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SONIDA SENIOR LIVING, INC. (SNDA)·Q2 2025 Earnings Summary

Executive Summary

  • Q2 2025 delivered strong top-line growth: Total revenues rose 33.3% year over year to $93.525M, resident revenue increased 29.7% to $81.845M, and Adjusted EBITDA grew 23.7% to $14.093M .
  • Same-store KPIs improved: RevPAR +5.0% to $3,797 and RevPOR +4.4% to $4,388; same-store NOI margin was 28.0% (second-highest post-COVID), up 40 bps sequentially, though down 90 bps year over year due to a tough comparison and one-time items in Q2 2024 .
  • Occupancy momentum and catalyst: July end-of-period spot occupancy reached a record 88.2% in same-store communities, positioning for sequential NOI growth in Q3 and H2/2025; management highlighted improved digital lead generation and non-aggregator move-ins as drivers .
  • Balance sheet action supports growth: Closed a $137M Ally Bank term loan on Aug 7 with $122M initial funding and favorable SOFR +2.65% rate (step-down possible), extending maturities and providing $15M of delayed draws; cash from operations improved to $12.8M for 1H 2025 .
  • Acquisitions extend regional scale: Closed two high-quality assets in Atlanta and Tampa (~$22M combined) at discounts to replacement cost with targeted double-digit stabilized yields; opened the Cincinnati community and signed a PSA for a DFW asset .

What Went Well and What Went Wrong

What Went Well

  • Rate and mix drove revenue and margin resilience: Same-store RevPOR rose 4.4% year over year to $4,388 and RevPAR rose 5.0% to $3,797; same-store NOI margin reached 28.0% (second-highest post-COVID) .
  • Occupancy accelerates post-quarter: July spot occupancy hit 88.2%, and management sees continued sequential NOI growth in Q3 driven by improved digital marketing and non-aggregator leads; “we hit a record high occupancy…88.2%” .
  • Balance sheet de-risking: Restated Ally term loan (SOFR +2.65% with potential step-down) and extended maturities; ~80% of debt at early 2029+ effective maturity, credit facility availability ~$32.9M at Q2-end .

What Went Wrong

  • Elevated move-outs (deaths) dampened occupancy: Q2 2025 had the highest historical quarter of move-outs vs Q2 2024’s lowest, with 43 incremental move-outs from increased deaths; management implemented enhanced clinical processes .
  • Year-over-year margin headwind: Same-store NOI margin fell 90 bps to 28.0% vs Q2 2024 due to a tough comp (utility refunds in Q2 2024 and tech investments ramping); total portfolio margin declined year over year as lower-occupancy acquisitions were included .
  • Labor cost inflation: Operating expenses up $15.4M year over year, including a $2.2M increase in labor costs at remaining owned communities; targeted nursing wage increases drove higher expense levels (offset by better rate and care fees) .

Financial Results

Consolidated P&L (oldest → newest)

MetricQ4 2024Q1 2025Q2 2025
Total Revenues ($USD Millions)$91.931 $91.923 $93.525
Resident Revenue ($USD Millions)$77.053 $79.255 $81.845
Net Income (Loss) Attributable to Common Shareholders ($USD Millions)$(6.913) $(13.938) $(2.972)
Diluted EPS ($USD)$(0.38) $(0.77) $(0.16)
Adjusted EBITDA ($USD Millions)$12.348 $13.565 $14.093

Year-over-Year (Q2 2024 vs Q2 2025)

MetricQ2 2024Q2 2025
Total Revenues ($USD Millions)$70.207 $93.525
Resident Revenue ($USD Millions)$63.108 $81.845
Diluted EPS ($USD)$(0.86) $(0.16)
Adjusted EBITDA ($USD Millions)$11.350 $14.093

Same-Store KPIs (oldest → newest)

KPIQ2 2024Q1 2025Q2 2025
Weighted Avg Occupancy (%)86.1% 86.8% 86.5%
RevPAR ($/mo)$3,617 $3,711 $3,797
RevPOR ($/mo)$4,202 $4,274 $4,388
Same-Store Community NOI ($USD Millions)$16.429 $16.070 $16.720
Same-Store NOI Margin (%)29.0% 27.5% 28.0%

Segment/Portfolio Breakdown

MetricQ1 2025Q2 2025
Acquisition Portfolio (At-Share) Occupancy (%)76.7% 77.3%
Acquisition RevPAR ($/mo)$4,629 $4,793
Acquisition RevPOR ($/mo)$6,038 $6,205
Acquisition Resident Revenue ($USD Millions)$16.0 $17.3
Acquisition Community NOI ($USD Millions)$4.2 $4.1
Acquisition NOI Margin (%)26.3% 23.7%
Total Portfolio (At-Share) Resident Revenue ($USD Millions)$79.935 $82.427
Total Portfolio (At-Share) Community NOI ($USD Millions)$20.452 $21.465
Total Portfolio (At-Share) NOI Margin (%)25.6% 26.0%

