InnovAge (INNV) Q1 2025 earnings summary

Executive summary

• First quarter fiscal 2025 revenues reached $205.1 million, up 12.4% year-over-year and 3% sequentially, with Adjusted EBITDA of $6.5 million, a 500% increase year-over-year and margin improving to 3.2% from 0.7%.

• Census grew to approximately 7,210, reflecting 10% year-over-year and 3% sequential growth, maintaining status as the largest PACE provider in the U.S.

• Net loss narrowed to $5.7 million from $11 million year-over-year, with net loss margin improving to 2.8% from 6.0%.

• Employee engagement and participant Net Promoter Scores reached new highs, supporting strong organizational culture and participant loyalty.

• Leadership transition included the appointment of a new President and COO, Michael Scarbrough, bringing extensive healthcare experience.

Financial highlights

• Total revenues of $205.1 million increased 12.4% year-over-year, primarily due to higher member months and increased capitation rates.

• Center-level contribution margin was $34.5 million (16.8% of revenue), up from $27.9 million (15.3%) year-over-year.

• Net loss per share was $0.04 (basic and diluted) on 136 million shares.

• Ended the quarter with $39 million in cash, $46.7 million in short-term investments, and $81.3 million in total debt.

• De novo center losses were $4.1 million, mainly from new and acquired centers in California and Florida.

Outlook and guidance

• Fiscal 2025 guidance reaffirmed: ending census of 7,300–7,750, member months of 86,000–89,000, total revenue of $815–$865 million, and Adjusted EBITDA of $24–$31 million.

• De novo losses for fiscal 2025 expected in the $18–$20 million range.

• Growth expected to be linear with some seasonal slowdown in Q3; financial impact of member month growth weighted toward the back half of the year.

• Ongoing efforts to reduce eligibility processing delays and manage labor market challenges, especially in California.

• Focus remains on expanding PACE centers, improving payer capabilities, and maintaining high participant satisfaction and regulatory compliance.