Form 10-Q - Quarterly report [Sections 13 or 15(d)]

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q

(Mark One)


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2025


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number: 1-13445

Sonida Senior Living, Inc.

(Exact Name of Registrant as Specified in its Charter)


Delaware						75-2678809
(State or Other Jurisdiction of Incorporation or Organization)						(I.R.S. Employer Identification No.)


14755 Preston Road, Suite 810, Dallas, Texas						75254
(Address of principal executive offices)						(Zip code)

(972) 770-5600

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading
Symbol(s)

Name of exchange on which registered

Common Stock, $0.01 par value per share

SNDA

New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No ¨

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

Accelerated filer

Non-accelerated filer

Smaller reporting company

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Indicate by a check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No x

As of May 8, 2025, the Registrant had 18,865,410 shares of common stock outstanding.

Sonida Senior Living, Inc.

Form 10-Q Table of Contents

For the Period Ended March 31, 2025


			Page Number
Part I. Financial Information
Item 1. Financial Statements
Condensed Consolidated Balance Sheets — March 3 1 , 202 5 (Unaudited) and December 31, 202 4			5
Condensed Consolidated Statements of Operations — Three Months Ended March 3 1 , 202 5 and 202 4 (Unaudited)			6
Condensed Consolidated Statements of Changes in Equity (Deficit) — Three Months Ended March 31 , 202 5 and 202 4 (Unaudited)			7
Condensed Consolidated Statements of Cash Flows — Three Months Ended March 31 , 202 5 and 202 4 (Unaudited)			8
Notes to Condensed Consolidated Financial Statements (Unaudited)			9
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations			26
Item 3. Quantitative and Qualitative Disclosures About Market Risk			30
Item 4. Controls and Procedures			30
Part II. Other Information			32
Item 1. Legal Proceedings			32
Item 1A. Risk Factors			32
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds			32
Item 3. Defaults Upon Senior Securities			32
Item 4. Mine Safety Disclosures			32
Item 5. Other Information			32
Item 6. Exhibits			33
Signatur es			33

Cautionary Note Regarding Forward-Looking Statements

Certain information contained in this Quarterly Report on Form 10-Q of Sonida Senior Living, Inc. (together with its consolidated subsidiaries, “Sonida,” “we,” “our,” “us,” or the “Company”) constitutes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact included in this Quarterly Report on Form 10-Q, including, without limitation, those relating to the Company’s future business prospects and strategies, financial results, working capital, liquidity, capital needs and expenditures, interest costs, insurance availability and contingent liabilities, are forward-looking statements. Forward-looking statements can be identified by the use of forward-looking terminology such as “may,” “will,” “would,” “intend,” “could,” “believe,” “expect,” “anticipate,” “project,” “plans,” “estimate” or “continue” or the negatives thereof or other variations thereon or comparable terminology.

Forward-looking statements are subject to certain risks and uncertainties that could cause the Company’s actual results and financial condition to differ materially from those indicated in the forward-looking statements, including, among others, the risks, uncertainties and factors set forth under “Item. 1A. Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2024, filed with the Securities and Exchange Commission (the “SEC”) on March 17, 2025, as well as “Item. 1A. Risk Factors” in this Quarterly Report on Form 10-Q, and also include the following:

•the Company’s ability to generate sufficient cash flows from operations, proceeds from equity issuances and debt financings, and proceeds from the sale of assets to satisfy its short- and long-term debt obligations and to fund the Company’s acquisitions and capital improvement projects to expand, redevelop, and/or reposition its senior living communities;

•elevated market interest rates that increase the cost of certain of our debt obligations;

•increased competition for, or a shortage of, skilled workers, including due to general labor market conditions, along with wage pressures resulting from such increased competition, low unemployment levels, use of contract labor, minimum wage increases and/or changes in immigration and overtime laws;

•the Company’s ability to obtain additional capital on terms acceptable to it;

•the Company’s ability to extend or refinance its existing debt as such debt matures;

•the Company’s compliance with its debt agreements, including certain financial covenants, and the risk of cross-default in the event such non-compliance occurs;

•the Company’s ability to complete acquisitions and dispositions upon favorable terms or at all, including the possibility that the expected benefits and the Company’s projections related to such acquisitions may not materialize as expected;

•the risk of oversupply and increased competition in the markets which the Company operates;

•the Company’s ability to improve and maintain internal controls over financial reporting and remediate the identified material weakness discussed in Item 4 of Part I of this Quarterly Report on Form 10-Q;

•the cost and difficulty of complying with applicable licensure, legislative oversight, or regulatory changes;

•changes in reimbursement rates, methods or timing of payment under government reimbursement programs, including Medicaid;

•risks associated with current global economic conditions and general economic factors such as elevated labor costs due to shortages of medical and non-medical staff, competition in the labor market, increased costs of salaries, wages and benefits, and immigration laws, the consumer price index, commodity costs, fuel and other energy costs, supply chain disruptions, increased insurance costs, tariffs, elevated interest rates, and tax rates;

•the impact from or the potential emergence and effects of a future epidemic, pandemic, outbreak of infectious disease or other health crisis;

•the Company’s ability to maintain the security and functionality of its information systems, to prevent a cybersecurity attack or breach, and to comply with applicable privacy and consumer protection laws, including HIPAA; and

•changes in accounting principles and interpretations.

We caution you that the risks, uncertainties and other factors referenced above may not contain all of the risks, uncertainties and other factors that are important to you. In addition, we cannot assure you that we will realize the results, benefits or outcomes that we expect or anticipate or, even if substantially realized, that they will result in the consequences or affect us or our business in the way expected. All forward-looking statements in this Quarterly Report on Form 10-Q apply only as of the date

made and are expressly qualified in their entirety by the cautionary statements included in this Quarterly Report on Form 10-Q. Except as required by applicable law, we undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise.

Part I. FINANCIAL INFORMATION

Item 1. Financial Statements

Sonida Senior Living, Inc.

Condensed Consolidated Balance Sheets

(in thousands, except per share amounts)


	March 31, 2025		December 31, 2024
	(unaudited)
Assets:
Current assets
Cash and cash equivalents	$	13,988	$	16,992
Restricted cash	18,429		22,095
Accounts receivable, net of allowance for credit losses of $8.6 million and $7.9 million, respectively	16,463		18,965

Prepaid expenses and other assets	3,829		4,634
Derivative assets	975		1,403

Total current assets	53,684		64,089
Property and equipment, net	735,471		739,884

Investment in unconsolidated entity	10,221		10,943
Intangible assets, net	22,123		24,526
Other assets, net	2,980		2,479
Total assets (a)	$	824,479	$	841,921
Liabilities:
Current liabilities
Accounts payable	$	6,107	$	9,031
Accrued expenses	43,060		45,024
Current portion of debt, net of deferred loan costs	14,621		15,486
Deferred income	6,404		5,361
Federal and state income taxes payable	312		243
Other current liabilities	535		470



Total current liabilities	71,039		75,615
Long-term debt, net of deferred loan costs	636,273		635,904

Other long-term liabilities	1,201		793
Total liabilities (a)	708,513		712,312
Commitments and contingencies (Note 12)
Redeemable preferred stock:
Series A convertible preferred stock, $0.01 par value; 41 shares authorized, 41 shares issued and outstanding as of March 31, 2025 and December 31, 2024	51,249		51,249
Equity:
Sonida’s shareholders’ equity:
Preferred stock, $0.01 par value:
Authorized shares - 15,000 as of March 31, 2025 and December 31, 2024; none issued or outstanding, except Series A convertible preferred stock as noted above	—		—
Common stock, $0.01 par value:
Authorized shares - 30,000 as of March 31, 2025 and December 31, 2024; 18,878 and 18,992 shares issued and outstanding as of March 31, 2025 and December 31, 2024, respectively	189		190
Additional paid-in capital	491,334		491,819
Retained deficit	(432,753)		(420,224)
Total Sonida shareholders’ equity	58,770		71,785
Noncontrolling interest:	5,947		6,575
Total equity	64,717		78,360
Total liabilities, redeemable preferred stock and equity	$	824,479	$	841,921

(a) The condensed consolidated balance sheets include the following amounts related to our consolidated Variable Interest Entity (VIE): $0.8 million and $5.0 million of Cash and cash equivalents; $1.7 million and $1.5 million of Restricted cash; $0.5 million and $0.3 million of Accounts receivable, net; and $27.9 million and $27.8 million of Property and equipment, net; $4.2 million and $4.7 million of Intangible assets, net; $2.6 million and $5.4 million of Accounts payable; $0.6 million and $0.9 million of Accrued expenses; $0.3 million and $0.2 million of Deferred income; $21.3 million and $21.3 million of Debt, net of deferred loan costs; and $0.2 million and $0.2 million of Other long-term liabilities as of March 31, 2025 and December 31, 2024, respectively.

See Notes to Condensed Consolidated Financial Statements.

Sonida Senior Living, Inc.

Condensed Consolidated Statements of Operations (Unaudited)

(in thousands, except per share data)


	Three Months Ended March 31,
	2025		2024
Revenues:
Resident revenue	$	79,255	$	60,737
Management fees	1,061		594
Managed community reimbursement revenue	11,607		6,107
Total revenues	91,923		67,438
Expenses:
Operating expense	60,414		46,317
General and administrative expense	8,472		6,812
Transaction, transition and restructuring costs	610		399
Depreciation and amortization expense	13,686		9,935

Managed community reimbursement expense	11,607		6,107
Total expenses	94,789		69,570
Other income (expense):
Interest income	242		139
Interest expense	(9,446)		(8,591)


Gain on extinguishment of debt, net	—		38,148

Loss from equity method investment	(330)		—
Other expense, net	(550)		(479)
Income (loss) before provision for income taxes	(12,950)		27,085
Provision for income taxes	(75)		(66)
Net income (loss)	(13,025)		27,019
Less: Net loss attributable to noncontrolling interests	496		—
Net income (loss) attributable to Sonida shareholders	(12,529)		27,019

Dividends on Series A convertible preferred stock	(1,409)		—
Undeclared dividends on Series A convertible preferred stock	—		(1,335)
Undistributed net income allocated to participating securities	—		(2,849)
Net income (loss) attributable to common shareholders	$	(13,938)	$	22,835

Weighted average common shares outstanding — basic	18,047		9,861
Weighted average common shares outstanding — diluted	18,047		10,562

Basic net income (loss) per common share	$	(0.77)	$	2.32
Diluted net income (loss) per common share	$	(0.77)	$	2.16

See Notes to Condensed Consolidated Financial Statements.

Sonida Senior Living, Inc.

Condensed Consolidated Statements of Changes in Equity (Deficit) (Unaudited)

(in thousands)


	Sonida’s Shareholders
	Common Stock			Additional Paid-In Capital		Retained Deficit		Noncontrolling Interests
	Shares	Amount								Total
Balance as of December 31, 2023	8,178	$	82	$	302,992	$	(418,165)	$	—	$	(115,091)
Issuance of common stock, net of issuance costs	5,026	50		47,591		—		—		47,641
Undeclared dividends on Series A convertible preferred stock	—	—		(1,335)		—		—		(1,335)
Stock-based plan activity	(7)	—		(213)		—		—		(213)
Non-cash stock-based compensation	—	—		575		—		—		575
Net income	—	—		—		27,019		—		27,019
Balance as of March 31, 2024	13,197	$	132	$	349,610	$	(391,146)	$	—	$	(41,404)














	Sonida’s Shareholders
	Common Stock			Additional Paid-In Capital		Retained Deficit		Noncontrolling Interests
	Shares	Amount								Total
Balance as of December 31, 2024	18,992	$	190	$	491,819	$	(420,224)	$	6,575	$	78,360
Capital distributions to noncontrolling interest	—	—		—		—		(132)		(132)

Series A convertible preferred stock dividends	—	—		(1,409)		—		—		(1,409)

Stock-based plan activity	(114)	(1)		(49)		—		—		(50)
Non-cash stock-based compensation	—	—		973		—		—		973

Net loss	—	—		—		(12,529)		(496)		(13,025)
Balance as of March 31, 2025	18,878	$	189	$	491,334	$	(432,753)	$	5,947	$	64,717

See Notes to Condensed Consolidated Financial Statements.

Sonida Senior Living, Inc.

Condensed Consolidated Statements of Cash Flows (Unaudited)

(in thousands)


	Three Months Ended March 31,
	2025		2024
Cash flows from operating activities:
Net income (loss)	$	(13,025)	$	27,019
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization	13,686		9,935
Amortization of deferred loan costs	421		324


Gain on sale of assets, net	—		(192)


Loss on derivative instruments, net	490		527
Gain on extinguishment of debt, net	—		(38,148)
Loss from equity method investment	330		—
Provision for credit losses	695		397
Non-cash stock-based compensation expense	973		575
Other non-cash items	179		(3)
Changes in operating assets and liabilities:
Accounts receivable, net	1,807		(2,726)

Prepaid expenses	805		1,063
Other assets, net	(62)		(41)
Accounts payable and accrued expenses	(3,476)		(3,123)

Federal and state income taxes payable	69		73
Deferred income	1,043		214

Customer deposits	(112)		1
Net cash provided by (used in) operating activities	3,823		(4,105)
Cash flows from investing activities:

Return of investment in unconsolidated entity	392		—


Capital expenditures	(8,337)		(5,762)
Proceeds from sale of assets	—		631
Net cash used in investing activities	(7,945)		(5,131)
Cash flows from financing activities:
Proceeds from issuance of common stock, net of issuance costs	—		47,641
Proceeds from notes payable	—		24,830
Repayments of notes payable	(918)		(41,999)






Distributions to noncontrolling investors in joint ventures	(132)		—
Purchase of derivative assets	—		(554)
Dividends paid on Series A convertible preferred stock	(1,409)		—
Deferred loan costs paid	(38)		(549)
Other financing costs	(51)		(220)
Net cash provided by (used in) financing activities	(2,548)		29,149
Increase (decrease) in cash and cash equivalents and restricted cash	(6,670)		19,913
Cash, cash equivalents, and restricted cash at beginning of period	39,087		17,750
Cash, cash equivalents, and restricted cash at end of period	$	32,417	$	37,663
Supplemental Disclosures of Cash Flow Information
Cash paid during the period for:
Interest	$	8,806	$	6,353
Income taxes paid (refunds received), net	$	7	$	(7)
Non-cash investing and financing activities:

Undeclared dividends on Series A convertible preferred stock	$	—	$	1,335
Non-cash additions of property and equipment	$	1,412	$	498
Non-cash right-of-use assets	$	643	$	—

See Notes to Condensed Consolidated Financial Statements.

Sonida Senior Living, Inc.

Notes to Condensed Consolidated Financial Statements

(Unaudited)

1. Basis of Presentation

Organization and Business

Sonida Senior Living, Inc., a Delaware corporation (together with its subsidiaries, the “Company,” “we,” “our,” “us,” or “Sonida”), is a leading owner, operator and investor in independent living, assisted living and memory care communities and services for senior adults in the United States in terms of resident capacity. The Company owns, operates, manages and invests in senior housing communities throughout the United States. As of March 31, 2025, the Company owned, managed or invested in 94 senior housing communities in 20 states with an aggregate capacity of approximately 10,000 residents1, including 81 owned senior housing communities (including four owned through joint venture investments in consolidated entities, four owned through a joint venture investment in an unconsolidated entity, and one unoccupied) and 13 communities that the Company manages on behalf of a third-party.

Principles of Consolidation

The accompanying condensed consolidated financial statements include the financial statements of Sonida Senior Living, Inc., its wholly-owned subsidiaries, and other entities in which the Company has a controlling financial interest. All material intercompany balances and transactions have been eliminated in consolidation. The Company reports investments in unconsolidated entities over whose operating and financial policies it has the ability to exercise significant influence under the equity method of accounting.

The Company evaluates its potential variable interest entity (“VIE”) relationships under certain criteria as provided for in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 810, Consolidation (“ASC 810”). ASC 810 broadly defines a VIE as an entity with one or more of the following characteristics: (a) the total equity investment at risk is insufficient to finance the entity's activities without additional subordinated financial support; (b) as a group, the holders of the equity investment at risk lack (i) the ability to make decisions about the entity's activities through voting or similar rights, (ii) the obligation to absorb the expected losses of the entity, or (iii) the right to receive the expected residual returns of the entity; or (c) the equity investors have voting rights that are not proportional to their economic interests, and substantially all of the entity's activities either involve, or are conducted on behalf of, an investor that has disproportionately few voting rights. The Company performs this evaluation on an ongoing basis and consolidates any VIEs for which the Company is determined to be the primary beneficiary, as determined by the Company's power to direct the VIEs activities and the obligation to absorb its losses or the right to receive its benefits, which are potentially significant to the VIE. As of March 31, 2025, the Company has a joint venture, Stone JV LLC (“Stone JV”) which is treated as an unconsolidated entity. See “Note 3–Investments.”

As of March 31, 2025, the Company was a 51% owner in two joint ventures (collectively, the “Palatine JVs”) with affiliates of Palatine Capital Partners. The Company has evaluated its investment in the Palatine JVs under ASC 810. The Company has determined that it has the power to direct the activities of the VIE that most significantly impact its economic performance and is the primary beneficiary of the VIE in accordance with ASC 810. Accordingly, the Company has consolidated the activity of the Palatine JVs into its consolidated financial statements for the periods ended March 31, 2025 and December 31, 2024.

Interim Unaudited Financial Information

The accompanying condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2024. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been omitted from this Quarterly Report on Form 10-Q pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). The results for the interim periods shown in this report are not necessarily indicative of future financial results. In the opinion of management, the accompanying unaudited condensed consolidated financial statements include all adjustments, including normal recurring items, necessary to present fairly our condensed consolidated financial position as of

1 Capacity disclosures in these footnotes to the condensed consolidated financial statements are outside the scope of our independent registered accounting firm’s review.

March 31, 2025 and December 31, 2024, and our condensed consolidated results of operations and cash flows for the periods ended March 31, 2025 and 2024.

Reclassifications

Certain amounts previously reflected in the prior year condensed consolidated financial statements have been reclassified to conform to our March 31, 2025 presentation. The condensed consolidated statements of operations as of March 31, 2024 reflects reclassifying transaction, transition and restructuring costs from “General and administrative expense” to “Transaction, transition and restructuring costs.”

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. These estimates include such items related to the accounting for: income taxes, including assessments of probabilities of realization of income tax benefits; other contingencies; allowances for uncollectible accounts receivable; impairment of long-lived assets, including applicable cash flow projections, holding periods and fair value evaluations; stock-based compensation; fair values of assets and liabilities acquired in asset acquisitions, fair values of our equity method investments; and depreciation and amortization, including determination of estimated useful lives. Actual results could differ from those estimates.

2. Summary of Significant Accounting Policies

Cash, Cash Equivalents, and Restricted Cash

The Company considers all highly liquid investments with original maturities of three months or less at the date of acquisition to be cash equivalents. The Company has deposits in banks that exceed Federal Deposit Insurance Corporation insurance limits. Management believes that credit risk related to these deposits is minimal. Restricted cash consists of reserve accounts for property insurance, real estate taxes, capital expenditures, derivatives, and debt service required by certain loan agreements. In addition, restricted cash includes deposits required by certain counterparties as collateral pursuant to letters of credit which must remain so long as the letters of credit are outstanding, which are subject to renewal annually.

The following table sets forth our cash, cash equivalents, and restricted cash (in thousands):


	March 31, 2025		December 31, 2024
Cash and cash equivalents	$	13,988	$	16,992
Restricted cash:
Property tax and insurance reserves	4,564		6,156
Lender reserves	3,345		6,013
Capital expenditures reserves	6,605		6,210
Escrow deposit	200		—
Deposits pursuant to outstanding letters of credit	3,524		3,524
Other reserves	191		192
Total restricted cash	18,429		22,095
Total cash, cash equivalents, and restricted cash	$	32,417	$	39,087

Long-Lived Assets

Property and equipment are stated at cost and depreciated on a straight-line basis over the estimated useful lives of the assets. At each balance sheet date, the Company reviews the carrying value of its property and equipment to determine if facts and circumstances suggest that they may be impaired or that the depreciation period may need to be changed. The Company considers internal factors such as net operating losses along with external factors relating to each asset, including contract changes, local market developments, and other publicly available information to determine whether impairment indicators exist.

If an indicator of impairment is identified, recoverability of an asset group is assessed by comparing its carrying amount to the estimated future undiscounted net cash flows expected to be generated by the asset group through operation or disposition, calculated utilizing the lowest level of identifiable cash flows. If this comparison indicates that the carrying amount of an asset group is not recoverable, the Company estimates fair value of the asset group and records an impairment loss when the carrying

amount exceeds fair value. There were no impairments on long-lived assets during the three months ended March 31, 2025 and 2024.

In evaluating our long-lived assets for impairment, we undergo continuous evaluations of property level performance and real estate trends, and management makes several estimates and assumptions, including, but not limited to, the projected date of disposition, estimated sales price, and future cash flows of each property during our estimated holding period. If our analysis or assumptions regarding the projected cash flows expected to result from the use and eventual disposition of our properties change, we incur additional costs and expenses during the holding period, or our expected hold periods change, we may incur future impairment losses. See “Note 4–Property and Equipment, net.”

Leases

We determine if a contract contains a lease at its inception based on whether or not the Company has the right to control the asset during the contract period and other facts and circumstances. We are the lessee in a lease contract when we obtain the right to control the asset. Operating lease right-of-use (“ROU”) assets represent our right to use an underlying asset for the lease term and are included in other assets, net in our condensed consolidated balance sheet. Operating lease liabilities represent our obligation to make lease payments arising from the lease and are included in other current liabilities and other long-term liabilities in our condensed consolidated balance sheet. Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at the commencement date. When determining the lease term, we include renewal or termination options that we are reasonably certain to exercise. Leases with a lease term of 12 months or less at inception are not recorded in our condensed consolidated balance sheet. Operating lease expense is recognized on a straight-line basis over the lease term in our condensed consolidated statement of operations. As the rates implicit in our leases are not readily determinable, we use our local incremental borrowing rate based on the information available at the commencement date in determining the present value of future payments. When our contracts contain lease and non-lease components, we account for both components as a single lease component.

