InnovAge Announces Financial Results for the Fiscal Second Quarter Ended December 31, 2025

DENVER, Feb. 03, 2026 (GLOBE NEWSWIRE) -- InnovAge Holding Corp. (“InnovAge” or the “Company”) (Nasdaq: INNV), an industry leader in providing comprehensive healthcare programs to frail, predominantly dual-eligible seniors through the Program of All-inclusive Care for the Elderly (PACE), today announced financial results for its fiscal second quarter ended December 31, 2025. “InnovAge delivered strong operating and financial results this quarter, reflecting continued progress in building a scalable, high-quality PACE platform,” said Patrick Blair, CEO. “Our performance is rooted in disciplined execution and a care model that prioritizes clinical outcomes, participant experience, and responsible stewardship of public resources. We remain focused on sustainable growth, close partnership with regulators, and long-term value for participants, payors, and shareholders.” Financial Results Three Months Ended December 31, 2025 2024in thousands, except percentages and per share amounts Total revenues$239,708 $208,999 Income (Loss) Before Income Taxes 12,456 (13,457)Net Income (Loss) 11,805 (13,491)Net Income (Loss) margin 4.9% (6.5)% Net Income (Loss) Attributable to InnovAge Holding Corp. 10,618 (13,221)Net Income (Loss) per share - basic and diluted$0.08 $(0.10) Center-level Contribution Margin(1)$52,825 $37,065 Adjusted EBITDA(1)$22,151 $5,869 Adjusted EBITDA margin(1) 9.2% 2.8%  Fiscal Second Quarter 2026 Financial Performance Total revenues of $239.7 million, increased approximately 14.7% compared to $209.0 million in the second quarter of fiscal year 2025Income Before Income Taxes of $12.5 million increased approximately 192.6%, compared to a Loss Before Income Taxes of $13.5 million in the second quarter of fiscal year 2025Income Before Income Taxes as a percent of revenue was 5.2%, an increase of 11.6 percentage points, compared to Loss Before Income Tax as a percent of revenue of 6.4% in the second quarter of fiscal year 2025Center-level Contribution Margin(1) of $52.8 million, increased 42.5% compared to $37.1 million in the second quarter of fiscal year 2025Center-level Contribution Margin(1) as a percent of revenue was 22.0%, an increase of 4.3 percentage points compared to 17.7% in the second quarter of fiscal year 2025Net income of $11.8 million, compared to net loss of $13.5 million in the second quarter of fiscal year 2025Net income margin of 4.9%, an increase of 11.4 percentage points, compared to a net loss margin of 6.5% in the second quarter of fiscal year 2025Net income attributable to InnovAge Holding Corp. of $10.6 million, or earnings per share of $0.08, compared to net loss attributable to InnovAge Holding Corp. of $13.2 million, or a loss per share of $0.10 in the second quarter of fiscal year 2025Adjusted EBITDA(1) of $22.2 million, an increase of $16.3 million, compared to Adjusted EBITDA of $5.9 million in the second quarter of fiscal year 2025Adjusted EBITDA(1) margin of 9.2%, an increase of 6.4 percentage points, compared to 2.8% in the second quarter of fiscal year 2025Census of approximately 8,010 participants compared to 7,480 participants in the second quarter of fiscal year 2025Ended the second quarter of fiscal year 2026 with $83.2 million in cash and cash equivalents plus $42.8 million in short-term investments, and $69.9 million in debt on the balance sheet, representing debt under the Company’s senior secured term loan, revolving credit facility and finance lease obligations (1) Center-level Contribution Margin and Center-level Contribution Margin as a percentage of revenue, Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP measures. For more details and for a definition and reconciliation of these non-GAAP measures to the most closely comparable GAAP measures for the periods indicated, see “Note Regarding Use of Non-GAAP Financial Measures” and “Reconciliation of GAAP and Non-GAAP Measures.” Full Fiscal Year 2026 Financial Guidance Based on information as of today, February 3, 2026, InnovAge is raising full year fiscal 2026 financial guidance, except for ending census which remains unchanged, to the following: Low High dollars in millions Census 7,900 8,100 Total Member Months(1) 92,900 95,700 Total revenues$925 $950 Adjusted EBITDA(2)$70 $75  Expected results and estimates may be impacted by factors outside the Company’s control, and actual results may be materially different from this guidance. See “Forward-Looking Statements - Safe Harbor” included herein. (1) We define Total Member Months as the total number of participants as of period end multiplied by the number of months within a year in which each participant was enrolled in our program. Management believes this is a useful metric as it more precisely tracks the number of participants the Company serves throughout the year. (2)Adjusted EBITDA is a non-GAAP measure. See “Note Regarding Use of Non-GAAP Financial Measures” and “Reconciliation of GAAP and Non-GAAP Measures” for a definition of Adjusted EBITDA and a reconciliation to net income (loss), the most closely comparable