InnovAge (NASDAQ:INNV) Issues Earnings Results

InnovAge (NASDAQ:INNV) issued its earnings results on Tuesday. The company reported $0.06 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.07 by ($0.01), Zacks reports. The company had revenue of $261.95 million for the quarter, compared to analyst estimates of $238.33 million. InnovAge had a negative net margin of 1.22% and a negative return on equity of 4.73%.

Here are the key takeaways from InnovAge’s conference call:

• Fiscal 2026 profitability improved sharply: adjusted EBITDA rose approximately 175% to $94.6 million, while revenue increased 15.9% to $989.7 million. Center-level contribution margin expanded to 23.0% from 18.0%.
• InnovAge guided for continued growth in fiscal 2027, targeting ending census of 8,625–8,850 participants, revenue of $1.05–$1.085 billion, and adjusted EBITDA of $105–$115 million, implying further margin expansion despite a less favorable rate environment.
• Management is shifting toward an “InnovAge 3.0” growth phase, prioritizing greater utilization of existing center capacity while evaluating disciplined M&A, joint ventures, de novos, and partnerships. Federal interest in expanding PACE and potentially applying its model to Medicare-only seniors could provide longer-term opportunities, although discussions remain preliminary.
• Fiscal 2027 earnings will depend increasingly on execution rather than rate increases, including enrollment and retention, utilization management, center-level efficiency, and technology investments. California and Colorado, which represent about 70% of census, have not finalized their Medicaid rates, creating some outlook uncertainty.
• The company ended fiscal 2026 with $97.9 million in cash, $43.4 million in short-term investments, and $63.3 million in debt. Management also expects AI-enabled clinical decision support, medication optimization, scheduling, and transportation tools to improve care and operating efficiency, though measurable financial benefits have not yet been quantified.

InnovAge Stock Down 2.1%

INNV opened at $10.52 on Wednesday. The business has a 50 day moving average price of $11.20 and a 200 day moving average price of $9.32. InnovAge has a twelve month low of $3.82 and a twelve month high of $12.64. The company has a debt-to-equity ratio of 0.26, a quick ratio of 1.03 and a current ratio of 1.03. The firm has a market cap of $1.43 billion, a P/E ratio of -116.89 and a beta of 0.40.

Hedge Funds Weigh In On InnovAge

Institutional investors have recently modified their holdings of the company. T. Rowe Price Investment Management Inc. lifted its stake in shares of InnovAge by 10.3% in the fourth quarter. T. Rowe Price Investment Management Inc. now owns 6,168,330 shares of the company’s stock worth $32,014,000 after buying an additional 577,558 shares during the last quarter. Kent Lake PR LLC boosted its holdings in shares of InnovAge by 13.1% during the 2nd quarter. Kent Lake PR LLC now owns 1,697,036 shares of the company’s stock worth $6,262,000 after buying an additional 197,036 shares during the period. Vanguard Group Inc. grew its stake in InnovAge by 0.4% in the 3rd quarter. Vanguard Group Inc. now owns 1,124,321 shares of the company’s stock valued at $5,801,000 after buying an additional 4,239 shares during the last quarter. Geode Capital Management LLC grew its stake in InnovAge by 3.0% in the 2nd quarter. Geode Capital Management LLC now owns 554,880 shares of the company’s stock valued at $2,048,000 after buying an additional 16,205 shares during the last quarter. Finally, Welch Capital Partners LLC NY grew its stake in InnovAge by 22.6% in the 2nd quarter. Welch Capital Partners LLC NY now owns 448,775 shares of the company’s stock valued at $1,656,000 after buying an additional 82,868 shares during the last quarter. Institutional investors own 12.26% of the company’s stock.

Analyst Upgrades and Downgrades

Several analysts recently issued reports on INNV shares. KeyCorp upgraded InnovAge from a “sector weight” rating to an “overweight” rating and set a $13.00 price objective for the company in a report on Friday, August 21st. Wall Street Zen cut InnovAge from a “buy” rating to a “hold” rating in a research report on Sunday, May 17th. Finally, Weiss Ratings restated a “sell (d-)” rating on shares of InnovAge in a research note on Thursday, August 13th. One analyst has rated the stock with a Buy rating, one has issued a Hold rating and two have given a Sell rating to the stock. According to MarketBeat.com, InnovAge has a consensus rating of “Reduce” and a consensus price target of $10.00.

About InnovAge

InnovAge Holdings, Inc (NASDAQ:INNV) is a healthcare services company that specializes in caring for seniors through the Program of All-Inclusive Care for the Elderly (PACE). Designed for individuals who are eligible for both Medicare and Medicaid, the PACE model integrates medical care, social services and long-term care—delivered primarily in participants’ homes and community-based centers. InnovAge’s approach centers on interdisciplinary care teams that coordinate everything from primary and specialty medical services to nutritional counseling and recreational activities.

The company’s core offerings include comprehensive in-home assessments, physician and nursing services, physical and occupational therapy, prescription medication management, and transportation to medical appointments.