InnovAge (INNV) Wells Fargo 21st Annual Healthcare Conference summary

Business evolution and platform differentiation

• Transitioned from not-for-profit to for-profit, expanded nationally, and became a public company, focusing on building a scalable, vertically integrated payer-provider platform for complex dual-eligible seniors.

• Undertook significant internal transformation since 2022, upgrading leadership, investing in technology (Epic, Oracle, Salesforce), and integrating clinical services to improve care and economics.

• Fully integrated, full-risk care model manages all Medicare and Medicaid services for high-acuity, dual-eligible seniors, with small patient panels and interdisciplinary teams, resulting in superior outcomes and high rates of independent living.

• Strategic use of AI and technology enhances clinical decision support, medication oversight, logistics, and finance, driving efficiency and improved participant outcomes.

• Consistent revenue growth, expanding margins, and positive cash flow reflect broad-based operational improvements and scalability across all centers.

Market opportunity and growth strategy

• PACE market remains under-penetrated with bipartisan policy support, regulatory tailwinds, and a large addressable market of 2.3 million eligible seniors, offering significant long-term growth potential.

• Three growth horizons: organic expansion within current rules, accelerated growth through policy modernization, and extending the model to new populations such as Medicare-only seniors.

• Scale and geographic diversification position the platform as a preferred partner for health systems and expansion via de novos, M&A, and joint ventures.

• Joint ventures and partnerships with trusted health systems accelerate market impact, expand access, and strengthen community-based care networks, with current collaborations in Florida.

• Policy modernization and new PACE-inspired models are expanding the platform's reach, with simplified enrollment and eligibility standards driving faster adoption.

Financial outlook and guidance

• Fiscal 2027 guidance projects census of 8,625–8,850, revenue of $1,050M–$1,085M, and adjusted EBITDA of $105M–$115M, reflecting stable enrollment trends and margin improvements.

• 4QFY26 AEBITDA reported at $24.3M with a 9.3% margin; center-level contribution margin reached 23% as of June 2026.

• Guidance incorporates a less robust rate environment than 2026 and aims to maintain or slightly increase margins, targeting a sustainable 10%+ long-term margin.

• Financial performance is driven by consistent top-line growth, operational discipline, and resilience to industry rate pressures.

• Embedded earnings opportunity remains through responsible census growth, leveraging excess capacity, and continued technology-driven efficiency.