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1. Company Snapshot

1.a. 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.

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1.b. Last Insights on INNV

InnovAge Holding Corp.'s recent performance was positively driven by strong Q1 2026 earnings, with quarterly earnings of $0.06 per share beating the Zacks Consensus Estimate of $0.01 per share. The company's fiscal first quarter ended September 30, 2025, showed a strong start to fiscal 2026, according to CEO Patrick Blair. Additionally, InnovAge's earnings estimate revisions have been trending upward, indicating potential for further price increases. The company also reported growing momentum, with analyst recommendations suggesting it may be a better business compared to peers.

1.c. Company Highlights

2. InnovAge's Strong Q1 Performance Driven by Census Growth and Cost Management

InnovAge reported a robust fiscal first quarter, with total revenue increasing 15% to $236.1 million, center-level contribution margin rising 20% to $51.4 million, and adjusted EBITDA more than doubling to $17.6 million. The company's earnings per share (EPS) came in at $0.06, significantly beating estimates of $0.01. The strong financial performance was driven by an all-time high census of 7,890 participants, up 2% quarter-over-quarter, and effective medical cost management, which resulted in a decline in total participant expense per month.

Publication Date: Nov -23

📋 Highlights
  • Revenue Growth:: Total revenue surged 15% to $236.1 million, driven by Medicaid redetermination cleanup and census growth.
  • Margin Expansion:: Center-level contribution margin rose 20% to $51.4 million, reflecting efficient cost management.
  • Adjusted EBITDA Surge:: Adjusted EBITDA more than doubled to $17.6 million compared to the prior year quarter.
  • Census Growth:: Participant census hit an all-time high of 7,890, a 2% quarter-over-quarter increase.
  • De Novo Loss Reduction:: New center losses fell to $3.9 million, down from $4.1 million in the prior year quarter.

Operational Highlights

InnovAge's new centers in Florida, particularly in Tampa, are off to a strong start, with the partnership with Tampa General showing positive momentum. The company's unique, closed-loop model provides high visibility and control over cost trends, enabling responsible management of participant needs. As CEO Patrick Blair highlighted, "Our model gives us direct accountability for every aspect of participant care," which has contributed to the reduction in total participant expense per month.

Guidance and Outlook

InnovAge reaffirmed its fiscal year 2026 guidance, expecting ending census between 7,900 and 8,100 participants, total revenue between $900 million and $950 million, and adjusted EBITDA between $56 million and $65 million. Analysts estimate next year's revenue growth at 9.1%, indicating a strong outlook for the company.

Valuation Metrics

With a P/E Ratio of -40.99 and an EV/EBITDA of 48.55, InnovAge's valuation multiples indicate a challenging earnings environment. However, the company's P/S Ratio of 0.8 suggests that its revenue growth is not fully priced in. Additionally, the Free Cash Flow Yield of 5.09% is attractive, indicating a potential buying opportunity. As the company continues to execute its strategic priorities and drive growth, its valuation may expand, making it an interesting investment prospect.

3. NewsRoom

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InnovAge and Tampa General Hospital Celebrate Partnership of Senior Care in Grand Re-Opening

Nov -11

Source: globenewswire.com

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InnovAge Holding Corp. (INNV) Q1 2026 Earnings Call Transcript

Nov -05

Source: seekingalpha.com

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InnovAge Holding Corp. (INNV) Q1 Earnings and Revenues Top Estimates

Nov -05

Source: zacks.com

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InnovAge Announces Financial Results for the Fiscal First Quarter Ended September 30, 2025

Nov -04

Source: globenewswire.com

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InnovAge Appoints Dr. Paul Taheri as Chief Medical Officer

Nov -03

Source: globenewswire.com

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Comparing Sonic Healthcare (OTCMKTS:SKHHY) & InnovAge (NASDAQ:INNV)

Nov -02

Source: defenseworld.net

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Top 3 Earnings Acceleration Buys for November

Oct -27

Source: zacks.com

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Halper Sadeh LLC Encourages InnovAge Holding Inc. Shareholders to Contact the Firm to Discuss Their Rights

Oct -22

Source: businesswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (9.00%)

6. Segments

Program of All-inclusive Care for the Elderly

Expected Growth: 9%

InnovAge Holding Corp's Program of All-inclusive Care for the Elderly (PACE) growth is driven by increasing demand for senior care, expansion into new markets, and strategic partnerships. Additionally, the company's focus on value-based care, technology integration, and caregiver support contribute to its 9% growth rate.

