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Sonida Senior Living, Inc. (SNDA)
NYSE:SNDA
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Sonida Senior Living (SNDA) AI Stock Analysis

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SNDA

Sonida Senior Living

(NYSE:SNDA)

Rating:56Neutral
Price Target:
$27.00
▲(4.94% Upside)
Sonida Senior Living's overall stock score is primarily influenced by its strong earnings call performance, which highlights significant growth and strategic improvements. However, financial performance concerns, including high leverage and negative profitability, weigh heavily on the score. Technical analysis shows positive momentum, but valuation concerns due to negative earnings impact the overall attractiveness.
Positive Factors
Cash Flow Improvement
Year-to-date operating cash flow improved to +$3.8 million compared to -$4.1 million last year, indicating better cash management.
Financial Performance
The company reported Adjusted EBITDA of $13.6M, which was ahead of market expectations of $12.2M.
Occupancy Rates
Enhanced clinical response processes and a 4% YoY increase in 2Q move-ins contributed to spot occupancy that improved to 88.2%.
Negative Factors
Net Loss
Sonida Senior Living, Inc. reported a net loss of -$0.77, although this was better than the market expectation of -$0.95.
Resident Turnover
Unusually high uptick in resident deaths, with resident move-outs exceeding 2Q24 by 18% in the same store portfolio.
Same-Store NOI Growth
Same-store NOI of +1.8% growth may be below expectation and management noted that YoY SS-NOI growth was slower than recent quarters.

Sonida Senior Living (SNDA) vs. SPDR S&P 500 ETF (SPY)

Sonida Senior Living Business Overview & Revenue Model

Company DescriptionSonida Senior Living (SNDA) is a leading operator of senior living communities in the United States, specializing in providing high-quality care and lifestyle options for seniors. The company operates independent living, assisted living, and memory care facilities, focusing on enhancing the quality of life for residents through personalized care services and engaging social activities. With a commitment to creating vibrant communities, Sonida Senior Living aims to support the diverse needs of older adults while fostering a sense of belonging and wellness.
How the Company Makes MoneySonida Senior Living generates revenue primarily through the leasing of living units in its senior living communities, which includes monthly rental fees paid by residents or their families. Additional revenue streams come from various care services offered, such as assistance with daily living activities, medication management, and specialized memory care programs, which may incur extra charges. The company also benefits from partnerships with healthcare providers and local organizations that can enhance service offerings and attract residents. Furthermore, occupancy rates in their facilities and effective cost management play significant roles in optimizing profitability.

Sonida Senior Living Earnings Call Summary

Earnings Call Date:Aug 11, 2025
(Q2-2025)
|
% Change Since: 5.54%|
Next Earnings Date:Nov 18, 2025
Earnings Call Sentiment Positive
The earnings call reflected a strong operational performance with significant growth in EBITDA and record high occupancy rates. Despite challenges with increased resident move-outs and rising labor costs, the company demonstrated effective acquisition integration and strategic investments in sales and marketing. The successful refinancing agreement further strengthens the balance sheet.
Q2-2025 Updates
Positive Updates
Significant Adjusted EBITDA Growth
Adjusted EBITDA grew 26.1% year-over-year in Q2 2025, reflecting strong operational performance.
Record High Occupancy
At the end of July, Sonida achieved a record high occupancy of 88.2% for its same-store portfolio, indicating strong demand and operational efficiency.
Successful Acquisition Integration
The portfolio of 19 operating communities acquired in 2024 reached 82% occupancy, up from 77.5% in November 2024, with ongoing rate growth expected to accelerate NOI growth.
Expansion in Sales and Marketing
Investments in marketing and sales training led to a 16% increase in lead volume in July, with digital leads through non-aggregator channels increasing by 48%.
Debt Refinancing Achievement
Successfully closed on a restated financing agreement with Ally Bank, extending the term and reducing interest rates, improving the financial stability of the company.
Negative Updates
High Resident Move-Outs Due to Deaths
The business experienced an 18% increase in resident move-outs compared to Q2 2024, primarily due to an uptick in resident deaths.
Operating Expense Challenges
Increased labor costs by $2.2 million, driven by wage increases, which slightly outpaced same-store RevPOR growth.
Company Guidance
During the Sonida Senior Living second quarter 2025 earnings call, the company reported substantial growth metrics, despite facing some challenges. Adjusted EBITDA increased by 26.1% year-over-year, while same-store net operating income (NOI) grew by 1.8% year-over-year and nearly 4% sequentially. On a total portfolio basis, NOI improved 5% sequentially. The company experienced an 18% increase in resident move-outs compared to Q2 2024, affecting year-over-year occupancy growth. However, they achieved a record high same-store portfolio occupancy of 88.2% by the end of July 2025. Additionally, RevPAR reached the highest quarterly level in the company's history during Q2 2025. Sonida's acquisition portfolio, including 19 communities acquired in 2024, achieved over 82% occupancy for the first time. The company completed two acquisitions in Q2 2025 and announced a third set to close in Q3, focusing on high-quality assets with stabilized cap rates exceeding 10%. The company also reported a 16% increase in lead volume in July, driven by enhanced digital marketing efforts. On the labor front, investments in wages and benefits resulted in a reduction in employee turnover, supporting stable community operations and contributing to overall growth.

