InnovAge (Nasdaq: INNV) grows Q3 2026 revenue but posts $29.9M loss
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
InnovAge Holding Corp. reported fiscal third-quarter 2026 results showing strong revenue growth but a larger net loss. Total revenues rose to $251.9 million, up about 15.5% from $218.1 million a year earlier, driven by higher PACE program volume.
Despite this growth, the company reported a net loss of $29.9 million versus a net loss of $11.1 million in the prior-year quarter, and its net loss margin widened to 11.9%. Results included substantial litigation costs and settlement charges of $51.9 million, which heavily affected GAAP profitability.
Operationally, Center-level Contribution Margin improved to $61.0 million, up nearly 50%, and Adjusted EBITDA increased to $30.5 million with a 12.1% margin, up from 4.9%. InnovAge ended the quarter serving about 8,050 participants and raised full-year 2026 guidance to total revenues of $950–$975 million and Adjusted EBITDA of $85–$90 million.
Positive
- Strong underlying growth and margin expansion: Q3 2026 revenue rose about 15.5% to $251.9 million, Center-level Contribution Margin increased nearly 50% to $61.0 million, and Adjusted EBITDA climbed to $30.5 million with margin improving from 4.9% to 12.1%.
Negative
- GAAP profitability pressured by large litigation charges: Net loss widened to $29.9 million and net loss margin to 11.9%, heavily affected by $51.9 million of litigation costs and settlement in the quarter.
Insights
Revenue and EBITDA trends improved, but heavy litigation costs drove a larger GAAP loss.
InnovAge grew fiscal Q3 2026 revenue to $251.9 million, up about 15.5% year over year, while Adjusted EBITDA rose to $30.5 million with a 12.1% margin. Center-level Contribution Margin also expanded meaningfully, suggesting underlying operations are strengthening.
However, net loss deepened to $29.9 million and net loss margin to 11.9%, largely because of $51.9 million in litigation costs and settlement. These items significantly distort GAAP results relative to non-GAAP performance metrics.
The company raised full-year 2026 guidance to total revenues of $950–$975 million and Adjusted EBITDA of $85–$90 million. Cash and cash equivalents of $95.5 million plus $43.1 million in short-term investments against $69.4 million of debt, as of March 31, 2026, indicate a solid liquidity position from the data provided.
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Q3 2026 Revenue: $251.9 million
Q3 2026 Net Loss: $29.9 million
Q3 2026 Adjusted EBITDA: $30.5 million
+5 more
8 metrics
Q3 2026 Revenue
$251.9 million
Three months ended March 31, 2026
Q3 2026 Net Loss
$29.9 million
Three months ended March 31, 2026
Q3 2026 Adjusted EBITDA
$30.5 million
Non-GAAP, three months ended March 31, 2026
Litigation costs and settlement
$51.9 million
Adjustment in Q3 2026 Adjusted EBITDA reconciliation
FY 2026 Revenue Guidance
$950–$975 million
Revised full-year fiscal 2026 outlook
FY 2026 Adjusted EBITDA Guidance
$85–$90 million
Revised full-year fiscal 2026 outlook
Cash and Short-term Investments
$138.6 million
Cash and cash equivalents plus short-term investments as of March 31, 2026
Debt Balance
$69.4 million
Debt under term loan, revolver and finance leases as of March 31, 2026
Key Terms
Adjusted EBITDA, Center-level Contribution Margin, Total Member Months, Redeemable Noncontrolling Interests, +2 more
6 terms
Adjusted EBITDA financial
"Adjusted EBITDA(1) of $30.5 million, an increase of $19.7 million"
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
Center-level Contribution Margin financial
"Center-level Contribution Margin(1) of $61.0 million, increased 49.8%"
Center-level contribution margin measures how much money a single facility or business unit generates after covering the costs that change with activity (like supplies, hourly staff, and direct procedure expenses). It shows how much of each dollar of revenue from that center is left to pay fixed costs (rent, salaries, corporate overhead) and contribute to profit; investors use it to compare efficiency and scalability across locations the way you’d compare how much cash each shop on a street yields after paying its running costs.
