InnovAge Holding 2025 Q4 Earnings Mixed Results with Earnings Improvement

InnovAge Holding (INNV) reported its fiscal 2025 Q4 earnings on September 9, 2025, delivering mixed results. While revenue increased by 11%, the company narrowed its per-share loss but saw its overall net loss widen. Management offered FY26 guidance, reflecting optimism about enrollment and margin expansion amid challenges in the healthcare sector.

Revenue

InnovAge Holding’s total revenue for 2025 Q4 increased by 11.0% year-over-year to $221.42 million, compared to $199.40 million in the same period of 2024. This growth reflects the company’s continued focus on expanding service offerings and improving operational efficiency.

Earnings/Net Income

The company reported an improvement in its earnings per share (EPS), narrowing the loss to $0.01 per share in 2025 Q4 compared to a loss of $0.01 in 2024 Q4—a 53.6% improvement. However, the net loss widened to $5.01 million for the quarter, a 122.2% increase from the $2.25 million loss in 2024 Q4. Despite this, the EPS improvement indicates progress in cost management and operational discipline.

Price Action

Shares of InnovAge Holding surged 4.91% during the latest trading day, 15.72% over the past full trading week, and 30.58% month-to-date. The stock’s strong performance reflects investor optimism about the company’s long-term growth prospects and strategic direction.

Post-Earnings Price Action Review

Following the earnings report, the stock experienced a sharp upward trend, fueled by positive commentary from management and improved guidance for the upcoming fiscal year. The rally suggests that investors are responding favorably to InnovAge’s strategic focus on expanding PACE access, investing in technology, and optimizing operational efficiency. The CEO’s confidence in long-term margin expansion and the company’s role in addressing systemic senior care challenges further reinforced market sentiment.

CEO Commentary

Patrick Blair, CEO of InnovAge Holding, highlighted the company’s strong performance in FY25, emphasizing consistent execution, margin expansion, and clinical improvements. He noted that revenue growth exceeded 10% CAGR from FY23 to FY25, with adjusted EBITDA more than doubling in FY25. Blair credited disciplined cost management, clinical value initiatives, and census growth for this progress. He outlined key strategic priorities, including expanding PACE access through partnerships and policy advocacy, investing in talent and technology for operational efficiency, and leveraging integrated care to manage costs. Looking forward, Blair expressed optimism about FY26, citing momentum from FY25 and confidence in long-term durability. He emphasized the company’s unique value proposition in senior care and its role in addressing systemic challenges.

Guidance

InnovAge provided FY26 guidance, projecting census of 7,900–8,100 participants, member months of 91,600–94,400, revenue of $900M–$950M, adjusted EBITDA of $56M–$65M, and de novo losses of $13.4M–$15.4M. The guidance incorporates Medicare and Medicaid rate increases, enrollment processing delays, and the phased transition to the B-28 payment model. The company anticipates continued margin expansion, with a long-term target of 8%–9% adjusted EBITDA margins.

Additional News

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