InnovAge (INNV) Q1 2026 earnings summary

Executive summary

• Total revenue for Q1 FY2026 was $236.1 million, up 15.1% year-over-year, with Adjusted EBITDA more than doubling and census reaching an all-time high of 7,890 participants.

• Achieved positive net income for the first time since 2021, with net income of $7.7 million or $8.0 million, reversing a prior year loss, driven by disciplined execution, growth across centers, joint ventures, and M&A.

• Strong medical cost management and better-than-expected census growth, aided by Medicaid redetermination cleanup and momentum in new Florida centers.

• Leadership transitions included new Chief Medical Officer and Chief Administrative Officer, with organizational streamlining and the announced departure of the President/COO.

• Participant satisfaction remains high, with 90% overall satisfaction and 97% preferring the program over nursing homes.

Financial highlights

• Revenue increased 15.1% year-over-year to $236.1 million, driven by higher member months and capitation rates.

• Adjusted EBITDA was $17.6 million (7.5% margin), up from $6.5 million (3.2%) in Q1 FY2025.

• Net income was $7.7 million or $8.0 million, compared to a net loss of $5.7 million or $4.9 million in Q1 FY2025; EPS was $0.06.

• Center-level contribution margin was $51.4 million (21.8% of revenue), up from $34.5 million (16.8%) in the prior year.

• Cash and equivalents at quarter-end were $67.1 million, with $42.3 million in short-term investments and $71.5 million in total debt.

Outlook and guidance

• FY2026 guidance reaffirmed: ending census of 7,900–8,100 participants, member months of 91,600–94,400.

• Projected total revenue of $900–$950 million and Adjusted EBITDA of $56–$65 million.

• Anticipated de novo center losses for FY2026 in the range of $13.4–$15.4 million.

• Caution against annualizing Q1 results due to seasonality and Medicaid redetermination timing.

• Guidance subject to risks including macroeconomic factors, regulatory changes, and operational uncertainties.