Acquisitions

We make certain judgments to determine whether a transaction should be accounted for as a business combination or an asset acquisition. These judgments include the assessment of the inputs, processes, and outputs associated with an acquired set of activities and whether the fair value of total assets acquired is concentrated to a single identifiable asset or group of similar assets. We account for a transaction as a business combination when the assets acquired include inputs and one or more substantive processes that, together, significantly contribute to the ability to create outputs and the total fair value of the assets acquired are not concentrated to a single identifiable asset or group of similar assets. Otherwise, we account for the transaction as an asset acquisition.

Upon the acquisition of new communities accounted for as an acquisition of assets, we recognize the assets acquired and the liabilities assumed as of the acquisition date, measured at their relative fair values using Level 3 inputs at the date of acquisition including estimates of appropriate discount rates and capitalization rate once we have determined the fair value of each of these assets and liabilities. Relative fair values may be based on appraisals, internal analyses of recently acquired and existing comparable properties in the Company’s portfolio, other market data, and internal marketing and leasing activities. The acquisition date is the date on which we obtain control of the real estate property. The assets acquired and liabilities assumed consist of land, inclusive of associated rights, buildings, assumed debt, and identified intangible assets and liabilities. Above-market and below-market in-place lease values of acquired properties are recorded based on the net present value of the difference between (i) the contractual amounts to be paid pursuant to the in-place leases and (ii) Sonida’s estimate of the fair market lease rates for the corresponding in-place lease measured over a period equal to the remaining non-cancelable terms of the leases (including the below-market fixed-rate renewal period, if applicable). Favorable above-market in-place leases represent the value of the contractual monthly rental payments that are more than the current market rent at communities as acquired in recent acquisitions. Favorable above-market in-place leases are amortized to depreciation and amortization expense on a straight-line basis over their estimated remaining lease terms and are included in intangible assets, net on the accompanying consolidated balance sheets. Unfavorable below-market in-place leases represent the value of the contractual monthly rental payments that are less than the current market rent at communities as acquired in recent acquisitions. Unfavorable below-market in-place leases are amortized to depreciation and amortization expense on a straight-line basis over their estimated remaining lease terms, and are included in other long-term liabilities on the accompanying consolidated balance sheets.

Investment in Unconsolidated Entities

The Company reports investments in unconsolidated entities that it has the ability to exercise significant influence under the equity method of accounting. The initial carrying amount of investments in unconsolidated entities is based on the amount paid to purchase the investment. The Company's reported share of earnings from an unconsolidated entity is adjusted for the impact, if any, of basis differences between its carrying amount of the equity investment and its share of the investment’s underlying assets. Distributions received from an investee are recognized as a reduction in the carrying amount of the investment.

The Company evaluates the realization of its investments in ventures accounted for using the equity method if circumstances indicate that the Company's investments are other than temporarily impaired. A current fair value of an investment that is less than its carrying amount may indicate a loss in value of the investment. If the Company determines that an equity method investment is other than temporarily impaired, it is recorded at its fair value with an impairment charge recognized for the difference between its carrying amount and fair value.

Revenue Recognition

Resident revenue consists of fees for basic housing and certain support services and fees associated with additional housing and expanded support requirements such as assisted living care, memory care, and ancillary services. Basic housing and certain support services revenue is recorded when services are rendered, and amounts billed are due from residents in the period in which the rental and other services are provided. Residency agreements are generally short term in nature with durations of one year or less and are typically terminable by either party, under certain circumstances, upon providing 30 days’ notice, unless state law provides otherwise, with resident fees billed monthly in advance. Revenue for certain ancillary services is recognized as services are provided, and includes fees for services such as medication management, daily living activities, beautician/barber, laundry, television, guest meals, pets, and parking, which are generally billed monthly in arrears.

The Company’s senior housing communities have residency agreements that generally require the resident to pay a community fee and other amounts prior to moving into the community, which are initially recorded by the Company as deferred revenue. Community fees are recognized evenly over the term of the residency agreements which is generally 12 months. The Company had contract liabilities for deferred fees paid by our residents prior to the month housing and support services were to be provided totaling $6.4 million and $5.4 million, respectively, which is reported as deferred income within current liabilities of the Company’s condensed consolidated balance sheets as of March 31, 2025 and December 31, 2024. As of March 31, 2025, $4.9 million of deferred revenue has been recognized from the prior year. As of March 31, 2024, $3.6 million of deferred revenue was recognized from the year ended December 31, 2023.

Revenues from Medicaid programs accounted for 8.4% and 11.6% of the Company’s revenue for the three months ended March 31, 2025 and 2024, respectively. Resident revenues for Medicaid residents were recorded at the reimbursement rates as the rates were set prospectively by the applicable state upon the filing of an annual cost report. None of the Company’s communities were providers of services under the Medicare program for the three months ended March 31, 2025 and 2024.

Laws and regulations governing the Medicaid program are complex and subject to interpretation. The Company believes that it is in compliance with all applicable laws and regulations and is not aware of any pending or threatened investigations involving allegations of potential wrongdoing that would have a material effect on its condensed consolidated financial statements. While no such regulatory inquiries have been made, compliance with such laws and regulations can be subject to future government review and interpretation as well as significant regulatory action including fines, penalties, and exclusion from the Medicaid program.

The Company has management agreements whereby it manages certain communities on behalf of third-party owners and certain community investments under contracts that provide for periodic management fee payments to the Company. The Company has determined that all community management activities are a single performance obligation, which is satisfied over time as the services are rendered. Such revenue is included in “management fees” on the Company’s condensed consolidated statements of operations. The Company is also reimbursed by the owners of the communities for costs incurred. Such revenue is included in “managed community reimbursement revenue” on the Company’s condensed consolidated statements of operations. The related costs are included in “managed community reimbursement expense” on the Company’s condensed consolidated statements of operations. See “Note 9–Revenue.”

Credit Risk and Allowance for Credit Losses

The Company’s resident accounts receivable are generally due within 30 days after the date billed. Accounts receivable are reported net of an allowance for credit losses of $8.6 million and $7.9 million as of March 31, 2025 and December 31, 2024, respectively, and represent the Company’s estimate of the amount that ultimately will be collected. The adequacy of the Company’s allowance for credit losses is reviewed on an ongoing basis, using historical payment trends, write-off experience, analyses of receivable portfolios by payor source and aging of receivables, as well as a review of specific accounts, and adjustments are made to the allowance, as necessary. Credit losses on resident receivables have historically been within management’s estimates, and management believes that the allowance for credit losses adequately provides for expected losses.

Concentration of Credit Risk and Business Risk

Substantially all of our revenues are derived from senior living communities we own and senior living communities that we manage. Senior living operations are particularly sensitive to adverse economic, social and competitive conditions and trends, including the effects of pandemics, which have previously adversely affected our business, financial condition, and results of operations.

We have a concentration of owned properties operating in Texas (19), Indiana (12), and Ohio (12), which represented approximately 22%, 13%, and 18%, respectively, of our resident revenues for the three months ended March 31, 2025 and approximately 23%, 19%, and 20%, respectively, of our resident revenues for the three months ended March 31, 2024.

Income Taxes

Income taxes are computed using the asset and liability method and current income taxes are recorded based on amounts refundable or payable in the current year. The effective tax rates for the three months ended March 31, 2025 and 2024 differ from the statutory tax rates due to state income taxes, permanent tax differences, and changes in the deferred tax asset valuation allowance.

Deferred income taxes are recorded based on the estimated future tax effects of loss carryforwards and temporary differences between financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted tax rates that are expected to apply to taxable income in the years in which the Company expects those carryforwards and temporary differences to be recovered or settled. Management regularly evaluates the future realization of deferred tax assets and provides a valuation allowance, if considered necessary, based on such evaluation. As part of the evaluation, management has evaluated taxable income in carryback years, future reversals of taxable temporary differences, feasible tax planning strategies, and future expectations of income. The valuation allowance reduces the Company’s net deferred tax assets to the amount that is “more likely than not” (i.e., a greater than 50% likelihood) to be realized. The Company has a full valuation allowance on deferred tax assets. However, in the event that the Company were to ultimately determine that it would be more likely than not that the Company would realize the benefit of deferred tax assets in the future in excess of their net recorded amounts, adjustments to deferred tax assets would increase net income in the period such determination was made. The benefits of the net deferred tax assets might not be realized if actual results differ from expectations.

The Company evaluates uncertain tax positions through consideration of accounting and reporting guidance on criteria, measurement, derecognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition that is intended to provide better financial statement comparability among different companies. The Company is required to recognize a tax benefit in its financial statements for an uncertain tax position only if management’s assessment is that its position is “more likely than not” (i.e., a greater than 50% likelihood) to be upheld on audit based only on the technical merits of the tax position. The Company’s policy is to recognize interest related to unrecognized tax benefits as interest expense and penalties as income tax expense.

The Company filed for an employee retention credit (“ERC”) with the Internal Revenue Service in November 2023. The ERC is a tax credit for businesses that had employees and were affected by the coronavirus pandemic. The company received $0.3 million of ERC payments during the three months ended March 31, 2025. In April 2025, the Company received an additional $0.6 million of ERC payments.

Redeemable Preferred Stock

The Company's Series A Preferred Stock is convertible outside of our control and is classified as mezzanine equity. The Series A Preferred Stock was initially recorded at fair value upon issuance, net of issuance costs and discounts. The holders of our Series A Preferred Stock are affiliates of Conversant Capital LLC, (together, the “Conversant Preferred Investors”), and are entitled to vote with the holders of common stock on all matters submitted to a vote of stockholders of the Company. As such, the Conversant Preferred Investors, in combination with the common stock owned by them and their affiliates as of March 31, 2025 and December 31, 2024, have voting rights in excess of 50% of the Company’s total voting stock. It is deemed probable

that the Series A Preferred Stock could be redeemed for cash by the Conversant Preferred Investors, and as such, the Series A Preferred Stock is required to be remeasured and adjusted to its maximum redemption value at the end of each reporting period. However, to the extent that the maximum redemption value of the Series A Preferred Stock does not exceed the fair value of the shares at the date of issuance, the shares are not adjusted below the fair value at the date of issuance. As of March 31, 2025 and December 31, 2024, the Series A Preferred Stock is carried at the maximum redemption value. The Series A Preferred Stock does not have a maturity date and, therefore, is considered perpetual.

Dividends on redeemable Series A Preferred Stock are recorded to retained earnings or additional paid-in capital if retained earnings is an accumulated deficit. Dividends are cumulative, and any declaration of dividends is at the discretion of the Company’s Board of Directors (the “Board”). If the Board does not declare a dividend in respect of any dividend payment date, the amount of such accrued and unpaid dividend is added to the liquidation preference of the Series A Preferred Stock and compounds quarterly thereafter. See “Note 8–Securities Financing.”

Derivative Instruments

We use derivative instruments as part of our overall strategy to manage our exposure to market risks associated with the fluctuations in variable interest rates associated with our debt. We are also required to enter into interest rate derivative instruments in compliance with certain debt agreements. We regularly monitor the financial stability and credit standing of the counterparties to our derivative instruments. We do not enter into derivative financial instruments for trading or speculative purposes. We record all derivatives at fair value. As of March 31, 2025 and December 31, 2024, our derivative instruments consisted of interest rate caps that were not designated as hedge instruments. Changes in fair value of undesignated hedge instruments are recorded in current period earnings as interest expense. See “Note 15–Derivatives and Hedging.”

Net Income Per Common Share

The Company uses the two-class method to compute net income per common share because the Company has issued securities (Series A Preferred Stock) that entitle the holder to participate in dividends and earnings of the Company. Under this method, net income is reduced by the amount of any dividends earned during the period. The remaining earnings (undistributed earnings) are allocated based on the weighted-average shares outstanding of common stock and participating securities, including Series A Preferred Stock (on an if-converted basis) to the extent that each participating security may share in earnings as if all of the earnings for the period had been distributed. The total earnings allocated to common stock is then divided by the number of outstanding shares to which the earnings are allocated to determine the earnings per share. The two-class method is not applicable during periods with a net loss, as the holders of the participating securities, including Series A Preferred Stock, have no obligation to fund losses.

Diluted net income per common share is computed under the two-class method by using the weighted-average number of shares of common stock outstanding, plus, for periods with net income attributable to common stockholders, the potential dilutive effects of stock options, stock-based compensation awards, and warrants. In addition, the Company analyzes the potential dilutive effect of the outstanding Series A Preferred Stock under the “if-converted” method when calculating diluted earnings per share, in which it is assumed that the outstanding Series A Preferred Stock converts into common stock at the beginning of the period or when issued, if later. The Company reports the more dilutive of the approaches (two class or “if-converted”) as its diluted net income per share during the period. See “Note 10–Net Income (Loss) Per Share.”

Segment Reporting

The Company evaluates the performance of its senior living communities and allocates resources based on current operations and market assessments on a property-by-property basis. The Company does not have a concentration of operations geographically or by product or service as its management functions are integrated at the property level. The Company has determined that its operating units meet the criteria in ASC Topic 280, Segment Reporting, to be aggregated into one reporting segment. As such, the Company operates in one segment.

Recently Issued Accounting Pronouncements Not Yet Adopted

Improvements to Income Statement Expenses

In November 2024, the FASB issued ASU 2024-03, Disaggregation of Income Statement Expenses (Topic 220). The ASU requires the disaggregated disclosure of specific expense categories, including purchases of inventory, employee compensation, depreciation, and amortization, within relevant income statement captions. The ASU is effective for annual periods beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027. Adoption of this ASU can either be applied prospectively to consolidated financial statements issued for reporting periods after the effective date of this ASU or retrospectively to any or all prior periods presented in the consolidated financial statements. Early adoption is also permitted. This ASU will likely result in the required additional disclosures where applicable being included in our consolidated financial statements once adopted. We are currently evaluating the provisions of this ASU.

Improvements to Income Tax Disclosures

In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The amendments require disclosure of specific categories in the rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold and further disaggregation of income taxes paid for individually significant jurisdictions. The guidance was effective for the Company beginning on January 1, 2025, with the new disclosure requirements effective in the Company’s Annual Report on Form 10-K for the fiscal year ending December 31, 2025. The impact of the guidance is limited to financial statement disclosures.

3. Investments and Acquisitions

Investment in Consolidated VIE

In July 2024, the Company entered into the Palatine JVs with affiliates of Palatine Capital Partners, which acquired four senior living communities located in Texas (3) and Georgia (1). The Company is a 51% owner in the joint ventures. The noncontrolling interest of the Palatine JVs is reported on the noncontrolling interest line items in the Company's condensed consolidated financial statements.

Investment in Stone Unconsolidated Entity

In May 2024, the Stone JV purchased four communities in the Midwest. KZ Stone Investor LLC is the controlling managing member of the Stone JV and owned 67.29% of the entity as of March 31, 2025. Sonida owned a 32.71% noncontrolling interest in the Stone JV as of March 31, 2025. Sonida operates the four communities for a management fee based on the gross revenues of the applicable communities, as well as an incentive management fee based on earnings before interest, taxes, depreciation, amortization, rent, and management fees, and other customary terms and conditions.

The Company has evaluated its investment in the Stone JV under ASC 810 and determined that it does not have the power to direct the activities of the VIE that most significantly impact its economic performance and is not the primary beneficiary of the VIE. The Company's interests in the VIE are, therefore, accounted for under the equity method of accounting. The carrying amount of the Company's investment in the unconsolidated venture and maximum exposure to loss as a result of the Company's ownership interest in the Stone JV was $10.2 million as of March 31, 2025, which is included in investment in unconsolidated entity on the accompanying condensed consolidated balance sheet. For the three months ended March 31, 2025, the Company received a return of its investment of $0.4 million in its unconsolidated entity.

The Company evaluates the realization of its investment in unconsolidated entities accounted for using the equity method if circumstances indicate the Company's investment is other than temporarily impaired. For the three months ended March 31, 2025, there were no impairments.

Purchase and Sale Agreement

During the quarter ended March 31, 2025, the Company signed a purchase and sale agreement for one community located in Georgia with a purchase price of $11.0 million. The acquisition is anticipated to close in the second quarter subject to due diligence and closing conditions.

4. Property and Equipment, net

As of March 31, 2025 and December 31, 2024, property and equipment, net, which include assets under finance leases, consist of the following (in thousands):


	Asset Lives	March 31, 2025		December 31, 2024
Land	NA	$	73,405	$	73,405
Land improvements	5 to 20 years	32,548		31,764
Buildings and building improvements	10 to 40 years	992,993		989,054
Furniture and equipment	5 to 10 years	68,195		66,600
Automobiles	5 to 7 years	2,997		2,923
Assets under financing leases and leasehold improvements (1)	5 to 10 years	5,820		5,607
Construction in progress	NA	1,354		1,039
Total property and equipment		$	1,177,312	$	1,170,392
Less accumulated depreciation and amortization		(441,841)		(430,508)
Total property and equipment, net		$	735,471	$	739,884

__________

(1) Leasehold improvements are amortized over the shorter of the useful life of the asset or the remaining lease term. Assets under financing leases and leasehold improvements include $0.1 million of financing lease right-of-use assets as of both March 31, 2025 and December 31, 2024.

The Company recognized depreciation and amortization expense on its property and equipment of $11.3 million and $9.8 million for the three months ended March 31, 2025 and 2024, respectively. As of March 31, 2025 and 2024, property and equipment, net included $1.4 million and $0.5 million, respectively, of capital expenditures which had been incurred but not yet paid.

5. Intangible Assets

Intangibles, net represents in-place leases, purchased with acquired communities. A portion of purchase price for acquisitions have been allocated to in-place leases. The intangible assets are estimated to be amortized over the straight-line method over their estimated useful lives as of the date of acquisition. The intangibles, net balance is as follows (in thousands):


	March 31,		December 31,		Weighted Average Life Remaining
	2025		2024		(in years)
In-place leases, gross	$	28,960	$	28,960
Accumulated amortization	(6,837)		(4,434)
Intangibles, net	$	22,123	$	24,526	2.5

Amortization expense for intangible assets was $2.4 million and $0.1 million for the three months ended March 31, 2025 and March 31, 2024, respectively. Expected future amortization expense of intangible assets as of March 31, 2025 is as follows (in thousands):


Future amortization:
2025, remaining	$	6,726
2026	9,080
2027	6,317
2028	—
2029	—
Total Amortization	$	22,123

6. Accrued Expenses

The following is a summary of accrued expenses as of March 31, 2025 and December 31, 2024 (in thousands):


	March 31, 2025		December 31, 2024
Accrued payroll and employee benefits	$	22,681	$	20,894
Accrued interest (1)	8,528		8,499
Accrued taxes	6,009		8,050
Accrued professional fees	3,013		3,315
Accrued other expenses	2,829		4,266
Total accrued expenses	$	43,060	$	45,024

__________

(1) Includes deferred interest of $5.1 million and $5.5 million as of March 31, 2025 and December 31, 2024, respectively, in consideration of the Fannie Mae (defined below) troubled debt restructuring. The deferred interest represents interest that has been forgiven under the Fannie Mae troubled debt restructuring.

7. Debt

Long-term debt balances, including associated interest rates and maturities consists of the following (in thousands):


		Weighted average interest rate		March 31, 2025		December 31, 2024
	Maturity Date	March 31, 2025	December 31, 2024
Senior secured revolving credit facility	2027	6.9%	7.3%	$	60,000	$	60,000
Fixed rate mortgage notes payable	2025 to 2045	4.6%	4.6%	400,120		400,229
Variable rate mortgage notes payable (1)	2026 to 2029	6.5%	6.5%	171,530		171,530
Notes payable - consolidated VIE	2025 to 2027	7.1%	7.2%	21,690		21,690
Notes payable - insurance	2025	6.9%	6.9%	899		1,707
Total debt				654,239		655,156
Deferred loan costs, net				3,345		3,766
Total debt, net of deferred loan costs				650,894		651,390
Current portion of debt				14,621		15,486
Long-term debt, net				$	636,273	$	635,904

The following schedule summarizes our debt payable as of March 31, 2025 (in thousands):


Principal payments due in:
2025	$	16,254
2026	133,055
2027	72,597
2028	3,395
2029	408,562
Thereafter	20,376
Total debt, excluding deferred loan costs	$	654,239

(1) See “Note 14–Fair Value” for interest rate cap agreements on variable rate mortgage notes payable.

As of March 31, 2025, our fixed rate mortgage notes bore interest rates ranging from 3.0% to 6.3%. Our variable rate mortgage notes and revolving credit facility are based on the Secured Overnight Financing Rate (“SOFR”) plus an applicable margin. As of March 31, 2025, the one-month SOFR was 4.4% and the applicable margins ranged from 2.00% to 3.50%.

As of March 31, 2025, we had property and equipment with a net carrying value of $572.9 million that was secured by outstanding notes payable. In addition, as of March 31, 2025, we had property and equipment with a net carrying value of $143.4 million secured by the Credit Facility (as defined below).

2024 Fannie Mae Loan Modifications

In December 2024, the Company and certain of its subsidiaries entered into an Omnibus Amendment to Multifamily Loan and Security Agreements (the “Omnibus Amendment”) with Federal National Mortgage Association (“Fannie Mae”). The Omnibus Amendment amends the terms of each of the loan agreements (each, a “2024 Loan Agreement” and collectively, the “2024 Loan Agreements”) relating to 18 of the Company’s 37 senior living communities encumbered by mortgage agreements with Fannie Mae to, among other things, extend the maturity dates of each 2024 Loan Agreements from December 1, 2026 to January 1, 2029 in exchange for $10.0 million of scheduled principal paydowns on the 2024 Loan Agreements, which included a $2.0 million paydown made at closing and a series of $2.0 million, $3.0 million and $3.0 million due in November 2025, 2026 and 2027, respectively.

