Brookdale Senior Living (BKD) grows 2025 EBITDA 18.5% despite larger net loss
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Brookdale Senior Living reported full year 2025 resident fee revenue of
Consolidated RevPAR grew
The company refinanced
Positive
- Strong cash-earnings growth: 2025 Adjusted EBITDA increased
18.5% to$457.8 million , outpacing revenue growth and supported by higher RevPAR and occupancy. - Improving liquidity and de-risked maturities: Total liquidity reached
$377.7 million , and the company refinanced$596.9 million of mortgage debt, eliminating remaining 2026 maturities and part of 2027 maturities.
Negative
- Continued losses and equity deficit: Net loss widened to
$262.7 million and Brookdale ended 2025 with a stockholders’ equity deficit of$44.8 million . - High leverage: Net Debt of
$4,007.2 million and Adjusted Net Debt of$5,205.3 million imply a leverage ratio around 9.0x Adjusted EBITDA after cash financing lease payments.
Insights
Brookdale is growing cash earnings and occupancy but remains highly leveraged and loss-making.
Brookdale delivered solid operating momentum in 2025. Resident fee revenue increased
Despite this, the company still posted a net loss of
Management refinanced
| UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 | |||||||||||
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Section 2 - Financial Information
Item 2.02 Results of Operations and Financial Condition.
On February 18, 2026, Brookdale Senior Living Inc. (the "Company") issued a press release announcing its fourth quarter and full year 2025 financial results and announcing a conference call to review these results. A copy of the press release is furnished herewith as Exhibit 99.1.
Supplemental information related to the Company's fourth quarter and full year 2025 results is furnished herewith as Exhibit 99.2.
The information furnished pursuant to this Current Report on Form 8-K (including the exhibits hereto) shall not be considered "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, nor shall it be incorporated by reference into any filing by the Company under the Securities Act of 1933, as amended, or under the Securities Exchange Act of 1934, as amended, unless the Company expressly sets forth by specific reference in such filing that such information is to be considered "filed" or incorporated by reference therein.
Section 7 - Regulation FD
Item 7.01 Regulation FD Disclosure.
The information set forth in Item 2.02 of this report is incorporated herein by reference.
Section 9 - Financial Statements and Exhibits
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
99.1 Press Release dated February 18, 2026
99.2 Supplemental Information
104 Cover Page Interactive Data File (embedded within the Inline XBRL document)
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| BROOKDALE SENIOR LIVING INC. | |||||||||||||||||
| Date: | February 18, 2026 | By: | /s/ Chad C. White | ||||||||||||||
| Name: | Chad C. White | ||||||||||||||||
| Title: | Executive Vice President, General Counsel and Secretary | ||||||||||||||||
Exhibit 99.1
Brookdale Announces Fourth Quarter and Full Year 2025 Results
Brentwood, Tenn., February 18, 2026 - Brookdale Senior Living Inc. (NYSE: BKD) ("Brookdale" or the "Company") announced results for the quarter and full year ended December 31, 2025, which are consistent with the preliminary results announced on January 28, 2026.
HIGHLIGHTS
•Increased full year 2025 consolidated revenue per available unit (RevPAR) by 5.7% over the prior year, which is above the midpoint of the Company's previously announced guidance range.
•Improved fourth quarter 2025 consolidated weighted average occupancy by 310 basis points over the prior year quarter on strong move-in volume.
•Full year 2025 net loss was $263 million, and full year 2025 Adjusted EBITDA(1) of $458 million is above the midpoint of the Company's previously announced full-year guidance range.
•Beneficially refinanced all of the approximately $350 million remaining 2026 mortgage debt maturities and approximately $200 million of 2027 mortgage debt maturities, while further strengthening balance sheet.
“Brookdale’s fourth quarter results continued the positive momentum displayed throughout 2025, as we position Brookdale to capitalize on increasing industry demand in a suppressed supply growth environment,” said Nick Stengle, Brookdale’s Chief Executive Officer. “We are pleased with the results we delivered as we focus on operational excellence and delivering shareholder value. We are excited about the opportunities in 2026 for further progress, which is demonstrated by our recently provided annual guidance of mid-teens year over year growth in Adjusted EBITDA for our ongoing portfolio and 8% to 9% RevPAR growth.”
SUMMARY OF FOURTH QUARTER FINANCIAL RESULTS
Consolidated summary of operating results and metrics:
| Increase / (Decrease) | ||||||||||||||
| ($ in millions, except RevPAR and RevPOR) | 4Q 2025 | 4Q 2024 | Amount | Percent | ||||||||||
| Resident fees | $ | 714.5 | $ | 744.4 | $ | (29.9) | (4.0)% | |||||||
| Facility operating expense | 529.7 | 554.9 | (25.2) | (4.5)% | ||||||||||
| General and administrative expense | 41.4 | 48.5 | (7.1) | (14.6)% | ||||||||||
| Cash facility operating lease payments | 43.7 | 55.9 | (12.2) | (21.8)% | ||||||||||
| Net income (loss) | (40.0) | (83.9) | (43.9) | (52.4)% | ||||||||||
| Adjusted EBITDA | 105.6 | 98.5 | 7.1 | 7.1% | ||||||||||
| RevPAR | $ | 5,219 | $ | 4,873 | $ | 346 | 7.1% | |||||||
| Weighted average occupancy | 82.5% | 79.4% | 310 bps | n/a | ||||||||||
| RevPOR | $ | 6,324 | $ | 6,136 | $ | 188 | 3.1% | |||||||
(1) Adjusted EBITDA and Adjusted Free Cash Flow are financial measures that are not calculated in accordance with GAAP. See "Non-GAAP Financial Measures" for the Company's definition of such measures, reconciliations to the most comparable GAAP financial measures, and other important information regarding the use of the Company's non-GAAP financial measures.
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Same community(2) summary of operating results and metrics:
| Increase / (Decrease) | ||||||||||||||
| ($ in millions, except RevPAR and RevPOR) | 4Q 2025 | 4Q 2024 | Amount | Percent | ||||||||||
| Resident fees | $ | 657.5 | $ | 626.4 | $ | 31.1 | 5.0% | |||||||
| Facility operating expense | $ | 475.8 | $ | 451.7 | $ | 24.1 | 5.3% | |||||||
| RevPAR | $ | 5,295 | $ | 5,045 | $ | 250 | 5.0% | |||||||
| Weighted average occupancy | 83.5% | 81.0% | 250 bps | n/a | ||||||||||
| RevPOR | $ | 6,341 | $ | 6,231 | $ | 110 | 1.8% | |||||||
(2) The same community senior housing portfolio includes operating results and data for 517 communities consolidated and operational for the full period in both comparison years. Consolidated communities excluded from the same community portfolio include communities acquired or disposed of since the beginning of the prior year, communities classified as assets held for sale, certain communities planned for disposition including through asset sales or lease terminations, certain communities that have undergone or are undergoing expansion, redevelopment, and repositioning projects, and certain communities that have experienced a casualty event that significantly impacts their operations. To aid in comparability, same community operating results exclude natural disaster expense. The same community portfolio excludes 31 communities, including 29 communities (2,364 units) that the Company plans to sell.
SUMMARY OF OCCUPANCY RESULTS: 2024 - 2026 YEAR TO DATE
Recent consolidated occupancy trend:
| 2024 | ||||||||||||||||||||||||||||||||||||||
| Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | |||||||||||||||||||||||||||
| Weighted average | 78.0% | 77.9% | 77.9% | 77.9% | 78.1% | 78.2% | 78.6% | 78.9% | 79.2% | 79.4% | 79.5% | 79.3% | ||||||||||||||||||||||||||
| Month end | 79.3% | 79.2% | 79.1% | 79.2% | 79.5% | 79.7% | 79.9% | 80.4% | 80.5% | 80.8% | 80.4% | 80.5% | ||||||||||||||||||||||||||
| 2025 | 2026 | |||||||||||||||||||||||||||||||||||||||||||
| Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | Jan | ||||||||||||||||||||||||||||||||
| Weighted average | 79.2% | 79.3% | 79.5% | 79.8% | 80.0% | 80.5% | 81.1% | 81.8% | 82.5% | 82.6% | 82.5% | 82.4% | 82.3% | |||||||||||||||||||||||||||||||
| Month end | 80.6% | 80.8% | 80.9% | 81.0% | 81.5% | 82.2% | 82.6% | 83.2% | 83.8% | 83.7% | 83.4% | 83.7% | 83.3% | |||||||||||||||||||||||||||||||
Recent same community occupancy trend:
| 2024 | ||||||||||||||||||||||||||||||||||||||
| Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | |||||||||||||||||||||||||||
| Weighted average | 79.6% | 79.5% | 79.5% | 79.6% | 79.7% | 79.8% | 80.2% | 80.5% | 80.8% | 80.9% | 81.1% | 80.9% | ||||||||||||||||||||||||||
| Month end | 80.9% | 80.8% | 80.7% | 80.9% | 81.1% | 81.3% | 81.5% | 82.0% | 82.0% | 82.4% | 82.0% | 82.1% | ||||||||||||||||||||||||||
| 2025 | 2026 | |||||||||||||||||||||||||||||||||||||||||||
| Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | Jan | ||||||||||||||||||||||||||||||||
| Weighted average | 80.8% | 81.0% | 81.2% | 81.5% | 81.6% | 82.0% | 82.7% | 83.1% | 83.4% | 83.6% | 83.5% | 83.3% | 82.9% | |||||||||||||||||||||||||||||||
| Month end | 82.2% | 82.5% | 82.6% | 82.7% | 83.0% | 83.7% | 84.0% | 84.4% | 84.7% | 84.9% | 84.3% | 84.3% | 83.9% | |||||||||||||||||||||||||||||||
•January 2026 occupancy slightly decreased on a sequential basis from December 2025, reflecting the normal seasonal trend. Month-end occupancy was slightly impacted by the winter storms across much of the southern United States which resulted in delayed move-in activity.
OVERVIEW OF RESULTS: 4Q 2025 vs 4Q 2024
•Resident fees:
◦The decrease was primarily due to the disposition of communities, primarily through lease terminations, since the beginning of the prior year period, which resulted in $63.1 million less in resident fees during the fourth quarter of 2025.
◦The decrease was partially offset by the 5.0% increase in same community resident fees, which was primarily due to the 250 basis point increase in same community weighted average occupancy and the increase in RevPOR, primarily the result of the current year annual rate increase.
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•Facility operating expense: The decrease was primarily due to the disposition of communities since the beginning of the prior year period, which resulted in $46.8 million less in facility operating expense during the fourth quarter of 2025, partially offset by increases in wage rates, use of premium labor, and estimated incentive compensation expense for the Company's same community portfolio.
•General and administrative expense: The decrease was primarily due to $7.0 million of legal expenses related to certain putative class action litigation recognized in the fourth quarter of 2024.
•Cash facility operating lease payments: The decrease was primarily due to the disposition of communities through lease terminations.
•Net income (loss): The decrease in net loss was primarily attributable to the decrease in facility operating expense, a decrease in depreciation and amortization expense primarily due to the disposition of communities through lease terminations, a $15.5 million loss on debt extinguishment recognized in the fourth quarter of 2024 for the Company's convertible notes exchange and issuance transactions, and the $7.0 million of legal expenses recognized in the fourth quarter of 2024, partially offset by the decrease in resident fees.
•Adjusted EBITDA: The increase was primarily due to the increase in same community resident fees, partially offset by the increase in same community facility operating expense.
FULL YEAR RESULTS
Consolidated summary of operating results and metrics:
| Year-Over-Year Increase / (Decrease) | ||||||||||||||
| ($ in millions, except RevPAR and RevPOR) | 2025 | 2024 | Amount | Percent | ||||||||||
| Resident fee revenue | $ | 3,042.7 | $ | 2,972.1 | $ | 70.6 | 2.4% | |||||||
| Facility operating expense | 2,216.0 | 2,183.3 | 32.7 | 1.5% | ||||||||||
| General and administrative expense | 195.1 | 185.9 | 9.2 | 5.0% | ||||||||||
| Cash facility operating lease payments | 214.6 | 249.4 | (34.8) | (13.9)% | ||||||||||
| Net income (loss) | (262.7) | (202.0) | 60.7 | 30.1% | ||||||||||
| Adjusted EBITDA | 457.8 | 386.2 | 71.6 | 18.5% | ||||||||||
| RevPAR | $ | 5,134 | $ | 4,858 | $ | 276 | 5.7% | |||||||
| Weighted average occupancy | 80.9% | 78.6% | 230 bps | n/a | ||||||||||
| RevPOR | $ | 6,347 | $ | 6,182 | $ | 165 | 2.7% | |||||||
Same community summary of operating results and metrics:
| Year-Over-Year Increase / (Decrease) | ||||||||||||||
| ($ in millions, except RevPAR and RevPOR) | 2025 | 2024 | Amount | Percent | ||||||||||
| Resident fee revenue | $ | 2,626.6 | $ | 2,499.3 | $ | 127.3 | 5.1% | |||||||
| Facility operating expense | $ | 1,863.5 | $ | 1,779.7 | $ | 83.8 | 4.7% | |||||||
| RevPAR | $ | 5,288 | $ | 5,032 | $ | 256 | 5.1% | |||||||
| Weighted average occupancy | 82.3% | 80.2% | 210 bps | n/a | ||||||||||
| RevPOR | $ | 6,423 | $ | 6,276 | $ | 147 | 2.3% | |||||||
LIQUIDITY
Consolidated summary of liquidity metrics:
| ($ in millions) | 4Q 2025 | 4Q 2024 | Increase / (Decrease) | ||||||||
| Net cash provided by operating activities | $ | 34.5 | $ | 45.2 | $ | (10.7) | |||||
| Non-development capital expenditures, net | 42.3 | 42.1 | 0.2 | ||||||||
Adjusted Free Cash Flow(1) | (22.7) | (11.5) | (11.2) | ||||||||
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•The decreases in net cash provided by operating activities and Adjusted Free Cash Flow were primarily due to changes in working capital.
