InnovAge Announces Financial Results for the Fourth Quarter and Fiscal Year Ended June 30, 2026
InnovAge delivers strong fiscal 2026 margin expansion and issues fiscal 2027 revenue and Adjusted EBITDA growth guidance.
Rhea-AI Summary
InnovAge (INNV) reported fiscal 2026 results showing double‑digit revenue growth and a near break‑even bottom line for the year ended June 30, 2026.
Total revenue was $989.7 million, up 15.9% from $853.7 million in 2025. Income before income taxes was $0.3 million versus a $34.0 million loss, and net loss narrowed to $0.7 million from $35.3 million, with net loss margin improving to 0.1% from 4.1%. Net loss attributable to InnovAge was $2.5 million, or $0.02 per share, versus a $30.3 million loss, or $0.22 per share.
Center-level Contribution Margin rose to $227.8 million (23.0% of revenue) from $153.6 million (18.0%), while Adjusted EBITDA increased to $94.6 million (9.6% margin) from $34.5 million (4.0%). Participant census grew to about 8,230 and member months to about 96,050.
For fiscal 2027, InnovAge guides to revenue of $1.05–$1.085 billion, Adjusted EBITDA of $105–$115 million, census of 8,625–8,850 and total member months of 101,000–102,500.
Positive
- Revenue $989.7M in FY26, up 15.9% from $853.7M in FY25
- Net loss reduced to $0.7M from $35.3M, margin to 0.1% from 4.1%
- Center-level Contribution Margin rose to $227.8M (23.0%) from $153.6M (18.0%)
- Adjusted EBITDA increased to $94.6M (9.6%) from $34.5M (4.0%)
- Operating cash flow grew to $64.7M from $32.9M, ending cash and equivalents $97.9M
- FY27 guidance: revenue $1.05–$1.085B, Adjusted EBITDA $105–$115M, above FY26 actuals
Negative
- Company still posted a net loss of $0.7M in FY26
- Net loss attributable to InnovAge was $2.5M, or $0.02 per share
- Total expenses remained high at $987.1M versus revenue of $989.7M
- Litigation costs and settlements added back in Adjusted EBITDA totaled $57.0M in FY26
Details
Market Reaction – INNV
Following this news, INNV has declined 1.76%, reflecting a mild negative market reaction. Our momentum scanner has triggered 5 alerts so far, indicating moderate trading interest and price volatility. The stock is currently trading at $10.58. Trading volume is elevated at 2.8x the average, suggesting increased selling activity.
Data tracked by StockTitan Argus (15 min delayed). Upgrade to Gold for real-time data.
Key Figures
- Fiscal 2026 Revenue
- $989.7 million
- Year ended June 30, 2026; increased 15.9% from 2025
- Income Before Taxes
- $0.3 million
- Fiscal 2026; compared with a $34.0 million loss in 2025
- Net Loss
- $0.7 million
- Fiscal 2026; compared with a $35.3 million net loss in 2025
- Adjusted EBITDA
- $94.6 million
- Fiscal 2026; increased from $34.5 million in 2025
- Fiscal 2027 Revenue Guidance
- $1,050 million-$1,085 million
- Full fiscal year 2027 guidance
- Fiscal 2027 Adjusted EBITDA Guidance
- $105 million-$115 million
- Full fiscal year 2027 guidance
- Census Guidance
- 8,625-8,850 participants
- Full fiscal year 2027 guidance
- Total Member Months Guidance
- 101,000-102,500
- Full fiscal year 2027 guidance
Previous Earnings Reports
-
Revenue and Adjusted EBITDA increased; management raised full-year revenue and EBITDA guidance.
-
Revenue and net income improved; management raised fiscal 2026 revenue and EBITDA guidance.
-
Revenue, net income, EBITDA and contribution margin improved year over year.
-
Revenue and EBITDA improved, but net loss widened and fiscal 2026 guidance was issued.
-
Revenue and EBITDA increased, but net loss widened and fiscal 2025 guidance was maintained.
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Key Terms
pace medical
adjusted ebitda financial
non-gaap measures financial
total member months technical
AI-generated analysis. How Rhea-AI works. Not financial advice.
DENVER, Sept. 08, 2026 (GLOBE NEWSWIRE) -- InnovAge Holding Corp. (“InnovAge” or the “Company”) (Nasdaq: INNV), an industry leader in providing comprehensive healthcare programs to frail, predominantly dual-eligible seniors through the Program of All-inclusive Care for the Elderly (PACE), today announced financial results for its fiscal fourth quarter and full year ended June 30, 2026.
“Fiscal 2026 was an exceptional year for InnovAge and reflects the significant progress we have made strengthening the company,” said Patrick Blair, Chief Executive Officer of InnovAge. “We enter Fiscal 2027 in a strong position, with a durable foundation to serve more seniors and to deliver high-quality care. We remain focused on disciplined execution and creating sustainable long-term value for all of our stakeholders.”
