Education
About Us
Working with TipRanks
Follow Us
Innovage Holding Corp. (INNV)
:INNV
Top Page
InnovAge Holding
(NASDAQ:INNV)
Rating:52Neutral
Price Target:
$4.00
▼(-8.47%Downside)
InnovAge Holding (INNV) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$590.01M
Dividend YieldN/A
Average Volume (3M)42.60K
Price to Earnings (P/E)―
Beta (1Y)0.94
Revenue Growth12.19%
EPS Growth-1.59%
CountryUS
Employees2,350
SectorHealthcare
Sector Strength44
IndustryMedical - Care Facilities
Share Statistics
EPS (TTM)-0.08
Shares Outstanding135,012,950
10 Day Avg. Volume56,668
30 Day Avg. Volume42,605
Financial Highlights & Ratios
PEG Ratio0.89
Price to Book (P/B)2.37
Price to Sales (P/S)0.00
P/FCF Ratio36.39
Enterprise Value/Market Cap1.06
Enterprise Value/Revenue0.20
Enterprise Value/Gross Profit4.20
Enterprise Value/Ebitda151.13
Forecast
1Y Price Target
$4.00Price Target Upside-8.47% Downside
Rating ConsensusHold
Number of Analyst Covering1
InnovAge Holding Business Overview & Revenue Model
Company DescriptionInnovAge Holding Corp (INNV) is a healthcare company that focuses on providing comprehensive care services to the elderly population. It operates primarily in the Program of All-Inclusive Care for the Elderly (PACE) sector, offering integrated managed care solutions that encompass medical, social, and behavioral health services. The company's core services are designed to enable seniors to age independently in their homes and communities while receiving coordinated healthcare services tailored to their needs.
How the Company Makes MoneyInnovAge Holding generates revenue primarily through capitation payments from government programs such as Medicare and Medicaid. Under the PACE model, InnovAge receives a fixed monthly payment per enrolled participant, which covers all necessary medical and supportive services. This model allows the company to manage care delivery efficiently while focusing on cost-effective outcomes. Key revenue streams come from the comprehensive management of healthcare services, including primary care, specialist visits, hospitalization, and long-term care. The company's financial performance is influenced by enrollment growth, effective cost management, and favorable regulatory environments. InnovAge's partnerships with healthcare providers and community organizations also play a crucial role in extending its service reach and optimizing care delivery.
InnovAge Holding Earnings Call Summary
Earnings Call Date:May 06, 2025
(Q3-2025)
| % Change Since: 53.33%|
Next Earnings Date:Sep 16, 2025
Earnings Call Sentiment Neutral
InnovAge reported strong revenue growth and improved adjusted EBITDA, along with successful operational transformation efforts. However, the company also faced increased net losses and corporate expenses, alongside challenges with new center operations.Q3-2025 Updates
Positive Updates
Strong Revenue Growth
InnovAge reported revenue of $218.1 million, representing a 13% increase year-over-year.
Improved Adjusted EBITDA
Adjusted EBITDA was $10.8 million, a significant improvement from $3 million in the previous year, with an adjusted EBITDA margin of 4.9%.
Census Growth
Census grew to approximately 7,530 participants, marking a 10% annual increase.
Operational Transformation
InnovAge has shifted from operational stabilization to enterprise transformation, with a focus on operational excellence and greater efficiency.
Pharmacy Initiative Success
The acquisition of a pharmacy in Colorado was completed, with the transition of pharmacy distribution and management successfully migrated.
Cost Management
Despite seasonal illness pressures, external provider costs were maintained, and PMPM spending declined from $4,857 in Q2 to $4,786 in Q3.
Negative Updates
Net Loss
InnovAge reported a net loss of $11.1 million compared to a net loss of $6.2 million in the same quarter of fiscal year 2024.
Increased Corporate Expenses
Corporate, general, and administrative expenses increased by 40.1% due to a $10.7 million accrual for an anticipated stockholder lawsuit settlement.
Cost of Care Increase
Cost of care increased by 17.6% compared to the previous year, driven by higher salaries, wages, and benefits.
De Novo Center Losses
De novo losses were $3.5 million, primarily related to centers in Bakersfield, Crenshaw, Tampa, and Orlando, indicating ongoing challenges with new centers.
