Core Viewpoint - Halper Sadeh LLC is investigating potential breaches of fiduciary duties by certain officers and directors of InnovAge Holding Inc. [1] Group 1: Investigation Details - The investigation focuses on whether the officers and directors acted in the best interests of shareholders [1] - Shareholders who acquired InnovAge stock on or before March 4, 2021, may have options for seeking corporate governance reforms [1] Group 2: Potential Outcomes for Shareholders - Possible outcomes include the return of funds to the company, a court-approved financial incentive award, or other relief and benefits for shareholders [1]

Core Insights - InnovAge Holding Corp. will release its fiscal 2026 first quarter financial results on November 4, 2025, after market close [1] - A conference call to discuss the results will take place at 5 p.m. E.T. on the same day [1] Company Overview - InnovAge is a leader in providing comprehensive healthcare programs for frail, predominantly dual-eligible seniors through the PACE model [3] - 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 [3] - As of June 30, 2025, InnovAge served approximately 7,740 participants across 20 centers in six states [3]

Core Insights - InnovAge Holding Corp. (INNV) shares increased by 8.6% to $5.55, with a notable trading volume, reflecting a 12.3% gain over the past four weeks [1][2] Financial Performance Expectations - The upcoming fiscal 2026 first-quarter financial results are anticipated to show a revenue growth of 9.6% year-over-year, with earnings projected to rise by 125% [2][3] - The consensus EPS estimate for the quarter is $0.01, indicating a year-over-year increase of 125%, while revenues are expected to reach $224.83 million, up 9.6% from the previous year [3] Earnings Estimate Revisions - The consensus EPS estimate for InnovAge has been revised 100% higher in the last 30 days, suggesting a positive trend that typically correlates with stock price appreciation [4] - A strong correlation exists between earnings estimate revisions and near-term stock price movements, indicating potential for further strength in INNV [3][4] Industry Context - InnovAge is part of the Zacks Medical Services industry, which includes other companies like GeneDx Holdings Corp. (WGS), which experienced a 0.7% decline in the last trading session [4] - GeneDx Holdings has a consensus EPS estimate change of -4.7% over the past month, with a projected year-over-year EPS change of +600%, and currently holds a Zacks Rank of 3 (Hold) [5]

Core Viewpoint - InnovAge Holding Corp. (INNV) shows potential as a strong investment opportunity due to significant upward revisions in earnings estimates, indicating a positive earnings outlook and potential for continued stock price appreciation [1][2]. Earnings Estimate Revisions - The current quarter's earnings estimate is $0.01 per share, reflecting a +125.0% change from the previous year, with a 100% increase in the Zacks Consensus Estimate over the last 30 days due to one upward revision and no negative revisions [6][7]. - For the full year, the earnings estimate stands at $0.24 per share, representing a +209.1% change from the year-ago figure, with the consensus estimate increasing by 370% following similar upward revisions [7][8]. Analyst Sentiment - There is strong consensus among analysts regarding the positive revisions of earnings estimates for InnovAge, contributing to a favorable outlook for the company's stock price [3][9]. - The Zacks Rank system, which rates stocks from 1 (Strong Buy) to 5 (Strong Sell), has assigned InnovAge a Zacks Rank 2 (Buy), indicating strong potential for outperformance compared to the S&P 500 [9]. Stock Performance - InnovAge shares have appreciated by 12.3% over the past four weeks, suggesting investor confidence in the company's earnings growth prospects driven by the recent estimate revisions [10].

Core Insights - InnovAge Holding Corp. has appointed Meredith Delk as Executive Vice President and Chief Administrative Officer, effective September 30, 2025, to enhance its leadership in healthcare programs for seniors [1][2] Company Overview - InnovAge is a leader in providing comprehensive healthcare programs to frail, predominantly dual-eligible seniors through the Program of All-inclusive Care for the Elderly (PACE) [4] - The company aims to enable older adults to age independently in their homes while improving care quality and reducing high-cost care utilization [4] - As of June 30, 2025, InnovAge served approximately 7,740 participants across 20 centers in six states [4] Leadership Appointment - Meredith Delk brings over 20 years of healthcare leadership experience, previously leading one of the largest Medicaid PBMs in the country [2] - In her new role, Delk will oversee Pharmacy Solutions, Behavioral Health, Home Health, and Therapy service lines, as well as serve as Chief External Affairs officer [2] - Patrick Blair, CEO of InnovAge, emphasized Delk's expertise in pharmacy and external affairs as a strong fit for the company's goals [3] Experience and Background of Meredith Delk - Delk has extensive experience in government-sponsored programs and has worked with over 30 states on policy and delivery system transformations in Medicaid [3] - Prior to joining InnovAge, she served as Senior Vice President and General Manager at Prime Therapeutics and led government affairs teams at Magellan Health, Anthem, and Amerigroup Corporation [3]