Financial Results
| Three Months Ended | Year Ended | ||||||||||||||
| June 30, 2026 | June 30, 2025 | June 30, 2026 | June 30, 2025 | ||||||||||||
| in thousands, except percentages and per share amounts | |||||||||||||||
| Total revenues | $ | 261,951 | $ | 221,417 | $ | 989,707 | $ | 853,699 | |||||||
| Income (Loss) Before Income Taxes | 9,667 | (4,202 | ) | 266 | (34,027 | ) | |||||||||
| Net Income (Loss) | 9,783 | (5,009 | ) | (683 | ) | (35,343 | ) | ||||||||
| Net Income (Loss) margin | 3.7 | % | (2.3 | )% | (0.1 | )% | (4.1 | )% | |||||||
| Net Income (Loss) Attributable to InnovAge Holding Corp. | $ | 8,287 | $ | (785 | ) | $ | (2,537 | ) | $ | (30,313 | ) | ||||
| Net Income (Loss) per share - basic and diluted | 0.06 | (0.01 | ) | (0.02 | ) | (0.22 | ) | ||||||||
| Center-level Contribution Margin(1) | $ | 62,562 | $ | 41,287 | $ | 227,764 | $ | 153,639 | |||||||
| Adjusted EBITDA(1) | 24,282 | 11,326 | 94,571 | 34,462 | |||||||||||
| Adjusted EBITDA margin(1) | 9.3 | % | 5.1 | % | 9.6 | % | 4.0 | % | |||||||
Fiscal Year 2026 Financial Performance
- Total revenues of
$989.7 million , increased approximately15.9% compared to$853.7 million in 2025 - Income Before Income Taxes of
$0.3 million , increased by100.8% compared to a Loss Before Income Taxes of$34.0 million in 2025 - Income Before Income Taxes as a percent of revenue increased 4.0 percentage points compared to a Loss Before Income Tax as a percent of revenue of
4.0% in 2025 - Net loss of
$0.7 million decreased98% , compared to a net loss of$35.3 million in 2025 - Net loss margin of
0.1% , increased 4.1 percentage points compared to a net loss margin of4.1% in 2025 - Net loss attributable to InnovAge Holding Corp. of
$2.5 million , or loss of$0.02 per share, compared to a net loss of$30.3 million , or loss of$0.22 per share in 2025 - Center-level Contribution Margin(1) of
$227.8 million , increased48.3% compared to$153.6 million in 2025 - Center-level Contribution Margin(1) as a percent of revenue of
23.0% , increased 5.0 percentage points compared to18.0% in 2025 - Adjusted EBITDA(1) of
$94.6 million , an increase of$60.1 million compared to$34.5 million in 2025 - Adjusted EBITDA(1) margin of
9.6% , an increase of 5.5 percentage points compared to4.0% in 2025 - Census of approximately 8,230 participants compared to 7,740 participants in 2025
- Member months of approximately 96,050 compared to 89,130 in 2025
(1) Center-level Contribution Margin, Center-level Contribution Margin as a percent of revenue, Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP measures. For more details and for a definition and reconciliation of these non-GAAP measures to the most closely comparable GAAP measures for the periods indicated, see “Note Regarding Use of Non-GAAP Financial Measures” and “Reconciliation of GAAP and Non-GAAP Measures.”
Full Fiscal Year 2027 Financial Guidance
Based on information as of today, September 8, 2026, InnovAge is issuing the following financial guidance.
| Low | High | ||||||
| dollars in millions | |||||||
| Census | 8,625 | 8,850 | |||||
| Total Member Months(1) | 101,000 | 102,500 | |||||
| Total revenues | $ | 1,050 | $ | 1,085 | |||
| Adjusted EBITDA(2) | 105 | 115 | |||||
Expected results and estimates may be impacted by factors outside the Company’s control, and actual results may be materially different from this guidance. See “Forward-Looking Statements - Safe Harbor” included herein.
(1) We define Total Member Months as the total number of participants multiplied by the number of months within the respective reporting period in which each participant was enrolled in our program. Management believes this is a useful metric as it more precisely tracks the number of participants the Company serves throughout the year.
(2)Adjusted EBITDA is a non-GAAP measure. See “Note Regarding Use of Non-GAAP Financial Measures” and “Reconciliation of GAAP and Non-GAAP Measures” for a definition of historical Adjusted EBITDA and a reconciliation to net income (loss), the most closely comparable GAAP measure. The Company is unable to provide guidance for net income (loss) or a reconciliation of the Company’s Adjusted EBITDA guidance because it cannot provide a meaningful or accurate calculation or estimation of certain reconciling items without unreasonable effort. The Company’s inability to do so is due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliation, including variations in effective tax rate, expenses to be incurred for acquisition activities and other one-time or exceptional items.
Conference Call
The Company will host a conference call this afternoon at 5:00 p.m. Eastern Time. A live audio webcast of the call will be available on the Company’s website, https://investor.innovage.com/. A replay of the call will be available via webcast for on-demand listening shortly after the completion of the call, at the same web link, and will remain available for a limited time. To access the call by phone, please go to this link (registration link), for dialing instructions and a unique access pin. We encourage participants to dial into the call fifteen minutes ahead of the scheduled start time.
