InnovAge (INNV) - 2025 Q3 - Quarterly Results

Financial Performance - Total revenue for the fiscal third quarter 2025 was $218.1 million, an increase of approximately 13.0$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$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$10,158,000, compared to a loss of $5,793,000 in the same period of 2024, indicating a deterioration of 75.0$11,378,000, compared to a loss of $5,887,000 in the same period of 2024, representing an increase of 93.5$11,133 thousand, compared to a net loss of $6,184 thousand for the same period in 2024, reflecting an increase of 79$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$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]