InnovAge (NASDAQ:INNV) Announces Quarterly Earnings Results, Beats Estimates By $0.04 EPS

InnovAge (NASDAQ:INNV) posted its earnings results on Tuesday. The company reported $0.08 earnings per share for the quarter, topping analysts’ consensus estimates of $0.04 by $0.04, FiscalAI reports. The company had revenue of $239.71 million during the quarter, compared to analyst estimates of $228.30 million. InnovAge had a negative return on equity of 7.02% and a negative net margin of 1.96%.

Here are the key takeaways from InnovAge’s conference call:

• Reported strong Q2 results with $239.7M revenue, $22.2M Adjusted EBITDA and $11.8M net income, achieving a 9.2% Adjusted EBITDA margin (the company’s 8%–9% target) for the first time.
• Raised full‑year fiscal 2026 guidance to 92,900–95,700 member months, $925M–$950M revenue, and $70M–$75M Adjusted EBITDA, citing stronger first‑half performance and improved visibility.
• Operational improvements—better Medicaid redeterminations, reinstatement of previously disenrolled participants, improved inpatient/SNF utilization management, and reduced pharmacy costs from in‑house pharmacy—drove census growth to ~8,010 participants (+7.1% YoY) and better margins.
• Regulatory and rate risk remains: CMS’s Medicare Advantage rate notice and the phased‑in V28 risk model changes could affect PACE payments despite the mitigating frailty adjuster, creating uncertainty around future Medicare‑related revenue.
• Near‑term headwinds include typical Q3 seasonality and a severe flu season (expected to pressure margins), plus ongoing de‑novo center startup losses (Q2 de‑novo losses $4.7M; FY26 expected $11.5M–$13.5M) that will weigh on results.

InnovAge Trading Down 0.7%

Shares of InnovAge stock opened at $5.66 on Wednesday. InnovAge has a 12-month low of $2.60 and a 12-month high of $6.26. The firm’s 50 day simple moving average is $5.50 and its two-hundred day simple moving average is $4.86. The company has a current ratio of 1.17, a quick ratio of 1.17 and a debt-to-equity ratio of 0.25. The firm has a market capitalization of $767.95 million, a price-to-earnings ratio of -43.54 and a beta of 0.57.

Wall Street Analysts Forecast Growth

Several equities analysts have issued reports on the company. Weiss Ratings reiterated a “sell (d-)” rating on shares of InnovAge in a research note on Thursday, January 22nd. Wall Street Zen raised shares of InnovAge to a “strong-buy” rating in a report on Saturday, November 8th. Two analysts have rated the stock with a Sell rating, According to MarketBeat, the company has an average rating of “Sell” and an average target price of $5.00.

Insider Buying and Selling at InnovAge

In other InnovAge news, COO Michael Anthony Scarbrough sold 33,000 shares of the business’s stock in a transaction dated Friday, November 14th. The stock was sold at an average price of $4.90, for a total transaction of $161,700.00. Following the sale, the chief operating officer owned 119,617 shares in the company, valued at approximately $586,123.30. The trade was a 21.62% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. 1.00% of the stock is owned by company insiders.

Institutional Investors Weigh In On InnovAge

A number of large investors have recently bought and sold shares of the company. Bank of America Corp DE raised its position in InnovAge by 42.4% during the 4th quarter. Bank of America Corp DE now owns 19,945 shares of the company’s stock worth $78,000 after buying an additional 5,936 shares during the last quarter. JPMorgan Chase & Co. increased its stake in shares of InnovAge by 26.0% in the third quarter. JPMorgan Chase & Co. now owns 15,993 shares of the company’s stock worth $83,000 after acquiring an additional 3,305 shares during the period. Jane Street Group LLC increased its stake in shares of InnovAge by 18.9% in the first quarter. Jane Street Group LLC now owns 46,827 shares of the company’s stock worth $140,000 after acquiring an additional 7,429 shares during the period. Jacobs Levy Equity Management Inc. acquired a new position in InnovAge during the first quarter valued at $166,000. Finally, Strs Ohio purchased a new stake in InnovAge in the first quarter valued at $186,000. Hedge funds and other institutional investors own 12.26% of the company’s stock.

InnovAge Company Profile

InnovAge Holdings, Inc (NASDAQ:INNV) is a healthcare services company that specializes in caring for seniors through the Program of All-Inclusive Care for the Elderly (PACE). Designed for individuals who are eligible for both Medicare and Medicaid, the PACE model integrates medical care, social services and long-term care—delivered primarily in participants’ homes and community-based centers. InnovAge’s approach centers on interdisciplinary care teams that coordinate everything from primary and specialty medical services to nutritional counseling and recreational activities.

The company’s core offerings include comprehensive in-home assessments, physician and nursing services, physical and occupational therapy, prescription medication management, and transportation to medical appointments.