Core Insights - InnovAge has been recognized as one of the top 15 organizations in the aging services category in the Fortune Best Workplaces in Aging Services ranking for 2025, highlighting its commitment to employee support and high-quality care for older adults [1][2] Company Overview - InnovAge is a leading provider of the Program of All-Inclusive Care for the Elderly (PACE), focusing on managing care for high-cost, frail, and predominantly dual-eligible seniors [4] - The company employs over 2,400 team members across multiple states and serves approximately 7,740 participants through 20 centers in six states as of June 30, 2025 [1][4] Employee Commitment - The recognition as a top workplace is attributed to the dedication of InnovAge's employees, who are described as the heart of the organization, committed to caring for seniors with dignity and respect [2] - InnovAge has been honored as a Great Place to Work® for the sixth time, reinforcing its ongoing dedication to its employees and mission [3] Care Model - InnovAge's patient-centered care model aims to improve the quality of care for participants while reducing the over-utilization of high-cost care settings, allowing older adults to age independently in their homes [4]

Core Insights - InnovAge Holding Corp. reported a quarterly loss of $0.01 per share, better than the Zacks Consensus Estimate of a loss of $0.02, representing an earnings surprise of +50.00% [1] - The company posted revenues of $221.42 million for the quarter ended June 2025, exceeding the Zacks Consensus Estimate by 2.58% and showing an increase from $199.4 million year-over-year [2] - InnovAge shares have increased by approximately 2.5% since the beginning of the year, while the S&P 500 has gained 10.4% [3] Financial Performance - Over the last four quarters, InnovAge has surpassed consensus EPS estimates only once [2] - The current consensus EPS estimate for the upcoming quarter is breakeven on revenues of $223.75 million, and for the current fiscal year, it is -$0.05 on revenues of $927.5 million [7] Market Outlook - The company's earnings outlook will be crucial for future stock performance, with mixed trends in estimate revisions noted prior to the earnings release [4][6] - InnovAge currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Context - The Medical Services industry, to which InnovAge belongs, is currently ranked in the bottom 41% of over 250 Zacks industries, which may impact stock performance [8] - ModivCare, another company in the same industry, is expected to report a significant quarterly loss, with a consensus EPS estimate revised 114% lower over the last 30 days [9]

Financial Data and Key Metrics Changes - Revenue for Q4 2025 was $221.4 million, an increase of 11% year-over-year [4] - Total revenue for FY 2025 was $853.7 million, up nearly 12% year-over-year [5] - Adjusted EBITDA for FY 2025 was $34.5 million, compared to $16.5 million in FY 2024, with a margin increase from 2.2% to approximately 4% [5][23] - Net loss for FY 2025 was $35.3 million, compared to a net loss of $23.2 million in FY 2024 [22] Business Line Data and Key Metrics Changes - Center-level contribution margin for FY 2025 was $153.6 million, with a margin of 18%, up 70 basis points from FY 2024 [5][20] - The census at the end of FY 2025 was approximately 7,740 participants, reflecting a 10% year-over-year increase [5][13] - Member months in Q4 2025 were 23,000, an increase of approximately 10.5% compared to Q4 FY 2024 [14] Market Data and Key Metrics Changes - The company experienced a 7% increase in external provider costs for FY 2025, primarily driven by an increase in member months [15] - The decrease in cost per participant was attributed to reduced utilization in inpatient and nursing facilities, as well as a transition to in-house pharmacy services [16][17] Company Strategy and Development Direction - The company is advocating for broader access to PACE services, including a Medicare-only option to expand its participant base [8] - The guidance for FY 2026 projects total revenue between $900 million and $950 million, with adjusted EBITDA expected to be between $56 million and $65 million [9][25] - The company is focused on improving operational efficiencies and leveraging technology to enhance care delivery and reduce costs [29] Management's Comments on Operating Environment and Future Outlook - Management noted that recent legislation has created uncertainty for value-based care models, particularly in Medicare Advantage and Medicaid [6] - The company expects to face headwinds from Medicaid redetermination processes impacting census growth in the first half of FY 2026 [54] - Management expressed confidence in achieving adjusted EBITDA margins of 8% to 9% over the next few years [9][41] Other Important Information - The company completed a share repurchase program, acquiring approximately 1,426,000 shares for $7.3 million [25] - The company ended FY 2025 with $64.1 million in cash and equivalents, and $41.8 million in short-term investments [24] Q&A Session Summary Question: Impact of member mix on margins and cost trends - Management indicated that the member mix has normalized and is balanced between community living and assisted living, which has implications for risk scores and revenue [31][32] Question: V-28 Medicare Advantage payment model implications - Management expects the transition to the V-28 model to be a headwind for revenue growth over the next couple of years [35][37] Question: Outlook for EBITDA margins and areas for leverage - Management confirmed that the guidance for margin expansion is reasonable, with a focus on both center-level margin and operating leverage [40][41] Question: Opportunities for automation and technology integration - Management is exploring AI-driven tools and partnerships to enhance operational efficiency and care quality [46][48]

