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InnovAge shares jump 13% as fiscal 2027 guidance tops $1bn. InnovAge Holding Corp (NASDAQ: INNV) reported fourth-quarter and full fiscal-year 2026 results on 8 September 2026, alongside fiscal 2027 guidance of $1.05bn to $1.085bn in revenue. Shares closed 13.12% higher at $11.90 the following session, on volume 1.91 times the 20-day average, according to consolidated exchange data. Guidance beats, but the EBITDA number needs context. Management told investors adjusted EBITDA rose 175% in fiscal 2026, framing the increase around a long-term margin target of 10%. The company said net income was hit by one-time legal accruals during the year. That 175% figure is a non-GAAP measure calculated by the company; it does not correspond to any GAAP figure in InnovAge's public filings. The most recent GAAP net income on file, for the quarter ended 31 March 2026, was a loss of $29.461m, with diluted earnings per share of -$0.22. Quarterly revenue over the same run of filings climbed from $188.898m in the quarter to December 2023 to $251.943m in the quarter to March 2026, the last figure reported before Tuesday's release. InnovAge's fiscal year runs to 30 June, making a September release for the fourth quarter consistent with the company's established reporting calendar; it followed the same cadence a year earlier when it announced results for the period ended 30 June 2025. Fiscal 2027 targets. For fiscal 2027, InnovAge guided to a census of 8,625 to 8,850 participants, revenue of $1.05bn to $1.085bn, and adjusted EBITDA of $105m to $115m. Management framed the targets around preserving margins in what it called a more challenging rate environment, language that lands against a backdrop of a 10-year Treasury yield at 4.78% in early September, still elevated by recent historical standards. The company also described a shift into what it calls 'InnovAge Holding 3.0', centred on scaling operations, expanding value-based care, investing in artificial intelligence and clinical technology, and exploring new markets and acquisitions. Sponsor filings land in the same two-minute window. Three private-equity sponsors linked to InnovAge's ownership structure each filed a Form 4 with the SEC in the two minutes surrounding the earnings release on 8 September: TCO Group Holdings, L.P. at 22:00:09 UTC, Apax X (Guernsey) USD AIV LP at 22:00:07 UTC, and WCAS XII Associates LLC at 22:00:05 UTC. None of the three filings discloses whether the entities were adding to or reducing their positions. The timing places all three trades within seconds of the results going public, on a day the stock ultimately jumped 13% and short-sale volume, tracked by FINRA, rose to a ratio of 0.66, up from 0.374 a week earlier on 1 September. Whether that short-volume increase reflects hedging, market-making activity, or directional bets, the data does not say. What is clear is that the filing timestamps and the earnings release landed within the same window, giving traders scrutinising the print an added data point to weigh alongside the headline guidance figures. What the numbers show over time. InnovAge's GAAP results have been volatile across recent quarters. Net income swung from a loss of $13.221m in the quarter to December 2024 to a profit of $10.618m in the quarter to December 2025, before reverting to a $29.461m loss in the quarter to March 2026. Diluted EPS across the same stretch moved from -$0.10 to $0.08 and back to -$0.22, underlining how sensitive the bottom line has been to one-off items, including the legal accruals management flagged on Tuesday's call. Revenue growth has been steadier. The top line rose in each of the eight quarters disclosed in InnovAge's 10-Q filings, from $188.898m in the December 2023 quarter to $251.943m in the March 2026 quarter, a run of sequential increases that underpins the case for the higher fiscal 2027 revenue guidance now on the table. Investors will get the first full test of that guidance when InnovAge reports its fiscal 2027 first-quarter results, expected in line with the company's established September-to-November reporting rhythm. This article is for information only and is not investment advice or a recommendation to buy or sell any asset. Markets move quickly; figures are correct as sourced at the time of writing. Always do your own research before making financial decisions.

