Regional Health Properties Reports Second Quarter 2026 Results
.Reported Second Quarter Revenue of $24.4 million
Generated Adjusted EBITDA from Operations of $0.7 million
Continued Execution of Integrated Healthcare Platform Strategy
ATLANTA, GA, Aug. 19, 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 second quarter ended June 30, 2026.
Second Quarter 2026 Financial Results
- Reported revenue of $24.4 million, compared with $10.1 million for the second quarter of 2025
- Reported GAAP net loss of $0.8 million, compared with GAAP net loss of $1.5 million for the second quarter of 2025
- Generated Adjusted EBITDA from operations of $0.7 million, compared with $56,000 for the second quarter of 2025
- Reported net loss attributable to common stockholders of $0.20 per share, compared with $0.68 per share for the second quarter of 2025
Second Quarter 2026 Business Highlights
- Pharmacy Services revenue was $9.6 million following the addition of the Pharmacy Services segment in connection with the SunLink merger
- Patient care revenues increased to $14.0 million, driven primarily by the transition of facilities to the Healthcare Services segment and higher census across the portfolio
- Portfolio occupancy was 74.9% at June 30, 2026 vs. 66.2% at June 30, 2025, an 870-basis-point improvement.
- Repurchased 5,000 shares of the Company’s 12.5% Series B Cumulative Redeemable Preferred Shares during the quarter at a discount to carrying value
- Continued to evaluate refinancing and liquidity alternatives, including potential refinancing of the Southland facility and other mortgage loans
Management Comments
Brent Morrison, Regional’s President, Chief Executive Officer and Chairman, commented, “Our strategy of selectively stepping back into the operations of our owned facilities continues to progress. Our operating partners are making meaningful progress streamlining facility operations, improving census and managing costs to generate stronger and more sustainable cash flow. Importantly, several of our operated facilities are now generating facility-level EBITDAR in excess of the lease payments we previously received as a landlord, demonstrating the potential economic value of our owner-operator strategy.”
Mr. Morrison continued, “Our priorities for the remainder of 2026 remain focused on improving facility-level margins, continuing to integrate and optimize our Pharmacy and DME businesses, and advancing refinancing initiatives. As operating performance improves, our objective is to convert that progress into stronger free cash flow while maintaining disciplined capital allocation. We believe these efforts can strengthen Regional’s financial profile, simplify our capital structure and create additional value for our common shareholders over time.”
Balance Sheet And Liquidity
As of June 30, 2026, the Company had $1.7 million of unrestricted cash and $2.8 million of restricted cash. As of June 30, 2026, the Company had $42.6 million of indebtedness, net of deferred financing costs and unamortized discounts. The Company continues to evaluate refinancing opportunities intended to improve liquidity, extend maturities and provide additional flexibility to execute its capital allocation strategy.
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, liquidity, capital resources, refinancing alternatives, facility operations, pharmacy operations, 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: the operating performance of our Healthcare Services and Pharmacy Services segments; our ability to collect patient, pharmacy and rent receivables; our dependence on the operating success of our tenants and managers; our ability to service our indebtedness and comply with covenants; the availability and cost of capital; our ability to refinance indebtedness, raise capital or complete asset sales on acceptable terms; changes in reimbursement rates and healthcare regulation; pharmacy reimbursement and claims-processing risk; labor costs, staffing availability and union-related matters; regulatory survey and compliance matters; inflation and interest rates; litigation and insurance costs; the relatively illiquid nature of real estate investments; and other factors discussed from time to time in our filings with the Securities and Exchange Commission, 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 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, except to the extent otherwise required by applicable law.
| Company Contact |
| Brent Morrison, CFA |
| Chief Executive Officer & President |
| Regional Health Properties, Inc. |
| Tel 678-869-5116 |
| Brent.morrison@regionalhealthproperties.com |
| REGIONAL HEALTH PROPERTIES, INC. | ||||||||
| STATEMENT OF OPERATIONS | ||||||||
| (in thousands) | ||||||||
| Three Months Ended June 30, | ||||||||
| 2026 | 2025 | |||||||
| (Unaudited) | ||||||||
| Revenues: | ||||||||
| Patient care revenues | $ | 14,001 | $ | 8,774 | ||||
| Rental revenues | 801 | 1,283 | ||||||
| Pharmacy revenues | 9,640 | — | ||||||
| Total revenues | 24,442 | 10,057 | ||||||
| Expenses: | ||||||||
| Cost of goods sold | 6,089 | — | ||||||
| Patient care expense | 10,654 | 7,184 | ||||||
| Facility rent expense | 247 | 149 | ||||||