Total Member Months financial
"Total Member Months (1) 92,900 95,700"
Redeemable Noncontrolling Interests financial
"Redeemable Noncontrolling Interests 26,115 25,010"
A redeemable noncontrolling interest is a minority ownership stake in a company that the holder can force the company to buy back at a set price or under certain conditions. For investors this matters because it creates a future cash obligation and can be treated more like a liability than permanent equity, affecting a company’s reported debt, net income and valuation — think of it as a part-owner who can cash out, forcing the business to pay them.
capitation revenue financial
"Capitation revenue $ 251,502 $ 217,819"
Capitation revenue is the fixed payment a health insurer or medical provider receives for each enrolled person over a set period (often per member per month), regardless of how many services that person uses. It matters to investors because it creates predictable income like a subscription, but also shifts the cost risk to the payer — if actual care costs exceed the fixed payments, profit falls, while efficient care delivery can boost margins and cash flow.
Program of All-inclusive Care for the Elderly (PACE) financial
"through the Program of All-inclusive Care for the Elderly (PACE)"
Program of All-Inclusive Care for the Elderly (PACE) is a U.S. government-authorized healthcare model that coordinates and pays for a full range of medical, personal and social services so older adults who need nursing‑home level care can remain in the community. Investors care because PACE creates a bundled, subscription‑style payment relationship that influences revenue predictability, cost exposure and demand for home‑based care services, and it is sensitive to government reimbursement rules and demographic trends.
Earnings Snapshot
Revenue: $251.9 million · Guidance included
Fiscal Q3 2026
Revenue
$251.9 million
+15.5% year over year
Net loss
$29.9 million
vs. $11.1 million net loss prior-year quarter
Adjusted EBITDA
$30.5 million
vs. $10.8 million prior-year quarter
Participants
≈8,050
vs. 7,530 in prior-year quarter
Guidance
Revised full-year fiscal 2026 guidance to total revenues of $950–$975 million and Adjusted EBITDA of $85–$90 million.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): May 5, 2026
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||||||
| (Address of principal executive offices) | (Zip Code) | |||||||
(844 ) 803-8745
(Registrant’s telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
Securities registered pursuant to Section 12(b) of the Act:
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
The (Nasdaq Global Select Market) | ||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company x
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. o
Item 2.02. Results of Operations and Financial Condition.
On May 5, 2026, InnovAge Holding Corp. issued a press release announcing financial results for the third fiscal quarter ended March 31, 2026, and related matters. A copy of this press release is furnished as Exhibit 99.1 hereto and is incorporated in this Item 2.02 by reference.
The information in this Item 2.02, including the exhibit attached hereto, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section. This information shall not be deemed to be incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference to such disclosure in this Form 8-K in such a filing.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits
| Exhibit | Description | |||||||
| 99.1 | Press Release of InnovAge Holding Corp., dated May 5, 2026 | |||||||
| 104 | Cover Page Interactive Data File (formatted as Inline XBRL) | |||||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| INNOVAGE HOLDING CORP. | ||||||||
Date: May 5, 2026 | By: | /s/ Benjamin C. Adams | ||||||
Name: | Benjamin C. Adams | |||||||
Title: | Chief Financial Officer | |||||||
Exhibit 99.1
INNOVAGE ANNOUNCES FINANCIAL RESULTS FOR THE
FISCAL THIRD QUARTER ENDED MARCH 31, 2025
DENVER, CO., May 5, 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 third quarter ended March 31, 2026.
We delivered a solid third quarter, reflecting continued improvement in operating execution and financial performance,” said Patrick Blair, Chief Executive Officer of InnovAge. “These results are being driven by stronger performance across our centers and the benefits of the investments we’ve made over the past several years to strengthen our platform. At the same time, we continue reinvesting in our clinical teams, technology, and quality capabilities to further improve participant outcomes and experience over the long term. Based on our performance year to date, we are raising our fiscal 2026 revenue and Adjusted EBITDA guidance.