•Total liquidity: Total liquidity of $377.7 million as of December 31, 2025 included $279.1 million of unrestricted cash and cash equivalents and $98.6 million of availability on the Company's secured credit facility. Total liquidity as of December 31, 2025 increased $26.1 million from September 30, 2025, primarily attributable to the net impact of the Company's financing transactions in the fourth quarter of 2025.
Consolidated summary of liquidity metrics for the full year:
| ($ in millions) | 2025 | 2024 | Increase / (Decrease) | ||||||||
| Net cash provided by operating activities | $ | 218.0 | $ | 166.2 | $ | 51.8 | |||||
| Non-development capital expenditures, net | 170.7 | 186.8 | (16.1) | ||||||||
Adjusted Free Cash Flow | 22.8 | (29.5) | 52.3 | ||||||||
TRANSACTION AND FINANCING UPDATE
Mortgage Debt
In December 2025, the Company completed a series of financing transactions with multiple lenders totaling $596.9 million. Through these transactions, the Company refinanced all of its $346.3 million remaining 2026 mortgage debt maturities and $190.7 million of its 2027 mortgage debt maturities, while further strengthening its balance sheet. For more information related to the December 2025 financing transactions, refer to the press release issued by the Company on January 8, 2026.
Lease Terminations
During the fourth quarter of 2025, the Company completed terminations of leases on 42 communities (4,713 units) with Ventas, Inc. ("Ventas"), which completed the terminations of leases on 55 communities provided in the December 2024 agreement with Ventas.
Owned Community Dispositions
During the fourth quarter of 2025, the Company completed the sale of two owned communities (225 units) and received cash proceeds of $18.0 million, net of transaction costs.
During 2026, the Company plans to sell 29 owned communities (2,364 units), including nine owned communities (953 units) classified as held for sale as of December 31, 2025, and the Company believes it will generate approximately $200.0 million of proceeds from the sale of the 29 owned communities. The closings of the expected sales of assets are subject (where applicable) to the Company's successful marketing of such assets on terms acceptable to the Company. Further, the closings of the expected sales of assets are, or will be, subject to the satisfaction of various conditions, including (where applicable) the receipt of regulatory approvals. There can be no assurance that the transactions will close or, if they do, when the actual closings will occur.
2026 OUTLOOK
For the full year 2026, the Company is reiterating the following guidance provided on January 28, 2026 in conjunction with its Investor Day:
Full Year 2026 Guidance | |||||
RevPAR year-over-year growth | 8.0% to 9.0% | ||||
| Adjusted EBITDA | $502 million to $516 million | ||||
Full year 2026 consolidated RevPAR growth guidance gives effect to the accretive impact of completed and announced disposition activities and the 2025 lease termination activities and the Company's higher year-over-year annual resident rate increase for 2026 as compared to 2025.
Full year 2026 guidance reflects management's current expectations for transaction activity. Reconciliation of the non-GAAP financial measure included in the foregoing guidance to the most comparable GAAP financial measure is not available without unreasonable effort due to the inherent difficulty in forecasting the timing or amounts of items required to reconcile Adjusted EBITDA from the Company's net income (loss). Variability in the timing or amounts of items required to reconcile the measure may have a significant impact on the Company's future GAAP results.
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SUPPLEMENTAL INFORMATION
The Company will post on its website at brookdaleinvestors.com supplemental information relating to the Company's fourth quarter and full year 2025 results, an updated investor presentation, and a copy of this earnings release. The supplemental information and a copy of this earnings release will also be furnished in a Form 8-K to be filed with the SEC.
EARNINGS CONFERENCE CALL
Brookdale's management will conduct a conference call to discuss the financial results for the fourth quarter on February 19, 2026 at 9:00 AM ET.
A live webcast of the conference call will be available to the public on a listen-only basis at brookdaleinvestors.com. Please allow extra time before the call to download the necessary software required to listen to the internet broadcast. A replay of the webcast will be available through the website following the call.
ABOUT BROOKDALE SENIOR LIVING
Brookdale Senior Living Inc. is the nation’s premier operator of senior living communities. With 584 communities across 41 states and the ability to serve approximately 51,000 residents as of December 31, 2025, Brookdale is committed to its mission of enriching the lives of seniors through compassionate care, clinical expertise, and exceptional service. The Company, through its affiliates, operates independent living, assisted living, memory care, and continuing care retirement communities, offering tailored solutions that help empower seniors to live with dignity, connection, and purpose. Leveraging deep expertise in healthcare, hospitality, and real estate, Brookdale creates opportunities for wellness, personal growth, and meaningful relationships in settings that feel like home. Guided by its four cornerstones of passion, courage, partnership, and trust, Brookdale is committed to delivering exceptional value and redefining senior living for a brighter, healthier future. Brookdale's stock trades on the New York Stock Exchange under the ticker symbol BKD. For more information, visit brookdale.com or connect with Brookdale on Facebook at facebook.com/brookdaleseniorliving or YouTube at youtube.com/BrookdaleLiving.
DEFINITIONS OF REVPAR AND REVPOR
RevPAR, or average monthly senior housing resident fee revenue per available unit, is defined by the Company as resident fee revenue for the corresponding portfolio for the period (excluding revenue for private duty services provided to seniors living outside of the Company's communities), divided by the weighted average number of available units in the corresponding portfolio for the period, divided by the number of months in the period.
RevPOR, or average monthly senior housing resident fee revenue per occupied unit, is defined by the Company as resident fee revenue for the corresponding portfolio for the period (excluding revenue for private duty services provided to seniors living outside of the Company's communities), divided by the weighted average number of occupied units in the corresponding portfolio for the period, divided by the number of months in the period.
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SAFE HARBOR
Certain statements in this press release and the associated earnings call may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to various risks and uncertainties and include all statements that are not historical statements of fact and those regarding the Company's intent, belief, or expectations. Forward-looking statements are generally identifiable by use of forward-looking terminology such as "may," "will," "should," "could," "would," "potential," "intend," "expect," "endeavor," "seek," "anticipate," "estimate," "believe," "project," "predict," "continue," "plan," "target," or other similar words or expressions, and include statements regarding the Company's expected financial and operational results. These forward-looking statements are based on certain assumptions and expectations, and the Company's ability to predict results or the actual effect of future plans or strategies is inherently uncertain. Although the Company believes that expectations reflected in any forward-looking statements are based on reasonable assumptions, it can give no assurance that its assumptions or expectations will be attained and actual results and performance could differ materially from those projected. Factors which could have a material adverse effect on the Company's operations and future prospects or which could cause events or circumstances to differ from the forward-looking statements include, but are not limited to, events which adversely affect the ability of seniors to afford resident fees, including downturns in the economy, housing market, consumer confidence, or the equity markets and unemployment among resident family members; the effects of senior housing construction and development, lower industry occupancy, and increased competition; conditions of housing markets, regulatory changes, acts of nature, and the effects of climate change in geographic areas where the Company is concentrated; terminations of the Company's resident agreements and vacancies in the living spaces it leases; changes in reimbursement rates, methods, or timing under governmental reimbursement programs including the Medicare and Medicaid programs; failure to maintain the security and functionality of the Company's information systems, to prevent a cybersecurity attack or breach, or to comply with applicable privacy and consumer protection laws, including HIPAA; the Company's ability to complete its capital expenditures in accordance with its plans; the Company's ability to identify and pursue development, investment, and acquisition opportunities and its ability to successfully integrate acquisitions; competition for the acquisition of assets; the Company's ability to complete pending or expected disposition, acquisition, or other transactions on agreed upon terms or at all, including in respect of the satisfaction of closing conditions, the risk that regulatory approvals are not obtained or are subject to unanticipated conditions, and uncertainties as to the timing of closing, and the Company's ability to identify and pursue any such opportunities in the future; risks related to the implementation of the Company's strategy, including initiatives undertaken to execute on the Company's strategic priorities and their effect on its results; limits on the Company's ability to use net operating loss carryovers to reduce future tax payments; delays in obtaining regulatory approvals; the risks associated with tariffs and the uncertain duration of trade conflicts; disruptions in the financial markets or decreases in the appraised values or performance of the Company's communities that affect the Company's ability to obtain financing or extend or refinance debt as it matures and the Company's financing costs; the Company's ability to generate sufficient cash flow to cover required interest, principal, and long-term lease payments and to fund its planned capital projects; the effect of any non-compliance with any of the Company's debt or lease agreements (including the financial or other covenants contained therein), including the risk of lenders or lessors declaring a cross default in the event of the Company's non-compliance with any such agreements and the risk of loss of the Company's property securing leases and indebtedness due to any resulting lease terminations and foreclosure actions; the inability to renew, restructure, or extend leases, or exercise purchase options at or prior to the end of any existing lease term; the effect of the Company's indebtedness and long-term leases on the Company's liquidity and its ability to operate its business; increases in market interest rates that increase the costs of the Company's debt obligations; the Company's ability to obtain additional capital on terms acceptable to it; departures of key officers and potential disruption caused by changes in management; increased competition for, or a shortage of, associates, wage pressures resulting from increased competition, low unemployment levels, minimum wage increases and changes in overtime laws, and union activity; an adverse determination or resolution of complaints filed against the Company, including putative class action complaints; negative publicity with respect to any lawsuits, claims, or other legal or regulatory proceedings; costs to respond to, and adverse determinations resulting from, government inquiries, reviews, audits, and investigations; the cost and difficulty of complying with increasing and evolving regulation, including new disclosure obligations; changes in, or its failure to comply with, employment-related laws and regulations; environmental contamination at any of the Company's communities; failure to comply with existing environmental laws; the risks associated with current global economic conditions and general economic factors on the Company and the Company's business partners such as inflation, commodity costs, fuel and other energy costs, competition in the labor market, costs of salaries, wages, benefits, and insurance, interest rates, tax rates, tariffs, and geopolitical tensions or conflicts, the impact of seasonal contagious illness or other contagious disease in the markets in which the Company operates; actions of activist stockholders; as well as other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission ("SEC"), including those set forth in the Company's Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. When considering forward-looking statements, you should keep in mind the risk factors and other cautionary statements in such SEC filings. Readers are cautioned not to place undue reliance on any of these forward-looking statements, which reflect management's views as of the date of this press release and/or associated earnings call. The Company cannot guarantee future results, levels of activity, performance or achievements, and, except as required by law, it expressly disclaims any obligation to release publicly any updates or revisions to any forward-looking statements contained in this press release and/or associated earnings call to reflect any change in the Company's expectations with regard thereto or change in events, conditions, or circumstances on which any statement is based.
