InnovAge (INNV) investor relations material

Executive summary

• Q1 FY27 revenue was $264.8M, net income $20.9M and Adjusted EBITDA $31.3M; census rose 6.7% YoY to 8,420.

• Census and profitability grew together; management cited 13 consecutive quarters of progress while noting quarterly results can vary with rates and utilization.

Financial highlights

• Revenue rose 12.1% YoY from $236.1M; capitation revenue increased 12.3%, with $13.2M from higher rates and $15.7M from member-month growth.

• Net income was $20.9M vs. $7.7M; net income attributable to common shareholders was $19.6M vs. $8.0M, and diluted EPS was $0.14 vs. $0.06.

• Adjusted EBITDA rose to $31.3M from $17.6M; de novo losses were $0.1M vs. $4.3M YoY.

• External provider costs increased 6.3% to $115.7M and cost of care, excluding D&A, rose 12.7% to $85.5M; corporate G&A declined 3.7% to $29.1M.

• Operating cash flow was $28.7M vs. $3.9M; net income tax benefit was $0.8M, with an effective tax rate of (4.2)%.

Outlook and guidance

• FY27 guidance reaffirmed: ending census 8,625–8,850; member months 101,000–102,500; revenue $1.05B–$1.085B; Adjusted EBITDA $105M–$115M; de novo losses $0.4M–$0.8M.

• Expected Medicare rate increase is 1.5%–2% effective January 1; guidance incorporates the V28 phase-in.

• Guidance reflects Q1 strength, Q2 moderation, Q3 rate resets and cost changes, and Q4 stabilization.

• Provider cost increases are anticipated beginning in H2 FY27; no material increase occurred in Q1 or was expected in Q2, with clinical and operational initiatives intended to offset pressure.

• Colorado rate reductions and potential California Medicaid rate pressure are expected to affect FY27 margins; two legacy Pennsylvania centers were due to convert to alternate care setting centers in Q2.