SBRA earnings analysis
What we found in SBRA's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Sabra delivered strong top-line expansion in Q2, with revenue of $235.866 million and managed senior-housing revenue growth of $49.817 million year over year; AFFO per diluted share improved to $0.39 from $0.37. However, a $102.445 million loan-loss provision tied principally to the $100.0 million RCA loan write-off resulted in a GAAP loss of $0.10 per diluted share, down from $0.16 in Q1 and $0.27 a year ago. Liquidity of approximately $1.3 billion and $184.2 million of six-month operating cash flow support ongoing acquisitions and capital commitments, but credit losses, higher managed-portfolio costs, and forward-equity dilution temper the outlook.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue accelerated to $235.9 million
- Q2 revenue was $235.866 million, up $13.866 million, or 6.2%, from $222 million in Q1 2026 and up $56.906 million, or 31.8%, from $178.960 million in Q2 2025. Growth was driven by $49.817 million of higher resident fees and services.
- Managed senior housing drove growth
- Resident fees and services rose 63% year over year to $128.802 million. The increase included $34.9 million from 18 acquired managed communities, $10.6 million from five communities transitioned to managed operations, and $5.4 million from higher occupancy and rates.
- AFFO per share improved to $0.39
- AFFO attributable to Sabra was $99.507 million, or $0.39 per diluted share, versus $89.200 million, or $0.37 per share, a year earlier. This contrasts with a GAAP net loss attributable to Sabra of $25.202 million.
- Operating cash flow covered investment spend
- Operating cash flow was $184.2 million for the first six months of 2026, while capital expenditures were $25.2 million. Cash flow less capital expenditures was approximately $159.0 million, and capex represented 13.7% of operating cash flow.
- Liquidity remains substantial
- Liquidity totaled approximately $1.3 billion at June 30, comprising $231.6 million of unrestricted cash, $682.5 million of revolver availability, and $411.8 million associated with forward-sale agreements. Management states these sources are sufficient for expected requirements over the next 12 months.
- Portfolio recycling and investment continue
- Sabra acquired ten facilities, bed rights/land, and managed-community operations for $292.5 million in the first six months, while receiving $93.6 million of net real-estate sale proceeds. It also expects approximately $74 million of its $75 million triple-net capital commitment to be spent in the next 12 months and generate incremental rent.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Large credit provision drove GAAP loss
- GAAP diluted EPS was a loss of $0.10, versus earnings of $0.16 in Q1 2026 and $0.27 in Q2 2025. The principal driver was a $102.445 million Q2 provision for loan losses and other reserves.
- RCA loan settlement crystallized $100 million write-off
- The company accepted $200.0 million in full settlement of a $300.0 million Recovery Centers of America mortgage loan, resulting in a $100.0 million write-off. This illustrates remaining borrower-credit and recoverability risk.
- Labor and financing costs increased
- Senior-housing-managed operating expenses increased $31.212 million, or 54%, to $88.616 million, including a $1.4 million increase in employee compensation from higher labor rates and staffing. Interest expense also increased $2.231 million, or 8%, to $29.779 million.
- Forward equity arrangements create dilution exposure
- At June 30, 2026, 21.4 million shares remained subject to ATM forward-sale agreements at an initial weighted-average price of $19.24 per share. Settlement of these arrangements could expand the share base, although they represent $411.8 million of liquidity.
- No formal risk-factor update; reimbursement exposure remains
- No material changes to risk factors were reported relative to the 2025 Form 10-K. However, 31.9% of six-month revenue was derived directly or indirectly from skilled nursing/transitional-care facilities, which remain exposed to reimbursement and operator conditions.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $-0.1
- Segment
- Rental and related revenue: $101.308 million, up $1.485 million (1%) year over year.
- Segment
- Resident fees and services: $128.802 million, up $49.817 million (63%) year over year.
- Segment
- Interest and other income: $5.756 million, down $4.586 million (44%) year over year.
What they said about what is next.
The 10-Q does not provide or update a quantitative revenue or EPS outlook; the filing directs readers to liquidity and capital-resource expectations rather than formal earnings guidance.
The filing reads about the same as the one before it.
What came before.
- 10-Q · April 29, 2026
- Sabra Health Care REIT reported mixed results for Q1 2026 with revenue of $221 million, a 20% increase from Q1 2025, driven by a notable rise in resident fees and services. Gross margins tightened with a reported gross…
- 10-K · February 12, 2026
- Sabra presents a concentrated, healthcare-focused REIT strategy emphasizing growth in purpose-built and stabilized healthcare real estate while diversifying by tenant, facility type and geography. As of December 31,…
- 10-Q · August 4, 2025
- Sabra reported Q2 revenue of $189,150,000, up $13,009,000 (7.4%) versus Q2 2024's $176,141,000, and delivered diluted EPS of $0.27 (vs $0.10 prior‑year). Income before JV and tax rose to $65,207,000 (operating margin…
- 10-Q · May 5, 2025
- Sabra reported first quarter 2025 revenue of $183,543,000 (up from $166,747,000 in Q1 2024) and diluted EPS of $0.17 (up from $0.11). Operating performance generated strong cash flow with net cash provided by operating…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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