InnovAge Holding Corp. (INNV)

Price$10.75Cached quoteAs of 2026-09-05 20:16 UTC

AI: Fair-priced

Price checkThe turnaround looks real, but today’s valuation already prices in further progress.

At roughly $1.46 billion of equity value, the shares cost about 29 times fiscal 2026 free cash flow of $50.4 million—cash left after operations and capital spending. The business value after cash and debt is about 15 times adjusted operating profit before interest, tax, depreciation and amortization. They also trade near 6.2 times accounting equity while reported earnings remain slightly negative. These figures are neither cheap nor clearly excessive if growth continues, making Fair-priced the most defensible verdict.

Big pictureRevenue and care margins improved sharply, while large legal costs obscured reported profit.

Fiscal 2026 revenue rose 15.9% to $989.7 million, and center-level contribution—the money left after outside providers and direct care—rose 48.3% to $227.8 million. Operating cash reached $64.7 million; after $14.3 million of capital spending, free cash flow was $50.4 million, versus about $26.6 million in 2025. Yet reported operating profit was only $2.6 million and the net loss was $2.5 million. Cash flow was negative in 2024, so one excellent year does not establish durability.

Business strengthSteady government payments help demand, but InnovAge absorbs each member’s medical costs.

InnovAge receives fixed monthly payments, mainly from Medicare and Medicaid, for each enrolled senior; this cushions normal economic cycles and supported 8,230 participants across 20 centers. However, InnovAge must fund essentially all care, so unusually sick members or reimbursement that lags costs can erase profit. Fiscal 2026 outside-provider and direct-care costs totaled $761.9 million, 77% of revenue. The balance sheet improved to $97.9 million of cash against $87.0 million of debt, although current assets exceeded current liabilities by only $10.4 million.

What could change the storyMeeting next year’s targets could justify the price; renewed cost shocks would not.

Management expects fiscal 2027 revenue of $1.05-$1.085 billion and adjusted operating profit before interest, tax, depreciation and amortization of $105-$115 million. The present business value is about 13 times that profit midpoint. Steady enrollment and cost control could justify it; another $52.4 million year of legal resolutions would not. Capital allocation was conservative: debt fell $14.1 million, with no buybacks or dividends. Stock compensation was $7.0 million, but shares rose only 0.4%, keeping dilution modest. Sustained reported profit would strengthen the case.

AI: News

Full-year turnaround confirmedFull-year sales and cash flow strengthened, while management forecast another year of growth.

On September 8, InnovAge reported fiscal 2026 revenue of $989.7 million, up 15.9%, and adjusted operating profit before interest, tax, depreciation and amortization of $94.6 million, up from $34.5 million. Fourth-quarter attributable net income reached $8.3 million. Management guided fiscal 2027 revenue to $1.05-$1.085 billion and adjusted profit to $105-$115 million. Shares gained 4.8% in the next session; the timing is consistent with a favorable response but does not prove the announcement caused it.

Legal charge masks progressA large legal charge drove a quarterly loss despite much stronger underlying center performance.

On May 5, fiscal third-quarter revenue rose 15.5% to $251.9 million, while center-level contribution increased 49.8% to $61.0 million. Adjusted operating profit was $30.5 million, but a $51.9 million legal charge helped drive a $29.9 million reported net loss. Management nevertheless lifted full-year revenue guidance to $950-$975 million and adjusted profit guidance to $85-$90 million. The contrast mattered because it showed stronger care economics alongside unresolved legal costs; subsequent full-year results exceeded both raised ranges.

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Revenue

2020

2021

2022

2023

2024

2025

Net income

2020

2021

2022

2023

2024

2025

Free cash flow

2020

2021

2022

2023

2024

2025

Total cash / debt

CashTotal debt

2020

2021

2022

2023

2024

2025

Financial statements

	2025	2024	2023	2022	2021	2020
Revenue	$853.7M	$763.9M	$688.1M	$698.6M	$637.8M	$567.2M
Gross profit	$153.6M	$132.1M	$101.3M	$135.4M	—	—
Gross margin	18.00%	17.29%	14.72%	19.38%	—	—
Operating expenses	$883.5M	$787.0M	$737.5M	$703.0M	$650.1M	$516.3M
Operating income	−$29.8M	−$23.2M	−$49.4M	−$4.4M	−$12.3M	$50.9M
Operating margin	−3.49%	−3.03%	−7.18%	−0.63%	−1.93%	8.98%
EBITDA	−$10.3M	−$4.2M	−$34.0M	$9.5M	−$43,000	$62.2M
EBITDA margin	−1.20%	−0.55%	−4.94%	1.36%	−0.01%	10.97%
Net income	−$30.3M	−$21.3M	−$40.7M	−$6.5M	−$44.0M	$26.3M
Net profit margin	−3.55%	−2.79%	−5.91%	−0.93%	−6.90%	4.63%
Basic EPSper basic share	-$0.22	-$0.16	-$0.30	-$0.05	-$0.36	$0.20
Diluted EPSper diluted share	-$0.22	-$0.16	-$0.30	-$0.05	-$0.36	$0.19

Review official source filings ↗

Owners

Reported shareholders

Reference date Jun 30, 2026

Reported holdings Number of shares

View holders

Top 12 reported holders of INNV
Holder	Shares held
BLAIR PATRICK T	687.1K
DAMATO NICOLE	296.74K
Feifer Richard	220.91K
SCARBROUGH MICHAEL ANTHONY	119.62K
ZORETIC RICHARD C	93.81K
CARLSON JAMES G	87.35K
Kennedy Edward Moore Jr.	68.16K
Browne Jennifer	67.84K
FONTNEAU PATRICIA	62.13K
Sparks Teresa	59.13K
TAVENNER MARILYN B	45.16K
Bush John Ellis	45.16K

Bars compare reported share counts. A matching total for this share class and reporting period is unavailable, so percentages are not shown.

Source: SEC Form 4 ↗Updated Sep 29, 2026 · Quarterly data

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys11$320.8K disclosed value

Sells (SEC code S)4$243.7K disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
Nov 14, 2025Form 4	SCARBROUGH MICHAEL ANTHONYPresident and COO	SellCommon Stock, $0.001 par value	33.0K	$4.90	$161.7K	119.6K
May 30, 2025Form 4	ZORETIC RICHARD CDirector	BuyCommon Stock, $0.001 par value	8.4K	$4.08	$34.5K	68.5K
May 29, 2025Form 4	ZORETIC RICHARD CDirector	BuyCommon Stock, $0.001 par value	14.3K	$4.04	$57.6K	60.0K
May 28, 2025Form 4	ZORETIC RICHARD CDirector	BuyCommon Stock, $0.001 par value	20.0K	$4.06	$81.2K	45.8K
May 23, 2025Form 4	ZORETIC RICHARD CDirector	BuyCommon Stock, $0.001 par value	1.2K	$3.93	$4.7K	25.8K