Senior Secured Revolving Credit Facility

During 2024, the Company entered into a credit agreement with BMO Bank, N.A. and Royal Bank of Canada for a senior secured revolving credit facility (the “Credit Facility”). The Credit Facility has a borrowing capacity of up to $150.0 million, a term of three years, a leverage-based pricing matrix between SOFR plus 2.10% margin and SOFR plus 2.60% margin and is fully recourse to Sonida Senior Living, Inc. and its applicable subsidiaries. The borrowing base by which borrowing availability under the Credit Facility is determined is generally based upon the value of the senior living communities that secure the Company’s obligations under the Credit Facility. As of March 31, 2025, $60.0 million of borrowings were outstanding under the Credit Facility at a weighted average interest rate of 6.9%, which was secured by 13 of the Company’s senior living communities. As of March 31, 2025, we had an additional borrowing capacity of up to $43.2 million under our Credit Facility.

Texas Loan Modification

In August 2024, the Company entered into loan modification agreements (“Texas Loan Modification”) with one of its lenders on two owned communities in Texas. The original loan terms included maturities of April 2025 and October 2031, as well as cross-default provisions with each other. The Texas Loan Modification included revised loan maturities of December 2025 on both communities, with the Company’s option to make a discounted payoff (“Texas DPO”) of the outstanding loan principal on or prior to November 1, 2024. As part of the consideration, the Company was required to pay a total restructuring fee of $250,000. On November 1, 2024, the Company paid $18.3 million for the Texas DPO, which was financed with funds received from our Credit Facility. The Texas DPO represents a discount of 36% on the total principal outstanding for which the Company recognized a gain on debt extinguishment, net of $10.4 million for the year ended December 31, 2024.

2024 Loan Repurchase Agreement and Ally Term Loan Expansion

transaction, the “2024 Loan Purchase”). The 2024 Loan Purchase was funded by expanding the Company’s existing loan facility with Ally Bank (“Ally”) by $24.8 million (“Ally Third Amendment”) and the remainder was funded by proceeds from the issuance of common stock. The 2024 Loan Purchase and Ally financing closed in February 2024, reduced notes payable by $49.6 million, and resulted in a gain on debt extinguishment, net totaling $38.1 million for the three months ended March 31, 2024. The Company incurred deferred loan costs of $0.5 million as part of the Ally financing that are amortized over the loan term. As part of the Ally Third Amendment, the Company expanded its current interest rate cap to include the additional borrowing at a cost of $0.6 million and increased the monthly interest rate cap reserve (“IRC Reserve”) held by Ally to match the notional amount required under the increased obligation. The expanded Ally debt facility is secured by six of the Company’s senior living communities involved in the transaction.

2024 Ally Loan Amendment

On May 22, 2024, the Company executed an amendment (“Ally Fourth Amendment”) to the Ally term loan agreement. Ally Bank successfully syndicated a portion of its total term loan commitment to Cross River Bank. Following the syndication, Ally Bank and Cross River Bank owned 67.5% and 32.5%, respectively, of the outstanding principal balance. As each lender loans a specific amount to the debtor and has the right to repayment from the debtor this transaction is considered a loan syndication and the guidance in ASC 470-50 was applied to the modified loans on a creditor-by-creditor basis. As Ally Bank was the sole lender prior to the syndication, there is no change in the allocation of deferred loan costs, and they will continue to be amortized over the loan term. As part of the syndication, the IRC reserve spread moved from 2.3% to 3.0%, capping the total interest at 6.0% on the Ally term loan. The Ally Fourth Amendment allows the Company the option to extend the Ally debt maturity by 12 months from March 2026 to March 2027.

Notes Payable - Consolidated VIE

As of March 31, 2025, the Company had $21.7 million of mortgage debt outstanding related to the Palatine JVs. The mortgages have a weighted average interest rate of 7.1% and terms ranging from 2025 through 2027. The Company has guaranteed $3.1 million of the Palatine JV mortgages. In addition, one of the affiliates in the Palatine JVs entered into a SOFR-based IRC to reduce exposure to the variable interest rate fluctuations associated with one of the mortgages at a cost of $0.1 million.

Notes Payable - Insurance

As of March 31, 2025, the Company had finance agreements for certain insurance policies totaling $0.9 million, with a fixed interest rate of 6.85%, and principal being repaid over ten-month terms.

Deferred Loan Costs

As of March 31, 2025 and December 31, 2024, the Company had gross deferred loan costs of $11.3 million and $11.4 million, respectively, related to notes payable. Accumulated amortization was $8.0 million and $7.6 million as of March 31, 2025 and December 31, 2024, respectively.

Financial Covenants

Certain of the Company's debt agreements contain restrictions and financial covenants, which require the Company to maintain prescribed minimum liquidity, net worth, and stockholders' equity levels and debt service ratios, and require the Company not to exceed prescribed leverage ratios, in each case on a consolidated, portfolio-wide, multi-community, single-community, and/or entity basis. In addition, the Company's debt agreements generally contain non-financial covenants, such as those requiring the Company to comply with Medicaid provider requirements and maintain insurance coverage.

The Company's failure to comply with applicable covenants could constitute an event of default under the applicable debt agreements. Many of the Company's debt agreements contain cross-default provisions so that a default under one of these instruments could cause a default under other debt agreements (including with other lenders). Furthermore, the Company's mortgage debt is secured by its communities and, in certain cases, a guaranty by the Company and/or one or more of its subsidiaries.

As of March 31, 2025, the Company was in compliance with the financial covenants of its debt agreements.

8. Securities Financing

Series A Preferred Stock

As of March 31, 2025, the Company had 41,250 shares of Series A Preferred Stock outstanding. The Series A Preferred Stock is convertible outside of the Company's control and, in accordance with GAAP, is classified as mezzanine equity, outside the stockholders’ equity (deficit) section, on our condensed consolidated balance sheets.

The Series A Preferred Stock has an 11% annual dividend calculated on the original investment of $41.3 million accrued quarterly in arrears and compounded. Dividends are cumulative, and any declaration of dividends is at the discretion of the Company’s Board. If the Board does not declare a dividend in respect of any dividend payment date, the amount of such accrued and unpaid dividend is added to the liquidation preference of the Series A Preferred Stock and compounds quarterly thereafter. On March 31, 2025, the Board declared and paid $1.4 million in dividends on its Series A Preferred Stock. On March 31, 2024, the Board did not declare dividends with respect to the Series A Preferred Stock, and accordingly, $1.3 million was added to the liquidation preference of the Series A Preferred Stock, effectively increasing the carrying value of the Series A Preferred Stock. As of March 31, 2025, a total of $10.0 million had been added to the liquidation preference of the Series A Preferred Stock.

The following schedule summarizes our Series A Preferred Stock as of March 31, 2025 and December 31, 2024 (in thousands):


	Preferred Stock
	Shares	Amount
Balance as of December 31, 2024	41	$	51,249

Balance as of March 31, 2025	41	$	51,249

Outstanding Warrants

In November 2021, the Company, issued 1,031,250 warrants to the Conversant Investors, each evidencing the right to purchase one share of common stock at a price per share of $40 and with an exercise expiration date of five years after the closing date of such financing transactions. The Company had 1,031,250 outstanding warrants as of March 31, 2025 and December 31, 2024.

9. Revenue

Revenue for the three months ended March 31, 2025 and 2024 is comprised of the following components (in thousands):


	Three Months Ended March 31,
	2025		2024
Housing and support services	$	78,411	$	59,984
Community fees	534		459
Ancillary services	310		294

Resident revenue	79,255		60,737
Management fees	1,061		594
Managed community reimbursement revenue	11,607		6,107
Total revenues	$	91,923	$	67,438

Community fees, ancillary services, management fees, and community reimbursement revenue represent revenue from contracts with customers in accordance with GAAP.

10. Net Income (Loss) Per Share

Basic net income (loss) per share (“EPS”) is calculated by dividing net earnings by the weighted average number of common shares outstanding during the period. Potentially dilutive securities include warrants, Series A Preferred Stock, shares of restricted stock, restricted stock units, and former employee stock options. Diluted EPS reflects the assumed exercise or

conversion of all dilutive securities. The Series A Preferred Stock is considered participating securities for the purposes of the Company's EPS calculation.

The following table sets forth the computation of basic and diluted net income (loss) per share (in thousands, except for per share amounts):


	Three Months Ended March 31,
	2025		2024
Basic net income (loss) per common share calculation:
Net income (loss) attributable to Sonida shareholders	$	(12,529)	$	27,019
Less: Dividends on Series A Preferred Stock	(1,409)		—
Less: Undeclared dividends on Series A Preferred Stock	—		(1,335)
Less: Undistributed earnings allocated to participating securities	—		(2,849)
Net income (loss) attributable to common shareholders	$	(13,938)	$	22,835
Weighted average shares outstanding — basic	18,047		9,861
Basic net income (loss) per share	$	(0.77)	$	2.32

Diluted net income (loss) per common share calculation:
Net income (loss) attributable to common shareholders	$	(13,938)	$	22,835
Weighted average shares outstanding — diluted	18,047		10,562
Diluted net income (loss) per share	$	(0.77)	$	2.16


	Three Months Ended March 31,
(shares in thousands)	2025	2024
Weighted average shares outstanding - diluted reconciliation:
Weighted average shares outstanding — basic	18,047	9,861
Dilutive effect of share-based instruments	—	701

Weighted average shares outstanding — diluted	18,047	10,562

The following weighted-average shares of securities were not included in the computation of diluted net income (loss) per common share as their effect would have been antidilutive:


	Three Months Ended March 31,
(shares in thousands)	2025	2024
Warrants	1,031	1,031
Series A Preferred Stock (if converted)	1,281	1,230
Restricted stock awards	885	22
Restricted stock units	5	—
Stock options	10	10

Total	3,212	2,293

11. Stock-Based Compensation

The Company uses equity awards as a long-term retention program that is intended to attract, retain and provide incentives for employees, officers, and directors and to more closely align stockholder and employee interests. The Company recognizes compensation expense for all of its share-based stock awards based on their fair values.

The Company recognized $1.0 million and $0.6 million in stock-based compensation expense for the three months ended March 31, 2025 and March 31, 2024, respectively. As of March 31, 2025, the Company had $5.9 million in unrecognized stock compensation expense.

12. Commitments and Contingencies

As of March 31, 2025, the Company had contractual commitments of $7.3 million related to future renovations and technology enhancements to its communities, which are expected to be substantially expended during 2025.

The Company has a remaining deferred purchase price of $1.2 million for the Palatine JVs acquisition. If a capital call notice is given, Sonida would be required to contribute $1.2 million on behalf of its JV partner before it would begin to fund their pro rata share of capital calls.

The Company has claims incurred in the normal course of its business. Most of these claims are believed by management to be covered by insurance, subject to deductibles, normal reservations of rights by the insurance companies and possibly subject to certain exclusions in the applicable insurance policies. Whether or not covered by insurance, these claims, in the opinion of management, based on advice of legal counsel, should not have a material impact on the condensed consolidated financial statements of the Company.

13. Related Party Transactions

Conversant

As of March 31, 2025, Conversant and its affiliates have a controlling interest in the Company. See “Note 8–Securities Financing.”

Stone Joint Venture

As of March 31, 2025, the Company manages the four communities owned by the Stone JV under a management agreement and also provides reporting services for the joint venture. See “N ote 3–Investments.” During the three months ended March 31, 2025, the Company received a distribution of $0.4 million as a return of its investment in the Stone JV.

In September 2024, the Stone JV entered into a $35.0 million mortgage loan with a 36-month term and a fixed interest rate equal to 7.3% backed by the four communities owned by the Stone JV. As of March 31, 2025 and December 31, 2024, the outstanding balance of the Stone JV loan was $35.0 million and the Company guaranteed $14.0 million of the loan.

Palatine Joint Ventures

As of March 31, 2025, the Company manages the four communities owned by subsidiaries of the Palatine JVs under a management agreement and also provides reporting services for the two joint ventures. See “N ote 3–Investments.”

14. Fair Value Measurements

Assets and Liabilities Measured at Fair Value on a Recurring Basis

The Company uses interest rate cap arrangements with financial institutions to manage exposure to interest rate changes for loans with variable interest rates. As of March 31, 2025 and December 31, 2024, we had interest rate cap agreements with an aggregate notional value of $185.1 million. The fair value of these derivative assets as of March 31, 2025 and December 31, 2024 was $1.0 million and $1.5 million, respectively, which was determined using significant observable inputs (Level 2), including quantitative models that utilize multiple market inputs to value the position. The majority of market inputs are actively quoted and can be validated through external sources, including brokers, market transactions, and third-party pricing services. See “Note 15– Derivativ es and Hedging.”

Financial Instruments Not Reported at Fair Value

For those financial instruments not carried at fair value, the carrying amount and estimated fair values of our financial assets and liabilities were as follows as of March 31, 2025 and December 31, 2024 (in thousands):


	March 31, 2025				December 31, 2024
	Carrying Amount		Fair Value		Carrying Amount		Fair Value


Cash and cash equivalents	$	13,988	$	13,988	$	16,992	$	16,992
Restricted cash	18,429		18,429		22,095		22,095
Debt, excluding deferred loan costs	$	654,239	$	602,332	$	655,156	$	621,597

We believe the carrying amount of cash and cash equivalents, restricted cash, accounts receivable, and accounts payable, and accrued liabilities approximate fair value due to their short-term nature.

The fair value of debt, excluding deferred loan costs, is estimated using discounted cash flow analysis, based on current incremental borrowing rates for similar types of borrowing arrangements, which represent Level 2 inputs as defined in ASC 820, Fair Value Measurement.

Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis

The Company adjusts the carrying amount of certain non-financial assets to fair value on a non-recurring basis when they are impaired. There were no impairment losses for the three months ended March 31, 2025 and 2024.

15. Derivatives and Hedging

The Company uses derivatives as part of its overall strategy to manage our exposure to market risks associated with the fluctuations in variable interest rates associated with our debt. We are also required to enter into interest rate derivative instruments in compliance with certain debt agreements. We do not enter into derivative financial instruments for trading or speculative purposes.

During April 2024, the Company entered into an interest rate cap transaction for an aggregate notional amount of $49.2 million for $1.1 million to reduce exposure to interest rate fluctuations associated with a portion of our variable mortgage notes payable to Fannie Mae. The interest rate cap has 24-month term and effectively caps SOFR at 4.00%. The Company is funding an IRC reserve for a replacement IRC which is held by the lender. The IRC is not designated as a cash flow hedge under ASC 815-20, Derivatives – Hedging, and therefore, all changes in the fair value of the instrument are included as a component of interest expense in our condensed consolidated statements of operations.

In connection with a loan related to the Company’s acquisition of a community located in Macedonia, Ohio in May 2024, the Company entered into a SOFR-based interest rate cap to reduce exposure to the variable interest rate fluctuations associated with the new mortgage. The total cost of the IRC was $0.2 million and has an aggregate notional amount of $9.4 million. The IRC has a 24-month term and caps SOFR at 6.00%.

The interest rate cap agreement has a 12-month term and effectively caps the interest rate at 2.25% with respect to the portion of our floating rate indebtedness. In February 2024, as part of the Ally Term Loan expansion, the Company entered into a SOFR-based interest rate cap transaction for an aggregate notional amount of $24.8 million at a cost of $0.6 million. See “Note 7–Debt.”

The following table presents the fair values of derivative assets and liabilities in the condensed consolidated balance sheets (in thousands):


	March 31, 2025
	Derivative Asset				Derivative Liability
	Notional Amount		Fair Value		Notional Amount		Fair Value

Interest rate cap (SOFR-based)	$	185,109	$	975	$	—	$	—
Total derivatives, net	$	185,109	$	975	$	—	$	—


	December 31, 2024
	Derivative Asset				Derivative Liability
	Notional Amount		Fair Value		Notional Amount		Fair Value

Interest rate cap (SOFR-based)	$	185,145	$	1,465	$	—	$	—
Total derivatives, net	$	185,145	$	1,465	$	—	$	—

The following table presents the effect of the derivative instruments on the condensed consolidated statements of operations (in thousands):


	Three Months Ended March 31,
	2025		2024
Derivative not designated as hedge
Interest rate cap
Loss on derivatives not designated as hedges included in interest expense	$	(490)	$	(527)

16. Segment Information

Each of our communities are identified as individual operating segments and we combine them into a single reportable segment for reporting purposes under ASC 280. We measure the segment based on resident revenue less community operating expense, (adjusted for various non-recurring non-operating community expenses), which we define as community net operating income (“NOI”), as well as some key performance indicators such as weighted average occupancy and a measurement of average rent per available unit.

Our Chief Executive Officer is our chief operating decision maker (“CODM”), who organizes our company, manages resource allocations and measures performance among our one reportable segment. The CODM uses community NOI by property to allocate operating and capital resources and assesses performance of the segment by comparing actual NOI results to historical results and previously forecasted financial information. Our CODM manages our business by reviewing annual forecasts and segment results on a monthly basis. The measure of segment assets is reported on the consolidated balance sheet as total consolidated assets. The total investment in equity method investments and capital expenditures are presented on the consolidated financial statements.

The following table presents resident revenue, community operating expense and community net operating income by reportable segment (in thousands):


	Three months ended March 31,
	2025		2024
Resident revenue	$	79,255	$	60,737
Community operating expense:
Labor	38,299		29,117
Food	3,428		3,099
Utilities	4,001		3,310
Other community operating expense (1)	13,386		10,296
Total community operating expense	59,114		45,822
Community net operating income	$	20,141	$	14,915

__________

(1) Includes community maintenance, software expense, supplies, insurance, real estate taxes, marketing expense, and other overhead expense.

A reconciliation of segment revenues to consolidated total revenues is as follows (in thousands):


	Three months ended March 31,
	2025		2024
Segment resident revenue	$	79,255	$	60,737
All other non-segment revenue:
Management fees	1,061		594
Managed community reimbursement revenue	11,607		6,107
Total revenues	$	91,923	$	67,438

A reconciliation of segment net operating income to the Company’s condensed consolidated statements of operations is as follows (in thousands):


	Three months ended March 31,
	2025		2024
Segment net operating income	$	20,141	$	14,915
Management fees	1,061		594
Other operating expenses	(1,300)		(495)
General and administrative expense	(8,472)		(6,812)
Transaction, transition and restructuring costs	(610)		(399)
Depreciation and amortization expense	(13,686)		(9,935)

Interest income	242		139
Interest expense	(9,446)		(8,591)
Gain on extinguishment of debt, net	—		38,148
Loss from equity method investment	(330)		—
Other expense, net	(550)		(479)
Provision for income taxes	(75)		(66)
Net Income (Loss)	$	(13,025)	$	27,019

17. Subsequent Event

Purchase and Sale Agreement

In May 2025, the Company signed a purchase and sale agreement for one community located in Florida with a purchase price of $11.0 million. The acquisition is contingent upon securing financing and customary closing conditions.

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

This Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) is intended to help provide an understanding of our business and results of operations. This MD&A should be read in conjunction with our unaudited condensed consolidated financial statements and the related notes thereto included elsewhere in this Quarterly Report on Form 10-Q. This report, including the following MD&A, contains forward-looking statements regarding future events or trends that should be read in conjunction with the risks, uncertainties and other factors described under “Cautionary Note Regarding Forward-Looking Statements” above in this Quarterly Report on Form 10-Q and “Item 1A. Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2024 filed with the SEC on March 17, 2025, as well as “Item. 1A. Risk Factors” in this Quarterly Report on Form 10-Q. Actual results may differ materially from those projected in such statements as a result of such risks, uncertainties and other factors. Unless otherwise specified or where the context otherwise requires, references in this Quarterly Report on Form 10-Q to “our,” “we,” “us,” “Sonida”, the “Company” and “our business” refer to Sonida Senior Living, Inc., together with its consolidated subsidiaries.

Overview

The following discussion and analysis addresses (i) the Company’s results of operations for the three months ended March 31, 2025 and 2024, and (ii) liquidity and capital resources of the Company.

The Company is a leading owner, operator and investor in independent living, assisted living and memory care communities and services for senior adults in the United States in terms of resident capacity. The Company’s operating strategy is to provide value to its senior living residents by providing quality senior living services at reasonable prices, while achieving and sustaining a strong, competitive position within its geographically concentrated regions, as well as continuing to enhance the performance of its operations. The Company primarily provides senior living services to the 75+ population, including independent living, assisted living, and memory care services at reasonable prices. Many of the Company’s communities offer a continuum of care to meet each of their resident’s needs as they change over time. This continuum of care, which integrates independent living, assisted living, and memory care that may be bridged by home care through independent home care agencies, sustains our residents’ autonomy and independence based on their physical and mental abilities.

As of March 31, 2025, the Company owned, managed, or invested in 94 senior housing communities in 20 states with an aggregate capacity of approximately 10,000 residents, including 81 owned senior housing communities (including four through joint venture investments in consolidated entities, four owned through a joint venture investment in an unconsolidated entity, and one unoccupied) and 13 communities that the Company manages on behalf of a third party.

Significant Financial and Operational Highlights

Operations

During the three months ended March 31, 2025, the Company generated resident revenue of $79.3 million compared to resident revenue of $60.7 million in the three months ended March 31, 2024, representing an increase of 30.6%. The increase in revenue was primarily due to increased occupancy, increased average rent rates, and additional communities acquired in 2024.

Weighted average occupancy for the three months ended March 31, 2025 and 2024 for the communities owned by the Company, excluding 2024 acquisitions and repositioning projects, was 86.8% and 85.8%, respectively, reflecting continued occupancy growth. The average monthly rental rate for these owned communities for the three months ended March 31, 2025 increased 5.5% when compared to the three months ended March 31, 2024.

Management Services

The Company has property management agreements with third parties and its joint ventures pursuant to which the Company manages certain communities on their behalf for a management fee based on gross revenues of the applicable communities, as well as, in some cases, an incentive management fee and other customary terms and conditions. The Company managed 13 and ten communities on behalf of a third party for the three months ended March 31, 2025 and 2024, respectively. The Company also managed four communities on behalf of an unconsolidated joint venture and four communities in consolidated joint ventures for the three months ended March 31, 2025. No such joint ventures in the prior period.