GAAP measure. The Company is unable to provide guidance for net income (loss) or a reconciliation of the Company’s Adjusted EBITDA guidance because it cannot provide a meaningful or accurate calculation or estimation of certain reconciling items without unreasonable effort. The Company’s inability to do so is due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliation, including variations in effective tax rate, expenses to be incurred for acquisition activities and other one-time or exceptional items. Conference Call The Company will host a conference call this afternoon at 5:00 PM Eastern Time. A live audio webcast of the call will be available on the Company’s website, https://investor.innovage.com. A replay of the call will be available via webcast for on-demand listening shortly after the completion of the call, at the same web link, and will remain available for a limited time. To access the call by phone, please go to this link (registration link), for dialing instructions and a unique access pin. We encourage participants to dial into the call fifteen minutes ahead of the scheduled start time. About InnovAge InnovAge is a market leader in managing the care of high-cost, frail, and predominantly dual-eligible seniors through the Program of All-inclusive Care for the Elderly (PACE). With a mission of enabling older adults to age independently in their own homes for as long as safely possible, InnovAge’s patient-centered care model is designed to improve the quality of care our participants receive while reducing over-utilization of high-cost care settings. InnovAge believes its PACE healthcare model is one in which all constituencies — participants, their families, providers and government payors — “win.” As of December 31, 2025, InnovAge served approximately 8,010 participants across 20 centers in six states. https://www.innovage.com. Investor Contact: Ryan Kubota [email protected] Media Contact: Lara Hazenfield [email protected] Forward-Looking Statements - Safe Harbor This press release may contain “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as: “anticipate,” “estimate,” “expect,” “project,” “plan,” “intend,” “believe,” “may,” “will,” “should,” “can have,” “likely” and other words and terms of similar meaning in connection with any discussion of the timing or nature of future operating or financial performance or other events. Forward-looking statements may be identified by the fact that they do not relate strictly to historical or current facts. Examples of forward-looking statements include, among others, statements we may make regarding quarterly or annual guidance; financial outlook, including future revenues and future earnings; mid-term and long-term financial goals; the viability of our growth strategy including our ability or expectations to increase the number of participants we serve, build and/or open de novo centers, or to identify and execute tuck-in acquisitions, joint ventures and other strategic partnerships; the expected impact of government policies and the macroeconomic environment; our ability to control costs, mitigate the effects of elevated expenses or reduced healthcare budgets, expand our payer capabilities, implement clinical value and operational value initiatives and strengthen enterprise functions; and the effects of any of the foregoing on our future results of operations or financial conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control and may cause our actual results and financial condition to differ materially. Important factors that could cause our actual results and financial condition to differ materially include, among others, the following: (i) the viability of our growth strategy, including our ability to find suitable geographies for new centers and to attract new participant and retain existing participants in new and existing centers and our ability to obtain licenses to open such centers; (ii) our ability to identify, successfully complete and integrate acquisitions, joint ventures another strategic partnerships; (iii) the impact on our business from ongoing macroeconomic related challenges, including labor shortages, labor competition, inflation, tariffs and trade disputes; (iv) inspections, reviews, audits and investigations under the federal and state government programs, including our ability to sufficiently cure any deficiencies identified; (v) legal proceedings, enforcement actions and litigation and disputes; (vi) under our PACE contracts, we assume all of the risk that the cost of providing services will exceed our compensation; (vii) the dependence of our revenues upon a limited number of government payors, including the risk of sudden loss of any of our government contracts; (viii) the impact of state and federal efforts to reduce healthcare spending, including recent legislation reducing the budget that funds Medicaid; (ix) the risk that our submissions to government payors may contain inaccurate or unsupportable information, including regarding risk adjustment scores of participants, subjecting us to repayment obligations or penalties; (x) and our ability to comply with the