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Condensed Consolidated Statements of Operations
| Three Months Ended December 31, | Years Ended December 31, | ||||||||||||||||||||||
| (in thousands, except per share data) | 2025 | 2024 | 2025 | 2024 | |||||||||||||||||||
| Resident fees | $ | 714,504 | $ | 744,371 | $ | 3,042,712 | $ | 2,972,050 | |||||||||||||||
| Management fees | 2,912 | 2,611 | 10,853 | 10,521 | |||||||||||||||||||
| Reimbursed costs incurred on behalf of managed communities | 36,677 | 33,966 | 140,501 | 142,916 | |||||||||||||||||||
| Total revenue | 754,093 | 780,948 | 3,194,066 | 3,125,487 | |||||||||||||||||||
Facility operating expense (excluding facility depreciation and amortization of $72,260, $85,575, $336,897 and $330,664, respectively) | 529,727 | 554,922 | 2,216,016 | 2,183,261 | |||||||||||||||||||
General and administrative expense (including non-cash stock-based compensation expense of $2,236, $3,533, $11,937, and $14,184 respectively) | 41,428 | 48,525 | 195,141 | 185,850 | |||||||||||||||||||
| Facility operating lease expense | 42,743 | 46,190 | 200,263 | 200,587 | |||||||||||||||||||
| Depreciation and amortization | 76,906 | 93,569 | 355,527 | 357,788 | |||||||||||||||||||
| Asset impairment | 6,289 | 5,915 | 71,349 | 8,557 | |||||||||||||||||||
| Loss (gain) on sale of communities, net | (2,186) | — | (2,368) | — | |||||||||||||||||||
| Loss (gain) on facility operating lease termination, net | (341) | — | 4,139 | — | |||||||||||||||||||
| Costs incurred on behalf of managed communities | 36,677 | 33,966 | 140,501 | 142,916 | |||||||||||||||||||
| Income (loss) from operations | 22,850 | (2,139) | 13,498 | 46,528 | |||||||||||||||||||
| Interest income | 2,795 | 5,007 | 12,382 | 19,162 | |||||||||||||||||||
| Interest expense: | |||||||||||||||||||||||
| Debt | (57,144) | (54,120) | (227,540) | (215,525) | |||||||||||||||||||
| Financing lease obligations | (1,683) | (12,528) | (10,797) | (27,761) | |||||||||||||||||||
| Amortization of deferred financing costs | (3,686) | (2,795) | (14,775) | (9,723) | |||||||||||||||||||
| Change in fair value of derivatives | (93) | 2,438 | (1,180) | 434 | |||||||||||||||||||
| Gain (loss) on debt modification and extinguishment, net | (4,426) | (18,495) | (40,087) | (20,762) | |||||||||||||||||||
| Non-operating gain (loss) on sale of assets, net | — | — | — | 923 | |||||||||||||||||||
| Other non-operating income (loss) | 240 | 2,255 | 3,802 | 9,376 | |||||||||||||||||||
| Income (loss) before income taxes | (41,147) | (80,377) | (264,697) | (197,348) | |||||||||||||||||||
| Benefit (provision) for income taxes | 1,171 | (3,560) | 1,951 | (4,646) | |||||||||||||||||||
| Net income (loss) | (39,976) | (83,937) | (262,746) | (201,994) | |||||||||||||||||||
| Net (income) loss attributable to noncontrolling interest | 13 | 15 | 54 | 59 | |||||||||||||||||||
| Net income (loss) attributable to Brookdale Senior Living Inc. common stockholders | $ | (39,963) | $ | (83,922) | $ | (262,692) | $ | (201,935) | |||||||||||||||
| Basic and diluted net income (loss) per share attributable to Brookdale Senior Living Inc. common stockholders | $ | (0.17) | $ | (0.37) | $ | (1.12) | $ | (0.89) | |||||||||||||||
| Weighted average shares used in computing basic and diluted net income (loss) per share | 237,703 | 229,272 | 235,177 | 227,525 | |||||||||||||||||||
Page 7
Condensed Consolidated Balance Sheets
| (in thousands) | December 31, 2025 | December 31, 2024 | |||||||||
| Cash and cash equivalents | $ | 279,122 | $ | 308,925 | |||||||
| Marketable securities | — | 19,879 | |||||||||
| Restricted cash | 33,227 | 39,871 | |||||||||
| Accounts receivable, net | 67,680 | 51,891 | |||||||||
| Assets held for sale | 77,206 | — | |||||||||
| Prepaid expenses and other current assets, net | 96,705 | 92,371 | |||||||||
| Total current assets | 553,940 | 512,937 | |||||||||
| Property, plant and equipment and leasehold intangibles, net | 4,272,697 | 4,594,401 | |||||||||
| Operating lease right-of-use assets | 1,032,140 | 1,133,837 | |||||||||
| Other assets, net | 93,466 | 94,387 | |||||||||
| Total assets | $ | 5,952,243 | $ | 6,335,562 | |||||||
| Current portion of long-term debt | $ | 77,492 | $ | 40,779 | |||||||
| Current portion of financing lease obligations | 1,211 | 37,007 | |||||||||
| Current portion of operating lease obligations | 74,522 | 111,104 | |||||||||
| Other current liabilities | 414,700 | 390,873 | |||||||||
| Total current liabilities | 567,925 | 579,763 | |||||||||
| Long-term debt, less current portion | 4,215,005 | 4,022,008 | |||||||||
| Financing lease obligations, less current portion | 24,353 | 266,895 | |||||||||
| Operating lease obligations, less current portion | 1,123,539 | 1,174,204 | |||||||||
| Other liabilities | 64,798 | 78,787 | |||||||||
| Total liabilities | 5,995,620 | 6,121,657 | |||||||||
| Total Brookdale Senior Living Inc. stockholders' equity (deficit) | (44,753) | 212,475 | |||||||||
| Noncontrolling interest | 1,376 | 1,430 | |||||||||
| Total equity (deficit) | (43,377) | 213,905 | |||||||||
| Total liabilities and equity (deficit) | $ | 5,952,243 | $ | 6,335,562 | |||||||
Page 8
Condensed Consolidated Statements of Cash Flows
| Years Ended December 31, | |||||||||||
| (in thousands) | 2025 | 2024 | |||||||||
| Cash Flows from Operating Activities | |||||||||||
| Net income (loss) | $ | (262,746) | $ | (201,994) | |||||||
| Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||||||
| Loss (gain) on debt modification and extinguishment, net | 40,087 | 20,762 | |||||||||
| Depreciation and amortization, net | 370,302 | 367,511 | |||||||||
| Asset impairment | 71,349 | 8,557 | |||||||||
| Deferred income tax (benefit) provision | (3,288) | 3,617 | |||||||||
| Operating lease expense adjustment | (14,349) | (48,793) | |||||||||
| Change in fair value of derivatives | 1,180 | (434) | |||||||||
| Loss (gain) on sale of assets, net | (2,368) | (923) | |||||||||
| Loss (gain) on facility operating lease termination, net | 4,139 | — | |||||||||
| Non-cash stock-based compensation expense | 11,937 | 14,184 | |||||||||
| Property and casualty insurance income | (3,875) | (8,532) | |||||||||
| Changes in operating assets and liabilities: | |||||||||||
| Accounts receivable, net | (15,788) | (3,498) | |||||||||
| Prepaid expenses and other assets, net | (15,481) | (21,560) | |||||||||
| Prepaid insurance premiums financed with notes payable | — | — | |||||||||
| Trade accounts payable and accrued expenses | 4,464 | 15,697 | |||||||||
| Refundable fees and deferred revenue | 5,280 | 5,221 | |||||||||
| Operating lease assets and liabilities for lessor capital expenditure reimbursements | 32,187 | 16,362 | |||||||||
| Operating lease assets and liabilities for lease termination | (5,000) | — | |||||||||
| Net cash provided by operating activities | 218,030 | 166,177 | |||||||||
| Cash Flows from Investing Activities | |||||||||||
| Purchase of marketable securities | — | (49,054) | |||||||||
| Sale and maturities of marketable securities | 20,000 | 60,000 | |||||||||
| Capital expenditures, net of related payables | (201,525) | (201,250) | |||||||||
| Acquisition of assets, net of cash acquired | (311,028) | (108,411) | |||||||||
| Proceeds from sale of assets, net | 26,147 | 7,017 | |||||||||
| Property and casualty insurance proceeds | 3,875 | 8,548 | |||||||||
| Change in lease acquisition deposits, net | 5,000 | (5,000) | |||||||||
| Purchase of interest rate cap instruments | (3,825) | (10,149) | |||||||||
| Proceeds from interest rate cap instruments | 5,627 | 20,563 | |||||||||
| Other | (222) | (330) | |||||||||
| Net cash provided by (used in) investing activities | (455,951) | (278,066) | |||||||||
| Cash Flows from Financing Activities | |||||||||||
| Proceeds from debt | 918,077 | 765,652 | |||||||||
| Repayment of debt and financing lease obligations | (692,366) | (594,997) | |||||||||
| Payment of financing costs, net of related payables | (18,149) | (25,157) | |||||||||
| Payments of employee taxes for withheld shares | (6,473) | (3,437) | |||||||||
| Net cash provided by (used in) financing activities | 201,089 | 142,061 | |||||||||
| Net increase (decrease) in cash, cash equivalents, and restricted cash | (36,832) | 30,172 | |||||||||
| Cash, cash equivalents, and restricted cash at beginning of period | 379,840 | 349,668 | |||||||||
| Cash, cash equivalents, and restricted cash at end of period | $ | 343,008 | $ | 379,840 | |||||||
Page 9
Non-GAAP Financial Measures
This earnings release contains the financial measures Adjusted EBITDA and Adjusted Free Cash Flow, which are not calculated in accordance with U.S. generally accepted accounting principles ("GAAP"). Presentations of these non-GAAP financial measures are intended to aid investors in better understanding the factors and trends affecting the Company’s performance and liquidity. However, investors should not consider these non-GAAP financial measures as a substitute for financial measures determined in accordance with GAAP, including net income (loss), income (loss) from operations, or net cash provided by operating activities. The Company cautions investors that amounts presented in accordance with the Company’s definitions of these non-GAAP financial measures may not be comparable to similar measures disclosed by other companies because not all companies calculate non-GAAP measures in the same manner. The Company urges investors to review the following reconciliations of these non-GAAP financial measures from the most comparable financial measures determined in accordance with GAAP.
Adjusted EBITDA
Adjusted EBITDA is a non-GAAP performance measure that the Company defines as net income (loss) excluding: benefit/provision for income taxes, non-operating income/expense items, and depreciation and amortization; and further adjusted to exclude income/expense associated with non-cash, non-operational, transactional, legal, cost reduction, or organizational restructuring items that management does not consider as part of the Company’s underlying core operating performance and that management believes impact the comparability of performance between periods. For the periods presented herein, such other items include non-cash impairment charges, operating lease expense adjustment, non-cash stock-based compensation expense, gain/loss on sale of communities, gain/loss on facility operating lease termination, and transaction, legal, and organizational restructuring costs. Transaction costs include those directly related to acquisition, disposition, financing, and leasing activity and stockholder relations advisory matters, and are primarily comprised of legal, finance, consulting, professional fees, and other third-party costs. Legal costs include charges associated with putative class action litigation. Organizational restructuring costs include those related to the Company’s efforts to reduce general and administrative expense and its senior leadership changes, including severance.
The Company believes that presentation of Adjusted EBITDA as a performance measure is useful to investors because (i) it is one of the metrics used by the Company’s management for budgeting and other planning purposes, to review the Company’s historic and prospective core operating performance, and to make day-to-day operating decisions; (ii) it provides an assessment of operational factors that management can impact in the short-term, namely revenues and the controllable cost structure of the organization, by eliminating items related to the Company’s financing and capital structure and other items that management does not consider as part of the Company’s underlying core operating performance and that management believes impact the comparability of performance between periods; (iii) the Company believes that this measure is used by research analysts and investors to evaluate the Company’s operating results and to value companies in its industry; and (iv) the Company uses the measure for components of executive compensation.
Adjusted EBITDA has material limitations as a performance measure, including: (i) excluded interest and income tax are necessary to operate the Company’s business under its current financing and capital structure; (ii) excluded depreciation, amortization, and impairment charges may represent the wear and tear and/or reduction in value of the Company’s communities, goodwill, and other assets and may be indicative of future needs for capital expenditures; and (iii) the Company may incur income/expense similar to those for which adjustments are made, such as gain/loss on sale of assets, facility operating lease termination, or debt modification and extinguishment, non-cash stock-based compensation expense, and transaction, legal, and other costs, and such income/expense may significantly affect the Company’s operating results.
Page 10
The tables below reconcile Adjusted EBITDA from net income (loss).
| Three Months Ended | |||||||||||
| (in thousands) | December 31, 2025 | December 31, 2024 | |||||||||
| Net income (loss) | $ | (39,976) | $ | (83,937) | |||||||
| Provision (benefit) for income taxes | (1,171) | 3,560 | |||||||||
| Loss (gain) on debt modification and extinguishment, net | 4,426 | 18,495 | |||||||||
| Other non-operating (income) loss | (240) | (2,255) | |||||||||
| Interest expense | 62,606 | 67,005 | |||||||||
| Interest income | (2,795) | (5,007) | |||||||||
| Income (loss) from operations | 22,850 | (2,139) | |||||||||
| Depreciation and amortization | 76,906 | 93,569 | |||||||||
| Asset impairment | 6,289 | 5,915 | |||||||||
| Loss (gain) on sale of communities, net | (2,186) | — | |||||||||
| Loss (gain) on facility operating lease termination, net | (341) | — | |||||||||
| Operating lease expense adjustment | (965) | (9,732) | |||||||||
| Non-cash stock-based compensation expense | 2,236 | 3,533 | |||||||||
| Transaction, legal, and organizational restructuring costs | 770 | 7,379 | |||||||||
| Adjusted EBITDA | $ | 105,559 | $ | 98,525 | |||||||
| Years Ended December 31, | |||||||||||
| (in thousands) | 2025 | 2024 | |||||||||
| Net income (loss) | $ | (262,746) | $ | (201,994) | |||||||
| Provision (benefit) for income taxes | (1,951) | 4,646 | |||||||||
| Loss (gain) on debt modification and extinguishment, net | 40,087 | 20,762 | |||||||||
| Non-operating loss (gain) on sale of assets, net | — | (923) | |||||||||
| Other non-operating (income) loss | (3,802) | (9,376) | |||||||||
| Interest expense | 254,292 | 252,575 | |||||||||
| Interest income | (12,382) | (19,162) | |||||||||
| Income (loss) from operations | 13,498 | 46,528 | |||||||||
| Depreciation and amortization | 355,527 | 357,788 | |||||||||
| Asset impairment | 71,349 | 8,557 | |||||||||
| Loss (gain) on sale of communities, net | (2,368) | — | |||||||||
| Loss (gain) on facility operating lease termination, net | 4,139 | — | |||||||||
| Operating lease expense adjustment | (14,349) | (48,793) | |||||||||
| Non-cash stock-based compensation expense | 11,937 | 14,184 | |||||||||
| Transaction, legal, and organizational restructuring costs | 18,086 | 7,930 | |||||||||
| Adjusted EBITDA | $ | 457,819 | $ | 386,194 | |||||||
Adjusted Free Cash Flow
Adjusted Free Cash Flow is a non-GAAP liquidity measure that the Company defines as net cash provided by operating activities before: distributions from unconsolidated ventures from cumulative share of net earnings, changes in prepaid insurance premiums financed with notes payable, changes in operating lease assets and liabilities for lease termination, cash paid/received for gain/loss on facility operating lease termination, and lessor capital expenditure reimbursements under operating leases; plus: property and casualty insurance proceeds; less: non-development capital expenditures and payment of financing lease obligations. Non-development capital expenditures are comprised of corporate and community-level capital expenditures, including those related to maintenance, renovations, upgrades, and other major building infrastructure projects for the Company’s communities and is presented net of lessor reimbursements. Non-development capital expenditures do not include capital expenditures for: community expansions, major community redevelopment and repositioning projects, and the development of new communities.