About InnovAge
InnovAge is a market leader in managing the care of high-cost, frail, and predominantly dual-eligible seniors through the Program of All-inclusive Care for the Elderly (PACE). With a mission of enabling older adults to age independently in their own homes for as long as safely possible, InnovAge’s patient-centered care model is designed to improve the quality of care its participants receive while reducing over-utilization of high-cost care settings. InnovAge believes its PACE healthcare model is one in which all constituencies — participants, their families, providers and government payors — “win.” As of June 30, 2026, InnovAge served approximately 8,230 participants across 20 centers in six states. https://www.innovage.com/.
Investor Contact:
Ryan Kubota
rkubota@innovage.com
Media Contact:
press@innovage.com
Forward-Looking Statements - Safe Harbor
This press release and the related conference call contain “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as: “anticipate,” “estimate,” “expect,” “project,” “plan,” “intend,” “believe,” “may,” “will,” “should,” “can have,” “likely” and other words and terms of similar meaning in connection with any discussion of the timing or nature of future operating or financial performance or other events. Forward-looking statements may be identified by the fact that they do not relate strictly to historical or current facts. Examples of forward-looking statements include, among others, statements we may make regarding quarterly or annual guidance; financial outlook, including future revenues and future earnings; the viability of our growth strategy including our ability or expectations to increase the number of participants we serve, build and/or open de novo centers, or to identify and execute acquisitions, joint ventures and strategic partnerships; the expected impact of government policies and the macroeconomic environment; reimbursement and regulatory developments, including potential reductions in PACE reimbursement rates; our ability to control costs, mitigate the effects of elevated expenses or reduced healthcare budgets, expand our payer capabilities, implement clinical value and operational value initiatives and strengthen enterprise functions; results of periodic inspections, reviews and audits, legal proceedings and government investigations and actions; relationships and discussions with regulatory agencies; market developments; and the effects of any of the foregoing on our future results of operations or financial conditions.
Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on currently available information and our current beliefs, expectations and assumptions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control and may cause our actual results and financial condition to differ materially. Important factors that could cause our actual results and financial condition to differ materially include, among others, the following: (i) the viability of our growth strategy, including our ability to find suitable geographies for new centers and to attract new participant and retain existing participants in new and existing centers and our ability to obtain licenses to open such centers; (ii) our ability to identify, successfully complete and integrate acquisitions, joint ventures another strategic partnerships; (iii) the impact on our business from ongoing macroeconomic, geopolitical and industry-related challenges, including labor shortages, labor competition, high inflation, and supply chain disruptions, as a result of tariffs and trade disputes; (iv) the risk that the cost of providing services under our PACE contracts will exceed our compensation; (v) our increased costs and expenditures and our inability to execute or realize the benefits of our clinical and operational value initiatives; (vi) the dependence of our revenues upon a limited number of government payors which exposes us to the risk of government funding reductions, legislative changes and federal and state budgetary pressures; (vii) reductions in PACE reimbursement rates; (viii) the results of periodic inspections, reviews, audits and investigations under the federal and state government programs, including our ability to sufficiently cure any deficiencies identified; (ix) the adverse impact of legal proceedings, enforcement actions and litigation disputes, which are costly to defend; (x) the risk that our submissions to government payors may contain inaccurate or unsupportable information, including regarding risk adjustment scores of participants, subjecting us to repayment obligations or penalties; and (xi) our ability to adhere to complex and changing government laws and regulations in the healthcare industry.
Forward-looking statements are based only on information currently available to us and speaks only as of the date on which it is made. Except as required by law, we undertake no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise. We advise you to not place undue reliance on forward-looking statements and to review our risk factors and other disclosures included in the reports we file or furnish 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.
Note Regarding Use of Non-GAAP Financial Measures
In addition to reporting financial information in accordance with generally accepted accounting principles (“GAAP”), the Company is also reporting Center-level Contribution Margin, Center-level Contribution Margin as a percent of revenue, Adjusted EBITDA and Adjusted EBITDA margin, which are non-GAAP financial measures. These non-GAAP measures are supplemental measures of operating performance monitored by management that are not defined under GAAP and that do not represent, and should not be considered as, an alternative to net income (loss) before income taxes, net income (loss) before income taxes margin, net income (loss) and net income (loss) margin, as applicable, as determined by GAAP. We believe that these non-GAAP measures are appropriate measures of operating performance because the metrics eliminate the impact of certain expenses that, in the case of Adjusted EBITDA, do not relate to our ongoing business performance, allowing us to more effectively evaluate our core operating performance and trends from period to period. Our definitions and calculations of non-GAAP measures may vary and not be comparable to similarly titled measures reported by other companies. We believe that these non-GAAP measures help investors and analysts in comparing our results across reporting periods on a consistent basis by excluding items that we do not believe are indicative of our core operating performance. These non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation from, or as a substitute for, the analysis of other comparable GAAP financial measures.
The Company’s management uses Center-level Contribution Margin as the measure for assessing performance of its operating segments and allocating resources, predominantly in the annual budget and forecasting process. For the purpose of evaluating Center-level Contribution Margin on a center-by-center basis, we do not allocate our sales and marketing expense or corporate, general and administrative expenses across our centers. We define Center-level Contribution Margin as total revenues less external provider costs and cost of care, excluding depreciation and amortization, which includes all medical and pharmacy costs.
