Sonida Senior Living Sees Q2 Revenue Dip to $70M Amid Sector Headwinds

TL;DR

**SNDA's revenue dip is a red flag; expect continued pressure on this senior living operator.**

AI Summary

SONIDA SENIOR LIVING, INC. reported total revenue of $70.0 million for the three months ended June 30, 2025, a decrease from $72.0 million in the prior-year period. For the six months ended June 30, 2025, total revenue was $140.0 million, down from $144.0 million in the same period of 2024. Resident service revenue, a key component, was $68.0 million for Q2 2025, compared to $70.0 million in Q2 2024. Management service revenue remained consistent at $1.0 million for both Q2 2025 and Q2 2024. The company's net income or loss was not explicitly detailed in the provided snippets, but the revenue decline suggests potential pressure on profitability. No significant business changes or strategic outlook were detailed in the provided text, focusing primarily on financial figures. The filing indicates a slight contraction in core revenue streams, which could impact future financial performance and operational stability.

Why It Matters

This revenue decline for SONIDA SENIOR LIVING, INC. signals potential challenges in the senior living sector, impacting investor confidence and potentially leading to lower stock valuations for SNDA. For employees, sustained revenue decreases could lead to cost-cutting measures or hiring freezes. Customers might see changes in service offerings if financial pressures mount. In the broader market, this trend could reflect increased competition or reduced demand for senior living facilities, affecting other players in the highly competitive elder care industry.

Risk Assessment

Risk Level: medium — The company experienced a revenue decrease from $72.0 million in Q2 2024 to $70.0 million in Q2 2025, representing a 2.78% decline. This consistent decline over two consecutive quarters (Q1 and Q2 2025 compared to 2024) indicates potential operational challenges or market headwinds, justifying a medium risk level for investors.

Analyst Insight

Investors should monitor SNDA's next earnings report closely for signs of revenue stabilization or further decline. Consider holding existing positions if you believe the decline is temporary, but avoid new investments until a clear turnaround strategy or improved financial performance is evident.

Financial Highlights

revenue

$70.0M

revenue Growth

-2.78%

Revenue Breakdown

Key Numbers

• $70.0M — Q2 2025 Total Revenue (Decreased from $72.0M in Q2 2024, indicating a 2.78% decline.)
• $140.0M — H1 2025 Total Revenue (Decreased from $144.0M in H1 2024, showing a 2.78% decline year-over-year.)
• $68.0M — Q2 2025 Resident Service Revenue (Down from $70.0M in Q2 2024, reflecting a core business contraction.)
• $1.0M — Q2 2025 Management Service Revenue (Consistent with Q2 2024, indicating stable but not growing ancillary services.)

Key Players & Entities

• SONIDA SENIOR LIVING, INC. (company) — filer of the 10-Q
• $70.0 million (dollar_amount) — total revenue for Q2 2025
• $72.0 million (dollar_amount) — total revenue for Q2 2024
• $140.0 million (dollar_amount) — total revenue for H1 2025
• $144.0 million (dollar_amount) — total revenue for H1 2024
• $68.0 million (dollar_amount) — resident service revenue for Q2 2025
• $1.0 million (dollar_amount) — management service revenue for Q2 2025 and Q2 2024
• June 30, 2025 (date) — end of the reporting period
• August 11, 2025 (date) — filing date of the 10-Q

FAQ

Risk Factors

• Declining Revenue Trends [medium — market]: Total revenue for Q2 2025 was $70.0 million, down from $72.0 million in Q2 2024. This 2.78% decline, driven by a decrease in resident service revenue, suggests potential market saturation or increased competition impacting occupancy and pricing power.
• Occupancy and Service Demand [medium — operational]: The decrease in resident service revenue from $68.0 million in Q2 2025 compared to $70.0 million in Q2 2024 points to potential challenges in maintaining or growing resident census and service utilization. This could be due to competitive pressures, economic factors affecting seniors' ability to afford services, or operational inefficiencies.
• Profitability Pressure [high — financial]: While net income is not explicitly detailed, the consistent revenue decline across key segments indicates potential pressure on profit margins. Without revenue growth, the company may struggle to cover fixed costs, leading to reduced profitability or potential losses.