Page 11
The Company believes that presentation of Adjusted Free Cash Flow as a liquidity measure is useful to investors because (i) it is one of the metrics used by the Company’s management for budgeting and other planning purposes, to review the Company’s historic and prospective sources of operating liquidity, and to review the Company’s ability to service its outstanding indebtedness, pay dividends to stockholders, engage in share repurchases, and make capital expenditures, including development capital expenditures; and (ii) it provides an indicator to management to determine if adjustments to current spending decisions are needed.
Adjusted Free Cash Flow has material limitations as a liquidity measure, including: (i) it does not represent cash available for dividends, share repurchases, or discretionary expenditures since certain non-discretionary expenditures, including mandatory debt principal payments, are not reflected in this measure; (ii) the cash portion of non-recurring charges related to gain/loss on facility lease termination generally represent charges/gains that may significantly affect the Company’s liquidity; and (iii) the impact of timing of cash expenditures, including the timing of non-development capital expenditures, limits the usefulness of the measure for short-term comparisons.
The tables below reconcile Adjusted Free Cash Flow from net cash provided by operating activities.
| Three Months Ended | |||||||||||
| (in thousands) | December 31, 2025 | December 31, 2024 | |||||||||
| Net cash provided by operating activities | $ | 34,539 | $ | 45,198 | |||||||
| Net cash provided by (used in) investing activities | (44,602) | (144,550) | |||||||||
| Net cash provided by (used in) financing activities | 21,744 | 147,147 | |||||||||
| Net increase (decrease) in cash, cash equivalents, and restricted cash | $ | 11,681 | $ | 47,795 | |||||||
| Net cash provided by operating activities | $ | 34,539 | $ | 45,198 | |||||||
| Changes in prepaid insurance premiums financed with notes payable | (7,610) | (7,930) | |||||||||
| Changes in assets and liabilities for lessor capital expenditure reimbursements under operating leases | (12,149) | (8,630) | |||||||||
| Changes in operating lease assets and liabilities for lease termination | 5,000 | — | |||||||||
| Non-development capital expenditures, net | (42,318) | (42,121) | |||||||||
| Property and casualty insurance proceeds | 184 | 2,251 | |||||||||
| Payment of financing lease obligations | (305) | (284) | |||||||||
| Adjusted Free Cash Flow | $ | (22,659) | $ | (11,516) | |||||||
| Years Ended December 31, | |||||||||||
| (in thousands) | 2025 | 2024 | |||||||||
| Net cash provided by operating activities | $ | 218,030 | $ | 166,177 | |||||||
| Net cash provided by (used in) investing activities | (455,951) | (278,066) | |||||||||
| Net cash provided by (used in) financing activities | 201,089 | 142,061 | |||||||||
| Net increase (decrease) in cash, cash equivalents, and restricted cash | $ | (36,832) | $ | 30,172 | |||||||
| Net cash provided by operating activities | $ | 218,030 | $ | 166,177 | |||||||
| Changes in assets and liabilities for lessor capital expenditure reimbursements under operating leases | (32,187) | (16,362) | |||||||||
| Changes in operating lease assets and liabilities for lease termination | 5,000 | — | |||||||||
| Non-development capital expenditures, net | (170,700) | (186,755) | |||||||||
| Property and casualty insurance proceeds | 3,875 | 8,548 | |||||||||
| Payment of financing lease obligations | (1,195) | (1,084) | |||||||||
| Adjusted Free Cash Flow | $ | 22,823 | $ | (29,476) | |||||||
Contact:
Mike Grant
VP Investor Relations
(615) 564-8104
Mike.Grant@brookdale.com
Page 12
Supplemental Information 4th Quarter 2025 Exhibit 99.2
2 Overview 3 Segment Overview 6 Senior Housing 7 General and Administrative ("G&A") Expense 12 Capital Expenditures 13 Cash Facility Lease Payments 14 Capital Structure 15 Definitions 16 Appendix: Non-GAAP Financial Measures 18 Table of Contents
3 Managed 4,374 Owned 33,262 Leased 10,608 Managed 36 Owned 370 Leased 178 584 communities 48,244 units During the six months ended December 31, 2025, the Company completed terminations of leases on 57 communities (6,294 units), which completed the terminations of leases on 55 communities provided in the December 2024 agreement with Ventas, Inc. Important Note Regarding Non-GAAP Financial Measures • Adjusted EBITDA and Adjusted Free Cash Flow are financial measures that are not calculated in accordance with GAAP. See "Definitions" and "Non-GAAP Financial Measures" for the definitions of such measures and other important information regarding such measures, including reconciliations to the most comparable GAAP measures. 2024 2025 4Q25 vs 4Q24 Full Year 25 vs 24 ($ in 000s, except RevPAR and RevPOR) 1Q 2Q 3Q 4Q Full Year 1Q 2Q 3Q 4Q Full Year Better B (Worse) (W) B(W) RevPAR $ 4,854 $ 4,835 $ 4,869 $ 4,873 $ 4,858 $ 5,090 $ 5,080 $ 5,158 $ 5,219 $ 5,134 7.1 % 5.7 % Weighted average occupancy 77.9% 78.1% 78.9% 79.4% 78.6% 79.3% 80.1% 81.8% 82.5% 80.9% 310 bps 230 bps RevPOR $ 6,228 $ 6,193 $ 6,171 $ 6,136 $ 6,182 $ 6,416 $ 6,343 $ 6,307 $ 6,324 $ 6,347 3.1 % 2.7 % Total Average Units 51,039 50,927 50,836 50,839 50,910 50,840 50,812 50,012 45,526 49,297 (10.5) % (3.2) % Resident fees $ 744,241 $ 739,709 $ 743,729 $ 744,371 $ 2,972,050 $ 777,454 $ 775,614 $ 775,140 $ 714,504 $ 3,042,712 $ 3,042,712 (4.0) % 2.4 % Net income (loss) $ (29,581) $ (37,742) $ (50,734) $ (83,937) $ (201,994) $ (64,993) $ (43,039) $ (114,738) $ (39,976) $ (262,746) 52.4 % (30.1) % Net cash provided by (used in) operating activities $ (1,146) $ 55,670 $ 66,455 $ 45,198 $ 166,177 $ 23,402 $ 83,564 $ 76,525 $ 34,539 $ 218,030 (23.6) % 31.2 % Adjusted EBITDA $ 97,616 $ 97,816 $ 92,237 $ 98,525 $ 386,194 $ 124,139 $ 117,050 $ 111,071 $ 105,559 $ 457,819 7.1 % 18.5 % Adjusted Free Cash Flow $ (26,287) $ (5,526) $ 13,853 $ (11,516) $ (29,476) $ 3,780 $ 19,908 $ 21,794 $ (22,659) $ 22,823 (96.8) % NM 4Q 2025 weighted average occupancy (consolidated communities) Occupancy Band Community Count % of Period End Communities Greater than 95% 95 17% 90% > 95% 92 17% 85% > 90% 80 15% 80% > 85% 76 13% 75% > 80% 71 13% 70% > 75% 54 10% Less than 70% 80 15% Total 548 100% Overview As of December 31, 2025 Consolidated: 43,870 Consolidated: 548
4 2024 2025 4Q25 vs 4Q24 Full Year 25 vs 24 ($ in 000s) 1Q 2Q 3Q 4Q Full Year 1Q 2Q 3Q 4Q Full Year B(W) B(W) Resident fees $ 744,241 $ 739,709 $ 743,729 $ 744,371 $ 2,972,050 $ 777,454 $ 775,614 $ 775,140 $ 714,504 $ 3,042,712 (4.0) % 2.4 % Management fees 2,618 2,616 2,676 2,611 10,521 2,620 2,623 2,698 2,912 10,853 11.5 % 3.2 % Facility operating expense (542,550) (537,507) (548,282) (554,922) (2,183,261) (556,987) (562,317) (566,985) (529,727) (2,216,016) 4.5 % (1.5) % Combined Segment Operating Income 204,309 204,818 198,123 192,060 799,310 223,087 215,920 210,853 187,689 837,549 (2.3) % 4.8 % General and administrative expense (1) (42,108) (42,555) (41,460) (37,613) (163,736) (42,221) (41,371) (43,104) (38,422) (165,118) (2.2) % (0.8) % Cash facility operating lease payments (see page 14) (64,585) (64,447) (64,426) (55,922) (249,380) (56,727) (57,499) (56,678) (43,708) (214,612) 21.8 % 13.9 % Adjusted EBITDA 97,616 97,816 92,237 98,525 386,194 124,139 117,050 111,071 105,559 457,819 7.1 % 18.5 % Transaction, Legal, and Organizational Restructuring Costs (2) (351) (134) (66) (7,379) (7,930) (1,674) (10,513) (5,129) (770) (18,086) 89.6 % (128.1) % Interest expense, net (see page 14) (53,739) (54,174) (54,570) (61,641) (224,124) (56,611) (56,479) (56,833) (56,032) (225,955) 9.1 % (0.8) % Payment of financing lease obligations (262) (265) (273) (284) (1,084) (289) (297) (304) (305) (1,195) (7.4) % (10.2) % Changes in working capital (3) (21,929) 3,741 15,024 (976) (4,140) (21,535) 17,378 11,769 (29,137) (21,525) NM NM Non-Development Capital Expenditures, net (see page 13) (50,591) (52,325) (41,718) (42,121) (186,755) (41,127) (48,814) (38,441) (42,318) (170,700) (0.5) % 8.6 % Property and casualty insurance proceeds 2,642 62 3,593 2,251 8,548 1,415 2,072 204 184 3,875 (91.8) % (54.7) % Other (4) 327 (247) (374) 109 (185) 3 2 (538) (489) (543) 160 (1,410) 46.8 % NM Adjusted Free Cash Flow $ (26,287) $ (5,526) $ 13,853 $ (11,516) $ (29,476) $ 3,780 $ 19,908 $ 21,794 $ (22,659) $ 22,823 (96.8) % NM Adjusted EBITDA and Adjusted Free Cash Flow (1) Excludes non-cash stock-based compensation expense and Transaction, Legal, and Organizational Restructuring Costs, see page 12. (2) Transaction, Legal, and Organizational Restructuring Costs includes legal expenses for certain putative class action litigation, net of estimated probable insurance recoveries, of $7.0 million for the fourth quarter and full year 2024, transaction costs for stockholder relations advisory matters of $1.6 million, $5.1 million, and $1.3 million for the first, second, and third quarters of 2025, respectively, and organizational restructuring costs of $5.2 million, $3.6 million, and $0.5 million for the second, third, and fourth quarters of 2025, respectively. (3) Excludes changes in prepaid insurance premiums financed with notes payable and lessor capital expenditure reimbursements under operating leases. (4) Primarily consists of state income tax (provision) benefit.
