Regional Health Properties Reports Fourth Quarter 2025 Results
Reported Full Year Profitability of $3.4 million
Repurchased 511,099 Series B Preferred Shares
HealthCare Services segment reports 20% growth in Average Daily Census
ATLANTA, GA, April 07, 2026 (GLOBE NEWSWIRE) -- Regional Health Properties, Inc. (the “Company”, “Regional”, “we”, “us” or “our”) (OTCQB: RHEP) (OTCQB: RHEPA) (OTCQB: RHEPB) (OTCQB:RHEPZ), a healthcare company that owns, operates and invests in healthcare real estate and operating businesses focused on long-term care, senior housing and pharmacy services, today announced its financial results for the fourth quarter ended December 31, 2025.
FOURTH QUARTER 2025 FINANCIAL RESULTS
- Reported revenue of $20.8 million
- Generated GAAP net income of $2.7 million and Adjusted EBITDA1 of $1.7 million
- Reported earnings per share of $.68
TWELVE MONTHS ENDED DECEMBER 31, 2025 FINANCIAL RESULTS
- Reported revenue of $53.2 million
- Generated GAAP net income of $ 3.4 million and Adjusted EBITDA of $3.1 million
- Reported earnings per share of $1.09
FOURTH QUARTER 2025 BUSINESS HIGHLIGHTS
- Recognized $2.7 million gain on sale of the Coosa Valley facility located in Glencoe, Alabama
- Portfolio occupancy increased from 70.6% to 72.2%
- Repurchased 511,099 shares of the Company’s 12.5% Series B Cumulative Redeemable Preferred Shares at a discount to liquidation preference
TWELVE MONTHS ENDED DECEMBER 31, 2025 BUSINESS HIGHLIGHTS
- For the Healthcare Services segment,
- Average Daily Census (“ADC”) rose from 389 to 467, a 20% increase
- Quality Mix² rose from 9.1% to 12.2%
- Portfolio occupancy increased from 62.5% to 72.2%
MANAGEMENT COMMENTS
Brent Morrison, Regional’s President, Chief Executive Officer and Chairman, commented, “We are proud of the meaningful progress Regional team made in 2025. The merger with SunLink significantly broadened our healthcare platform, while the sale of a non-core asset demonstrated our continued focus on disciplined capital allocation. Taken together, these milestones reflect a year of execution and strategic progress for the Company”.
Mr. Morrison continued, “We believe the operational progress we are making across our facilities will be a key driver of Regional’s future growth. We are encouraged by the progress achieved in 2025 and remain optimistic that we will continue to build on this momentum in 2026.”
BALANCE SHEET AND LIQUIDITY
As of December 31, 2025, the Company had $44.0 million of outstanding indebtedness with a weighted-average annual interest rate of 5.06% and a weighted-average maturity of approximately 15 years. For the twelve months ended December 31, 2025, net cash used by operating activities was $2.3 million.
About Regional Health Properties, Inc.
Regional Health Properties, Inc. is a healthcare company that owns, operates and invests in healthcare real estate and operating businesses focused on long-term care, senior housing and pharmacy services. For more information, visit https://www.regionalhealthproperties.com.
Important Cautions Regarding Forward-Looking Statements
This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Words such as “expects,” “intends,” “believes,” “anticipates,” “plans,” “likely,” “will,” “seeks,” “estimates” and variations of such words and similar expressions are intended to identify such forward-looking statements. This press release includes forward-looking statements that reflect the Company’s current views with respect to, among other things, its business, operations, financial performance and revenue; use of sales proceeds; and future strategy.
Forward-looking statements, by their nature, involve estimates, projections, goals, forecasts and assumptions and are subject to risks and uncertainties that could cause actual results to differ materially from those projected or contemplated by our forward-looking statements due to various factors, including, among others: our dependence on the operating success of our operators; the amount of, and our ability to service, our indebtedness; covenants in our debt agreements that may restrict our ability to make investments, incur additional indebtedness and refinance indebtedness on favorable terms; the availability and cost of capital; our ability to raise capital through equity and debt financings or through the sale of assets; increases in market interest rates and inflation; the effect of increasing healthcare regulation and enforcement on our operators and the dependence of our operators on reimbursement from governmental and other third-party payors; the relatively illiquid nature of real estate investments; the impact of litigation and rising insurance costs on the business of our operators; the impact on us of litigation relating to our prior operation of our healthcare properties; the effect of our operators declaring bankruptcy, becoming insolvent or failing to pay rent as due; the ability of any of our operators in bankruptcy to reject unexpired lease obligations and to impede our ability to collect unpaid rent or interest during the pendency of a bankruptcy proceeding and retain security deposits for the debtor’s obligations; our ability to find replacement operators and the impact of unforeseen costs in acquiring new properties; epidemics or pandemics, and the related impact on our tenants, operators and healthcare facilities; and other factors discussed from time to time in our news releases, public statements and documents filed by us with the Securities and Exchange Commission from time to time, including our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. These forward-looking statements and such risks, uncertainties and other factors speak only as of the date of this press release, and we expressly disclaim any obligation or undertaking to update or revise any forward-looking statement contained herein, to reflect any change in our expectations with regard thereto or any other change in events, conditions, or circumstances on which any such statement is based, except to the extent otherwise required by applicable law.
