Innovage Holding Corp. (INNV)
NASDAQ:INNV
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InnovAge Holding
(NASDAQ:INNV)
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Rating:63Neutral
Price Target:
$8.00
▲(44.14% Upside)
Action:ReiteratedDate:03/17/26
The score is driven primarily by improving operating momentum and raised guidance from the latest earnings call, supported by positive recent cash generation and manageable leverage. Offsetting these positives are still-weak underlying profitability in the financial statement scores and mixed near-term technical momentum, while valuation looks only moderate with no dividend support.
Positive Factors
Improved cash generation
Material improvement in operating and free cash flow provides durable funding for operations and organic investments. Stronger cash conversion reduces reliance on external financing to fund de novo center openings and working capital, increasing resilience versus prior volatile cash flow periods.
Negative Factors
Still-weak trailing profitability and negative ROE
Despite a profitable quarter, TTM results show persistent net losses and negative ROE, indicating the company has not yet consistently converted revenue growth into shareholder returns. Prolonged negative returns undermine long-term value creation without sustained margin improvement.
Read all positive and negative factors
Positive Factors
Negative Factors
Improved cash generation
Material improvement in operating and free cash flow provides durable funding for operations and organic investments. Stronger cash conversion reduces reliance on external financing to fund de novo center openings and working capital, increasing resilience versus prior volatile cash flow periods.
Read all positive factors
InnovAge Holding (INNV) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.10B
Dividend YieldN/A
Average Volume (3M)330.78K
Price to Earnings (P/E)16.6
Beta (1Y)0.78
Revenue Growth12.48%
EPS Growth-9.28%
CountryUS
Employees2,350
SectorHealthcare
Sector Strength45
IndustryMedical - Care Facilities
Share Statistics
EPS (TTM)0.08
Shares Outstanding135,699,480
10 Day Avg. Volume255,860
30 Day Avg. Volume330,780
Financial Highlights & Ratios
PEG Ratio-0.44
Price to Book (P/B)2.13
Price to Sales (P/S)0.59
P/FCF Ratio18.78
Enterprise Value/Market Cap1.03
Enterprise Value/Revenue1.25
Enterprise Value/Gross Profit6.32
Enterprise Value/Ebitda43.61
Forecast
1Y Price Target
$7.00Price Target Upside26.13% Upside
Rating ConsensusModerate Sell
Number of Analyst Covering3
EPS Forecast (FY)0.25
Revenue Forecast (FY)$938.71M
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 t...
How the Company Makes Money
InnovAge primarily makes money by operating PACE programs under contracts with government payors. For each enrolled participant, PACE organizations generally receive a fixed per-member per-month payment (capitated reimbursement) from Medicare and ...
InnovAge Holding Key Performance Indicators (KPIs)
InnovAge Holding Earnings Call Summary
Earnings Call Date:Feb 03, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:May 12, 2026
Earnings Call Sentiment Positive
The call conveyed meaningful operational and financial progress: strong revenue growth, a return to profitability, achievement of the company’s adjusted EBITDA margin target (9.2%), raised full-year guidance, improved cash generation, and tangible improvements in revenue integrity and clinical cost management. Offsetting risks include ongoing de novo center losses, rising certain care and restructuring costs, retention/disenrollment headwinds, and policy/rate uncertainty from Medicare risk model changes. Management emphasized continued work to reduce variation, improve participant experience and retention, and the phased nature of policy impacts.Positive Updates
Revenue Growth
Total revenues of $239.7M in Q2, up 14.7% year-over-year from $209.0M and up 1.5% sequentially, driven by higher member months and capitation rates.
Negative Updates
De Novo Center Losses
De novo center losses of $4.7M in Q2 (primarily Tampa and Orlando) and expected FY26 de novo losses of $11.5M–$13.5M; de novo losses are excluded from adjusted EBITDA but remain a drag on operating results.
Read all updates
Q2-2026 Updates
Positive
Negative
Revenue Growth
Total revenues of $239.7M in Q2, up 14.7% year-over-year from $209.0M and up 1.5% sequentially, driven by higher member months and capitation rates.