Investment in Consolidated VIE

In July 2024, the Company entered into two joint ventures (collectively, the “Palatine JVs”) with affiliates of Palatine Capital Partners, which acquired four senior living communities located in Texas (3) and Georgia (1). The Company is a 51% owner in the joint ventures. The noncontrolling interest of the Palatine JVs is reported on the noncontrolling interest line items in the Company's condensed consolidated financial statements.

Investment in Stone Unconsolidated Entities

In May 2024, Stone JV LLC (“Stone JV”) purchased four communities in the Midwest. KZ Stone Investor LLC is the controlling managing member of the Stone JV and owned 67.29% of the entity as of March 31, 2025. Sonida owned a 32.71% noncontrolling interest in the Stone JV as of March 31, 2025. Sonida operates the four communities for a management fee based on the gross revenues of the applicable communities, as well as an incentive management fee based on earnings before interest, taxes, depreciation, amortization, rent, and management fees, and other customary terms and conditions.

The Company has evaluated its investment in the Stone JV under ASC 810 and determined that it does not have the power to direct the activities of the VIE that most significantly impact its economic performance and is not the primary beneficiary of the VIE. The Company's interests in the VIE are, therefore, accounted for under the equity method of accounting. The carrying amount of the Company's investment in the unconsolidated venture and maximum exposure to loss as a result of the Company's ownership interest in the Stone JV was $10.2 million as of March 31, 2025, which is included in investment in unconsolidated entity on the accompanying condensed consolidated balance sheet. For the three months ended March 31, 2025, the Company received a return of investment of $0.4 million in its unconsolidated entity.

2024 Fannie Mae Loan Modifications

Senior Secured Revolving Credit Facility

2024 Loan Repurchase Agreement and Ally Term Loan Expansion

We entered into an agreement with one of our previous lenders whereby the Company agreed to purchase the outstanding indebtedness it owed to such lender for a purchase price of $40.2 million (plus the reimbursement of certain amounts advanced to the Company by such lender). On February 2, 2024, the Company completed the purchase of the total outstanding principal balance of $74.4 million from the lender that was secured by seven of the Company’s senior living communities (such transaction, the “2024 Loan Purchase”). The 2024 Loan Purchase was funded by expanding the Company’s existing loan facility with Ally Bank (“Ally”) by $24.8 million (“Ally Third Amendment”) and the remainder was funded by proceeds from the issuance of common stock. The 2024 Loan Purchase and Ally financing closed in February 2024, reduced notes payable by $49.6 million, and resulted in a gain on debt extinguishment, net totaling $38.1 million for the three months ended March 31, 2024. The Company incurred deferred loan costs of $0.5 million as part of the Ally financing that are amortized over the loan term. As part of the Ally Third Amendment, the Company expanded its current interest rate cap to include the additional

borrowing at a cost of $0.6 million and increased the monthly interest rate cap reserve (“IRC Reserve”) held by Ally to match the notional amount required under the increased obligation. The expanded Ally debt facility is secured by six of the Company’s senior living communities involved in the transaction.

2024 Ally Loan Amendment

Application of Critical Accounting Policies and Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the accompanying financial statements and related notes. Actual results could differ from those estimates. For a discussion of our critical accounting policies and estimates, please refer to our Annual Report on Form 10-K for the year ended December 31, 2024. There have been no significant changes to our critical accounting policies since December 31, 2024.

Recent Accounting Guidance Adopted

See “Note 2–Summary of Significant Accounting Policies” in the Notes to Condensed Consolidated Financial Statements for a discussion of new accounting pronouncements and our assessment of any expected impact of these pronouncements, if known.

Results of Operations

Three months ended March 31, 2025 as compared to three months ended March 31, 2024

Revenues

Resident revenue for the three months ended March 31, 2025 was $79.3 million as compared to $60.7 million for the three months ended March 31, 2024, representing an increase of $18.6 million, or 30.6%. The increase in revenue was primarily due to increased occupancy, increased average rent rates, and 16 additional operating communities acquired during 2024 (including one unoccupied community).

Management fee revenue for the three months ended March 31, 2025 increased by $0.5 million as compared to the three months ended March 31, 2024, primarily as a result of managing three more third-party and four unconsolidated joint venture communities as compared to prior period.

Managed community reimbursement revenue for the three months ended March 31, 2025 was $11.6 million as compared to $6.1 million for the three months ended March 31, 2024, representing an increase of $5.5 million, or 90.2%. The increase was primarily a result of managing more communities.

Expenses

Operating expenses for the three months ended March 31, 2025 were $60.4 million as compared to $46.3 million for the three months ended March 31, 2024, representing an increase of $14.1 million, or 30.5%. The increase was attributable to $11.5 million in operating expenses related to the 16 additional communities acquired during 2024 (including one unoccupied community acquired on December 31, 2024), and an increase of $2.6 million in operating expenses related to the remaining owned communities, driven by $1.4 million increases in labor and $1.2 million increases in other operating expenses.

General and administrative expenses for the three months ended March 31, 2025 were $8.5 million as compared to $6.8 million for the three months ended March 31, 2024, representing an increase of $1.7 million. The increase was primarily a result of an increase in labor and employee related expenses of $1.5 million to support the Company’s 2024 acquisitions and growth initiatives, and a $0.4 million increase in stock-based compensation expense, partially offset by a net decrease in other expenses of $0.2 million.

Transaction, transition and restructuring costs were $0.6 million and $0.4 million for the three months ended March 31, 2025 and 2024, respectively. The costs include legal, audit, banking and other costs to support the Company’s recent debt, restructuring, as well as investments by the Company.

Managed community reimbursement expense for the three months ended March 31, 2025 was $11.6 million as compared to $6.1 million for the three months ended March 31, 2024, representing an increase of $5.5 million or 90.2%. The increase was primarily a result of managing more communities for the three months ended March 31, 2025 as compared to the prior period.

Interest expense for the three months ended March 31, 2025 was $9.4 million as compared to $8.6 million for the three months ended March 31, 2024, representing an increase of $0.8 million primarily due to the incremental borrowings associated with the Company's 2024 community acquisitions, partially offset by a decrease in the Company’s SOFR-based variable rate debt.

Gain on extinguishment of debt, net for the three months ended March 31, 2024 was $38.1 million related to the derecognition of notes payable and liabilities as a result of the 2024 Loan Purchase.

Liquidity and Capital Resources

In addition to $14.0 million of unrestricted cash as of March 31, 2025, our future liquidity will depend in part upon our operating performance, which will be affected by prevailing economic conditions, and financial, business and other factors, some of which are beyond our control. Principal sources of liquidity are expected to be cash flows from operations, proceeds from our secured Credit Facility, proceeds from equity offerings, including sales of common stock under our ATM sales agreement, proceeds from debt, proceeds from debt refinancings or loan modifications, and proceeds from the sale of owned assets. On April 1, 2024, the Company entered into the At-the-Market Issuance Sales Agreement (the “ATM Sales Agreement”), whereby the Company may sell, at its option, shares of its common stock up to an aggregate offering price of $75,000,000. During August 2024, the Company entered into its Credit Facility in which borrowing availability is determined based upon the value of the senior living communities securing the Credit Facility. As of March 31, 2025, the Company had outstanding borrowings under its Credit Facility of $60.0 million and availability of $43.2 million. These transactions are expected to provide additional financial flexibility for the Company and increase our liquidity position. See “Note 7–Debt” in the Notes to Condensed Consolidated Financial Statements.

As of March 31, 2025, the majority of our outstanding variable-rate debt obligations were covered by our interest rate caps to better manage our exposure to market risks associated with the fluctuations in variable interest rates associated with our debt.

The Company, from time to time, considers and evaluates financial and capital raising transactions related to its portfolio, including debt financings and refinancings, purchases and sales of assets, equity offerings and other transactions. There can be no assurance that the Company will continue to generate cash flows at or above current levels, or that the Company will be able to obtain the capital necessary to meet the Company’s short- and long-term capital requirements.

Recent changes in the current economic environment, and other future changes, could result in decreases in the fair value of assets, slowing of transactions, and the tightening of liquidity and credit markets. These impacts could make securing debt or refinancings for the Company or buyers of the Company’s properties more difficult or on terms not acceptable to the Company. The Company’s actual liquidity and capital funding requirements depend on numerous factors, including its operating results, its capital expenditures for community investment, and general economic conditions, as well as other factors described in “Item 1A. Risk Factors” of our 2024 Annual Report on Form 10-K filed with the SEC on March 17, 2025.

In summary, the Company’s cash flows were as follows (in thousands):


	Three Months Ended March 31,
	2025		2024		Change
Net cash provided by (used in) operating activities	$	3,823	$	(4,105)	$	7,928
Net cash used in investing activities	(7,945)		(5,131)		(2,814)
Net cash provided by (used in) financing activities	(2,548)		29,149		(31,697)
Increase (decrease) in cash and cash equivalents and restricted cash	$	(6,670)	$	19,913	$	(26,583)

Operating activities

Net cash provided by operating activities for the three months ended March 31, 2025 was $3.8 million as compared to net cash used in operating activities of $4.1 million for the three months ended March 31, 2024. The change of $7.9 million is primarily due to the change in accounts receivable and the improvement in net income inclusive of the non-cash adjustments to earnings during the three months ended March 31, 2025 compared to the prior year period.

Investing activities

Net cash used in investing activities for the three months ended March 31, 2025 was $7.9 million primarily due to $8.3 million in ongoing capital improvements combined with select refurbishment projects, as well as refurbishment projects associated with the 2024 acquired communities, partially offset by a return of investment of $0.4 million in our unconsolidated entity. Net cash used in investing activities of $5.1 million for the three months ended March 31, 2024 was primarily resulted from ongoing capital improvements and refurbishments at the Company’s senior housing communities of $5.8 million, partially offset by $0.6 million from the proceeds from the sale of an unencumbered land parcel in January 2024.

Financing activities

Net cash used by financing activities for the three months ended March 31, 2025 was $2.5 million primarily due to dividends paid of $1.4 million and repayments of notes payable of $0.9 million. The net cash provided by financing activities for the three months ended March 31, 2024 was $29.1 million primarily due to net proceeds received from the issuance of common stock of $47.6 million and proceeds of $24.8 million from the Ally financing, partially offset by repayments of notes payable of $42.0 million.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

Not applicable.

Item 4. Controls and Procedures

Effectiveness of Controls and Procedures

The Company’s management, with the participation of the Company’s Chief Executive Officer (“CEO”) and Chief Financial Officer (“CFO”), has evaluated the effectiveness of the Company’s disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) as of the end of the period covered by this Quarterly Report on Form 10-Q. The Company’s disclosure controls and procedures are designed to ensure that information required to be disclosed by the Company in the reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms. The Company’s disclosure controls and procedures are also designed to ensure that such information is accumulated and communicated to the Company’s management, including the CEO and CFO as appropriate, to allow timely decisions regarding required disclosure.

Based upon the controls evaluation, procedures evaluation and the material weakness described below and in our Annual Report on Form 10-K, which was filed with the SEC on March 17, 2025, the Company’s CEO and CFO have concluded that, as of the end of the period covered by this Quarterly Report on Form 10-Q, the Company’s disclosure controls and procedures are ineffective.

A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of a company’s annual or interim financial statements will not be prevented or detected on a timely basis. The Company’s system user access controls for certain financial systems, including provisioning and user access review, were not operating effectively. Moreover, the lack of effective user access controls caused insufficient restriction of user and privileged access to our payroll system and data, resulting in a lack of segregation of duties for certain user roles. These control deficiencies could result in a material misstatement of our accounts or disclosures that would not be prevented or detected on a timely basis, and accordingly, we determined that these control deficiencies in aggregate constitute a material weakness.

Other than the changes outlined below, there have not been any changes in the Company’s internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the Company’s fiscal quarter ended March 31, 2025 that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

Remediation Plan

As disclosed in our 2024 Annual Report on Form 10-K for the year ended December 31, 2024, which was filed with the SEC on March 17, 2025, we identified a material weakness in our internal control over financial reporting, which has not been remediated as of March 31, 2025. We have developed the following plan for remediation of the material weakness. Control weaknesses are not considered remediated until enhanced internal controls have been operational for a period of time, are tested and management concludes that these controls are operating effectively. We will continue to monitor the effectiveness of our remediation measures in connection with our future assessments of the effectiveness of internal control over financial reporting and disclosure controls and procedures. We will make any changes to the design of our plan and take such other actions that we deem appropriate given the circumstances. We expect to complete the remediation process in 2025.

•Established a project team to review, evaluate and remediate the material weakness.

•Restrict user and privileged access to our payroll system to ensure appropriate segregation of duties.

•Further implement single sign-on user access for key financial systems.

•Enhance key financial system user access reviews to ensure the completeness and accuracy of users.

•Further review our system user access controls and implement additional review controls as deemed necessary.

Part II. OTHER INFORMATION

Item 1. Legal Proceedings

The Company has claims incurred in the normal course of its business. Most of these claims are believed by management to be covered by insurance, subject to normal reservations of rights by the insurance companies and possibly subject to certain exclusions in the applicable insurance policies. Whether or not covered by insurance, these claims, in the opinion of management, based on advice of legal counsel, should not have a material effect on the condensed consolidated financial statements of the Company if determined adversely to the Company.

Item 1A. Risk Factors

There have been no material changes to the risk factors set forth in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2024.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

The following information is provided pursuant to Item 703 of Regulation S-K. The information set forth in the table below reflects the common stock purchased by the Company for the quarter ended March 31, 2025:


Period	Total Number of Shares Purchased (1)	Average Price Paid per Share	Total Shares Purchased as Part of Publicly Announced Program	Approximate Dollar Value of Shares that May Yet Be Purchased Under the Program




January 1 – January 31, 2025	—	—	—	6,570,222
February 1 – February 28, 2025	—	—	—	6,570,222
March 1 – March 31, 2025	—	—	—	6,570,222

__________

(1) Does not include shares withheld to satisfy tax liabilities due upon the vesting of restricted stock, all of which have been reported in Form 4 filings relating to the Company. The average price paid per share for such share withholding is based on the closing price per share on the vesting date of the restricted stock or, if such date is not a trading day, the trading day immediately prior to such vesting date.

On January 22, 2009, the Company’s Board approved a share repurchase program that authorized the Company to purchase up to $10.0 million of the Company’s common stock. On January 14, 2016, the Company announced that its Board approved a continuation of the share repurchase program. The repurchase program does not obligate the Company to acquire any particular amount of common stock and the share repurchase authorization has no stated expiration date. All shares that have been acquired by the Company under this program were purchased in open-market transactions. The Company may evaluate whether to acquire additional shares of common stock under this program at its discretion and subject to applicable laws and regulations.

Item 3. Defaults upon Senior Securities

Not applicable.

Item 4. Mine Safety Disclosures

Not applicable.

Item 5. Other Information

Not applicable.

Item 6. Exhibits

The following documents are filed as a part of this report. Those exhibits previously filed and incorporated herein by reference are identified below. Exhibits not required for this report have been omitted.


Exhibit Number						Description

3.1						Amended and Restated Certificate of Incorporation of the Registrant. (Incorporated by reference to Exhibit 3.1 to the Registration Statement No. 333-33379 on Form S-1/A filed by the Company with the Securities and Exchange Commission on September 8, 1997.)

3.1.1						Amendment to Amended and Restated Certificate of Incorporation of the Registrant. (Incorporated by reference to Exhibit 3.1 to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 1999, filed by the Company with the Securities and Exchange Commission.)

3.1.2						Second Amendment to Amended and Restated Certificate of Incorporation of the Registrant (Incorporated by reference to Exhibit 3.1 to the Company’s Current Report on Form 8-K filed by the Company with the Securities and Exchange Commission on December 14, 2020.)

3.1.3						Third Amendment to Amended and Restated Certificate of Incorporation of the Registrant (Incorporated by reference to Exhibit 3.1 to the Company’s Current Report on Form 8-K filed by the Company with the Securities and Exchange Commission on November 4, 2021.)

3.1.4						Fourth Amendment to Amended and Restated Certificate of Incorporation of the Registrant (Incorporated by reference to Exhibit 3.1 to the Company’s Current Report on Form 8-K filed by the Company with the Securities and Exchange Commission on November 10, 2021.)

3.1.5						Fifth Certificate of Amendment to the Amended and Restated Certificate of Incorporation, as amended, of Sonida Senior Living, Inc. (Incorporated by reference to Exhibit 3.1 to the Company’s Current Report on Form 8-K filed by the Company with the Securities and Exchange Commission on June 16, 2023.)

3.1.6						Sixth Certificate of Amendment to the Amended and Restated Certificate of Incorporation, as amended, of Sonida Senior Living, Inc. (Incorporated by reference to Exhibit 3.1 to the Company’s Current Report on Form 8-K filed by the Company with the Securities and Exchange Commission on March 22, 2024.)

3.2						Second Amended and Restated Bylaws of the Registrant. (Incorporated by reference to Exhibit 3.1 to the Company’s Current Report on Form 8-K filed by the Company with the Securities and Exchange Commission on March 8, 2013.)

3.2.1						Amendment to the Second Amended and Restated Bylaws of the Registrant (Incorporated by reference to Exhibit 3.2 to the Company’s Current Report on Form 8-K filed by the Company with the Securities and Exchange Commission on November 10, 2021.)

3.2.2						Second Amendment to the Second Amended and Restated Bylaws of Registrant. (Incorporated by reference to Exhibit 3.1 to the Company’s Current Report on Form 8-K filed by the Company with the Securities and Exchange Commission on March 27, 2024.)

3.3						Certificate of Designation, Rights and Privileges of Series A Convertible Preferred Stock, par value $0.01, of the Company (Incorporated by reference to Exhibit 3.2 to the Company’s Current Report on Form 8-K filed by the Company with the Securities and Exchange Commission on November 4, 2021.)

31.1*						Certification of Principal Executive Officer required by Rule 13a-14(a) or Rule 15d-14(a)

31.2*						Certification of Principal Financial Officer required by Rule 13a-14(a) or Rule 15d-14(a)

32.1*						Certification of Principal Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

32.2*						Certification of Principal Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

101*						The following materials from the Company’s Quarterly Report on Form 10-Q for the three months ended March 31, 2025 formatted in Inline Extensible Business Reporting Language (iXBRL): (i) the Condensed Consolidated Statements of Operations, (ii) the Condensed Consolidated Balance Sheets, (iii) the Condensed Consolidated Statements of Cash Flows, (iv) the Condensed Consolidated Statements of Shareholders’ Equity and (v) related notes.

104*						Cover page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

*Filed herewith.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Sonida Senior Living, Inc.

(Registrant)


By:			/s/ BRANDON M. RIBAR
			Brandon M. Ribar
			President, Chief Executive Officer and Director
			(Principal Executive Officer)
			Date: May 12, 2025


By:			/s/ KEVIN J. DETZ
			Kevin J. Detz
			Executive Vice President and Chief Financial Officer
			(Principal Financial Officer)
			Date: May 12, 2025

EXHIBIT 31.1

SONIDA SENIOR LIVING, INC.

CERTIFICATIONS

I, Brandon M. Ribar, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Sonida Senior Living, Inc. (“Registrant”);

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, and cash flows of the Registrant as of, and for, the periods presented in this report;

4. The Registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and we have:

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) designed such internal controls over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) disclosed in this report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter (the Registrant’s fourth quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and

5. The Registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant’s auditors and the audit committee of the Registrant’s board of directors (or persons performing the equivalent function):

a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting.


			/s/ BRANDON M. RIBAR
			Brandon M. Ribar
			President and Chief Executive Officer
			(Principal Executive Officer)
			May 12, 2025

EXHIBIT 31.2

SONIDA SENIOR LIVING, INC.

CERTIFICATIONS

I, Kevin J. Detz, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Sonida Senior Living, Inc. (“Registrant”);

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting.


			/s/ KEVIN J. DETZ
			Kevin J. Detz
			Executive Vice President and Chief Financial Officer
			(Principal Financial Officer)
			May 12, 2025

EXHIBIT 32.1

Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the filing of the Quarterly Report of Sonida Senior Living, Inc. (the “Company”) on Form 10-Q for the period ended March 31, 2025 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Brandon M. Ribar, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to section 906 of the Sarbanes-Oxley Act of 2002, that:

1. The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended, and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.


			/s/ BRANDON M. RIBAR
			Brandon M. Ribar
			President and Chief Executive Officer
			(Principal Executive Officer)
			May 12, 2025

EXHIBIT 32.2

Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the filing of the Quarterly Report of Sonida Senior Living, Inc. (the “Company”) on Form 10-Q for the period ended March 31, 2025 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Kevin J. Detz, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to section 906 of the Sarbanes-Oxley Act of 2002, that:

1. The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended, and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.


