InnovAge (INNV) investor relations material

Business model and market positioning

• Operates a fully integrated, full-risk payor-provider platform focused on frail, medically and socially complex seniors, enabling them to live independently and avoid nursing homes.

• Delivers comprehensive, interdisciplinary care through 20 centers across 6 states, serving over 8,000 participants, with a scalable, center-based model.

• Targets high-acuity, dual-eligible seniors, leveraging a vertically integrated approach for end-to-end accountability and cost control.

• Positioned as the only scaled, multi-state PACE platform with advanced technology and operating capabilities.

• Benefits from strong bipartisan policy support and demographic tailwinds, with a large, underpenetrated addressable market of 2.3 million eligible lives and a $265B core market.

Operational performance and financial highlights

• Achieved a 13.5% revenue CAGR from 3QFY23 to 3QFY26, with total revenues rising from $172.5M to $251.9M quarterly.

• Adjusted EBITDA margin improved to 12.1% in 3QFY26, with trailing twelve-month adjusted EBITDA reaching $81.6M.

• Center-level contribution margin expanded to 21.8% as of March 31, 2026, reflecting operational leverage and efficiency gains.

• Generated $52.4M in operating cash flow (TTM), supporting ongoing investments and growth.

• Fiscal 2026 guidance projects 7,900–8,100 census, $950M–$975M revenue, and $85M–$90M adjusted EBITDA.

Care model and outcomes

• Provides high-touch, personalized care with small PCP panel sizes (<100), frequent participant interactions, and a concierge practice model.

• Serves a population with an average risk adjustment factor of 2.42, multiple chronic conditions, and high medication needs.

• Achieves superior outcomes: 10% lower inpatient admission rates, 40% lower 30-day readmission rates, and 12% lower costs compared to Medicaid benchmarks.

• Maintains voluntary disenrollment rates less than half those of Medicare Advantage plans.

• Over 92% of participants remain independent, with robust support for activities of daily living.