# Brookdale Senior Living Inc. (BKD) — Financial Analysis

**Exchange:** NYSE  
**Coverage as of:** 2026-Q2  
**Updated:** 2026-05-29  
**Tier:** Free primer (step 2 of 19)  
**Sibling pages:** /stocks/BKD/thesis · /stocks/BKD/memo

## Financial Snapshot

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source: coverage-next-full | ticker: BKD | step: "04" | created: 2026-05-29
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### Step 04 — Financial Snapshot: Brookdale Senior Living Inc. (BKD)

#### Why GAAP Net Income Is the Wrong Lens for BKD

Brookdale has reported GAAP net losses every year since 2018 (except FY2020, which was distorted by asset sales and CARES Act relief). The reason is structural: high D&A ($370M/year on aging physical plants), rent expense on leased communities, and interest expense on $4.3B of debt together create an accounting loss even as cash flow improves.

**The correct BKD profitability framework:**
1. **Adjusted EBITDA** — earnings before interest, taxes, D&A, and non-cash/non-recurring items
2. **Adjusted EBITDAR** — adds back rent expense; the "pre-landlord" operating profitability measure
3. **RevPAR / Occupancy trends** — the leading indicator of fundamental performance

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#### Income Statement Summary (FY2021–FY2025)

| Metric (USD millions) | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
| **Total Revenue** | $2,758 | $2,825 | $3,016 | $3,125 | $3,194 |
| YoY Growth | -22.1% | +2.4% | +6.8% | +3.6% | +2.2% |
| Resident Fee Revenue | — | — | $2,824 | $2,972 | $3,043 |
| Facility Operating Expense | — | — | — | $2,183 | $2,216 |
| **Gross Profit (est.)** | — | — | ~$600 | ~$789 | ~$827 |
| G&A Expense | — | — | — | $186 | $195 |
| **Operating Income** | $(217) | $(43) | $18 | $47 | $14 |
| Interest Expense (est.) | ~$(280) | ~$(270) | ~$(260) | ~$(275) | ~$(295) |
| **Net Income** | $(99) | $(238) | $(189) | $(202) | $(263) |
| **EPS (Basic)** | $(0.54) | $(1.25) | $(0.84) | $(0.89) | $(1.12) |
| D&A | $345 | $354 | $350 | $368 | $370 |
| SBC | $16 | $15 | $12 | $14 | $12 |
| CapEx | $177 | $197 | $233 | $201 | $202 |

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#### Adjusted EBITDA — The Key Metric

| Metric (USD millions) | FY2022 | FY2023 | FY2024 | FY2025 | FY2026E (Guidance) |
|---|---|---|---|---|---|
| Net Income | $(238) | $(189) | $(202) | $(263) | — |
| + D&A | $354 | $350 | $368 | $370 | — |
| + Interest | ~$270 | ~$260 | ~$275 | ~$295 | — |
| + Non-cash/non-rec | — | — | — | — | — |
| **Adjusted EBITDA** | — | — | $386 | $458 | $502–$516 |
| YoY Growth | — | — | — | +18.5% | +9.7–12.7% |

The FY2024 → FY2025 EBITDA improvement of $71.6M (+18.5%) demonstrates the operating leverage when occupancy improves 230bps and RevPOR increases 2.7%. The 2026 guidance of $502–516M implies continued acceleration.

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#### FY2025 Detailed P&L (From Investor Presentation)

| Item | FY2025 | FY2024 | Change |
|---|---|---|---|
| Resident Fee Revenue | $3,042.7M | $2,972.1M | +$70.6M (+2.4%) |
| Facility Operating Expense | $2,216.0M | $2,183.3M | +$32.7M (+1.5%) |
| **Facility Operating Margin** | **27.2%** | **26.5%** | **+70bps** |
| G&A Expense | $195.1M | $185.9M | +$9.2M (+5.0%) |
| Adjusted EBITDA | $457.8M | $386.2M | +$71.6M (+18.5%) |
| Net Income (Loss) | $(262.7)M | $(202.0)M | -30.1% |

*Revenue growing faster than facility OpEx (+2.4% vs. +1.5%) = positive operating leverage.*
*Net loss widening despite EBITDA growth = interest + D&A burden on growing debt balance.*

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#### Cash Flow Summary

| Metric (USD millions) | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
| Operating Cash Flow | $(95) | $3 | $163 | $166 | $218 |
| Capital Expenditures | $(177) | $(197) | $(233) | $(201) | $(202) |
| **Free Cash Flow** | $(272) | $(194) | $(70) | $(35) | **+$16** |

**FY2025 marks the first positive FCF year since pre-COVID.** FCF of $16M is thin but directionally significant — the company is no longer burning cash on operations. With occupancy recovery continuing, FCF should expand meaningfully in 2026–2027.