InnovAge Q4 earnings call highlights. InnovAge (NASDAQ:INNV) reported fiscal 2026 revenue growth, higher census and a sharp increase in adjusted EBITDA as the provider of Program of All-Inclusive Care for the Elderly, or PACE, services said it has moved beyond a multiyear operational turnaround and is focusing on scalable growth. For the fiscal year ended June 30, InnovAge's adjusted EBITDA rose to $94.6 million from $34.5 million in fiscal 2025, an increase of about 175%. Adjusted EBITDA margin reached 9.6%, approaching the company's stated long-term target of more than 10%. Discover more Derivatives Medical device stocks Revenue increased 15.9% to $989.7 million, supported by higher member months and capitation rates. InnovAge ended the year serving about 8,230 participants across 20 centers, up 6.3% from a year earlier and 2.2% sequentially. Fourth-quarter revenue rose 4% from the prior quarter to $262 million. "Fiscal 2026 was an exceptional year for InnovAge and a key milestone in the transformation of the company," Chief Executive Officer Patrick Blair said. He said the company had strengthened its leadership, technology, data capabilities and discipline around medical and operating costs. Profitability improved despite legal expenses. InnovAge reported a fiscal-year net loss of $700,000, compared with a $35.3 million loss in fiscal 2025. The company said its results were affected by one-time legal accruals, while Blair said InnovAge otherwise would have generated strong net income for the year. Corporate, general and administrative expense increased 36.4% to $166.5 million, primarily reflecting a $36.8 million net increase in litigation and settlement expense related to various legal matters. The increase also included costs tied to organizational restructuring, executive severance, headcount and wage rates. In the fourth quarter, InnovAge returned to profitability, reporting net income of $9.8 million, or $0.06 per share, compared with a $29.9 million net loss in the preceding quarter. Fourth-quarter adjusted EBITDA was $24.3 million, down from $30.5 million in the third quarter. Center-level contribution margin increased 48.2% for the full year to $227.8 million. As a share of revenue, the measure improved 500 basis points to 23.0% from 18.0% a year earlier. External provider costs rose 4.3% to $449.8 million, driven by enrollment growth but partly offset by lower costs per participant. Chief Financial Officer Ben Adams attributed the per-participant improvement primarily to lower permanent and short-stay nursing facility utilization and reduced pharmacy expense following the transition to in-house pharmacy services. Cost of care, excluding depreciation and amortization, rose 16.1% to $312.1 million. InnovAge cited higher wages and benefits, pharmacy-related third-party fees and shipping costs, contract services, supplies, administrative expenses and fleet costs. At year-end, the company held $97.9 million of cash and cash equivalents and $43.4 million of short-term investments, against $63.3 million of total debt. Fiscal 2027 outlook calls for continued growth. InnovAge projected fiscal 2027 ending census of approximately 8,625 to 8,850 participants, representing growth of roughly 5% to 7.5%. The company forecast member months of 101,000 to 102,500, revenue of $1.05 billion to $1.085 billion, and adjusted EBITDA of $105 million to $115 million. Management expects a more moderate rate environment than in fiscal 2026. Adams said the company anticipates a Medicare rate increase of approximately 1.5% to 2%, including the effect of the continuing transition to the V28 risk-adjustment model, and low-single-digit Medicaid rate increases. The company will move to a 50/50 blend of the V22 and V28 Medicare payment models effective Jan. 1, compared with a 10% V28 and 90% legacy-model blend in the current year. Adams said InnovAge's participant population has a high prevalence of dementia, which is treated favorably under V28. California and Colorado, which collectively account for about 70% of InnovAge's census, remain important uncertainties because their PACE rate-setting processes have not concluded. Management said its guidance incorporates what it considers responsible assumptions for those states. Discover more Stock market education Oil and gas stocks Adams said management expects margin progress to come from utilization management, efficiencies in internal care operations and continued improvement in general and administrative costs. Fiscal 2027 de novo losses are expected to be $400,000 to $800,000, primarily related to the Bakersfield, California, center. The company's Florida centers and Crenshaw, California, center have transitioned out of de novo status. Company outlines 'InnovAge 3.0' growth strategy. Blair described the company's next strategic phase, "InnovAge 3.0," as an effort to scale the platform after building it and then strengthening its operating and compliance foundations. The strategy includes growing enrollment at existing centers, expanding center capacity and evaluating de novo markets, acquisitions, joint ventures and other partnerships. However, Blair said InnovAge has a high bar for new center development and believes the right acquisitions could provide better returns on invested capital than de novos over a three- to five-year period. He said the company is actively reviewing opportunities but intends to remain disciplined on acquisitions. InnovAge is also investing in participant communication, scheduling, transportation, data integration and artificial intelligence tools. The company completed pilots of an AI-enabled physician consultation tool and a medication optimization tool. Blair said the consultation tool was associated with fewer external specialist referrals during the pilot, although management said it is too early to quantify broader effects on quality, utilization or economics. New President and Chief Operating Officer Jenn Browne is focused on increasing consistency across centers, strengthening accountability, improving use of the company's Epic electronic medical record system and enhancing the participant experience, Blair said. Management also discussed early policy conversations with CMS, the Center for Medicare and Medicaid Innovation and the National PACE Association regarding ways to reduce barriers to PACE enrollment and expansion. Blair said policymakers are also considering whether aspects of the PACE model could be applied to Medicare-only adults with functional impairments who may be on a path toward institutional care, though he stressed that those discussions are preliminary and InnovAge's outlook assumes no policy changes. Discover more Energy sector stocks Stock portfolio tracker Precious Metals About InnovAge (NASDAQ:INNV). InnovAge Holdings, Inc (NASDAQ:INNV) is a healthcare services company that specializes in caring for seniors through the Program of All-Inclusive Care for the Elderly (PACE). Designed for individuals who are eligible for both Medicare and Medicaid, the PACE model integrates medical care, social services and long-term care - delivered primarily in participants' homes and community-based centers. InnovAge's approach centers on interdisciplinary care teams that coordinate everything from primary and specialty medical services to nutritional counseling and recreational activities. The company's core offerings include comprehensive in-home assessments, physician and nursing services, physical and occupational therapy, prescription medication management, and transportation to medical appointments.

InnovAge reported fiscal 2026 revenue growth of 15.9% to $989.7 million, supported by higher member months and capitation rates. The PACE services provider's adjusted EBITDA rose 175% to $94.6 million from $34.5 million in fiscal 2025, with margins reaching 9.6%. The company ended the year serving approximately 8,230 participants across 20 centres, up 6.3% year-over-year. Centre-level contribution margin improved 500 basis points to 23.0%. InnovAge reported a fiscal-year net loss of $700,000, compared with a $35.3 million loss in fiscal 2025. Corporate expenses increased 36.4% to $166.5 million, primarily reflecting $36.8 million in litigation and settlement costs. Chief executive Patrick Blair said the company has moved beyond its multiyear operational turnaround and is focusing on scalable growth.