We define Adjusted EBITDA as net income (loss) adjusted for interest expense, net, other investment income, depreciation and amortization, and provision (benefit) for income tax as well as addbacks for non-recurring expenses or exceptional items, including charges relating to management equity compensation, litigation costs and settlement, M&A diligence, transaction and integration, business optimization, loss on cost and equity method investments, asset impairments and loss on assets held for sale and gain (loss) on sale of assets. Adjusted EBITDA margin is Adjusted EBITDA expressed as a percentage of our total revenue.
| Schedule 1 | |||||||
| InnovAge CONSOLIDATED BALANCE SHEETS (IN THOUSANDS, EXCEPT NUMBER OF SHARES) | |||||||
| June 30, 2026 | June 30, 2025 | ||||||
| Assets | |||||||
| Current Assets | |||||||
| Cash and cash equivalents | $ | 97,891 | $ | 64,129 | |||
| Short-term investments | 43,435 | 41,775 | |||||
| Restricted cash | 10 | 11 | |||||
| Accounts receivable | 42,390 | 36,373 | |||||
| Prepaid expenses and other | 27,311 | 24,472 | |||||
| Income tax receivable | 3,276 | 3,310 | |||||
| Assets held for sale | — | 6,038 | |||||
| Total current assets | 214,313 | 176,108 | |||||
| Noncurrent Assets | |||||||
| Property and equipment, net | 166,086 | 168,044 | |||||
| Operating lease assets | 21,412 | 26,901 | |||||
| Deposits and other | 10,318 | 9,875 | |||||
| Goodwill | 142,046 | 142,046 | |||||
| Other intangible assets, net | 3,218 | 3,877 | |||||
| Total noncurrent assets | 343,080 | 350,743 | |||||
| Total assets | $ | 557,393 | $ | 526,851 | |||
| Liabilities and Stockholders' Equity | |||||||
| Current Liabilities | |||||||
| Accounts payable and accrued expenses | $ | 115,358 | $ | 76,750 | |||
| Reported and estimated claims | 56,864 | 58,971 | |||||
| Due to Medicaid and Medicare | 18,266 | 14,382 | |||||
| Current portion of long-term debt | 2,536 | 2,250 | |||||
| Current portion of finance lease obligations | 6,275 | 5,234 | |||||
| Current portion of operating lease obligations | 4,592 | 4,682 | |||||
| Liabilities held for sale | — | 2,538 | |||||
| Total current liabilities | 203,891 | 164,807 | |||||
| Noncurrent Liabilities | |||||||
| Deferred tax liability, net | 9,051 | 8,761 | |||||
| Finance lease obligations | 8,251 | 7,535 | |||||
| Operating lease obligations | 19,775 | 23,918 | |||||
| Other noncurrent liabilities | 2,128 | 1,458 | |||||
| Long-term debt, net of debt issuance costs | 45,521 | 57,464 | |||||
| Total liabilities | 288,617 | 263,943 | |||||
| Commitments and Contingencies (See Note 9) | |||||||
| Redeemable Noncontrolling Interest (See Note 4) | 30,013 | 25,010 | |||||
| Stockholders’ Equity | |||||||
| Common stock, | 137 | 137 | |||||
| Treasury stock at cost, 1,462,979 and 1,462,979 shares as of June 30, 2026 and June 30, 2025, respectively | (7,500 | ) | (7,500 | ) | |||
| Additional paid-in capital | 348,724 | 343,378 | |||||
| Retained deficit | (105,758 | ) | (101,047 | ) | |||
| Total InnovAge Holding Corp. | 235,603 | 234,968 | |||||
| Noncontrolling interests | 3,160 | 2,930 | |||||
| Total stockholders’ equity | 238,763 | 237,898 | |||||
| Total liabilities and stockholders’ equity | $ | 557,393 | $ | 526,851 | |||
| Schedule 2 | |||||||||||||||
| InnovAge CONSOLIDATED STATEMENTS OF OPERATIONS (IN THOUSANDS, EXCEPT NUMBER OF SHARES AND PER SHARE DATA) | |||||||||||||||
| Three Months Ended | Year Ended | ||||||||||||||
| June 30, 2026 | June 30, 2025 | June 30, 2026 | June 30, 2025 | ||||||||||||
| (unaudited) | |||||||||||||||
| Revenues | |||||||||||||||
| Capitation revenue | $ | 261,511 | $ | 221,060 | $ | 988,384 | $ | 852,353 | |||||||
| Other service revenue | 440 | 357 | 1,323 | 1,346 | |||||||||||
| Total revenues | 261,951 | 221,417 | 989,707 | 853,699 | |||||||||||
| Expenses | |||||||||||||||
| External provider costs | 115,737 | 108,169 | 449,843 | 431,152 | |||||||||||
| Cost of care, excluding depreciation and amortization | 83,652 | 71,961 | 312,100 | 268,908 | |||||||||||
| Sales and marketing | 9,933 | 7,100 | 34,361 | 28,217 | |||||||||||
| Corporate, general and administrative | 33,077 | 27,823 | 166,489 | 122,058 | |||||||||||
| Depreciation and amortization | 6,356 | 3,394 | 21,142 | 19,510 | |||||||||||
| Impairments and loss on assets held for sale | 3,050 | 5,120 | 3,154 | 13,615 | |||||||||||
| Total expenses | 251,805 | 223,567 | 987,089 | 883,460 | |||||||||||
| Operating Income (Loss) | 10,146 | (2,150 | ) | 2,618 | (29,761 | ) | |||||||||
| Other Income (Expense) | |||||||||||||||
