Revenue growth has accelerated to 15.5% in 2026Q3, yet the company remains unable to achieve consistent profitability, as evidenced by a net loss of $29.5M in the same period.
| Sales/Revenue | 945.9M | 853.7M | 763.86M | 688.09M | 698.64M | 637.8M | 567.19M | 465.63M |
| Revenue Growth % | 13.73% | 11.76% | 11.01% | -1.51% | 9.54% | 12.45% | 21.81% | - |
| Cost of Goods Sold | 553.9M | 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 | 140.05M | 584.79M | 132.06M | 101.29M | 135.37M | 161.79M | 141.3M | 110.63M |
| Gross Margin % | 14.81% | 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 | 211.09M | 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 | 203.36M | 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 | 14.23M | -29.76M | -23.18M | -49.4M | -4.41M | 74.82M | 50.93M | 39.67M |
| Operating Margin % | 1.5% | -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 | 4.12M | -10.25M | -4.23M | -33.98M | 9.52M | 87.12M | 62.22M | 48.67M |
| EBITDA Margin % | 0.44% | -1.2% | -0.55% | -4.94% | 1.36% | 13.66% | 10.97% | 10.45% |
| EBITDA Growth % | 137.31% | -142.34% | 87.55% | -456.97% | -89.07% | 40.01% | 27.85% | - |
| D&A (Non-Cash Add-back) | 20.17M | 19.51M | 18.95M | 15.42M | 13.92M | 12.29M | 11.29M | 9M |
| EBIT | 15.37M | -16.15M | -17.8M | -49.27M | -4.71M | -18.18M | 50.25M | 36.92M |
| Net Interest Income | -3.57M | -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 | 2.58M | 4.61M | 4.02M | 1.52M | 2.53M | 16.79M | 14.62M | 9.59M |
| Other Income/Expense | -4.92M | -4.27M | 1.36M | -1.4M | -2.83M | -109.79M | -15.3M | -14.29M |
| Pretax Income | -20.46M | -34.03M | -21.82M | -50.79M | -7.24M | -34.97M | 35.63M | 25.39M |
| Pretax Margin % | -2.16% | -3.99% | -2.86% | -7.38% | -1.04% | -5.48% | 6.28% | 5.45% |
| Income Tax | 1.14M | 1.32M | 1.4M | -7.24M | 723K | 9.77M | 9.87M | 6.32M |
| Effective Tax Rate % | -5.56% | -3.87% | -6.43% | 14.26% | -9.99% | -27.94% | 27.69% | 24.88% |
| Net Income | -22.2M | -30.31M | -21.34M | -40.67M | -6.52M | -43.99M | 26.28M | 19.58M |
| Net Margin % | -2.35% | -3.55% | -2.79% | -5.91% | -0.93% | -6.9% | 4.63% | 4.2% |
| Net Income Growth % | 28.9% | -42.06% | 47.54% | -523.72% | 85.17% | -267.39% | 34.22% | - |
| Net Income (Continuing) | -21.12M | -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 | 26.11M | 27.94M | 30.55M | 30.55M | 21.38M | 23.41M | 6.74M | 7.25M |
| EPS (Diluted) | -0.16 | -0.22 | -0.16 | -0.30 | -0.05 | -0.33 | 0.20 | 0.15 |
| EPS Growth % | -27.63% | -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 | 135.7M | 135.39M | 135.9M | 135.59M | 135.52M | 135.52M | 133.19M | 133.19M |
| Basic Shares Outstanding | 135.7M | 135.39M | 135.9M | 135.59M | 135.52M | 135.52M | 133.19M | 133.19M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | 339.7% |
Regulatory enrollment freeze vulnerability
As reported in recent financial filings, InnovAge's revenue growth has accelerated to 15.5% in 2026Q3, reflecting a successful resumption of participant enrollment following the lifting of previous regulatory sanctions that had historically constrained the company's ability to expand its census across key geographic service areas.
The recent uptick in top-line performance suggests that the company is successfully navigating its post-sanction recovery phase. Investors should monitor whether this growth trajectory remains sustainable as the company attempts to scale its site-based PACE model without triggering further compliance-related enrollment freezes.
Based on the provided income statement data, gross margins have fluctuated between 16.8% and 21.8% over the last ten quarters, indicating that the company struggles to maintain consistent profitability as it balances rising clinical labor costs against the fixed capitated payments received from government healthcare programs.
The inability to sustain gross margins above the 20% threshold suggests that the company's cost-to-serve model is highly sensitive to medical acuity and wage inflation. This volatility implies that management has yet to achieve the necessary operational efficiency to insulate the bottom line from external clinical cost pressures.
According to historical income statements, InnovAge has struggled to demonstrate meaningful operating leverage, as evidenced by the 2026Q3 operating loss despite a revenue base of $251.9M, which highlights the heavy burden of corporate overhead relative to the contribution margins generated by individual PACE centers.
The persistent gap between gross profit and operating income suggests that administrative and facility-level fixed costs are scaling disproportionately to revenue growth. This indicates that the company's current infrastructure may be over-sized for its existing participant census, necessitating higher density to achieve meaningful operating profitability.
As indicated by the erratic net income figures, which swung from a $10.6M profit in 2026Q2 to a $29.5M loss in 2026Q3, the company's earnings quality appears compromised by significant non-operating fluctuations and the ongoing impact of stock-based compensation expenses on the bottom line.
The sharp reversal in profitability warrants further investigation into whether these swings are driven by one-time adjustments or structural issues in medical claim reserves. Investors should be cautious of relying on quarterly net income as a proxy for operational health given the sensitivity to risk-adjustment true-ups.
While recent revenue growth appears positive, the 2026Q3 net loss of $29.5M suggests that the company's turnaround narrative may be premature, as the underlying cost structure remains vulnerable to the same clinical labor and regulatory risks that previously necessitated government-mandated enrollment freezes across its facilities.
Short-term revenue gains may mask deeper operational inefficiencies that could lead to margin compression if the company fails to manage its medical care ratio effectively. The market should remain skeptical of the current recovery until consistent, positive operating cash flow is demonstrated over multiple consecutive quarters.
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.