Financial Results
| Three Months Ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| in thousands, except percentages and per share amounts | |||||||||||
| Total revenues | $ | 251,943 | $ | 218,142 | |||||||
| Loss Before Income Taxes | (29,773) | (11,061) | |||||||||
| Net Loss | (29,940) | (11,133) | |||||||||
| Net Loss margin | (11.9) | % | (5.1) | % | |||||||
| Net Loss Attributable to InnovAge Holding Corp. | (29,461) | (11,378) | |||||||||
| Net Loss per share - basic and diluted | $ | (0.22) | $ | (0.08) | |||||||
Center-level Contribution Margin(1) | $ | 61,020 | $ | 40,747 | |||||||
Adjusted EBITDA(1) | $ | 30,495 | $ | 10,792 | |||||||
Adjusted EBITDA margin(1) | 12.1 | % | 4.9 | % | |||||||
Fiscal Third Quarter 2026 Financial Performance
•Total revenues of $251.9 million, increased approximately 15.5% compared to $218.1 million in the third quarter of fiscal year 2025
•Loss Before Income Taxes of $29.8 million decreased approximately 169.2%, compared to a Loss Before Income Taxes of $11.1 million in the third quarter of fiscal year 2025
•Loss Before Income Taxes as a percent of revenue was 11.8%, an increase of 6.7 percentage points, compared to Loss Before Income Tax as a percent of revenue of 5.1% in the third quarter of fiscal year 2025
•Center-level Contribution Margin(1) of $61.0 million, increased 49.8% compared to $40.7 million in the third quarter of fiscal year 2025
•Center-level Contribution Margin(1) as a percent of revenue was 24.2%, an increase of 5.5 percentage points compared to 18.7% in the third quarter of fiscal year 2025
•Net loss of $29.9 million, compared to net loss of $11.1 million in the third quarter of fiscal year 2025
•Net loss margin of 11.9%, an increase of 6.8 percentage points, compared to a net loss margin of 5.1% in the third quarter of fiscal year 2025
•Net loss attributable to InnovAge Holding Corp. of $29.5 million, or loss per share of $0.22, compared to net loss attributable to InnovAge Holding Corp. of $11.4 million, or a loss per share of $0.08 in the third quarter of fiscal year 2025
•Adjusted EBITDA(1) of $30.5 million, an increase of $19.7 million, compared to Adjusted EBITDA of $10.8 million in the third quarter of fiscal year 2025
•Adjusted EBITDA(1) margin of 12.1%, an increase of 7.2 percentage points, compared to 4.9% in the third quarter of fiscal year 2025
•Census of approximately 8,050 participants compared to 7,530 participants in the third quarter of fiscal year 2025
•Ended the third quarter of fiscal year 2026 with $95.5 million in cash and cash equivalents plus $43.1 million in short-term investments, and $69.4 million in debt on the balance sheet, representing debt under the Company’s senior secured term loan, revolving credit facility and finance lease obligations
(1) Center-level Contribution Margin and Center-level Contribution Margin as a percentage 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” below.
Full Fiscal Year 2026 Financial Guidance
Based on information as of today, May 5, 2026, InnovAge is raising total revenues and Adjusted EBITDA guidance for the full year fiscal 2026. Census and Total Member Months remain unchanged.
Revised Guidance | |||||||||||
| Low | High | ||||||||||
| dollars in millions | |||||||||||
| Census | 7,900 | 8,100 | |||||||||
Total Member Months(1) | 92,900 | 95,700 | |||||||||
| Total revenues | $ | 950 | $ | 975 | |||||||
Adjusted EBITDA(2) | $ | 85 | $ | 90 | |||||||
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 as of period end multiplied by the number of months within a year 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 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 PM 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 our 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 March 31, 2026, InnovAge served approximately 8,050 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 may 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; mid-term and long-term financial goals; 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 tuck-in acquisitions, joint ventures and other strategic partnerships; the expected impact of government policies including rate pressures resulting from Medicaid budget cuts, and the macroeconomic environment; our ability to control costs, mitigate the effects of elevated expenses or reduced healthcare budgets, expand our payer capabilities, execute clinical value and operational value initiatives and strengthen enterprise functions; and the effects of any of the foregoing on our future results of operations or financial conditions.
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 of state and federal efforts to reduce healthcare spending, including recent legislation reducing the budget that funds Medicaid (iv) the impact on our business from macroeconomic related challenges, including labor shortages and labor competition; (v) inspections, reviews, audits and investigations under the federal and state government programs, including our ability to sufficiently cure any deficiencies identified; (vi) legal proceedings, enforcement actions and litigation and disputes; (vii) the risk that the cost of providing services will exceed our compensation, which we assume under our PACE contracts; (viii) the dependence of our revenues upon a limited number of government payors, including the risk of sudden loss of any of our government contracts; (ix) 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; (x) and our ability to comply with the continued listing requirements of Nasdaq.