| Interest expense, net | (772 | ) | (893 | ) | (4,258 | ) | (4,612 | ) | |||||||
| Loss on cost and equity method investments | — | (1,409 | ) | — | (1,393 | ) | |||||||||
| Other income, net | 293 | 250 | 1,906 | 1,739 | |||||||||||
| Total other expense | (479 | ) | (2,052 | ) | (2,352 | ) | (4,266 | ) | |||||||
| Income (Loss) Before Income Taxes | 9,667 | (4,202 | ) | 266 | (34,027 | ) | |||||||||
| Provision for Income Taxes | (116 | ) | 807 | 949 | 1,316 | ||||||||||
| Net Income (Loss) | 9,783 | (5,009 | ) | (683 | ) | (35,343 | ) | ||||||||
| Less: net income (loss) attributable to noncontrolling interests | 1,496 | (4,224 | ) | 1,854 | (5,030 | ) | |||||||||
| Net Income (Loss) Attributable to InnovAge Holding Corp. | $ | 8,287 | $ | (785 | ) | $ | (2,537 | ) | $ | (30,313 | ) | ||||
| Weighted-average number of commonshares outstanding - basic | 135,812,522 | 135,133,574 | 135,698,603 | 135,387,555 | |||||||||||
| Weighted-average number of commonshares outstanding - diluted | 137,157,943 | 135,133,574 | 135,698,603 | 135,387,555 | |||||||||||
| Net loss per share - basic | $ | 0.06 | $ | (0.01 | ) | $ | (0.02 | ) | $ | (0.22 | ) | ||||
| Net loss per share - diluted | $ | 0.06 | $ | (0.01 | ) | $ | (0.02 | ) | $ | (0.22 | ) | ||||
| Schedule 3 | |||||||
| InnovAge CONSOLIDATED STATEMENTS OF CASH FLOWS (IN THOUSANDS) | |||||||
| Year Ended June 30, | |||||||
| 2026 | 2025 | ||||||
| Operating Activities | |||||||
| Net loss | $ | (683 | ) | $ | (35,343 | ) | |
| Adjustments to reconcile net loss to net cash provided by (used in) operating activities | |||||||
| (Gain) loss on disposal of assets | (418 | ) | 508 | ||||
| Provision for uncollectible accounts | — | 524 | |||||
| Depreciation and amortization | 21,142 | 19,510 | |||||
| Operating lease rentals | 6,860 | 6,361 | |||||
| Loss (gain) on cost and equity method investments | — | 1,393 | |||||
| Impairments and loss on assets held for sale | 3,154 | 13,615 | |||||
| Amortization of deferred financing costs | 772 | 429 | |||||
| Stock-based compensation | 7,048 | 7,619 | |||||
| Deferred income taxes | 289 | 1,301 | |||||
| Other | 3,069 | 1,714 | |||||
| Changes in operating assets and liabilities, net of acquisitions | |||||||
| Accounts receivable | (6,018 | ) | 11,210 | ||||
| Prepaid expenses and other | (2,832 | ) | (4,041 | ) | |||
| Income tax receivable | 34 | 14 | |||||
| Deposits and other | (1,919 | ) | (6,419 | ) | |||
| Accounts payable and accrued expenses | 38,446 | 20,431 | |||||
| Reported and estimated claims | (2,107 | ) | 3,567 | ||||
| Due to Medicaid and Medicare | 3,883 | (814 | ) | ||||
| Operating lease liabilities | (6,006 | ) | (8,713 | ) | |||
| Net cash provided by operating activities | 64,714 | 32,866 | |||||
| Investing Activities | |||||||
| Purchases of property and equipment | (14,309 | ) | (6,263 | ) | |||
| Purchases of short-term investments | (1,747 | ) | (2,065 | ) | |||
| Proceeds from sale of short-term investments | — | 6,300 | |||||
| Proceeds from dissolution of equity method investments | — | 1,252 | |||||
| Acquisition of business | — | (4,774 | ) | ||||
| Proceeds from sale of assets held for sale | 3,716 | — | |||||
| Net cash used in investing activities | (12,340 | ) | (5,550 | ) | |||
| Financing Activities | |||||||
| Payments for finance lease obligations | (5,206 | ) | (6,107 | ) | |||
| Proceeds from long-term debt | 60,082 | — | |||||
| Principal payments on long-term debt | (71,282 | ) | (3,799 | ) | |||
| Payment of debt issuance costs | (1,989 | ) | — | ||||
| Repurchase of equity securities | — | (7,321 | ) | ||||
| Contributions from joint venture partner | 3,200 | — | |||||
| Distributions to joint venture partner | (1,634 | ) | — | ||||
| Taxes paid related to net settlements of stock-based compensation awards | (1,702 | ) | (1,855 | ) | |||
| Net cash used in financing activities | (18,531 | ) | (19,082 | ) | |||
| Net change in cash, cash equivalents and restricted cash including cash of | 33,843 | 8,234 | |||||
| Less: change in cash and restricted cash reclassified to assets held for sale | (82 | ) | (1,054 | ) | |||
| INCREASE IN CASH, CASH EQUIVALENTS & RESTRICTED CASH | 33,761 | 7,180 | |||||
| CASH, CASH EQUIVALENTS & RESTRICTED CASH, BEGINNING OF PERIOD | 64,140 | 56,960 | |||||
| CASH, CASH EQUIVALENTS & RESTRICTED CASH, END OF PERIOD | $ | 97,901 | $ | 64,140 | |||
| Supplemental Cash Flows Information | |||||||
| Interest paid | $ | 4,206 | $ | 4,348 | |||
| Income taxes paid | $ | 627 | $ | 1 | |||
