Fourth quarter and fiscal year 2026
Filed Sep 8, 2026InnovAge reported fiscal 2026 revenue of $989.7 million and Adjusted EBITDA of $94.6 million, while fourth-quarter net income attributable to InnovAge Holding Corp. was $8.3 million.
Revenue, Center-level Contribution Margin and Adjusted EBITDA increased materially in fiscal 2026, and the fourth quarter returned to GAAP profitability. Fiscal-year net income remained a loss of $(683) thousand, including $56,966 thousand of litigation costs and settlements added back in Adjusted EBITDA.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Q4 total revenues (in thousands)GAAP | $ 261,951 | – | – |
| Fiscal 2026 total revenues (in thousands)GAAP | $ 989,707 | – | increased approximately 15.9% |
| Q4 capitation revenue (in thousands)GAAP | $ 261,511 | – | – |
| Fiscal 2026 capitation revenue (in thousands)GAAP | $ 988,384 | – | – |
| Q4 other service revenue (in thousands)GAAP | 440 | – | – |
| Fiscal 2026 other service revenue (in thousands)GAAP | 1,323 | – | – |
| Q4 external provider costs (in thousands)GAAP | 115,737 | – | – |
| Fiscal 2026 external provider costs (in thousands)GAAP | 449,843 | – | – |
| Q4 cost of care, excluding depreciation and amortization (in thousands)GAAP | 83,652 | – | – |
| Fiscal 2026 cost of care, excluding depreciation and amortization (in thousands)GAAP | 312,100 | – | – |
| Q4 sales and marketing (in thousands)GAAP | 9,933 | – | – |
| Fiscal 2026 sales and marketing (in thousands)GAAP | 34,361 | – | – |
| Q4 corporate, general and administrative (in thousands)GAAP | 33,077 | – | – |
| Fiscal 2026 corporate, general and administrative (in thousands)GAAP | 166,489 | – | – |
| Q4 depreciation and amortization (in thousands)GAAP | 6,356 | – | – |
| Fiscal 2026 depreciation and amortization (in thousands)GAAP | 21,142 | – | – |
| Q4 impairments and loss on assets held for sale (in thousands)GAAP | 3,050 | – | – |
| Fiscal 2026 impairments and loss on assets held for sale (in thousands)GAAP | 3,154 | – | – |
| Q4 operating income (loss) (in thousands)GAAP | 10,146 | – | – |
| Fiscal 2026 operating income (loss) (in thousands)GAAP | 2,618 | – | – |
| Q4 interest expense, net (in thousands)GAAP | (772) | – | – |
| Fiscal 2026 interest expense, net (in thousands)GAAP | (4,258) | – | – |
| Q4 other income, net (in thousands)GAAP | 293 | – | – |
| Fiscal 2026 other income, net (in thousands)GAAP | 1,906 | – | – |
| Q4 income (loss) before income taxes (in thousands)GAAP | 9,667 | – | – |
| Fiscal 2026 income (loss) before income taxes (in thousands)GAAP | 266 | – | increased by 100.8% |
| Q4 provision for income taxes (in thousands)GAAP | (116) | – | – |
| Fiscal 2026 provision for income taxes (in thousands)GAAP | 949 | – | – |
| Q4 net income (loss) (in thousands)GAAP | 9,783 | – | – |
| Fiscal 2026 net income (loss) (in thousands)GAAP | (683) | – | decreased 98% |
| Q4 net income (loss) marginGAAP | 3.7 % | – | – |
| Fiscal 2026 net income (loss) marginGAAP | (0.1) % | – | increased 4.1 percentage points |
| Q4 net income (loss) attributable to InnovAge Holding Corp. (in thousands)GAAP | $ 8,287 | – | – |
| Fiscal 2026 net income (loss) attributable to InnovAge Holding Corp. (in thousands)GAAP | $ (2,537) | – | – |
| Q4 net loss per share - basicGAAP | $ 0.06 | – | – |
| Q4 net loss per share - dilutedGAAP | $ 0.06 | – | – |
| Fiscal 2026 net loss per share - basicGAAP | $ (0.02) | – | – |
| Fiscal 2026 net loss per share - dilutedGAAP | $ (0.02) | – | – |
| Q4 Center-level Contribution Margin (in thousands)non-GAAP | $ 62,562 | – | – |
| Fiscal 2026 Center-level Contribution Margin (in thousands)non-GAAP | $ 227,764 | – | increased 48.3% |
| Q4 Center-level Contribution Margin as a percent of revenuenon-GAAP | 23.9 % | – | – |