			/s/ KEVIN J. DETZ
			Kevin J. Detz
			Executive Vice President and Chief Financial Officer
			(Principal Financial Officer)
			May 12, 2025

Cover Page - shares	3 Months Ended
Cover Page - shares	Mar. 31, 2025	May 08, 2025
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2025
Document Transition Report	false
Entity File Number	1-13445
Entity Registrant Name	Sonida Senior Living, Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	75-2678809
Entity Address, Address Line One	14755 Preston Road
Entity Address, Address Line Two	Suite 810
Entity Address, City or Town	Dallas
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	75254
City Area Code	972
Local Phone Number	770-5600
Title of 12(b) Security	Common Stock, $0.01 par value per share
Trading Symbol	SNDA
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding (in shares)		18,865,410
Amendment Flag	false
Document Fiscal Year Focus	2025
Document Fiscal Period Focus	Q1
Entity Central Index Key	0001043000
Current Fiscal Year End Date	--12-31

Condensed Consolidated Balance Sheets - USD ($)
$ in Thousands

Mar. 31, 2025

Dec. 31, 2024

Current assets

Cash and cash equivalents

$ 13,988

$ 16,992

Restricted cash

18,429

22,095

Accounts receivable, net of allowance for credit losses of $8.6 million and $7.9 million, respectively

16,463

18,965

Prepaid expenses and other assets

3,829

4,634

Derivative assets

975

1,403

Total current assets

53,684

64,089

Property and equipment, net

735,471

739,884

Investment in unconsolidated entity

10,221

10,943

Intangible assets, net

22,123

24,526

Other assets, net

2,980

2,479

Total assets (a)

^[1]

824,479

841,921

Current liabilities

Accounts payable

6,107

9,031

Accrued expenses

43,060

45,024

Current portion of debt, net of deferred loan costs

14,621

15,486

Deferred income

6,404

5,361

Federal and state income taxes payable

312

243

Other current liabilities

535

470

Total current liabilities

71,039

75,615

Long-term debt, net of deferred loan costs

636,273

635,904

Other long-term liabilities

1,201

793

Total liabilities (a)

^[1]

708,513

712,312

Commitments and contingencies (Note 12)

Redeemable preferred stock:

Series A convertible preferred stock, $0.01 par value; 41 shares authorized, 41 shares issued and outstanding as of March 31, 2025 and December 31, 2024

51,249

Equity:

Preferred stock

Common stock

189

190

Additional paid-in capital

491,334

491,819

Retained deficit

(432,753)

(420,224)

Total Sonida shareholders’ equity

58,770

71,785

Noncontrolling interest:

5,947

6,575

Total equity

64,717

78,360

Total liabilities, redeemable preferred stock and equity

$ 824,479

$ 841,921

[1]

The condensed consolidated balance sheets include the following amounts related to our consolidated Variable Interest Entity (VIE): $0.8 million and $5.0 million of Cash and cash equivalents; $1.7 million and $1.5 million of Restricted cash; $0.5 million and $0.3 million of Accounts receivable, net; and $27.9 million and $27.8 million of Property and equipment, net; $4.2 million and $4.7 million of Intangible assets, net; $2.6 million and $5.4 million of Accounts payable; $0.6 million and $0.9 million of Accrued expenses; $0.3 million and $0.2 million of Deferred income; $21.3 million and $21.3 million of Debt, net of deferred loan costs; and $0.2 million and $0.2 million of Other long-term liabilities as of March 31, 2025 and December 31, 2024, respectively.

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2025	Dec. 31, 2024
Allowance for doubtful accounts	$ 8,600	$ 7,900
Series A convertible preferred stock , par value (in USD per share)	$ 0.01	$ 0.01
Temporary equity, shares authorized (in shares)	41,000	41,000
Temporary equity, shares issued (in shares)	41,000	41,000
Temporary equity, shares outstanding (in shares)	41,000	41,000
Preferred stock, par value (in USD per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	15,000,000	15,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in USD per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	30,000,000	30,000,000
Common stock, shares issued (in shares)	18,878,000	18,992,000
Common stock, shares outstanding (in shares)	18,878,000	18,992,000
Cash and cash equivalents	$ 13,988	$ 16,992
Restricted cash	18,429	22,095
Accounts receivable, net of allowance	16,463	18,965
Property and equipment, net	735,471	739,884
Intangible assets, net	22,123	24,526
Accounts payable	6,107	9,031
Accrued expenses	43,060	45,024
Deferred income	6,404	5,361
Long-term debt, net of deferred loan costs	636,273	635,904
Other long-term liabilities	1,201	793
Variable Interest Entity
Cash and cash equivalents	800	5,000
Restricted cash	1,700	1,500
Accounts receivable, net of allowance	500	300
Property and equipment, net	27,900	27,800
Intangible assets, net	4,200	4,700
Accounts payable	2,600	5,400
Accrued expenses	600	900
Deferred income	300	200
Long-term debt, net of deferred loan costs	21,300	21,300
Other long-term liabilities	$ 200	$ 200

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2025	Mar. 31, 2024
Revenues:
Total revenues	$ 91,923	$ 67,438
Expenses:
Operating expense	60,414	46,317
General and administrative expense	8,472	6,812
Transaction, transition and restructuring costs	610	399
Depreciation and amortization expense	13,686	9,935
Managed community reimbursement expense	11,607	6,107
Total expenses	94,789	69,570
Other income (expense):
Interest income	242	139
Interest expense	(9,446)	(8,591)
Gain on extinguishment of debt, net	0	38,148
Loss from equity method investment	(330)	0
Other expense, net	(550)	(479)
Income (loss) before provision for income taxes	(12,950)	27,085
Provision for income taxes	(75)	(66)
Net income (loss)	(13,025)	27,019
Less: Net loss attributable to noncontrolling interests	496	0
Net income (loss) attributable to Sonida shareholders	(12,529)	27,019
Dividends on Series A convertible preferred stock	(1,409)	0
Undeclared dividends on Series A convertible preferred stock	0	(1,335)
Less: Undistributed earnings allocated to participating securities	0	(2,849)
Net income (loss) attributable to common shareholders	$ (13,938)	$ 22,835
Weighted average common shares outstanding — basic (in shares)	18,047	9,861
Weighted average common shares outstanding — diluted (in shares)	18,047	10,562
Basic net loss per common share (in USD per share)	$ (0.77)	$ 2.32
Diluted net loss per common share (in USD per share)	$ (0.77)	$ 2.16
Resident revenue
Revenues:
Total revenues	$ 79,255	$ 60,737
Management fees
Revenues:
Total revenues	1,061	594
Managed community reimbursement revenue
Revenues:
Total revenues	$ 11,607	$ 6,107

Condensed Consolidated Statements of Changes in Equity (Deficit) (Unaudited) - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Retained Deficit	Noncontrolling Interests
Beginning balance (in shares) at Dec. 31, 2023		8,178
Beginning balance at Dec. 31, 2023	$ (115,091)	$ 82	$ 302,992	$ (418,165)	$ 0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock, net of issuance costs (in shares)		5,026
Issuance of common stock, net of issuance costs	47,641	$ 50	47,591
Preferred stock dividends	(1,335)		(1,335)
Stock-based plan activity (in shares)		(7)
Stock-based plan activity	(213)		(213)
Non-cash stock-based compensation	575		575
Net income (loss)	27,019			27,019
Ending balance (in shares) at Mar. 31, 2024		13,197
Ending balance at Mar. 31, 2024	(41,404)	$ 132	349,610	(391,146)	0
Beginning balance (in shares) at Dec. 31, 2024		18,992
Beginning balance at Dec. 31, 2024	78,360	$ 190	491,819	(420,224)	6,575
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Preferred stock dividends	(1,409)		(1,409)
Capital distributions to noncontrolling interest	(132)				(132)
Stock-based plan activity (in shares)		(114)
Stock-based plan activity	(50)	$ (1)	(49)
Non-cash stock-based compensation	973		973
Net income (loss)	(13,025)			(12,529)	(496)
Ending balance (in shares) at Mar. 31, 2025		18,878
Ending balance at Mar. 31, 2025	$ 64,717	$ 189	$ 491,334	$ (432,753)	$ 5,947

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2025	Mar. 31, 2024
Cash flows from operating activities:
Net income (loss)	$ (13,025)	$ 27,019
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization	13,686	9,935
Amortization of deferred loan costs	421	324
Gain on sale of assets, net	0	(192)
Loss on derivative instruments, net	490	527
Gain on extinguishment of debt, net	0	(38,148)
Loss from equity method investment	330	0
Provision for credit losses	695	397
Non-cash stock-based compensation expense	973	575
Other non-cash items	179	(3)
Changes in operating assets and liabilities:
Accounts receivable, net	1,807	(2,726)
Prepaid expenses	805	1,063
Other assets, net	(62)	(41)
Accounts payable and accrued expenses	(3,476)	(3,123)
Federal and state income taxes payable	69	73
Deferred income	1,043	214
Customer deposits	(112)	1
Net cash provided by (used in) operating activities	3,823	(4,105)
Cash flows from investing activities:
Return of investment in unconsolidated entity	392	0
Capital expenditures	(8,337)	(5,762)
Proceeds from sale of assets	0	631
Net cash used in investing activities	(7,945)	(5,131)
Cash flows from financing activities:
Proceeds from issuance of common stock, net of issuance costs	0	47,641
Proceeds from notes payable	0	24,830
Repayments of notes payable	(918)	(41,999)
Distributions to noncontrolling investors in joint ventures	(132)	0
Purchase of derivative assets	0	(554)
Dividends paid on Series A convertible preferred stock	(1,409)	0
Deferred loan costs paid	(38)	(549)
Other financing costs	(51)	(220)
Net cash provided by (used in) financing activities	(2,548)	29,149
Increase (decrease) in cash and cash equivalents and restricted cash	(6,670)	19,913
Cash, cash equivalents, and restricted cash at beginning of period	39,087	17,750
Cash, cash equivalents, and restricted cash at end of period	32,417	37,663
Cash paid during the period for:
Interest	8,806	6,353
Income taxes paid (refunds received), net	7	(7)
Non-cash investing and financing activities:
Undeclared dividends on Series A convertible preferred stock	0	1,335
Non-cash additions of property and equipment	1,412	498
Non-cash right-of-use assets	$ 643	$ 0

Basis of Presentation	3 Months Ended
Basis of Presentation	Mar. 31, 2025
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of Presentation Organization and Business Sonida Senior Living, Inc., a Delaware corporation (together with its subsidiaries, the “Company,” “we,” “our,” “us,” or “Sonida”), is a leading owner, operator and investor in independent living, assisted living and memory care communities and services for senior adults in the United States in terms of resident capacity. The Company owns, operates, manages and invests in senior housing communities throughout the United States. As of March 31, 2025, the Company owned, managed or invested in 94 senior housing communities in 20 states with an aggregate capacity of approximately 10,000 residents1, including 81 owned senior housing communities (including four owned through joint venture investments in consolidated entities, four owned through a joint venture investment in an unconsolidated entity, and one unoccupied) and 13 communities that the Company manages on behalf of a third-party. Principles of Consolidation The accompanying condensed consolidated financial statements include the financial statements of Sonida Senior Living, Inc., its wholly-owned subsidiaries, and other entities in which the Company has a controlling financial interest. All material intercompany balances and transactions have been eliminated in consolidation. The Company reports investments in unconsolidated entities over whose operating and financial policies it has the ability to exercise significant influence under the equity method of accounting. The Company evaluates its potential variable interest entity (“VIE”) relationships under certain criteria as provided for in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 810, Consolidation (“ASC 810”). ASC 810 broadly defines a VIE as an entity with one or more of the following characteristics: (a) the total equity investment at risk is insufficient to finance the entity's activities without additional subordinated financial support; (b) as a group, the holders of the equity investment at risk lack (i) the ability to make decisions about the entity's activities through voting or similar rights, (ii) the obligation to absorb the expected losses of the entity, or (iii) the right to receive the expected residual returns of the entity; or (c) the equity investors have voting rights that are not proportional to their economic interests, and substantially all of the entity's activities either involve, or are conducted on behalf of, an investor that has disproportionately few voting rights. The Company performs this evaluation on an ongoing basis and consolidates any VIEs for which the Company is determined to be the primary beneficiary, as determined by the Company's power to direct the VIEs activities and the obligation to absorb its losses or the right to receive its benefits, which are potentially significant to the VIE. As of March 31, 2025, the Company has a joint venture, Stone JV LLC (“Stone JV”) which is treated as an unconsolidated entity. See “Note 3–Investments.” As of March 31, 2025, the Company was a 51% owner in two joint ventures (collectively, the “Palatine JVs”) with affiliates of Palatine Capital Partners. The Company has evaluated its investment in the Palatine JVs under ASC 810. The Company has determined that it has the power to direct the activities of the VIE that most significantly impact its economic performance and is the primary beneficiary of the VIE in accordance with ASC 810. Accordingly, the Company has consolidated the activity of the Palatine JVs into its consolidated financial statements for the periods ended March 31, 2025 and December 31, 2024. Interim Unaudited Financial Information The accompanying condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2024. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been omitted from this Quarterly Report on Form 10-Q pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). The results for the interim periods shown in this report are not necessarily indicative of future financial results. In the opinion of management, the accompanying unaudited condensed consolidated financial statements include all adjustments, including normal recurring items, necessary to present fairly our condensed consolidated financial position as of March 31, 2025 and December 31, 2024, and our condensed consolidated results of operations and cash flows for the periods ended March 31, 2025 and 2024. Reclassifications Certain amounts previously reflected in the prior year condensed consolidated financial statements have been reclassified to conform to our March 31, 2025 presentation. The condensed consolidated statements of operations as of March 31, 2024 reflects reclassifying transaction, transition and restructuring costs from “General and administrative expense” to “Transaction, transition and restructuring costs.” Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. These estimates include such items related to the accounting for: income taxes, including assessments of probabilities of realization of income tax benefits; other contingencies; allowances for uncollectible accounts receivable; impairment of long-lived assets, including applicable cash flow projections, holding periods and fair value evaluations; stock-based compensation; fair values of assets and liabilities acquired in asset acquisitions, fair values of our equity method investments; and depreciation and amortization, including determination of estimated useful lives. Actual results could differ from those estimates.

Summary of Significant Accounting Policies

3 Months Ended

Mar. 31, 2025

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Cash, Cash Equivalents, and Restricted Cash

The following table sets forth our cash, cash equivalents, and restricted cash (in thousands):


	March 31, 2025		December 31, 2024
Cash and cash equivalents	$	13,988	$	16,992
Restricted cash:
Property tax and insurance reserves	4,564		6,156
Lender reserves	3,345		6,013
Capital expenditures reserves	6,605		6,210
Escrow deposit	200		—
Deposits pursuant to outstanding letters of credit	3,524		3,524
Other reserves	191		192
Total restricted cash	18,429		22,095
Total cash, cash equivalents, and restricted cash	$	32,417	$	39,087

Long-Lived Assets

amount exceeds fair value. There were no impairments on long-lived assets during the three months ended March 31, 2025 and 2024.

Leases

Acquisitions

Investment in Unconsolidated Entities

Revenue Recognition

Credit Risk and Allowance for Credit Losses

Concentration of Credit Risk and Business Risk

Income Taxes

Redeemable Preferred Stock

Derivative Instruments

Net Income Per Common Share

Segment Reporting

Recently Issued Accounting Pronouncements Not Yet Adopted

Improvements to Income Statement Expenses

Improvements to Income Tax Disclosures

Investments and Acquisitions	3 Months Ended
Investments and Acquisitions	Mar. 31, 2025
Business Combination [Abstract]
Investments and Acquisitions	Investments and Acquisitions Investment in Consolidated VIE In July 2024, the Company entered into the Palatine JVs with affiliates of Palatine Capital Partners, which acquired four senior living communities located in Texas (3) and Georgia (1). The Company is a 51% owner in the joint ventures. The noncontrolling interest of the Palatine JVs is reported on the noncontrolling interest line items in the Company's condensed consolidated financial statements. Investment in Stone Unconsolidated Entity In May 2024, the Stone JV purchased four communities in the Midwest. KZ Stone Investor LLC is the controlling managing member of the Stone JV and owned 67.29% of the entity as of March 31, 2025. Sonida owned a 32.71% noncontrolling interest in the Stone JV as of March 31, 2025. Sonida operates the four communities for a management fee based on the gross revenues of the applicable communities, as well as an incentive management fee based on earnings before interest, taxes, depreciation, amortization, rent, and management fees, and other customary terms and conditions. The Company has evaluated its investment in the Stone JV under ASC 810 and determined that it does not have the power to direct the activities of the VIE that most significantly impact its economic performance and is not the primary beneficiary of the VIE. The Company's interests in the VIE are, therefore, accounted for under the equity method of accounting. The carrying amount of the Company's investment in the unconsolidated venture and maximum exposure to loss as a result of the Company's ownership interest in the Stone JV was $10.2 million as of March 31, 2025, which is included in investment in unconsolidated entity on the accompanying condensed consolidated balance sheet. For the three months ended March 31, 2025, the Company received a return of its investment of $0.4 million in its unconsolidated entity. The Company evaluates the realization of its investment in unconsolidated entities accounted for using the equity method if circumstances indicate the Company's investment is other than temporarily impaired. For the three months ended March 31, 2025, there were no impairments. Purchase and Sale Agreement During the quarter ended March 31, 2025, the Company signed a purchase and sale agreement for one community located in Georgia with a purchase price of $11.0 million. The acquisition is anticipated to close in the second quarter subject to due diligence and closing conditions.

Property and Equipment, net

3 Months Ended

Mar. 31, 2025

Property, Plant and Equipment [Abstract]

Property and Equipment, net

As of March 31, 2025 and December 31, 2024, property and equipment, net, which include assets under finance leases, consist of the following (in thousands):


	Asset Lives	March 31, 2025		December 31, 2024
Land	NA	$	73,405	$	73,405
Land improvements	5 to 20 years	32,548		31,764
Buildings and building improvements	10 to 40 years	992,993		989,054
Furniture and equipment	5 to 10 years	68,195		66,600
Automobiles	5 to 7 years	2,997		2,923
Assets under financing leases and leasehold improvements (1)	5 to 10 years	5,820		5,607
Construction in progress	NA	1,354		1,039
Total property and equipment		$	1,177,312	$	1,170,392
Less accumulated depreciation and amortization		(441,841)		(430,508)
Total property and equipment, net		$	735,471	$	739,884

__________

Intangible Assets

3 Months Ended

Mar. 31, 2025

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Intangible Assets


	March 31,		December 31,		Weighted Average Life Remaining
	2025		2024		(in years)
In-place leases, gross	$	28,960	$	28,960
Accumulated amortization	(6,837)		(4,434)
Intangibles, net	$	22,123	$	24,526	2.5


Future amortization:
2025, remaining	$	6,726
2026	9,080
2027	6,317
2028	—
2029	—
Total Amortization	$	22,123

Accrued Expenses

3 Months Ended

Mar. 31, 2025

Payables and Accruals [Abstract]

Accrued Expenses

The following is a summary of accrued expenses as of March 31, 2025 and December 31, 2024 (in thousands):


	March 31, 2025		December 31, 2024
Accrued payroll and employee benefits	$	22,681	$	20,894
Accrued interest (1)	8,528		8,499
Accrued taxes	6,009		8,050
Accrued professional fees	3,013		3,315
Accrued other expenses	2,829		4,266
Total accrued expenses	$	43,060	$	45,024

__________

Debt

3 Months Ended

Mar. 31, 2025

Debt Disclosure [Abstract]

Debt

Long-term debt balances, including associated interest rates and maturities consists of the following (in thousands):


		Weighted average interest rate		March 31, 2025		December 31, 2024
	Maturity Date	March 31, 2025	December 31, 2024
Senior secured revolving credit facility	2027	6.9%	7.3%	$	60,000	$	60,000
Fixed rate mortgage notes payable	2025 to 2045	4.6%	4.6%	400,120		400,229
Variable rate mortgage notes payable (1)	2026 to 2029	6.5%	6.5%	171,530		171,530
Notes payable - consolidated VIE	2025 to 2027	7.1%	7.2%	21,690		21,690
Notes payable - insurance	2025	6.9%	6.9%	899		1,707
Total debt				654,239		655,156
Deferred loan costs, net				3,345		3,766
Total debt, net of deferred loan costs				650,894		651,390
Current portion of debt				14,621		15,486
Long-term debt, net				$	636,273	$	635,904

The following schedule summarizes our debt payable as of March 31, 2025 (in thousands):


Principal payments due in:
2025	$	16,254
2026	133,055
2027	72,597
2028	3,395
2029	408,562
Thereafter	20,376
Total debt, excluding deferred loan costs	$	654,239

(1) See “Note 14–Fair Value” for interest rate cap agreements on variable rate mortgage notes payable.

2024 Fannie Mae Loan Modifications

Senior Secured Revolving Credit Facility

Texas Loan Modification

2024 Loan Repurchase Agreement and Ally Term Loan Expansion

2024 Ally Loan Amendment

Notes Payable - Consolidated VIE

Notes Payable - Insurance

As of March 31, 2025, the Company had finance agreements for certain insurance policies totaling $0.9 million, with a fixed interest rate of 6.85%, and principal being repaid over ten-month terms.

Deferred Loan Costs

Financial Covenants

As of March 31, 2025, the Company was in compliance with the financial covenants of its debt agreements.

Securities Financing

3 Months Ended

Mar. 31, 2025

Equity [Abstract]

Securities Financing

Series A Preferred Stock

The following schedule summarizes our Series A Preferred Stock as of March 31, 2025 and December 31, 2024 (in thousands):


	Preferred Stock
	Shares	Amount
Balance as of December 31, 2024	41	$	51,249

Balance as of March 31, 2025	41	$	51,249

Outstanding Warrants

Revenue

3 Months Ended

Mar. 31, 2025

Revenue from Contract with Customer [Abstract]

Revenue

Revenue for the three months ended March 31, 2025 and 2024 is comprised of the following components (in thousands):


	Three Months Ended March 31,
	2025		2024
Housing and support services	$	78,411	$	59,984
Community fees	534		459
Ancillary services	310		294

Resident revenue	79,255		60,737
Management fees	1,061		594
Managed community reimbursement revenue	11,607		6,107
Total revenues	$	91,923	$	67,438

Community fees, ancillary services, management fees, and community reimbursement revenue represent revenue from contracts with customers in accordance with GAAP.

Net Income (Loss) Per Share

3 Months Ended

Mar. 31, 2025

Earnings Per Share [Abstract]

Net Income (Loss) Per Share

conversion of all dilutive securities. The Series A Preferred Stock is considered participating securities for the purposes of the Company's EPS calculation.

