Innovage Holding Corp. (INNV)
NASDAQ:INNV
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InnovAge Holding
(NASDAQ:INNV)
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Rating:63Neutral
Price Target:
$8.50
▲(53.15% Upside)
Action:ReiteratedDate:05/06/26
Overall score reflects improving operational momentum and raised guidance from the latest earnings call, plus healthier recent cash generation and manageable leverage. The score is held back by ongoing GAAP losses and margin pressure (including litigation-driven G&A), with only moderately supportive technicals and a reasonable (not deeply discounted) valuation.
Positive Factors
Raised FY2026 guidance & revenue growth
Management raised FY2026 revenue and adjusted EBITDA guidance after stronger-than-expected Q3 results, reflecting durable top-line momentum from higher capitation and member months. This increases multi-quarter visibility into cash flows tied to the capitated PACE model.
Negative Factors
Large litigation-driven corporate G&A
A material one-time or recurring increase in litigation-related corporate G&A has meaningfully widened GAAP losses and elevated overhead. Persistent legal costs can erode cash flow, distract management, and limit ability to reinvest in care delivery improvements over multiple quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Raised FY2026 guidance & revenue growth
Management raised FY2026 revenue and adjusted EBITDA guidance after stronger-than-expected Q3 results, reflecting durable top-line momentum from higher capitation and member months. This increases multi-quarter visibility into cash flows tied to the capitated PACE model.
Read all positive factors
InnovAge Holding (INNV) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.10B
Dividend YieldN/A
Average Volume (3M)285.52K
Price to Earnings (P/E)―
Beta (1Y)0.74
Revenue Growth14.13%
EPS Growth62.92%
CountryUS
Employees2,350
SectorHealthcare
Sector Strength45
IndustryMedical - Care Facilities
Share Statistics
EPS (TTM)-0.16
Shares Outstanding135,699,480
10 Day Avg. Volume267,610
30 Day Avg. Volume285,518
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 Cap0.95
Enterprise Value/Revenue1.15
Enterprise Value/Gross Profit5.78
Enterprise Value/Ebitda39.88
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)$944.52M
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 and receiving capitated (fixed, per-member per-month) payments to provide all covered care to enrolled participants. Revenue is largely driven by (1) capitation payments from government pay...
InnovAge Holding Key Performance Indicators (KPIs)
InnovAge Holding Earnings Call Summary
Earnings Call Date:May 05, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Sep 15, 2026
Earnings Call Sentiment Positive
The call conveyed meaningful operational and financial momentum: strong revenue growth, material margin expansion, improved adjusted EBITDA, positive operating cash flow, raised FY2026 guidance and active reinvestment in clinical/technology capabilities. Key risks include a wider GAAP net loss driven by litigation-related corporate G&A increases, wage and care cost inflation, ongoing de novo costs, and early signs of Medicaid rate pressure for FY2027 (with modest Medicare rate growth). On balance, the company emphasized durable improvements, disciplined execution and readiness to manage near-term rate headwinds.Positive Updates
Strong Revenue Growth
Total revenue of $251.9M in Q3 FY2026, up 15.5% YoY from $218.1M and up 5.1% QoQ, driven by higher capitation rates and member month growth.
Negative Updates
Widening GAAP Net Loss
Net loss of $29.9M in Q3 FY2026 versus a net loss of $11.1M in Q3 FY2025; loss per share of $0.22 on a fully diluted share base of ~135.7M.
Read all updates
Q3-2026 Updates
Positive
Negative
Strong Revenue Growth
Total revenue of $251.9M in Q3 FY2026, up 15.5% YoY from $218.1M and up 5.1% QoQ, driven by higher capitation rates and member month growth.
Read all positive updates
Company Guidance
InnovAge raised its fiscal 2026 guidance to revenue of $950–$975 million and adjusted EBITDA of $85–$90 million, and expects ending census of 7,900–8,100 participants, member months of 92,900–95,700 and de novo losses of $11.5–$13.5 million for the year. Management pointed to Q3 results driving the update: Q3 revenue $251.9M, center‑level contribution margin $61M (24.2% of revenue), adjusted EBITDA $30.5M (12.1% margin), member months 24,060 and ~8,050 participants across 20 centers, with Q3 de novo losses $1.8M. Key balance‑sheet and cash metrics cited were $95.5M cash, $43.1M short‑term investments, $69.4M total debt, $18.1M operating cash flow and $3.6M capex; Q3 net loss was $29.9M (‑$0.22 per share on ~135.7M diluted shares). Management also flagged FY27 assumptions of roughly +1.5–2% Medicare rate growth and early signs of increased Medicaid budget pressure, with more detail to come in September.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
8.42
Negative
6.98
Positive
5.72
Positive
Market Momentum
<0.01
Negative
51.26
Neutral
64.12
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 8.05, below the 50-day MA of 8.42, and below the 200-day MA of 5.72, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 51.26 is Neutral, neither overbought nor oversold. The STOCH value of 64.12 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 |
|---|---|---|---|---|---|---|---|
68 Neutral | $1.14B | 31.06 | 9.31% | ― | 36.31% | 18.03% | |
63 Neutral | $1.10B | -9.24 | -9.16% | ― | 14.13% | 62.92% | |
60 Neutral | $810.62M | -19.83 | -14.67% | ― | -8.49% | 35.03% | |
54 Neutral | $326.74M | -2.77 | -24.30% | ― | -21.56% | -577.69% | |
53 Neutral | $1.76B | -4.96 | -80.84% | ― | 25.24% | -3915.18% | |
52 Neutral | $3.37B | -118.16 | -523.78% | ― | 2.19% | -26.04% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
INNV
InnovAge Holding
8.12
4.86
149.08%
AMN
AMN Healthcare Services
20.97
1.36
6.94%
BKD
Brookdale Senior Living
14.18
7.57
114.52%
SNDA
Sonida Senior Living
37.15
13.19
55.05%
CCRN
Cross Country Healthcare
10.11
-3.73
-26.95%
PNTG
Pennant Group
32.53
4.77
17.18%
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...
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.