| Fiscal 2026 Center-level Contribution Margin as a percent of revenuenon-GAAP | 23.0 % | – | increased 5.0 percentage points |
| Q4 Adjusted EBITDA (in thousands)non-GAAP | 24,282 | – | – |
| Fiscal 2026 Adjusted EBITDA (in thousands)non-GAAP | 94,571 | – | an increase of $60.1 million |
| Q4 Adjusted EBITDA marginnon-GAAP | 9.3 % | – | – |
| Fiscal 2026 Adjusted EBITDA marginnon-GAAP | 9.6 % | – | an increase of 5.5 percentage points |
| Fiscal 2026 censusother | approximately 8,230 participants | – | – |
| Fiscal 2026 member monthsother | approximately 96,050 | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| PACE, fiscal 2026Capitation revenue was $ 988,384 and other service revenue was 1,066. | $ 989,450 (in thousands) | – | – |
| All other, fiscal 2026Center-level Contribution Margin from this segment was attributable to the Senior Housing operating segment. | 257 (in thousands) | – | – |
| PACE, Q4 2026Capitation revenue was $ 261,511 and other service revenue was 440. | $ 261,951 (in thousands) | – | – |
| All other, Q4 2026The filing reports no All other revenue for the quarter. | — | – | – |
Full Fiscal Year 2027 outlook
- Revenue$ 1,050 to $ 1,085 (dollars in millions)
- NoteCensus: 8,625 to 8,850
- NoteTotal Member Months: 101,000 to 102,500
- NoteAdjusted EBITDA: 105 to 115 (dollars in millions), non-GAAP
Capital returns
- Repurchase of equity securities: — for fiscal 2026; $(7,321) for fiscal 2025 (in thousands).
- No dividend was reported.
What drove it
- Fiscal 2026 total revenues increased approximately 15.9% to $989.7 million.
- Fiscal 2026 Center-level Contribution Margin increased 48.3% to $227.8 million and its margin increased 5.0 percentage points to 23.0%.
- Fiscal 2026 Adjusted EBITDA increased by $60.1 million to $94.6 million and Adjusted EBITDA margin increased 5.5 percentage points to 9.6%.
- Fiscal 2026 census was approximately 8,230 participants and member months were approximately 96,050.
- Q4 2026 operating income was 10,146 (in thousands), compared with an operating loss of (2,150) (in thousands) in Q4 2025.
Concerns
- Fiscal 2026 net income (loss) was $(683) thousand and net income (loss) attributable to InnovAge Holding Corp. was $(2,537) thousand.
- Fiscal 2026 corporate, general and administrative expense was 166,489 (in thousands), compared with 122,058 (in thousands) in fiscal 2025.
- Litigation costs and settlements added back in fiscal 2026 Adjusted EBITDA were 56,966 (in thousands), including an aggregate $52.4 million of accrued loss for potential resolutions or paid settlements.
- Q4 2026 included 3,050 (in thousands) of impairments and loss on assets held for sale, including impairment charges related to a previously planned de novo center in Downey, California.
- The company identified risks including PACE reimbursement-rate reductions, government funding reductions, labor shortages, the risk that service costs exceed compensation, audits and investigations, and legal proceedings.
What to watch
- Execution against full fiscal year 2027 guidance for census of 8,625 to 8,850 and Total Member Months of 101,000 to 102,500.
- Execution against full fiscal year 2027 total revenue guidance of $ 1,050 to $ 1,085 (dollars in millions) and Adjusted EBITDA guidance of 105 to 115 (dollars in millions).
- Whether the company sustains Center-level Contribution Margin and Adjusted EBITDA margins following fiscal 2026 levels of 23.0% and 9.6%, respectively.
- Future litigation costs, settlements and accrued losses, which were a material Adjusted EBITDA reconciliation item in fiscal 2026.
- PACE reimbursement, government payor funding and the cost of providing services under PACE contracts.
Balance sheet and cash flow
- Cash and cash equivalents: $ 97,891 as of June 30, 2026, compared with $ 64,129 as of June 30, 2025 (in thousands).