Sonida Senior Living Financial Statement Overview

Summary
Sonida Senior Living is experiencing revenue growth, but profitability and cash flow challenges persist. High leverage and negative equity raise concerns about financial stability. The company must focus on improving operational efficiency and cash flow to enhance financial health and reduce risk.
Income Statement
45
Neutral
Sonida Senior Living has shown a positive revenue growth rate of 7.09% TTM, indicating a recovery trend. However, the company is struggling with profitability, as evidenced by a negative net profit margin of -9.47% and a negative EBIT margin of -1.99% TTM. The gross profit margin is strong at 95.57%, but the high operating expenses are impacting overall profitability.
Balance Sheet
30
Negative
The company has a high debt-to-equity ratio of 6.28 TTM, indicating significant leverage and potential financial risk. The return on equity is negative at -28.40%, reflecting ongoing losses. The equity ratio is low, suggesting limited equity financing and potential solvency concerns.
Cash Flow
40
Negative
Operating cash flow is positive at $12.6 million TTM, but free cash flow remains negative, indicating cash outflows after capital expenditures. The free cash flow to net income ratio is -1.43, highlighting challenges in generating cash relative to net losses. The company needs to improve cash flow management to support operations and reduce financial strain.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue352.13M304.33M255.32M238.43M234.72M383.86M
Gross Profit336.53M271.23M234.22M39.83M38.45M104.29M
EBITDA44.38M78.00M55.15M9.14M4.22M46.55M
Net Income-33.35M-2.06M-21.11M-54.40M125.61M-295.37M
Balance Sheet
Total Assets849.77M841.92M621.46M661.27M728.55M702.83M
Cash, Cash Equivalents and Short-Term Investments14.05M16.99M4.08M16.91M78.69M17.89M
Total Debt677.89M651.39M629.42M671.03M683.68M909.85M
Total Liabilities736.01M712.31M688.01M719.43M734.11M982.10M
Stockholders Equity107.94M123.03M-66.55M-58.16M-46.81M-279.26M
Cash Flow
Free Cash Flow-18.00M-26.95M-7.25M-27.14M-38.71M-22.43M
Operating Cash Flow12.60M-1.78M10.68M-2.58M-28.27M-6.79M
Investing Cash Flow-203.68M-208.92M-16.56M-36.90M-10.44M8.51M
Financing Cash Flow201.00M232.04M-7.11M-22.65M99.42M-15.92M

Sonida Senior Living Technical Analysis

Technical Analysis Sentiment
Positive
Last Price25.73
Price Trends
50DMA
24.87
Positive
100DMA
24.24
Positive
200DMA
24.09
Positive
Market Momentum
MACD
0.31
Negative
RSI
66.42
Neutral
STOCH
78.29
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SNDA, the sentiment is Positive. The current price of 25.73 is above the 20-day moving average (MA) of 25.02, above the 50-day MA of 24.87, and above the 200-day MA of 24.09, indicating a bullish trend. The MACD of 0.31 indicates Negative momentum. The RSI at 66.42 is Neutral, neither overbought nor oversold. The STOCH value of 78.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SNDA.