All Other

Expected Growth: 7%

InnovAge Holding Corp.'s 7% growth in All Other segment is driven by increasing demand for its healthcare services, expansion into new markets, and strategic partnerships. Additionally, the company's focus on value-based care and cost savings initiatives has led to increased adoption of its services, resulting in revenue growth.

7. Detailed Products

Program of All-inclusive Care for the Elderly (PACE)

A comprehensive healthcare program that provides medical, social, and recreational services to frail elderly individuals

InnovAge Living

A senior living community that offers independent living, assisted living, and memory care services

InnovAge Home Care

A home-based care service that provides medical and non-medical care to seniors in the comfort of their own homes

InnovAge Adult Day Program

A daytime program that provides socialization, meals, and activities for seniors

8. InnovAge Holding Corp.'s Porter Forces

Forces Ranking

Threat Of Substitutes

InnovAge Holding Corp. operates in a highly competitive industry, with many substitutes available to customers. However, the company's focus on providing high-quality services and building strong relationships with its customers helps to mitigate the threat of substitutes.

Bargaining Power Of Customers

InnovAge Holding Corp.'s customers have limited bargaining power due to the company's strong brand reputation and the lack of alternative service providers in the market.

Bargaining Power Of Suppliers

InnovAge Holding Corp. relies on a few key suppliers for its operations, giving them some bargaining power. However, the company's strong relationships with its suppliers and its ability to negotiate favorable terms help to mitigate this risk.

Threat Of New Entrants

The home healthcare industry is highly competitive, and new entrants can easily enter the market. InnovAge Holding Corp. must continue to innovate and differentiate itself to stay ahead of the competition.

Intensity Of Rivalry

The home healthcare industry is highly competitive, with many established players competing for market share. InnovAge Holding Corp. must focus on differentiating itself and providing high-quality services to maintain its market position.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 26.86%
Debt Cost 3.95%
Equity Weight 73.14%
Equity Cost 5.10%
WACC 4.79%
Leverage 36.73%

11. Quality Control: InnovAge Holding Corp. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
P3 Health Partners

A-Score: 4.6/10

Value: 9.8

Growth: 4.4

Quality: 2.9

Yield: 0.0

Momentum: 10.0

Volatility: 0.7

1-Year Total Return ->

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The Oncology Institute

A-Score: 4.6/10

Value: 9.4

Growth: 3.2

Quality: 4.4

Yield: 0.0

Momentum: 10.0

Volatility: 0.7

1-Year Total Return ->

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American Oncology Network

A-Score: 3.5/10

Value: 3.6

Growth: 4.2

Quality: 2.8

Yield: 0.0

Momentum: 10.0

Volatility: 0.7

1-Year Total Return ->

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Community Health Systems

A-Score: 3.5/10

Value: 10.0

Growth: 2.7

Quality: 5.8

Yield: 0.0

Momentum: 1.0

Volatility: 1.7

1-Year Total Return ->

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Stock-Card
InnovAge Holding

A-Score: 2.6/10

Value: 4.8

Growth: 3.2

Quality: 3.4

Yield: 0.0

Momentum: 2.5

Volatility: 2.0

1-Year Total Return ->

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Stock-Card
ModivCare

A-Score: 2.5/10

Value: 8.0

Growth: 2.2

Quality: 4.5

Yield: 0.0

Momentum: 0.0

Volatility: 0.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

5.03$

Current Price

5.03$

Potential

-0.00%

Expected Cash-Flows