Sonida Q3 2026 Earnings: Occupancy Growth Lifts Same-Store NOI

Sonida Senior Living (NYSE: SNDA) reported Q3 2026 revenue of $210.2 million, up approximately 114.4% from $98.0 million a year earlier, while diluted loss per share narrowed to $0.72 from $1.56. Same-store SHOP NOI increased 15.6% on a pro forma basis as occupancy and RevPOR improved, but the GAAP net loss attributable to common shareholders widened amid higher depreciation, G&A, transaction costs, and a $4.4 million debt-extinguishment loss.

Core Earnings Data

The larger portfolio drove a substantial increase in reported revenue for the quarter ended September 30, 2026. Resident revenue rose to $189.0 million from $84.6 million, while rental income contributed $8.1 million compared with none in the prior-year quarter.

Adjusted EBITDA and normalized FFO were positive, but total expenses still exceeded revenue. The release did not provide prior-year normalized FFO or the absolute pro forma Q3 2025 adjusted EBITDA figure.

Adjusted EBITDA and same-store comparisons use the company’s non-GAAP or pro forma measures and should not be treated as directly equivalent to reported GAAP results.

Portfolio Operations and Acquisitions

Same-store operating metrics improved across occupancy, resident revenue per occupied unit, and NOI. Management said continued occupancy growth was translating into margin expansion and NOI growth.

The company continued expanding its portfolio during and after the quarter. Sonida acquired a 107-unit Florida community in September for $14.7 million, plus $0.1 million of transaction costs. In October, after quarter-end, it purchased six additional communities through three transactions for an aggregate $135.5 million.

As of September 30, Sonida owned, managed, or invested in 165 senior housing communities representing more than 16,700 units across 35 states. Management’s near-term operating focus is integrating CHP and applying its operating processes across the enlarged portfolio.

A Larger Share Count Narrowed EPS While the GAAP Loss Widened

The improvement in loss per share did not reflect an improvement in the absolute GAAP loss. Net loss attributable to common shareholders widened to $34.3 million, but weighted average diluted shares increased to 47.6 million from 18.1 million. Spreading the loss over approximately 2.6 times as many shares reduced the reported loss per share.

Several costs increased as the business expanded. Depreciation and amortization rose to $43.1 million from $14.6 million, G&A expense increased to $26.3 million from $10.5 million, and transaction, transition, and restructuring costs reached $9.5 million versus $6.2 million. Sonida also recorded a $4.4 million loss on debt extinguishment. Interest expense was comparatively stable at $9.8 million versus $9.9 million.

This created a clear split between operating measures and GAAP profitability: adjusted EBITDA increased 26.2% against the pro forma comparison, while the reported pre-tax loss widened to $34.2 million from $27.3 million.

Cash Flow, Liquidity, and Leverage

Cash-flow figures in the release cover the first nine months of 2026 rather than the third quarter alone. Nine-month operating cash flow was an outflow of $6,000, compared with an inflow of $24.8 million in the same period of 2025. Investing outflows reached $950.8 million, primarily including $913.0 million for a business acquisition, $14.8 million for new communities, and $32.7 million of capital expenditures.

Those investments were funded largely through financing activities. Nine-month financing inflows totaled $1.09 billion, including $1.64 billion of debt issuance and $147.4 million of common-stock issuance, partly offset by $660.4 million of debt repayments.

At September 30, Sonida held $148.1 million of unrestricted cash. Debt, net of deferred loan costs, totaled approximately $1.65 billion across current and long-term balances, up from approximately $689.7 million at December 31, 2025.

During the quarter, Sonida drew $372.5 million under a new Ally term loan carrying an interest rate of SOFR plus 185 basis points. The proceeds repaid the previous $122 million Ally term loan, the $170 million bridge facility, and $70 million outstanding under the revolving credit facility. The company also raised $39.2 million of net proceeds through its ATM equity program during Q3 and another $28.8 million in October.

Recent Insider Transactions

The supplied insider data shows three sales and one derivative-security conversion among the latest economically significant transactions. It also lists six zero-price stock awards to the COO and directors during June and July 2026; these awards were not open-market purchases.

The transactions are presented objectively; the data does not establish the insiders’ reasons or views about Sonida’s outlook.

Risks Investors Need to Watch

• Acquisition and integration execution: Sonida is integrating CHP while continuing to acquire communities. Delays, unexpected liabilities, or higher transition costs could limit the expected earnings and NOI benefits.
• Higher leverage and financing exposure: Reported debt increased substantially during the first nine months. Interest rates, covenant compliance, and the ability to refinance or extend maturities could affect future cash flow.
• Limited operating cash generation: Nine-month operating cash flow was approximately break-even despite positive normalized FFO and adjusted EBITDA, increasing the importance of debt and equity financing for acquisitions and capital projects.
• Share dilution: The weighted average share count increased materially, and Sonida continued issuing shares through its ATM program during and after the quarter. Additional issuance could affect future per-share results.

Conclusion

Sonida’s Q3 2026 results showed better same-store operations, with higher occupancy and RevPOR supporting NOI and adjusted EBITDA growth. However, the enlarged portfolio also brought higher depreciation, overhead, transaction costs, leverage, and share issuance, leaving the company with a wider GAAP loss and minimal operating cash flow for the first nine months. Progress on CHP integration, cash conversion, leverage, and the performance of newly acquired communities will be the main operating and financial indicators to monitor.