5 (1) All Other primarily includes communities operated by the Company pursuant to management agreements. (2) Resident fee revenue excluded from definitions of RevPAR and RevPOR is $1.7 million and $5.4 million, for the fourth quarter of 2025 and the full year 2025, respectively. (3) Excludes non-cash stock-based compensation expense and Transaction, Legal, and Organizational Restructuring Costs, see page 12. (4) Excludes changes in prepaid insurance premiums financed with notes payable and lessor capital expenditure reimbursements under operating leases. (5) Amounts are presented net of lessor reimbursements of $12.5 million and $32.6 million, for the fourth quarter of 2025 and the full year 2025, respectively. 4Q25 Full Year 2025 ($ in 000s) Total Senior Housing Owned Portfolio Senior Housing Leased Portfolio Corporate All Other (1) Total Senior Housing Owned Portfolio Senior Housing Leased Portfolio Corporate All Other (1) Resident fees (2) $ 714,504 $ 506,615 $ 207,889 $ — $ — $ 3,042,712 $ 2,022,598 $ 1,020,114 $ — $ — Management fees 2,912 — — — 2,912 10,853 — — — 10,853 Facility operating expense (529,727) (380,076) (149,651) — — (2,216,016) (1,499,704) (716,312) — — Combined Segment Operating Income 187,689 126,539 58,238 — 2,912 837,549 522,894 303,802 — 10,853 Combined segment operating margin 26.2 % 25.0 % 28.0 % — 100.0 % 27.4 % 25.9 % 29.8 % — 100.0 % General and administrative expense (3) (38,422) (25,372) (10,411) — (2,639) (165,118) (102,522) (51,737) — (10,859) Cash facility operating lease payments (43,708) — (43,373) (335) — (214,612) — (213,904) (708) — Adjusted EBITDA 105,559 101,167 4,454 (335) 273 457,819 420,372 38,161 (708) (6) Transaction, Legal, and Organizational Restructuring Costs (770) — — (770) — (18,086) — — (18,086) — Interest expense, net (56,032) (57,144) (1,472) 2,584 — (225,955) (231,421) (5,836) 11,302 — Payment of financing lease obligations (305) — (87) (218) — (1,195) — (321) (874) — Changes in working capital (4) (29,137) — — (29,137) — (21,525) — — (21,525) — Non-Development Capital Expenditures, net (5) (42,318) (36,220) 1,534 (7,632) — (170,700) (125,099) (19,236) (26,365) — Property and casualty insurance proceeds 184 — — 184 — 3,875 — — 3,875 — Other 160 — — 160 — (1,410) — — (1,410) — Adjusted Free Cash Flow $ (22,659) $ 7,803 $ 4,429 $ (35,164) $ 273 $ 22,823 $ 63,852 $ 12,768 $ (53,791) $ (6) Adjusted EBITDA and Adjusted Free Cash Flow Distribution
6 2024 2025 4Q25 vs 4Q24 Full Year 25 vs 24 ($ in 000s, except RevPAR and RevPOR) 1Q 2Q 3Q 4Q Full Year 1Q 2Q 3Q 4Q Full Year B(W) B(W) Total Senior Housing and All Other Revenue (1) $ 746,859 $ 742,325 $ 746,405 $ 746,982 $ 2,982,571 $ 780,074 $ 778,237 $ 777,838 $ 717,416 $ 3,053,565 (4.0) % 2.4 % Combined Segment Operating Income $ 204,309 $ 204,818 $ 198,123 $ 192,060 $ 799,310 $ 223,087 $ 215,920 $ 210,853 $ 187,689 $ 837,549 (2.3) % 4.8 % Combined segment operating margin 27.4 % 27.6 % 26.5 % 25.7 % 26.8 % 28.6 % 27.7 % 27.1 % 26.2 % 27.4 % 50 bps 60 bps Senior Housing Segments (see page 7) Revenue $ 744,241 $ 739,709 $ 743,729 $ 744,371 $ 2,972,050 $ 777,454 $ 775,614 $ 775,140 $ 714,504 $ 3,042,712 (4.0) % 2.4 % Senior Housing Operating Income $ 201,691 $ 202,202 $ 195,447 $ 189,449 $ 788,789 $ 220,467 $ 213,297 $ 208,155 $ 184,777 $ 826,696 (2.5) % 4.8 % Operating margin 27.1 % 27.3 % 26.3 % 25.5 % 26.5 % 28.4 % 27.5 % 26.9 % 25.9 % 27.2 % 40 bps 70 bps Number of communities (period end) 622 619 619 619 619 619 617 593 548 548 (11.5) % (11.5) % Total Average Units 51,039 50,927 50,836 50,839 50,910 50,840 50,812 50,012 45,526 49,297 (10.5) % (3.2) % RevPAR $ 4,854 $ 4,835 $ 4,869 $ 4,873 $ 4,858 $ 5,090 $ 5,080 $ 5,158 $ 5,219 $ 5,134 7.1 % 5.7 % Weighted average occupancy 77.9 % 78.1 % 78.9 % 79.4 % 78.6 % 79.3 % 80.1 % 81.8 % 82.5 % 80.9 % 310 bps 230 bps RevPOR $ 6,228 $ 6,193 $ 6,171 $ 6,136 $ 6,182 $ 6,416 $ 6,343 $ 6,307 $ 6,324 $ 6,347 3.1 % 2.7 % All Other All Other Segment Operating Income (comprised solely of management fees) $ 2,618 $ 2,616 $ 2,676 $ 2,611 $ 10,521 $ 2,620 $ 2,623 $ 2,698 $ 2,912 $ 10,853 11.5 % 3.2 % Resident fee revenue under management (2) $ 55,760 $ 55,524 $ 54,646 $ 52,447 $ 218,377 $ 53,560 $ 53,264 $ 54,635 $ 52,701 $ 214,160 0.5 % (1.9) % Segment Overview (1) Excludes reimbursed costs on behalf of managed communities. (2) Not included in consolidated reported amounts.
7 2024 2025 4Q25 vs 4Q24 Full Year 25 vs 24 ($ in 000s, except RevPAR and RevPOR) 1Q 2Q 3Q 4Q Full Year 1Q 2Q 3Q 4Q Full Year B(W) B(W) Independent Living Revenue $ 148,948 $ 149,542 $ 150,380 $ 150,052 $ 598,922 $ 157,117 $ 158,135 $ 156,996 $ 121,565 $ 593,813 (19.0) % (0.9) % Segment Operating Income $ 48,643 $ 50,334 $ 48,747 $ 47,358 $ 195,082 $ 54,232 $ 53,598 $ 51,503 $ 38,213 $ 197,546 (19.3) % 1.3 % Segment operating margin 32.7 % 33.7 % 32.4 % 31.6 % 32.6 % 34.5 % 33.9 % 32.8 % 31.4 % 33.3 % (20) bps 70 bps Number of communities (period end) 68 68 68 68 68 68 68 66 53 53 (22.1) % (22.1) % Total Average Units 12,564 12,573 12,579 12,581 12,574 12,582 12,584 12,337 9,754 11,814 (22.5) % (6.0) % RevPAR $ 3,952 $ 3,965 $ 3,985 $ 3,976 $ 3,969 $ 4,162 $ 4,189 $ 4,242 $ 4,154 $ 4,189 4.5 % 5.5 % Weighted average occupancy 79.6 % 79.9 % 80.8 % 81.4 % 80.4 % 81.2 % 82.0 % 83.8 % 84.5 % 82.8 % 310 bps 240 bps RevPOR $ 4,963 $ 4,959 $ 4,930 $ 4,886 $ 4,934 $ 5,127 $ 5,109 $ 5,063 $ 4,917 $ 5,061 0.6 % 2.6 % Assisted Living and Memory Care Revenue $ 510,872 $ 507,191 $ 510,084 $ 510,513 $ 2,038,660 $ 533,379 $ 531,318 $ 531,941 $ 506,665 $ 2,103,303 (0.8) % 3.2 % Segment Operating Income $ 137,458 $ 136,155 $ 131,768 $ 127,922 $ 533,303 $ 149,553 $ 142,707 $ 140,685 $ 130,465 $ 563,410 2.0 % 5.6 % Segment operating margin 26.9 % 26.8 % 25.8 % 25.1 % 26.2 % 28.0 % 26.9 % 26.4 % 25.7 % 26.8 % 60 bps 60 bps Number of communities (period end) 537 534 534 534 534 534 532 510 480 480 (10.1) % (10.1) % Total Average Units 33,744 33,622 33,523 33,524 33,603 33,524 33,494 32,941 31,043 32,750 (7.4) % (2.5) % RevPAR $ 5,036 $ 5,018 $ 5,060 $ 5,065 $ 5,045 $ 5,292 $ 5,276 $ 5,370 $ 5,422 $ 5,338 7.0 % 5.8 % Weighted average occupancy 77.5 % 77.6 % 78.5 % 79.0 % 78.2 % 78.7 % 79.6 % 81.4 % 82.4 % 80.5 % 340 bps 230 bps RevPOR $ 6,494 $ 6,462 $ 6,448 $ 6,413 $ 6,454 $ 6,720 $ 6,627 $ 6,595 $ 6,583 $ 6,632 2.7 % 2.8 % CCRCs Revenue $ 84,421 $ 82,976 $ 83,265 $ 83,806 $ 334,468 $ 86,958 $ 86,161 $ 86,203 $ 86,274 $ 345,596 2.9 % 3.3 % Segment Operating Income $ 15,590 $ 15,713 $ 14,932 $ 14,169 $ 60,404 $ 16,682 $ 16,992 $ 15,967 $ 16,099 $ 65,740 13.6 % 8.8 % Segment operating margin 18.5 % 18.9 % 17.9 % 16.9 % 18.1 % 19.2 % 19.7 % 18.5 % 18.7 % 19.0 % 180 bps 90 bps Number of communities (period end) 17 17 17 17 17 17 17 17 15 15 (11.8) % (11.8) % Total Average Units 4,731 4,732 4,734 4,734 4,733 4,734 4,734 4,734 4,729 4,733 (0.1) % — % RevPAR $ 5,948 $ 5,845 $ 5,863 $ 5,901 $ 5,889 $ 6,123 $ 6,067 $ 6,070 $ 6,081 $ 6,085 3.1 % 3.3 % Weighted average occupancy 76.1 % 76.1 % 76.7 % 77.4 % 76.6 % 78.5 % 78.5 % 79.2 % 79.6 % 78.9 % 220 bps 230 bps RevPOR $ 7,815 $ 7,685 $ 7,644 $ 7,622 $ 7,691 $ 7,798 $ 7,729 $ 7,669 $ 7,644 $ 7,709 0.3 % 0.2 % Senior Housing Segments
8 2024 2025 4Q25 vs 4Q24 Full Year 25 vs 24 ($ in 000s, except RevPAR and RevPOR) 1Q 2Q 3Q 4Q Full Year 1Q 2Q 3Q 4Q Full Year B(W) B(W) Revenue $ 625,150 $ 622,238 $ 625,415 $ 626,447 $ 2,499,250 $ 656,047 $ 653,996 $ 659,060 $ 657,527 $ 2,626,630 5.0 % 5.1 % Community Labor Expense (285,814) (284,978) (289,618) (295,167) (1,155,577) (293,993) (301,492) (306,683) (311,420) (1,213,588) (5.5) % (5.0) % % of revenue 45.7 % 45.8 % 46.3 % 47.1 % 46.2 % 44.8 % 46.1 % 46.5 % 47.4 % 46.2 % (30) bps 0 bps Other facility operating expense (155,079) (154,117) (158,419) (156,518) (624,133) (161,361) (160,057) (164,074) (164,371) (649,863) (5.0) % (4.1) % % of revenue 24.8 % 24.8 % 25.3 % 25.0 % 25.0 % 24.6 % 24.5 % 24.9 % 25.0 % 24.7 % 0 bps 30 bps Facility operating expense (2) (440,893) (439,095) (448,037) (451,685) (1,779,710) (455,354) (461,549) (470,757) (475,791) (1,863,451) (5.3) % (4.7) % Same Community Operating Income $ 184,257 $ 183,143 $ 177,378 $ 174,762 $ 719,540 $ 200,693 $ 192,447 $ 188,303 $ 181,736 $ 763,179 4.0 % 6.1 % Same Community operating margin 29.5 % 29.4 % 28.4 % 27.9 % 28.8 % 30.6 % 29.4 % 28.6 % 27.6 % 29.1 % (30) bps 30 bps Total Average Units 41,389 41,391 41,390 41,393 41,390 41,394 41,395 41,396 41,396 41,395 — % — % RevPAR $ 5,035 $ 5,011 $ 5,037 $ 5,045 $ 5,032 $ 5,283 $ 5,266 $ 5,307 $ 5,295 $ 5,288 5.0 % 5.1 % Weighted average occupancy 79.5 % 79.7 % 80.5 % 81.0 % 80.2 % 81.0 % 81.7 % 83.0 % 83.5 % 82.3 % 250 bps 210 bps RevPOR $ 6,331 $ 6,288 $ 6,257 $ 6,231 $ 6,276 $ 6,521 $ 6,447 $ 6,390 $ 6,341 $ 6,423 1.8 % 2.3 % Same Community Operating Income ($ in millions) $184.3 $183.1 $177.4 $174.8 $200.7 $192.4 $188.3 $181.7 1Q 2024 2Q 2024 3Q 2024 4Q 2024 1Q 2025 2Q 2025 3Q 2025 4Q 2025 Same Community RevPAR / Weighted Average Occupancy $5,035 $5,011 $5,037 $5,045 $5,283 $5,266 $5,307 $5,295 79.5% 79.7% 80.5% 81.0% 81.0% 81.7% 83.0% 83.5% RevPAR Weighted Average Occupancy 1Q 2024 2Q 2024 3Q 2024 4Q 2024 1Q 2025 2Q 2025 3Q 2025 4Q 2025 Senior Housing: Same Community (1) (1) Same Community portfolio reflects 517 communities which represents 94.3% of the Company's total consolidated communities. The same community portfolio excludes 31 communities, including 29 communities (2,364 units) that the Company plans to sell. (2) Excludes natural disaster expense, consisting primarily of remediation of storm damage, net of related insurance recoveries, of $6.1 million and $1.1 million for the full year 2024 and 2025, respectively. (2)
