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Innovage Holding Corp. (INNV)
:INNV
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InnovAge Holding (INNV) AI Stock Analysis

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INNV

InnovAge Holding

(NASDAQ:INNV)

Rating:47Neutral
Price Target:
$3.50
▼(-2.51% Downside)
InnovAge Holding's overall stock score is primarily impacted by its financial performance challenges, including profitability issues and liquidity risks. Technical analysis indicates a bearish trend, while the valuation reflects concerns over its current losses. The earnings call provided some optimism with strong revenue growth and operational improvements, but increased losses and expenses remain significant concerns. The absence of notable corporate events further centers the score on these elements.

InnovAge Holding (INNV) vs. SPDR S&P 500 ETF (SPY)

InnovAge Holding Business Overview & Revenue Model

Company DescriptionInnovAge Holding Corp (INNV) is a healthcare company that focuses on providing comprehensive care services to the elderly population. It operates primarily in the Program of All-Inclusive Care for the Elderly (PACE) sector, offering integrated managed care solutions that encompass medical, social, and behavioral health services. The company's core services are designed to enable seniors to age independently in their homes and communities while receiving coordinated healthcare services tailored to their needs.
How the Company Makes MoneyInnovAge Holding generates revenue primarily through capitation payments from government programs such as Medicare and Medicaid. Under the PACE model, InnovAge receives a fixed monthly payment per enrolled participant, which covers all necessary medical and supportive services. This model allows the company to manage care delivery efficiently while focusing on cost-effective outcomes. Key revenue streams come from the comprehensive management of healthcare services, including primary care, specialist visits, hospitalization, and long-term care. The company's financial performance is influenced by enrollment growth, effective cost management, and favorable regulatory environments. InnovAge's partnerships with healthcare providers and community organizations also play a crucial role in extending its service reach and optimizing care delivery.

InnovAge Holding Earnings Call Summary

Earnings Call Date:May 06, 2025
(Q3-2025)
|
% Change Since: 25.96%|
Next Earnings Date:Sep 16, 2025
Earnings Call Sentiment Neutral
InnovAge reported strong revenue growth and improved adjusted EBITDA, along with successful operational transformation efforts. However, the company also faced increased net losses and corporate expenses, alongside challenges with new center operations.
Q3-2025 Updates
Positive Updates
Strong Revenue Growth
InnovAge reported revenue of $218.1 million, representing a 13% increase year-over-year.
Improved Adjusted EBITDA
Adjusted EBITDA was $10.8 million, a significant improvement from $3 million in the previous year, with an adjusted EBITDA margin of 4.9%.
Census Growth
Census grew to approximately 7,530 participants, marking a 10% annual increase.
Operational Transformation
InnovAge has shifted from operational stabilization to enterprise transformation, with a focus on operational excellence and greater efficiency.
Pharmacy Initiative Success
The acquisition of a pharmacy in Colorado was completed, with the transition of pharmacy distribution and management successfully migrated.
Cost Management
Despite seasonal illness pressures, external provider costs were maintained, and PMPM spending declined from $4,857 in Q2 to $4,786 in Q3.
Negative Updates
Net Loss
InnovAge reported a net loss of $11.1 million compared to a net loss of $6.2 million in the same quarter of fiscal year 2024.
Increased Corporate Expenses
Corporate, general, and administrative expenses increased by 40.1% due to a $10.7 million accrual for an anticipated stockholder lawsuit settlement.
Cost of Care Increase
Cost of care increased by 17.6% compared to the previous year, driven by higher salaries, wages, and benefits.
De Novo Center Losses
De novo losses were $3.5 million, primarily related to centers in Bakersfield, Crenshaw, Tampa, and Orlando, indicating ongoing challenges with new centers.
Company Guidance
During the InnovAge Third Quarter 2025 Earnings Conference Call, the company reaffirmed its fiscal year 2025 guidance, projecting an ending census between 7,300 and 7,750 participants, with member months ranging from 86,000 to 89,000. The total revenue is expected to be between $815 million and $865 million, while adjusted EBITDA is projected to be in the range of $24 million to $31 million. De novo losses are anticipated to be between $18 million and $20 million for fiscal 2025. The third quarter results showed a revenue of $218.1 million, a 13% year-over-year increase, and an adjusted EBITDA of $10.8 million, reflecting a 4.9% margin. The company experienced a 10% annual growth in census, reaching approximately 7,530 participants. Center-level contribution was $40.7 million, with an 18.7% margin, improving by approximately 110 basis points year-over-year. Despite challenges in the healthcare environment, InnovAge reported disciplined cost management and effective medical expense control, maintaining strong cost discipline amidst seasonal illness pressures.