Company Contact
Brent Morrison, CFA
Chief Executive Officer & President
Regional Health Properties, Inc.
Tel (678) 368-4402
Brent.morrison@regionalhealthproperties.com
REGIONAL HEALTH PROPERTIES, INC.
STATEMENT OF OPERATIONS
(in thousands)
| Quarter Ending December 31, | |||||||||
| 2025 | 2024 | ||||||||
| Revenues: | |||||||||
| Patient care revenues | $ | 11,803 | $ | 3,855 | |||||
| Rental revenues | 1,268 | 1,748 | |||||||
| Pharmacy revenues | 7,704 | — | |||||||
| Other revenues | — | 57 | |||||||
| Total revenues | 20,775 | 5,660 | |||||||
| Expenses: | |||||||||
| Cost of goods sold | 4,512 | — | |||||||
| Patient care expense | 10,561 | 2,980 | |||||||
| Facility rent expense | 228 | 148 | |||||||
| Depreciation and amortization | 712 | 563 | |||||||
| General and administrative expense | 3,666 | 1,323 | |||||||
| Loss on lease termination | 559 | — | |||||||
| Credit loss expense | 159 | 105 | |||||||
| Gain on operations transfer | — | — | |||||||
| Total expenses | 20,397 | 5,119 | |||||||
| Gain on asset sale | (2,706 | ) | — | ||||||
| Income from operations | 3,084 | 541 | |||||||
| Other (income) expense: | |||||||||
| Interest expense, net | 652 | 689 | |||||||
| Gain on bargain purchase | (464 | ) | — | ||||||
| Other expense, net | 197 | 420 | |||||||
| Total other (income) expense, net | 385 | 1,109 | |||||||
| Net income (loss) | 2,699 | (568 | ) | ||||||
| Preferred stock dividends | — | — | |||||||
| Deemed contribution related to Preferred Series B purchases | — | — | |||||||
| Net profit (loss) attributable to Regional Health Properties, Inc. common stockholders | 2,699 | (568 | ) | ||||||
| Unrecognized net gain on pension assets | 22 | — | |||||||
| Comprehensive income | $ | 2,677 | -$ | 568 | |||||
| Net profit (loss) per share of common stock attributable to Regional Health Properties, Inc.: | |||||||||
| Basic | $ | 0.68 | -$ | 0.31 | |||||
| Diluted | $ | 0.68 | -$ | 0.31 | |||||
| Weighted average shares of common stock outstanding: | |||||||||
| Basic | 3,945 | 1,858 | |||||||
| Diluted | 3,945 | 1,858 | |||||||
REGIONAL HEALTH PROPERTIES, INC.
STATEMENT OF OPERATIONS
(in thousands)
| Year Ended December 31, | ||||||||
| 2025 | 2024 | |||||||
| Revenues: | ||||||||
| Patient care revenues | $ | 36,050 | $ | 11,273 | ||||
| Rental revenues | 5,402 | 7,005 | ||||||
| Pharmacy revenues | 11,708 | — | ||||||
| Other revenues | — | 57 | ||||||
| Total revenues | 53,160 | 18,335 | ||||||
| Expenses: | ||||||||
| Cost of goods sold | 6,982 | — | ||||||
| Patient care expense | 30,785 | 9,442 | ||||||
| Facility rent expense | 780 | 594 | ||||||
| Depreciation and amortization | 2,063 | 2,062 | ||||||
| General and administrative expense | 12,041 | 5,408 | ||||||
| Loss on lease termination | 862 | — | ||||||
| Credit loss expense | 795 | 668 | ||||||
| Gain on operations transfer | (106 | ) | — | |||||
| Total expenses | 54,202 | 18,174 | ||||||
| Gain on asset sale | (2,706 | ) | — | |||||
| Income from operations | 1,664 | 161 | ||||||
| Other (income) expense: | ||||||||
| Interest expense, net | 2,671 | 2,710 | ||||||
| Gain on bargain purchase | (5,775 | ) | — | |||||
| Other expense, net | 1,398 | 669 | ||||||
| Total other (income) expense, net | (1,706 | ) | 3,379 | |||||
| Net income (loss) | 3,370 | (3,218 | ) | |||||
| Preferred stock dividends | (603 | ) | — | |||||
| Deemed contribution related to Preferred Series B purchases | 278 | — | ||||||
| Net profit (loss) attributable to Regional Health Properties, Inc. common stockholders | 3,045 | (3,218 | ) | |||||
| Unrecognized net gain on pension assets | 22 | — | ||||||
| Comprehensive income | $ | 3,067 | $ | (3,218 | ) | |||
| Net profit (loss) per share of common stock attributable to Regional Health Properties, Inc.: | ||||||||
| Basic | $ | 1.09 | $ | (1.73 | ) | |||
| Diluted | $ | 1.09 | $ | (1.73 | ) | |||
| Weighted average shares of common stock outstanding: | ||||||||
