Sonida Senior Living(NYSE: SNDA) reported fiscal Q2 2025 results (period ended June 30, 2025) on August 11, 2025, highlighted by a 26.1% year-over-year increase in adjusted EBITDA, a 5% sequential increase in net operating income (NOI) on a total portfolio at share basis, and record-high same-store occupancy of 88.2% in July. Management provided updates on recent acquisitions, digital marketing-led demand generation, organizational restructuring yielding improved efficiency, and sustained investments in staff retention and technology.
Occupancy and pricing reach record highs for Sonida Senior Living
July saw same-store occupancy reach 88.2%, up from 86.5% year-over-year (fiscal Q2 2024 to July 2025), with revenue per available room (RevPAR) reaching its highest quarterly level in company history. The 19-community portfolio acquired in 2024 exceeded 82% occupancy at share for the first time in July, up from 77.5% in November 2024.
"At the July, we hit a record high occupancy for our same-store portfolio of 88.2%. This positions the business for a strong back half of the year and for continued sequential NOI growth in Q3. I am also encouraged that we achieved growth in June and July while also driving our average rate or RevPAR to the highest quarterly level in the portfolio's history in Q2. These two key metrics position the business to deliver significant revenue and margin growth in the back half of the year and beyond."
— Brandon Ribar, President and CEO
Record-high RevPAR and same-store occupancy, along with accelerating acquisition portfolio stabilization, signal strengthened revenue momentum and margin expansion heading into the second half of 2025, underscoring strong operational execution.
Sonida Senior Living leverages digital marketing to accelerate organic move-ins
Lead volume for July outpaced the 2025 average by 16%, driven by a 48% increase in digital leads from non-third-party aggregator channels in July, with 67% of move-ins sourced via proprietary channels in July. Management noted all-time high move-in activity in July, with reduced reliance on paid referrals and minimal use of concessions.
"Lead volume in July exceeded our average for the 2025 by 16%, driven by enhanced digital marketing processes. More importantly, digital leads through non-aggregator channels increased by 48% in July and move-ins through Sonida Senior Living, Inc. channels comprised 67% of the total. The bottom line is our move-ins hit an all-time high, without increasing reliance on third-party paid referral relationships, or material discounting and concessions."
— Brandon Ribar, President and CEO
Self-generated digital demand has improved sales efficiency and mitigated the risk of margin erosion from referral commissions or promotional pricing, highlighting a scalable and sustainable channel strategy for growth.
Staff investments drive retention and operating leverage
Annualized retention increased 17%, while contract labor use decreased significantly portfolio-wide. Same-store direct labor costs rose approximately $1.5 million year-over-year but were outpaced by revenue growth. As a percentage of revenue, total labor excluding benefits improved 40 basis points from the previous quarter, despite inflationary wage pressures.
"This investment has led to outsized level of care revenue increases through more timely and accurate care assessments, as discussed earlier. More importantly, the investment in our community clinical teams has led to an annualized retention increase of 17%. From a total company perspective, the investment into our clinical teams should also strengthen the clinical acuity expertise needed for further expansion into both assisted and memory levels of care."
— Kevin Detz, Chief Financial Officer
Improved retention and clinical capability are enhancing resident care, supporting price realization and level-of-care fee growth, and providing cost stability, thereby reinforcing the company's platform for scalable margin expansion and future service line diversification.
Looking ahead
Management reaffirmed the near-term target of $100 million in NOI (pro forma, non-GAAP), citing $12 million in annualized NOI growth based on annualized June NOI and accelerating acquisition community stabilization. Additional revenue opportunity of more than $60 million remains available through filling current vacancy at market rates. No explicit update to previously disclosed general and administrative (G&A) or labor cost guidance was provided; management expects the existing G&A structure to remain stable barring further material acquisitions, as stated on the earnings call.