Forward-looking statements are based only on information currently available to us and speaks only as of the date on which they are 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 not to 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 the most directly comparable GAAP measures. We believe that these non-GAAP measures are appropriate measures of operating performance because they allow 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.
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, impairments and loss on assets held for sale, and loss (gain) on sale of assets. Adjusted EBITDA margin is Adjusted EBITDA expressed as a percentage of our total revenue.
Schedule 1
InnovAge
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS, EXCEPT NUMBER OF SHARES) (UNAUDITED)
| March 31, 2026 | June 30, 2025 | ||||||||||
| Assets | |||||||||||
| Current Assets | |||||||||||
| Cash and cash equivalents | $ | 95,536 | $ | 64,129 | |||||||
| Short-term investments | 43,052 | 41,775 | |||||||||
| Restricted cash | 10 | 11 | |||||||||
| Accounts receivable | 28,584 | 36,373 | |||||||||
| Prepaid expenses | 32,045 | 24,472 | |||||||||
| Income tax receivable | 3,387 | 3,310 | |||||||||
| Assets held for sale | — | 6,038 | |||||||||
| Total current assets | 202,614 | 176,108 | |||||||||
| Noncurrent Assets | |||||||||||
| Property and equipment, net | 165,352 | 168,044 | |||||||||
| Operating lease assets | 23,667 | 26,901 | |||||||||
| Deposits and other | 10,332 | 9,875 | |||||||||
| Goodwill | 142,046 | 142,046 | |||||||||
| Other intangible assets, net | 3,383 | 3,877 | |||||||||
| Total noncurrent assets | 344,780 | 350,743 | |||||||||
| Total assets | $ | 547,394 | $ | 526,851 | |||||||
| Liabilities and Stockholders' Equity | |||||||||||
| Current Liabilities | |||||||||||
| Accounts payable and accrued expenses | $ | 105,590 | $ | 76,750 | |||||||
| Reported and estimated claims | 61,366 | 58,971 | |||||||||
| Due to Medicaid and Medicare | 16,320 | 14,382 | |||||||||
| Current portion of long-term debt | 2,536 | 2,250 | |||||||||
| Current portion of finance lease obligations | 5,154 | 5,234 | |||||||||
| Current portion of operating lease obligations | 4,647 | 4,682 | |||||||||
| Liabilities held for sale | — | 2,538 | |||||||||
| Deferred revenue | 275 | — | |||||||||
| Total current liabilities | 195,888 | 164,807 | |||||||||
| Noncurrent Liabilities | |||||||||||
| Deferred tax liability, net | 9,282 | 8,761 | |||||||||
| Finance lease obligations | 5,449 | 7,535 | |||||||||
| Operating lease obligations | 20,628 | 23,918 | |||||||||
| Other noncurrent liabilities | 1,821 | 1,458 | |||||||||
| Long-term debt, net of debt issuance costs | 55,432 | 57,464 | |||||||||
| Total liabilities | 288,500 | 263,943 | |||||||||
| Commitments and Contingencies | |||||||||||
| Redeemable Noncontrolling Interests | 26,115 | 25,010 | |||||||||
| Stockholders’ Equity | |||||||||||
Common stock, $0.001 par value; 500,000,000 authorized as of March 31, 2026 and June 30, 2025; 137,174,126 issued and 135,711,147 outstanding as of March 31, 2026 and 136,903,271 issued and 135,440,292 outstanding as of June 30, 2025 | 137 | 137 | |||||||||
Treasury stock at cost, 1,462,979 shares as of March 31, 2026 and June 30, 2025 | (7,500) | (7,500) | |||||||||
| Additional paid-in capital | 348,264 | 343,378 | |||||||||
| Retained deficit | (111,871) | (101,047) | |||||||||
| Total InnovAge Holding Corp. | 229,030 | 234,968 | |||||||||
| Noncontrolling interests | 3,749 | 2,930 | |||||||||
| Total stockholders’ equity | 232,779 | 237,898 | |||||||||
| Total liabilities and stockholders’ equity | $ | 547,394 | $ | 526,851 | |||||||
