InnovAge's Fiscal First-Quarter Pre-Tax Profit Rises 153%

The Tip Desk · November 10, 2026 · 3 min read

The PACE operator posted $20.0 million of income before taxes and $0.14 a share as census reached about 8,420 participants.

InnovAge Holding Corp. (INNV), a PACE operator for frail, predominantly dual-eligible seniors, reported income before income taxes of $20.0 million for the three months ended September 30, 2026, up about 153.1% from $7.9 million a year earlier.

The result followed a $9.7 million pre-tax profit in the fiscal fourth quarter ended June 30, 2026, and a $29.8 million pre-tax loss in the fiscal third quarter ended March 31, 2026. Net income was $20.9 million. Net income attributable to InnovAge was $19.6 million, or $0.14 a share, versus $8.0 million, or $0.06 a share, a year earlier. Net income margin was 7.9%.

Total revenues were $264.8 million, up about 12.1% from $236.1 million a year earlier. Sequential revenue growth slowed to about 1.1% from the prior quarter’s $262.0 million, after 4.0% growth in the quarter before that. Capitation revenue was $264.7 million.

Chief Executive Officer Patrick Blair said continued census growth along with disciplined clinical and operational execution drove the quarter. Census was approximately 8,420 participants versus 7,890 a year earlier. Member months were approximately 25,070 versus 23,500. As of September 30, 2026, InnovAge served about 8,420 participants across 20 centers in six states. Census had been about 8,230 at June 30, 2026.

Center-level contribution margin, a non-GAAP measure, was $63.6 million, up 23.8% from $51.4 million a year earlier, and 24.0% of revenue versus 21.8%. Adjusted EBITDA was $31.3 million, an increase of $13.6 million from $17.6 million a year earlier. Adjusted EBITDA margin was 11.8% versus 7.5%. Adjusted EBITDA had been $24.3 million in the fiscal fourth quarter.

External provider costs were $115.7 million. Cost of care, excluding depreciation and amortization, was $85.5 million. Corporate, general and administrative expense was $29.1 million. Sales and marketing was $8.6 million. Operating income was $20.2 million.

The company recorded an $841,000 income-tax benefit. Interest expense, net, was $123,000. Adjusted EBITDA addbacks included $1.7 million of business-optimization costs, comprising $1.5 million of organizational restructure and executive severance and $0.2 million to close the planned Downey, California de novo center, plus $1.7 million of offering expenses related to an S-3 shelf and secondary offering.

Cash and cash equivalents were $119.3 million at September 30, 2026, plus $43.7 million in short-term investments. Debt was $61.4 million. Accounts receivable were $25.5 million. Operating cash flow was $28.7 million versus $3.9 million a year earlier.

InnovAge confirmed full fiscal 2027 guidance of census of 8,625 to 8,850, member months of 101,000 to 102,500, revenues of $1,050 million to $1,085 million, and Adjusted EBITDA of $105 million to $115 million. The company said it is unable to provide net-income guidance. Effective fiscal 2027, it said prepared remarks will emphasize year-over-year performance rather than previously reported sequential-quarter comparisons.