continued listing requirements of Nasdaq. Forward-looking statements are based only on information currently available to us and speaks only as of the date on which it is made. Except as required by law, we undertake no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise. We advise you to not place undue reliance on forward-looking statements and to review our risk factors and other disclosures included in the reports we file or furnish with the Securities and Exchange Commission, including our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. Note Regarding Use of Non-GAAP Financial Measures In addition to reporting financial information in accordance with generally accepted accounting principles (“GAAP”), the Company is also reporting Center-level Contribution Margin, Center-level Contribution Margin as a percent of revenue, Adjusted EBITDA and Adjusted EBITDA margin, which are non-GAAP financial measures. These non-GAAP measures are supplemental measures of operating performance monitored by management that are not defined under GAAP and that do not represent, and should not be considered as, an alternative to the most directly comparable GAAP measures. We believe that these non-GAAP measures are appropriate measures of operating performance because they allow us to more effectively evaluate our core operating performance and trends from period to period. Our definitions and calculations of non-GAAP measures may vary and not be comparable to similarly titled measures reported by other companies. We believe that these non-GAAP measures help investors and analysts in comparing our results across reporting periods on a consistent basis by excluding items that we do not believe are indicative of our core operating performance. The Company’s management uses Center-level Contribution Margin as the measure for assessing performance of its operating segments and allocating resources, predominantly in the annual budget and forecasting process. For the purpose of evaluating Center-level Contribution Margin on a center-by-center basis, we do not allocate our sales and marketing expense or corporate, general and administrative expenses across our centers. We define Center-level Contribution Margin as total revenues less external provider costs and cost of care, excluding depreciation and amortization, which includes all medical and pharmacy costs.  We define Adjusted EBITDA as net income (loss) adjusted for interest expense, net, other investment income, depreciation and amortization, and provision (benefit) for income tax as well as addbacks for non-recurring expenses or exceptional items, including charges relating to management equity compensation, litigation costs and settlement, M&A diligence, transaction and integration, business optimization, loss on assets held for sale, and loss (gain) on sale of assets. Adjusted EBITDA margin is Adjusted EBITDA expressed as a percentage of our total revenue. Schedule 1 InnovAge CONDENSED CONSOLIDATED BALANCE SHEETS (IN THOUSANDS, EXCEPT NUMBER OF SHARES) (UNAUDITED) December 31, 2025 June 30, 2025Assets Current Assets Cash and cash equivalents$83,203 $64,129 Short-term investments 42,755 41,775 Restricted cash 10 11 Accounts receivable 21,302 36,373 Prepaid expenses 31,274 24,472 Income tax receivable 3,310 3,310 Assets held for sale — 6,038 Total current assets 181,854 176,108 Noncurrent Assets Property and equipment, net 164,589 168,044 Operating lease assets 24,765 26,901 Deposits and other 10,680 9,875 Goodwill 142,046 142,046 Other intangible assets, net 3,548 3,877 Total noncurrent assets 345,628 350,743 Total assets$527,482 $526,851 Liabilities and Stockholders' Equity Current Liabilities Accounts payable and accrued expenses$55,899 $76,750 Reported and estimated claims 62,443 58,971 Due to Medicaid and Medicare 14,042 14,382 Current portion of long-term debt 2,536 2,250 Current portion of finance lease obligations 5,000 5,234 Current portion of operating lease obligations 4,782 4,682 Liabilities held for sale — 2,538 Total current liabilities 144,702 164,807 Noncurrent Liabilities Deferred tax liability, net 9,272 8,761 Finance lease obligations 5,411 7,535 Operating lease obligations 21,640 23,918 Other noncurrent liabilities 1,704 1,458 Long-term debt, net of debt issuance costs 55,990 57,464 Total liabilities 238,719 263,943 Commitments and Contingencies Redeemable Noncontrolling Interests 27,595 25,010 Stockholders’ Equity Common stock, $0.001 par value; 500,000,000 authorized as of December 31, 2025 and June 30, 2025; 137,162,450 issued and 135,699,471 outstanding as of December 31, 2025 and 136,903,271 issued and 135,440,292 outstanding as of June 30, 2025 137 137 Treasury stock at cost, 1,462,979 shares as of December 31, 2025 and June 30, 2025 (7,500) (7,500)Additional paid-in capital 346,559 343,378 Retained deficit (82,410) (101,047)Total InnovAge Holding Corp. 256,786 234,968 Noncontrolling interests 4,382 2,930 Total stockholders’ equity 261,168 237,898 Total liabilities and stockholders’ equity$527,482 $526,851  Schedule 2 InnovAge CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (IN THOUSANDS, EXCEPT