PBS “Caregiving” Documentary, featuring Actor Bradley Cooper, Premieres TonightDENVER, June 24, 2025 (GLOBE NEWSWIRE) -- InnovAge, the nation’s largest provider of the Program of All-inclusive Care for the Elderly (PACE) based on participants served, announced today its sponsorship of the new PBS documentary Caregiving, airing tonight, June 24, at 9pm ET on PBS. Executive produced by and featuring Grammy-winning actor Bradley Cooper, and narrated by Emmy-winning actor Uzo Aduba, the film offers an in-depth ...

Employee feedback highlights pride in and commitment to serving the community InnovAge InnovAge Earns Great Place to Work Recertification DENVER, May 07, 2025 (GLOBE NEWSWIRE) -- InnovAge, a leading provider of Program of All-Inclusive Care for the Elderly (PACE) services, is proud to announce its recertification as a Great Place to Work®. This recognition reflects the company’s continued commitment to fostering a purpose-driven workplace where employees feel supported and empowered to deliver exception ...

InnovAge (INNV) Q3 2025 Earnings Call May 06, 2025 05:00 PM ET Company Participants Ryan Kubota - Director of Investor RelationsPatrick Blair - President & CEOBen Adams - CFOBenjamin Rossi - Equity Research AssociateJared Haase - Equity Research AssociateMichael Scarbrough - President & COO Conference Call Participants Matthew Gillmor - Director & Equity Research AnalystJamie Perse - Equity Research Analyst Operator Good day, and thank you for standing by. Welcome to the InnovAge Third Quarter twenty twenty ...

Participant and Service Overview - As of March 31, 2025, InnovAge served approximately 7,530 PACE participants across 20 centers in six states[128] - The average risk adjustment factor (RAF) score for participants is 2.46, indicating a higher acuity population compared to Medicare Advantage participants[136] - The average participant tenure was 3.1 years as of March 31, 2025, with a low voluntary disenrollment rate of 6.9% annually over the last three fiscal years[136] - The company operated 20 PACE centers as of March 31, 2025, an increase from 19 centers in the previous year[173] - Total member months increased to 66,130 for the nine months ended March 31, 2025, compared to 60,030 for the same period in 2024[173] Financial Performance - Total revenues for the nine months ended March 31, 2025, reached $632.3 million, up $67.8 million, or 12.0%, from $564.5 million for the nine months ended March 31, 2024[151] - Capitation revenue for the three months ended March 31, 2025, was $217.8 million, an increase of $25.1 million, or 13.0%, compared to $192.8 million for the same period in 2024[150] - The increase in capitation revenue for the three months ended March 31, 2025, was driven by a $4.4 million increase in capitation rates and a $20.7 million increase in member months[150] - Center-level contribution margin rose to $112.4 million for the nine months ended March 31, 2025, up from $95.5 million in the prior year, reflecting a 12.0% increase in total revenue[177] - Adjusted EBITDA increased to $23.1 million for the nine months ended March 31, 2025, compared to $11.2 million for the same period in 2024[173] - The Adjusted EBITDA margin for the nine months ended March 31, 2025, was 3.7%, compared to 2.0% for the same period in 2024[181] Expenses and Costs - External provider costs represented approximately 82% of revenue for the nine months ended March 31, 2025[136] - InnovAge experienced increased costs of care per participant due to rising salaries, wages, and benefits, as well as third-party service provider costs[129] - Corporate, general and administrative expenses increased to $38.6 million for the three months ended March 31, 2025, up $11.0 million, or 40.1%, from $27.5 million for the same period in 2024[158] - Cost of care (excluding depreciation and amortization) for the three months ended March 31, 2025, was $69.5 million, an increase of $10.4 million, or 17.6%, compared to $59.1 million for the same period in 2024[154] - Total operating expenses for the nine months ended March 31, 2025, were $659.9 million, an increase of $77.1 million from $582.8 million for the same period in 2024[152] - Corporate, general and administrative expenses increased by $12.5 million, or 15.3%, to $94.2 million for the nine months ended March 31, 2025, compared to $81.7 million for the same period in 2024[159] Net Loss and Financial Position - Net loss attributable to InnovAge Holding Corp. for the three months ended March 31, 2025, was $11.4 million, compared to a net loss of $5.9 million for the same period in 2024[149] - Net loss attributable to the company was $30.3 million for the nine months ended March 31, 2025, compared to a net loss of $21.0 million for the same period in 2024[173] - The net loss margin increased to (4.8)% for the nine months ended March 31, 2025, compared to (3.7)% for the same period in 2024[173] Cash Flow and Debt - As of March 31, 2025, the company had cash and cash equivalents of $60.5 million, an increase of $3.6 million from June 30, 2024[188] - The company had $63.1 million of debt outstanding as of March 31, 2025, excluding $60.9 million under the Term Loan Facility, which matures on March 8, 2026[190] - For the nine months ended March 31, 2025, net cash provided by operating activities was $23.9 million, a significant increase of $62.6 million compared to a net cash used of $38.8 million in the same period of 2024[198] - The company incurred $0.4 million in costs associated with organizational restructure for the nine months ended March 31, 2025, and $2.6 million for third-party consultants in the same period of 2024[198] - The interest rate on the Term Loan Facility was 6.14% as of March 31, 2025, with variable interest rates exposing the company to market risk[207] Strategic Initiatives and Future Outlook - The company plans to invest in its centers and value-based care model to support long-term growth, expecting expenses to rise in the short term[137] - The company plans to continue investing in resources and initiatives to provide necessary and quality services to participants[189] - The company anticipates continued enrollment processing delays and eligibility gaps due to state-specific procedures, particularly in California[130] - The company does not anticipate paying any cash dividends in the foreseeable future, intending to retain available funds for business development and debt repayment[197] - Inflation has not had a material effect on the company's operating results, although future inflation could impact financial conditions[211]

