InnovAge Holding (INNV) AI Stock Analysis

• Market Cap: $714.81M
• Dividend Yield: N/A
• Average Volume (3M): 61.88K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.03
• Revenue Growth: 11.76%
• EPS Growth: -42.52%
• Country: US
• Employees: 2,350
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Care Facilities
• EPS (TTM): -0.01
• Shares Outstanding: 135,637,970
• 10 Day Avg. Volume: 81,011
• 30 Day Avg. Volume: 61,884
• PEG Ratio: -0.44
• Price to Book (P/B): 2.13
• Price to Sales (P/S): 0.59
• P/FCF Ratio: 18.78
• Enterprise Value/Market Cap: 0.73
• Enterprise Value/Revenue: 0.61
• Enterprise Value/Gross Profit: 0.89
• Enterprise Value/Ebitda: 155.10
• 1Y Price Target: $5.25
• Price Target Upside: 8.92% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 55 Neutral
• Price Target: $5.00 ▲(3.73% Upside)

InnovAge Holding's overall stock score reflects a company with potential but facing significant challenges. The most significant factor is the mixed financial performance, with some positive trends in revenue and cash flow but ongoing profitability issues. Technical analysis shows some positive momentum, while valuation remains a concern due to negative earnings. The earnings call provided a positive outlook with strategic initiatives that could drive future growth.

Positive Factors

Revenue Growth

The consistent revenue growth indicates strong market demand and effective service delivery, supporting long-term business expansion and stability.

Improved Cash Flow

Improved cash flow enhances financial flexibility, enabling InnovAge to invest in growth opportunities and manage debt more effectively.

Strategic Partnerships

Strategic partnerships expand service reach and enhance competitive positioning, fostering long-term growth and market penetration.

Negative Factors

Profitability Challenges

Ongoing net losses highlight persistent profitability issues, which could hinder long-term financial health and shareholder value.

Medicaid Redeterminations

Medicaid redeterminations pose a structural challenge, potentially impacting participant growth and revenue stability in the near term.

V28 Payment Model Transition

The transition to the V28 payment model introduces uncertainty and potential revenue disruptions, affecting financial planning and stability.

InnovAge Holding Business Overview & Revenue Model

Company Description

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.

How the Company Makes Money

InnovAge generates revenue primarily through capitated payment models under Medicare and Medicaid, where it receives a fixed monthly payment per enrolled participant to provide all necessary medical services. This model incentivizes the company to deliver efficient, coordinated care to its members, as they benefit financially by effectively managing healthcare costs. Key revenue streams include payments from government programs, member premiums, and additional reimbursements for services provided outside the standard package. Moreover, InnovAge has established partnerships with various healthcare providers and community organizations to expand its service offerings and enhance care delivery, which further contributes to its revenue growth.

InnovAge Holding Financial Statement Overview

Summary

InnovAge Holding shows mixed financial performance. While there is slight revenue growth and improved cash flow, profitability remains a concern with negative margins. The balance sheet shows reduced leverage, but negative returns on equity highlight ongoing challenges.

Income Statement

InnovAge Holding shows a mixed performance in its income statement. The company has experienced a slight revenue growth rate of 2.65% in the most recent year, indicating some positive momentum. However, profitability remains a significant concern, with negative net profit and EBIT margins, reflecting ongoing operational challenges. The gross profit margin has improved significantly from the previous year, suggesting better cost management, but overall profitability needs substantial improvement.

Balance Sheet

The balance sheet of InnovAge Holding presents a moderate financial position. The debt-to-equity ratio has improved to 0.18, indicating a reduction in leverage, which is a positive sign. However, the return on equity remains negative, highlighting the company's struggle to generate returns for shareholders. The equity ratio is stable, suggesting a balanced asset structure, but the company needs to address its profitability issues to enhance shareholder value.

