BKD Q3 FY26 earnings call: key takeaways

• Brookdale's third quarter 2026 adjusted EBITDA of $124.3 million met expectations, but occupancy growth fell short, leading to lower full-year guidance (15:40)
• The company emphasized progress on its five-point strategy and ongoing efforts to improve occupancy and operational efficiency. (2:08)

Results vs expectations

What changed since last quarter

• Full-year adjusted EBITDA guidance lowered to $495 to $502 million from prior expectations. (3:40)
• REVPAR growth guidance lowered to 7.4% to 7.9% due to weaker than expected occupancy growth. (3:40)
• Marketing investment increased in the fourth quarter to drive internal lead volume. (12:48)

Guidance

What analysts pressed on

• Whether the macroeconomic environment is impacting occupancy growth and if it's structural. (32:46)
• How the company plans to address the decline in external lead generation and its impact on occupancy. (35:06)
• The sustainability of labor cost improvements and marketing expenses into 2027. (36:34)

In their words

• We now expect full year consolidated occupancy to come in below 83%. Cuso (17:34)
• We feel very strongly that our pricing power, in fact, if anything, may be a little bit stronger this year than it was last year. (43:22)
• The big question mark and where we're leaning into is, how do we continue filling in the shortage of externally generated leads. (52:54)