Schedule 2
InnovAge
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT NUMBER OF SHARES AND PER SHARE DATA) (UNAUDITED)
| Three Months Ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Revenues | |||||||||||
| Capitation revenue | $ | 251,502 | $ | 217,819 | |||||||
| Other service revenue | 441 | 323 | |||||||||
| Total revenues | 251,943 | 218,142 | |||||||||
| Expenses | |||||||||||
| External provider costs | 113,247 | 107,896 | |||||||||
| Cost of care, excluding depreciation and amortization | 77,676 | 69,499 | |||||||||
| Sales and marketing | 8,744 | 6,922 | |||||||||
| Corporate, general and administrative | 76,531 | 38,597 | |||||||||
| Depreciation and amortization | 4,824 | 5,386 | |||||||||
| Total expenses | 281,022 | 228,300 | |||||||||
| Operating Loss | (29,079) | (10,158) | |||||||||
| Other Income (Expense) | |||||||||||
| Interest expense, net | (988) | (1,160) | |||||||||
| Other income, net | 294 | 257 | |||||||||
| Total other expense | (694) | (903) | |||||||||
| Loss Before Income Taxes | (29,773) | (11,061) | |||||||||
| Provision for Income Taxes | 167 | 72 | |||||||||
| Net Loss | (29,940) | (11,133) | |||||||||
| Less: net income (loss) attributable to noncontrolling interests | (479) | 245 | |||||||||
| Net Loss Attributable to InnovAge Holding Corp. | $ | (29,461) | $ | (11,378) | |||||||
| Weighted-average number of common shares outstanding - basic | 135,704,645 | 135,200,314 | |||||||||
| Weighted-average number of common shares outstanding - diluted | 135,704,645 | 135,200,314 | |||||||||
| Net loss per share - basic | $ | (0.22) | $ | (0.08) | |||||||
| Net loss per share - diluted | $ | (0.22) | $ | (0.08) | |||||||
Schedule 3
InnovAge
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(IN THOUSANDS) (UNAUDITED)
| Nine Months Ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Operating Activities | |||||||||||
Net loss | $ | (10,466) | $ | (30,334) | |||||||
Adjustments to reconcile net loss to net cash provided by operating activities | |||||||||||
| (Gain) loss on disposal of assets | (478) | 260 | |||||||||
| Provision for uncollectible accounts | — | 524 | |||||||||
| Depreciation and amortization | 14,786 | 16,116 | |||||||||
| Operating lease rentals | 4,603 | 4,738 | |||||||||
| Impairments and loss on assets held for sale | 104 | 8,495 | |||||||||
| Amortization of deferred financing costs | 532 | 322 | |||||||||
| Stock-based compensation | 5,314 | 6,069 | |||||||||
| Deferred income taxes | 521 | 509 | |||||||||
| Other, net | 2,039 | 1,173 | |||||||||
| Changes in operating assets and liabilities | |||||||||||
| Accounts receivable | 7,789 | 3,183 | |||||||||
| Prepaid expenses and other current assets | (7,566) | (6,275) | |||||||||
| Income tax receivable | (77) | — | |||||||||
| Deposits and other | (2,053) | (4,471) | |||||||||
| Accounts payable and accrued expenses | 28,464 | 20,062 | |||||||||
| Reported and estimated claims | 2,395 | 6,278 | |||||||||
| Due to Medicaid and Medicare | 1,937 | 2,125 | |||||||||
| Operating lease liabilities | (4,694) | (4,909) | |||||||||
| Deferred revenue | 275 | — | |||||||||
Net cash provided by operating activities | 43,425 | 23,865 | |||||||||
| Investing Activities | |||||||||||
| Purchases of property and equipment | (10,043) | (6,442) | |||||||||
| Purchases of short-term investments | (1,193) | (1,610) | |||||||||
| Proceeds from sale of assets held for sale | 3,716 | — | |||||||||
| Proceeds from sale of short-term investments | — | 6,300 | |||||||||
| Acquisition of business | — | (4,774) | |||||||||
Net cash used in investing activities | (7,520) | (6,526) | |||||||||