Financial Data and Key Metrics Changes - Revenue for Q4 2025 was $221.4 million, an increase of 11% year-over-year [4] - Total revenue for FY2025 was $853.7 million, up nearly 12% year-over-year [5] - Adjusted EBITDA for FY2025 was $34.5 million, compared to $16.5 million in FY2024, with a margin increase from 2.2% to approximately 4% [5][23] - Net loss for FY2025 was $35.3 million, compared to a net loss of $23.2 million in FY2024 [22] Business Line Data and Key Metrics Changes - Center-level contribution margin for FY2025 was $153.6 million, with a margin of 18%, up 70 basis points from FY2024 [5][20] - The census at the end of FY2025 was approximately 7,740 participants, reflecting a 10% year-over-year increase [5][13] - Member months in Q4 2025 were 23,000, an increase of approximately 10.5% compared to Q4 FY2024 [14] Market Data and Key Metrics Changes - The company experienced a 10% year-over-year increase in census growth in FY2025 [9] - The guidance for FY2026 projects a census of 7,900-8,100 participants and member months of 91,600-94,400 [9][25] Company Strategy and Development Direction - The company aims to expand access to PACE services for seniors, advocating for new pathways such as a Medicare-only option [8] - The focus is on integrating care to manage costs effectively, with approximately 40% of care delivered directly at centers [7][11] - The company is investing in technology and operational improvements to enhance efficiency and scalability [10][29] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the complex environment due to recent legislation affecting value-based care models [6] - The company expects to face challenges from Medicaid redetermination processes impacting census growth in FY2026 [54] - The guidance for FY2026 reflects continued momentum, projecting total revenue of $900 million-$950 million and adjusted EBITDA of $56 million-$65 million [9][25] Other Important Information - The company incurred $431.2 million in external provider costs during FY2025, a 7% increase from FY2024 [15] - The company completed a share repurchase program, acquiring approximately 1,426,000 shares for $7.3 million [25] Q&A Session Summary Question: Impact of member mix on margins and cost trends - Management indicated that the member mix has normalized, balancing community and assisted living participants, which impacts risk scores and revenue [31][32] Question: V-28 Medicare Advantage payment model implications - Management expects the transition to the V-28 model to be a headwind for revenue growth over the next few years [35][37] Question: Outlook for EBITDA margins and margin expansion - Management confirmed expectations for continued margin expansion, driven by clinical value initiatives and operational improvements [40][44] Question: Opportunities for automation and cost efficiencies - Management is exploring AI-driven tools and partnerships to enhance operational efficiency and care quality [46][49] Question: Medicaid redetermination impact on census and member progression - Management clarified that the redetermination process will create a headwind in the first half of FY2026, but gross enrollment trends will remain stable [54][56]

Financial Data and Key Metrics Changes - Revenue for Q4 2025 was $221.4 million, an increase of 11% year-over-year [4] - Total revenue for FY 2025 was $853.7 million, up nearly 12% year-over-year [5] - Adjusted EBITDA for FY 2025 was $34.5 million, compared to $16.5 million in FY 2024, with a margin increase from 2.2% to approximately 4% [5][23] - Net loss for FY 2025 was $35.3 million, compared to a net loss of $23.2 million in FY 2024 [22] Business Line Data and Key Metrics Changes - Center-level contribution margin for FY 2025 was $153.6 million, with a margin of 18%, up 70 basis points from FY 2024 [5][19] - The census at the end of FY 2025 was approximately 7,740 participants, reflecting a 10% year-over-year growth [5][13] - Member months in Q4 2025 were 23,000, an increase of approximately 10.5% compared to Q4 FY 2024 [14] Market Data and Key Metrics Changes - The company experienced a 10% year-over-year increase in census for FY 2025 [9] - The company reported a sequential increase in member months of approximately 2% over Q3 FY 2025 [14] Company Strategy and Development Direction - The company aims to expand access to PACE services, advocating for new pathways such as a Medicare-only option [8] - The focus is on integrating care and improving clinical outcomes while managing costs effectively [7][11] - The company is investing in technology and talent to enhance operational efficiency and scalability [10][29] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the complex environment due to recent legislation affecting value-based care models [6] - The guidance for FY 2026 includes projected revenue of $900 million to $950 million and adjusted EBITDA of $56 million to $65 million [9][25] - Management expressed confidence in achieving adjusted EBITDA margins of 8% to 9% over the next few years [9][41] Other Important Information - The company incurred $431.2 million in external provider costs during FY 2025, a 7% increase compared to FY 2024 [15] - The company completed a share repurchase program, acquiring approximately 1,426,000 shares for $7.3 million [24] Q&A Session Summary Question: Impact of member mix on margins and cost trends - Management indicated that the member mix has normalized and is balanced, which may impact risk scores but supports growth and margin expansion [31][32] Question: V-28 payment model implications - Management expects the V-28 Medicare Advantage payment model to be a headwind over the next couple of years, but it is factored into guidance [34][36] Question: Outlook for EBITDA margins - Management confirmed expectations for continued margin expansion, driven by clinical value initiatives and operational improvements [40][41] Question: Opportunities for automation and technology - Management is exploring AI-driven tools and partnerships to enhance efficiency and quality of care [45][48] Question: Medicaid redetermination impact - Management clarified that the redetermination process will create a headwind in the first half of FY 2026, but gross enrollment trends will remain stable [54][56]