DENVER, May 05, 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 | ||||
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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:
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 | ||||||||
March 31, | June 30, | |||||||
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 | ||||||||
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 | ||||||||
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 | ||||||||
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 | % | ||||
_______________________ | ||||||||
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 | % | ||
_______________________ | ||||
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 | % | ||||||||||
_______________________ | ||||||||||||