Brookdale Senior Living (BKD) Q4 2025 earnings summary

Executive summary

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

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

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

• Portfolio optimization included lease terminations, asset sales, and streamlining to 517 communities by mid-2026.

• Strategic priorities focused on operational excellence, real estate optimization, capital reinvestment, leverage reduction, and quality elevation.

Financial highlights

• 2025 Adjusted EBITDA was $458M, up 19% year-over-year, and full year resident fee revenue grew 2.4% to $3.04B.

• RevPAR increased 5.7% year-over-year to $5,134; Q4 2025 RevPAR up 7.1% to $5,219.

• Q4 2025 Adjusted EBITDA was $106M, up 7% year-over-year.

• Adjusted Free Cash Flow for 2025 was $22.8M, first positive year since 2020.

• Q4 2025 resident fees decreased 4% year-over-year to $714.5M, mainly due to community dispositions.

Outlook and guidance

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

• Mid-teens Adjusted EBITDA growth expected through 2028, with leverage targeted below 6x by end of 2028.

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

• Non-development CapEx projected at $175M–$195M for 2026, up from $170.7M in 2025.

• Guidance includes $162M in G&A expense and $180M in annual cash facility operating lease payments.