Innovage Holding Corp.

Fiscal 2026 total revenue increased 15.9% to $989.7 million. Net loss was $0.7 million, compared with a net loss of $35.3 million in fiscal 2025, and net loss per share was $0.02 versus $0.22. Adjusted EBITDA was $94.6 million, up from $34.5 million, with adjusted EBITDA margin of 9.6% versus 3.5% implied by the prior-year figures. Year-end census was approximately 8,230 participants, up 6.3% year over year, and fourth-quarter revenue was $262.0 million. For fiscal 2027, management guided to ending census of 8,625 to 8,850, member months of 101,000 to 102,500, revenue of $1.05 billion to $1.085 billion, adjusted EBITDA of $105 million to $115 million, and de novo losses of $0.4 million to $0.8 million. Management expects Medicare rate increases of 1.5% to 2.0%, low single-digit Medicaid rate increases, and a 50-50 V22/V28 blend starting January 1.

Patrick Blair framed fiscal 2026 as an “exceptional year” and said InnovAge is entering what he calls “InnovAge 3.0,” focused on scaling the platform and broadening growth opportunities. He emphasized that quality and compliance remain nonnegotiable while the company invests in participant experience, data infrastructure, AI, and operational capacity. His tone was confident and forward-looking, but he repeatedly noted that the company will stay disciplined on capital allocation and strategic priorities.

Benjamin Adams highlighted the operating leverage in the business: external provider costs were $449.8 million, cost of care excluding D&A was $312.1 million, center-level contribution margin was $227.8 million or 23.0% of revenue, and adjusted EBITDA margin reached 9.6% for fiscal 2026. He also noted cash and cash equivalents of $97.9 million, short-term investments of $43.4 million, and total debt of $63.3 million. On guidance, he said the company expects a more challenging rate environment, but sees room to protect and modestly expand margins through utilization management, internal cost efficiencies, and continued G&A discipline.

Analysts pressed on 2027 PMPM assumptions, including the V28 transition and county/state rate dynamics. Management said Medicare assumptions reflect the move from a 10% V28 / 90% old-model mix to a 50-50 blend in January, plus a favorable impact from dementia coding under V28, while California and Colorado remain important variables because their rate processes are not yet final. Questions also focused on growth strategy and M&A; Blair said existing centers remain the priority, de novos face a high bar, and the company is more interested in the right acquisitions over the next 3 to 5 years. Management also addressed cadence, saying census growth has become more predictable, typically strong in the first half of the year, softer in the third quarter due to open enrollment competition, then normalizing in Q4.