Can Brookdale (BKD) Turn Rising Revenues Into Profitability Amid Widening Losses?

• Brookdale Senior Living Inc. recently reported its second quarter 2025 results, with revenue rising to US$812.94 million from US$777.54 million the previous year, while net loss widened to US$43.02 million from US$37.73 million.
• Despite generating higher sales, the company's net losses increased for both the quarter and the first half of 2025, highlighting ongoing operational challenges.
• We will examine how Brookdale's larger net loss, despite increased revenue, impacts the current investment narrative for the company.

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Brookdale Senior Living Investment Narrative Recap

To be a shareholder of Brookdale Senior Living, one needs to believe that improving occupancy rates and access to a growing senior population can ultimately translate into profitability, even as cost pressures and high leverage persist. The recent news of widening net losses despite higher revenue is relevant for the near-term, but it has not materially altered the outlook for occupancy-driven margin expansion, the key short-term catalyst, or the company's ongoing exposure to labor and debt-related risks.

Among recent company updates, the July announcement of June consolidated occupancy rates rising to 80.5% (up 230 basis points year over year) stands out. This increase is especially significant in light of the current earnings report, as rising occupancy remains essential for Brookdale to convert top-line growth into improved margins, offsetting operational pressures underscored by ongoing losses.

By contrast, investors should still be attentive to the continued high leverage and refinancing risk, as the combination of ongoing losses and…

Read the full narrative on Brookdale Senior Living (it's free!)

Brookdale Senior Living's narrative projects $3.2 billion in revenue and $173.7 million in earnings by 2028. This requires 1.9% yearly revenue growth and a $416.3 million increase in earnings from the current level of -$242.6 million.

Uncover how Brookdale Senior Living's forecasts yield a $8.10 fair value, a 10% upside to its current price.

Exploring Other Perspectives

The Simply Wall St Community submitted one fair value estimate for Brookdale, landing at US$24.79 per share, well above current prices. While some see opportunity in occupancy gains supporting margin recovery, not everyone shares the same outlook, so consider a range of opinions before forming your view.

Explore another fair value estimate on Brookdale Senior Living - why the stock might be worth just $24.79!

Build Your Own Brookdale Senior Living Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Brookdale Senior Living research is our analysis highlighting 2 key rewards and 3 important warning signs that could impact your investment decision.
• Our free Brookdale Senior Living research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Brookdale Senior Living's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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