Brookdale (NYSE:BKD) Misses Q3 Revenue Estimates

Core Insights - Brookdale Senior Living reported Q3 CY2025 revenue of $813.2 million, which was a 3.7% year-on-year increase but fell short of analyst expectations of $827.4 million [1][7] - The company experienced a GAAP loss of $0.48 per share, significantly missing the consensus estimate of a loss of $0.17 [1][7] - Adjusted EBITDA was $111.1 million, exceeding analyst estimates of $106.1 million, with a margin of 13.7% [7] Company Overview - Brookdale operates over 650 senior living communities across 41 states, serving approximately 59,000 residents [4] - The company offers various services including independent living, assisted living, memory care, and continuing care retirement communities [4] Revenue Growth - Over the last five years, Brookdale's sales declined at an annual rate of 2.6%, indicating poor business quality [5] - However, the company has shown an annualized revenue growth of 4.3% over the last two years, which is an improvement compared to the five-year trend [6] Financial Performance - The operating margin for Q3 was -6.6%, a decline from 1.4% in the same quarter last year [7] - Free cash flow margin improved to 14.1%, up from 1.5% in the same quarter last year [7] - Market capitalization stands at $2.20 billion [7] Future Outlook - Analysts project a revenue decline of 3.4% over the next 12 months, indicating potential demand headwinds for Brookdale's products and services [8]