InnovAge lifts fiscal 2026 revenue 16% to $989.7m and guides past $1bn
InnovAge Holding Corp. reported total revenue of $989.7m for the fiscal year ended June 30, 2026, up 15.9% from $853.7m a year earlier, according to results the Nasdaq-listed company issued on Sept. 8. The full-year figure leaves InnovAge just short of the $1bn mark it has guided past for the coming year.
The company manages care for what its release describes as high-cost, frail and predominantly dual-eligible seniors through the Program of All-Inclusive Care for the Elderly, or PACE. As of June 30 it served approximately 8,230 participants across 20 centres in six states, per the same release.
The bottom line moved sharply. On a GAAP basis InnovAge narrowed its net loss for the year to $0.7m, against a $35.3m loss in fiscal 2025. Adjusted EBITDA, a non-GAAP measure, came in at $94.6m versus $34.5m, an increase of $60.1m, with the adjusted EBITDA margin widening 5.5 percentage points to 9.6%.
The fourth quarter carried the same shape. Revenue for the three months to June 30 was $261.9m, up 18.3% from $221.4m. GAAP net income was $9.8m against a $5.0m loss in the comparable quarter, and adjusted EBITDA was $24.3m versus $11.3m.
Volume did much of the work. Census rose to approximately 8,230 participants from 7,740, an increase of about 490. Total member months — which the company defines as the number of participants multiplied by the months in the period during which each was enrolled — rose to approximately 96,050 from 89,130.
Unit economics improved alongside the volume. Centre-level contribution margin reached $227.8m for the year, a 48.3% increase, and rose to 23.0% of revenue from 18.0%. In a capitated model, where the payment per participant is fixed in advance, that spread between the capitation rate and the cost of delivering care is effectively the whole business.
Weighing against the operating picture is a substantial litigation charge. The release states that for the year ended June 30, 2026 the line "includes an aggregate $52.4 million of accrued loss for potential resolutions or paid settlements," and that for the fourth quarter it "includes $2.4 million of accrued loss for potential resolutions." Strip that accrual out and the year looks materially different at the GAAP line; leave it in and InnovAge is roughly at break-even.
The company links those charges to litigation by stockholders, civil investigative demands, and a settlement with its former pharmacy provider. Accrued loss is an estimate rather than a settled bill, so the eventual cash outcome on the unresolved items could differ from the amount booked, in either direction. The release gives no resolution timetable for the civil investigative demands.
The results also carry an impairment tied to a previously planned de novo centre in Downey, California, indicating that project is no longer proceeding as designed. For a PACE operator, de novo centres are the principal route to census growth beyond same-centre fill, so cancelled openings matter to the medium-term growth arithmetic.
Liquidity looks comfortable relative to the balance sheet. InnovAge held $97.9m of cash and cash equivalents plus $43.4m of short-term investments at June 30, against total debt of $48.1m, made up of $45.5m of long-term borrowings net of issuance costs and $2.5m due within a year. Shares outstanding stood at 136,020,049 at the year end.
For fiscal 2027 the company guided to total revenue of $1.05bn to $1.085bn, adjusted EBITDA of $105m to $115m, census of 8,625 to 8,850 participants, and total member months of 101,000 to 102,500. At the midpoints that implies revenue growth of about 7.9% and adjusted EBITDA growth of about 16%, a slower top line than fiscal 2026's 15.9% but continued margin expansion. The guidance table covers census, member months, revenue and adjusted EBITDA; it does not include a GAAP net income or loss range.
Chief executive Patrick Blair described fiscal 2026 as an exceptional year that reflected significant progress in strengthening the company, and said InnovAge enters fiscal 2027 in a strong position with a durable foundation to serve more seniors and deliver high-quality care, according to the release. The risks he did not enumerate are the familiar ones for the model: medical cost inflation lands on the provider rather than the payer, growth depends on filling and opening centres, and the outcome of the outstanding civil investigative demands is not set out in the release beyond the accrual already taken.
