InnovAge Holding Corp. (INNV) Market Cap
InnovAge Holding Corp. has a market capitalization of $1.05B.
Financials based on reported quarter end 2025-12-31
Price: $7.74
▲ 0.09 (1.18%)
Market Cap: 1.05B
NASDAQ · time unavailable
CEO: Patrick Blair
Sector: Healthcare
Industry: Medical - Care Facilities
IPO Date: 2021-03-04
Website: https://www.innovage.com
InnovAge Holding Corp. (INNV) - Company Information
Market Cap: 1.05B · Sector: Healthcare
InnovAge Holding Corp. manages and provides a range of medical and ancillary services for seniors in need of care and support to live independently in their homes and communities. It manages its business through Program of All-Inclusive Care for the Elderly (PACE) approach. The company offers in-home care services consisting of skilled, unskilled, and personal care; in-center services, such as primary care, physical therapy, occupational therapy, speech therapy, dental services, mental health and psychiatric services, meals, and activities; transportation to the PACE center and third-party medical appointments; and care management. It serves approximately 6,850 PACE participants in the United States; and operates 18 PACE centers in Colorado, California, New Mexico, Pennsylvania, and Virginia. The company was formerly known as TCO Group Holdings, Inc. and changed its name to InnovAge Holding Corp. in January 2021. InnovAge Holding Corp. was founded in 2007 and is headquartered in Denver, Colorado.
Analyst Sentiment
Based on 8 ratings
Analyst 1Y Forecast: $0.00
Average target (based on 1 sources)
Consensus Price Target
Low
$5
Median
$8
High
$8
Average
$7
Downside: -12.1%
Price & Moving Averages
Related Companies in Healthcare
Fundamentals Overview
📊 AI Financial Analysis
Powered by StockMarketInfo"INNV reports revenue of $239.7M, with a net income of $10.6M and earnings per share of $0.0783. The company's total assets are $527.5M, while total liabilities stand at $238.7M, reflecting a solid equity base of $288.8M. Despite a negative free cash flow of $2.884M, INNV has demonstrated strong market performance with a 152.24% increase over the past year. This impressive price appreciation indicates a strong investor sentiment and interest in the stock. Although the company currently isn't declaring dividends, growth in revenue and a healthy balance sheet position provide a strong foundation for future expansion. With a target consensus price of $6.8 and the current trading price of $7.87, there remains potential for continued value creation as the company looks to improve its cash flow and operational efficiencies."
Revenue Growth
Solid revenue of $239.7M showing consistent growth.
Profitability
Positive net income, but lower margins indicate room for improvement.
Cash Flow Quality
Negative free cash flow raises concerns about cash management.
Leverage & Balance Sheet
Strong equity position relative to liabilities.
Shareholder Returns
Exceptional price appreciation of 152.24% reflects strong investor returns.
Analyst Sentiment & Valuation
Positive sentiment with a target consensus price indicating potential upside.
Disclaimer:This analysis is AI-generated for informational purposes only. Accuracy is not guaranteed and this does not constitute financial advice.
Management’s tone is confident and achievement-focused: Q2 delivered $239.7M revenue, $22.2M adjusted EBITDA (9.2% margin), and a ~$430 bps lift in central contribution margin to 22%. They also raised FY2026 guidance (member months 92,900–95,700; revenue $925M–$950M; adj. EBITDA $70M–$75M) and emphasized their first-time attainment of an 8–9% adj. EBITDA margin target. However, Q&A showed the “how” is still constrained by real-world hurdles. The upside to census/revenue integrity depends on Medicaid redetermination files and state resource capacity, and the company is seeing slightly higher disenrollments than desired. Margin trajectory was framed cautiously: Q3 is expected to be softer due to open-enrollment enrollment timing and a notably severe flu season, plus ongoing Medicaid work “still a work in progress.” Finally, v28 impact is assumed in guidance, but management acknowledged phased-in risk model mechanics and reserve behavior that can shift monthly.