The following table sets forth the computation of basic and diluted net income (loss) per share (in thousands, except for per share amounts):


	Three Months Ended March 31,
	2025		2024
Basic net income (loss) per common share calculation:
Net income (loss) attributable to Sonida shareholders	$	(12,529)	$	27,019
Less: Dividends on Series A Preferred Stock	(1,409)		—
Less: Undeclared dividends on Series A Preferred Stock	—		(1,335)
Less: Undistributed earnings allocated to participating securities	—		(2,849)
Net income (loss) attributable to common shareholders	$	(13,938)	$	22,835
Weighted average shares outstanding — basic	18,047		9,861
Basic net income (loss) per share	$	(0.77)	$	2.32

Diluted net income (loss) per common share calculation:
Net income (loss) attributable to common shareholders	$	(13,938)	$	22,835
Weighted average shares outstanding — diluted	18,047		10,562
Diluted net income (loss) per share	$	(0.77)	$	2.16


	Three Months Ended March 31,
(shares in thousands)	2025	2024
Weighted average shares outstanding - diluted reconciliation:
Weighted average shares outstanding — basic	18,047	9,861
Dilutive effect of share-based instruments	—	701

Weighted average shares outstanding — diluted	18,047	10,562

The following weighted-average shares of securities were not included in the computation of diluted net income (loss) per common share as their effect would have been antidilutive:


	Three Months Ended March 31,
(shares in thousands)	2025	2024
Warrants	1,031	1,031
Series A Preferred Stock (if converted)	1,281	1,230
Restricted stock awards	885	22
Restricted stock units	5	—
Stock options	10	10

Total	3,212	2,293

Stock-Based Compensation	3 Months Ended
Stock-Based Compensation	Mar. 31, 2025
Share-Based Payment Arrangement [Abstract]
Stock-Based Compensation	Stock-Based Compensation The Company uses equity awards as a long-term retention program that is intended to attract, retain and provide incentives for employees, officers, and directors and to more closely align stockholder and employee interests. The Company recognizes compensation expense for all of its share-based stock awards based on their fair values. The Company recognized $1.0 million and $0.6 million in stock-based compensation expense for the three months ended March 31, 2025 and March 31, 2024, respectively. As of March 31, 2025, the Company had $5.9 million in unrecognized stock compensation expense.

Commitments and Contingencies	3 Months Ended
Commitments and Contingencies	Mar. 31, 2025
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies As of March 31, 2025, the Company had contractual commitments of $7.3 million related to future renovations and technology enhancements to its communities, which are expected to be substantially expended during 2025. The Company has a remaining deferred purchase price of $1.2 million for the Palatine JVs acquisition. If a capital call notice is given, Sonida would be required to contribute $1.2 million on behalf of its JV partner before it would begin to fund their pro rata share of capital calls. The Company has claims incurred in the normal course of its business. Most of these claims are believed by management to be covered by insurance, subject to deductibles, normal reservations of rights by the insurance companies and possibly subject to certain exclusions in the applicable insurance policies. Whether or not covered by insurance, these claims, in the opinion of management, based on advice of legal counsel, should not have a material impact on the condensed consolidated financial statements of the Company.

Related Party Transactions	3 Months Ended
Related Party Transactions	Mar. 31, 2025
Related Party Transactions [Abstract]
Related Party Transactions	Related Party Transactions Conversant As of March 31, 2025, Conversant and its affiliates have a controlling interest in the Company. See “Note 8–Securities Financing.” Stone Joint Venture As of March 31, 2025, the Company manages the four communities owned by the Stone JV under a management agreement and also provides reporting services for the joint venture. See “N ote 3–Investments.” During the three months ended March 31, 2025, the Company received a distribution of $0.4 million as a return of its investment in the Stone JV. In September 2024, the Stone JV entered into a $35.0 million mortgage loan with a 36-month term and a fixed interest rate equal to 7.3% backed by the four communities owned by the Stone JV. As of March 31, 2025 and December 31, 2024, the outstanding balance of the Stone JV loan was $35.0 million and the Company guaranteed $14.0 million of the loan. Palatine Joint Ventures As of March 31, 2025, the Company manages the four communities owned by subsidiaries of the Palatine JVs under a management agreement and also provides reporting services for the two joint ventures. See “N ote 3–Investments.”

Fair Value Measurements

3 Months Ended

Mar. 31, 2025

Fair Value Disclosures [Abstract]

Fair Value Measurements

Assets and Liabilities Measured at Fair Value on a Recurring Basis

Financial Instruments Not Reported at Fair Value


	March 31, 2025				December 31, 2024
	Carrying Amount		Fair Value		Carrying Amount		Fair Value


Cash and cash equivalents	$	13,988	$	13,988	$	16,992	$	16,992
Restricted cash	18,429		18,429		22,095		22,095
Debt, excluding deferred loan costs	$	654,239	$	602,332	$	655,156	$	621,597

We believe the carrying amount of cash and cash equivalents, restricted cash, accounts receivable, and accounts payable, and accrued liabilities approximate fair value due to their short-term nature.

Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis

Derivatives and Hedging

3 Months Ended

Mar. 31, 2025

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives and Hedging

The following table presents the fair values of derivative assets and liabilities in the condensed consolidated balance sheets (in thousands):


	March 31, 2025
	Derivative Asset				Derivative Liability
	Notional Amount		Fair Value		Notional Amount		Fair Value

Interest rate cap (SOFR-based)	$	185,109	$	975	$	—	$	—
Total derivatives, net	$	185,109	$	975	$	—	$	—


	December 31, 2024
	Derivative Asset				Derivative Liability
	Notional Amount		Fair Value		Notional Amount		Fair Value

Interest rate cap (SOFR-based)	$	185,145	$	1,465	$	—	$	—
Total derivatives, net	$	185,145	$	1,465	$	—	$	—

The following table presents the effect of the derivative instruments on the condensed consolidated statements of operations (in thousands):


	Three Months Ended March 31,
	2025		2024
Derivative not designated as hedge
Interest rate cap
Loss on derivatives not designated as hedges included in interest expense	$	(490)	$	(527)

Segment Information

3 Months Ended

Mar. 31, 2025

Segment Reporting [Abstract]

Segment Information

The following table presents resident revenue, community operating expense and community net operating income by reportable segment (in thousands):


	Three months ended March 31,
	2025		2024
Resident revenue	$	79,255	$	60,737
Community operating expense:
Labor	38,299		29,117
Food	3,428		3,099
Utilities	4,001		3,310
Other community operating expense (1)	13,386		10,296
Total community operating expense	59,114		45,822
Community net operating income	$	20,141	$	14,915

__________

(1) Includes community maintenance, software expense, supplies, insurance, real estate taxes, marketing expense, and other overhead expense.

A reconciliation of segment revenues to consolidated total revenues is as follows (in thousands):


	Three months ended March 31,
	2025		2024
Segment resident revenue	$	79,255	$	60,737
All other non-segment revenue:
Management fees	1,061		594
Managed community reimbursement revenue	11,607		6,107
Total revenues	$	91,923	$	67,438

A reconciliation of segment net operating income to the Company’s condensed consolidated statements of operations is as follows (in thousands):


	Three months ended March 31,
	2025		2024
Segment net operating income	$	20,141	$	14,915
Management fees	1,061		594
Other operating expenses	(1,300)		(495)
General and administrative expense	(8,472)		(6,812)
Transaction, transition and restructuring costs	(610)		(399)
Depreciation and amortization expense	(13,686)		(9,935)

Interest income	242		139
Interest expense	(9,446)		(8,591)
Gain on extinguishment of debt, net	—		38,148
Loss from equity method investment	(330)		—
Other expense, net	(550)		(479)
Provision for income taxes	(75)		(66)
Net Income (Loss)	$	(13,025)	$	27,019

Subsequent Events	3 Months Ended
Subsequent Events	Mar. 31, 2025
Subsequent Events [Abstract]
Subsequent Events	Subsequent Event Purchase and Sale Agreement In May 2025, the Company signed a purchase and sale agreement for one community located in Florida with a purchase price of $11.0 million. The acquisition is contingent upon securing financing and customary closing conditions.

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Thousands	Mar. 31, 2025	Mar. 31, 2024
Pay vs Performance Disclosure
Net income (loss) attributable to Sonida shareholders	$ (12,529)	$ 27,019

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Mar. 31, 2025
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

Summary of Significant Accounting Policies (Policies)	3 Months Ended
Summary of Significant Accounting Policies (Policies)	Mar. 31, 2025
Accounting Policies [Abstract]
Reclassifications	Reclassifications Certain amounts previously reflected in the prior year condensed consolidated financial statements have been reclassified to conform to our March 31, 2025 presentation. The condensed consolidated statements of operations as of March 31, 2024 reflects reclassifying transaction, transition and restructuring costs from “General and administrative expense” to “Transaction, transition and restructuring costs.”
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. These estimates include such items related to the accounting for: income taxes, including assessments of probabilities of realization of income tax benefits; other contingencies; allowances for uncollectible accounts receivable; impairment of long-lived assets, including applicable cash flow projections, holding periods and fair value evaluations; stock-based compensation; fair values of assets and liabilities acquired in asset acquisitions, fair values of our equity method investments; and depreciation and amortization, including determination of estimated useful lives. Actual results could differ from those estimates.
Cash, Cash Equivalents, and Restricted Cash	Cash, Cash Equivalents, and Restricted Cash The Company considers all highly liquid investments with original maturities of three months or less at the date of acquisition to be cash equivalents. The Company has deposits in banks that exceed Federal Deposit Insurance Corporation insurance limits. Management believes that credit risk related to these deposits is minimal. Restricted cash consists of reserve accounts for property insurance, real estate taxes, capital expenditures, derivatives, and debt service required by certain loan agreements. In addition, restricted cash includes deposits required by certain counterparties as collateral pursuant to letters of credit which must remain so long as the letters of credit are outstanding, which are subject to renewal annually
Long-Lived Assets	Long-Lived Assets Property and equipment are stated at cost and depreciated on a straight-line basis over the estimated useful lives of the assets. At each balance sheet date, the Company reviews the carrying value of its property and equipment to determine if facts and circumstances suggest that they may be impaired or that the depreciation period may need to be changed. The Company considers internal factors such as net operating losses along with external factors relating to each asset, including contract changes, local market developments, and other publicly available information to determine whether impairment indicators exist. If an indicator of impairment is identified, recoverability of an asset group is assessed by comparing its carrying amount to the estimated future undiscounted net cash flows expected to be generated by the asset group through operation or disposition, calculated utilizing the lowest level of identifiable cash flows. If this comparison indicates that the carrying amount of an asset group is not recoverable, the Company estimates fair value of the asset group and records an impairment loss when the carrying amount exceeds fair value. There were no impairments on long-lived assets during the three months ended March 31, 2025 and 2024. In evaluating our long-lived assets for impairment, we undergo continuous evaluations of property level performance and real estate trends, and management makes several estimates and assumptions, including, but not limited to, the projected date of disposition, estimated sales price, and future cash flows of each property during our estimated holding period. If our analysis or assumptions regarding the projected cash flows expected to result from the use and eventual disposition of our properties change, we incur additional costs and expenses during the holding period, or our expected hold periods change, we may incur future impairment losses.
Leases	Leases We determine if a contract contains a lease at its inception based on whether or not the Company has the right to control the asset during the contract period and other facts and circumstances. We are the lessee in a lease contract when we obtain the right to control the asset. Operating lease right-of-use (“ROU”) assets represent our right to use an underlying asset for the lease term and are included in other assets, net in our condensed consolidated balance sheet. Operating lease liabilities represent our obligation to make lease payments arising from the lease and are included in other current liabilities and other long-term liabilities in our condensed consolidated balance sheet. Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at the commencement date. When determining the lease term, we include renewal or termination options that we are reasonably certain to exercise. Leases with a lease term of 12 months or less at inception are not recorded in our condensed consolidated balance sheet. Operating lease expense is recognized on a straight-line basis over the lease term in our condensed consolidated statement of operations. As the rates implicit in our leases are not readily determinable, we use our local incremental borrowing rate based on the information available at the commencement date in determining the present value of future payments. When our contracts contain lease and non-lease components, we account for both components as a single lease component.
Acquisitions	Acquisitions We make certain judgments to determine whether a transaction should be accounted for as a business combination or an asset acquisition. These judgments include the assessment of the inputs, processes, and outputs associated with an acquired set of activities and whether the fair value of total assets acquired is concentrated to a single identifiable asset or group of similar assets. We account for a transaction as a business combination when the assets acquired include inputs and one or more substantive processes that, together, significantly contribute to the ability to create outputs and the total fair value of the assets acquired are not concentrated to a single identifiable asset or group of similar assets. Otherwise, we account for the transaction as an asset acquisition. Upon the acquisition of new communities accounted for as an acquisition of assets, we recognize the assets acquired and the liabilities assumed as of the acquisition date, measured at their relative fair values using Level 3 inputs at the date of acquisition including estimates of appropriate discount rates and capitalization rate once we have determined the fair value of each of these assets and liabilities. Relative fair values may be based on appraisals, internal analyses of recently acquired and existing comparable properties in the Company’s portfolio, other market data, and internal marketing and leasing activities. The acquisition date is the date on which we obtain control of the real estate property. The assets acquired and liabilities assumed consist of land, inclusive of associated rights, buildings, assumed debt, and identified intangible assets and liabilities. Above-market and below-market in-place lease values of acquired properties are recorded based on the net present value of the difference between (i) the contractual amounts to be paid pursuant to the in-place leases and (ii) Sonida’s estimate of the fair market lease rates for the corresponding in-place lease measured over a period equal to the remaining non-cancelable terms of the leases (including the below-market fixed-rate renewal period, if applicable). Favorable above-market in-place leases represent the value of the contractual monthly rental payments that are more than the current market rent at communities as acquired in recent acquisitions. Favorable above-market in-place leases are amortized to depreciation and amortization expense on a straight-line basis over their estimated remaining lease terms and are included in intangible assets, net on the accompanying consolidated balance sheets. Unfavorable below-market in-place leases represent the value of the contractual monthly rental payments that are less than the current market rent at communities as acquired in recent acquisitions. Unfavorable below-market in-place leases are amortized to depreciation and amortization expense on a straight-line basis over their estimated remaining lease terms, and are included in other long-term liabilities on the accompanying consolidated balance sheets.
Investment in Unconsolidated Entities	Investment in Unconsolidated Entities The Company reports investments in unconsolidated entities that it has the ability to exercise significant influence under the equity method of accounting. The initial carrying amount of investments in unconsolidated entities is based on the amount paid to purchase the investment. The Company's reported share of earnings from an unconsolidated entity is adjusted for the impact, if any, of basis differences between its carrying amount of the equity investment and its share of the investment’s underlying assets. Distributions received from an investee are recognized as a reduction in the carrying amount of the investment. The Company evaluates the realization of its investments in ventures accounted for using the equity method if circumstances indicate that the Company's investments are other than temporarily impaired. A current fair value of an investment that is less than its carrying amount may indicate a loss in value of the investment. If the Company determines that an equity method investment is other than temporarily impaired, it is recorded at its fair value with an impairment charge recognized for the difference between its carrying amount and fair value.
Revenue Recognition	Revenue Recognition Resident revenue consists of fees for basic housing and certain support services and fees associated with additional housing and expanded support requirements such as assisted living care, memory care, and ancillary services. Basic housing and certain support services revenue is recorded when services are rendered, and amounts billed are due from residents in the period in which the rental and other services are provided. Residency agreements are generally short term in nature with durations of one year or less and are typically terminable by either party, under certain circumstances, upon providing 30 days’ notice, unless state law provides otherwise, with resident fees billed monthly in advance. Revenue for certain ancillary services is recognized as services are provided, and includes fees for services such as medication management, daily living activities, beautician/barber, laundry, television, guest meals, pets, and parking, which are generally billed monthly in arrears. The Company’s senior housing communities have residency agreements that generally require the resident to pay a community fee and other amounts prior to moving into the community, which are initially recorded by the Company as deferred revenue. Community fees are recognized evenly over the term of the residency agreements which is generally 12 months. The Company had contract liabilities for deferred fees paid by our residents prior to the month housing and support services were to be provided totaling $6.4 million and $5.4 million, respectively, which is reported as deferred income within current liabilities of the Company’s condensed consolidated balance sheets as of March 31, 2025 and December 31, 2024. As of March 31, 2025, $4.9 million of deferred revenue has been recognized from the prior year. As of March 31, 2024, $3.6 million of deferred revenue was recognized from the year ended December 31, 2023. Revenues from Medicaid programs accounted for 8.4% and 11.6% of the Company’s revenue for the three months ended March 31, 2025 and 2024, respectively. Resident revenues for Medicaid residents were recorded at the reimbursement rates as the rates were set prospectively by the applicable state upon the filing of an annual cost report. None of the Company’s communities were providers of services under the Medicare program for the three months ended March 31, 2025 and 2024. Laws and regulations governing the Medicaid program are complex and subject to interpretation. The Company believes that it is in compliance with all applicable laws and regulations and is not aware of any pending or threatened investigations involving allegations of potential wrongdoing that would have a material effect on its condensed consolidated financial statements. While no such regulatory inquiries have been made, compliance with such laws and regulations can be subject to future government review and interpretation as well as significant regulatory action including fines, penalties, and exclusion from the Medicaid program. The Company has management agreements whereby it manages certain communities on behalf of third-party owners and certain community investments under contracts that provide for periodic management fee payments to the Company. The Company has determined that all community management activities are a single performance obligation, which is satisfied over time as the services are rendered. Such revenue is included in “management fees” on the Company’s condensed consolidated statements of operations. The Company is also reimbursed by the owners of the communities for costs incurred. Such revenue is included in “managed community reimbursement revenue” on the Company’s condensed consolidated statements of operations. The related costs are included in “managed community reimbursement expense” on the Company’s condensed consolidated statements of operations. See “Note 9–Revenue.”
Credit Risk and Allowance for Credit Losses	Credit Risk and Allowance for Credit Losses The Company’s resident accounts receivable are generally due within 30 days after the date billed. Accounts receivable are reported net of an allowance for credit losses of $8.6 million and $7.9 million as of March 31, 2025 and December 31, 2024, respectively, and represent the Company’s estimate of the amount that ultimately will be collected. The adequacy of the Company’s allowance for credit losses is reviewed on an ongoing basis, using historical payment trends, write-off experience, analyses of receivable portfolios by payor source and aging of receivables, as well as a review of specific accounts, and adjustments are made to the allowance, as necessary. Credit losses on resident receivables have historically been within management’s estimates, and management believes that the allowance for credit losses adequately provides for expected losses.
Concentration of Credit Risk and Business Risk	Concentration of Credit Risk and Business Risk Substantially all of our revenues are derived from senior living communities we own and senior living communities that we manage. Senior living operations are particularly sensitive to adverse economic, social and competitive conditions and trends, including the effects of pandemics, which have previously adversely affected our business, financial condition, and results of operations.
Income Taxes	Income Taxes Income taxes are computed using the asset and liability method and current income taxes are recorded based on amounts refundable or payable in the current year. The effective tax rates for the three months ended March 31, 2025 and 2024 differ from the statutory tax rates due to state income taxes, permanent tax differences, and changes in the deferred tax asset valuation allowance. Deferred income taxes are recorded based on the estimated future tax effects of loss carryforwards and temporary differences between financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted tax rates that are expected to apply to taxable income in the years in which the Company expects those carryforwards and temporary differences to be recovered or settled. Management regularly evaluates the future realization of deferred tax assets and provides a valuation allowance, if considered necessary, based on such evaluation. As part of the evaluation, management has evaluated taxable income in carryback years, future reversals of taxable temporary differences, feasible tax planning strategies, and future expectations of income. The valuation allowance reduces the Company’s net deferred tax assets to the amount that is “more likely than not” (i.e., a greater than 50% likelihood) to be realized. The Company has a full valuation allowance on deferred tax assets. However, in the event that the Company were to ultimately determine that it would be more likely than not that the Company would realize the benefit of deferred tax assets in the future in excess of their net recorded amounts, adjustments to deferred tax assets would increase net income in the period such determination was made. The benefits of the net deferred tax assets might not be realized if actual results differ from expectations. The Company evaluates uncertain tax positions through consideration of accounting and reporting guidance on criteria, measurement, derecognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition that is intended to provide better financial statement comparability among different companies. The Company is required to recognize a tax benefit in its financial statements for an uncertain tax position only if management’s assessment is that its position is “more likely than not” (i.e., a greater than 50% likelihood) to be upheld on audit based only on the technical merits of the tax position. The Company’s policy is to recognize interest related to unrecognized tax benefits as interest expense and penalties as income tax expense. The Company filed for an employee retention credit (“ERC”) with the Internal Revenue Service in November 2023. The ERC is a tax credit for businesses that had employees and were affected by the coronavirus pandemic. The company received $0.3 million of ERC payments during the three months ended March 31, 2025. In April 2025, the Company received an additional $0.6 million of ERC payments.
Redeemable Preferred Stock	Redeemable Preferred Stock The Company's Series A Preferred Stock is convertible outside of our control and is classified as mezzanine equity. The Series A Preferred Stock was initially recorded at fair value upon issuance, net of issuance costs and discounts. The holders of our Series A Preferred Stock are affiliates of Conversant Capital LLC, (together, the “Conversant Preferred Investors”), and are entitled to vote with the holders of common stock on all matters submitted to a vote of stockholders of the Company. As such, the Conversant Preferred Investors, in combination with the common stock owned by them and their affiliates as of March 31, 2025 and December 31, 2024, have voting rights in excess of 50% of the Company’s total voting stock. It is deemed probable that the Series A Preferred Stock could be redeemed for cash by the Conversant Preferred Investors, and as such, the Series A Preferred Stock is required to be remeasured and adjusted to its maximum redemption value at the end of each reporting period. However, to the extent that the maximum redemption value of the Series A Preferred Stock does not exceed the fair value of the shares at the date of issuance, the shares are not adjusted below the fair value at the date of issuance. As of March 31, 2025 and December 31, 2024, the Series A Preferred Stock is carried at the maximum redemption value. The Series A Preferred Stock does not have a maturity date and, therefore, is considered perpetual. Dividends on redeemable Series A Preferred Stock are recorded to retained earnings or additional paid-in capital if retained earnings is an accumulated deficit. Dividends are cumulative, and any declaration of dividends is at the discretion of the Company’s Board of Directors (the “Board”). If the Board does not declare a dividend in respect of any dividend payment date, the amount of such accrued and unpaid dividend is added to the liquidation preference of the Series A Preferred Stock and compounds quarterly thereafter. See “Note 8–Securities Financing.”
Derivative Instruments	Derivative Instruments We use derivative instruments as part of our overall strategy to manage our exposure to market risks associated with the fluctuations in variable interest rates associated with our debt. We are also required to enter into interest rate derivative instruments in compliance with certain debt agreements. We regularly monitor the financial stability and credit standing of the counterparties to our derivative instruments. We do not enter into derivative financial instruments for trading or speculative purposes. We record all derivatives at fair value. As of March 31, 2025 and December 31, 2024, our derivative instruments consisted of interest rate caps that were not designated as hedge instruments. Changes in fair value of undesignated hedge instruments are recorded in current period earnings as interest expense.
Net Income Per Common Share	Net Income Per Common Share The Company uses the two-class method to compute net income per common share because the Company has issued securities (Series A Preferred Stock) that entitle the holder to participate in dividends and earnings of the Company. Under this method, net income is reduced by the amount of any dividends earned during the period. The remaining earnings (undistributed earnings) are allocated based on the weighted-average shares outstanding of common stock and participating securities, including Series A Preferred Stock (on an if-converted basis) to the extent that each participating security may share in earnings as if all of the earnings for the period had been distributed. The total earnings allocated to common stock is then divided by the number of outstanding shares to which the earnings are allocated to determine the earnings per share. The two-class method is not applicable during periods with a net loss, as the holders of the participating securities, including Series A Preferred Stock, have no obligation to fund losses. Diluted net income per common share is computed under the two-class method by using the weighted-average number of shares of common stock outstanding, plus, for periods with net income attributable to common stockholders, the potential dilutive effects of stock options, stock-based compensation awards, and warrants. In addition, the Company analyzes the potential dilutive effect of the outstanding Series A Preferred Stock under the “if-converted” method when calculating diluted earnings per share, in which it is assumed that the outstanding Series A Preferred Stock converts into common stock at the beginning of the period or when issued, if later. The Company reports the more dilutive of the approaches (two class or “if-converted”) as its diluted net income per share during the period.
Segment Reporting	Segment Reporting The Company evaluates the performance of its senior living communities and allocates resources based on current operations and market assessments on a property-by-property basis. The Company does not have a concentration of operations geographically or by product or service as its management functions are integrated at the property level. The Company has determined that its operating units meet the criteria in ASC Topic 280, Segment Reporting, to be aggregated into one reporting segment. As such, the Company operates in one segment.
Recently Issued Accounting Pronouncements Not Yet Adopted	Recently Issued Accounting Pronouncements Not Yet Adopted Improvements to Income Statement Expenses In November 2024, the FASB issued ASU 2024-03, Disaggregation of Income Statement Expenses (Topic 220). The ASU requires the disaggregated disclosure of specific expense categories, including purchases of inventory, employee compensation, depreciation, and amortization, within relevant income statement captions. The ASU is effective for annual periods beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027. Adoption of this ASU can either be applied prospectively to consolidated financial statements issued for reporting periods after the effective date of this ASU or retrospectively to any or all prior periods presented in the consolidated financial statements. Early adoption is also permitted. This ASU will likely result in the required additional disclosures where applicable being included in our consolidated financial statements once adopted. We are currently evaluating the provisions of this ASU. Improvements to Income Tax Disclosures In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The amendments require disclosure of specific categories in the rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold and further disaggregation of income taxes paid for individually significant jurisdictions. The guidance was effective for the Company beginning on January 1, 2025, with the new disclosure requirements effective in the Company’s Annual Report on Form 10-K for the fiscal year ending December 31, 2025. The impact of the guidance is limited to financial statement disclosures.