NUMBER OF SHARES AND PER SHARE DATA) (UNAUDITED) Three Months Ended December 31, 2025 2024Revenues Capitation revenue$239,620 $208,674 Other service revenue 88 325 Total revenues 239,708 208,999 Expenses External provider costs 111,999 107,873 Cost of care, excluding depreciation and amortization 74,884 64,061 Sales and marketing 8,078 7,704 Corporate, general and administrative 26,608 28,103 Depreciation and amortization 4,877 5,319 Impairments and loss on assets held for sale — 8,495 Total expenses 226,446 221,555 Operating Income (Loss) 13,262 (12,556) Other Income (Expense) Interest expense, net (1,246) (760)Other income (expense) 440 (157)Gain on equity method investment — 16 Total other expense (806) (901)Income (Loss) Before Income Taxes 12,456 (13,457)Provision for Income Taxes 651 34 Net Income (Loss) 11,805 (13,491)Less: net income (loss) attributable to noncontrolling interests 1,187 (270)Net Income (Loss) Attributable to InnovAge Holding Corp.$10,618 $(13,221) Weighted-average number of common shares outstanding - basic 135,686,130 135,439,668 Weighted-average number of common shares outstanding - diluted 136,351,004 135,439,668 Net income (loss) per share - basic$0.08 $(0.10)Net income (loss) per share - diluted$0.08 $(0.10)  Schedule 3 InnovAge CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (IN THOUSANDS) (UNAUDITED) Six Months Ended December 31, 2025 2024Operating Activities Net income (loss)$19,474 $(19,201)Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities (Gain) loss on disposal of assets (374) 15 Provision for uncollectible accounts — 524 Depreciation and amortization 9,962 10,730 Operating lease rentals 3,078 3,107 Impairments and loss on assets held for sale 104 8,495 Amortization of deferred financing costs 405 215 Stock-based compensation 3,524 4,035 Deferred income taxes 511 437 Other, net 1,403 709 Changes in operating assets and liabilities Accounts receivable 15,071 (2,176)Prepaid expenses and other current assets (6,795) (9,084)Deposits and other (1,498) (629)Accounts payable and accrued expenses (19,590) 2,717 Reported and estimated claims 3,472 3,864 Due to Medicaid and Medicare (341) (1,340)Operating lease liabilities (3,121) (3,181)Net cash provided by (used in) operating activities 25,285 (763)Investing Activities Purchases of property and equipment (6,440) (3,543)Purchases of short-term investments (995) (1,147)Proceeds from sale of assets held for sale 3,716 — Proceeds from sale of short-term investments — 6,300 Net cash (used in) provided by investing activities (3,719) 1,610 Financing Activities Payments for finance lease obligations (2,714) (3,130)Principal payments on long-term debt (60,646) (1,898)Proceeds from the issuance of long-term debt 60,082 — Payments on financing costs (1,989) — Repurchase of equity securities — (5,912)Contribution from joint venture partner 3,200 — Taxes paid related to net settlements of stock-based compensation awards (344) (776)Net cash used in financing activities (2,411) (11,716)Net change in cash, cash equivalents and restricted cash including cash of $0.08 million reclassified to assets held for sale 19,155 (10,869)Less: change in cash and restricted cash reclassified to assets held for sale (82) — INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS & RESTRICTED CASH 19,073 (10,869)CASH, CASH EQUIVALENTS & RESTRICTED CASH, BEGINNING OF PERIOD 64,140 56,960 CASH, CASH EQUIVALENTS & RESTRICTED CASH, END OF PERIOD$83,213 $46,091 Supplemental Cash Flows Information Interest paid$2,311 $2,305 Income taxes paid$341 $1 Property and equipment included in accounts payable$922 $161 Property and equipment purchased under finance leases$358 $—  Schedule 4 InnovAge RECONCILIATION OF GAAP AND NON-GAAP MEASURES (IN THOUSANDS) (UNAUDITED) Adjusted EBITDA Three months ended December 31, 2025 2024 Net income (loss)$11,805 $(13,491)Interest expense, net 1,246 760 Other investment income(a) (483) 141 Depreciation and amortization 4,877 5,319 Provision for income tax 651 34 Stock-based compensation 1,216 1,873 Litigation costs and settlement(b) 1,279 1,405 M&A diligence, transaction and integration(c) — 1,275 Business optimization(d) 1,560 58 Impairments and loss on assets held for sale(e) — 8,495 Adjusted EBITDA$22,151 $5,869 Net income (loss) margin 4.9% (6.5)%Adjusted EBITDA margin 9.2% 2.8% _______________________ (a)Reflects investment income related to short-term investments included in our consolidated statement of operations.(b)Reflects charges/(credits) related to litigation by stockholders, civil investigative demands, and arbitration with our former pharmacy provider. Refer to Note 9, "Commitments and Contingencies" to our condensed consolidated financial statements for more information regarding litigation by stockholders and civil investigative demands. Costs reflected consist of litigation costs considered one-time in nature and outside of the ordinary course of business based on the following considerations which we assess regularly: (i) the frequency of similar cases that have been brought to date, or are expected to be brought within two years, (ii) complexity of the case, (iii) nature of the remedies sought, (iv) litigation posture of the Company, (v) counterparty involved, and (vi) the Company's overall litigation strategy.