Quick Verdict
InnovAge Holding Corp. Q4 Fiscal 2026 Earnings were announced, with InnovAge reporting fiscal Q4 2026 EPS of $0.06, missing the roughly $0.07 consensus estimate, while revenue of $261.95 million materially exceeded the approximately $238.33 million expectation. Shares fell 2.14% in regular trading before the release but rose about 9.03% after hours, reflecting investor approval of profitability gains and FY2027 guidance.
About InnovAge Holding Corp.
InnovAge Holding Corp. (Nasdaq: INNV) is a Denver, Colorado–headquartered healthcare-services company that operates the Program of All-Inclusive Care for the Elderly (PACE) model. The company coordinates comprehensive, capitated care for medically complex, predominantly Medicare-and-Medicaid dual-eligible seniors, with the aim of allowing participants to remain safely at home rather than relying on higher-cost institutional care.
The business traces its roots to May 2007, while InnovAge Holding Corp. and certain subsidiaries were formed as for-profit entities in May 2016; it became a public company in March 2021. As of June 30, 2026, InnovAge served approximately 8,230 participants through 20 PACE centers across six states: California, Colorado, Florida, New Mexico, Pennsylvania, and Virginia. It had approximately 2,440 employees, according to company-profile data.
Based on post-results trading data, InnovAge’s market capitalization was approximately $1.43 billion. Its P/E ratio was not meaningful because the company recorded a fiscal-year net loss, and it did not report a dividend yield; the company also states that it does not expect to pay cash dividends in the foreseeable future, preferring to use capital for growth, debt reduction, and possible repurchases.
Top Financial Highlights
- Fiscal Q4 2026 total revenue reached $261.95 million, up 18.3% from $221.42 million in Q4 fiscal 2025.
- Full-year fiscal 2026 revenue increased 15.9% to $989.71 million, compared with $853.70 million in fiscal 2025.
- Q4 net income was $9.78 million, versus a $5.01 million net loss in the prior-year quarter.
- Net income attributable to InnovAge was $8.29 million, or $0.06 per diluted share, compared with a $0.79 million attributable loss, or $0.01 per share, a year earlier.
- Fiscal-year net loss narrowed sharply to $0.68 million, from $35.34 million in fiscal 2025.
- Fiscal-year net loss attributable to InnovAge improved to $2.54 million, or $0.02 per share, versus $30.31 million, or $0.22 per share, in fiscal 2025.
- Q4 capitation revenue—InnovAge’s principal PACE revenue stream—was $261.51 million, compared with $221.06 million in Q4 fiscal 2025.
- Q4 other service revenue was $0.44 million, compared with $0.36 million in the year-earlier period.
- Q4 center-level contribution margin increased to $62.56 million, up from $41.29 million; margin expanded to 23.9% from 18.6%.
- Q4 Adjusted EBITDA rose to $24.28 million, compared with $11.33 million; Adjusted EBITDA margin improved to 9.3% from 5.1%. Adjusted EBITDA is a non-GAAP measure.
- Fiscal-year Adjusted EBITDA climbed to $94.57 million, from $34.46 million, while the Adjusted EBITDA margin expanded to 9.6% from 4.0%.
- Net cash provided by operating activities doubled to $64.71 million in fiscal 2026 from $32.87 million in fiscal 2025.
- InnovAge ended the year with $97.89 million in cash and cash equivalents, plus $43.44 million in short-term investments.
- Total debt, including senior secured term-loan debt and finance-lease obligations, was $63.3 million at quarter-end, according to management’s earnings-call commentary.
- Fiscal 2027 guidance calls for revenue of $1.05 billion to $1.085 billion, Adjusted EBITDA of $105 million to $115 million, ending census of 8,625 to 8,850, and total member months of 101,000 to 102,500.
Beat or Miss?
InnovAge delivered a notable revenue beat, but its reported quarterly EPS fell modestly short of consensus. The difference is important: the company generated more revenue than expected, while profitability per share was slightly below analyst projections.
| Metric | Reported | Difference/Analysis |
| Q4 EPS | $0.06 | Missed consensus of about $0.07 by roughly $0.01 per share. |
| Q4 revenue | $261.95 million | Exceeded consensus of about $238.33 million by approximately $23.62 million, or nearly 10%. |
| Q4 net income | $9.78 million | Reversed a $5.01 million loss in Q4 fiscal 2025. |
| Q4 Adjusted EBITDA | $24.28 million | More than doubled from $11.33 million in the prior-year quarter. |
| FY2027 revenue guidance | $1.05 billion–$1.085 billion | Implies approximately 6.1% to 9.6% growth from fiscal 2026 revenue of $989.71 million. |
| FY2027 Adjusted EBITDA guidance | $105 million–$115 million | Suggests further profitability growth from $94.57 million in fiscal 2026. |
The quarter’s revenue outperformance was supported by higher member months and capitation rates. Management noted that Q4 revenue also benefited from Medicare risk-adjustment reconciliation and a full-year Colorado Medicaid rate true-up recognized during the period.
