announcements and market response to improved financial performance. This backtest demonstrates that buying SNDA shares on the date of its revenue raise announcement and holding for 30 days can be a viable strategy, especially when the company’s financial performance is strong. However, investors should consider the current market conditions, SNDA’s specific circumstances, and the broader economic environment before applying this strategy in live trading.

CEO Commentary

CEO Brandon Ribar emphasized a 21% year-over-year increase in total portfolio net operating income (NOI), driven by occupancy gains and rate growth in acquired communities. Same-store occupancy rose 90 basis points to 87.7%, with October averaging 88%. Strategic priorities include the $1.8B acquisition of CNL Healthcare Properties, aimed at enhancing real estate quality and reducing leverage. Ribar also highlighted labor optimization through technology and portfolio recycling to higher-return acquisitions, expressing confidence in operational scalability and talent retention.

Guidance

Sonida outlined expectations for the CHP merger to close by late Q1 2026, targeting a 6x leverage ratio post-transaction. The company aims to resume its acquisition pace of 23 assets in 18 months and utilize a $300M revolver to fund growth in H2 2026. Qualitative guidance focuses on margin expansion via occupancy nearing 90%, labor cost control, and portfolio optimization. Quantitative metrics include a 10% yield on 2024 acquisition costs and $14M annualized total portfolio NOI growth year-over-year.

Additional News

Sonida’s $1.8B merger with CNL Healthcare Properties marks a pivotal step in its growth strategy, set to close by late Q1 2026. The deal will expand its portfolio to 153 communities, enhancing density in Texas and targeting high-growth regions. CEO Ribar highlighted the acquisition’s accretive impact on real estate quality and AFFO per share. Meanwhile, Zacks Investment Research assigned a #3 (Hold) rating to SNDA, citing mixed earnings estimate revisions. The company’s stock has surged 39% YTD, outperforming the S&P 500’s 14.4%, but faces near-term volatility as the market digests its financial performance and strategic execution.