#United States #Nashville #Senior Living #Brookdale #BKD

Brookdale Senior Living Inc. Reports Third Quarter 2025 Financial Highlights

Brookdale Senior Living Inc. (NYSE: BKD) has recently unveiled its financial results for the third quarter of 2025, highlighting an upward trend in occupancy and a positive adjustment to its annual guidance for Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization). The company reported a consolidated weighted average occupancy of 81.8%, marking a significant increase of 290 basis points compared to the prior year. Additionally, occupancy within the same communities also saw improvements, rising to an average of 82.3%. This upward trend underscores the growing demand for Brookdale's services amid a tightening supply of senior housing options.

CEO Insights

Nick Stengle, CEO of Brookdale, expressed enthusiasm about the company's robust performance during this quarter. He emphasized that the rising demand for senior living, combined with stagnant inventory growth, positioned Brookdale well to capitalize on current market dynamics. Stengle noted, "Our third quarter weighted average consolidated occupancy of 81.8% was our highest since the onset of the pandemic. The positive momentum we have observed in occupancy continues, showing resilience in our operational strategies."

Year-over-Year Performance

When comparing financial results year-over-year, the company reported total resident fees of $775.1 million, up from $743.7 million, reflecting a 4.2% increase. The same community operating income rose by 6%, further evidencing a strengthening of Brookdale's operational capabilities. Despite the positive trends, net losses increased to $114.7 million, reflecting a larger non-cash impairment charge of $62.7 million associated with anticipated asset dispositions. While the losses raised concerns, the growth in Adjusted EBITDA, which increased by 20.4% to $111.1 million, signals a more refined focus on core business operations and profitability.

Facility Expenses and Adjustments

Brookdale's facility operating expenses also showed an increase, attributed mainly to rising wages and utility costs, alongside the company's ongoing investments into its community assets. These expenses totaled $567 million for the quarter. Furthermore, general and administrative expenses rose by 13.2% to $50.9 million primarily due to transaction costs and organizational restructuring.

Liquidity and Future Outlook

The company's cash flow position improved significantly, with net cash provided by operating activities rising by $10.1 million to $76.5 million. Adjusted Free Cash Flow also saw gains, climbing to $21.8 million, an express indication of better liquidity management. Brookdale's total liquidity stood at $351.6 million at the close of Q3, comprised of unrestricted cash and cash equivalents, which reinforces the company’s capacity to manage current obligations and invest in future opportunities.

In light of its favorable third-quarter performance, Brookdale has revised its annual Adjusted EBITDA guidance to a range between $455 million and $460 million, up from its previous projection of $445 million to $455 million. Stengle affirmed the company’s commitment to maintaining positive Adjusted Free Cash Flow for 2025, which is expected to fall between $30 million and $50 million.

Conclusion

Brookdale Senior Living's Q3 results paint a picture of a company on the rebound, leveraging increased demand within the senior living sector while strategically managing its financial health. As Brookdale continues to refine its operational processes and enhance its service offerings, many stakeholders remain optimistic about its trajectory moving forward. With a focus on increasing shareholder value through profitable occupancy growth, the company appears poised to navigate the complexities of the senior living market with confidence and resilience.