The quarter was broadly on track, not a clear beat. Brookdale’s prior 2026 outlook called for full-year Adjusted EBITDA of $502 million to $516 million; first-half Adjusted EBITDA of $253.1 million annualizes to roughly $506 million, placing performance near the middle of that range rather than materially above it.
| Metric | 2Q 2026 | 2Q 2025 | Change | 1H 2026 | 1H 2025 | Change |
|---|---|---|---|---|---|---|
| Resident fees | $708.5M | $775.6M | -8.7% | $1,430.9M | $1,553.3M | -7.9% |
| Adjusted EBITDA | $122.1M | $117.1M | +4.3% | $253.1M | $241.2M | +4.9% |
| Net income (loss) | $23.3M | $(43.0)M | NM | $16.4M | $(108.0)M | NM |
| Operating cash flow | $91.9M | $83.6M | +10.0% | $112.8M | $107.0M | +5.5% |
| Adjusted free cash flow | $38.2M | $19.9M | +91.9% | $26.0M | $23.7M | +9.7% |
| Weighted average occupancy | 82.4% | 80.1% | +230 bps | 82.3% | 79.7% | +260 bps |
| RevPAR | $5,497 | $5,080 | +8.2% | $5,502 | $5,084 | +8.2% |
The underlying communities are performing better than the headline revenue suggests. Same-community RevPAR rose 5.5% and occupancy reached 82.9%, while same-community operating income increased 5.1%; pricing and occupancy gains are therefore translating into better site-level profitability even as the consolidated portfolio has been reduced to 535 communities from 617 a year earlier (Same Community; Senior Housing; Overview).
Portfolio shrinkage is still the main drag. Average units fell 15.7% year over year, pushing resident fees down 8.7% despite the RevPAR improvement (Overview; Segment Overview). The leased portfolio was especially reduced, with average leased units down 38.4%; its operating income fell 20.7%, although its margin improved to 32.9% (Senior Housing Leased Portfolio). This means the reported EBITDA gain is coming from a smaller, more productive base—not broad-based revenue expansion.
Cash generation improved, but the balance sheet remains heavy. Adjusted free cash flow rebounded to $38.2 million in the quarter, helped partly by favorable working-capital movement of $12.9 million, while net debt stood at $3.90 billion and adjusted net debt at $5.07 billion. Annualized leverage was still 8.4x, and owned-portfolio interest coverage was only 1.9x (Adjusted EBITDA and Adjusted Free Cash Flow; Capital Structure; Senior Housing Owned Portfolio).
Net read: operationally encouraging, financially constrained. Higher occupancy, RevPAR, margins, operating cash flow, and a return to GAAP net income are better than the prior-year comparison. But the filing does not raise the standing EBITDA outlook, consolidated revenue is shrinking because of disposals and lease terminations, and leverage remains substantial. That combination supports a mixed interpretation rather than a meaningful positive surprise.
Read the original 8-K on SEC EDGAR ↗