Start here if you're new
what it is
InnovAge runs care centers that manage older adults' medical needs and bills under Medicare and Medicaid.
how it gets paid
Last year Innovage made $854M in revenue. participant care services was the main engine at $0.59B, or 69% of sales.
why it's growing
Revenue grew 11.8% last year. Revenue was up 98% vs. prior year. Gross margin was 21.9%.
what just happened
Quarterly revenue hit $476M, while EPS came in at $0.14.
At a glance
B balance sheet — gets the job done, barely
-$0.22 fy2025 eps est
$6M fy2024 rev est
3.1% operating margin
0.8 beta
xvary composite: 55/100 — below average
What they do
InnovAge runs care centers that manage older adults' medical needs and bills under Medicare and Medicaid.
InnovAge gets fixed checks from Medicare and Medicaid. That is jargon for government payors → the people paying the bill → so your revenue is tied to contracts, not one-off sales. You also get 7,740 participants across 20 centers in 6 states. Leaving that setup is painful when care, transport, and doctors are all bundled.
How they make money
$854M
annual revenue · their business grew +11.8% last year
participant care services
$0.59B
clinical services
$0.10B
home support services
$0.09B
other service revenue
$0.07B
The products that matter
all-inclusive senior care
PACE Program
$239.6M · 99.96% of quarterly revenue
it's effectively the whole company in revenue terms. this segment grew 14.7% from last year and depends on fixed monthly payments covering unpredictable care costs.
core engine
ancillary service revenue
Other Service Revenue
$0.1M · 0.04% of quarterly revenue
this exists, but it does not move the investment case. when one line is 0.04% of revenue, the story is concentration.
not material
Key numbers
$854M
annual revenue
That is $854M of sales. You are looking at a small company with a big reimbursement lever.
3.1%
op margin
For every $100 in revenue, InnovAge keeps $3.10 before taxes and interest.
7,740
participants
7,740 participants across 20 centers is the customer base. More participants spread fixed costs.
$83M
long-term debt
Debt equals 7% of capital, so the balance sheet is workable, but not loose.
Financial health
B
strength
- balance sheet grade B — adequate — nothing special
- risk rank 2 — safer than 80% of stocks
- price stability 5 / 100
- long-term debt $83M (7% of capital)
B — functional but not a standout on the balance sheet.
Total return vs. market
Return history isn't available for INNV right now.
source: institutional data · return history unavailable
What just happened
beat estimates
Quarterly revenue hit $476M, while EPS came in at $0.14.
Revenue was up 98% vs. prior year. Gross margin was 21.9%, so the business kept 21.9 cents of every dollar before overhead.
$214M
revenue
$0.14
eps
21.9%
gross margin
gross margin
21.9% is the number that matters. It shows how much of each revenue dollar stays after direct care costs.
source: company earnings report, 2026
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What could go wrong
the #1 risk is medicaid reimbursement timing and rate resets inside the PACE model.
med
reimbursement delays hit almost the entire business
Capitation revenue was $239.6M of the latest $239.7M quarter. When states delay processing or lag on rate updates, the pressure lands on nearly every revenue dollar.
Impact: cash flow and reported revenue can wobble even if demand for care does not.
med
medical cost inflation can erase a 3.1% margin fast
This is a fixed-payment model. INNV gets paid one amount per participant and absorbs the care costs. A modest cost spike matters when operating margin is only 3.1%.
Impact: a profitable quarter can turn into a loss without much warning.
med
regulatory scrutiny is not optional here
PACE is a government-regulated model serving a vulnerable population. Compliance issues, audits, or enrollment disruptions would hit growth and credibility at the same time.
Impact: slower participant growth across 18 centers would weaken the whole recovery story.
With $239.6M of the latest quarter tied to capitation revenue, this is a reimbursement-and-execution story first and a growth story second.
source: institutional data · regulatory filings · risk analysis
Pay attention to
margin watch
operating margin after 3.1%
A positive margin matters. A durable one matters more. If 3.1% slips back toward zero, this quarter's recovery starts looking temporary.
growth
participant growth versus rate growth
Revenue rose 14.7% in the latest quarter. You want to know how much came from more participants and how much came from reimbursement increases.
calendar
next guidance check-in
Management raised the full-year outlook. The next report needs to show that the raise was based on operating momentum, not one clean quarter.
risk
state reimbursement and audit friction
Because capitation is 99.96% of revenue, any disruption in state approvals, rate settlements, or compliance reviews matters immediately.
Analyst rankings
consensus target
$7.00
below the current $8.73 share price. in human-speak, the small analyst group covering this name is not chasing the rally.
beta
0.8
The stock has moved a bit less than the market by this measure. That sounds calm until you look at the $3–$11 52-week range.
risk rank
2
Safer than 80% of stocks on this framework. The quiet part: business-model risk and share-price volatility are not always the same thing.
price stability
5 / 100
Very low stability. Translation: the fundamentals may be steadier than the chart, but the chart has not been your friend.
source: institutional data
Institutional activity
institutional ownership data for INNV is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$9
current price
n/a
target midpoint · n/a from current
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