Brookdale Senior Living (BKD) Q4 2025 earnings summary

Executive summary

• Achieved a 19% increase in Adjusted EBITDA to $458 million for 2025, marking the fourth consecutive year of double-digit growth and surpassing guidance midpoint.

• Fourth quarter 2025 weighted average occupancy reached 82.5%, the highest since Q1 2020, with same-community occupancy at 83.5% and a 310 bps year-over-year increase.

• Adjusted Free Cash Flow turned positive for the first time since 2020, reaching $23 million for 2025.

• Portfolio optimization included significant lease terminations and planned sale of 29 owned communities in 2026, expected to generate $200 million in proceeds.

• Strategic priorities focus on operational excellence, real estate optimization, capital reinvestment, leverage reduction, and quality elevation for residents and associates.

Financial highlights

• Adjusted EBITDA grew 19% year-over-year to $458 million in 2025, with Q4 Adjusted EBITDA up 7% to $106 million.

• Resident fees increased 2.4% to $3.04 billion for 2025, driven by 5.7% RevPAR growth, offset by a 3.2% decline in average available units.

• Consolidated weighted average occupancy for 2025 was 80.9%.

• Q4 2025 resident fees decreased 4.0% year-over-year to $714.5 million, mainly due to community dispositions.

• Full year 2025 net loss was $263 million, with Q4 net loss narrowing to $40 million.

Outlook and guidance

• 2026 guidance: 8–9% RevPAR growth and Adjusted EBITDA of $502–$516 million.

• Expect mid-teen Adjusted EBITDA growth through 2028, targeting leverage below 6x by end of 2028.

• Non-development capital investment projected at $175 million–$195 million for 2026.

• General and administrative expense estimated at $162 million for 2026.

• Average occupancy is expected to exceed 83% in 2026, benefiting from favorable supply-demand dynamics.