Financial Data and Key Metrics Changes - The company reported revenue of $218.1 million, representing a 13% year-over-year increase from $193.1 million in the same quarter last year [8][23] - Adjusted EBITDA was $10.8 million, with a margin of 4.9%, significantly improving from $3 million in the third quarter of fiscal year 2024 [9][30] - The net loss for the quarter was $11.1 million, compared to a net loss of $6.2 million in the same quarter last year [29] Business Line Data and Key Metrics Changes - Census grew to approximately 7,530 participants, reflecting a 10% annual increase [10][23] - Center level contribution was $40.7 million, with an 18.7% margin, improving by approximately 110 basis points year-over-year [8][27] - External provider costs were $107.9 million, a 7.9% increase compared to the same quarter last year, driven by an increase in member months [25][26] Market Data and Key Metrics Changes - The increase in member months was primarily due to growth in existing California and Colorado centers, along with new centers in Florida [24] - The company experienced a modest sequential growth in census due to seasonal headwinds during Medicare's Annual Enrollment Period [12] Company Strategy and Development Direction - The company is focused on operational excellence and greater organizational efficiency, aiming to build a scalable, tech-enabled platform for sustainable growth [11][19] - The transformation efforts are described as more ambitious than previous improvement initiatives, with a comprehensive approach to reimagine operations and value creation [11][20] - The company is actively engaging with policymakers to advocate for the PACE model, emphasizing its value for seniors and the healthcare system [7][47] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate a healthcare environment marked by policy uncertainty, reaffirming fiscal year 2025 earnings guidance [6][33] - The company is optimistic about the long-term value of the PACE model, which is seen as resilient in uncertain policy environments [20][21] - Management highlighted the importance of maintaining strong cost discipline while delivering quality outcomes for participants [14][19] Other Important Information - The company has successfully integrated pharmacy services into its clinical model, which is expected to enhance medication adherence and reduce costs [18] - The flu vaccination rate for participants is reported at 77%, significantly above the national average for seniors [15] Q&A Session Summary Question: Initial 2026 guidance and Medicare/Medicaid rate development - Management indicated that it is early for 2026 guidance but expects reasonable Medicare rates and some positive indications for Medicaid rates [36][38] Question: Changes in pharmacy utilization trends - Management noted no significant changes in pharmacy utilization trends, emphasizing that their reimbursement model differs from traditional Medicare Advantage [42][43] Question: Engagement with regulators regarding PACE - Management confirmed increased engagement with regulators, focusing on the value of PACE and the populations served, while addressing potential risks related to eligibility and state budgets [46][49] Question: De novo losses and enrollment trends - Management reported that de novo losses are tracking with expectations, with positive momentum in new markets [66][68] Question: Cost of care and investments - Management acknowledged increased costs due to insourcing certain services but expects a more normalized growth rate going forward [73][75]

