InnovAge Holding Corp. (INNV) Q4 2025 Earnings Call Transcript
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Sep 09 2025
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Should l Buy INNV?
Source: SeekingAlpha
Revenue (Q4 FY 2025) $221.4 million, up 11% year-over-year. The increase was driven by disciplined cost management, strong medical utilization performance, and continued census growth.
Center Level Contribution Margin (Q4 FY 2025) $41.3 million, representing an 18.6% contribution margin. This reflects disciplined cost management and strong medical utilization performance.
Adjusted EBITDA (Q4 FY 2025) $11.3 million, more than doubled year-over-year, representing a 5.1% margin. This was due to disciplined cost management and operational improvements.
Revenue (FY 2025) $853.7 million, up nearly 12% year-over-year. The increase was driven by an increase in member months and capitation rates, including rate increases for both Medicare and Medicaid.
Center Level Contribution Margin (FY 2025) $153.6 million, with contribution margin expanding to approximately 18%, up 70 basis points from FY 2024. This was due to improved cost management and operational efficiencies.
Adjusted EBITDA (FY 2025) $34.5 million, above the high end of FY 2025 guidance of $31 million. Adjusted EBITDA margin nearly doubled from 2.2% in FY 2024 to approximately 4% in FY 2025, driven by operational improvements and cost management.
Census Growth (FY 2025) Approximately 7,740 participants, representing annual growth of 10.3%. This was due to strengthened enrollment strategies and new partnerships.
External Provider Costs (FY 2025) $431.2 million, a 7% increase year-over-year. The increase was driven by an increase in member months, partially offset by a decrease in cost per participant due to reduced inpatient and nursing facility utilization and transition to in-house pharmacy services.
Cost of Care (FY 2025) $268.9 million, an increase of 17.5% year-over-year. The increase was due to higher salaries, wages, benefits, and other operational costs.
Net Loss (FY 2025) $35.3 million, compared to a net loss of $23.2 million in FY 2024. The increase was due to higher operational costs and a $10.1 million accrual for a potential settlement of a securities class action lawsuit.
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About INNV
InnovAge Holding Corp. is a healthcare delivery platform. The Company is engaged in managing the care of high-cost, frail, and dual-eligible seniors through the Program of All-inclusive Care for the Elderly (PACE). Its programs are designed to allow frail seniors to live life on their terms by aging in place, in their own homes and communities, for as long as safely possible. Through its PACE program, it offers a range of medical and ancillary services for seniors, including in-home care services (skilled, unskilled and personal care), center services such as primary care, physical therapy, occupational therapy, speech therapy, dental services, mental health and psychiatric services, meals, and activities; transportation to and from the PACE center, and third-party medical appointments and care management. Its participant-centered approach is led by the Company's Interdisciplinary Care Teams (IDTs), who oversee all aspects of each participant’s care plan.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Innovative Care Model: InnovAge's PACE model aims to enhance the ability of seniors to live independently while reducing over-utilization of high-cost care settings, reflecting the company's commitment to improving care quality for older adults, which may attract more support from government payors.
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