InnovAge Holding (INNV) AI Stock Analysis

• Market Cap: $719.11M
• Dividend Yield: N/A
• Average Volume (3M): 61.88K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.88
• 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: 135,681,430
• 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: 0.60
• Enterprise Value/Gross Profit: 3.28
• Enterprise Value/Ebitda: -24.94
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 56 Neutral
• Price Target: $5.50 ▲(0.36% Upside)

The score is driven primarily by mixed financial performance (improving cash flow but still weak profitability/ROE) and a constructive but not powerful technical backdrop. The latest earnings call is a notable positive with strong growth, margin improvement, and reaffirmed guidance, but valuation remains a key drawback due to negative earnings and no dividend support.

Positive Factors

Record census / enrollment growth

Sustained participant growth underpins the capitated revenue model by spreading fixed costs and improving per-center economics. Higher census increases predictable monthly revenue, supports margin expansion, enhances cash generation, and strengthens bargaining power with payors over the medium term.

Integrated payor-provider PACE platform

A unified payor-provider model aligns clinical incentives with financial accountability, enabling tighter utilization management and higher care coordination. This structural advantage creates switching costs, supports contracting with government payors, and can drive durable margin and growth improvements when scaled.

Sharp improvement in cash generation

Material free cash flow improvement signals better operational cash conversion and reduced reliance on financing. Durable cash generation supports de novo investments, working capital, and margin-accretive expansion, providing a buffer against reimbursement variability and cyclical pressures over months.

Negative Factors

Negative profitability and ROE

Persistently negative margins and return on equity indicate the company has yet to fully translate revenue growth into sustainable profits. Under a capitated model, consistent operating profitability is essential to fund growth and protect against reimbursement shifts; current deficits risk long-term value creation.

Rising operating costs and utilization pressure

Higher medical utilization and rising labor and third-party fees directly compress margins under fixed capitated payments. If these cost trends persist, they can erode recently improved cash flow and force slower expansion, tighter service levels, or reliance on one-time efficiencies to sustain profitability.

Leadership transition risks

Executive turnover at the COO level during a scale-up phase can disrupt operational continuity and slow rollout of cost and efficiency initiatives. New leadership must sustain clinical and operational execution; missteps could impede center openings, census momentum, and the realization of targeted margins over the coming quarters.

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: Positive
• Last Price: 5.48
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 5.48 is below the 20-day moving average (MA) of 5.54, above the 50-day MA of 5.25, and above the 200-day MA of 4.29, indicating a bullish trend. The MACD of 0.02 indicates Positive momentum. The RSI at 53.64 is Neutral, neither overbought nor oversold. The STOCH value of 56.32 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for INNV.

InnovAge Holding Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PNTG	73 Outperform	$973.12M	38.15	10.87%	―	29.89%	10.33%
BKD	59 Neutral	$2.62B	-8.42	-214.33%	―	3.93%	-42.22%
INNV	56 Neutral	$719.11M	-43.10	-6.86%	―	12.48%	-9.28%
SNDA	54 Neutral	$606.07M	-11.20	-44.33%	―	34.99%	-68.73%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
AMN	50 Neutral	$588.11M	-2.19	-35.90%	―	-11.42%	-617.31%
CCRN	48 Neutral	$269.94M	-17.41	-3.76%	―	-22.14%	-787.87%

InnovAge Holding Corporate Events

InnovAge Showcases Growth and PACE Platform Progress

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 its integrated clinical and financial accountability model. Management underscored that investments over the past two years in technology, compliance, utilization management, and operating discipline have begun to translate into higher census, strong revenue growth from $171.2 million in the first quarter of fiscal 2023 to $236.1 million in the first quarter of fiscal 2026, and expanding Adjusted EBITDA margins, positioning the company for responsible, margin-accretive growth, selective geographic expansion, and increased cash generation, with implications for continued value creation for government payors, participants and their families, and investors.

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.