InnovAge Holding Corp. operates in the healthcare and medical-care-facilities sector and is headquartered in Denver, Colorado. Its principal business is the delivery and management of comprehensive care for frail seniors who generally require substantial medical and supportive services. InnovAge primarily uses the Program of All-Inclusive Care for the Elderly, or ...InnovAge Holding Corp. operates in the healthcare and medical-care-facilities sector and is headquartered in Denver, Colorado. Its principal business is the delivery and management of comprehensive care for frail seniors who generally require substantial medical and supportive services. InnovAge primarily uses the Program of All-Inclusive Care for the Elderly, or PACE, a coordinated model designed to combine medical care, long-term services, social support, and care management in one integrated program. The model is intended to allow eligible seniors to remain in their homes and communities rather than move prematurely into institutional settings.
The company’s services include primary care, nursing and specialty coordination, physical and occupational therapy, speech therapy, dental care, behavioral health, psychiatric services, meals, social activities, medication and pharmacy support, and transportation. InnovAge also provides in-home services, including skilled nursing, unskilled assistance, and personal care. Transportation is offered between participants’ homes, PACE centers, and third-party medical appointments. Care managers coordinate treatment plans and help participants navigate healthcare and community resources.
InnovAge serves participants in the United States and operates PACE centers in Colorado, California, New Mexico, Pennsylvania, Florida, and Virginia. The company states that it has grown from an initial pilot operation into a multi-state platform with numerous locations. Its customer base is primarily composed of seniors who qualify for Medicare, Medicaid, or both, making government reimbursement programs central to the business model. Revenue economics therefore depend on participant enrollment, capitation payments, regulatory requirements, quality performance, medical utilization, staffing, and the company’s ability to manage the total cost of care.
From an operating perspective, the business is labor-intensive. Major cost categories include clinical and support personnel, medical services, pharmaceuticals, facility operations, transportation, food and participant activities, insurance, compliance, and administrative functions. Because PACE is an integrated-care model, InnovAge does not manufacture physical products and has no conventional product bill of materials. Its practical service BOM consists of clinical labor, facilities, technology systems, transportation resources, medical supplies, pharmacy services, and contracted provider relationships.
The supplied data identifies 2,440 full-time employees, placing the company in the 2,001-5,000 employee category. The company became publicly traded on Nasdaq in March 2021 and was formerly known as TCO Group Holdings, Inc. before adopting the InnovAge Holding Corp. name in January 2021. Patrick Blair serves as president and chief executive officer. Other reported leadership roles include finance, operations, legal, and pharmacy executives.
The supplied trailing-twelve-month indicators show approximately $1.52 billion of market capitalization and approximately $1.52 billion of enterprise value. Reported revenue-based valuation was about 1.6 times sales, while free cash flow was positive at approximately $42.5 million at the enterprise level. However, the company also reported a negative net margin of approximately 2.3%, negative return on equity, and an EBITDA multiple that was very high because EBITDA was limited. These figures indicate a business with significant scale and cash-generation potential but continued profitability and execution challenges. InnovAge’s principal strategic priorities are likely to include expanding PACE enrollment, improving care quality and regulatory compliance, controlling medical and labor costs, strengthening center utilization, and delivering sustainable earnings while preserving its mission of supporting senior independence.
YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength.
QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes.
RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three).
$853.7M
+11.8%
+5.1%
Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day.
$-30.3M
-42.1%
-377.5%
Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials.
+68.5%
+296.2%
+11.5%
Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on).
-3.5%
-14.9%
+34.6%
Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales.
-3.6%
-27.1%
-364.0%
Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock.
$26.6M
+159.4%
-23.1%
FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine.
+3.1%
+153.1%
-26.8%
Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe.
43.0%
+2.5%
-10.1%
Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking.
1.07x
-14.5%
-17.7%
Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground.
Operator: Good day, and thank you for standing by. Welcome to the InnovAge 2026 Fiscal Third Quarter Earnings Call. [Operator Instructions] Please be advised today's conference is being recorded. I would like to hand the conference over to your speaker today, Ryan Kubota. Please go ahead.
Ryan Kubota: Thank you, operator. Good afternoon, and thank you all for joining the InnovAge 2026 Fiscal Third Quarter Earnings Call. With me today is Patrick Blair, CEO; and Ben Adams, CFO. Today, after the market closed, we issued an earnings press release containing detailed information on our fiscal third quarter results. You may access the release on the Investor Relations section of our company website, innovage.com. For those listening to the rebroadcast of this call, we remind you that the remarks made herein are as of today, Tuesday, May 5, 2026, and have not been updated subsequent to this call. During our call, we will refer to certain non-GAAP measures. A reconciliation of these measures to the most directly comparable GAAP measures can be found in our earnings press release posted on our website. We will also make statements that are considered forward-looking, including those related to our 2026 fiscal year projections and guidance, future growth prospects and growth strategy, our clinical and operational value initiatives, the effects of recent legislation and federal budget cuts, including Medicare and Medicaid rate pressures, seasonality of cost trends, the status of current and future legal proceedings and regulatory actions and other expectations. Listeners are cautioned that all of our forward-looking statements involve certain assumptions that are inherently subject to risks and uncertainties that can cause our actual results to differ materially from our current expectations. We advise listeners to review the risk factors and other discussions included in our annual report on Form 10-K for fiscal year 2025 and any subsequent reports filed with the SEC, including our most recent quarterly report on Form 10-Q. After the completion of our prepared remarks, we will open the call for questions. I will now turn the call over to our CEO, Patrick Blair. Patrick?
Patrick Blair: Thank you, Ryan, and good afternoon, everyone. I'd like to begin by thanking our InnovAge colleagues, our participants and their families, our government partners and our investor community for your continued trust and support. The work our teams do every day to care for a very complex and vulnerable population is what drives our performance, and I'm proud of the progress we're making and the consistency we're beginning to demonstrate as an organization. We delivered a solid third quarter and continue to see steady momentum across the business. These results reflect stronger operating execution and the benefits of the investments we've made over the past few years to strengthen the platform. For the quarter, we reported approximately $252 million in total revenue, …