Summary of Significant Accounting Policies (Tables)

3 Months Ended

Mar. 31, 2025

Accounting Policies [Abstract]

Schedule of Cash and Cash Equivalents and Restricted Cash

The following table sets forth our cash, cash equivalents, and restricted cash (in thousands):


	March 31, 2025		December 31, 2024
Cash and cash equivalents	$	13,988	$	16,992
Restricted cash:
Property tax and insurance reserves	4,564		6,156
Lender reserves	3,345		6,013
Capital expenditures reserves	6,605		6,210
Escrow deposit	200		—
Deposits pursuant to outstanding letters of credit	3,524		3,524
Other reserves	191		192
Total restricted cash	18,429		22,095
Total cash, cash equivalents, and restricted cash	$	32,417	$	39,087

Property and Equipment, net (Tables)

3 Months Ended

Mar. 31, 2025

Property, Plant and Equipment [Abstract]

Schedule of Net Property and Equipment and Leasehold Improvements

As of March 31, 2025 and December 31, 2024, property and equipment, net, which include assets under finance leases, consist of the following (in thousands):


	Asset Lives	March 31, 2025		December 31, 2024
Land	NA	$	73,405	$	73,405
Land improvements	5 to 20 years	32,548		31,764
Buildings and building improvements	10 to 40 years	992,993		989,054
Furniture and equipment	5 to 10 years	68,195		66,600
Automobiles	5 to 7 years	2,997		2,923
Assets under financing leases and leasehold improvements (1)	5 to 10 years	5,820		5,607
Construction in progress	NA	1,354		1,039
Total property and equipment		$	1,177,312	$	1,170,392
Less accumulated depreciation and amortization		(441,841)		(430,508)
Total property and equipment, net		$	735,471	$	739,884

__________

Intangible Assets (Tables)

3 Months Ended

Mar. 31, 2025

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Schedule of Intangible Assets and Goodwill


	March 31,		December 31,		Weighted Average Life Remaining
	2025		2024		(in years)
In-place leases, gross	$	28,960	$	28,960
Accumulated amortization	(6,837)		(4,434)
Intangibles, net	$	22,123	$	24,526	2.5

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense

Expected future amortization expense of intangible assets as of March 31, 2025 is as follows (in thousands):


Future amortization:
2025, remaining	$	6,726
2026	9,080
2027	6,317
2028	—
2029	—
Total Amortization	$	22,123

Accrued Expenses (Tables)

3 Months Ended

Mar. 31, 2025

Payables and Accruals [Abstract]

Schedule of Accounts Payable and Accrued Liabilities

The following is a summary of accrued expenses as of March 31, 2025 and December 31, 2024 (in thousands):


	March 31, 2025		December 31, 2024
Accrued payroll and employee benefits	$	22,681	$	20,894
Accrued interest (1)	8,528		8,499
Accrued taxes	6,009		8,050
Accrued professional fees	3,013		3,315
Accrued other expenses	2,829		4,266
Total accrued expenses	$	43,060	$	45,024

__________

Debt (Tables)

3 Months Ended

Mar. 31, 2025

Debt Disclosure [Abstract]

Schedule of Notes Payable

Long-term debt balances, including associated interest rates and maturities consists of the following (in thousands):


		Weighted average interest rate		March 31, 2025		December 31, 2024
	Maturity Date	March 31, 2025	December 31, 2024
Senior secured revolving credit facility	2027	6.9%	7.3%	$	60,000	$	60,000
Fixed rate mortgage notes payable	2025 to 2045	4.6%	4.6%	400,120		400,229
Variable rate mortgage notes payable (1)	2026 to 2029	6.5%	6.5%	171,530		171,530
Notes payable - consolidated VIE	2025 to 2027	7.1%	7.2%	21,690		21,690
Notes payable - insurance	2025	6.9%	6.9%	899		1,707
Total debt				654,239		655,156
Deferred loan costs, net				3,345		3,766
Total debt, net of deferred loan costs				650,894		651,390
Current portion of debt				14,621		15,486
Long-term debt, net				$	636,273	$	635,904

Schedule of Aggregate Scheduled Maturities of Notes Payable

The following schedule summarizes our debt payable as of March 31, 2025 (in thousands):


Principal payments due in:
2025	$	16,254
2026	133,055
2027	72,597
2028	3,395
2029	408,562
Thereafter	20,376
Total debt, excluding deferred loan costs	$	654,239

(1) See “Note 14–Fair Value” for interest rate cap agreements on variable rate mortgage notes payable.

Securities Financing (Tables)

3 Months Ended

Mar. 31, 2025

Equity [Abstract]

Schedule of Stockholders Equity

The following schedule summarizes our Series A Preferred Stock as of March 31, 2025 and December 31, 2024 (in thousands):


	Preferred Stock
	Shares	Amount
Balance as of December 31, 2024	41	$	51,249

Balance as of March 31, 2025	41	$	51,249

Revenue (Tables)

3 Months Ended

Mar. 31, 2025

Revenue from Contract with Customer [Abstract]

Schedule of Disaggregation of Revenue

Revenue for the three months ended March 31, 2025 and 2024 is comprised of the following components (in thousands):


	Three Months Ended March 31,
	2025		2024
Housing and support services	$	78,411	$	59,984
Community fees	534		459
Ancillary services	310		294

Resident revenue	79,255		60,737
Management fees	1,061		594
Managed community reimbursement revenue	11,607		6,107
Total revenues	$	91,923	$	67,438

Net Income (Loss) Per Share (Tables)

3 Months Ended

Mar. 31, 2025

Earnings Per Share [Abstract]

Schedule of Computation of Basic and Diluted Net Income Per Share

The following table sets forth the computation of basic and diluted net income (loss) per share (in thousands, except for per share amounts):


	Three Months Ended March 31,
	2025		2024
Basic net income (loss) per common share calculation:
Net income (loss) attributable to Sonida shareholders	$	(12,529)	$	27,019
Less: Dividends on Series A Preferred Stock	(1,409)		—
Less: Undeclared dividends on Series A Preferred Stock	—		(1,335)
Less: Undistributed earnings allocated to participating securities	—		(2,849)
Net income (loss) attributable to common shareholders	$	(13,938)	$	22,835
Weighted average shares outstanding — basic	18,047		9,861
Basic net income (loss) per share	$	(0.77)	$	2.32

Diluted net income (loss) per common share calculation:
Net income (loss) attributable to common shareholders	$	(13,938)	$	22,835
Weighted average shares outstanding — diluted	18,047		10,562
Diluted net income (loss) per share	$	(0.77)	$	2.16


	Three Months Ended March 31,
(shares in thousands)	2025	2024
Weighted average shares outstanding - diluted reconciliation:
Weighted average shares outstanding — basic	18,047	9,861
Dilutive effect of share-based instruments	—	701

Weighted average shares outstanding — diluted	18,047	10,562

Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share

The following weighted-average shares of securities were not included in the computation of diluted net income (loss) per common share as their effect would have been antidilutive:


	Three Months Ended March 31,
(shares in thousands)	2025	2024
Warrants	1,031	1,031
Series A Preferred Stock (if converted)	1,281	1,230
Restricted stock awards	885	22
Restricted stock units	5	—
Stock options	10	10

Total	3,212	2,293

Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2025

Fair Value Disclosures [Abstract]

Schedule of Carrying Amounts and Fair Values of Financial Instruments


	March 31, 2025				December 31, 2024
	Carrying Amount		Fair Value		Carrying Amount		Fair Value


Cash and cash equivalents	$	13,988	$	13,988	$	16,992	$	16,992
Restricted cash	18,429		18,429		22,095		22,095
Debt, excluding deferred loan costs	$	654,239	$	602,332	$	655,156	$	621,597

Derivatives and Hedging (Tables)

3 Months Ended

Mar. 31, 2025

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Instruments in the Balance Sheets

The following table presents the fair values of derivative assets and liabilities in the condensed consolidated balance sheets (in thousands):


	March 31, 2025
	Derivative Asset				Derivative Liability
	Notional Amount		Fair Value		Notional Amount		Fair Value

Interest rate cap (SOFR-based)	$	185,109	$	975	$	—	$	—
Total derivatives, net	$	185,109	$	975	$	—	$	—


	December 31, 2024
	Derivative Asset				Derivative Liability
	Notional Amount		Fair Value		Notional Amount		Fair Value

Interest rate cap (SOFR-based)	$	185,145	$	1,465	$	—	$	—
Total derivatives, net	$	185,145	$	1,465	$	—	$	—

Schedule of Derivative Instruments in the Statement of Operations

The following table presents the effect of the derivative instruments on the condensed consolidated statements of operations (in thousands):


	Three Months Ended March 31,
	2025		2024
Derivative not designated as hedge
Interest rate cap
Loss on derivatives not designated as hedges included in interest expense	$	(490)	$	(527)

Segment Information (Tables)

3 Months Ended

Mar. 31, 2025

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment

The following table presents resident revenue, community operating expense and community net operating income by reportable segment (in thousands):


	Three months ended March 31,
	2025		2024
Resident revenue	$	79,255	$	60,737
Community operating expense:
Labor	38,299		29,117
Food	3,428		3,099
Utilities	4,001		3,310
Other community operating expense (1)	13,386		10,296
Total community operating expense	59,114		45,822
Community net operating income	$	20,141	$	14,915

__________

(1) Includes community maintenance, software expense, supplies, insurance, real estate taxes, marketing expense, and other overhead expense.

Reconciliation of Revenue from Segments to Consolidated

A reconciliation of segment revenues to consolidated total revenues is as follows (in thousands):


	Three months ended March 31,
	2025		2024
Segment resident revenue	$	79,255	$	60,737
All other non-segment revenue:
Management fees	1,061		594
Managed community reimbursement revenue	11,607		6,107
Total revenues	$	91,923	$	67,438

Reconciliation of Operating Profit (Loss) from Segments to Consolidated

A reconciliation of segment net operating income to the Company’s condensed consolidated statements of operations is as follows (in thousands):


	Three months ended March 31,
	2025		2024
Segment net operating income	$	20,141	$	14,915
Management fees	1,061		594
Other operating expenses	(1,300)		(495)
General and administrative expense	(8,472)		(6,812)
Transaction, transition and restructuring costs	(610)		(399)
Depreciation and amortization expense	(13,686)		(9,935)

Interest income	242		139
Interest expense	(9,446)		(8,591)
Gain on extinguishment of debt, net	—		38,148
Loss from equity method investment	(330)		—
Other expense, net	(550)		(479)
Provision for income taxes	(75)		(66)
Net Income (Loss)	$	(13,025)	$	27,019

Basis of Presentation (Details) resident in Thousands	Mar. 31, 2025 seniorHousingCommunity joint_venture state resident	Jul. 01, 2024 seniorHousingCommunity
Real Estate Properties [Line Items]
Number of senior housing communities	94
Number of states with senior housing communities \| state	20
Aggregate capacity of residents in senior housing communities \| resident	10
Ownership percent	0.51	0.51
Palatine JV
Real Estate Properties [Line Items]
Number of joint ventures entered into \| joint_venture	2
Wholly Owned Properties
Real Estate Properties [Line Items]
Number of senior housing communities	81
Consolidated Properties
Real Estate Properties [Line Items]
Number of senior housing communities	4	4
Managed On Behalf Of Third Parties
Real Estate Properties [Line Items]
Number of senior housing communities	13

Summary of Significant Accounting Policies - Schedule of Cash and Cash Equivalents and Restricted Cash (Detail) - USD ($) $ in Thousands	Mar. 31, 2025	Dec. 31, 2024	Mar. 31, 2024	Dec. 31, 2023
Restricted Cash and Cash Equivalent Item [Line Items]
Cash and cash equivalents	$ 13,988	$ 16,992
Restricted cash	18,429	22,095
Total cash, cash equivalents, and restricted cash	32,417	39,087	$ 37,663	$ 17,750
Property tax and insurance reserves
Restricted Cash and Cash Equivalent Item [Line Items]
Restricted cash	4,564	6,156
Lender reserves
Restricted Cash and Cash Equivalent Item [Line Items]
Restricted cash	3,345	6,013
Capital expenditures reserves
Restricted Cash and Cash Equivalent Item [Line Items]
Restricted cash	6,605	6,210
Escrow deposit
Restricted Cash and Cash Equivalent Item [Line Items]
Restricted cash	200	0
Deposits pursuant to outstanding letters of credit
Restricted Cash and Cash Equivalent Item [Line Items]
Restricted cash	3,524	3,524
Other reserves
Restricted Cash and Cash Equivalent Item [Line Items]
Restricted cash	$ 191	$ 192

Summary of Significant Accounting Policies - Narrative (Detail)	1 Months Ended	3 Months Ended
	Apr. 30, 2025 USD ($)	Mar. 31, 2025 USD ($) property segment seniorHousingCommunity	Mar. 31, 2024 USD ($)	Dec. 31, 2024 USD ($)
Accounting Policies [Line Items]
Long-lived asset impairment		$ 0	$ 0
Termination notice period		30 days
Contract with customer, liability, revenue recognized		$ 4,900,000
Resident receivables due period		30 days
Allowance for doubtful accounts		$ 8,600,000		$ 7,900,000
Number of senior housing communities \| seniorHousingCommunity		94
Cash from employee retention credit payment		$ 300,000
Percentage of voting rights		0.50		0.50
Number of reportable segments \| segment		1
Number of operating segments \| segment		1
Subsequent Event
Accounting Policies [Line Items]
Cash from employee retention credit payment	$ 600,000
Properties \| Geographic Concentration Risk \| Texas
Accounting Policies [Line Items]
Concentration risk percentage		22.00%	23.00%
Number of senior housing communities \| property		19
Properties \| Geographic Concentration Risk \| Indiana
Accounting Policies [Line Items]
Concentration risk percentage		13.00%	19.00%
Number of senior housing communities \| property		12
Properties \| Geographic Concentration Risk \| Ohio
Accounting Policies [Line Items]
Concentration risk percentage		18.00%	20.00%
Number of senior housing communities \| property		12
Housing And Support Services
Accounting Policies [Line Items]
Contract liabilities for deferred fees paid		$ 6,400,000		$ 5,400,000
Managed community reimbursement revenue \| Revenue Benchmark \| Customer Concentration Risk
Accounting Policies [Line Items]
Concentration risk percentage		8.40%	11.60%

Investments and Acquisitions (Details)		3 Months Ended
Investments and Acquisitions (Details)	Aug. 05, 2024 seniorHousingCommunity	Mar. 31, 2025 USD ($) seniorHousingCommunity	Mar. 31, 2024 USD ($)	Dec. 31, 2024 USD ($)	Jul. 01, 2024 seniorHousingCommunity	Apr. 30, 2024 seniorHousingCommunity
Asset Acquisition [Line Items]
Number of senior housing communities \| seniorHousingCommunity		94
Ownership percent		0.51			0.51
Investment in unconsolidated entity		$ 10,221,000		$ 10,943,000
Return of investment in unconsolidated entity		392,000	$ 0
Impairments		$ 0
Number of communities \| seniorHousingCommunity	2
Senior Housing Communities
Asset Acquisition [Line Items]
Ownership percentage		32.71%
AmTrust
Asset Acquisition [Line Items]
Venture ownership percentage		67.29%
Senior Housing Communities
Asset Acquisition [Line Items]
Number of assets acquired \| seniorHousingCommunity						4
Investment in unconsolidated entity		$ 10,200,000
Return of investment in unconsolidated entity		$ 400,000
Purchase and Sale Agreement
Asset Acquisition [Line Items]
Number of communities \| seniorHousingCommunity		1
Asset acquisition, consideration transferred		$ 11,000,000
Consolidated Properties
Asset Acquisition [Line Items]
Number of senior housing communities \| seniorHousingCommunity		4			4

Property and Equipment, net - Schedule of Net Property and Equipment and Leasehold Improvements (Details) - USD ($) $ in Thousands	Mar. 31, 2025	Dec. 31, 2024
Property, Plant and Equipment [Line Items]
Total property and equipment	$ 1,177,312	$ 1,170,392
Less accumulated depreciation and amortization	(441,841)	(430,508)
Total property and equipment, net	$ 735,471	$ 739,884
Finance lease, right-of-use asset, statement of financial position	Total property and equipment, net	Total property and equipment, net
Finance lease, right-of-use asset, after accumulated amortization	$ 100	$ 100
Land
Property, Plant and Equipment [Line Items]
Total property and equipment	73,405	73,405
Land improvements
Property, Plant and Equipment [Line Items]
Total property and equipment	$ 32,548	31,764
Land improvements \| Minimum
Property, Plant and Equipment [Line Items]
Asset Lives	5 years
Land improvements \| Maximum
Property, Plant and Equipment [Line Items]
Asset Lives	20 years
Buildings and building improvements
Property, Plant and Equipment [Line Items]
Total property and equipment	$ 992,993	989,054
Buildings and building improvements \| Minimum
Property, Plant and Equipment [Line Items]
Asset Lives	10 years
Buildings and building improvements \| Maximum
Property, Plant and Equipment [Line Items]
Asset Lives	40 years
Furniture and equipment
Property, Plant and Equipment [Line Items]
Total property and equipment	$ 68,195	66,600
Furniture and equipment \| Minimum
Property, Plant and Equipment [Line Items]
Asset Lives	5 years
Furniture and equipment \| Maximum
Property, Plant and Equipment [Line Items]
Asset Lives	10 years
Automobiles
Property, Plant and Equipment [Line Items]
Total property and equipment	$ 2,997	2,923
Automobiles \| Minimum
Property, Plant and Equipment [Line Items]
Asset Lives	5 years
Automobiles \| Maximum
Property, Plant and Equipment [Line Items]
Asset Lives	7 years
Assets under financing leases and leasehold improvements
Property, Plant and Equipment [Line Items]
Total property and equipment	$ 5,820	5,607
Assets under financing leases and leasehold improvements \| Minimum
Property, Plant and Equipment [Line Items]
Asset Lives	5 years
Assets under financing leases and leasehold improvements \| Maximum
Property, Plant and Equipment [Line Items]
Asset Lives	10 years
Construction in progress
Property, Plant and Equipment [Line Items]
Total property and equipment	$ 1,354	$ 1,039

Property and Equipment, net - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2025	Mar. 31, 2024
Property, Plant and Equipment [Abstract]
Depreciation	$ 11,300	$ 9,800
Non-cash additions of property and equipment	$ 1,412	$ 498

Intangible Assets - Schedule of Intangible Assets and Goodwill (Details) - USD ($) $ in Thousands	Mar. 31, 2025	Dec. 31, 2024
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
In-place leases, gross	$ 28,960	$ 28,960
Accumulated amortization	(6,837)	(4,434)
Intangibles, net	$ 22,123	$ 24,526
Weighted Average Life Remaining	2 years 6 months