Read all positive updates
Company Guidance
InnovAge raised its fiscal 2026 outlook, now forecasting 92,900–95,700 member months, $925M–$950M in total revenue, $70M–$75M of adjusted EBITDA, de novo losses of $11.5M–$13.5M, and an unchanged ending census of 7,900–8,100 participants; this follows Q2 results of ~8,010 participants, 23,960 member months (+7.1% YoY, +1.5% sequential), $239.7M revenue, $52.8M center‑level contribution margin (22% of revenue), $22.2M adjusted EBITDA (9.2% margin), $11.8M net income (EPS $0.08, ~136.4M diluted shares), Q2 de novo losses $4.7M, cash $83.2M plus $42.8M short‑term investments, $69.9M total debt, $21.4M operating cash flow and $2.4M capex—management cited successful Medicaid reinstatements, higher Medicaid rates and the phased‑in Medicare v28 impact as drivers of the raise.InnovAge Holding Financial Statement Overview
Summary
Income Statement
34
Negative
Balance Sheet
62
Positive
Cash Flow
56
Neutral
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 912.10M | 853.70M | 763.86M | 688.09M | 698.64M | 637.80M |
| Gross Profit | 180.80M | 584.79M | 132.06M | 101.29M | 135.37M | 161.79M |
| EBITDA | 26.20M | 3.36M | 1.15M | -33.85M | 9.21M | -5.89M |
| Net Income | -4.12M | -30.31M | -21.34M | -40.67M | -6.52M | -43.99M |
Balance Sheet | ||||||
| Total Assets | 527.48M | 557.23M | 579.84M | 547.66M | 562.87M | 538.61M |
| Cash, Cash Equivalents and Short-Term Investments | 125.96M | 105.92M | 102.79M | 102.78M | 184.45M | 203.70M |
| Total Debt | 117.00M | 101.08M | 113.03M | 113.03M | 84.81M | 82.63M |
| Total Liabilities | 238.72M | 294.32M | 280.03M | 247.85M | 209.13M | 180.65M |
| Stockholders Equity | 256.79M | 234.97M | 269.26M | 269.26M | 332.36M | 334.56M |
Cash Flow | ||||||
| Free Cash Flow | 45.98M | 26.60M | -44.81M | -44.81M | -10.94M | -25.09M |
| Operating Cash Flow | 56.67M | 32.87M | -36.90M | -36.90M | 27.30M | -7.55M |
| Investing Cash Flow | -7.46M | -5.55M | -26.37M | -26.37M | -40.24M | -19.54M |
| Financing Cash Flow | -8.62M | -19.08M | -7.03M | -7.03M | -6.32M | 116.22M |
InnovAge Holding Technical Analysis
Positive
5.55
Price Trends
8.26
Negative
6.86
Positive
5.63
Positive
Market Momentum
-0.02
Negative
49.79
Neutral
70.31
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For INNV, the sentiment is Positive. The current price of 5.55 is below the 20-day moving average (MA) of 8.10, below the 50-day MA of 8.26, and below the 200-day MA of 5.63, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 49.79 is Neutral, neither overbought nor oversold. The STOCH value of 70.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 3 New Risks
1.
Our business, results of operations, and financial condition are subject to numerous risks and uncertainties. You should carefully consider the following risk factors before making a decision to invest in our common stock. The risks and uncertainties described below are not the only ones we face. Additional risks and uncertainties that we are unaware of, or that we currently believe are not material, may also become important factors that affect us. If any of the following risks occur, our business, financial condition, operating results and prospects could be materially and adversely affected. You should read these risk factors in conjunction with "Management's Discussion and Analysis of Financial Condition and Results of Operations" in Item 7 and our consolidated financial statements and related notes in Item 8 of this Annual Report on Form 10-K. Q2, 2023
2.
Our operating results may fluctuate significantly in the future, which makes our future operating results difficult to predict and could cause such results to fall below any guidance we provide. Q2, 2023
3.
Our growth strategy may not prove viable, and we may not realize expected results therefrom. Q2, 2023
InnovAge Holding Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $1.09B | 28.23 | 9.31% | ― | 29.89% | 10.33% | |
63 Neutral | $1.10B | 16.58 | -1.69% | ― | 12.48% | -9.28% | |
54 Neutral | $314.46M | -0.79 | -24.30% | ― | -22.14% | -787.87% | |
53 Neutral | $3.23B | -9.62 | -523.78% | ― | 3.93% | -42.22% | |
53 Neutral | $1.57B | -8.33 | -80.84% | ― | 34.99% | -68.73% | |
52 Neutral | $718.23M | -6.34 | -14.67% | ― | -11.42% | -617.31% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
INNV
InnovAge Holding
8.17
5.35
189.72%
AMN
AMN Healthcare Services
18.78
-0.18
-0.95%
BKD
Brookdale Senior Living
13.92
7.71
124.15%
SNDA
Sonida Senior Living
34.39
12.65
58.19%
CCRN
Cross Country Healthcare
9.77
-4.51
-31.58%
PNTG
Pennant Group
30.65
4.65
17.88%
InnovAge Holding Corporate Events
Business Operations and StrategyFinancial Disclosures
InnovAge Holding to Reiterate Fiscal 2026 Guidance Outlook
Positive
Mar 17, 2026
InnovAge Holding Corp. told investors it plans to meet with investors and analysts at the KeyBank Capital Markets Healthcare Forum on March 17, 2026, where it expects to reiterate its full-year fiscal 2026 guidance previously disclosed in early Fe...
Business Operations and StrategyExecutive/Board Changes
InnovAge Holding Expands Board With Returning Directors
Positive
Jan 29, 2026
On January 29, 2026, InnovAge Holding Corp. expanded its Board of Directors from nine to eleven members with the appointments of Pavithra Mahesh and Sean Traynor, both returning directors with prior service before and after the company’s IPO...
Business Operations and StrategyFinancial Disclosures
InnovAge Showcases Growth and PACE Platform Progress
Positive
Jan 12, 2026
On January 12, 2026, InnovAge Holding Corp. hosted an investor webcast in conjunction with the JPM Healthcare Conference, highlighting its progress in scaling a unified payor-provider PACE platform for frail, dual-eligible seniors and emphasizing ...
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.