InnovAge's financial performance shows a sharp inflection, with Q4 2026 revenue growth accelerating to 20.1% and operating income swinging to a positive $16.0 million, demonstrating emerging operating leverage on a 21.5% gross margin.
InnovAge Holding Corp. (INNV) annual income statement — 7-year revenue, gross profit & net income history
| Metric | TTM | Jun'25 | Jun'24 | Jun'23 | Jun'22 | Jun'21 | Jun'20 | Jun'19 |
|---|
| Sales/Revenue | 989.71M | 853.7M | 763.86M | 688.09M | 698.64M | 637.8M | 567.19M | 465.63M |
| Revenue Growth % | 16.38% | 11.76% | 11.01% | -1.51% | 9.54% | 12.45% | 21.81% | - |
| Cost of Goods Sold | 582.25M | 268.91M | 631.79M | 586.8M | 563.27M | 476.01M | 425.89M | 355M |
| COGS % of Revenue | - | 31.5% | 82.71% | 85.28% | 80.62% | 74.63% | 75.09% | 76.24% |
| Gross Profit | 155.51M | 584.79M | 132.06M | 101.29M | 135.37M | 161.79M | 141.3M | 110.63M |
| Gross Margin % | 15.71% | 68.5% | 17.29% | 14.72% | 19.38% | 25.37% | 24.91% | 23.76% |
| Gross Profit Growth % | - | 342.81% | 30.38% | -25.18% | -16.33% | 14.49% | 27.73% | - |
| Operating Expenses | 200.35M | 614.55M | 155.24M | 150.68M | 139.78M | 86.96M | 90.37M | 70.95M |
| OpEx % of Revenue | - | 71.99% | 20.32% | 21.9% | 20.01% | 13.63% | 15.93% | 15.24% |
| Selling, General & Admin | 200.85M | 150.28M | 136.29M | 135.26M | 125.85M | 154.57M | 77.48M | 64.71M |
| SG&A % of Revenue | - | 17.6% | 17.84% | 19.66% | 18.01% | 24.23% | 13.66% | 13.9% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - |
| Other Operating Expenses | -1000K | 464.28M | 18.95M | 15.42M | 13.92M | -67.61M | 12.89M | 6.24M |
| Operating Income | 40.44M | -29.76M | -23.18M | -49.4M | -4.41M | 74.82M | 50.93M | 39.67M |
| Operating Margin % | 4.09% | -3.49% | -3.03% | -7.18% | -0.63% | 11.73% | 8.98% | 8.52% |
| Operating Income Growth % | - | -28.39% | 53.07% | -1021.08% | -105.89% | 46.9% | 28.38% | - |
| EBITDA | 31.3M | -10.25M | -4.23M | -33.98M | 9.52M | 87.12M | 62.22M | 48.67M |
| EBITDA Margin % | 3.16% | -1.2% | -0.55% | -4.94% | 1.36% | 13.66% | 10.97% | 10.45% |
| EBITDA Growth % | 292.4% | -142.34% | 87.55% | -456.97% | -89.07% | 40.01% | 27.85% | - |
| D&A (Non-Cash Add-back) | 21.14M | 19.51M | 18.95M | 15.42M | 13.92M | 12.29M | 11.29M | 9M |
| EBIT | 41.31M | -16.15M | -17.8M | -49.27M | -4.71M | -18.18M | 50.25M | 36.92M |
| Net Interest Income | -3.27M | -4.61M | -4.02M | -1.52M | -2.53M | -16.79M | -14.62M | -9.59M |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 2.28M | 4.61M | 4.02M | 1.52M | 2.53M | 16.79M | 14.62M | 9.59M |
| Other Income/Expense | -10.4M | -4.27M | 1.36M | -1.4M | -2.83M | -109.79M | -15.3M | -14.29M |
| Pretax Income | 266K | -34.03M | -21.82M | -50.79M | -7.24M | -34.97M | 35.63M | 25.39M |
| Pretax Margin % | 0.03% | -3.99% | -2.86% | -7.38% | -1.04% | -5.48% | 6.28% | 5.45% |
| Income Tax | 949K | 1.32M | 1.4M | -7.24M | 723K | 9.77M | 9.87M | 6.32M |
| Effective Tax Rate % | 356.77% | -3.87% | -6.43% | 14.26% | -9.99% | -27.94% | 27.69% | 24.88% |
| Net Income | -2.54M | -30.31M | -21.34M | -40.67M | -6.52M | -43.99M | 26.28M | 19.58M |
| Net Margin % | -0.26% | -3.55% | -2.79% | -5.91% | -0.93% | -6.9% | 4.63% | 4.2% |
| Net Income Growth % | 93.8% | -42.06% | 47.54% | -523.72% | 85.17% | -267.39% | 34.22% | - |
| Net Income (Continuing) | -204K | -35.34M | -23.22M | -43.55M | -7.96M | -44.74M | 25.77M | 19.07M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 33.17M | 27.94M | 30.55M | 30.55M | 21.38M | 23.41M | 6.74M | 7.25M |
| EPS (Diluted) | -0.02 | -0.22 | -0.16 | -0.30 | -0.05 | -0.33 | 0.20 | 0.15 |
| EPS Growth % | 46.71% | -37.5% | 46.67% | -500% | 84.85% | -265% | 33.33% | - |
| EPS (Basic) | - | -0.22 | -0.16 | -0.30 | -0.05 | -0.33 | 0.20 | 0.15 |
| Diluted Shares Outstanding | 137.16M | 135.39M | 135.9M | 135.59M | 135.52M | 135.52M | 133.19M | 133.19M |
| Basic Shares Outstanding | 135.81M | 135.39M | 135.9M | 135.59M | 135.52M | 135.52M | 133.19M | 133.19M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | 339.7% |
Quick answers to the most common questions about buying INNV stock.