Company Guidance
During the InnovAge Third Quarter 2025 Earnings Conference Call, the company reaffirmed its fiscal year 2025 guidance, projecting an ending census between 7,300 and 7,750 participants, with member months ranging from 86,000 to 89,000. The total revenue is expected to be between $815 million and $865 million, while adjusted EBITDA is projected to be in the range of $24 million to $31 million. De novo losses are anticipated to be between $18 million and $20 million for fiscal 2025. The third quarter results showed a revenue of $218.1 million, a 13% year-over-year increase, and an adjusted EBITDA of $10.8 million, reflecting a 4.9% margin. The company experienced a 10% annual growth in census, reaching approximately 7,530 participants. Center-level contribution was $40.7 million, with an 18.7% margin, improving by approximately 110 basis points year-over-year. Despite challenges in the healthcare environment, InnovAge reported disciplined cost management and effective medical expense control, maintaining strong cost discipline amidst seasonal illness pressures.InnovAge Holding Financial Statement Overview
Summary
InnovAge Holding shows revenue growth but struggles with profitability and operational cost management. The balance sheet indicates moderate stability, yet negative equity returns persist. Improved cash flow management is a positive, though historical volatility remains a concern.Income Statement
InnovAge Holding has experienced moderate revenue growth over recent years, with a TTM increase in total revenue by approximately 8.87% compared to the previous year. However, the company faces challenges with profitability, as indicated by negative net income and EBIT margins. The gross profit margin is decreasing, indicating potential cost management issues.42
Neutral
Balance Sheet
The balance sheet demonstrates moderate stability with a debt-to-equity ratio of 0.42 in the TTM period, which is manageable. However, the equity ratio of 45.77% suggests the company relies significantly on equity financing. Return on equity remains negative due to continuing net losses.50
Neutral
Cash Flow
InnovAge Holding shows improvement in its cash flow position with positive free cash flow in the TTM period. The operating cash flow to net income ratio indicates better cash generation relative to reported net losses. Nonetheless, historical volatility in free cash flow suggests potential liquidity challenges.55
Neutral
| Breakdown | TTM | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 | Jun 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 831.68M | 763.86M | 688.09M | 698.64M | 637.80M | 567.19M |
| Gross Profit | 148.93M | 132.06M | 101.29M | 135.37M | 174.08M | 141.30M |
| EBITDA | -4.76M | 1.15M | -33.85M | 9.21M | -5.89M | 61.54M |
| Net Income | -31.23M | -21.34M | -40.67M | -7.96M | -44.74M | 26.28M |
Balance Sheet | ||||||
| Total Assets | 536.65M | 547.66M | 567.36M | 555.60M | 531.75M | 409.63M |
| Cash, Cash Equivalents and Short-Term Investments | 101.73M | 102.78M | 173.46M | 184.43M | 201.47M | 112.90M |
| Total Debt | 103.62M | 113.03M | 108.83M | 84.81M | 82.63M | 217.96M |
| Total Liabilities | 268.94M | 247.85M | 252.56M | 201.85M | 173.79M | 301.88M |
| Stockholders Equity | 245.60M | 269.26M | 296.30M | 332.36M | 335.15M | 101.02M |
Cash Flow | ||||||
| Free Cash Flow | 15.99M | -44.81M | -3.12M | -10.94M | -27.09M | 31.98M |
| Operating Cash Flow | 25.74M | -36.90M | 20.24M | 27.30M | -7.55M | 43.83M |
| Investing Cash Flow | -5.59M | -26.37M | -69.52M | -40.24M | -19.54M | -11.69M |
| Financing Cash Flow | -13.79M | -7.03M | -7.90M | -6.32M | 116.22M | 21.23M |
InnovAge Holding Technical Analysis
Positive
4.37
Price Trends
3.96
Positive
3.52
Positive
4.09
Positive
Market Momentum
0.12
Negative
55.01
Neutral
61.29
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 4.37 is above the 20-day moving average (MA) of 4.09, above the 50-day MA of 3.96, and above the 200-day MA of 4.09, indicating a bullish trend. The MACD of 0.12 indicates Negative momentum. The RSI at 55.01 is Neutral, neither overbought nor oversold. The STOCH value of 61.29 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 0 New Risks
InnovAge Holding Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | $8.12B | 26.52 | 17.66% | 0.18% | 16.80% | 39.99% | |
60 Neutral | HK$16.23B | 5.53 | -7.44% | 3.84% | 11.55% | -28.15% | |
55 Neutral | $472.58M | ― | -70.23% | ― | 26.13% | 37.38% | |
52 Neutral | $590.01M | ― | -12.03% | ― | 12.19% | -1.59% | |
51 Neutral | $1.83B | ― | -91.17% | ― | 3.88% | -34.30% | |
49 Neutral | $393.73M | ― | -4.00% | ― | -29.16% | -140.16% | |
49 Neutral | $513.52M | ― | 39.18% | ― | 1.05% | -288.07% |
* Healthcare Sector Average
Performance Comparison
INNV
InnovAge Holding
4.23
-1.73
-29.03%
BKD
Brookdale Senior Living
7.70
0.02
0.26%
SNDA
Sonida Senior Living
25.23
-6.26
-19.88%
CYH
Community Health
3.64
-0.13
-3.45%
CCRN
Cross Country Healthcare
12.55
-2.56
-16.94%
ENSG
The Ensign Group
138.85
2.44
1.79%
InnovAge Holding Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
InnovAge Holding Strengthens Leadership with Key Appointments
Positive
Nov 4, 2024
InnovAge Holding Corp. has appointed Michael Scarbrough as its new President and Chief Operating Officer, effective November 4, 2024, succeeding Christine Bent, who will now serve as a Senior Advisor. Scarbrough, with over 30 years of experience in healthcare, will focus on enhancing InnovAge’s strategic priorities, leveraging his extensive operational expertise. Additionally, Maria Lozzano has been promoted to President of Pharmacy Services, further strengthening the leadership team as InnovAge continues to evolve its healthcare service offerings for seniors.
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.