InnovAge Holding Corp. (INNV) Q4 2025 Earnings Call Transcript
Revenue (Q4 FY 2025) $221.4 million, up 11% year-over-year. The increase was driven by disciplined cost management, strong medical utilization performance, and continued census growth.
Center Level Contribution Margin (Q4 FY 2025) $41.3 million, representing an 18.6% contribution margin. This reflects disciplined cost management and strong medical utilization performance.
Adjusted EBITDA (Q4 FY 2025) $11.3 million, more than doubled year-over-year, representing a 5.1% margin. This was due to disciplined cost management and operational improvements.
Revenue (FY 2025) $853.7 million, up nearly 12% year-over-year. The increase was driven by an increase in member months and capitation rates, including rate increases for both Medicare and Medicaid.
Center Level Contribution Margin (FY 2025) $153.6 million, with contribution margin expanding to approximately 18%, up 70 basis points from FY 2024. This was due to improved cost management and operational efficiencies.
Adjusted EBITDA (FY 2025) $34.5 million, above the high end of FY 2025 guidance of $31 million. Adjusted EBITDA margin nearly doubled from 2.2% in FY 2024 to approximately 4% in FY 2025, driven by operational improvements and cost management.
Census Growth (FY 2025) Approximately 7,740 participants, representing annual growth of 10.3%. This was due to strengthened enrollment strategies and new partnerships.
External Provider Costs (FY 2025) $431.2 million, a 7% increase year-over-year. The increase was driven by an increase in member months, partially offset by a decrease in cost per participant due to reduced inpatient and nursing facility utilization and transition to in-house pharmacy services.
Cost of Care (FY 2025) $268.9 million, an increase of 17.5% year-over-year. The increase was due to higher salaries, wages, benefits, and other operational costs.
Net Loss (FY 2025) $35.3 million, compared to a net loss of $23.2 million in FY 2024. The increase was due to higher operational costs and a $10.1 million accrual for a potential settlement of a securities class action lawsuit.
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InnovAge CEO Patrick Blair to Present at 2026 J.P. Morgan Healthcare Conference
- Executive Presentation: InnovAge CEO Patrick Blair is set to present at the 44th Annual J.P. Morgan Healthcare Conference on January 12, 2026, showcasing the company's leadership in providing comprehensive healthcare services to frail seniors, which is expected to attract investor interest.
- Market Leadership: As of September 30, 2025, InnovAge serves approximately 7,890 participants across 20 centers in six states, indicating its significant impact in managing high-cost healthcare, thereby further solidifying its market position.
- Innovative Care Model: InnovAge's PACE model aims to enhance the ability of seniors to live independently while reducing over-utilization of high-cost care settings, reflecting the company's commitment to improving care quality for older adults, which may attract more support from government payors.
- Investor Relations: The live webcast of the conference will provide real-time information to investors, enhancing interaction between the company and its investors, thereby increasing transparency and trust in the healthcare sector.
InnovAge Settles $27 Million Securities Fraud Class Action with Investors
- Settlement Amount Finalized: InnovAge Holding Corp. has reached a $27 million cash settlement with investors to resolve allegations of securities fraud related to its IPO materials, indicating a significant financial burden on the company due to legal issues.
- Litigation Background: The case, filed in 2021, accused InnovAge of providing false information to investors during the IPO period, leading to investor losses and reflecting serious deficiencies in corporate governance and transparency.
- Significant Stock Impact: Following the announcement of regulatory sanctions, InnovAge's stock plummeted by 78%, making it one of the five worst-performing IPOs of 2021, highlighting a severe lack of market confidence in the company's operations and compliance.
- Legal Team Recognition: The Honorable William J. Martinez of the U.S. District Court commended the plaintiffs' counsel for their exceptional performance, underscoring the importance of legal expertise and strategy in complex securities litigation.