(c)Reflects charges related to M&A diligence, transactions and integrations.(d)Reflects charges related to business optimization initiatives. Such charges relate to one-time investments in projects designed to enhance our technology and compliance systems and improve and support the efficiency and effectiveness of our operations. For the three months ended December 31, 2025, this consists of costs related to organizational restructure. For the three months ended December 31, 2024, this primarily includes costs related to other non-recurring projects aimed at reducing costs and improving efficiencies.(e)For the three months ended December 31, 2024, reflects impairment charges related to ROU asset and construction in progress related to halting developments to a previously planned de novo center in Louisville, Kentucky that the Company is no longer pursuing. Three months ended September 30, 2025 Net income$7,669 Interest expense, net 1,251 Other investment income(a) (499)Depreciation and amortization 5,085 Provision for income tax 247 Stock-based compensation 2,308 Litigation costs and settlement(b) 979 Business optimization(c) 879 Loss on assets held for sale(d) 104 Gain on sale of assets(e) (381)Adjusted EBITDA$17,642 Net income margin 3.2%Adjusted EBITDA margin 7.5% _______________________ (a)Reflects investment income related to short-term investments included in our consolidated statement of operations.(b)Reflects charges/(credits) related to litigation by stockholders, civil investigative demands, and arbitration with our former pharmacy provider. Refer to Note 9, "Commitments and Contingencies" to our condensed consolidated financial statements for more information regarding litigation by stockholders and civil investigative demands. Costs reflected consist of litigation costs considered one-time in nature and outside of the ordinary course of business based on the following considerations which we assess regularly: (i) the frequency of similar cases that have been brought to date, or are expected to be brought within two years, (ii) complexity of the case, (iii) nature of the remedies sought, (iv) litigation posture of the Company, (v) counterparty involved, and (vi) the Company's overall litigation strategy.(c)Reflects charges related to business optimization initiatives. Such charges relate to one-time investments in projects designed to enhance our technology and compliance systems and improve and support the efficiency and effectiveness of our operations. For the three months ended September 30, 2025, this consists of costs related to organizational restructure and executive severance.(d)Reflects additional loss related to the Company's sale of its managing member interest in SH1 and the adjacent vacant land.(e)Reflects gain on sale of center equipment that was originally purchased for the center in Louisville, Kentucky.  Center-Level Contribution Margin Three Months Ended December 31, 2025 Three Months Ended December 31, 2024(In thousands)PACE All other(a) Totals PACE All other(a) TotalsCapitation revenue$239,620 $— $239,620 $208,674 $— $208,674 Other service revenue 88 — 88 77 248 325 Total revenues 239,708 — 239,708 208,751 248 208,999 External provider costs 111,999 — 111,999 107,873 — 107,873 Cost of care, excluding depreciation and amortization 74,902 (18) 74,884 63,916 145 64,061 Center-Level Contribution Margin 52,807 18 52,825 36,962 103 37,065 Sales and marketing 8,078 7,704 Corporate, general and administrative 26,608 28,103 Depreciation and amortization 4,877 5,319 Impairments and loss on assets held for sale — 8,495 Operating income (loss) 13,262 (12,556)Other expense (806) (901)Income (Loss) Before Income Taxes $12,456 $(13,457)Income (Loss) Before Income Taxes as a percent of revenue 5.2% (6.4)%Center- Level Contribution Margin as a % of revenue 22.0% 17.7% September 30, 2025(In thousands)PACE All other(1) TotalsCapitation revenue$235,751 $— $235,751 Other service revenue 97 257 354 Total revenues 235,848 257 236,105 External provider costs 108,863 — 108,863 Cost of care, excluding depreciation and amortization 75,735 151 75,886 Center-Level Contribution Margin 51,250 106 51,356 Sales and marketing 7,605 Corporate, general and administrative 30,273 Depreciation and amortization 5,085 Loss on assets held for sale 104 Operating income (loss) 8,289 Other expense (373)Income Before Income Taxes $7,916 Income Before Income Taxes as a % of revenue 3.4%Center- Level Contribution Margin as a % of revenue 21.8% _________________________________ (a)Center-level Contribution Margin from segments below the quantitative thresholds are primarily attributable to the Senior Housing operating segment of the Company. This segment has never met any of the quantitative thresholds for determining reportable segments. As of September 2025, the Company no longer operates Senior Housing as the remaining Senior Housing assets were sold.  This press release was published by a CLEAR® Verified individual.