InnovAge Holding (INNV) AI Stock Analysis

• Market Cap: $656.49M
• Dividend Yield: N/A
• Average Volume (3M): 61.88K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.02
• Revenue Growth: 12.48%
• EPS Growth: -9.28%
• Country: US
• Employees: 2,350
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Care Facilities
• EPS (TTM): 0.06
• 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: 0.79
• Enterprise Value/Revenue: 0.60
• Enterprise Value/Gross Profit: 3.28
• Enterprise Value/Ebitda: -24.94
• 1Y Price Target: $5.25
• Price Target Upside: 3.96% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 57 Neutral
• Price Target: $6.00 ▲(18.81% Upside)

InnovAge Holding's overall stock score is driven by strong earnings call performance and positive technical indicators. However, financial performance challenges, particularly in profitability and valuation concerns, weigh down the score. The company's conservative debt position and improvements in cash flow are positive, but operational efficiency and profitability need further enhancement.

Positive Factors

Revenue Growth

The 15% revenue growth indicates strong demand for InnovAge's services, suggesting effective market penetration and potential for continued expansion in the healthcare sector.

Cash Flow Improvement

Significant improvement in cash flow reflects enhanced operational efficiency and financial health, providing a solid foundation for future investments and stability.

Participant Growth

Record participant growth demonstrates increasing adoption of InnovAge's PACE model, reinforcing its competitive position and long-term growth prospects in senior care.

Negative Factors

Profitability Challenges

Persistent profitability issues highlight operational inefficiencies, which could hinder long-term financial performance and necessitate strategic cost management improvements.

Increased Operating Costs

Rising operating costs may pressure margins and profitability, requiring InnovAge to enhance cost controls to maintain financial health and competitive pricing.

Leadership Transitions

Leadership changes can disrupt strategic continuity and operational stability, potentially impacting InnovAge's ability to execute its long-term growth strategy effectively.

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 modest revenue growth and significant improvement in cash flow, but profitability and return on equity remain challenges. The company maintains a conservative debt position, which is positive. Continued focus on improving operational efficiency and profitability is crucial for future stability.

Income Statement

InnovAge Holding shows modest revenue growth with a TTM increase of 1.53%, but profitability remains a challenge. The company has negative net profit margins and EBIT margins, indicating ongoing operational inefficiencies. Gross profit margin has decreased from previous periods, reflecting potential cost management issues.

Balance Sheet

The balance sheet reveals a manageable debt-to-equity ratio of 0.17 in the TTM, suggesting a conservative leverage approach. However, the negative return on equity indicates that the company is not generating sufficient returns on shareholder investments, which is a concern for long-term sustainability.

Cash Flow

Cash flow analysis shows a significant improvement in free cash flow growth at 137.72% in the TTM, indicating better cash management. The operating cash flow to net income ratio is positive, suggesting that the company is generating cash from its operations despite net losses. However, the free cash flow to net income ratio indicates that cash flow is still heavily reliant on external factors.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	863.42M	853.70M	763.86M	688.09M	698.64M	637.80M
Gross Profit	159.31M	584.79M	132.06M	101.29M	135.37M	161.79M
EBITDA	-20.92M	3.36M	1.15M	-33.85M	9.21M	-5.89M
Net Income	-47.35M	-30.31M	-21.34M	-40.67M	-6.52M	-43.99M
Balance Sheet
Total Assets	510.23M	557.23M	579.84M	547.66M	562.87M	538.61M
Cash, Cash Equivalents and Short-Term Investments	109.43M	105.92M	102.79M	102.78M	184.45M	203.70M
Total Debt	98.08M	101.08M	113.03M	113.03M	84.81M	82.63M
Total Liabilities	234.47M	294.32M	280.03M	247.85M	209.13M	180.65M
Stockholders Equity	244.98M	234.97M	269.26M	269.26M	332.36M	334.56M
Cash Flow
Free Cash Flow	54.28M	26.60M	-44.81M	-44.81M	-10.94M	-25.09M
Operating Cash Flow	62.76M	32.87M	-36.90M	-36.90M	27.30M	-7.55M
Investing Cash Flow	-7.47M	-5.55M	-26.37M	-26.37M	-40.24M	-19.54M
Financing Cash Flow	-12.42M	-19.08M	-7.03M	-7.03M	-6.32M	116.22M

InnovAge Holding Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 5.05
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 5.05 is below the 20-day moving average (MA) of 5.13, below the 50-day MA of 5.15, and above the 200-day MA of 4.01, indicating a neutral trend. The MACD of 0.05 indicates Negative momentum. The RSI at 48.90 is Neutral, neither overbought nor oversold. The STOCH value of 45.85 is Neutral, 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	76 Outperform	$927.11M	35.43	10.87%	―	29.89%	10.33%
SNDA	58 Neutral	$600.64M	―	-44.33%	―	34.99%	-68.73%
INNV	57 Neutral	$656.49M	-21.62	-6.86%	―	12.48%	-9.28%
BKD	57 Neutral	$2.63B	―	-214.33%	―	3.93%	-42.22%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
AMN	50 Neutral	$651.11M	―	-35.90%	―	-11.42%	-617.31%
CCRN	46 Neutral	$394.76M	-46.54	-3.76%	―	-22.14%	-787.87%

InnovAge Holding Corporate Events

InnovAge Reports Strong Q1 2026 Earnings Amid Challenges

InnovAge Holding Corp. recently held its earnings call, revealing a generally positive sentiment despite some ongoing challenges. The company reported robust financial performance, highlighted by significant revenue and EBITDA growth, a record census, and positive net income. However, the discussion also acknowledged the hurdles posed by increased costs and leadership transitions.

InnovAge Reports Strong Start to Fiscal 2026

InnovAge Holding Corp. is a leading provider of comprehensive healthcare programs for frail, predominantly dual-eligible seniors through the Program of All-Inclusive Care for the Elderly (PACE), operating across 20 centers in six states.

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.