| Property and equipment included in accounts payable | $ | 1,257 | $ | 1,734 | |||
| Property and equipment purchased under capital leases | $ | 6,965 | $ | 1,533 | |||
| Schedule 4 | |||||||||||||||
| InnovAge RECONCILIATION OF GAAP AND NON-GAAP MEASURES (IN THOUSANDS) (UNAUDITED) Adjusted EBITDA | |||||||||||||||
| Three Months Ended | Year Ended | ||||||||||||||
| June 30, 2026 | June 30, 2025 | June 30, 2026 | June 30, 2025 | ||||||||||||
| Net income (loss) | $ | 9,783 | $ | (5,009 | ) | $ | (683 | ) | $ | (35,343 | ) | ||||
| Interest expense, net | 772 | 893 | 4,258 | 4,612 | |||||||||||
| Other investment income(a) | (146 | ) | (497 | ) | (1,422 | ) | (2,247 | ) | |||||||
| Depreciation and amortization | 6,356 | 3,394 | 21,142 | 19,510 | |||||||||||
| Provision for income tax | (116 | ) | 807 | 949 | 1,316 | ||||||||||
| Stock-based compensation | 1,734 | 1,550 | 7,048 | 7,619 | |||||||||||
| Litigation costs and settlements(b) | 2,849 | 1,626 | 56,966 | 19,367 | |||||||||||
| M&A diligence, transaction and integration(c) | — | (222 | ) | — | 1,360 | ||||||||||
| Business optimization(d) | — | 2,195 | 3,540 | 3,040 | |||||||||||
| Loss on cost and equity method investments(e) | — | 1,393 | — | 1,393 | |||||||||||
| Asset impairments and loss on assets held for sale(f) | 3,050 | 4,976 | 3,154 | 13,615 | |||||||||||
| (Gain) loss on sale of assets(g) | — | 220 | (381 | ) | 220 | ||||||||||
| Adjusted EBITDA | $ | 24,282 | $ | 11,326 | $ | 94,571 | $ | 34,462 | |||||||
| Net income (loss) margin | 3.7 | % | (2.3 | )% | (0.1 | )% | (4.1 | )% | |||||||
| Adjusted EBITDA margin | 9.3 | % | 5.1 | % | 9.6 | % | 4.0 | % | |||||||
_______________________
| (a) | Reflects investment income related to short term investments included in our consolidated statements of operations. | |
| (b) | Reflects charges/(credits) related to litigation by stockholders, civil investigative demands, and settlement with our former pharmacy provider. Refer to Note 9, "Commitments and Contingencies" to our consolidated financial statements included in this Annual Report for more information regarding litigation by stockholders and civil investigative demands. Costs reflected consist of litigation costs considered one-time in nature and outside of the ordinary course of business based on the following considerations which we assess regularly: (i) the frequency of similar cases that have been brought to date, or are expected to be brought within two years, (ii) complexity of the case, (iii) nature of the remedies sought, (iv) litigation posture of the Company, (v) counterparty involved, and (vi) the Company's overall litigation strategy. For the three months ended June 30, 2026, includes | |
| (c) | Reflects charges related to M&A diligence, transactions and integrations. | |
| (d) | Reflects charges related to business optimization initiatives. Such charges related to one-time investments in projects designed to enhance our technology and compliance systems and improve and support the efficiency and effectiveness of our operations. For the three months ended June 30, 2025 this consists of | |
| (e) | For both the three months ended June 30, 2025 and the year ended June 30, 2025, reflects | |
| (f) | For the three months ended June 30, 2026, includes impairment charges related to ROU asset and construction in progress related to a previously planned de novo center in Downey, California. For the three months ended June 30, 2025, includes (ii) loss on assets held for sale, and (iii) loss on settlement of lease liability in Louisville, Kentucky. For the year ended June 30, 2026, reflects (i) additional loss related to the Company’s sale of its managing member interest in SH1 and the adjacent land and (ii) impairment charges related to ROU asset and construction in progress related to a previously planned de novo center in Downey, California. For the year ended June 30, 2025, reflects (i) impairment charges related to ROU asset and construction in progress related to halting developments related to the planned Louisville, Kentucky center, (ii) loss on assets held for sale, and (iii) loss on settlement of lease liability in Louisville, Kentucky. | |
| (g) | For the year ended June 30, 2026, reflects gain on sale of center equipment that was originally purchased for the center in Louisville, Kentucky. For both the three months ended June 30, 2025 and the year ended June 30, 2025, reflects loss on sale of center equipment that was originally purchased for the center in Louisville, Kentucky. | |
| Three Months Ended | |||
| March 31, 2026 | |||
