Innovage Holding Corp. · NASDAQ:INNV
Innovage — Q3 2025 Earnings Presentation
68 slides from Innovage's earnings presentation, May 6, 2025
Slide 1: 2024 Investor Day
d 2024 Investor Day February 2024
Slide 2: Disclaimer
Disclaimer Cautionary Note Regarding Forward-Looking Statements: Non-GAAP Financial Measures: These presentation materials contain forward-looking statements within the meaning of the This presentation includes certain non-GAAP financial measures, including center-level U.S. Private Securities Litig
Slide 3: Investor Day Agenda
Investor Day Agenda 1 Re-Introduction To InnovAge PATRICK BLAIR 3
Slide 4: Investment highlights
Investment highlights Focus on a largely untapped and growing market enabling frail With focus and seniors to remain independent by fully integrating Medicare and Medicaid services execution, we believe InnovAge can deliver attractive top-line Powerful unit economics and quality outcomes driven by c
Slide 5: InnovAge at a glance
InnovAge at a glance We are We Deliver We Leverage We Create A PACE organization which Comprehensive, A center-based model that Value for participants, keeps people living personalized, is the hub of care their families, independently as long as interdisciplinary care for coordination and the govern
Slide 6: InnovAge delivers value to all stakeholders
InnovAge delivers value to all stakeholders Participants Government Providers Families Partners Ability to live Savings to Medicare Increased job satisfaction Reduced caregiver independently in their and Medicaid – more time with patients burden homes and communities Capitated payment aligns Concier
Slide 7: Our model of care drives superior health outcomes and lower healthcare costs
Our model of care drives superior health outcomes and lower healthcare costs 90 % Independent Living 47 Patient Satisfaction 12 % Lower Costs Participants remain Net Promoter Score2 Lower cost to Medicaid3 in the community1 73 % High Engagement 5.5 % Appropriate Utilization 10.3 Risk Prevention Redu
Slide 8: InnovAge is a PACE market leader in a large, growing senior market
InnovAge is a PACE market leader in a large, growing senior market Addressable Market PACE Enrollment (000s)6 CAGR: 20%+ Annual U.S. 200 Healthcare Spend ~$4.3tn1 Government Healthcare Spend $1.5tn+2 CAGR: 9% Duals Spend ~$500bn3 70 PACE TAM Current PACE 35 $235bn+4 enrollment: ~72k5 (~3% penetratio
Slide 9: Market landscape for PACE is evolving
Market landscape for PACE is evolving Historical Barriers Market Evolution Regulatory structure only allowed not-for-profit Emergence of for-profit entrants with the capital entities (changed in 2015) to execute on multi-faceted growth strategy Largely comprised of single-center, single-market not-f
Slide 10: PACE is positioned towards the end of the healthcare continuum
PACE is positioned towards the end of the healthcare continuum Younger, healthier, Becomes Medicare Becomes Medicaid Becomes eligible Becomes nursing Becomes PACE individual eligible due to age eligible due to for Medicaid home home eligible due participant to with Commercial (65+) or disability inc
Slide 11: The PACE model offers the most comprehensive healthcare benefits
The PACE model offers the most comprehensive healthcare benefits Original Medicare Medicaid Long-Term PACE Medicare Advantage Services & Supports Physician Care Hospital Care Pharmacy Supplemental Benefits (e.g., Vision, Dental) Home Health (Skilled) Transportation1 Home Care (Unskilled) Adult Day S
Slide 12: InnovAge competes effectively against other models
InnovAge competes effectively against other models and provides access to a large addressable market Participant health insurance prior to joining InnovAge Why We Win Prior Medicare Coverage Individuals coming 1 from an MA plan Medicare Advantage Original Medicare No Medicare1 (MA) (FFS) More expans
Slide 13: We have built a best-in-class PACE management team
In the last 2 years, we have built a best-in-class PACE management team Prior Work Experience Patrick Blair President & CEO* 2 years at InnovAge; 20+ years in industry Ben Adams Chris Bent Richard Feifer, Nicole D'Amato Dustin Lee Cara Babachicos Rob Borella Matt Huray Olivia Patton Chief Financial
Slide 14: We are supported by a world-class Board of Directors
We are supported by a world-class Board of Directors James Carlson Richard Zoretic Marilyn Tavenner Patty Fontneau Jeb Bush Teresa Sparks Ted Kennedy, Jr. Andy Cavanna Tom Scully Chairman Board Member Board Member Board Member Board Member Board Member Board Member Board Member Board Member Joined b
Slide 15: Internal transformation has created a stronger foundation