Growth Catalysts
- Reinstated Medicaid-covered participants that had previously lost Medicaid coverage (drove stronger-than-expected census and member-months in 1H)
- Improved revenue integrity via Medicaid eligibility/redeterminations workflow, reducing reserves/write-offs and reinstating coverage
- Medical cost management in inpatient and skilled nursing utilization through proactive care coordination and length-of-stay management
- More efficient center operations via standardized staffing models/scheduling/throughput and better utilization of Epic
- Structural SG&A simplification and accountability improvements (spans/layers reduction)
Business Development
- Medicaid state partners (varied state processing/resource constraints for redeterminations were highlighted as a key external dependency)
- Government regulators (emphasis on being a reliable partner; no specific named agency beyond CMS in the prepared remarks)
Financial Highlights
- Q2 revenue: $239.7M (+14.7% YoY vs $209.0M); +1.5% vs 2026 base due to member months
- Central level contribution margin: $52.8M vs $37.1M in 2025; margin rate 22.0% vs 17.7% (+~430 bps)
- Adjusted EBITDA: $22.2M vs $5.9M in 2025; adjusted EBITDA margin 9.2% vs 2.8% in 2025 (+~640 bps) and vs 7.5% in 2026
- Net income: $11.8M vs net loss of $13.5M in 2025; EPS: 8 cents
- Census: ~8,010 participants as of 12/31/2025 (+7.1% vs 2025; +1.5% sequential)
- Member months: 23,960 in Q2 (+~7.9% vs 2025; +~2% vs 2026)
- External provider cost: $112.0M (+3.8% YoY); cost-per-participant reduced mainly due to in-house pharmacy transition and lower permanent nursing facility utilization; partially offset by higher assisted living/inpatient unit costs
- FY2026 guidance raised: member months 92,900–95,700; total revenue $925M–$950M; adjusted EBITDA $70M–$75M (ending census unchanged at 7,900–8,100)
- De novo center losses guidance: $11.5M–$13.5M for FY2026 (Q2 de novo losses $4.7M, mainly Tampa & Orlando)
Capital Funding
- Ended Q2 with $83.2M cash and cash equivalents plus $42.8M short-term investments
- Total debt: $69.9M
- Positive operating cash flow in quarter: $21.4M
- Capital expenditures: $2.4M
Strategy & Ops
- Medicaid redeterminations: invested in people/workflows, strengthened data/reporting, and upgraded technology; built a patient accounting system in Salesforce to tighten revenue reserve methodology
- Center efficiency: improved consistency in staffing models, scheduling, and throughput; standardized best practices; better leveraging Epic; emphasized local execution
- Pharmacy: stabilized pharmacy insourcing and linked cost-per-participant improvements to decreased pharmacy expense from in-house transition
- Operational hurdle: de novo center ramp continues to drive losses (Q2 de novo losses $4.7M)
Market Outlook
- CMS Medicare Advantage rate notice (for CY2027) referenced; PACE exposure is partially structurally buffered: only ~45% of per-member-month premium is Medicare
- v28 risk model phase-in: PACE phase-in accelerated from 5-year to 3-year; management expects guidance already captured the impact over the remaining two quarters (per reforecast commentary)
- Seasonality/margin expectation: Q3 described as a soft quarter due to slower enrollment gains in early open-enrollment months and flu season pressure
Risks & Headwinds
- Medicaid redeterminations/enrollment dependency on state processing: management cautioned success is partly internal and partly dependent on state workflows/resource challenges
- Enrollment churn: management cited disenrollments as probably running slightly higher than desired; guided voluntary disenrollment cited at ~6% annualized
- Revenue reserve variability: management stated patterns adjust month-by-month and they were not ready to quantify how far ahead reserves are beyond “tracking to expectations”
- Q3 seasonal headwinds: flu season described as “particularly bad,” with vaccine “only partially effective,” implying additional pressure on margins in Q3
- De novo center losses: ongoing ramp losses (Q2 $4.7M; FY2026 $11.5M–$13.5M)
Sentiment: MIXED
Note: This summary was synthesized by AI from the INNV Q2 2026 earnings transcript. Financial data is complex; please verify all metrics against official SEC filings before making investment decisions.