10-Q · May 8, 2026
American Healthcare REIT (AHR) reported Q1 2026 results showing a decline in revenue to $650.8 million compared to $541 million in the previous year, missing estimates by 5.3%. Meanwhile, diluted earnings per share…
Earnings analysis · 10-Q
AHR earnings analysis
Filed August 7, 2026 · Our reading of the company's report
The latest report
American Healthcare REIT delivered strong Q2 2026 results, with revenue of $674.25 million, operating margin of 8.6%, and diluted EPS of $0.54, up materially from both the prior quarter and prior year. Free cash flow…
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American Healthcare REIT delivered strong Q2 2026 results, with revenue of $674.25 million, operating margin of 8.6%, and diluted EPS of $0.54, up materially from both the prior quarter and prior year. Free cash flow was stable at $42 million, while interest-rate swaps fully offset the modeled effect of a 0.50% rate increase. The main counterweights are $550.0 million of variable-rate debt, $890.070 million of mortgage debt, and significant scheduled maturities; the filing reported no material changes to the 2025 10-K risk factors.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Reported figures
- Earnings per share
- $0.54
What stood out
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Revenue accelerated sequentially and year over year
Revenue was $674.25 million, up $23.25 million, or 3.6%, from $651 million in Q1 2026 and up $131.25 million, or 24.2%, from $543 million in Q2 2025.
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Operating margin rebounded sharply
Gross margin was 21.4%, up from 21.3% in Q1 2026 but unchanged from 21.4% in Q2 2025. Operating margin improved to 8.6% from 5.9% sequentially and was flat versus 8.6% a year earlier.
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EPS materially exceeded consensus
Diluted EPS was $0.54, compared with $0.13 in Q1 2026 and $0.06 in Q2 2025; EPS exceeded the $0.51 consensus estimate by $0.03, or 5.9%.
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Free cash flow remained stable
Free cash flow was $42 million, compared with $43 million in Q1 2026 and $42 million in Q2 2025, indicating stable cash generation despite the higher revenue base.
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Interest-rate exposure is hedged
As of June 30, 2026, all variable-rate loan balances were covered by interest-rate swaps; management stated that a 0.50% increase in market rates would have no impact on annualized interest expense.
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No reported control deficiencies
Disclosure controls were concluded effective at the reasonable-assurance level as of June 30, 2026, and the company reported no changes in internal control that materially affected, or were reasonably likely to materially affect, financial reporting.
What to watch
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Large variable-rate financing exposure
The company had $550.0 million outstanding under lines of credit and a term loan at a weighted average interest rate of 4.97% as of June 30, 2026. Although swaps currently eliminate the modeled impact of a 0.50% rate increase, refinancing and future variable-rate exposure remain material.
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Material debt maturities
Fixed-rate mortgage loans payable totaled $890.070 million, with $568.261 million of principal payments scheduled thereafter and a weighted average effective rate of 3.84%. The debt maturity profile creates refinancing and liquidity risk if capital-market conditions deteriorate.
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Economic and tenant-credit sensitivity
The filing states there were no material changes to previously disclosed risk factors, but it identifies exposure to local and regional economic conditions and tenant and resident creditworthiness, which may affect the ability to refinance debt. The company held a $92.463 million net debt-security investment at June 30, 2026, adding to balance-sheet sensitivity to credit conditions.
Management's outlook
The provided 10-Q text does not include quantitative revenue or EPS guidance. Recent earnings-call coverage indicates the 2026 outlook was lifted, but the numeric outlook is not included in the filing excerpt.
Earlier filings 1
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.