Internal transformation has created a stronger foundation from which to grow responsibly and profitably 2022-2023 2024+ 2024+ Transformation Scalable Growth & Margin Recapture • Standardized operations, quality, and compliance • Enrollment playbook to drive consistent growth with processes long-term
Slide 16: Investor Day Agenda: Operating Platform
Investor Day Agenda 2 Operating Platform DR. RICH FEIFER 16
Slide 17: InnovAge serves a more complex population than traditional value-based primary care providers
InnovAge serves a more complex population than traditional value-based primary care providers Differentiators Traditional Value-Based Higher acuity Primary Care Provider1 More chronic conditions Average Age: 65–70 years 76 years2 Higher touch model required to manage care effectively VS 1+ 6+ >10 12
Slide 18: InnovAge operates at the intersection of provider and payor
InnovAge is unique in that it operates at the intersection of being a provider and a payor (“payvider”) Competencies Provider • Personalized plans of care • Integrated physical, behavioral, social needs • High levels of family engagement • Physical center as care coordination hub • More time spent w
Slide 19: Centers are purpose built to effectively manage our population
Centers are purpose built to effectively manage our population Centers Serve as Care Coordination Hub Average Specifications • Primary medical care • Nursing care • Dental services • Personal care ~ 28K Average square ~ 16.3K Participant capacity in existing • Mental health services feet per center1
Slide 20: We have invested in our people, processes, and tools
We have invested in our people, processes, and tools to deliver a better experience for our participants, employees, and government partners Hired 350+ center-level staff (net) over last 2 years including Impact 66 new center leaders Investments made in the Created Triad Leadership Model to drive op
Slide 21: We use a "Five Pillar" performance framework
We use a “Five Pillar” performance framework to drive accountability for results at all levels of the organization People Service Quality Growth Financials Pillar Overview We have a robust Highly-engaged In turn, increased job Motivated employees Great people deliver talent engine to employees with
Slide 22: We use a Triad Leadership Model
We use a Triad Leadership Model to deliver strong operational and clinical performance Triad Leadership Model Triad Model Benefits Enhanced communication People Leadership model encourages collaboration through shared Five Pillar Goals Service Medical Nursing Director Quality Director Better and fas
Slide 23: The Triad Leadership Model is in place at each level
The Triad Leadership Model is in place at each level of the organization and supported by robust enterprise solutions Purpose-Built National Triad Structure Leadership at center level driven by Triad model which West Region Triad East Region Triad is replicated at regional and national levels • Cent
Slide 24: We run our business on a single Electronic Health System (Epic)
We run our business on a single Electronic Health System (Epic) Why it Matters • Built first PACE-specific EMR Single source of truth partnering with Epic for care coordination • Best Practice guidelines built into Clinical Analytics clinical workflow Physician Orders & Documentation • Real time doc
Slide 25: VIDEO PLACEHOLDER
VIDEO PLACEHOLDER
Slide 26: Investor Day Agenda: Clinical Model and Results
Investor Day Agenda 3 Clinical Model and Results DR. RICH FEIFER 26
Slide 27: We serve a frail, highly complex population
We serve a frail, highly complex population Who We Serve Participant Demographics4 Age (Years) Average Risk Adjustment Factor Average Participant Statistics 14% 2.42 1.08 1 Medicare Average2 > 10 Number of 12 2 Number of + Activities of daily living 21% 85+ 55-64 Chronic Conditions3 Medications4 req
Slide 28: We employ a more comprehensive care team than traditional primary care providers
We employ a more comprehensive care team than traditional primary care providers Traditional PACE model of Primary Care1 IDT care benefits Primary Care Physician ✓ ✓ Registered Nurse ✓ ✓ • Interdisciplinary care teams (“IDTs”) serve as core care team (11 personnel) and Master’s level Social Worker X
Slide 29: Key roles of the interdisciplinary care team
Key roles of the interdisciplinary care team Select Roles Role in IDT1 Primary Care Provider Manages all aspects of medical care Medical Registered Nurse Monitors for evolving care needs, coordinates care, and supports chronic condition management Home Care Coordinator Ensures in-home nursing and pe
Slide 30: The InnovAge clinical care model is unique and comprehensive
The InnovAge clinical InnovAge Differentiators VB: reformat care model is unique • Integrated approach • 24/7 Care and comprehensive and execution (e.g. after-hours nursing) • Epic tech stack • Monthly self-audit (“CMS-inside” approach) 100 Patient Engagement1 % PCP • Drive all care • 360-degree vie