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Same-Store OccupancyJuly 2025None providedRecord spot occupancy 88.2%; sequential improvement vs JuneNew qualitative update
Sequential NOI TrendQ3 2025None providedExpect sequential NOI growth in Q3; momentum from June–JulyNew qualitative update
Acquisition Stabilization YieldsOngoingNone providedTargeting low double-digit stabilized yieldsMaintained/affirmed strategy
Margin OutlookH2 2025None providedMargin stabilization and growth as transition expenses settleNew qualitative update
Debt & Liquidity2025–2027None providedNew $137M Ally term loan (SOFR +2.65%, step-down possible); $32.9M credit facility availability at Q2-endImproved liquidity/maturity profile

Earnings Call Themes & Trends

TopicPrevious Mentions (Q-2: Q4 2024; Q-1: Q1 2025)Current Period (Q2 2025)Trend
Technology investmentsPlatform build-out and operating excellence to support growth Tech investments completed; cost drag in YOY comp but expected benefits to rates, care fees, labor management Improving monetization of tech
Digital marketing & salesFocused integration; poised for NOI growth Non-aggregator digital leads +48% in July; record move-ins with lower acquisition costs Strong acceleration
Debt profile & refinancingFannie Mae extension to Jan 2029; $150M credit facility; Texas DPO Closed new $137M Ally term loan; potential step-down to SOFR +2.45%; ~80% of debt maturing 2029+ De-risking; improved terms
Acquisitions pipeline$258M acquisitions in 2024; regional densification Closed Atlanta/Tampa; opened Cincinnati; PSA for DFW; targeting low double-digit yields Continued disciplined growth
Labor/clinical investmentHigher G&A in 2024 for growth; retention focus Targeted nursing wage increases; turnover down; aim to expand margins with higher rates and stable hours Stabilizing, margin supportive
Medicaid/regulatory mixRepositioning strategy noted in investor materials Pursuing repositioning to increase private pay mix and higher ROI Beneficial mix shift

Management Commentary

  • “Sonida delivered strong total portfolio community NOI in the second quarter propelled by healthy rent rate growth and effective integration of recently acquired communities…well-positioned to deliver strong results over the back half of the year” — Brandon Ribar, CEO .
  • “At July, we hit a record high occupancy…88.2%. This positions the business for a strong back half of the year and for continued sequential NOI growth in Q3.” — Brandon Ribar .
  • “Last week, we successfully closed on a restated financing agreement with Ally Bank…SOFR plus 2.65 with a step down to SOFR plus 2.45…provides for an additional $15,000,000 in delayed draws.” — Kevin Detz, CFO .
  • “Digital leads through non aggregator channels increased by 48% in July and move ins through Sonida channels comprised 67% of the total.” — Brandon Ribar .

Q&A Highlights

  • Move-ins and marketing: July saw record move-ins driven by enhanced digital marketing and non-aggregator channels, reducing acquisition costs; team changes brought sophisticated lead-gen processes from other industries .
  • Acquisition profile and returns: Newer-vintage assets in strong submarkets, acquired with mid-70s to low-80s occupancy; Sonida targets low double-digit stabilized yields with operational expense improvements out of the gate .
  • Labor dynamics: Targeted nursing wage increases (not hours) to improve retention and care assessments; strategy is to have rate growth outpace expense inflation and expand margins in H2/2025 .

Estimates Context

  • S&P Global Wall Street consensus for Q2 2025 was unavailable for EPS, revenue, and EBITDA; therefore, estimate-based beat/miss analysis cannot be provided for SNDA this quarter.*
  • Actual results: Resident revenue $81.845M, total revenues $93.525M, Adjusted EBITDA $14.093M, diluted EPS $(0.16) .

*Values retrieved from S&P Global.

Key Takeaways for Investors

  • Sequential momentum into H2: Record July occupancy (88.2% spot) and improved digital lead quality support expected sequential NOI growth in Q3, a near-term positive setup .
  • Pricing power and care fees: Rate and RevPOR growth, coupled with increased level-of-care fees, are offsetting labor inflation and supporting margin resilience (same-store margin 28.0%) .
  • Acquisitions at attractive returns: Atlanta/Tampa deals at discounts to replacement cost with targeted low double-digit yields; continued pipeline and regional densification should add to NOI over time .
  • Balance sheet improvement: New Ally term loan, extended maturities, and available liquidity ($32.9M under the credit facility at Q2-end) reduce near-term refinancing risk and fund growth .
  • Watch margin mix: Total portfolio margin pressure from lower-occupancy acquisitions should abate as assets stabilize; management expects margin stabilization and growth in H2/2025 .
  • One-off Q2 headwind likely behind: Elevated move-outs tied to resident deaths drove an anomalous Q2; processes implemented and move-outs trending back to normal levels in Q3-to-date .
  • Operational focus remains a differentiator: Owner-operator platform, technology investments, and clinical staffing stability are core to driving sustained rate, occupancy, and margin expansion .