Short answer
Brookdale Senior Living Inc. (BKD) filed its fiscal 2025 10-K annual report with the SEC on Feb 19, 2026. It reported revenue of $3.2B (+2.2% year over year) and net income of −$263M.
- Top risk flagged: Regulatory risk from 2026 Convertible Senior Notes under Indenture with Equiniti Trust Company, $23.3M principal due Oct 15, 2026, potential cash dilution from conversion rights
FY2025 key financial metrics · XBRL
- Revenue
- $3.2B
- +2.2% YoY
- Net income
- −$263M
- −30.1% YoY
- Operating margin
- 0.4%
- −1.1 pp YoY
- Gross margin
- 26.2%
- +0.6 pp YoY
- EPS (diluted)
- −$1.12
- −25.8% YoY
- ROE
- 587.0%
- +682.0 pp YoY
- Operating cash flow
- $218M
- +31.2% YoY
Source: XBRL data from the Brookdale Senior Living Inc. (BKD) FY2025 10-K on SEC EDGAR. USD.
Brookdale Senior Living Inc. FY2025 10-K analysis
AI summary of each section, grounded in the filing text
Business Overview
- Core business model: Operator and manager of 584 senior living communities across independent living, assisted living, memory care, and CCRCs serving ~51,000 residents
- New emphasis: Expanded Brookdale HealthPlus®, a technology-enabled proactive care coordination program, plus private duty services pilot for seniors outside communities
- Strategic shift: Increased focus on operational excellence, associate retention, healthcare integration, and technology-driven innovation for growth and improved margins
- Quantitative highlights: Acquired 30 communities (1,561 units) from Diversified Healthcare Trust and Welltower for $310M total; planned sales of 29 communities for ~$200M
- Noteworthy fact: Extended master lease arrangement with Ventas through 2035 on 65 communities, terminating leases on 55 others with transition to management contracts
Management Discussion & Analysis
- Revenue $3.043B, up 2.4% YoY (+$70.7M); same community resident fees up 5.1% (+$127.4M)
- Net loss increased 30.1% to $(263M); Adjusted EBITDA $457.8M, up 18.5% YoY
- Best segment: Assisted Living & Memory Care resident fees $2.103B (+3.2%), worst: Independent Living fees $593.8M (-0.9%)
- Operating cash flow $218M (+31%), investing cash outflow $456M, financing cash inflow $201M; adjusted free cash flow positive $22.8M vs. negative $(29.5M)
- Outlook: Plan to sell 29 communities in 2026 for ~$200M proceeds; focus on RevPAR growth, expense control, refinancing, and asset monetization; liquidity sufficient for 12 months but financing availability uncertain
Risk Factors
- Regulatory risk from 2026 Convertible Senior Notes under Indenture with Equiniti Trust Company, $23.3M principal due Oct 15, 2026, potential cash dilution from conversion rights
- Macroeconomic exposure: $1.0B variable-rate debt indexed to SOFR plus 244 bps, weighted avg interest 6.18%, risk from rising rates despite hedges expiring in 0.9 years
- Operational risk: Aging asset base with average building age 28 years, requiring $175M-$195M 2026 capital expenditures mainly for maintenance and renovations
- Market risk: Redemption option on 2026 Notes triggered if share price exceeds 130% of $8.10 conversion price, linking debt costs to equity market volatility
- Financial risk: $4.3B total debt, 89.7% non-recourse property-level mortgage debt, refinancing risk for $668M maturing in 2027 and later, potential liquidity shortfalls
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