Slide 31: We've standardized each phase of the participant journey
We’ve standardized each phase of the participant journey to ensure continuity of care Develop Care Plan Schedule Care Enrollment White glove enrollment model from initial Coordinate assessment and eligibility to enrollment Transport Care Planning Customized care plan based on Assessment Enrollment u
Slide 32: We rigorously track, measure, and act on clinical KPIs
We rigorously track, measure, and act on clinical KPIs in every center, every month Core Clinical Metrics SPOTLIGHT Managing Key Risks IP Utilization ER Utilization Target 5.4% Target 7.0% Falls 10.3 falls per 100-member Quality Composite Score1 months vs. NPA average of 12.3 SNF Utilization Target
Slide 33: We are building a portfolio of payor capabilities
We are building a portfolio of “payor capabilities” to improve quality, clinical standardization, and reduce medical cost trends Provider Claims Payment Resource Risk Payment Network Integrity Management Accuracy Management Overview • Create and manage high • Ensuring appropriate • Choosing optimal
Slide 34: Investor Day Agenda: Growth Strategy
Investor Day Agenda 4 Growth Strategy MATT HURAY & ROB BORELLA 34
Slide 35: We are pursuing a multi-pronged growth strategy
We are pursuing a multi-pronged growth strategy to drive attractive long-term growth M&A Augment organic initiatives through strategic M&A New Center Extend PACE presence into new markets and new geographies via de novos Existing Center Drive census growth in existing centers through enrollment acti
Slide 36: Priority #1 remains responsible growth in existing markets
Priority #1 remains responsible growth in existing markets Near-Term Focus We believe our meaningful investments over past 2+ 700 2,800 years will enable us to grow 1,700 1,800 3,850 overall census and revenue at 5,300 39% 73% 1,100 a faster rate than cost growth 32% 2,050 480 54% 650 74% InnovAge O
Slide 37: Significant embedded revenue opportunity within existing footprint
Significant embedded revenue opportunity within existing footprint Census capacity within existing footprint Significant organic upside opportunity ~14,625 ~2.2x 22 90% ~$108K / x x centers3 utilization PMPY4 6,780 = ~$845M+ potential 42% utilization 90% utilization2 incremental Revenue 1 Current Fu
Slide 38: Seniors choose InnovAge for the comprehensive benefits
Seniors choose InnovAge for the comprehensive benefits, unique experience, and sense of community we create at each center Participant Testimonials 24/7 access to care Our mother loved it here and we loved the care she was given. We knew when we got older, we wanted to be InnovAge participants, too,
Slide 39: Participant acquisition is supported by a robust set of capabilities
Participant acquisition is supported by a robust set of capabilities Enterprise Community Transformation Marketing Outreach • Upgraded ~50% of sales Internal and external agency Resources deployed across the partners design on and offline community to educate and build reps with significant campaign
Slide 40: We source participants from a variety of referral channels
We source participants from a variety of referral channels Gross Enrollments by Referral Channel1 MULTI-MODAL MARKETING STRATEGY Targeted direct-to- 6% Other consumer marketing 8% Independent Increased focus on digital channels Living 25% Digital / Advertising 11% Assisted Living Outreach to communi
Slide 41: PACE enrollment involves both a physical and financial eligibility assessment
PACE enrollment involves both a physical and financial eligibility assessment ONGOING ~1 WEEK <1 WEEK 1-8 WEEKS Lead Generation Lead Development Intake Assessment Process PROCESS Prospect referred Conducts initial Prospect is guided Physical Assessment to confirm to InnovAge assessment to through mo
Slide 42: We've made our sales process more efficient and productive
We’ve made our sales process more efficient and productive Sales Qualified Lead Growth Gross Enrollment Growth +42% +19% 6,000 Continuous 5,323 2,400 2,995 1,689 1,332 improvement in strength and velocity FY22 FY23 FY24E FY22 FY23 FY24E of enrollment funnel Participant Acquisition Cost1 Sales Cycle2
Slide 43: Our new healthy independence campaign launched in late 2023
Our new healthy independence campaign launched in late 2023 Since launching campaign in November 2023, lead growth is up 10% 43 while cost per lead is down 28%
Slide 44: TV commercial
TV commercial https://vimeo.com/882302001/b85a4680df 44
Slide 45: Track record of growth from de novo expansion and acquisitions