| Basic | 2,805 | 1,858 | ||||||
| Diluted | 2,805 | 1,858 | ||||||
| Maturity | Interest Rate | Principal | % of Principal | Deferred financing costs | Unamortized discount on bonds | Net Carrying Value | ||||||||||||||||||||||
| Total Fixed Rate Debt | 5/21/2042 | 4.34 | % | 36,876 | 83.9 | % | (636 | ) | (101 | ) | 36,140 | |||||||||||||||||
| Total Floating Rate Debt | 10/1/2036 | 8.42 | % | 7,084 | 16.1 | % | (71 | ) | - | 7,013 | ||||||||||||||||||
| Total | $ | 43,960 | 100.0 | % | $ | (706 | ) | $ | (101 | ) | $ | 43,153 | ||||||||||||||||
Use of Non-GAAP Financial Measures
This press release presents information about EBITDA and Adjusted EBITDA, which are non-GAAP financial measures provided as a supplement to the results provided in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The Company believes that these non-GAAP financial measures provide meaningful supplemental information regarding its performance by excluding certain items that may not be indicative of its recurring core business operating results. The Company believes that both management and investors benefit from referring to these non-GAAP financial measures in assessing its performance and when planning and forecasting future periods. These non-GAAP financial measures also facilitate management’s internal comparisons to the Company’s historical performance. The Company believes these non-GAAP financial measures are useful to investors in allowing for greater transparency with respect to supplemental information used by management in its financial and operational decision making.
These non-GAAP financial measures are presented for supplemental informational purposes only. These non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation from, or as a substitute for, GAAP financial measures. These non-GAAP financial measures may differ from the non-GAAP financial measures used by other companies. A reconciliation of the non-GAAP financial measures to the most directly comparable GAAP financial measure is provided below for each of the fiscal periods indicated.
A reconciliation of EBITDA and Adjusted EBITDA is as follows:
REGIONAL HEALTH PROPERTIES, INC.
RECONCILIATION OF NET LOSS TO NON-GAAP FINANCIAL MEASURES
(in thousands)
| Quarter Ended | Quarter Ended | Quarter Ended | Quarter Ended | Year Ended | ||||||||||||||||
| (Amounts in 000’s) | 3/31/2025 | 6/30/2025 | 9/30/2025 | 12/31/2025 | Total | |||||||||||||||
| Net income (loss) | $ | (1,263 | ) | $ | (1,449 | ) | $ | 3,381 | $ | 2,700 | $ | 3,370 | ||||||||
| Depreciation and amortization | 402 | 403 | 546 | 712 | 2,063 | |||||||||||||||
| Interest expense, net | 653 | 615 | 751 | 652 | 2,671 | |||||||||||||||
| Amortization of employee stock compensation | 22 | 25 | 124 | 62 | 233 | |||||||||||||||
| Provision for income tax | - | - | - | - | - | |||||||||||||||
| EBITDA | $ | (186 | ) | $ | (406 | ) | $ | 4,803 | $ | 4,126 | $ | 8,337 | ||||||||
| Credit loss expense | 70 | 400 | 166 | 159 | 795 | |||||||||||||||
| Loss on lease termination | 303 | - | - | 559 | 862 | |||||||||||||||
| Gain on asset sale | - | - | - | (2,706 | ) | (2,706 | ) | |||||||||||||
| Gain on bargain purchase | - | - | (5,311 | ) | - | (5,311 | ) | |||||||||||||
| Adjustments to gain on bargain purchase | - | - | - | (464 | ) | (464 | ) | |||||||||||||
| Gain on operations transfer | (106 | ) | - | - | - | (106 | ) | |||||||||||||
| Merger costs | 261 | 357 | 584 | 84 | 1,285 | |||||||||||||||
| Other one-time costs | 110 | 86 | 181 | (11 | ) | 366 | ||||||||||||||
| Tail insurance on legacy facilities | 56 | 18 | - | - | 74 | |||||||||||||||
| Adjusted EBITDA from operations | $ | 508 | $ | 455 | $ | 423 | $ | 1,747 | $ | 3,132 | ||||||||||
1 Adjusted EBITDA is a non-GAAP financial measure. See “Use of Non-GAAP Financial Measures” for important additional information.
² Figures omit Meadowood since it is all private pay
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