Cash Flow

Cash flow analysis reveals some positive trends for InnovAge Holding. The free cash flow has grown significantly by 66.36%, and the operating cash flow to net income ratio is positive, indicating better cash generation relative to net income. However, the free cash flow to net income ratio suggests that while cash flow is improving, it is not yet sufficient to cover net losses fully. Continued focus on cash flow management is essential for financial stability.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	853.70M	853.70M	763.86M	688.09M	698.64M	637.80M
Gross Profit	584.79M	584.79M	132.06M	101.29M	135.37M	174.08M
EBITDA	3.36M	3.36M	1.15M	-33.85M	9.21M	-5.89M
Net Income	-30.31M	-30.31M	-21.34M	-40.67M	-7.96M	-44.74M
Balance Sheet
Total Assets	526.85M	526.85M	547.66M	567.36M	555.60M	531.75M
Cash, Cash Equivalents and Short-Term Investments	105.90M	105.90M	102.78M	173.46M	184.43M	201.47M
Total Debt	101.08M	101.08M	113.03M	108.83M	84.81M	82.63M
Total Liabilities	263.94M	263.94M	247.85M	252.56M	201.85M	173.79M
Stockholders Equity	237.90M	234.97M	269.26M	296.30M	332.36M	335.15M
Cash Flow
Free Cash Flow	26.60M	26.60M	-44.81M	-3.12M	-10.94M	-27.09M
Operating Cash Flow	32.87M	32.87M	-36.90M	20.24M	27.30M	-7.55M
Investing Cash Flow	-5.55M	-5.55M	-26.37M	-69.52M	-40.24M	-19.54M
Financing Cash Flow	-19.08M	-19.08M	-7.03M	-7.90M	-6.32M	116.22M

InnovAge Holding Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 4.82
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For INNV, the sentiment is Neutral. The current price of 4.82 is below the 20-day moving average (MA) of 5.31, above the 50-day MA of 4.74, and above the 200-day MA of 3.84, indicating a neutral trend. The MACD of 0.06 indicates Positive momentum. The RSI at 44.17 is Neutral, neither overbought nor oversold. The STOCH value of 16.97 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for INNV.

InnovAge Holding Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PNTG	―	$872.34M	32.28	11.44%	―	30.58%	24.86%
BKD	―	$2.20B	-8.78	-108.91%	―	3.99%	-14.74%
INNV	―	$714.81M	-23.54	-12.02%	―	11.76%	-42.52%
AMN	―	$743.87M	-2.50	-40.13%	―	-14.33%	-398.68%
Sector *	―	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
CCRN	―	$396.40M	-46.74	-1.96%	―	-24.30%	-210.27%
SNDA	―	$480.55M	―	-53.33%	―	31.37%	34.94%

InnovAge Holding Corporate Events

InnovAge Reports Strong Growth Amid Challenges

InnovAge Holding Corp. recently held its fourth-quarter earnings call, which was marked by a positive sentiment despite some challenges. The company reported strong revenue growth and significant improvements in contribution margins and EBITDA. Although a net loss was reported, the strategic initiatives and partnerships discussed during the call suggest promising future prospects.

InnovAge Reports Fiscal 2025 Financial Results

InnovAge Holding Corp., a leader in providing comprehensive healthcare programs for frail seniors through the Program of All-inclusive Care for the Elderly (PACE), has reported its financial results for the fiscal year ending June 30, 2025. The company, which operates across 20 centers in six states, focuses on enabling older adults to age independently in their homes.

InnovAge Holding Amends Credit Agreement for Stability

On August 8, 2025, InnovAge Holding Corp.’s subsidiary, Total Community Options, Inc., amended its existing credit agreement to refinance its term loan and revolving credit facility, securing a $50.7 million term loan and a $100 million revolving credit facility. This amendment extends the maturity date of both financial instruments to August 8, 2028, potentially enhancing the company’s financial stability and operational flexibility.

The most recent analyst rating on (INNV) stock is a Hold with a $6.00 price target. To see the full list of analyst forecasts on InnovAge Holding stock, see the INNV Stock Forecast page.

Innovage Holding Corp. Faces Credibility Risks Due to Reporting Ambiguities

Innovage Holding Corp. faces a business risk associated with the ambiguity and redundancy in their reporting, as indicated by the repetitive mention of ‘Part II Other Information’ in their risk factor description. This lack of clarity could lead to misinterpretations by stakeholders and investors, potentially affecting the company’s credibility and decision-making processes. Ensuring transparent and concise communication in their reports is crucial for maintaining trust and avoiding unnecessary complications. Addressing this issue promptly could mitigate potential negative impacts on their business operations and market perception.