InnovAge Reports Mixed Quarterly Results Amid Strong Growth and One-Time Charges

InnovAge Holding Inc. presented a complex financial picture in its latest earnings report, showcasing impressive revenue growth while simultaneously reporting deeper losses. The healthcare services provider finds itself navigating the challenging intersection of ambitious expansion and operational headwinds, creating a scenario that demands careful investor scrutiny.

Confident Outlook for Fiscal 2026

Management expressed strong confidence in the company’s trajectory, projecting revenue between $900 million and $950 million for the upcoming fiscal year. This forecast represents growth of 5% to 11% compared to the current year’s performance. Even more notably, the company anticipates adjusted EBITDA to reach $56 million to $65 million—a substantial increase of 62% to 89%. Participant numbers are also expected to climb further, reaching between 7,900 and 8,100 individuals.

Revenue Growth Driven by Expanding Membership

The company demonstrated robust top-line performance during the fourth quarter, with revenue climbing 11.0% to reach $221.4 million. For the full fiscal year 2025, revenue advanced 11.8% to $853.7 million. This growth was primarily fueled by an expanding participant base, which now stands at 7,740 individuals—representing a 10.3% increase year-over-year. The company’s business model, which relies on capitated payments from Medicare and Medicaid, continues to provide consistent and predictable revenue streams.

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One-Time Expenses Impact Bottom Line

Despite the record revenue figures, InnovAge’s net losses widened significantly. The quarterly net loss nearly doubled to $5.0 million, while full-year losses totaled $35.3 million compared to $23.2 million in the previous year. These results were primarily affected by special items, including a $10.1 million provision for litigation settlements and $13.6 million in impairment charges that substantially impacted the bottom line.

Underlying Operational Efficiency Shows Marked Improvement

Beyond these one-time charges, the company demonstrated notable operational improvements. Fourth quarter adjusted EBITDA surged 117.3% to $11.3 million, with the margin expanding to 5.1%. For the full year, this operational profit measure nearly tripled to $34.5 million. The center-level contribution margin also showed significant strength, indicating enhanced clinical integration and operational efficiency across the organization.