Cash generation has improved markedly alongside earnings, with Q4 2026 free cash flow reaching a 14.9% margin and an operating cash flow conversion ratio of 2.57 times net income, though working capital swings remain a source of volatility.
InnovAge Holding Corp. (INNV) cash flow statement — 7-year operating, investing & financing cash flows
| Metric | TTM | Jun'25 | Jun'24 | Jun'23 | Jun'22 | Jun'21 | Jun'20 | Jun'19 |
|---|
| Cash from Operations | 64.71M | 32.87M | -36.9M | -36.9M | 27.3M | -7.55M | 43.83M | 25.91M |
| Operating CF Margin % | - | 3.85% | -4.83% | -5.36% | 3.91% | -1.18% | 7.73% | 5.56% |
| Operating CF Growth % | 557.44% | 189.07% | 0% | -235.15% | 461.71% | -117.22% | 69.18% | - |
| Net Income | -2.54M | -35.34M | -23.22M | -23.22M | -6.52M | -43.99M | 25.77M | 19.07M |
| Depreciation & Amortization | 21.14M | 19.51M | 18.95M | 18.95M | 14.35M | 13.35M | 11.29M | 9M |
| Stock-Based Compensation | 4.74M | 7.62M | 6.83M | 6.83M | 3.74M | 47.05M | 543K | 727K |
| Deferred Taxes | 289K | 1.3M | 1.22M | 1.22M | 0 | 0 | 3.17M | 3.55M |
| Other Non-Cash Items | 41.87M | 24.54M | 11.46M | 11.46M | 23.13M | -21.37M | 9.39M | 3.56M |
| Working Capital Changes | -2.99M | 15.23M | -52.15M | -52.15M | -7.4M | -2.59M | -6.33M | -9.99M |
| Change in Receivables | -5.91M | 11.22M | -30.33M | -33.4M | -9.51M | 5.88M | -1.2M | 1.13M |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | -4.12M | -7.92M |
| Change in Payables | 38.45M | 20.43M | 1.37M | 1.37M | 0 | 0 | -1.01M | 9.36M |
| Cash from Investing | -12.34M | -5.55M | -26.37M | -26.37M | -40.24M | -19.54M | -11.69M | -52.48M |
| Capital Expenditures | -14.31M | -6.26M | -7.91M | -7.91M | -38.24M | -17.54M | -11.84M | -14.49M |
| CapEx % of Revenue | 1.45% | 0.73% | 1.04% | 1.15% | 5.47% | 2.75% | 2.09% | 3.11% |
| Acquisitions | 3.72M | -3.52M | -19.07M | -19.07M | 0 | 0 | 169K | -36.49M |
| Investments | - | - | - | - | - | - | - | - |
| Other Investing | 0 | 0 | 0 | 0 | -2M | -2M | 1.3M | -37.99M |
| Cash from Financing | -18.53M | -19.08M | -7.03M | -7.03M | -6.32M | 116.22M | 21.23M | 37.35M |
| Debt Issued (Net) | -18.11M | -9.91M | -8.43M | -8.43M | -6.32M | -139.45M | 21.23M | 115.81M |
| Equity Issued (Net) | 1.54M | -7.32M | -179K | -179K | 0 | -77.6M | 0 | 277K |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | -9.5M | 0 | -66.51M |
| Share Repurchases | 0 | -7.32M | -179K | -179K | 0 | -77.6M | 0 | -193K |
| Other Financing | -1.97M | -1.85M | 1.58M | 1.58M | 0 | 342.77M | 0 | -12.24M |
| Net Change in Cash | 21.43M | 8.23M | -70.31M | -70.31M | -19.25M | 89.14M | 53.37M | 10.77M |
| Free Cash Flow | 50.41M | 26.6M | -44.81M | -44.81M | -10.94M | -25.09M | 31.98M | 11.42M |
| FCF Margin % | 5.09% | 3.12% | -5.87% | -6.51% | -1.57% | -3.93% | 5.64% | 2.45% |
| FCF Growth % | 120.75% | 159.37% | 0% | -309.77% | 56.41% | -178.44% | 180.07% | - |
| FCF per Share | 0.37 | 0.20 | -0.33 | -0.33 | -0.08 | -0.19 | 0.24 | 0.09 |
| FCF Conversion (FCF/Net Income) | -19.87x | -1.08x | 1.73x | 0.91x | -4.19x | 0.17x | 1.67x | 1.32x |
| Interest Paid | 2.06M | 4.35M | 4.06M | 4.06M | 1.47M | 18.03M | 11.55M | 8.84M |
| Taxes Paid | 5K | 1K | 4.45M | 4.45M | 0 | 0 | 4.75M | 4.53M |
Quick answers to the most common questions about buying INNV stock.
