InnovAge (INNV) Q4 2025 earnings summary

Executive summary

• Fiscal 2025 saw revenue grow 11.8% to $853.7 million, with adjusted EBITDA more than doubling to $34.5 million and census rising 10.3% to 7,740 participants.

• Net loss increased to $35.3 million ($0.22 per share), up from $23.2 million in FY2024, with a net loss margin of 4.1%.

• The company exceeded major commitments, driven by disciplined cost management, clinical initiatives, and new partnerships.

• Ended the year with momentum and expects further progress in FY2026.

Financial highlights

• Q4 revenue was $221.4 million, up 11% year-over-year; full-year revenue reached $853.7 million, up 11.8%.

• Adjusted EBITDA for FY2025 was $34.5 million (4% margin), more than doubling from $16.5 million in FY2024; Q4 adjusted EBITDA was $11.3 million (5.1% margin).

• Net loss for FY2025 was $35.3 million ($0.22 per share); Q4 net loss was $5.0 million.

• Center-level contribution margin improved to 18% for the year, up 70 basis points, and 18.6% in Q4.

• De novo center losses were $15.4 million for FY2025, up from $12 million in FY2024.

Outlook and guidance

• FY2026 guidance: census of 7,900–8,100, revenue of $900–$950 million, adjusted EBITDA of $56–$65 million, de novo losses of $13.4–$15.4 million.

• Margin expansion expected to continue, targeting 8–9% adjusted EBITDA margin over the next few years.

• Guidance incorporates headwinds from Medicaid redetermination, Medicare Advantage V-28 payment model, and enrollment processing delays.