Sonida Senior Living, Inc. (SNDA) · Nov 5, 2026 · Earnings

Sonida earnings show sharp NOI growth as cash flow turns negative

Miss — GAAP EPS -$0.72 vs approximately -$0.57 consensus

Sonida earnings show strong occupancy, margin and NOI gains after the CHP merger, but negative operating cash flow and a deeper GAAP loss complicate the story.

Sonida is now a scaled senior-housing owner-operator, integrating the CHP portfolio while using occupancy gains, labor controls and its SPIN operating platform to move from stabilization toward compounding growth. The quarter shows that the operating model is working, but the cash and GAAP earnings picture remains materially less clean.

The core operating result is clearly better. On a pro forma basis that treats CHP as owned throughout the comparison period, same-store occupancy rose to 88.6% from 86.6%, same-store NOI increased 15.6%, and NOI margin expanded 230 basis points. The improvement is not just acquisition-driven: resident revenue rose 7.3% while adjusted operating expenses increased only 3.8%, indicating meaningful operating leverage. The filing says, “Same-store SHOP NOI increased 15.6% compared to the prior year period.”

The negative headline is the GAAP earnings miss. Sonida posted a diluted loss of $0.72 per share versus a published consensus near a $0.57 loss, making the result worse than the market’s basic earnings benchmark. The gap was amplified by $9.5 million of transaction, transition and restructuring costs, a $4.4 million debt-extinguishment loss and $11.3 million of stock compensation tied to the CHP merger. The filing says, “In connection with the repayment of the Bridge Facility, the Company recognized a loss on debt extinguishment of $4.4 million.”

Cash conversion is the unresolved weakness. Despite reporting $46.8 million of adjusted EBITDA, Sonida generated essentially no operating cash in the first nine months, versus $24.8 million a year earlier. That mismatch reflects the cost and working-capital burden of the CHP integration and expansion program, while the company spent $913.0 million on the business acquisition and funded growth largely through debt and equity issuance. The filing says, “Net cash provided by (used in) operating activities” was $(6) thousand for the first nine months of 2026.

The balance sheet is more flexible, not yet de-risked. Refinancing the bridge facility into a five-year $380 million Ally term loan reduced near-term refinancing pressure and restored revolver capacity, while 98% of debt is reported as maturing in 2029 or later. But total debt rose sharply alongside the CHP transaction, and the company still expects to rely on operating cash flow, debt capacity and equity offerings to fund future growth. The filing says, “The loan has a five-year maturity with two one-year extension options and an interest rate of SOFR plus 185 basis points.” 〔0〕

CHP integration is progressing, but much of the upside remains prospective. Sonida has identified plans for 43 of 54 SHOP communities and says its $16 million to $20 million synergy target is on track, with 70% to 85% of the year-one run rate expected in 2026. That supports the longer-term operating thesis, but the quarter still carries elevated integration costs and relies heavily on unaudited pro forma comparisons, so the full earnings contribution has not yet been proven in reported cash flow.

Bottom line: Sonida’s communities are executing better than the GAAP loss suggests, with occupancy and NOI expansion validating the operating strategy. But the earnings miss and near-zero operating cash flow keep this from being a clean beat: the business is improving, while the integration and capital burden remain unresolved.

Original filing on SEC EDGAR

More Sonida Senior Living, Inc. news

• The $1.8B senior-housing deal still looks expensive on earnings
• Sonida buys five years of runway—with a much tighter lender leash
• Occupancy and same-store NOI accelerated, while cash flow stayed strained
• Prior conversion re-papered to end litigation, with economics essentially unchanged