9 2024 2025 4Q25 vs 4Q24 Full Year 25 vs 24 ($ in 000s, except RevPAR and RevPOR) 1Q 2Q 3Q 4Q Full Year 1Q 2Q 3Q 4Q Full Year B(W) B(W) Independent Living Revenue $ 106,045 $ 105,928 $ 106,283 $ 105,598 $ 423,854 $ 110,644 $ 111,381 $ 112,163 $ 112,184 $ 446,372 6.2 % 5.3 % Community Labor Expense (39,259) (39,019) (39,606) (40,221) (158,105) (40,116) (41,588) (42,243) (42,961) (166,908) (6.8) % (5.6) % Other facility operating expense (30,518) (30,141) (31,217) (30,469) (122,345) (31,514) (31,452) (32,368) (32,499) (127,833) (6.7) % (4.5) % Facility operating expense (69,777) (69,160) (70,823) (70,690) (280,450) (71,630) (73,040) (74,611) (75,460) (294,741) (6.7) % (5.1) % Same Community Operating Income $ 36,268 $ 36,768 $ 35,460 $ 34,908 $ 143,404 $ 39,014 $ 38,341 $ 37,552 $ 36,724 $ 151,631 5.2 % 5.7 % Same Community operating margin 34.2 % 34.7 % 33.4 % 33.1 % 33.8 % 35.3 % 34.4 % 33.5 % 32.7 % 34.0 % (40) bps 20 bps Total Average Units 8,936 8,937 8,937 8,939 8,937 8,940 8,940 8,940 8,940 8,940 — % — % RevPAR $ 3,956 $ 3,951 $ 3,964 $ 3,938 $ 3,952 $ 4,125 $ 4,153 $ 4,182 $ 4,183 $ 4,161 6.2 % 5.3 % Weighted average occupancy 81.9 % 82.1 % 82.8 % 82.9 % 82.4 % 82.8 % 83.5 % 84.8 % 85.1 % 84.1 % 220 bps 170 bps RevPOR $ 4,831 $ 4,815 $ 4,785 $ 4,751 $ 4,795 $ 4,984 $ 4,972 $ 4,930 $ 4,915 $ 4,950 3.5 % 3.2 % Assisted Living and Memory Care Revenue $ 453,081 $ 450,688 $ 454,604 $ 455,366 $ 1,813,739 $ 476,327 $ 474,337 $ 479,209 $ 477,161 $ 1,907,034 4.8 % 5.1 % Community Labor Expense (211,870) (211,629) (215,546) (220,234) (859,279) (218,658) (224,657) (228,797) (233,096) (905,208) (5.8) % (5.3) % Other facility operating expense (107,453) (107,503) (110,362) (108,577) (433,895) (111,673) (111,197) (114,128) (113,542) (450,540) (4.6) % (3.8) % Facility operating expense (319,323) (319,132) (325,908) (328,811) (1,293,174) (330,331) (335,854) (342,925) (346,638) (1,355,748) (5.4) % (4.8) % Same Community Operating Income $ 133,758 $ 131,556 $ 128,696 $ 126,555 $ 520,565 $ 145,996 $ 138,483 $ 136,284 $ 130,523 $ 551,286 3.1 % 5.9 % Same Community operating margin 29.5 % 29.2 % 28.3 % 27.8 % 28.7 % 30.7 % 29.2 % 28.4 % 27.4 % 28.9 % (40) bps 20 bps Total Average Units 28,766 28,766 28,764 28,765 28,765 28,765 28,766 28,767 28,767 28,766 — % — % RevPAR $ 5,250 $ 5,223 $ 5,268 $ 5,277 $ 5,254 $ 5,520 $ 5,496 $ 5,553 $ 5,529 $ 5,525 4.8 % 5.2 % Weighted average occupancy 79.1 % 79.2 % 80.1 % 80.7 % 79.8 % 80.5 % 81.3 % 82.8 % 83.3 % 82.0 % 260 bps 220 bps RevPOR $ 6,639 $ 6,591 $ 6,575 $ 6,542 $ 6,586 $ 6,853 $ 6,761 $ 6,707 $ 6,640 $ 6,738 1.5 % 2.3 % CCRCs Revenue $ 66,024 $ 65,622 $ 64,528 $ 65,483 $ 261,657 $ 69,076 $ 68,278 $ 67,688 $ 68,182 $ 273,224 4.1 % 4.4 % Community Labor Expense (34,685) (34,330) (34,466) (34,712) (138,193) (35,219) (35,247) (35,643) (35,363) (141,472) (1.9) % (2.4) % Other facility operating expense (17,108) (16,473) (16,840) (17,472) (67,893) (18,174) (17,408) (17,578) (18,330) (71,490) (4.9) % (5.3) % Facility operating expense (51,793) (50,803) (51,306) (52,184) (206,086) (53,393) (52,655) (53,221) (53,693) (212,962) (2.9) % (3.3) % Same Community Operating Income $ 14,231 $ 14,819 $ 13,222 $ 13,299 $ 55,571 $ 15,683 $ 15,623 $ 14,467 $ 14,489 $ 60,262 8.9 % 8.4 % Same Community operating margin 21.6 % 22.6 % 20.5 % 20.3 % 21.2 % 22.7 % 22.9 % 21.4 % 21.3 % 22.1 % 100 bps 90 bps Total Average Units 3,687 3,688 3,689 3,689 3,688 3,689 3,689 3,689 3,689 3,689 — % — % RevPAR $ 5,969 $ 5,931 $ 5,831 $ 5,917 $ 5,912 $ 6,242 $ 6,170 $ 6,116 $ 6,161 $ 6,172 4.1 % 4.4 % Weighted average occupancy 77.3 % 77.5 % 77.7 % 78.7 % 77.8 % 80.3 % 80.3 % 80.7 % 81.4 % 80.7 % 270 bps 290 bps RevPOR $ 7,724 $ 7,654 $ 7,504 $ 7,522 $ 7,601 $ 7,769 $ 7,679 $ 7,578 $ 7,571 $ 7,648 0.7 % 0.6 % Senior Housing Segments: Same Community (1) (1) Same Community portfolio reflects 52 Independent Living communities, 451 Assisted Living and Memory Care communities, and 14 CCRCs.
10 2024 2025 4Q25 vs 4Q24 Full Year 25 vs 24 ($ in 000s, except RevPAR and RevPOR) 1Q 2Q 3Q 4Q Full Year 1Q 2Q 3Q 4Q Full Year B(W) B(W) Revenue $ 440,231 $ 435,741 $ 436,238 $ 435,824 $ 1,748,034 $ 503,870 $ 503,611 $ 508,502 $ 506,615 $ 2,022,598 16.2 % 15.7 % Facility operating expense (328,545) (323,358) (329,550) (334,148) (1,315,601) (368,894) (371,718) (379,016) (380,076) (1,499,704) (13.7) % (14.0) % Owned Portfolio Operating Income $ 111,686 $ 112,383 $ 106,688 $ 101,676 $ 432,433 $ 134,976 $ 131,893 $ 129,486 $ 126,539 $ 522,894 24.5 % 20.9 % Owned Portfolio operating margin 25.4 % 25.8 % 24.5 % 23.3 % 24.7 % 26.8 % 26.2 % 25.5 % 25.0 % 25.9 % 170 bps 120 bps Additional Information Interest expense: debt $ (53,456) $ (53,778) $ (54,171) $ (54,120) $ (215,525) $ (54,659) $ (57,648) $ (58,089) $ (57,144) $ (227,540) (5.6) % (5.6) % Community level capital expenditures, net (see page 13) $ (25,309) $ (25,404) $ (25,296) $ (25,656) $ (101,665) $ (26,803) $ (32,810) $ (29,266) $ (36,220) $ (125,099) (41.2) % (23.1) % Number of communities (period end) 345 342 342 353 (2) 353 (2) 383 382 372 370 370 4.8 % 4.8 % Total Average Units 31,195 31,075 30,977 30,978 31,056 33,768 33,764 33,635 33,440 33,651 7.9 % 8.4 % RevPAR $ 4,693 $ 4,663 $ 4,682 $ 4,677 $ 4,679 $ 4,962 $ 4,960 $ 5,027 $ 5,033 $ 4,995 7.6 % 6.8 % Weighted average occupancy 77.3 % 77.4 % 78.1 % 78.6 % 77.8 % 78.9 % 80.0 % 81.7 % 82.3 % 80.7 % 370 bps 290 bps RevPOR $ 6,074 $ 6,025 $ 5,998 $ 5,953 $ 6,013 $ 6,288 $ 6,202 $ 6,156 $ 6,115 $ 6,189 2.7 % 2.9 % Senior Housing Owned Portfolio(1) Interest Coverage for the twelve months ended December 31, 2025 1.8x Net Debt as of December 31, 2025 (see page 15) $4,007,153 (1) In December 2024 and February 2025, the Company acquired 11 and 30 previously leased communities, respectively. The results of operations of the 41 previously leased communities are included within the Senior Housing Owned Portfolio beginning with the full first quarter of 2025. Prior quarters have not been recast. (2) The number of owned communities (period end) for the fourth quarter of 2024 and the full year 2024 includes the 11 communities acquired in December 2024.
11 2024(2) 2025 4Q25 vs 4Q24 Full Year 25 vs 24 ($ in 000s, except RevPAR and RevPOR) 1Q 2Q 3Q 4Q Full Year 1Q 2Q 3Q 4Q Full Year B(W) B(W) Revenue $ 304,010 $ 303,968 $ 307,491 $ 308,547 $ 1,224,016 $ 273,584 $ 272,003 $ 266,638 $ 207,889 $ 1,020,114 (32.6) % (16.7) % Facility operating expense (214,005) (214,149) (218,732) (220,774) (867,660) (188,093) (190,599) (187,969) (149,651) (716,312) 32.2 % 17.4 % Leased Portfolio Operating Income $ 90,005 $ 89,819 $ 88,759 $ 87,773 $ 356,356 $ 85,491 $ 81,404 $ 78,669 $ 58,238 $ 303,802 (33.6) % (14.7) % Leased Portfolio operating margin 29.6 % 29.5 % 28.9 % 28.4 % 29.1 % 31.2 % 29.9 % 29.5 % 28.0 % 29.8 % (40) bps 70 bps Additional Information Cash facility lease payments on leased portfolio (see page 14) $ (68,088) $ (68,369) $ (68,609) $ (68,044) $ (273,110) $ (58,244) $ (58,987) $ (57,898) $ (44,932) $ (220,061) 34.0 % 19.4 % Community level capital expenditures, net (see page 13) $ (15,065) $ (20,131) $ (9,510) $ (4,568) $ (49,274) $ (9,783) $ (6,822) $ (4,165) $ 1,534 $ (19,236) NM 61.0 % Number of communities (period end) 277 277 277 266 (3) 266 (3) 236 235 221 178 178 (33.1) % (33.1) % Total Average Units 19,844 19,852 19,859 19,861 19,854 17,072 17,048 16,377 12,086 15,646 (39.1) % (21.2) % RevPAR $ 5,107 $ 5,104 $ 5,161 $ 5,178 $ 5,138 $ 5,342 $ 5,318 $ 5,427 $ 5,734 $ 5,433 10.7 % 5.7 % Weighted average occupancy 79.0 % 79.1 % 80.2 % 80.8 % 79.8 % 80.2 % 80.3 % 82.0 % 83.1 % 81.3 % 230 bps 150 bps RevPOR $ 6,465 $ 6,450 $ 6,435 $ 6,413 $ 6,440 $ 6,664 $ 6,621 $ 6,615 $ 6,896 $ 6,686 7.5 % 3.8 % Lease Coverage for the twelve months ended December 31, 2025 1.12x Operating and financing lease obligations as of December 31, 2025 (see page 19) $ 1,193,028 Facility Lease Maturity Information (Leased Portfolio as of December 31, 2025) Initial Lease Maturities Community Count Total Units Lease Payments (4) 2026 2 152 $ 1,679 2027 — — $ — 2028 1 116 $ 2,554 2029 17 735 $ 10,080 2030 — — $ — Thereafter 158 9,605 $ 150,682 Total 178 10,608 $ 164,995 Senior Housing Leased Portfolio(1) (1) During the six months ended December 31, 2025, the Company completed terminations of leases on 57 communities (6,294 units), which completed the terminations of leases on 55 communities provided in the December 2024 agreement with Ventas, Inc. (2) In December 2024 and February 2025, the Company acquired 11 and 30 previously leased communities, respectively. The results of operations of the 41 previously leased communities are excluded from the Senior Housing Leased Portfolio beginning with the full first quarter of 2025. Prior quarters have not been recast. (3) The number of leased communities (period end) for the fourth quarter of 2024 and the full year 2024 excludes the 11 communities acquired in December 2024. (4) Cash facility lease payments for the twelve months ended December 31, 2025 for the 178 remaining leased communities. For the twelve months ending December 31, 2026, the Company will be required to make approximately $184 million of cash lease payments in connection with its existing community operating and financing leases, including the impact of the adjusted annual minimum rent beginning on January 1, 2026 for the remaining 65 communities leased from Ventas.