What Leadership Is Saying
“Fiscal 2026 was an exceptional year for InnovAge and a key milestone in the transformation of the company… We’re now entering what we think of as InnovAge 3.0… about scaling its capabilities and capitalizing on the opportunity in front of us.”
— Patrick Blair, Chief Executive Officer
“We ended the quarter with $97.9 million in cash and cash equivalents, plus $43.4 million in short-term investments… We are projecting total revenue in the range of $1.05 billion-$1.085 billion, and adjusted EBITDA in the range of $105 million-$115 million.”
— Ben Adams, Chief Financial Officer
Historical Performance
| Category | Q4 Fiscal 2026 | Q4 Fiscal 2025 | Change (%) |
| Revenue | $261.95 million | $221.42 million | 18.30% |
| Net income (loss) | $9.78 million | $(5.01) million | Turned profitable |
| Operating income (loss) | $10.15 million | $(2.15) million | Turned profitable |
| Total expenses | $251.81 million | $223.57 million | 12.60% |
| Center-level contribution margin | $62.56 million | $41.29 million | 51.50% |
| Adjusted EBITDA | $24.28 million | $11.33 million | 114.40% |
| Adjusted EBITDA margin | 9.30% | 5.10% | +420 bps |
(Source: InnovAge’s fiscal Q4 2026 financial results. Center-level contribution margin and Adjusted EBITDA are non-GAAP measures.)
Full-Year Comparison
| Category | Fiscal 2026 | Fiscal 2025 | Change (%) |
| Revenue | $989.71 million | $853.70 million | 15.90% |
| Net income (loss) | $(0.68) million | $(35.34) million | Loss narrowed 98.1% |
| Operating income (loss) | $2.62 million | $(29.76) million | Turned profitable |
| Operating cash flow | $64.71 million | $32.87 million | 96.90% |
| Center-level contribution margin | $227.76 million | $153.64 million | 48.30% |
| Adjusted EBITDA | $94.57 million | $34.46 million | 174.50% |
| Adjusted EBITDA margin | 9.60% | 4.00% | +560 bps |
The fiscal-year turnaround was substantial at the operating level. However, GAAP profitability remained constrained by litigation and settlement costs: InnovAge recorded approximately $57.0 million in litigation and settlement-related expenses in fiscal 2026, including $52.4 million in accrued amounts for potential resolutions or settlements.
Competitor Context
InnovAge does not disclose a directly comparable peer set in its earnings release, and PACE-focused providers do not generally offer standardized public quarterly financial disclosure comparable with a listed healthcare-services company. Therefore, a strict competitor Q4 revenue/net-income/operating-expense table cannot be prepared reliably from the company’s release alone.
The most useful sector benchmark is InnovAge’s own operating model: it describes itself as the largest U.S. PACE provider by participants served, with approximately 8,230 participants across 20 centers at fiscal year-end. Its primary competitive determinants are enrollment growth, retention, capitation-rate development, clinical outcomes, care-cost management, regulatory performance, labor availability, and center utilization—not merely reported revenue.
| Category | InnovAge FY2026 | InnovAge FY2025 | Change (%) |
| Participants served at year-end | Approximately 8,230 | Approximately 7,740 | 6.30% |
| Member months | Approximately 96,050 | Approximately 89,130 | 7.80% |
| Capitation revenue | $988.38 million | $852.35 million | 16.00% |
| External provider costs | $449.84 million | $431.15 million | 4.30% |
| Cost of care, excluding D&A | $312.10 million | $268.91 million | 16.10% |
| Center-level contribution margin | $227.76 million | $153.64 million | 48.30% |
The company’s margin expansion appears to have been helped by revenue growth that outpaced external-provider-cost growth, lower cost per participant for certain utilization categories, and pharmacy-related benefits from transitioning to in-house services.
How the Market Reacted?
INNV closed the September 8 regular session at $10.52, down 2.14% before the results. After the earnings release and conference call, shares reportedly rose to $11.47 in after-hours trading, a gain of approximately 9.03% from the regular-session close
The next session showed continued investor interest: InnovAge shares were reported around $11.41, while KeyCorp raised its price target to $14 from $13 and maintained an overweight rating. That favorable reaction should be balanced against the broader analyst picture, which was still characterized as a “Reduce” consensus with an approximately $10.50 average target in contemporaneous market data