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#### Balance Sheet Summary

| Metric (USD millions) | FY2023 | FY2024 | FY2025 | Q1 2026 |
|---|---|---|---|---|
| Total Assets | $5,573 | $6,336 | $5,952 | $5,898 |
| Cash & Equivalents | $278 | $309 | $279 | $265 |
| Long-Term Debt | $3,697 | $4,063 | $4,293 | $4,307 |
| Operating Lease Liability | — | — | $1,198 | — |
| Finance Lease Liability | — | — | $26 | — |
| Stockholders' Equity | — | — | $(45) | $(56) |
| Retained Deficit | — | — | $(4,303) | $(4,309) |

**Total obligation stack:** ~$4.3B debt + ~$1.2B operating leases = ~$5.5B in obligations against $279M cash and $458M EBITDA. Net leverage (debt/EBITDA) ~9x before leases. Lease-adjusted EBITDAR provides a more useful framing but still implies elevated leverage.

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#### EPS Trend — Loss Trajectory

| Year | EPS (Basic) | Comment |
|---|---|---|
| FY2019 | $(1.44) | Pre-COVID losses |
| FY2020 | $0.45 | CARES Act relief + asset sales (not recurring) |
| FY2021 | $(0.54) | COVID trough |
| FY2022 | $(1.25) | Interest burden; occupancy recovering |
| FY2023 | $(0.84) | Operating income turns positive |
| FY2024 | $(0.89) | EBITDA improving; interest expense rising |
| FY2025 | $(1.12) | Deeper loss vs. 2024 due to $263M net loss |
| FY2026E | ~$(0.37) | Consensus; major improvement expected |
| FY2027E | ~$(0.14) | Approaching breakeven |

The path to GAAP EPS breakeven requires either: debt reduction (lowers interest expense), or EBITDA growth sufficient to cover ~$295M annual interest + $370M D&A. At current trajectory, EPS breakeven appears achievable around 2028–2029 absent transformative transactions.

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#### Key Financial Ratios (FY2025)

| Ratio | Value | Comment |
|---|---|---|
| EV/Adj. EBITDA | ~15.6x | Moderate for recovery story; high vs. REIT sector |
| Adj. EBITDA Margin | 14.3% | Improving; facility-level margin ~27% |
| Debt/EBITDA (gross) | ~9.4x | Elevated; market accepted given owned real estate backing |
| Free Cash Flow Yield | ~0.5% | Thin; improving |
| Revenue Growth (3-yr CAGR) | ~5.0% | Understated due to portfolio shrinkage |

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#### Important Notes on BKD Financial Reporting

1. **Non-GAAP adjusted EBITDA** is the company-reported metric BKD guides to. Excludes non-cash items, transaction costs, legal settlements.
2. **Same-community metrics** are the cleanest view of underlying performance, stripping out acquisitions, dispositions, and Ventas transitions.
3. **EBITDAR** (adds back rent expense) is used for covenant compliance and peer comparison — particularly relevant given $1.2B lease liability.
4. **Revenue decline (FY2025→FY2026E)** is structural/portfolio, not operational — same-community RevPAR growing 8–9%.

## Deeper Financial Analysis

The fundamental tier ($1.00) adds 8 dimensions not included here:

- Revenue Breakdown — segment revenue, geographic mix, product-line margins
- Financial Trends — QoQ momentum, leading indicators, inflection points
- Balance Sheet — debt structure, dilution risk, working capital dynamics
- Capital Allocation — ROIC, buyback cadence, reinvestment efficiency
- Earnings Analysis — beats/misses, guidance vs actuals, transcript highlights
- Competitive Positioning — market share, pricing power, peer benchmarks
- Industry Context — TAM, sector tailwinds/headwinds, regulatory backdrop

**API endpoint:** GET /api/v1/research/BKD/fundamental

## Navigation

- Overview: /stocks/BKD
- Financials (this page): /stocks/BKD/financials
- Thesis: /stocks/BKD/thesis
- Investment Memo: /stocks/BKD/memo
- Coverage universe: /stocks