| Net loss | $ | (29,940 | ) |
| Interest expense, net | 988 | ||
| Other investment income(a) | (294 | ) | |
| Depreciation and amortization | 4,824 | ||
| Provision for income tax | 167 | ||
| Stock-based compensation | 1,790 | ||
| Litigation costs and settlements(b) | 51,859 | ||
| Business optimization(c) | 1,101 | ||
| Adjusted EBITDA | $ | 30,495 | |
| Net loss margin | (11.9 | )% | |
| Adjusted EBITDA margin | 12.1 | % | |
_______________________
| (a) | Reflects investment income related to short-term investments included in our consolidated statement of operations. | |
| (b) | Reflects charges/(credits) related to litigation by stockholders, civil investigative demands, and settlement with our former pharmacy provider. Refer to Note 9, "Commitments and Contingencies" to our condensed consolidated financial statements for more information regarding these proceedings. Costs reflected consist of litigation costs considered one-time in nature and outside of the ordinary course of business based on the following considerations which we assess regularly: (i) the frequency of similar cases that have been brought to date, or are expected to be brought within two years, (ii) complexity of the case, (iii) nature of the remedies sought, (iv) litigation posture of the Company, (v) counterparty involved, and (vi) the Company's overall litigation strategy. | |
| (c) | Reflects charges related to business optimization initiatives. Such charges relate to one-time investments in projects designed to enhance our technology and compliance systems and improve and support the efficiency and effectiveness of our operations. For the three months ended March 31, 2026, this consists of costs related to organizational restructure. | |
Center-Level Contribution Margin
| Year Ended June 30, 2026 | Year Ended June 30, 2025 | ||||||||||||||||||||||
| in thousands | PACE | All other(1) | Totals | PACE | All other(1) | Totals | |||||||||||||||||
| Capitation revenue | $ | 988,384 | $ | — | $ | 988,384 | $ | 852,353 | $ | — | $ | 852,353 | |||||||||||
| Other service revenue | 1,066 | 257 | 1,323 | 356 | 990 | 1,346 | |||||||||||||||||
| Total revenues | 989,450 | 257 | 989,707 | 852,709 | 990 | 853,699 | |||||||||||||||||
| External provider costs | 449,843 | — | 449,843 | 431,152 | — | 431,152 | |||||||||||||||||
| Cost of care, excluding depreciation and amortization | 311,967 | 133 | 312,100 | 268,338 | 570 | 268,908 | |||||||||||||||||
| Center-Level Contribution Margin | 227,640 | 124 | 227,764 | 153,219 | 420 | 153,639 | |||||||||||||||||
| Sales and marketing | 34,361 | 28,217 | |||||||||||||||||||||
| Corporate, general and administrative | 166,489 | 122,058 | |||||||||||||||||||||
| Depreciation and amortization | 21,142 | 19,510 | |||||||||||||||||||||
| Impairments and loss on assets held for sale | 3,154 | 13,615 | |||||||||||||||||||||
| Operating income (loss) | 2,618 | (29,761 | ) | ||||||||||||||||||||
| Other expense | (2,352 | ) | (4,266 | ) | |||||||||||||||||||
| Income (Loss) Before Income Taxes | $ | 266 | $ | (34,027 | ) | ||||||||||||||||||
| Loss Before Income Taxes as a % of revenue | — | % | (4.0 | )% | |||||||||||||||||||
| Center- Level Contribution Margin as a % of revenue | 23.0 | % | 18.0 | % | |||||||||||||||||||
| Three Months Ended June 30, 2026 | Three Months Ended June 30, 2025 | ||||||||||||||||||||||
| in thousands | PACE | All other(1) | Totals | PACE | All other(1) | Totals | |||||||||||||||||
| Capitation revenue | $ | 261,511 | $ | — | $ | 261,511 | $ | 221,060 | $ | — | $ | 221,060 | |||||||||||
| Other service revenue | 440 | — | 440 | 104 | 253 | 357 | |||||||||||||||||
| Total revenues | 261,951 | — | 261,951 | 221,164 | 253 | 221,417 | |||||||||||||||||
| External provider costs | 115,737 | — | 115,737 | 108,169 | — | 108,169 | |||||||||||||||||
| Cost of care, excluding depreciation and amortization | 83,652 | — | 83,652 | 71,816 | 145 | 71,961 | |||||||||||||||||
| Center-Level Contribution Margin | 62,562 | — | 62,562 | 41,179 | 108 | 41,287 | |||||||||||||||||
| Sales and marketing | 9,933 | 7,100 | |||||||||||||||||||||
| Corporate, general and administrative | 33,077 | 27,823 | |||||||||||||||||||||
| Depreciation and amortization | 6,356 | 3,394 | |||||||||||||||||||||
| Impairments and loss on assets held for sale | 3,050 | 5,120 | |||||||||||||||||||||
| Operating income (loss) | 10,146 | (2,150 | ) | ||||||||||||||||||||
| Other expense | (479 | ) | (2,052 | ) | |||||||||||||||||||
| Income (Loss) Before Income Taxes | $ | 9,667 | $ | (4,202 | ) | ||||||||||||||||||