Financial Performance - Total revenue for the fiscal third quarter 2025 was $218.1 million, an increase of approximately 13.0% compared to $193.1 million in the same quarter of fiscal year 2024[4] - Net loss for the quarter was $11.1 million, compared to a net loss of $6.2 million in the third quarter of fiscal year 2024, resulting in a net loss margin of 5.1%[6] - Adjusted EBITDA for the quarter was $10.8 million, an increase of $7.8 million compared to $3.0 million in the third quarter of fiscal year 2024, with an Adjusted EBITDA margin of 4.9%[6] - Center-level Contribution Margin was $40.7 million, a 19.9% increase from $34.0 million in the third quarter of fiscal year 2024[6] - Total revenues for the three months ended March 31, 2025, increased to $218,142,000, up 13.5% from $193,071,000 in the same period of 2024[21] - Capitation revenue for the nine months ended March 31, 2025, rose to $631,293,000, compared to $563,490,000 for the same period in 2024, reflecting a growth of 12.0%[21] - Operating loss for the three months ended March 31, 2025, was $10,158,000, compared to a loss of $5,793,000 in the same period of 2024, indicating a deterioration of 75.0%[21] - Net loss attributable to InnovAge Holding Corp. for the three months ended March 31, 2025, was $11,378,000, compared to a loss of $5,887,000 in the same period of 2024, representing an increase of 93.5%[21] - For the three months ended March 31, 2025, the net loss was $11,133 thousand, compared to a net loss of $6,184 thousand for the same period in 2024, reflecting an increase of 79%[25] - Adjusted EBITDA for the three months ended March 31, 2025, was $10,792 thousand, representing an adjusted EBITDA margin of 2.8%, down from 3.7% in the same period of 2024[25] - The adjusted EBITDA for the nine months ended March 31, 2025, was $23,136 thousand, with an adjusted EBITDA margin of 3.0%, compared to 2.2% for the same period in 2024[25] Cash and Assets - The company ended the quarter with $60.5 million in cash and cash equivalents and $41.3 million in short-term investments, with $77.3 million in debt[6] - Total current assets as of March 31, 2025, were $176,183,000, slightly up from $173,142,000 as of June 30, 2024[20] - Cash and cash equivalents at the end of the period were $60,466,000, compared to $54,109,000 at the end of the same period in 2024, showing an increase of 11.0%[23] - The company reported a net cash provided by operating activities of $23,865,000 for the nine months ended March 31, 2025, compared to a net cash used of $38,771,000 in the same period of 2024[23] Liabilities and Equity - Total liabilities increased to $268,943,000 as of March 31, 2025, from $247,853,000 as of June 30, 2024, marking an increase of 8.5%[20] - Total stockholders' equity decreased to $245,605,000 as of March 31, 2025, from $277,608,000 as of June 30, 2024, a decline of 11.5%[20] Participant Metrics - The census of participants increased to approximately 7,530 compared to 6,820 participants in the third quarter of fiscal year 2024[6] - Total Member Months guidance for the full fiscal year 2025 is between 86,000 and 89,000[7] Future Guidance - Full fiscal year 2025 total revenue guidance is between $815 million and $865 million[7] Legal and Other Costs - The company incurred litigation costs and settlements of $13,277 thousand for the three months ended March 31, 2025, significantly higher than $897 thousand in the same period of 2024[25] - Interest expense, net for the three months ended March 31, 2025, was $1,160 thousand, compared to $1,022 thousand for the same period in 2024, indicating an increase of 14%[25] - The company reported asset impairments and loss on sale of assets amounting to $144 thousand for the three months ended March 31, 2025[25] Business Strategy - The company is focused on building a PACE platform that delivers better outcomes for participants and generates savings for the healthcare system[3] Adjustments and Revisions - The company has revised the calculation for Adjusted EBITDA to include the impact of investment income effective for the year ended June 30, 2024, which may affect future financial presentations[25]