| Financing Activities | |||||||||||
| Payments for finance lease obligations | (4,002) | (3,147) | |||||||||
| Principal payments on long-term debt | (61,280) | (2,848) | |||||||||
| Proceeds from the issuance of long-term debt | 60,082 | — | |||||||||
| Payments on financing costs | (1,989) | — | |||||||||
| Repurchase of equity securities | — | (7,024) | |||||||||
| Contribution from joint venture partner | 3,200 | — | |||||||||
| Taxes paid related to net settlements of stock-based compensation awards | (428) | (814) | |||||||||
| Net cash used in financing activities | (4,417) | (13,833) | |||||||||
Net change in cash, cash equivalents and restricted cash including cash of $0.08 million reclassified to assets held for sale for the nine months ended March 31, 2026 | 31,488 | 3,506 | |||||||||
| Less: change in cash and restricted cash reclassified to assets held for sale | (82) | — | |||||||||
INCREASE IN CASH, CASH EQUIVALENTS & RESTRICTED CASH | 31,406 | 3,506 | |||||||||
| CASH, CASH EQUIVALENTS & RESTRICTED CASH, BEGINNING OF PERIOD | 64,140 | 56,960 | |||||||||
| CASH, CASH EQUIVALENTS & RESTRICTED CASH, END OF PERIOD | $ | 95,546 | $ | 60,466 | |||||||
| Supplemental Cash Flows Information | |||||||||||
| Interest paid | $ | 3,251 | $ | 3,413 | |||||||
| Income taxes paid | $ | 622 | $ | 1 | |||||||
| Property and equipment included in accounts payable | $ | 1,158 | $ | 52 | |||||||
| Property and equipment purchased under finance leases | $ | 1,838 | $ | — | |||||||
Schedule 4
InnovAge
RECONCILIATION OF GAAP AND NON-GAAP MEASURES
(IN THOUSANDS) (UNAUDITED)
Adjusted EBITDA
| Three months ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
Net loss | $ | (29,940) | $ | (11,133) | |||||||
| Interest expense, net | 988 | 1,160 | |||||||||
Other investment income(a) | (294) | (503) | |||||||||
| Depreciation and amortization | 4,824 | 5,386 | |||||||||
| Provision for income tax | 167 | 72 | |||||||||
| Stock-based compensation | 1,790 | 2,035 | |||||||||
Litigation costs and settlement(b) | 51,859 | 13,277 | |||||||||
M&A diligence, transaction and integration(c) | — | 202 | |||||||||
Business optimization(d) | 1,101 | 152 | |||||||||
Impairments and loss on assets held for sale(e) | — | 144 | |||||||||
| Adjusted EBITDA | $ | 30,495 | $ | 10,792 | |||||||
| Net income (loss) margin | (11.9) | % | (5.1) | % | |||||||
| Adjusted EBITDA margin | 12.1 | % | 4.9 | % | |||||||
_______________________
(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 M&A diligence, transactions and integrations.
(d)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. For the three months ended March 31, 2025, this primarily includes costs related to other non-recurring projects aimed at reducing costs and improving efficiencies.
(e)For the three months ended March 31, 2025, reflects loss on sale of center equipment that was originally purchased for the previously planned de novo center in Louisville, Kentucky that the Company is no longer pursuing.
| Three months ended December 31, | |||||
| 2025 | |||||
| Net income | $ | 11,805 | |||
| Interest expense, net | 1,246 | ||||
Other investment income(a) | (483) | ||||
| Depreciation and amortization | 4,877 | ||||
| Provision for income tax | 651 | ||||
| Stock-based compensation | 1,216 | ||||
Litigation costs and settlement(b) | 1,279 | ||||
Business optimization(c) | 1,560 | ||||
| Adjusted EBITDA | $ | 22,151 | |||
| Net income margin | 4.9 | % | |||
| Adjusted EBITDA margin | 9.2 | % | |||
_______________________
(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 December 31, 2025, this consists of costs related to organizational restructure.
