Sonida Senior Living Reports 33.2% Revenue Growth to $93.5 Million in Q2 2025

Sonida Senior Living, Inc. reported significant financial performance improvements in its latest quarterly filing, with total revenues reaching $93.5 million for the three months ended June 30, 2025, compared to $70.2 million for the same period in 2024, marking a 33.2% increase. The company attributed this growth primarily to a 29.6% rise in resident revenue, which totaled $81.8 million, driven by increased average rent rates and the addition of 18 new communities acquired during 2024 and 2025. For the first half of 2025, total revenues were $185.4 million, up from $137.6 million in the prior year, reflecting a 34.7% increase.

Despite the revenue growth, Sonida reported a net loss of $1.6 million for the second quarter of 2025, an improvement from a loss of $9.8 million in the same quarter of 2024. The company’s operating expenses also increased, totaling $61.4 million for the second quarter, up from $46.0 million a year earlier, largely due to costs associated with the newly acquired communities. General and administrative expenses rose to $9.7 million, reflecting investments in labor and employee-related costs to support growth initiatives.

Strategically, Sonida has been active in expanding its portfolio, acquiring two senior living communities in Florida and Georgia for a total of $22 million in May and June 2025. The company also entered into joint ventures, including the Palatine JVs, which acquired four communities in Texas and Georgia. As of June 30, 2025, Sonida owned, managed, or invested in 96 senior housing communities across 20 states, with a total capacity of approximately 10,150 residents.

Operationally, the company reported a weighted average occupancy rate of 86.5% for the second quarter of 2025, slightly up from 86.1% in the previous year. The average monthly rental rate for owned communities increased by 4.4% year-over-year. Sonida's cash flow from operating activities improved significantly, generating $12.8 million in the first half of 2025 compared to a cash outflow of $1.6 million in the same period of 2024. However, net cash used in investing activities was $37.5 million, primarily due to community acquisitions and capital improvements.

Looking ahead, Sonida anticipates continued growth driven by its strategic acquisitions and operational improvements. The company has also secured a senior secured term loan of $137 million to enhance its liquidity and support further investments. However, it remains cautious about potential market risks, including elevated interest rates and labor market challenges, which could impact its financial performance and operational efficiency.