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InnovAge Holding (INNV)
NASDAQ:INNV
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InnovAge Holding
(NASDAQ:INNV)
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Rating:59Neutral
Price Target:
$5.00
▲(0.40% Upside)
InnovAge Holding's overall stock score reflects a challenging financial position with ongoing profitability issues, despite strong technical indicators suggesting bullish momentum. The earnings call provided a mixed outlook with both positive growth initiatives and notable challenges. Valuation remains a concern due to negative earnings.
Positive Factors
Revenue Growth
InnovAge's consistent revenue growth indicates strong market demand and effective service delivery, supporting long-term business expansion.
Strategic Partnerships
Strategic partnerships enhance service offerings and expand market reach, providing a competitive edge and fostering sustainable growth.
Improved Cash Flow
Improved cash flow indicates better financial health, enabling InnovAge to invest in growth initiatives and manage debt effectively.
Negative Factors
Profitability Challenges
Persistent profitability issues could hinder InnovAge's ability to reinvest in its business, affecting long-term financial stability.
Net Loss
Continued net losses highlight financial strain, potentially limiting InnovAge's capacity to fund strategic initiatives and growth.
Medicaid Redeterminations Impact
Changes in Medicaid redeterminations could reduce participant numbers, impacting revenue and growth prospects in the near term.
InnovAge Holding (INNV) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$675.48M
Dividend YieldN/A
Average Volume (3M)28.79K
Price to Earnings (P/E)―
Beta (1Y)1.11
Revenue Growth11.76%
EPS Growth-42.52%
CountryUS
Employees2,350
SectorHealthcare
Sector Strength45
IndustryMedical - Care Facilities
Share Statistics
EPS (TTM)-0.01
Shares Outstanding135,637,970
10 Day Avg. Volume50,591
30 Day Avg. Volume28,794
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 Cap0.77
Enterprise Value/Revenue0.61
Enterprise Value/Gross Profit0.89
Enterprise Value/Ebitda155.10
Forecast
1Y Price Target
$5.25Price Target Upside5.42% Upside
Rating ConsensusHold
Number of Analyst Covering4
InnovAge Holding Business Overview & Revenue Model
Company DescriptionInnovAge 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 MoneyInnovAge 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 Earnings Call Summary
Earnings Call Date:Sep 09, 2025
(Q4-2025)
| % Change Since: |
Next Earnings Date:Nov 11, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong revenue growth, improved contribution margins, and significant EBITDA improvements. Despite reporting a net loss and the anticipated challenges from Medicaid redeterminations and the V28 payment model transition, the company demonstrated strong strategic initiatives and partnerships that indicate positive future prospects.Q4-2025 Updates
Positive Updates
Strong Revenue Growth
Fourth quarter revenue was $221.4 million, up 11% from Q4 last year. Full-year revenue was $853.7 million, up nearly 12% year over year.
Improved Contribution Margin
Center-level contribution margin increased to 18% for the full year, up 70 basis points from FY '24.
Significant EBITDA Improvement
Adjusted EBITDA more than doubled year over year to $34.5 million, with margins improving from 2.2% in FY '24 to approximately 4% in FY '25.
Successful Expansion Strategies
Census increased 10% year over year in FY '25, with strong partnerships formed, including a joint venture with Orlando Health and Tampa General Hospital.
Effective Cost Management
Disciplined cost management led to reduced external provider costs per participant and overall improved financial outcomes.
Strategic Partnerships and Growth Initiatives
Announced strategic partnerships and new pathways such as a Medicare-only option to expand access and create growth channels.
Negative Updates
Net Loss Reported
Net loss was $35.3 million for the fiscal year compared to a net loss of $23.2 million in fiscal year 2024.
Impact of Medicaid Redeterminations
Medicaid redeterminations expected to be a headwind to census and member progression in the first part of FY '26.
V28 Payment Model Transition
Transition to the V28 Medicare Advantage payment model expected to be a headwind over the next couple of years.