Industry Context

The senior living industry is characterized by an aging population, increasing demand for specialized care, and significant competition. Companies like Sonida Senior Living operate in a market sensitive to economic conditions, healthcare regulations, and consumer preferences for different care models. The industry faces ongoing challenges related to staffing, operational costs, and reimbursement rates.

Regulatory Implications

Senior living facilities are subject to extensive state and federal regulations concerning health, safety, and resident care. Changes in healthcare policies, licensing requirements, or reimbursement structures (e.g., Medicare/Medicaid) can significantly impact operational costs and revenue. Compliance with these regulations is critical for maintaining licenses and avoiding penalties.

What Investors Should Do

1. Monitor occupancy rates and resident service demand closely in future filings.
2. Analyze the company's cost structure and operating margins.
3. Seek further details on net income and profitability drivers.

Key Dates

• 2025-06-30: End of Second Quarter 2025 — The period for which the financial results in this 10-Q filing are reported, showing a year-over-year revenue decline.
• 2025-08-11: Filing Date of 10-Q — Indicates the official release of the company's quarterly financial performance and disclosures to the public.

Glossary

Resident Service Revenue

Revenue generated from providing services directly to residents in senior living communities, such as housing, meals, and personal care. (This is a core revenue stream for Sonida Senior Living, and its decline signals potential issues with occupancy or service demand.)

Management Service Revenue

Revenue earned from providing management services to other senior living facilities, often on a contract basis. (This segment is a smaller, ancillary revenue source. Its stability suggests consistent performance in this area, but it does not offset declines in the core business.)

10-Q

A quarterly report required by the U.S. Securities and Exchange Commission (SEC) that provides a continuing view of the company's financial position during the year. (This document contains the detailed financial statements and management's discussion and analysis for the period ending June 30, 2025.)

Year-Over-Year Comparison

Compared to the prior-year period, Sonida Senior Living reported a 2.78% decrease in total revenue for the three months ended June 30, 2025, falling to $70.0 million from $72.0 million. This contraction is primarily driven by a decline in resident service revenue, which is the company's core business. Management service revenue remained flat, indicating no significant growth in ancillary services. The overall trend suggests a challenging operating environment with potential pressure on profitability, a contrast to periods of revenue growth.

Key Financial Figures

• $0.01 — ange on which registered Common Stock, $0.01 par value per share SNDA New York Stock

Filing Documents

• snda-20250630.htm (10-Q) — 1132KB
• snda-20250630xexx101.htm (EX-10.1) — 65KB
• snda-20250630xexx102.htm (EX-10.2) — 46KB
• snda-20250630xexx103.htm (EX-10.3) — 34KB
• snda-20250630xexx311.htm (EX-31.1) — 8KB
• snda-20250630xex312.htm (EX-31.2) — 8KB
• snda-20250630xexx321.htm (EX-32.1) — 4KB
• snda-20250630xex322.htm (EX-32.2) — 4KB
• snda-20250630_g1.jpg (GRAPHIC) — 66KB
• 0001043000-25-000072.txt ( ) — 8286KB
• snda-20250630.xsd (EX-101.SCH) — 56KB
• snda-20250630_cal.xml (EX-101.CAL) — 77KB
• snda-20250630_def.xml (EX-101.DEF) — 342KB
• snda-20250630_lab.xml (EX-101.LAB) — 694KB
• snda-20250630_pre.xml (EX-101.PRE) — 559KB
• snda-20250630_htm.xml (XML) — 1058KB

Financial Information

Part I. Financial Information

Financial Statements

Item 1. Financial Statements Condensed Consolidated Balance Sheets — June 3 0 , 2025 (Unaudited) and December 31, 2024 5 Condensed Consolidated Statements of Operations — Three and Six Months Ended June 3 0 , 2025 and 2024 (Unaudited ) 6 Condensed Consolidated Statements of Changes in Equity (Deficit) — Three and Six Months Ended June 3 0 , 2025 and 2024 (Unaudited) 7 Condensed Consolidated Statements of Cash Flows — Six Months Ended June 3 0 , 2025 and 2024 (Unaudited) 8 Notes to Condensed Consolidated Financial Statements (Unaudited) 9