Track record of growth from de novo expansion and acquisitions CO NM PA FL CA VA • Leader in PACE • Highly competitive • Large number of • Flagship market • Friendly regulatory adoption and support • Only PACE program market for long-term PACE eligibles • Strong market share environment • Largest nu
Slide 46: We utilize a very disciplined approach to evaluate new markets
We utilize a very disciplined approach to evaluate new markets Assessment of PACE supportiveness overall, for expansion, and especially in PACE Political areas of unmet need Climate Each driver underpins evaluation of unit Existing Pro Forma economics and ROI for the center DUALS Model Understanding
Slide 47: De novo maturity curve
De novo maturity curve De Novo Growth Model (Tampa) Selected Highlights Center Level Contribution Margin ($M) ~$12.5M $20 Upfront Capex Margin growth continues to year 5 $15 Estimated Time to ~18 months CLCM Breakeven $10 Adj. EBITDA margin breakeven ~24–36 months Census Capacity ~1,300 $5 (at Matur
Slide 48: Driving Adoption of PACE in California
CASE STUDY Driving Adoption of PACE in California Market History What’s Driving PACE Adoption in California? 2014: InnovAge opens first center in San Bernardino Proven ability to save Government support county costs given demonstrated track record 2016-2019: PACE Modernization Act changes CA’s rate-
Slide 49: Dedicated team and standardized approach supports franchise model
Dedicated team and standardized approach supports ‘franchise model’ for new center openings Opening ~3-6 months ~1-3 months ~12+ months ~3-6 months ~3 months ~12 months Application Site Selection Construction / State Hiring and Post Opening Process (in parallel with Build Out Readiness Training Supp
Slide 50: PACE landscape remains highly fragmented for future consolidation
PACE landscape remains highly fragmented for future consolidation WA 3 ME MT ND 0 0 1 VT OR MN 0 NH 0 2 ID SD 0 WI 0 NY 9 MA 8 WY 0 1 MI CT 0 RI 1 0 14 PA IA NV UT NE 1 2 IL IN OH 1 19 NJ 6 DE 2 156 PACE organizations nationally 0 0 CA 0 CO 5 WV MD 1 24 5 KS MO 0 VA 8 3 1 KY 3 NC 374 centers OK TN 1
Slide 51: Investor Day Agenda: Financial Update
Investor Day Agenda 5 Financial Update BEN ADAMS 51
Slide 52: Key financial takeaways
Key financial takeaways Significant number of operational enhancements have already been Why It Matters identified / implemented and are beginning to have an impact • Investments made Clinical value, and other margin improvement initiatives are on track across the enterprise are to realize targeted
Slide 53: Continued momentum post sanction release creates foundation for repeatable top line growth
Continued momentum post sanction release creates foundation for repeatable top line growth Census at Quarter End Total Revenue (at Quarter End) +7.5% +13.0% $188.9 6,780 $182.5 6,580 $176.9 6,460 $172.5 6,400 6,310 $167.1 2QFY23 3QFY23 4QFY23 1QFY24 2QFY24 2QFY23 3QFY23 4QFY23 1QFY24 2QFY24 53
Slide 54: Adjusted EBITDA is building momentum
Adjusted EBITDA is building momentum Key Factors Driving Margin Improvement TTM Adjusted EBITDA and De Novo Losses ($M)1 Responsible census growth Adjusted EBITDA • Higher marginal profitability on untapped center capacity De Novo Losses $14.5 • Aligns participant mix with rate structure Executing o
Slide 55: Our full-risk model enables us to capture a portion of the value we create
Our full-risk model enables us to capture a portion of the value we create Care provided by non-InnovAge Illustrative InnovAge Economics 1 providers • Inpatient care, housing (e.g., assisted 1 Risk-Adjusted living), outpatient care and pharmacy PMPM Payment for External Participant Care Provider Cos
Slide 56: Building blocks for intermediate-term Adjusted EBITDA margin target
Building blocks for intermediate-term Adjusted EBITDA margin target External Provider Costs (~2/3 of medical costs) • Generally increase with census, but we expect increases in PMPM costs Adjusted to be offset partially through CVIs and other initiatives EBITDA Margin Internal Cost of Care (~1/3 of
Slide 57: Unused capacity offers significant embedded CLCM opportunity
Unused capacity offers significant embedded CLCM opportunity Cohort Analysis of CLCM Margin by Center1 Key Observations CLCM % of Revenue (Bubbles Denote CLCM $) 35% Significant proportion of centers at/or above target levels 30% 27% 26% 25% 23% Improvement in census drives 25% 20% 2Q FY24 17.8% CLC
Slide 58: InnovAge receives three monthly payments per participant from government partners
InnovAge receives three monthly payments per participant from government partners ~$ 3k ~$ 1k ~$ 5k ~$ 9k PMPM + PMPM + PMPM = PMPM to manage total Medicare Medicare Medicaid cost of care for Part C Part D each participant1 58 1. Calculated based off total revenue for the year ended June 30, 2023.