12 (1) G&A allocations are calculated based on the proportional amount of resident fee revenue (consolidated and under management) attributable to the segment or portfolio. G&A allocations presented herein exclude non-cash stock-based compensation expense and Transaction, Legal, and Organizational Restructuring Costs. (2) Not included in consolidated reported amounts. Consolidated, unless otherwise noted 2024 2025 4Q25 vs 4Q24 Full Year 25 vs 24 ($ in 000s) 1Q 2Q 3Q 4Q Full Year 1Q 2Q 3Q 4Q Full Year B(W) B(W) G&A expense allocations (1) Senior Housing Owned Portfolio allocation $ 23,172 $ 23,318 $ 22,654 $ 20,573 $ 89,717 $ 25,599 $ 25,136 $ 26,415 $ 25,372 $ 102,522 (23.3) % (14.3) % Senior Housing Leased Portfolio allocation 16,001 16,266 15,968 14,565 62,800 13,899 13,576 13,851 10,411 51,737 28.5 % 17.6 % All Other allocation 2,935 2,971 2,838 2,475 11,219 2,723 2,659 2,838 2,639 10,859 (6.6) % 3.2 % Subtotal G&A expense allocations 42,108 42,555 41,460 37,613 163,736 42,221 41,371 43,104 38,422 165,118 (2.2) % (0.8) % Non-cash stock-based compensation expense 3,273 3,975 3,403 3,533 14,184 3,979 3,089 2,633 2,236 11,937 36.7 % 15.8 % Transaction, Legal, and Organizational Restructuring Costs (see page 4) 351 134 66 7,379 7,930 1,674 10,513 5,129 770 18,086 89.6% (128.1%) General and administrative expense $ 45,732 $ 46,664 $ 44,929 $ 48,525 $ 185,850 $ 47,874 $ 54,973 $ 50,866 $ 41,428 $ 195,141 14.6 % (5.0) % 2024 2025 4Q25 vs 4Q24 Full Year 25 vs 24 1Q 2Q 3Q 4Q Full Year 1Q 2Q 3Q 4Q Full Year B(W) B(W) Resident fee revenue $ 744,241 $ 739,709 $ 743,729 $ 744,371 $ 2,972,050 $ 777,454 $ 775,614 $ 775,140 $ 714,504 $ 3,042,712 (4.0) % 2.4 % Resident fee revenue under management (2) 55,760 55,524 54,646 52,447 218,377 53,560 53,264 54,635 52,701 214,160 0.5 % (1.9) % Total (consolidated and under management) $ 800,001 $ 795,233 $ 798,375 $ 796,818 $ 3,190,427 $ 831,014 $ 828,878 $ 829,775 $ 767,205 $ 3,256,872 (3.7) % 2.1 % G&A Expense as a Percentage of Resident Fee Revenue (Consolidated and Under Management) G&A expense (excluding non-cash stock-based compensation expense and Transaction, Legal, and Organizational Restructuring Costs) 5.3% 5.4% 5.2% 4.7% 5.1% 5.1% 5.0% 5.2% 5.0% 5.1% (30) bps 0 bps G&A expense (including non-cash stock-based compensation expense and Transaction, Legal, and Organizational Restructuring Costs) 5.7% 5.9% 5.6% 6.1% 5.8% 5.8% 6.6% 6.1% 5.4% 6.0% 70 bps (20) bps G&A Expense
13 ($ in 000s, except for community level capital expenditures, per average unit) 2024 2025 4Q25 vs 4Q24 Full Year 25 vs 24 1Q 2Q 3Q 4Q Full Year 1Q 2Q 3Q 4Q Full Year B(W) B(W) Community level capital expenditures, including allocations (1) Senior Housing Owned Portfolio $ 25,309 $ 25,404 $ 25,296 $ 25,656 $ 101,665 $ 26,803 $ 32,810 $ 29,266 $ 36,220 $ 125,099 (41.2) % (23.1) % Senior Housing Leased Portfolio 15,065 20,131 9,510 4,568 49,274 9,783 6,822 4,165 (1,534) 19,236 NM 61.0 % Community level capital expenditures, net (A) 40,374 45,535 34,806 30,224 150,939 36,586 39,632 33,431 34,686 144,335 (14.8) % 4.4 % Corporate capital expenditures (2) 10,217 6,790 6,912 11,897 35,816 4,541 9,182 5,010 7,632 26,365 35.8 % 26.4 % Non-Development Capital Expenditures, net (1) 50,591 52,325 41,718 42,121 186,755 41,127 48,814 38,441 42,318 170,700 (0.5) % 8.6 % Development Capital Expenditures, net 218 215 191 13 637 9 3 1 — 13 100.0 % 98.0 % Total capital expenditures, net (1) 50,809 52,540 41,909 42,134 187,392 41,136 48,817 38,442 42,318 170,713 (0.4) % 8.9 % Property and casualty insurance proceeds (2,642) (62) (3,593) (2,251) (8,548) (1,415) (2,072) (204) (184) (3,875) (91.8) % (54.7) % Total capital expenditures, net of property and casualty insurance proceeds received (1) $ 48,167 $ 52,478 $ 38,316 $ 39,883 $ 178,844 $ 39,721 $ 46,745 $ 38,238 $ 42,134 $ 166,838 (5.6) % 6.7 % Capital Expenditures Reconciliation to Statements of Cash Flow Total capital expenditures, net (1) $ 50,809 $ 52,540 $ 41,909 $ 42,134 $ 187,392 $ 41,136 $ 48,817 $ 38,442 $ 42,318 $ 170,713 Lessor reimbursements: non-development capital expenditures (C) 249 1,051 6,714 8,944 16,958 2,013 9,324 8,741 12,497 32,575 Change in related payables (6,659) (2,017) 6,342 (766) (3,100) (1,332) (3,675) (5,594) 8,838 (1,763) Total cash paid for capital expenditures $ 44,399 $ 51,574 $ 54,965 $ 50,312 $ 201,250 $ 41,817 $ 54,466 $ 41,589 $ 63,653 $ 201,525 (26.5) % (0.1) % Senior Housing Total Average Units (B) 51,039 50,927 50,836 50,839 50,910 50,840 50,812 50,012 45,526 49,297 (10.5) % (3.2) % Community level capital expenditures, net, per average unit (A/B) $ 791 $ 894 $ 685 $ 595 $ 2,965 $ 720 $ 780 $ 668 $ 762 $ 2,928 (28.1) % 1.2 % Community level capital expenditures, per average unit (including lessor reimbursements for non-development capital expenditures) ((A+C)/B) $ 3,298 $ 3,589 (8.8) % Capital Expenditures (1) Amounts are presented net of lessor reimbursements. (2) Includes remediation costs at communities resulting from natural disasters of $14.0 million and $0.3 million for the full year 2024 and 2025, respectively. A portion of such costs are reimbursable under the Company's property and casualty insurance policies.
14 (1) Includes cash lease payments for leases of community support centers and information technology systems and equipment. 2024 2025 4Q25 vs 4Q24 Full Year 25 vs 24 ($ in 000s) 1Q 2Q 3Q 4Q Full Year 1Q 2Q 3Q 4Q Full Year B(W) B(W) Operating Lease Obligations Facility operating lease expense $ 51,496 $ 50,964 $ 51,937 $ 46,190 $ 200,587 $ 52,874 $ 52,653 $ 51,993 $ 42,743 $ 200,263 Operating lease expense adjustment 13,089 13,483 12,489 9,732 48,793 3,853 4,846 4,685 965 14,349 Cash facility operating lease payments 64,585 64,447 64,426 55,922 249,380 56,727 57,499 56,678 43,708 214,612 21.8 % 13.9 % Financing Lease Obligations Interest expense: financing lease obligations 5,061 5,110 5,062 12,528 27,761 5,600 1,750 1,764 1,683 10,797 Payment of financing lease obligations 262 265 273 284 1,084 289 297 304 305 1,195 Cash financing lease payments 5,323 5,375 5,335 12,812 28,845 5,889 2,047 2,068 1,988 11,992 84.5 % 58.4 % Total cash facility lease payments (1) $ 69,908 $ 69,822 $ 69,761 $ 68,734 $ 278,225 $ 62,616 $ 59,546 $ 58,746 $ 45,696 $ 226,604 33.5 % 18.6 % Interest Expense Reconciliation to Income Statement Interest expense: financing lease obligations $ 5,061 $ 5,110 $ 5,062 $ 12,528 $ 27,761 $ 5,600 $ 1,750 $ 1,764 $ 1,683 $ 10,797 86.6 % 61.1 % Interest income (4,778) (4,714) (4,663) (5,007) (19,162) (3,648) (2,919) (3,020) (2,795) (12,382) (44.2) % (35.4) % Interest expense: debt 53,456 53,778 54,171 54,120 215,525 54,659 57,648 58,089 57,144 227,540 (5.6) % (5.6) % Interest expense, net 53,739 54,174 54,570 61,641 224,124 56,611 56,479 56,833 56,032 225,955 9.1 % (0.8) % Amortization of deferred financing costs 2,257 2,334 2,337 2,795 9,723 3,630 3,712 3,747 3,686 14,775 Change in fair value of derivatives (3,087) 345 4,746 (2,438) (434) 1,142 (29) (26) 93 1,180 Interest income 4,778 4,714 4,663 5,007 19,162 3,648 2,919 3,020 2,795 12,382 Interest expense per income statement $ 57,687 $ 61,567 $ 66,316 $ 67,005 $ 252,575 $ 65,031 $ 63,081 $ 63,574 $ 62,606 $ 254,292 6.6 % (0.7) % Cash Facility Lease Payments
15 (1) Amount excludes $45.8 million in deferred financing costs, net. (2) Reflects rates as of December 31, 2025. (3) Fixed rate maturities are comprised of $23.3 million of 2.00% convertible senior notes ("2026 Notes"). (4) Fixed rate maturities include $369.4 million of 3.50% convertible senior notes ("2029 Notes"). (5) Excludes convertible senior notes. (6) Includes the carrying amount of debt of which 89.7%, or $3.9 billion, represented non-recourse property-level mortgage financings. (7) Excludes operating lease obligations related to certain non-facility leases for which the related lease expense is included in Adjusted EBITDA. (8) Adjusted to exclude $3.9 million of cash facility lease payments for previously leased communities acquired in February 2025. Important Note Regarding Non-GAAP Financial Measures. Adjusted EBITDA, Adjusted EBITDA after cash financing lease payments, Net Debt, and Adjusted Net Debt are financial measures that are not calculated in accordance with GAAP. See "Definitions" and "Non-GAAP Financial Measures" for the definitions of such measures and other important information regarding such measures, including reconciliations to the most comparable GAAP measures. $389 $306 $350 $352 $378 12/31/2024 03/31/2025 06/30/2025 09/30/2025 12/31/2025 Total Liquidity ($ in millions) Leverage Ratio ($ in 000s) Twelve Months Ended December 31, 2025 Cash facility operating lease payments (see page 14) $ (214,612) Adjusted EBITDA 457,819 Cash financing lease payments (see page 14) (11,992) Adjusted EBITDA after cash financing lease payments (A) $ 445,827 As of December 31, 2025 Debt (net of $45.8 million in deferred financing costs) (6) $ 4,292,497 Cash and cash equivalents (279,122) Restricted cash held as collateral against existing debt (6,222) Net Debt (B) 4,007,153 Operating and financing lease obligations (see page 19) (7) 1,198,141 Adjusted Net Debt $ 5,205,294 Annualized Leverage (B/A) 9.0 x Adjusted Annualized Leverage (8) 8.9 x Debt Principal (1) ($ in millions) Fixed Rate Maturities Variable Rate Maturities Recurring Principal Payments Total Weighted Rate (2) 2026 (3) $ 23 $ — $ 48 $ 71 3.79 % 2027 561 59 49 669 4.85 % 2028 333 557 39 929 5.66 % 2029 (4) 714 78 32 824 4.31 % 2030 518 292 19 829 4.33 % Thereafter 956 24 36 1,016 5.95 % Total $ 3,105 $ 1,010 $ 223 $ 4,338 5.06 % Capital Structure Line of credit available to draw ($99 million as of December 31, 2025) Cash and cash equivalents and marketable securities ($279 million as of December 31, 2025) Fixed rate debt (5) $2,897 Variable rate debt with interest rate caps and swaps $1,048 Fixed rate convertible senior notes $393 67% 24% As of December 31, 2025 Weighted Rate Fixed rate debt (5) 4.88 % Variable rate debt 6.18 % 2026 Notes 2.00 % 2029 Notes 3.50 % Total debt 5.06 % 9%
16 Adjusted EBITDA is a non-GAAP performance measure that the Company defines as net income (loss) excluding: benefit/provision for income taxes, non-operating income/ expense items, and depreciation and amortization; and further adjusted to exclude income/expense associated with non-cash, non-operational, transactional, legal, cost reduction, or organizational restructuring items that management does not consider as part of the Company’s underlying core operating performance and that management believes impact the comparability of performance between periods. For the periods presented herein, such other items include non-cash impairment charges, operating lease expense adjustment, non-cash stock-based compensation expense, gain/loss on sale of communities, gain/loss on facility operating lease termination, and Transaction, Legal, and Organizational Restructuring Costs. Adjusted Free Cash Flow is a non-GAAP liquidity measure that the Company defines as net cash provided by (used in) operating activities before: distributions from unconsolidated ventures from cumulative share of net earnings, changes in prepaid insurance premiums financed with notes payable, changes in operating lease assets and liabilities for lease termination, cash paid/received for gain/loss on facility operating lease termination, and lessor capital expenditure reimbursements under operating leases; plus: property and casualty insurance proceeds; less: Non- Development Capital Expenditures and payment of financing lease obligations. Adjusted Net Debt is a non-GAAP financial measure that the Company defines as Net Debt, plus operating and financing lease obligations. Operating and financing lease obligations exclude operating lease obligations related to certain non-facility leases for which the related lease expense is included in Adjusted EBITDA. Combined Segment Operating Income is defined by the Company as resident fee and management fee revenue of the Company, less facility operating expense. Combined Segment Operating Income does not include general and administrative expense or depreciation and amortization. Community Labor Expense is a component of facility operating expense that includes regular and overtime salaries and wages, bonuses, paid-time-off and holiday wages, payroll taxes, contract labor, employee benefits, and workers' compensation. Development Capital Expenditures means capital expenditures for community expansions, major community redevelopment and repositioning projects, and the development of new communities. Amounts of Development Capital Expenditures are presented net of lessor reimbursements. Interest Coverage is calculated based on the trailing-twelve months Owned Portfolio Operating Income adjusted for an implied 5% management fee and capital expenditures at $350/unit, divided by the trailing-twelve months debt interest expense. Lease Coverage is calculated based on the trailing-twelve months Leased Portfolio Operating Income, excluding resident fee revenue and facility operating expense of previously leased communities acquired during such period, adjusted for an implied 5% management fee and capital expenditures at $350/unit, divided by the trailing- twelve months cash facility lease payments for both operating leases and financing leases, excluding cash lease payments for leases of previously leased communities acquired during such period, community support centers, information technology systems and equipment, vehicles, and other equipment. Leased Portfolio Operating Income is defined by the Company as resident fee revenue less facility operating expense for the Company’s Senior Housing Leased Portfolio. Leased Portfolio Operating Income does not include general and administrative expense or depreciation and amortization. Net Debt is a non-GAAP financial measure that the Company defines as the total of its debt and the outstanding balance on the line of credit, less unrestricted cash, marketable securities, and cash held as collateral against existing debt. NM means not meaningful. Non-Development Capital Expenditures is comprised of corporate and community- level capital expenditures, including those related to maintenance, renovations, upgrades, and other major building infrastructure projects for the Company’s communities. Non-Development Capital Expenditures does not include capital expenditures for community expansions, major community redevelopment and repositioning projects, and the development of new communities (i.e. Development Capital Expenditures). Amounts of Non-Development Capital Expenditures are presented net of lessor reimbursements. Owned Portfolio Operating Income is defined by the Company as resident fee revenue less facility operating expense for the Company’s Senior Housing Owned Portfolio. Owned Portfolio Operating Income does not include general and administrative expense or depreciation and amortization. Definitions
