InnovAge (NASDAQ:INNV) Issues Earnings Results

Key Points

• InnovAge missed Q3 estimates with EPS of ($0.22) versus consensus $0.06, reporting a net loss of $29.9M despite revenue of ~$251.9M, adjusted EBITDA of $30.5M and roughly 8,050 participants.
• Management raised full‑year fiscal 2026 guidance to $950M–$975M in revenue and $85M–$90M in adjusted EBITDA and said it will reinvest cash flow into clinical teams, technology/AI pilots and M&A to drive growth.
• Company flagged downside risks for FY2027—expecting Medicare rates +1.5%–2% and potentially smaller Medicaid increases—and corporate G&A surged ~98% year‑over‑year (largely litigation‑related), which widened the quarterly loss.

InnovAge (NASDAQ:INNV - Get Free Report) announced its earnings results on Tuesday. The company reported ($0.22) EPS for the quarter, missing analysts' consensus estimates of $0.06 by ($0.28), Zacks reports. InnovAge had a net margin of 0.71% and a return on equity of 2.60%.

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

• Management raised full‑year fiscal 2026 guidance to $950M–$975M in revenue and $85M–$90M in adjusted EBITDA, citing year‑to‑date operating trends.
• Q3 results showed continued operational momentum with ~8,050 participants, total revenue of ~$251.9M, center‑level contribution margin of $61M (24.2% of revenue) and adjusted EBITDA of $30.5M.
• Management flagged potential FY2027 rate pressure: they expect Medicare rates to rise ~1.5%–2% and noted early indications that Medicaid rate increases from states may be lower than prior years.
• Corporate G&A jumped ~98% year‑over‑year driven primarily by increased litigation liability, contributing to a wider net loss of $29.9M for the quarter.
• Company is reinvesting improved cash flow into clinical teams, technology and AI pilots (care‑planning, scheduling, transportation) and pursuing M&A/partnerships and program expansions to drive longer‑term growth.

InnovAge Stock Down 2.6%

Shares of NASDAQ INNV traded down $0.21 during midday trading on Tuesday, hitting $7.96. The stock had a trading volume of 274,475 shares, compared to its average volume of 216,425. The business's 50 day moving average is $8.35 and its 200-day moving average is $6.67. InnovAge has a 52 week low of $2.84 and a 52 week high of $10.69. The company has a quick ratio of 1.26, a current ratio of 1.26 and a debt-to-equity ratio of 0.24. The company has a market cap of $1.08 billion, a P/E ratio of 159.23 and a beta of 0.49.

Wall Street Analyst Weigh In

A number of research analysts recently issued reports on the stock. JPMorgan Chase & Co. lifted their price target on shares of InnovAge from $5.00 to $7.00 and gave the company an "underweight" rating in a research report on Monday, February 23rd. Zacks Research lowered shares of InnovAge from a "strong-buy" rating to a "hold" rating in a report on Friday, April 24th. Finally, Weiss Ratings upgraded InnovAge from a "sell (d-)" rating to a "hold (c-)" rating in a research note on Thursday, February 5th. Two investment analysts have rated the stock with a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the company presently has an average rating of "Reduce" and an average target price of $7.00.

Hedge Funds Weigh In On InnovAge

A number of hedge funds have recently added to or reduced their stakes in the company. Deutsche Bank AG boosted its stake in InnovAge by 15.1% during the 4th quarter. Deutsche Bank AG now owns 12,775 shares of the company's stock valued at $66,000 after purchasing an additional 1,679 shares during the last quarter. Barclays PLC raised its stake in shares of InnovAge by 10.6% in the fourth quarter. Barclays PLC now owns 31,591 shares of the company's stock worth $164,000 after purchasing an additional 3,040 shares during the last quarter. AQR Capital Management LLC lifted its holdings in shares of InnovAge by 13.9% during the fourth quarter. AQR Capital Management LLC now owns 25,695 shares of the company's stock valued at $133,000 after purchasing an additional 3,135 shares in the last quarter. JPMorgan Chase & Co. boosted its position in shares of InnovAge by 26.0% during the third quarter. JPMorgan Chase & Co. now owns 15,993 shares of the company's stock valued at $83,000 after buying an additional 3,305 shares during the last quarter. Finally, Vanguard Group Inc. boosted its position in shares of InnovAge by 0.4% during the third 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. 12.26% of the stock is currently owned by hedge funds and other institutional investors.

InnovAge Company Profile

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.

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