- Short-term investments: 43,435 as of June 30, 2026, compared with 41,775 as of June 30, 2025 (in thousands).
- Long-term debt, net of debt issuance costs: 45,521 as of June 30, 2026, compared with 57,464 as of June 30, 2025 (in thousands).
- Current portion of long-term debt: 2,536 as of June 30, 2026, compared with 2,250 as of June 30, 2025 (in thousands).
- Net cash provided by operating activities: 64,714 for fiscal 2026, compared with 32,866 for fiscal 2025 (in thousands).
- Purchases of property and equipment: (14,309) for fiscal 2026, compared with (6,263) for fiscal 2025 (in thousands).
- Net cash used in investing activities: (12,340) for fiscal 2026, compared with (5,550) for fiscal 2025 (in thousands).
- Net cash used in financing activities: (18,531) for fiscal 2026, compared with (19,082) for fiscal 2025 (in thousands).
- Cash, cash equivalents and restricted cash, end of period: $ 97,901 for fiscal 2026, compared with $ 64,140 for fiscal 2025 (in thousands).
Analysis
InnovAge closed fiscal 2026 with revenue of $989.7 million, up approximately 15.9% from $853.7 million, while census reached approximately 8,230 participants and member months reached approximately 96,050. The fourth quarter produced $261,951 thousand of total revenues, compared with $221,417 thousand in the prior-year quarter and $251,943 thousand in the quarter ended March 31, 2026. PACE represented $989,450 thousand of fiscal-year revenue, while the All other segment contributed 257 thousand.
The core operating measures improved substantially. Fiscal-year Center-level Contribution Margin rose to $227.8 million from $153.6 million, and the corresponding margin increased to 23.0% from 18.0%. Adjusted EBITDA increased to $94.6 million from $34.5 million, with margin increasing to 9.6% from 4.0%. In the fourth quarter, Center-level Contribution Margin was $62,562 thousand and Adjusted EBITDA was $24,282 thousand, compared with $41,287 thousand and $11,326 thousand, respectively, a year earlier.
GAAP profitability improved but was not fully established for the year. Fourth-quarter operating income was $10,146 thousand and net income was $9,783 thousand, compared with an operating loss of $(2,150) thousand and net loss of $(5,009) thousand in the prior-year quarter. Fiscal-year operating income was $2,618 thousand, but fiscal-year net loss was $(683) thousand. The reconciliation shows $56,966 thousand of litigation costs and settlements added back to fiscal 2026 Adjusted EBITDA, including an aggregate $52.4 million of accrued loss for potential resolutions or paid settlements.
Cash generation strengthened, with net cash provided by operating activities of $64,714 thousand versus $32,866 thousand in fiscal 2025. Cash and cash equivalents ended fiscal 2026 at $97,891 thousand, while long-term debt, net of debt issuance costs, was $45,521 thousand. The company also made $71,282 thousand of principal payments on long-term debt and had $60,082 thousand of proceeds from long-term debt during the year.
For full fiscal year 2027, InnovAge guided to census of 8,625 to 8,850, Total Member Months of 101,000 to 102,500, total revenues of $ 1,050 to $ 1,085 (dollars in millions), and Adjusted EBITDA of 105 to 115 (dollars in millions). The company did not provide net income guidance or an Adjusted EBITDA reconciliation, citing the difficulty of forecasting items including effective tax-rate variation, acquisition activity expenses and other one-time or exceptional items.
Management, verbatim
Fiscal 2026 was an exceptional year for InnovAge and reflects the significant progress we have made strengthening the company.
Patrick Blair, Chief Executive Officer of InnovAge
We enter Fiscal 2027 in a strong position, with a durable foundation to serve more seniors and to deliver high-quality care. We remain focused on disciplined execution and creating sustainable long-term value for all of our stakeholders.
Patrick Blair, Chief Executive Officer of InnovAge
Not in the filing
stated, not guessed- Prior outlook was not provided, so comparison of actual results with prior guidance is unavailable.
- Gross margin was not reported.
- Gross-margin guidance was not reported.
- Operating-expense guidance was not reported.
- Tax-rate guidance was not reported.
- Free cash flow was not reported.
- Dividend amount and dividend policy were not reported.
- A quantitative year-over-year or quarter-over-quarter change was not printed for several individual income-statement line items and segment revenues.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.