InnovAge (NASDAQ:INNV) Announces Quarterly Earnings Results

InnovAge (NASDAQ:INNV) announced its quarterly earnings results on Tuesday. The company reported $0.06 earnings per share for the quarter, missing analysts’ consensus estimates of $0.07 by ($0.01), Zacks reports. The firm had revenue of $261.95 million during the quarter, compared to analysts’ expectations of $238.33 million. InnovAge had a negative net margin of 0.26% and a negative return on equity of 1.02%.

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 Performance

Shares of INNV stock opened at $11.03 on Thursday. InnovAge has a one year low of $3.93 and a one year 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 company has a 50 day moving average price of $11.18 and a 200 day moving average price of $9.34. The firm has a market capitalization of $1.50 billion, a price-to-earnings ratio of -551.50 and a beta of 0.40.

More InnovAge News

Here are the key news stories impacting InnovAge this week:

• Positive Sentiment: Management forecast fiscal 2027 revenue of approximately $1.05 billion to $1.085 billion and adjusted EBITDA of $105 million to $115 million. The company also expects census growth of roughly 5% to 7.5%, signaling continued expansion in its senior-care PACE business. InnovAge fiscal 2027 outlook
• Positive Sentiment: InnovAge reported a significant year-over-year improvement in fiscal 2026 profitability. The company described the results as a foundation for its next phase of growth, supporting the bullish market reaction. InnovAge fiscal 2026 earnings transcript
• Positive Sentiment: KeyCorp raised its price target on INNV to $14 from $13 and maintained an “overweight” rating, indicating increased confidence in the company’s growth and earnings trajectory.
• Neutral Sentiment: Fourth-quarter revenue reached $261.95 million, well above the $238.33 million analyst consensus, demonstrating strong top-line performance. InnovAge quarterly results
• Negative Sentiment: Fourth-quarter EPS was $0.06, below estimates ranging from $0.07 to $0.09. InnovAge also continued to report a negative net margin and negative return on equity, leaving execution and profitability risks for investors to monitor. InnovAge misses fourth-quarter earnings estimates

Analyst Ratings Changes

Several brokerages recently issued reports on INNV. KeyCorp lifted their price objective on InnovAge from $13.00 to $14.00 and gave the stock an “overweight” rating in a research report on Wednesday. Weiss Ratings restated a “sell (d-)” rating on shares of InnovAge in a report on Thursday, August 13th. Finally, Wall Street Zen lowered shares of InnovAge from a “buy” rating to a “hold” rating in a research report on Sunday, May 17th. One investment analyst has rated the stock with a Buy rating, one has issued a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat.com, the company has an average rating of “Reduce” and a consensus price target of $10.50.

Institutional Trading of InnovAge

Several institutional investors have recently made changes to their positions in INNV. T. Rowe Price Investment Management Inc. boosted its holdings in 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 valued at $32,014,000 after acquiring an additional 577,558 shares during the last quarter. Kent Lake PR LLC grew 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 purchasing an additional 197,036 shares during the period. Vanguard Group Inc. increased its position in InnovAge by 0.4% during the 3rd quarter. Vanguard Group Inc. now owns 1,124,321 shares of the company’s stock worth $5,801,000 after purchasing an additional 4,239 shares in the last quarter. Geode Capital Management LLC lifted its position in InnovAge by 3.0% during the second 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 in the last quarter. Finally, Welch Capital Partners LLC NY grew its stake in InnovAge by 22.6% during the second quarter. Welch Capital Partners LLC NY now owns 448,775 shares of the company’s stock worth $1,656,000 after buying an additional 82,868 shares during the period. 12.26% of the stock is owned by hedge funds and other institutional investors.

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.