For fiscal year 2025, InnovAge Holding Corp. (INNV) reported total revenue of $853.7M. This represents a 83.3% increase compared to $465.6M in 2019.
InnovAge Holding Corp. (INNV) reported a net loss of $30.3M for the fiscal year ending 2025.
InnovAge Holding Corp. (INNV) reported an operating income of $-29.8M, resulting in an operating profit margin of -3.5%. This margin reflects the operational efficiency of the business before interest and taxes.
InnovAge Holding Corp. (INNV) generated $584.8M in gross profit for the year, representing a gross profit margin of 68.5%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Margin compression from labor costs
Metrics are mathematically derived from official filings.
Revenue Growth Reaccelerates Post-Sanctions
InnovAge's revenue growth has reaccelerated, hitting 20.1% in Q4 2026 according to its latest SEC filing, a significant acceleration from the mid-teens growth rates seen in prior quarters following the lifting of key enrollment freezes.
This acceleration suggests the core PACE model is regaining traction as participant census rebuilds. The growth appears to be volume-driven, which is essential for the company's fixed-cost infrastructure. However, the sustainability of this pace hinges on continued regulatory compliance and successful opening of new capacity, which are not yet fully reflected in these financials.
Gross Margin Strength Contrasts with Operating Loss
A gross margin of 21.5% in Q4 2026, as reported in financial statements, stands in stark contrast to the persistent negative operating margins of recent history, highlighting a fundamental disconnect between care delivery economics and corporate overhead.
The healthy gross margin indicates the capitated revenue is sufficient to cover direct clinical costs, a key pillar of the PACE model's viability. The operating loss, however, points to an unsustainable burden of SG&A and center-level fixed costs relative to the current participant density. This structure implies significant operating leverage is embedded, but only if the company can scale participants without a proportional increase in administrative expense.
Emerging Positive Operating Leverage
Based on reported figures, Q4 2026 operating income swung to a positive $16.0M from a loss in the prior year period, demonstrating that incremental revenue is beginning to flow through meaningfully to the bottom line as fixed costs are spread over a larger participant base.
This inflection suggests the company is moving past the critical scale threshold where revenue from new participants begins to exceed the incremental cost to serve them. The key risk is that this leverage may be partially driven by one-time factors like risk adjustment true-ups or lower-than-normal utilization. Investors should monitor whether SG&A growth can be held in check as the top line expands.
Net Income Volatility from Non-Operating Items
The dramatic swing in EPS from -$0.08 in Q1 2026 to +$0.06 in Q4 2026, as detailed in the company's financials, is influenced by non-operating factors, making the core earnings power difficult to discern from a single quarter's reported figure.
The variability suggests that items such as tax adjustments, interest income, or risk settlement gains are heavily impacting the bottom line. Furthermore, stock-based compensation, while minimal in Q4 2026 at -$574K, has been inconsistent and can distort underlying profitability. The quality of earnings will improve only when operating income consistently supports net profitability without reliance on non-recurring items.
SG&A Discipline as Key to Profitability
A notable reduction in SG&A to $43.0M in Q4 2026 from $85.3M in the prior quarter, as per the company's income statement, appears to be a primary driver of the return to operating profitability, underscoring the critical role of overhead management.
This level of SG&A volatility suggests either significant cost-cutting, a reclassification of expenses, or the non-recurrence of a large prior-period charge. Assuming it reflects genuine operational discipline, it is a positive signal. However, if the reduction is non-recurring, the path to sustained profitability becomes much narrower. The company's ability to manage center-level labor costs and corporate G&A in tandem will determine margin expansion.
Margin Recovery Built on Shaky Foundations
The turn to profitability in late 2026 appears fragile, with the strongest quarterly results coinciding with a spike in revenue growth that may mask underlying cost pressures, such as wage inflation and higher medical claim acuity, which could quickly erode the narrow operating margin.
A short-seller would focus on the inconsistency in operating income, the reliance on a single quarter of positive results, and the potential for medical care ratio (MCR) expansion as higher-acuity seniors are enrolled post-freeze. Furthermore, the company's significant geographic concentration means that any adverse Medicaid reimbursement change in a core state like Colorado could immediately negate recent operating progress. The balance sheet provides a buffer, but the core business's ability to generate consistent, positive free cash flow remains unproven.