Core Viewpoint - InnovAge Holding Corp. reported strong revenue growth but faced increased losses in its fiscal third quarter ended March 31, 2025, indicating challenges in cost management despite a growing participant base [2][3]. Financial Results - Total revenues for the third quarter reached $218.1 million, a 13.0% increase from $193.1 million in the same quarter of the previous year [3][22]. - Loss Before Income Taxes was $11.1 million, up 72.6% from a loss of $6.4 million in the prior year [3][22]. - Net loss was $11.1 million, compared to a net loss of $6.2 million in the same quarter of the previous year, with a net loss margin of 5.1%, an increase of 1.9 percentage points [3][22]. - Adjusted EBITDA was $10.8 million, significantly up from $3.0 million in the same quarter of the previous year, with an adjusted EBITDA margin of 4.9% [3][22]. Operational Metrics - The company served approximately 7,530 participants, an increase from 6,820 participants in the same quarter of the previous year [3][10]. - Center-level Contribution Margin was $40.7 million, a 19.9% increase compared to $34.0 million in the same quarter of the previous year [3][22]. Cash and Debt Position - As of March 31, 2025, InnovAge had $60.5 million in cash and cash equivalents and $41.3 million in short-term investments, with total debt of $77.3 million [3][19]. Full Fiscal Year 2025 Financial Guidance - The company expects total revenues for the fiscal year to be between $815 million and $865 million, with adjusted EBITDA projected between $24 million and $31 million [5][6]. Leadership Changes - Dr. Richard Feifer, the Chief Medical Officer, departed the company effective April 25, 2025, to pursue other opportunities [4].

Core Viewpoint - InnovAge Holding Corp. is actively building legislative support for the PACE program, which is recognized for its high-quality, low-risk, and cost-saving benefits for senior care [1][2][3] Group 1: PACE Program Overview - The PACE program is currently available in 33 states and the District of Columbia, primarily funded through Medicare and Medicaid, providing comprehensive care to seniors [1] - Enrolled seniors receive a wide range of services including in-home care, transportation, primary and specialty care, meals, therapy, and social activities [1] Group 2: Cost-Effectiveness and Outcomes - PACE organizations function as providers, payors, and care delivery systems, leading to improved health outcomes and participant satisfaction while saving costs for federal and state partners [2] - PACE participants experience 44% fewer preventable hospitalizations compared to dually eligible Medicaid nursing home residents, demonstrating its effectiveness [3] - The program saves state governments an average of $6,000 per person annually in Medicaid spending compared to nursing homes [3] Group 3: Growth and Recognition - The PACE model is gaining recognition for its outcomes and cost-effectiveness, with the highest growth rate in its history as more states and providers seek to expand the program [3] - The Federal Department of Health and Human Services identified PACE as a consistently high performer in its 2021 report [3] Group 4: Company Profile - InnovAge is a leader in managing care for high-cost, frail seniors through the PACE program, aiming to enable older adults to age independently in their homes [4] - As of December 31, 2024, InnovAge served approximately 7,480 participants across 20 centers in six states [4]

Core Viewpoint - InnovAge Holding Corp. is a leader in providing healthcare programs for frail, predominantly dual-eligible seniors through the PACE model, emphasizing patient-centered care and cost reduction [1][2]. Group 1: Company Overview - InnovAge serves approximately 7,480 participants across 20 centers in six states as of December 31, 2024 [2]. - The company's mission focuses on enabling older adults to age independently in their homes while improving care quality and reducing high-cost care utilization [2]. Group 2: Upcoming Events - Patrick Blair, CEO, and Ben Adams, CFO of InnovAge will present at the KeyBanc Capital Markets Healthcare Forum on March 18, 2025, at 3:45 p.m. PT [1]. - The event will be available via live webcast, with access provided through the investor relations section of the company's website [1].

Core Insights - InnovAge Holding Corp. is a leader in providing comprehensive healthcare programs for frail, predominantly dual-eligible seniors through the PACE model [1][2] - The company aims to enable older adults to age independently in their homes while improving care quality and reducing high-cost care utilization [2] Company Overview - InnovAge serves approximately 7,480 participants across 20 centers in six states as of December 31, 2024 [2] - The company's patient-centered care model is designed to benefit all stakeholders, including participants, families, providers, and government payors [2] Upcoming Events - Patrick Blair, CEO, and Ben Adams, CFO of InnovAge will speak at the KeyBanc Capital Markets Healthcare Forum on March 18, 2025, at 3:45 p.m. PT [1]