Capital expenditures totaled $94 million, and depreciation and amortization were $119 million.
EBIT margin increased 50 basis points to 22.8% due to gross margin improvement and operating expense leverage.
Free cash flow was strong at $327 million, supported by earnings growth and working capital improvements.
Gross margin improved by 20 basis points to 45.3%, with positive price and productivity gains offsetting inflation and tariff costs.
Net income from continuing operations was $231.2 million, with adjusted EPS of $2.34, a 15% increase year-over-year.
The company announced its 20th consecutive year of dividend increases, raising the quarterly dividend by 10% to $0.63.
Total debt was reduced to $1.9 billion, with a gross debt to EBITDA ratio of 1.2x.
Total reported revenue grew 9% in Q1 2026, with constant currency organic revenue growth of 8%, driven by volume and 230 basis points of price increases.
Adjusted annualized leverage improved from 9.7x to 9.3x during the quarter.
Adjusted EBITDA grew 19.7% quarter-over-quarter and 23.4% year-to-date, reaching $117 million in Q2, exceeding internal and analyst expectations.
Adjusted free cash flow was positive $20 million in Q2 versus negative $6 million in Q2 2024, marking the second consecutive quarter of positive free cash flow.
Brookdale delivered solid Q2 2025 results with same community weighted average occupancy at 80.7%, up 190 basis points year-over-year.
Consolidated RevPAR grew 5.1% year-over-year, driven by occupancy growth and a 2.4% increase in resident rate (RevPOR).
General and administrative expenses were reduced by $850,000 quarter-over-quarter and $1.2 million year-over-year, excluding certain costs.
Dafinchi