InnovAge Holding Financial Statement Overview

Summary
InnovAge Holding shows moderate revenue growth but struggles with profitability and cost management. The balance sheet is moderately stable, with a manageable debt-to-equity ratio but negative returns on equity. Cash flow has improved, yet historical volatility suggests liquidity challenges.
Income Statement
42
Neutral
InnovAge Holding has experienced moderate revenue growth over recent years, with a TTM increase in total revenue by approximately 8.87% compared to the previous year. However, the company faces challenges with profitability, as indicated by negative net income and EBIT margins. The gross profit margin is decreasing, indicating potential cost management issues.
Balance Sheet
50
Neutral
The balance sheet demonstrates moderate stability with a debt-to-equity ratio of 0.42 in the TTM period, which is manageable. However, the equity ratio of 45.77% suggests the company relies significantly on equity financing. Return on equity remains negative due to continuing net losses.
Cash Flow
55
Neutral
InnovAge Holding shows improvement in its cash flow position with positive free cash flow in the TTM period. The operating cash flow to net income ratio indicates better cash generation relative to reported net losses. Nonetheless, historical volatility in free cash flow suggests potential liquidity challenges.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue763.86M688.09M698.64M637.80M567.19M
Gross Profit132.06M101.29M135.37M174.08M141.30M
EBITDA1.15M-33.85M9.21M-5.89M61.54M
Net Income-21.34M-40.67M-7.96M-44.74M26.28M
Balance Sheet
Total Assets547.66M567.36M555.60M531.75M409.63M
Cash, Cash Equivalents and Short-Term Investments102.78M173.46M184.43M201.47M112.90M
Total Debt113.03M108.83M84.81M82.63M217.96M
Total Liabilities247.85M252.56M201.85M173.79M301.88M
Stockholders Equity269.26M296.30M332.36M335.15M101.02M
Cash Flow
Free Cash Flow-44.81M-3.12M-10.94M-27.09M31.98M
Operating Cash Flow-36.90M20.24M27.30M-7.55M43.83M
Investing Cash Flow-26.37M-69.52M-40.24M-19.54M-11.69M
Financing Cash Flow-7.03M-7.90M-6.32M116.22M21.23M

InnovAge Holding Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price3.59
Price Trends
50DMA
3.92
Negative
100DMA
3.56
Positive
200DMA
3.97
Negative
Market Momentum
MACD
-0.15
Positive
RSI
44.76
Neutral
STOCH
15.81
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 3.59 is below the 20-day moving average (MA) of 3.91, below the 50-day MA of 3.92, and below the 200-day MA of 3.97, indicating a bearish trend. The MACD of -0.15 indicates Positive momentum. The RSI at 44.76 is Neutral, neither overbought nor oversold. The STOCH value of 15.81 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for INNV.

InnovAge Holding Risk Analysis

InnovAge Holding disclosed 55 risk factors in its most recent earnings report. InnovAge Holding reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

InnovAge Holding Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
$9.11B28.5117.57%0.16%17.71%41.83%
56
Neutral
$1.85B-91.17%3.88%-34.30%
52
Neutral
$420.94M-4.00%-29.16%-140.16%
51
Neutral
$7.39B0.42-62.86%2.37%15.61%-1.93%
51
Neutral
$456.73M-70.23%26.13%37.38%
50
Neutral
$348.90M39.18%0.80%-95.01%
47
Neutral
$465.79M-12.03%12.19%-1.59%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
INNV
InnovAge Holding
3.45
-2.53
-42.31%
BKD
Brookdale Senior Living
7.88
0.56
7.65%
SNDA
Sonida Senior Living
24.21
-4.68
-16.20%
CYH
Community Health
2.49
-2.45
-49.60%
CCRN
Cross Country Healthcare
12.84
-2.83
-18.06%
ENSG
The Ensign Group
157.92
17.36
12.35%

InnovAge Holding Corporate Events

Executive/Board ChangesBusiness Operations and Strategy
InnovAge Holding Strengthens Leadership with Key Appointments
Positive
Nov 4, 2024

InnovAge Holding Corp. has appointed Michael Scarbrough as its new President and Chief Operating Officer, effective November 4, 2024, succeeding Christine Bent, who will now serve as a Senior Advisor. Scarbrough, with over 30 years of experience in healthcare, will focus on enhancing InnovAge’s strategic priorities, leveraging his extensive operational expertise. Additionally, Maria Lozzano has been promoted to President of Pharmacy Services, further strengthening the leadership team as InnovAge continues to evolve its healthcare service offerings for seniors.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 01, 2025