InnovAge Holding (INNV) AI Stock Analysis

• Market Cap: $753.03M
• Dividend Yield: N/A
• Average Volume (3M): 61.88K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.85
• 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: 1.04
• Enterprise Value/Revenue: 0.91
• Enterprise Value/Gross Profit: 4.92
• Enterprise Value/Ebitda: -37.47
• 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: 57 Neutral
• Price Target: $5.50 ▼(-0.90% Downside)

Overall score reflects a balance of improving operating trajectory from the earnings call (strong growth, EBITDA expansion, net income improvement, reaffirmed guidance) against weaker underlying profitability/ROE in the financial statements and a negative P/E that limits valuation support. Technicals are neutral and do not materially strengthen or weaken the outlook.

Positive Factors

Scalable PACE model and rising census

InnovAge’s capitated PACE model plus material census gains show the business is scaling. Sustained enrollment growth drives predictable per-member revenue and improves fixed-cost absorption across centers, supporting durable revenue expansion and longer-term margin improvement.

Improving free cash flow generation

A sharp improvement in free cash flow indicates the company is converting operational gains into cash. Strong cash generation reduces dependence on external financing, funds de novo investments or working capital needs, and materially improves financial flexibility over the next several quarters.

In-house pharmacy lowered pharmacy expenses

Bringing pharmacy in-house is a structural cost-control move that reduces a volatile expense line tied to utilization and third-party pricing. If replicated across centers, it sustains lower medical cost per member and supports durable margin expansion versus relying on external vendors.

Negative Factors

Persistent negative profitability and ROE

Despite recent operational progress, historical negative margins and ROE show the company has yet to consistently convert revenue into shareholder returns. If profitability does not sustainably improve, long-term shareholder value and reinvestment capacity remain constrained.

Rising operating costs pressure margins

Wage inflation and higher third-party fees are structural cost headwinds for labor- and service-intensive senior care. Persistent cost growth can erode the spread on fixed capitated payments, making sustained margin recovery and profitable expansion materially harder.

Reimbursement and regulatory pressure

InnovAge’s model depends on Medicare/Medicaid capitation and state contracts; declining reimbursement or tighter oversight can reduce revenue per participant or impose compliance costs. These structural external risks can compress margins and constrain growth for multiple 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

Financial statements show mixed quality: modest TTM revenue growth and sharply improved free cash flow, plus conservative leverage (debt-to-equity 0.17). However, profitability remains weak with negative margins and negative return on equity, indicating the business is still working through operational inefficiencies.

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: Neutral
• Last Price: 5.55
• 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 Neutral. The current price of 5.55 is below the 20-day moving average (MA) of 5.64, above the 50-day MA of 5.47, and above the 200-day MA of 4.48, indicating a neutral trend. The MACD of 0.07 indicates Positive momentum. The RSI at 48.20 is Neutral, neither overbought nor oversold. The STOCH value of 26.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for INNV.

InnovAge Holding Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PNTG	69 Neutral	$955.48M	36.51	10.87%	―	29.89%	10.33%
INNV	57 Neutral	$753.03M	-43.02	-6.86%	―	12.48%	-9.28%
AMN	57 Neutral	$818.21M	-2.96	-35.90%	―	-11.42%	-617.31%
BKD	55 Neutral	$3.56B	-13.58	-214.33%	―	3.93%	-42.22%
SNDA	54 Neutral	$597.81M	-11.12	-44.33%	―	34.99%	-68.73%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
CCRN	48 Neutral	$305.32M	-19.30	-3.76%	―	-22.14%	-787.87%

InnovAge Holding Corporate Events

InnovAge Holding Expands Board With Returning Directors

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. Mahesh, a Principal at Apax Partners with healthcare services and IT investment experience, rejoined as a Class III director and member of the Quality and Compliance Committee, while Traynor, a General Partner in the healthcare group at Welsh, Carson, Anderson & Stowe, returned as a Class I director and member of the Compensation, Nominating and Governance Committee. Their appointments are intended to deepen the Board’s institutional knowledge, reinforce InnovAge’s execution of its PACE-driven growth strategy, and support efforts to strengthen performance and create long-term value for participants, families, regulators, and shareholders.

The most recent analyst rating on (INNV) stock is a Buy with a $6.00 price target. To see the full list of analyst forecasts on InnovAge Holding stock, see the INNV Stock Forecast page.

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.