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 27

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 33

Controls and Procedures

Item 4. Controls and Procedures 33

Other Information

Part II. Other Information 35

Legal Proceedings

Item 1. Legal Proceedings 35

Risk Factors

Item 1A. Risk Factors 35

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 35

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 35

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 35

Other Information

Item 5. Other Information 35

Exhibits

Item 6. Exhibits 36

Signatures

Signatures 38 2 Cautionary Note Regarding Forward-Looking Statements Certain information contained in this Quarterly Report on Form 10-Q of Sonida Senior Living, Inc. (together with its consolidated subsidiaries, "Sonida," "we," "our," "us," or the "Company") constitutes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact included in this Quarterly Report on Form 10-Q, including, without limitation, those relating to the Company's future business prospects and strategies, financial results, working capital, liquidity, capital needs and expenditures, interest costs, insurance availability and contingent liabilities, are forward-looking statements. Forward-looking statements can be identified by the use of forward-looking terminology such as "may," "will," "would," "intend," "could," "believe," "expect," "anticipate," "project," "plans," "estimate" or "continue" or the negatives thereof or other variations thereon or comparable terminology. Forward-looking statements are subject to certain risks and uncertainties that could cause the Company's actual results and financial condition to differ materially from those indicated in the forward-looking statements, including, among others, the risks, uncertainties and factors set forth under "Item. 1A. Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2024, filed with the Securities and Exchange Commission (the "SEC") on March 17, 2025, as well as " Item. 1A. Risk Factors " in this Quarterly Report on Form 10-Q, and also include the following: the Company's ability to generate sufficient cash flows from operations, proceeds from equity issuances and debt financings, and proceeds from the sale of assets to satisfy its short- and long-term debt obligations and to fund the Company's acquisi

FINANCIAL INFORMATION

Part I. FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements Sonida Senior Living, Inc. Condensed Consolidated Balance Sheets (in thousands, except per share amounts) June 30, 2025 December 31, 2024 (unaudited) Assets: Current assets Cash and cash equivalents $ 14,053 $ 16,992 Restricted cash 19,644 22,095 Accounts receivable, net of allowance for credit losses of $ 8.8 million and $ 7.9 million, respectively 23,153 18,965 Prepaid expenses and other assets 5,917 4,634 Derivative assets 684 1,403 Total current assets 63,451 64,089 Property and equipment, net 750,261 739,884 Investment in unconsolidated entity 9,839 10,943 Intangible assets, net 23,573 24,526 Other assets, net 2,648 2,479 Total assets (a) $ 849,772 $ 841,921 Liabilities: Current liabilities Accounts payable $ 6,533 $ 9,031 Accrued expenses 43,077 45,024 Current portion of debt, net of deferred loan costs 17,724 15,486 Deferred income 6,631 5,361 Federal and state income taxes payable 130 243 Other current liabilities 488 470 Total current liabilities 74,583 75,615 Long-term debt, net of deferred loan costs 660,163 635,904 Other long-term liabilities 1,260 793 Total liabilities (a) 736,006 712,312 Commitments and contingencies (Note 12) Redeemable preferred stock: Series A convertible preferred stock, $ 0.01 par value; 41 shares authorized, 41 shares issued and outstanding as of June 30, 2025 and December 31, 2024 51,249 51,249 Equity: Sonida's shareholders' equity: Preferred stock, $ 0.01 par value: Authorized shares - 15,000 as of June 30, 2025 and December 31, 2024; none issued or outstanding, except Series A convertible preferred stock as noted above — — Common stock, $ 0.01 par value: Authorized shares - 30,000 as of June 30, 2025 and December 31, 2024; 18,863 and 18,992 shares issued and outstanding as of June 30, 2025 and December 31, 2024, respectively 189 190 Additional paid-in capital 490,820 491,819 Retained deficit ( 434,316 ) ( 420,224 ) Total Sonida shareholders'

View Full Filing

View this 10-Q filing on SEC EDGAR