Center-Level Contribution Margin
| Three Months Ended March 31, 2026 | Three Months Ended March 31, 2025 | ||||||||||||||||||||||||||||||||||
| (In thousands) | PACE | All other(a) | Totals | PACE | All other(a) | Totals | |||||||||||||||||||||||||||||
| Capitation revenue | $ | 251,502 | $ | — | $ | 251,502 | $ | 217,819 | $ | — | $ | 217,819 | |||||||||||||||||||||||
| Other service revenue | 441 | — | 441 | 79 | 244 | 323 | |||||||||||||||||||||||||||||
| Total revenues | 251,943 | — | 251,943 | 217,898 | 244 | 218,142 | |||||||||||||||||||||||||||||
| External provider costs | 113,247 | — | 113,247 | 107,896 | — | 107,896 | |||||||||||||||||||||||||||||
| Cost of care, excluding depreciation and amortization | 77,676 | — | 77,676 | 69,372 | 127 | 69,499 | |||||||||||||||||||||||||||||
| Center-Level Contribution Margin | 61,020 | — | 61,020 | 40,630 | 117 | 40,747 | |||||||||||||||||||||||||||||
| Sales and marketing | 8,744 | 6,922 | |||||||||||||||||||||||||||||||||
| Corporate, general and administrative | 76,531 | 38,597 | |||||||||||||||||||||||||||||||||
| Depreciation and amortization | 4,824 | 5,386 | |||||||||||||||||||||||||||||||||
Operating loss | (29,079) | (10,158) | |||||||||||||||||||||||||||||||||
| Other expense | (694) | (903) | |||||||||||||||||||||||||||||||||
| Loss Before Income Taxes | $ | (29,773) | $ | (11,061) | |||||||||||||||||||||||||||||||
Loss Before Income Taxes as a percent of revenue | (11.8) | % | (5.1) | % | |||||||||||||||||||||||||||||||
| Center- Level Contribution Margin as a % of revenue | 24.2 | % | 18.7 | % | |||||||||||||||||||||||||||||||
| December 31, 2025 | |||||||||||||||||
| (In thousands) | PACE | All other(1) | Totals | ||||||||||||||
| Capitation revenue | $ | 239,620 | $ | — | $ | 239,620 | |||||||||||
| Other service revenue | 88 | — | 88 | ||||||||||||||
| Total revenues | 239,708 | — | 239,708 | ||||||||||||||
| External provider costs | 111,999 | — | 111,999 | ||||||||||||||
| Cost of care, excluding depreciation and amortization | 74,902 | (18) | 74,884 | ||||||||||||||
| Center-Level Contribution Margin | 52,807 | 18 | 52,825 | ||||||||||||||
| Sales and marketing | 8,078 | ||||||||||||||||
| Corporate, general and administrative | 26,608 | ||||||||||||||||
| Depreciation and amortization | 4,877 | ||||||||||||||||
| Operating income (loss) | 13,262 | ||||||||||||||||
| Other expense | (806) | ||||||||||||||||
Income Before Income Taxes | $ | 12,456 | |||||||||||||||
| Income Before Income Taxes as a % of revenue | 5.2 | % | |||||||||||||||
| Center- Level Contribution Margin as a % of revenue | 22.0 | % | |||||||||||||||
_________________________________
(a)Center-level Contribution Margin from a segment below the quantitative thresholds were primarily attributable to the Senior Housing operating segment of the Company. This segment never met any of the quantitative thresholds for determining reportable segments. As of September 11, 2025, the Company no longer operates Senior Housing as the remaining Senior Housing assets were sold.
FAQ
How did InnovAge (INNV) perform financially in fiscal Q3 2026?
InnovAge reported fiscal Q3 2026 revenue of $251.9 million, up about 15.5% year over year. However, the company posted a net loss of $29.9 million and a net loss margin of 11.9%, reflecting significant litigation and settlement-related expenses.
What happened to InnovAge’s profitability and Adjusted EBITDA in Q3 2026?
InnovAge’s GAAP net loss widened to $29.9 million, but Adjusted EBITDA improved to $30.5 million versus $10.8 million a year earlier. Adjusted EBITDA margin increased to 12.1% from 4.9%, highlighting stronger underlying operations despite large litigation-related charges.
Did InnovAge (INNV) change its fiscal 2026 guidance?
Yes. InnovAge raised its full fiscal 2026 outlook, now expecting total revenues of $950–$975 million and Adjusted EBITDA of $85–$90 million. Census and Total Member Months guidance remained unchanged according to the provided guidance table.
How many participants did InnovAge serve and what is Total Member Months?
As of March 31, 2026, InnovAge served approximately 8,050 participants across its centers. The company defines Total Member Months as participants multiplied by the months enrolled during the year, a metric used to more precisely track participant volume over time.
What is InnovAge’s liquidity and debt position as of March 31, 2026?
InnovAge ended the quarter with $95.5 million in cash and cash equivalents and $43.1 million in short-term investments. Total debt on the balance sheet was $69.4 million, including senior secured term loan, revolving credit facility, and finance lease obligations.
How significant were litigation costs in InnovAge’s Q3 2026 results?
Litigation costs and settlement charges totaled about $51.9 million in fiscal Q3 2026. These expenses were included as an adjustment in the company’s Adjusted EBITDA reconciliation and were a major factor behind the larger GAAP net loss reported for the quarter.