Intangible Assets - Narrative (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2025	Mar. 31, 2024
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Amortization of intangible assets	$ 2.4	$ 0.1

Intangible Assets - Schedule of Finite-Lived Intangible Assets, Future Amortization Expense (Details) $ in Thousands	Mar. 31, 2025 USD ($)
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
2025, remaining	$ 6,726
2026	9,080
2027	6,317
2028	0
2029	0
Total Amortization	$ 22,123

Accrued Expenses - Schedule of accounts payable and accrued liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2025	Dec. 31, 2024
Financing Receivable, Modified [Line Items]
Accrued payroll and employee benefits	$ 22,681	$ 20,894
Accrued interest	8,528	8,499
Accrued taxes	6,009	8,050
Accrued professional fees	3,013	3,315
Accrued other expenses	2,829	4,266
Total accrued expenses	43,060	45,024
Entity Loan Modification Program
Financing Receivable, Modified [Line Items]
Accrued interest	$ 5,100	$ 5,500

Debt - Schedule of Notes Payable (Detail) - USD ($) $ in Thousands	Mar. 31, 2025	Dec. 31, 2024
Debt Instrument [Line Items]
Total debt	$ 654,239	$ 655,156
Deferred loan costs, net	3,345	3,766
Total debt, net of deferred loan costs	650,894	651,390
Current portion of debt	14,621	15,486
Long-term debt, net	$ 636,273	$ 635,904
Senior secured revolving credit facility
Debt Instrument [Line Items]
Weighted average interest rate	6.90%	7.30%
Total debt	$ 60,000	$ 60,000
Fixed rate mortgage notes payable
Debt Instrument [Line Items]
Weighted average interest rate	4.60%	4.60%
Total debt	$ 400,120	$ 400,229
Variable rate mortgages note payable
Debt Instrument [Line Items]
Weighted average interest rate	6.50%	6.50%
Total debt	$ 171,530	$ 171,530
Notes payable - consolidated VIE
Debt Instrument [Line Items]
Weighted average interest rate	7.10%	7.20%
Total debt	$ 21,690	$ 21,690
Notes payable - insurance
Debt Instrument [Line Items]
Weighted average interest rate	6.90%	6.90%
Total debt	$ 899	$ 1,707
Total debt, net of deferred loan costs	$ 900

Debt - Schedule of Aggregate Scheduled Maturities of Notes Payable (Details) - USD ($) $ in Thousands	Mar. 31, 2025	Dec. 31, 2024
Debt Disclosure [Abstract]
2025	$ 16,254
2026	133,055
2027	72,597
2028	3,395
2029	408,562
Thereafter	20,376
Total debt, excluding deferred loan costs	$ 654,239	$ 655,156

Debt - Narrative (Details) $ in Millions	3 Months Ended
Debt - Narrative (Details) $ in Millions	Mar. 31, 2025 USD ($)
Debt Instrument [Line Items]
Property and equipment, net	$ 572.9
Senior secured revolving credit facility
Debt Instrument [Line Items]
Property and equipment, net	$ 143.4
Variable rate mortgages note payable
Debt Instrument [Line Items]
Debt instrument, variable rate at period end	4.40%
Minimum \| Fixed rate mortgage notes payable
Debt Instrument [Line Items]
Debt effective interest rate	3.00%
Minimum \| Variable rate mortgages note payable
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate	2.00%
Maximum \| Fixed rate mortgage notes payable
Debt Instrument [Line Items]
Debt effective interest rate	6.30%
Maximum \| Variable rate mortgages note payable
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate	3.50%

Debt - 2024 Fannie Mae Loan Modifications (Details) $ in Millions		1 Months Ended
	Aug. 05, 2024 seniorHousingCommunity	Dec. 31, 2024 USD ($) seniorLivingCommunities property	Mar. 31, 2025 seniorHousingCommunity
Debt Instrument [Line Items]
Number of communities \| seniorHousingCommunity	2
Number of senior housing communities \| seniorHousingCommunity			94
Fannie Mae Loan \| Omnibus Agreement
Debt Instrument [Line Items]
Number of communities \| seniorLivingCommunities		18
Number of senior housing communities \| property		37
Debt periodic principal payments		$ 10.0
Fannie Mae Loan \| Omnibus Agreement \| Initial Prepayment
Debt Instrument [Line Items]
Debt Instrument, periodic prepayment		2.0
Fannie Mae Loan \| Omnibus Agreement \| Second Prepayment
Debt Instrument [Line Items]
Debt Instrument, periodic prepayment		2.0
Fannie Mae Loan \| Omnibus Agreement \| Third Prepayment
Debt Instrument [Line Items]
Debt Instrument, periodic prepayment		3.0
Fannie Mae Loan \| Omnibus Agreement \| Fourth Prepayment
Debt Instrument [Line Items]
Debt Instrument, periodic prepayment		$ 3.0

Debt - Senior Secured Revolving Credit Facility (Details) $ in Thousands		3 Months Ended	12 Months Ended
	Aug. 05, 2024 seniorHousingCommunity	Mar. 31, 2025 USD ($) seniorHousingCommunity	Dec. 31, 2024 USD ($)
Debt Instrument [Line Items]
Notes payable		$ 654,239	$ 655,156
Number of communities \| seniorHousingCommunity	2
Revolving Credit Facility \| Senior secured revolving credit facility
Debt Instrument [Line Items]
Available letters of credit		43,200	$ 150,000
Debt instrument, term			3 years
Notes payable		$ 60,000
Weighted average interest rate		6.90%
Number of communities \| seniorHousingCommunity		13
Revolving Credit Facility \| Senior secured revolving credit facility \| Minimum
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate			2.10%
Revolving Credit Facility \| Senior secured revolving credit facility \| Maximum
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate			2.60%

Debt - Texas Loan Modification (Details) $ in Thousands		3 Months Ended		12 Months Ended
Debt - Texas Loan Modification (Details) $ in Thousands	Aug. 05, 2024 USD ($) seniorHousingCommunity	Mar. 31, 2025 USD ($)	Mar. 31, 2024 USD ($)	Dec. 31, 2024 USD ($)	Nov. 01, 2024 USD ($)
Debt Instrument [Line Items]
Number of communities \| seniorHousingCommunity	2
Gain on debt extinguishment		$ 0	$ 38,148
Texas DPO
Debt Instrument [Line Items]
Restructuring fee	$ 250
Note principal amount					$ 18,300
Debt instrument, discount rate					0.36
Gain on debt extinguishment				$ 10,400

Debt - 2024 Loan Repurchase Agreement and Ally Term Loan Expansion (Details) $ in Thousands	1 Months Ended	3 Months Ended
	Feb. 29, 2024 USD ($) property	Mar. 31, 2025 USD ($)	Mar. 31, 2024 USD ($)
Debt Instrument [Line Items]
Repayments of notes payable		$ 918	$ 41,999
Gain on debt extinguishment		0	38,148
Payments of loan costs		$ 38	549
Protective Life Insurance Company
Debt Instrument [Line Items]
Repayments of notes payable	$ 40,200
Debt instrument, repurchase amount	$ 74,400
Number of properties covered under loan \| property	7
Reduction in notes payable	$ 49,600
Gain on debt extinguishment			$ 38,100
Ally Bank
Debt Instrument [Line Items]
Number of properties covered under loan \| property	6
Increase in principal	$ 24,800
Debt issuance costs, net	500
Ally Bank \| Interest Rate Cap
Debt Instrument [Line Items]
Payments of loan costs	$ 600

Debt - 2024 Ally Loan Amendments (Details) - Fourth Ally Amendments	1 Months Ended
	May 31, 2024	Apr. 30, 2024	May 22, 2024
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate	3.00%	2.30%
Maximum
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate	6.00%
Ally Bank
Debt Instrument [Line Items]
Debt ownership percentage, lender			67.50%
Cross River Bank
Debt Instrument [Line Items]
Debt ownership percentage, lender			32.50%

Debt - Notes Payable - Consolidated VIE (Details) - USD ($) $ in Thousands	1 Months Ended
	Jul. 31, 2024	Mar. 31, 2025	Dec. 31, 2024	Jul. 01, 2024
Debt Instrument [Line Items]
Debt, excluding deferred loan costs		$ 650,894	$ 651,390
Notes payable - consolidated VIE
Debt Instrument [Line Items]
Weighted average interest rate		7.10%	7.20%
Palatine JV
Debt Instrument [Line Items]
Secured debt				$ 21,700
Debt, excluding deferred loan costs		$ 3,100
Palatine JV \| Interest Rate Cap
Debt Instrument [Line Items]
Mortgages at cost	$ 100

Debt - Notes Payable - Insurance (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2025	Dec. 31, 2024
Debt Instrument [Line Items]
Debt, excluding deferred loan costs	$ 650,894	$ 651,390
Notes payable - insurance
Debt Instrument [Line Items]
Debt, excluding deferred loan costs	$ 900
Stated interest rate	6.85%
Debt instrument, term	10 months

Debt - Deferred Loan Costs (Details) - USD ($) $ in Millions	Mar. 31, 2025	Dec. 31, 2024
Debt Disclosure [Abstract]
Deferred financing cost	$ 11.3	$ 11.4
Accumulated amortization	$ 8.0	$ 7.6

Securities Financing - Narrative (Details) - USD ($)		1 Months Ended	3 Months Ended
Securities Financing - Narrative (Details) - USD ($)	Mar. 31, 2024	Nov. 30, 2021	Mar. 31, 2025	Dec. 31, 2024
Equity, Class of Treasury Stock [Line Items]
Preferred stock, dividend rate, percentage			11.00%
Dividends paid			$ 1,400,000
Increase in carrying amount of redeemable preferred stock	$ 1,300,000
Preferred stock liquidation preference			10,000,000
Note Warrant
Equity, Class of Treasury Stock [Line Items]
Warrant exercise expiration period		5 years
Convertible Preferred Stock \| Private Placement
Equity, Class of Treasury Stock [Line Items]
Proceeds from sale of stock under agreement			$ 41,300,000
Convertible Preferred Stock \| Private Placement \| Conversant Dallas Parkway (A) LP and Conversant Dallas Parkway (B) LP
Equity, Class of Treasury Stock [Line Items]
Shares issued under agreement (in shares)			41,250
Warrants \| Note Warrant
Equity, Class of Treasury Stock [Line Items]
Shares issued under agreement (in shares)		1,031,250
Warrants \| Note Warrant \| Conversant Dallas Parkway (A) LP and Conversant Dallas Parkway (B) LP
Equity, Class of Treasury Stock [Line Items]
Warrants and rights outstanding			$ 1,031,250	$ 1,031,250
Common Stock \| Note Warrant
Equity, Class of Treasury Stock [Line Items]
Number of securities called by each warrant (in shares)		1
Price per share of stock sold (in USD per share)		$ 40

Securities Financing - Schedule Summarizes Our Preferred Stock (Details) $ in Thousands	Mar. 31, 2025 USD ($) shares
Preferred Stock [Roll Forward]
Beginning Balance (in shares) \| shares	0
Beginning Balance \| $	$ 0
Ending Balance (in shares) \| shares	0
Ending Balance \| $	$ 0
Preferred Stock
Preferred Stock [Roll Forward]
Beginning Balance (in shares) \| shares	41,000
Beginning Balance \| $	$ 51,249
Ending Balance (in shares) \| shares	41,000
Ending Balance \| $	$ 51,249

Revenue (Details) - USD ($) $ in Thousands	3 Months Ended
Revenue (Details) - USD ($) $ in Thousands	Mar. 31, 2025	Mar. 31, 2024
Disaggregation of Revenue [Line Items]
Resident revenue	$ 91,923	$ 67,438
Resident revenue
Disaggregation of Revenue [Line Items]
Resident revenue	79,255	60,737
Housing and support services
Disaggregation of Revenue [Line Items]
Resident revenue	78,411	59,984
Community fees
Disaggregation of Revenue [Line Items]
Resident revenue	534	459
Ancillary services
Disaggregation of Revenue [Line Items]
Resident revenue	310	294
Management fees
Disaggregation of Revenue [Line Items]
Resident revenue	1,061	594
Managed community reimbursement revenue
Disaggregation of Revenue [Line Items]
Resident revenue	$ 11,607	$ 6,107

Net Income (Loss) Per Share - Net Loss Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2025	Mar. 31, 2024
Basic net income (loss) per common share calculation:
Net income (loss) attributable to Sonida shareholders	$ (12,529)	$ 27,019
Less: Dividends on Series A Preferred Stock	(1,409)	0
Less: Undeclared dividends on Series A Preferred Stock	0	(1,335)
Less: Undistributed earnings allocated to participating securities	0	(2,849)
Net income (loss) attributable to common shareholders	$ (13,938)	$ 22,835
Weighted average shares outstanding — basic (in shares)	18,047	9,861
Basic net income (loss) per share (in USD per share)	$ (0.77)	$ 2.32
Diluted net income (loss) per common share calculation:
Net income (loss) attributable to common shareholders	$ (13,938)	$ 22,835
Weighted average shares outstanding — diluted (in shares)	18,047	10,562
Diluted net income (loss) per share (in USD per share)	$ (0.77)	$ 2.16

Net Income (Loss) Per Share - Dilutive Effect (Details) - shares shares in Thousands	3 Months Ended
	Mar. 31, 2025	Mar. 31, 2024
Basic net income (loss) per common share calculation:
Weighted average shares outstanding — basic (in shares)	18,047	9,861
Weighted average shares outstanding — diluted (in shares)	18,047	10,562
Restricted stock awards
Basic net income (loss) per common share calculation:
Dilutive effect of share based instruments (in shares)	0	701

Net Income (Loss) Per Share - Antidilutive (Details) - shares shares in Thousands	3 Months Ended
	Mar. 31, 2025	Mar. 31, 2024
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive shares excluded from earnings per share (in shares)	3,212	2,293
Warrants
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive shares excluded from earnings per share (in shares)	1,031	1,031
Series A Preferred Stock (if converted)
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive shares excluded from earnings per share (in shares)	1,281	1,230
Restricted stock awards
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive shares excluded from earnings per share (in shares)	885	22
Restricted stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive shares excluded from earnings per share (in shares)	5	0
Stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive shares excluded from earnings per share (in shares)	10	10

Stock-Based Compensation (Detail) - USD ($) $ in Millions	3 Months Ended
Stock-Based Compensation (Detail) - USD ($) $ in Millions	Mar. 31, 2025	Mar. 31, 2024
Share-Based Payment Arrangement [Abstract]
Stock-based compensation expense	$ 1.0	$ 0.6
Unrecognized stock compensation expense	$ 5.9

Commitments and Contingencies (Details) $ in Millions	Mar. 31, 2025 USD ($)
Commitments and Contingencies Disclosure [Abstract]
Contractual obligation	$ 7.3
Deferred commitment	$ 1.2

Related Party Transactions (Details) $ in Thousands	1 Months Ended	3 Months Ended
Related Party Transactions (Details) $ in Thousands	Sep. 30, 2024 USD ($) seniorHousingCommunity	Mar. 31, 2025 USD ($) seniorHousingCommunity joint_venture	Mar. 31, 2024 USD ($)	Dec. 31, 2024 USD ($)	Jul. 01, 2024 seniorHousingCommunity
Related Party Transaction [Line Items]
Number of senior housing communities \| seniorHousingCommunity		94
Return of investment in unconsolidated entity		$ 392	$ 0
Debt, excluding deferred loan costs		$ 650,894		$ 651,390
Number of joint ventures in which company provides reporting services \| joint_venture		2
Consolidated Properties
Related Party Transaction [Line Items]
Number of senior housing communities \| seniorHousingCommunity		4			4
Consolidated Properties \| Stone Joint Venture
Related Party Transaction [Line Items]
Number of senior housing communities \| seniorHousingCommunity	4
Proceeds from Sale, Loan, Mortgage, Held-for-Sale	$ 35,000
Debt instrument, term	36 months
Debt effective interest rate	7.30%
Debt, excluding deferred loan costs		$ 35,000		$ 35,000
Consolidated Properties \| Stone Joint Venture \| Secured Debt
Related Party Transaction [Line Items]
Debt, excluding deferred loan costs		$ 14,000

Fair Value Measurements - Narrative (Detail) - USD ($)	3 Months Ended
Fair Value Measurements - Narrative (Detail) - USD ($)	Mar. 31, 2025	Mar. 31, 2024	Dec. 31, 2024	May 31, 2024	Apr. 30, 2024	Feb. 02, 2024
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets, fair value	$ 975,000		$ 1,465,000
Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Non-cash impairment charge on property and equipment	0	$ 0
Interest Rate Cap
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative, notional amount	185,100,000		185,100,000	$ 9,400,000	$ 49,200,000	$ 24,800,000
Derivative assets, fair value	$ 975,000		$ 1,465,000

Fair Value Measurements - Carrying Amounts and Fair Values of Financial Instruments (Detail) - USD ($) $ in Thousands	Mar. 31, 2025	Dec. 31, 2024
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Restricted cash	$ 18,429	$ 22,095
Debt, excluding deferred loan costs	650,894	651,390
Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents	13,988	16,992
Restricted cash	18,429	22,095
Debt, excluding deferred loan costs	654,239	655,156
Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents	13,988	16,992
Restricted cash	18,429	22,095
Debt, excluding deferred loan costs	$ 602,332	$ 621,597

Derivatives and Hedging - Narrative (Details) - USD ($) $ in Thousands			1 Months Ended		3 Months Ended
	Feb. 02, 2024	Dec. 01, 2023	May 31, 2024	Apr. 30, 2024	Mar. 31, 2025	Mar. 31, 2024	Dec. 31, 2024
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Purchase of interest rate cap					$ 0	$ 554
Interest Rate Cap
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative, notional amount	$ 24,800		$ 9,400	$ 49,200	$ 185,100		$ 185,100
Purchase of interest rate cap	$ 600		$ 200	$ 1,100
Derivative term		12 months	24 months	24 months
Derivative, basis spread on variable rate			6.00%	4.00%
Debt instrument, variable rate at period end		2.25%

Derivatives and Hedging - Schedule of Derivative Instruments in Balance Sheet (Details) - USD ($) $ in Thousands	Mar. 31, 2025	Dec. 31, 2024
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative asset, notional amount	$ 185,109	$ 185,145
Derivative liability, notional amount	0	0
Derivative assets, fair value	975	1,465
Derivative liability, fair value	0	0
Interest Rate Cap
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative asset, notional amount	185,109	185,145
Derivative liability, notional amount	0	0
Derivative assets, fair value	975	1,465
Derivative liability, fair value	$ 0	$ 0

Derivatives and Hedging - Schedule of Derivative Instruments in Statement of Operations (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2025	Mar. 31, 2024
Interest Rate Cap \| Interest Expense
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Loss on derivatives not designated as hedges included in interest expense	$ (490)	$ (527)

Segment Information - Narrative (Details)	3 Months Ended
Segment Information - Narrative (Details)	Mar. 31, 2025 segment
Segment Reporting [Abstract]
Number of reportable segments	1
Number of operating segments	1

Segment Information - Schedule of Segment Reporting Information, by Segment (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2025	Mar. 31, 2024
Segment Reporting Information [Line Items]
Resident revenue	$ 91,923	$ 67,438
Community net operating income	20,141	14,915
Reportable Segment
Segment Reporting Information [Line Items]
Resident revenue	79,255	60,737
Total community operating expense	59,114	45,822
Community net operating income	20,141	14,915
Reportable Segment \| Labor
Segment Reporting Information [Line Items]
Total community operating expense	38,299	29,117
Reportable Segment \| Food
Segment Reporting Information [Line Items]
Total community operating expense	3,428	3,099
Reportable Segment \| Utilities
Segment Reporting Information [Line Items]
Total community operating expense	4,001	3,310
Reportable Segment \| Other community operating expense
Segment Reporting Information [Line Items]
Total community operating expense	$ 13,386	$ 10,296

Segment Information - Reconciliation of Revenue from Segments to Consolidated (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2025	Mar. 31, 2024
Segment Reporting Information [Line Items]
Total revenues	$ 91,923	$ 67,438
Resident revenue
Segment Reporting Information [Line Items]
Total revenues	79,255	60,737
Management fees
Segment Reporting Information [Line Items]
Total revenues	1,061	594
Managed community reimbursement revenue
Segment Reporting Information [Line Items]
Total revenues	$ 11,607	$ 6,107

Segment Information - Schedule of Reconciliation of Operating Profit (Loss) from Segments to Consolidated (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2025	Mar. 31, 2024
Segment Reporting Information [Line Items]
Segment net operating income	$ 20,141	$ 14,915
Management fees	91,923	67,438
Other operating expenses	(1,300)	(495)
General and administrative expense	(8,472)	(6,812)
Transaction, transition and restructuring costs	(610)	(399)
Depreciation and amortization expense	(13,686)	(9,935)
Interest income	242	139
Interest expense	(9,446)	(8,591)
Gain on extinguishment of debt, net	0	38,148
Loss from equity method investment	(330)	0
Other expense, net	(550)	(479)
Provision for income taxes	(75)	(66)
Net income (loss) attributable to Sonida shareholders	(13,025)	27,019
Management fees
Segment Reporting Information [Line Items]
Management fees	$ 1,061	$ 594

Subsequent Events (Details) $ in Millions			3 Months Ended
Subsequent Events (Details) $ in Millions	May 12, 2025 USD ($) seniorHousingCommunity	Aug. 05, 2024 seniorHousingCommunity	Mar. 31, 2025 USD ($) seniorHousingCommunity
Subsequent Event [Line Items]
Number of communities		2
Purchase and Sale Agreement
Subsequent Event [Line Items]
Number of communities			1
Asset acquisition, consideration transferred \| $			$ 11.0
Purchase and Sale Agreement \| Subsequent Event
Subsequent Event [Line Items]
Number of communities	1
Asset acquisition, consideration transferred \| $	$ 11.0