17 RevPAR, or average monthly senior housing resident fee revenue per available unit, is defined by the Company as resident fee revenue for the corresponding portfolio for the period (excluding revenue for private duty services provided to seniors living outside of the Company's communities), divided by the weighted average number of available units in the corresponding portfolio for the period, divided by the number of months in the period. RevPOR, or average monthly senior housing resident fee revenue per occupied unit, is defined by the Company as resident fee revenue for the corresponding portfolio for the period (excluding revenue for private duty services provided to seniors living outside of the Company's communities), divided by the weighted average number of occupied units in the corresponding portfolio for the period, divided by the number of months in the period. Same Community information reflects operating results and data of a consistent population of communities by excluding the impact of changes in the composition of the Company's portfolio of communities. The operating results exclude natural disaster expense and related insurance recoveries. The Company defines its same community portfolio as communities consolidated and operational for the full period in both comparison years. Consolidated communities excluded from the same community portfolio include communities acquired or disposed of since the beginning of the prior year, communities classified as assets held for sale, certain communities planned for disposition including through asset sales or lease terminations, certain communities that have undergone or are undergoing expansion, redevelopment, and repositioning projects, and certain communities that have experienced a casualty event that significantly impacts their operations. Same Community Operating Income is defined by the Company as resident fee revenue less facility operating expense (excluding natural disaster expense and related insurance recoveries) for the Company's Same Community portfolio. Same Community Operating Income does not include general and administrative expense or depreciation and amortization. Segment Operating Income is defined by the Company as segment revenue less segment facility operating expense. Segment Operating Income does not include general and administrative expense or depreciation and amortization. All Other Segment Operating Income consists primarily of the previously reported Management Services segment and excludes revenue for reimbursements for which the Company is the primary obligor of costs incurred on behalf of managed communities, and there is no facility operating expense associated with the All Other category. See the Segment Information note to the Company’s consolidated financial statements for more information regarding the Company’s segments. Senior Housing Leased Portfolio represents Brookdale leased communities and does not include owned or managed communities. Senior Housing Operating Income is defined by the Company as segment revenue less segment facility operating expense for the Company’s Independent Living, Assisted Living and Memory Care, and CCRCs segments on an aggregate basis. Senior Housing Operating Income does not include general and administrative expense or depreciation and amortization. Senior Housing Owned Portfolio represents Brookdale owned communities and does not include leased or managed communities. Total Average Units represents the average number of units operated during the period. Transaction, Legal, and Organizational Restructuring Costs are general and administrative expenses. Transaction costs include those directly related to acquisition, disposition, financing, and leasing activity and stockholder relations advisory matters, and are primarily comprised of legal, finance, consulting, professional fees, and other third-party costs. Legal costs include charges associated with putative class action litigation. Organizational restructuring costs include those related to the Company’s efforts to reduce general and administrative expense and its senior leadership changes, including severance. Definitions
18 2024 2025 ($ in 000s) 1Q 2Q 3Q 4Q Full Year 1Q 2Q 3Q 4Q Full Year Net income (loss) $ (29,581) $ (37,742) $ (50,734) $ (83,937) $ (201,994) $ (64,993) $ (43,039) $ (114,738) $ (39,976) $ (262,746) Provision (benefit) for income taxes (40) 449 677 3,560 4,646 (676) (271) 167 (1,171) (1,951) Loss (gain) on debt modification and extinguishment, net — — 2,267 18,495 20,762 35,220 115 326 4,426 40,087 Non-operating loss (gain) on sale of assets, net (704) (199) (20) — (923) — — — — — Other non-operating (income) loss (3,338) (199) (3,584) (2,255) (9,376) (1,358) (2,060) (144) (240) (3,802) Interest expense 57,687 61,567 66,316 67,005 252,575 65,031 63,081 63,574 62,606 254,292 Interest income (4,778) (4,714) (4,663) (5,007) (19,162) (3,648) (2,919) (3,020) (2,795) (12,382) Income (loss) from operations 19,246 19,162 10,259 (2,139) 46,528 29,576 14,907 (53,835) 22,850 13,498 Depreciation and amortization 86,127 88,028 90,064 93,569 357,788 90,976 92,853 94,792 76,906 355,527 Asset impairment 1,708 — 934 5,915 8,557 1,787 577 62,696 6,289 71,349 Loss (gain) on sale of communities, net — — — — — — (43) (139) (2,186) (2,368) Loss (gain) on facility operating lease termination, net — — — — — — — 4,480 (341) 4,139 Operating lease expense adjustment (13,089) (13,483) (12,489) (9,732) (48,793) (3,853) (4,846) (4,685) (965) (14,349) Non-cash stock-based compensation expense 3,273 3,975 3,403 3,533 14,184 3,979 3,089 2,633 2,236 11,937 Transaction, Legal, and Organizational Restructuring Costs 351 134 66 7,379 7,930 1,674 10,513 5,129 770 18,086 Adjusted EBITDA $ 97,616 $ 97,816 $ 92,237 $ 98,525 $ 386,194 $ 124,139 $ 117,050 $ 111,071 $ 105,559 $ 457,819 Interest expense: financing lease obligations (5,061) (5,110) (5,062) (12,528) (27,761) (5,600) (1,750) (1,764) (1,683) (10,797) Payment of financing lease obligations (262) (265) (273) (284) (1,084) (289) (297) (304) (305) (1,195) Adjusted EBITDA after cash financing lease payments $ 92,293 $ 92,441 $ 86,902 $ 85,713 $ 357,349 $ 118,250 $ 115,003 $ 109,003 $ 103,571 $ 445,827 Adjusted EBITDA and Adjusted EBITDA after Cash Financing Lease Payments Reconciliations Appendix: Non-GAAP Financial Measures This Supplemental Information contains the financial measures Adjusted EBITDA, Adjusted EBITDA after cash financing lease payments, Adjusted Free Cash Flow, Net Debt, and Adjusted Net Debt (each as defined in the "Definitions" section), which are not calculated in accordance with U.S. generally accepted accounting principles ("GAAP"). Presentations of these non- GAAP financial measures are intended to aid investors in better understanding the factors and trends affecting the Company’s performance and liquidity. However, investors should not consider these non-GAAP financial measures as a substitute for financial measures determined in accordance with GAAP, including net income (loss), income (loss) from operations, net cash provided by (used in) operating activities, short-term debt, long-term debt less current portion, or current portion of long-term debt. Investors are cautioned that amounts presented in accordance with the Company’s definitions of these non-GAAP financial measures may not be comparable to similar measures disclosed by other companies because not all companies calculate non-GAAP measures in the same manner. Investors are urged to review the reconciliations set forth in this Appendix of these non-GAAP financial measures from the most comparable financial measures determined in accordance with GAAP and to review the information under "Reconciliations of Non-GAAP Financial Measures" in the Company’s earnings release dated February 18, 2026 for additional information regarding the Company’s use and the limitations of such non-GAAP financial measures.
19 Net Debt and Adjusted Net Debt Reconciliations Appendix: Non-GAAP Financial Measures (continued) ($ in 000s) As of December 31, 2025 Long-term debt (including current portion) $ 4,292,497 Cash and cash equivalents (279,122) Cash held as collateral against existing debt (6,222) Net Debt 4,007,153 Operating and financing lease obligations 1,223,625 Operating lease obligations related to certain non-facility leases for which the related lease expense is included in Adjusted EBITDA (25,484) Adjusted Net Debt $ 5,205,294 Operating and financing lease obligations $ 1,223,625 Operating lease obligations related to certain non-facility leases for which the related lease expense is included in Adjusted EBITDA (25,484) Adjusted operating and financing lease obligations 1,198,141 Operating and financing lease obligations related to community support centers and information technology leases (5,113) Operating and financing lease obligations for Leased Portfolio $ 1,193,028
20 2024 2025 ($ in 000s) 1Q 2Q 3Q 4Q Full Year 1Q 2Q 3Q 4Q Full Year Net cash provided by (used in) operating activities $ (1,146) $ 55,670 $ 66,455 $ 45,198 $ 166,177 $ 23,402 $ 83,564 $ 76,525 $ 34,539 $ 218,030 Net cash provided by (used in) investing activities (6,946) (68,457) (58,113) (144,550) (278,066) (326,755) (50,399) (34,195) (44,602) (455,951) Net cash provided by (used in) financing activities 54,090 (20,375) (38,801) 147,147 142,061 239,669 (25,759) (34,565) 21,744 201,089 Net increase (decrease) in cash, cash equivalents and restricted cash $ 45,998 $ (33,162) $ (30,459) $ 47,795 $ 30,172 $ (63,684) $ 7,406 $ 7,765 $ 11,681 $ (36,832) Net cash provided by (used in) operating activities $ (1,146) $ 55,670 $ 66,455 $ 45,198 $ 166,177 $ 23,402 $ 83,564 $ 76,525 $ 34,539 $ 218,030 Changes in prepaid insurance premiums financed with notes payable 23,319 (7,617) (7,772) (7,930) — 22,392 (7,298) (7,484) (7,610) — Changes in operating lease assets and liabilities for lessor capital expenditure reimbursements (249) (1,051) (6,432) (8,630) (16,362) (2,013) (9,319) (8,706) (12,149) (32,187) Changes in operating lease assets and liabilities for lease termination — — — — — — — — 5,000 5,000 Non-development capital expenditures, net (50,591) (52,325) (41,718) (42,121) (186,755) (41,127) (48,814) (38,441) (42,318) (170,700) Property and casualty insurance proceeds 2,642 62 3,593 2,251 8,548 1,415 2,072 204 184 3,875 Payment of financing lease obligations (262) (265) (273) (284) (1,084) (289) (297) (304) (305) (1,195) Adjusted Free Cash Flow $ (26,287) $ (5,526) $ 13,853 $ (11,516) $ (29,476) $ 3,780 $ 19,908 $ 21,794 $ (22,659) $ 22,823 Adjusted Free Cash Flow Reconciliation Appendix: Non-GAAP Financial Measures (continued) Brookdale Senior Living Inc. 105 Westwood Place Brentwood, TN 37027 (615) 221-2250 brookdale.com
FAQ
How did Brookdale Senior Living (BKD) perform financially in 2025?
Brookdale’s 2025 resident fee revenue rose 2.4% to $3,042.7 million, while it reported a net loss of $262.7 million. Adjusted EBITDA improved 18.5% to $457.8 million, reflecting stronger pricing, higher occupancy, and operational efficiencies across its senior housing portfolio.
What were Brookdale Senior Living (BKD)’s key operating metrics in 2025?
In 2025, Brookdale’s consolidated RevPAR reached $5,134, up 5.7%, and RevPOR was $6,347, up 2.7%. Weighted average occupancy improved to 80.9%, a gain of 230 basis points, indicating healthier utilization of its senior housing communities compared with 2024.
Did Brookdale Senior Living (BKD) improve its cash flow and liquidity in 2025?
Brookdale generated 2025 Adjusted Free Cash Flow of $22.8 million, a sharp improvement from $(29.5) million in 2024. Total liquidity was $377.7 million at December 31, 2025, including $279.1 million of cash and $98.6 million of secured credit facility availability.
What balance sheet actions did Brookdale Senior Living (BKD) take in late 2025?
In December 2025, Brookdale completed $596.9 million of financing transactions, refinancing all remaining $346.3 million of 2026 mortgage maturities and $190.7 million of 2027 maturities. It also ended 2025 with Net Debt of $4,007.2 million and Adjusted Net Debt of $5,205.3 million.
What is Brookdale Senior Living (BKD)’s 2026 financial guidance?
For full year 2026, Brookdale guides to consolidated RevPAR growth of 8.0%–9.0% and Adjusted EBITDA between $502 million and $516 million. Guidance reflects expected benefits from prior lease terminations, planned dispositions, and a higher annual resident rate increase versus 2025.
How is occupancy trending at Brookdale Senior Living (BKD) entering 2026?
Consolidated weighted average occupancy reached 82.5% in Q4 2025, 310 basis points above the prior-year quarter. January 2026 month-end occupancy was 83.3%, slightly below December due to typical seasonality and winter storms delaying some resident move-ins.
What asset sales is Brookdale Senior Living (BKD) planning, and what proceeds are expected?
Brookdale plans to sell 29 owned communities totaling 2,364 units during 2026, including nine classified as held for sale at December 31, 2025. The company believes these sales will generate approximately $200.0 million of proceeds, subject to marketing, conditions, and regulatory approvals.
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Brookdale Sr Living Inc
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3.94B
231.09M
Medical Care Facilities
Services-nursing & Personal Care Facilities
United States
BRENTWOOD