| Depreciation and amortization | 757 | 403 | ||||||
| General and administrative expense | 6,696 | 2,429 | ||||||
| Credit loss expense | 215 | 400 | ||||||
| Total expenses | 24,658 | 10,565 | ||||||
| Loss from operations | (216 | ) | (508 | ) | ||||
| Other expense: | ||||||||
| Interest expense, net | 567 | 615 | ||||||
| Loss on disposal of assets | 8 | — | ||||||
| Other (income) expense, net | — | 326 | ||||||
| Total other (income) expense, net | 575 | 941 | ||||||
| Net loss | (791 | ) | (1,449 | ) | ||||
| Deemed contribution related to Preferred Series B purchases | 9 | — | ||||||
| Net loss attributable to Regional Health Properties, Inc. common stockholders | $ | (782 | ) | $ | (1,449 | ) | ||
| Net loss per share of common stock attributable to Regional Health Properties, Inc.: | ||||||||
| Basic and Diluted | $ | (0.20 | ) | $ | (0.68 | ) | ||
| Weighted average shares of common stock outstanding: | ||||||||
| Basic and Diluted | 3,928 | 2,143 | ||||||
| REGIONAL HEALTH PROPERTIES, INC. | ||||||||
| BALANCE SHEET | ||||||||
| (in thousands) | ||||||||
| 6/30/2026 | 12/31/2025 | |||||||
| (Unaudited) | ||||||||
| ASSETS | ||||||||
| Cash | $ | 1,728 | $ | 3,013 | ||||
| Restricted cash | 2,052 | 1,631 | ||||||
| Accounts receivable, net of allowances of $933 and $727 | 10,294 | 8,025 | ||||||
| Inventory | 1,520 | 1,354 | ||||||
| Notes receivable | 594 | 644 | ||||||
| Prepaid expenses and other | 1,532 | 1,623 | ||||||
| Total current assets | 17,720 | 16,290 | ||||||
| Property and equipment, net | 35,189 | 35,805 | ||||||
| Assets held for sale, net | 4,251 | 4,207 | ||||||
| Restricted cash | 796 | 1,420 | ||||||
| Intangible assets | 4,607 | 4,660 | ||||||
| Other assets | 3,815 | 3,842 | ||||||
| Goodwill | 1,585 | 1,585 | ||||||
| Total assets | $ | 67,963 | $ | 67,809 | ||||
| LIABILITIES AND EQUITY | ||||||||
| Accounts payable | $ | 7,337 | $ | 6,986 | ||||
| Accrued expenses | 9,329 | 7,888 | ||||||
| Other liabilities | 1,982 | 867 | ||||||
| Debt related to assets held for sale, net | 3,072 | 3,001 | ||||||
| Current portion of long term debt | 5,366 | 5,414 | ||||||
| Total current liabilities | 27,086 | 24,156 | ||||||
| Long-term debt, net - less current maturities | 34,123 | 34,738 | ||||||
| Operating lease obligation | 2,276 | 2,325 | ||||||
| Other liabilities | 1,499 | 1,550 | ||||||
| Total liabilities | 64,984 | 62,769 | ||||||
| 'Preferred stock, Series D, no par values, 1,420 shares authorized; 1,405 shares issued and outstanding at June 30, 2026 and December 31, 2025. | 4,691 | 4,691 | ||||||
| Stockholders' equity: | ||||||||
| Common stock and additional paid-in capital, no par value; 55,000 shares authorized; 3,936 issued and 3,925 outstanding at June 30, 2026 and 3,946 issued and 3,935 outstanding at December 31, 2025. | 67,465 | 67,296 | ||||||
| Preferred stock, no par value; 5,000 shares authorized (including amounts authorized for Series A, Series B and Series D); shares issued and outstanding designated separately | ||||||||
| Preferred stock, Series A, no par value; 560 shares authorized, issued and outstanding at June 30, 2026 and December 31, 2025, with a redemption amount $426 at June 30, 2026 and December 31, 2025 | 426 | 426 | ||||||
| Preferred stock, Series B, no par value; 2,812 shares authorized; 1,706 and 1,741 shares issued and outstanding at June 30, 2026 and December 31, 2025, respectively, with a redemption amount $14,100 and $14,382 at June 30, 2026 and December 31, 2025, respectively | 14,091 | 14,382 | ||||||
| Accumulated deficit | (83,716 | ) | (81,777 | ) | ||||
| Accumulated other comprehensive earnings | 22 | 22 | ||||||
| Total stockholders' equity (deficit) | (1,712 | ) | 349 | |||||
| Total liabilities, Series D preferred stock and stockholders' equity (deficit) | $ | 67,963 | $ | 67,809 | ||||
| DEBT SUMMARY | ||||||||||||||||||||||||||||
| (in thousands) | ||||||||||||||||||||||||||||
| 6/30/2026 | ||||||||||||||||||||||||||||
| Maturity | Interest Rate | Principal | % of Principal | Deferred financing costs | Unamortized discount on bonds | Net Carrying Value | ||||||||||||||||||||||
| Total Fixed Rate Debt | 04/04/33 | 4.35 | % | 36,477 | 84.1 | % | (637 | ) | (98 | ) | 35,742 | |||||||||||||||||
| Total Floating Rate Debt | 10/02/36 | 8.42 | % | 6,886 | 15.9 | % | (67 | ) | - | 6,819 | ||||||||||||||||||
| Total | $ | 43,363 | 100.0 | % | $ | (704 | ) | $ | (98 | ) | $ | 42,561 | ||||||||||||||||
| REGIONAL HEALTH PROPERTIES, INC. | ||||||||
| RECONCILIATION OF NET (LOSS) TO NON-GAAP FINANCIAL MEASURES | ||||||||
| (in thousands) | ||||||||
| Three Months Ended June 30, | ||||||||
| 2026 | 2025 | |||||||
| (Unaudited) | ||||||||
| Net loss | $ | (791 | ) | $ | (1,449 | ) | ||
| Depreciation and amortization | 757 | 403 | ||||||
| Interest expense, net | 567 | 615 | ||||||
| EBITDA | 533 | (431 | ) | |||||
| Amortization of employee stock compensation | 73 | 25 | ||||||
| Merger and other one-time costs | — | 357 | ||||||
| Tail insurance on legacy facilities | — | 19 | ||||||
| Other one-time income | 143 | 86 | ||||||
| Adjusted EBITDA from operations | $ | 749 | $ | 56 | ||||
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