Company Guidance
During the InnovAge Fourth Quarter 2025 Earnings Conference Call, the company provided guidance for fiscal year 2026, projecting a participant census of 7,900 to 8,100 and member months ranging from 91,600 to 94,400. Total revenue is expected to be between $900 million and $950 million, with adjusted EBITDA estimated at $56 million to $65 million. The company anticipates de novo losses of $13.4 million to $15.4 million. InnovAge aims to achieve adjusted EBITDA margins of 8% to 9% over the next few years, reflecting continued operational improvements and strategic initiatives. The guidance incorporates anticipated Medicare and Medicaid rate increases and adjustments related to the V28 Medicare Advantage payment model transition. Despite projected headwinds from Medicaid redeterminations, InnovAge expects robust gross enrollment trends to continue, supporting overall growth and margin expansion.InnovAge Holding Financial Statement Overview
Summary
InnovAge Holding shows mixed financial performance with slight revenue growth and improved cash flow, but significant profitability challenges remain. The reduction in leverage is a positive step, yet negative margins and returns highlight ongoing operational difficulties.Income Statement
InnovAge Holding shows a mixed performance in its income statement. The company has experienced a slight revenue growth rate of 2.65% in the most recent year, indicating some positive momentum. However, profitability remains a significant concern, with negative net profit and EBIT margins, reflecting ongoing operational challenges. The gross profit margin has improved significantly from the previous year, suggesting better cost management, but overall profitability needs substantial improvement.45
Neutral
Balance Sheet
The balance sheet of InnovAge Holding presents a moderate financial position. The debt-to-equity ratio has improved to 0.18, indicating a reduction in leverage, which is a positive sign. However, the return on equity remains negative, highlighting the company's struggle to generate returns for shareholders. The equity ratio is stable, suggesting a balanced asset structure, but the company needs to address its profitability issues to enhance shareholder value.50
Neutral
Cash Flow
Cash flow analysis reveals some positive trends for InnovAge Holding. The free cash flow has grown significantly by 66.36%, and the operating cash flow to net income ratio is positive, indicating better cash generation relative to net income. However, the free cash flow to net income ratio suggests that while cash flow is improving, it is not yet sufficient to cover net losses fully. Continued focus on cash flow management is essential for financial stability.55
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 853.70M | 853.70M | 763.86M | 688.09M | 698.64M | 637.80M |
| Gross Profit | 584.79M | 584.79M | 132.06M | 101.29M | 135.37M | 174.08M |
| EBITDA | 3.36M | 3.36M | 1.15M | -33.85M | 9.21M | -5.89M |
| Net Income | -30.31M | -30.31M | -21.34M | -40.67M | -7.96M | -44.74M |
Balance Sheet | ||||||
| Total Assets | 526.85M | 526.85M | 547.66M | 567.36M | 555.60M | 531.75M |
| Cash, Cash Equivalents and Short-Term Investments | 105.90M | 105.90M | 102.78M | 173.46M | 184.43M | 201.47M |
| Total Debt | 101.08M | 101.08M | 113.03M | 108.83M | 84.81M | 82.63M |
| Total Liabilities | 263.94M | 263.94M | 247.85M | 252.56M | 201.85M | 173.79M |
| Stockholders Equity | 237.90M | 234.97M | 269.26M | 296.30M | 332.36M | 335.15M |
Cash Flow | ||||||
| Free Cash Flow | 26.60M | 26.60M | -44.81M | -3.12M | -10.94M | -27.09M |
| Operating Cash Flow | 32.87M | 32.87M | -36.90M | 20.24M | 27.30M | -7.55M |
| Investing Cash Flow | -5.55M | -5.55M | -26.37M | -69.52M | -40.24M | -19.54M |
| Financing Cash Flow | -19.08M | -19.08M | -7.03M | -7.90M | -6.32M | 116.22M |
InnovAge Holding Technical Analysis
Positive
4.98
Price Trends
3.87
Positive
3.83
Positive
3.70
Positive
Market Momentum
0.33
Negative
68.74
Neutral
91.94
Negative
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 4.98 is above the 20-day moving average (MA) of 4.08, above the 50-day MA of 3.87, and above the 200-day MA of 3.70, indicating a bullish trend. The MACD of 0.33 indicates Negative momentum. The RSI at 68.74 is Neutral, neither overbought nor oversold. The STOCH value of 91.94 is Negative, 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
Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | 9.57B | 29.67 | 16.00% | 0.15% | 17.71% | 41.83% | |
59 Neutral | $675.48M | ― | -12.02% | ― | 11.76% | -42.52% | |
53 Neutral | 413.35M | -1.98 | 17.49% | ― | 0.80% | -95.01% | |
51 Neutral | 496.55M | -11.56 | -30.90% | ― | 31.37% | 34.94% | |
46 Neutral | 1.79B | -7.15 | -230.26% | ― | 3.99% | -14.74% | |
46 Neutral | 429.84M | -50.68 | -2.02% | ― | -24.30% | -210.27% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
Performance Comparison
INNV
InnovAge Holding
5.07
-1.03
-16.89%
BKD
Brookdale Senior Living
7.53
0.68
9.93%
SNDA
Sonida Senior Living
26.38
0.10
0.38%
CYH
Community Health
2.95
-2.88
-49.40%
CCRN
Cross Country Healthcare
13.12
-1.84
-12.30%
ENSG
The Ensign Group
167.07
15.10
9.94%
InnovAge Holding Corporate Events
Business Operations and StrategyPrivate Placements and Financing
InnovAge Holding Amends Credit Agreement for Stability
Positive
Aug 11, 2025
On August 8, 2025, InnovAge Holding Corp.’s subsidiary, Total Community Options, Inc., amended its existing credit agreement to refinance its term loan and revolving credit facility, securing a $50.7 million term loan and a $100 million revolving credit facility. This amendment extends the maturity date of both financial instruments to August 8, 2028, potentially enhancing the company’s financial stability and operational flexibility.
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.
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.