Slide 59: Uniqueness of the PACE rate setting process
Uniqueness of the PACE rate setting process Medicaid Rate Development Medicare Rate Development Covered services and rate setting Utilizes CMS-HCC1 v22 to calculate risk score • CMS has indicated that PACE would continue to use v22 in CY25 process differ by state • Medicare Advantage currently utili
Slide 60: Balance sheet and capital deployment
Balance sheet and capital deployment Liquidity1 Capital Deployment Priorities 1 Invest in our business Continued investment in our PACE platform Cash Short Term Revolving Total and Cash + Investments + Credit = Expand via de novos Equivalents Facility 2 Growth into new markets $ 54.1M $ 44.7M $ 96.9
Slide 61: Re-confirmed fiscal 2024 guidance
Re-confirmed fiscal 2024 guidance Census Member Months1 Total Revenue Adjusted EBITDA2 De Novo Losses 6.8K – 79K - $725M - $12M - $10M - 7.4K 83K $775M $18M $12M 61 1. We define Member Months as the total number of participants as of period end multiplied by the number of months within a year in whi
Slide 62: Investment highlights
Investment highlights Focus on a largely untapped and growing market enabling frail With focus and seniors to remain independent by fully integrating Medicare and Medicaid services execution, we believe InnovAge can deliver attractive top-line Powerful unit economics and quality outcomes driven by c
Slide 63: Appendix
Appendix
Slide 64: Non-GAAP Adjusted EBITDA ($ in thousands)
Non-GAAP Adjusted EBITDA ($ in thousands) For the 3 months ended March 31, 2022 June 30, 2022 September 30, 2022 December 31, 2022 Net income (loss) $ (3,158) $ (13,532) $ (13,699) $ (10,547) Interest expense, net 709 596 603 223 Depreciation and amortization 3,850 3,489 3,433 3,662 Provision for in
Slide 65: Non-GAAP Adjusted EBITDA ($ in thousands)
Non-GAAP Adjusted EBITDA ($ in thousands) For the 3 months ended March 31, 2023 June 30, 2023 September 30, 2023 December 31, 2023 Net income (loss) $ (7,310) $ (11,995) $ (10,962) $ (3,821) Interest expense, net 405 291 661 935 Depreciation and amortization 3,992 4,332 4,269 4,290 Provision for inc
Slide 66: Non-GAAP Adjusted EBITDA ($ in thousands)
Non-GAAP Adjusted EBITDA ($ in thousands) For the 6 months ended December 31, 2023 Net loss $ (14,783) Interest expense, net 1,596 Depreciation and amortization 8,559 Provision for income tax 319 Stock-based compensation 3,589 Adjusted EBITDA Litigation costs and settlement1 1,905 M&A diligence, tra
Slide 67: Non-GAAP Trailing 12-Month Adjusted EBITDA ($ in thousands)
Non-GAAP Trailing 12-Month Adjusted EBITDA ($ in thousands) For the 12 months ended December 31, 2022 March 31, 2023 June 30, 2023 September 30, 2023 December 31, 2023 Net income (loss) (40,936) (45,088) (43,552) (40,815) (34,089) Interest expense, net 2,131 1,827 1,522 1,580 2,292 Depreciation and
Slide 68: Non-GAAP Center-Level Contribution Margin ($ in thousands)
Non-GAAP Center-Level Contribution Margin ($ in thousands) For the 6 months ended December 31, 2022 For the 6 months ended December 31, 2023 PACE All other(1) Totals PACE All other(1) Totals Capitation revenue $338,071 $ — $338,071 $370,734 $- $370,734 Other service revenue 176 427 603 153 495 648 T