InnovAge Holding 2025 Q3 Earnings Misses Targets as Net Loss Widens 80%

InnovAge Holding (INNV) reported its fiscal 2025 Q3 earnings on May 6th, 2025. Despite a revenue increase of 13%, InnovAge missed expectations with a net loss of $11.13 million, widening 80% year-over-year. The company's fiscal guidance remains in-line with previous projections, anticipating total revenues between $815 million and $865 million for the full fiscal year 2025. InnovAge's strategy continues to focus on strengthening its PACE platform to deliver improved outcomes for participants and create long-term shareholder value.

Revenue

InnovAge Holding saw a significant revenue increase of 13.0% in fiscal Q3 2025, totaling $218.14 million, compared to $193.07 million in Q3 2024. Capitation revenue was the primary contributor, amounting to $217.82 million, while other service revenue added $323,000 to the total. This growth underscores the company's ability to enhance its revenue streams effectively.

Earnings/Net Income

InnovAge Holding's losses deepened in Q3 2025, with a loss of $0.08 per share compared to $0.04 per share in Q3 2024. The net loss widened to $-11.13 million, marking an 80.0% increase from the $-6.18 million loss recorded in the same quarter last year. The EPS performance indicates continued financial challenges for the company.

Price Action

The stock price of InnovAge Holding edged down 0.35% during the latest trading day, dropped 6.56% during the most recent full trading week, and edged up 2.52% month-to-date.

Post-Earnings Price Action Review

The strategy of investing in InnovAge Holding (INNV) shares following a quarterly revenue increase and holding for 30 days has historically yielded strong returns. Over the past five years, this approach delivered a 38.67% return, significantly outperforming the market's 10.1% average. This suggests that focusing on companies with demonstrated revenue growth potential can lead to substantial gains. Investors have recognized InnovAge's ability to capitalize on growth opportunities post-revenue increase, reflecting their confidence in the company's strategic direction and execution capabilities. Such performance highlights the importance of identifying and investing in companies poised for growth, particularly those capable of maintaining momentum after positive earnings reports.

CEO Commentary

"Our third-quarter results reflect continued strength in topline growth, disciplined cost management, and effective medical expense control," said Patrick Blair, CEO of InnovAge Holding Corp. He emphasized the company's focus on executing with greater consistency while building a PACE platform aimed at delivering improved outcomes for participants, generating significant savings for the healthcare system, and creating long-term shareholder value.

Guidance

InnovAge is confirming its financial guidance for the full fiscal year 2025, projecting a census of 7,300 to 7,750 participants and total revenues between $815 million and $865 million. The company anticipates Adjusted EBITDA in the range of $24 million to $31 million. Expected results may be influenced by factors outside the company's control, particularly given the uncertain macroeconomic environment and market volatility.

Additional News

Within the past three weeks, InnovAge has seen notable developments in its executive team and strategic operations. Dr. Richard Feifer, InnovAge's Chief Medical Officer, departed on April 25, 2025, to pursue other opportunities, marking a significant change in the clinical leadership structure. InnovAge also completed the acquisition of a pharmacy in Colorado, integrating pharmaceutical services into its operations to enhance medication adherence and participant outcomes. Additionally, the company repurchased $5.9 million worth of shares, reflecting a strategic move to manage its capital allocation amid financial challenges. These changes signify InnovAge's continued evolution in leadership and operational strategy, aiming to strengthen its position in the healthcare market.