InnovAge Holding Corp. (INNV) generated $32.9M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
InnovAge Holding Corp. (INNV) generated $26.6M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
InnovAge Holding Corp. (INNV) spent $6.3M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, InnovAge Holding Corp. (INNV) spent $7.3M on share repurchases. This shows the company's commitment to returning capital to its equity investors.
Key Metrics
Top Statement Risk
Margin compression from labor costs
Metrics are mathematically derived from official filings.
Cash Conversion Improves with Positive Earnings
The Q4 2026 operating cash flow of $21.3M was 2.57 times net income, a sharp improvement from earlier volatile quarters, suggesting the recent turn to profitability is being supported by robust underlying cash generation according to reported financial statements.
For many periods, negative net income was accompanied by positive operating cash flow, a pattern indicating that cash generation was driven by non-cash accruals and depreciation rather than accounting profits. The convergence of positive net income and strong operating cash flow in late 2026 suggests the quality of earnings is improving as the business scales. However, the extreme swings in the OCF/NI ratio across quarters imply that one-time items and non-cash adjustments continue to create significant volatility in reported cash conversion.
Free Cash Flow Turns Sustainably Positive
After a period of negative free cash flow, InnovAge has generated positive FCF for five consecutive quarters, culminating in a 14.9% FCF margin in Q4 2026, a dramatic improvement from the -4.7% margin seen in early 2025 based on reported figures.
The company's free cash flow trajectory shows a clear inflection point beginning in late 2025, coinciding with the lifting of enrollment sanctions and a reacceleration in revenue growth. The recent ability to generate substantial FCF on a net-income-positive basis suggests the business model is beginning to produce sustainable cash flow. However, the heavy reliance on working capital inflows in some quarters, as seen in Q3 2025, indicates that the FCF stream is not yet entirely predictable and remains sensitive to the timing of collections and payments.
Working Capital Swings Create FCF Volatility
InnovAge's working capital has been highly erratic, swinging from a $25.8M source of cash in 2025Q3 to a $13.4M use in 2026Q1, a pattern that suggests inconsistent management of receivables and payables within its capitated revenue model.
The extreme volatility in the working capital line indicates that the timing of cash collections and payments is not smooth, which could be due to the lumpy nature of government reimbursement cycles or the settlement of medical claims. For a capitated model with predictable revenue, investors would expect more stable working capital dynamics. The large swings directly impact the reliability of free cash flow, making it difficult to assess the underlying operational cash generation quarter-to-quarter.
Cash Flow Obscures Capitated Model Risks
The strong recent cash flow does not fully capture the risk of adverse medical claim cost development, where Incurred But Not Reported (IBNR) reserves could lead to future cash outflows that are not yet reflected in the operating cash flow line based on standard capitated accounting practices.
While the cash flow statement shows robust generation, it does not disclose the adequacy of reserves for medical costs incurred but not yet paid. A significant underestimate of these liabilities could result in a future cash drain to settle claims, an event that would not be apparent until the payments are actually made. Furthermore, the reported stock-based compensation, which has fluctuated, represents a real economic cost to shareholders that is added back to calculate operating cash flow, potentially overstating the cash available to the business on a fully-diluted basis.