Brookdale Senior Living Inc.

Brookdale reported second-quarter 2026 adjusted EBITDA of $122.1 million, up 4.3% year over year. Consolidated RevPAR increased 8.2% year over year, consolidated occupancy was 82.4% (up 230 basis points), same-community occupancy was 82.9% (up 110 basis points), and same-community RevPOR increased 4.1%; consolidated RevPOR increased 5.2%. Resident fees were $708 million, down 8.7% year over year, driven partly by a 15.7% reduction in consolidated average units. Same-community operating margin was 29.5%, flat year over year, and adjusted free cash flow was $38.2 million. For full-year 2026, Brookdale reaffirmed RevPAR growth of 8% to 9% and adjusted EBITDA of $502 million to $516 million; it now expects full-year consolidated occupancy of roughly 83%, G&A of about $157 million, cash lease expense of slightly under $180 million, and adjusted free cash flow to remain significantly positive.

Nick Stengle framed the quarter as evidence that Brookdale's five-point strategy is taking hold: improving operations, optimizing the real estate portfolio, reinvesting capital, reducing leverage, and elevating quality. He emphasized that the company is now in a more offensive posture, using its stronger financial position to make targeted acquisitions and reinvest in existing communities through First Impressions projects. His tone was confident and upbeat, but he acknowledged occupancy has not improved as quickly as hoped and said further action is being taken to accelerate progress in the second half.

Dawn Kussow focused on the numbers and the path to guidance. She highlighted $122.1 million of adjusted EBITDA, $38.2 million of adjusted free cash flow, $566 million of liquidity, and annualized leverage improving to 8.4x from 8.8x last quarter. She said same-community labor expense improved 90 basis points to 45.2% of revenue, same-community operating margin was 29.5%, and G&A excluding certain items declined 6% to $38.9 million; full-year G&A remains expected at about $157 million. She also said Brookdale expects labor as a percentage of revenue to improve slightly in the third and fourth quarters and still expects to deliver $502 million to $516 million of adjusted EBITDA.

Analysts focused on the second-half acceleration, occupancy shortfall, move-in trends, expense leverage, and the strategic rationale for acquisitions. Management said the RevPAR guide was trimmed in the third quarter because occupancy is running a bit softer than expected and some disposition-related accretion was delayed into the fourth quarter, but that July occupancy and a firmer RevPOR outlook support the full-year guide. On occupancy, Nick Stengle said move-ins have actually been strong, while move-outs have been cyclical and partially out of management's control; he also said the absence of a sales leader earlier in the year created some volatility, which the new Chief Sales Officer is helping address. On acquisitions, management said the deals are targeted, below replacement cost, and designed to add density in markets where Brookdale already operates meaningfully.