Sonida Senior Living Risk Analysis

Sonida Senior Living disclosed 37 risk factors in its most recent earnings report. Sonida Senior Living reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Sonida Senior Living Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
71
Outperform
$855.41M32.1911.44%30.58%24.86%
56
Neutral
$476.79M-53.33%31.37%34.94%
53
Neutral
$405.02M-21.72%-0.39%-1408.40%
51
Neutral
$7.82B-0.16-39.78%2.19%21.38%-1.56%
51
Neutral
$378.32M39.18%0.80%-95.01%
47
Neutral
$475.25M-12.03%12.19%-1.59%
46
Neutral
$1.74B-108.91%3.99%-14.74%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SNDA
Sonida Senior Living
26.60
-1.14
-4.11%
BKD
Brookdale Senior Living
7.72
0.57
7.97%
CYH
Community Health
2.76
-2.30
-45.45%
PNTG
Pennant Group
25.17
-9.79
-28.00%
INNV
InnovAge Holding
3.74
-2.59
-40.92%
EHAB
Enhabit, Inc
8.19
-0.02
-0.24%

Sonida Senior Living Corporate Events

Private Placements and FinancingBusiness Operations and Strategy
Sonida Senior Living Secures $137M Loan Agreement
Positive
Aug 13, 2025

On August 7, 2025, Sonida Senior Living, Inc. entered into a $137.0 million senior secured term loan agreement with Ally Bank, amending its previous loan agreement from March 2022. This new loan will support 19 communities, including a newly acquired one in Alpharetta, and offers potential additional funding subject to certain financial conditions. The loan, with a 36-month maturity and a variable interest rate, reflects Sonida’s strategic financial management to enhance its operational capabilities and expand its market presence.

The most recent analyst rating on (SNDA) stock is a Hold with a $25.00 price target. To see the full list of analyst forecasts on Sonida Senior Living stock, see the SNDA Stock Forecast page.

M&A TransactionsBusiness Operations and StrategyFinancial Disclosures
Sonida Senior Living Reports Strong Q2 2025 Results
Positive
Aug 11, 2025

Sonida Senior Living reported strong financial results for the second quarter of 2025, with a significant increase in resident revenue by 29.7% compared to the same period in 2024. The company also made strategic acquisitions in Atlanta and Tampa, enhancing its market presence and positioning for future growth. Despite a net loss of $1.6 million, this was a marked improvement from the $9.8 million loss in the previous year, highlighting effective cost management and operational improvements. The company’s acquisition strategy and favorable industry conditions are expected to drive continued success in the latter half of the year.

The most recent analyst rating on (SNDA) stock is a Hold with a $25.00 price target. To see the full list of analyst forecasts on Sonida Senior Living stock, see the SNDA Stock Forecast page.

Executive/Board ChangesShareholder Meetings
Sonida Senior Living Approves Key Proposals at Meeting
Positive
Jun 12, 2025

At the Annual Meeting of Stockholders held on June 10, 2025, Sonida Senior Living, Inc. announced the approval of three key proposals. Stockholders elected Lilly H. Donohue, Benjamin P. Harris, and David W. Johnson as directors for three-year terms, ratified the appointment of BDO USA, P.C. as independent auditors for the fiscal year ending December 31, 2025, and approved the executive compensation on an advisory basis. These decisions are expected to influence the company’s governance and financial oversight positively.

The most recent analyst rating on (SNDA) stock is a Hold with a $25.00 price target. To see the full list of analyst forecasts on Sonida Senior Living stock, see the SNDA Stock Forecast page.

M&A TransactionsBusiness Operations and Strategy
Sonida Senior Living Completes Two Key Acquisitions
Positive
Jun 9, 2025

On June 9, 2025, Sonida Senior Living announced the completion of two acquisitions of senior living communities in Atlanta, Georgia, and Tampa, Florida, each for $11 million. These acquisitions are part of Sonida’s strategy to expand and upgrade its portfolio by acquiring high-quality communities at discounts to replacement costs. The Atlanta acquisition, finalized on June 1, 2025, adds an upscale 88-unit community to Sonida’s portfolio, enhancing its presence in the high-growth Alpharetta area. The Tampa acquisition, completed on May 30, 2025, involves a 64-unit memory care facility in Tarpon Springs, complementing Sonida’s central Florida assets. Both acquisitions are expected to yield a double-digit cap rate upon stabilization, supporting Sonida’s growth strategy and market positioning.

The most recent analyst rating on (SNDA) stock is a Hold with a $25.00 price target. To see the full list of analyst forecasts on Sonida Senior Living stock, see the SNDA Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 14, 2025