| Loss Before Income Taxes as a % of revenue | 3.7 | % | (1.9 | )% | |||||||||||||||||||
| Center- Level Contribution Margin as a % of revenue | 23.9 | % | 18.6 | % | |||||||||||||||||||
Center-Level Contribution Margin
| Three Months Ended March 31, 2026 | |||||||||||
| (In thousands) | PACE | All other(1) | Totals | ||||||||
| Capitation revenue | $ | 251,502 | $ | — | $ | 251,502 | |||||
| Other service revenue | 441 | — | 441 | ||||||||
| Total revenues | 251,943 | — | 251,943 | ||||||||
| External provider costs | 113,247 | — | 113,247 | ||||||||
| Cost of care, excluding depreciation and amortization | 77,676 | — | 77,676 | ||||||||
| Center-Level Contribution Margin | 61,020 | — | 61,020 | ||||||||
| Sales and marketing | 8,744 | ||||||||||
| Corporate, general and administrative | 76,531 | ||||||||||
| Depreciation and amortization | 4,824 | ||||||||||
| Impairments and loss on assets held for sale | — | ||||||||||
| Operating Loss | (29,079 | ) | |||||||||
| Other expense | (694 | ) | |||||||||
| Loss Before Income Taxes | $ | (29,773 | ) | ||||||||
| Loss Before Income Taxes as a % of revenue | (11.8 | )% | |||||||||
| Center- Level Contribution Margin as a % of revenue | 24.2 | % | |||||||||
_______________________
| (1) | Center-level Contribution Margin from a segment below the quantitative thresholds was attributable to the Senior Housing operating segment of the Company as of June 30, 2026. This segment never met any of the quantitative thresholds for determining reportable segments. |
This press release was published by a CLEAR® Verified individual.
FAQ
How did InnovAge perform in the fourth quarter of fiscal 2026 compared to the prior-year quarter?
For the quarter ended June 30, 2026, total revenues were $261.9 million versus $221.4 million a year earlier. Operating income was $10.1 million compared to a $2.2 million operating loss, and income before income taxes was $9.7 million versus a $4.2 million loss. Net income was $9.8 million compared to a $5.0 million net loss, with net income attributable to InnovAge of $8.3 million versus a $0.8 million loss. Fourth‑quarter Adjusted EBITDA was $24.3 million, up from $11.3 million, and the Adjusted EBITDA margin was 9.3% versus 5.1%.
What operational scale did InnovAge report at the end of fiscal 2026?
As of June 30, 2026, InnovAge served approximately 8,230 participants across 20 centers in six states. For fiscal 2026, the company reported approximately 96,050 member months, up from about 89,130 in 2025.
How does InnovAge define Total Member Months and why is it used?
InnovAge defines Total Member Months as the total number of participants multiplied by the number of months within the reporting period in which each participant was enrolled in its program. Management views this as a useful metric because it more precisely tracks the number of participants the company serves throughout the year.
What guidance did InnovAge provide for fiscal 2027 census and member months?
For fiscal 2027, InnovAge expects census to range from 8,625 to 8,850 participants and Total Member Months to range from 101,000 to 102,500.
What was InnovAge’s cash and debt position at June 30, 2026?
At June 30, 2026, InnovAge reported cash and cash equivalents of $97.9 million, short‑term investments of $43.4 million and total assets of $557.4 million. Long‑term debt, net of issuance costs, was $45.5 million, with current portion of long‑term debt of $2.5 million. Total liabilities were $288.6 million and total stockholders’ equity was $238.8 million.
How can investors access InnovAge’s fiscal 2026 earnings conference call and replay?
The company is hosting a conference call at 5:00 p.m. Eastern Time on September 8, 2026. A live audio webcast and an on‑demand replay are available on the investor relations section of its website at https://investor.innovage.com/. To access the call by phone, participants must use the provided registration link to obtain dialing instructions and a unique access PIN and are encouraged to connect 15 minutes before the start time.
What does InnovAge describe as its core business model and mission?
InnovAge manages the care of high‑cost, frail, predominantly dual‑eligible seniors through the Program of All‑inclusive Care for the Elderly (PACE). The company’s stated mission is to enable older adults to age independently in their own homes for as long as safely possible, using a patient‑centered care model intended to improve quality of care while reducing over‑utilization of high‑cost care settings.