InnovAge (US:INNV)2025-11-04 21:08Financial Performance - Total revenues for the first quarter of fiscal 2026 were $236.1 million, a 15.1% increase from $205.1 million in the same period of fiscal 2025[4] - Income before income taxes was $7.9 million, a significant increase of approximately 249.2% compared to a loss of $5.3 million in the first quarter of fiscal 2025[4] - Net income for the quarter was $7.7 million, compared to a net loss of $5.7 million in the first quarter of fiscal 2025[7] - Adjusted EBITDA reached $17.6 million, an increase of $11.2 million from $6.5 million in the first quarter of fiscal 2025[7] - Adjusted EBITDA margin for the quarter was 7.5%, an increase of 4.3 percentage points from 3.2% in the first quarter of fiscal 2025[7] - Net income margin was 3.2%, an increase of 6.0 percentage points compared to a net loss margin of 2.8% in the first quarter of fiscal 2025[7] - Operating income for the three months ended September 30, 2025, was $8,289 thousand, compared to an operating loss of $4,896 thousand in the same period of 2024[19] - For the three months ended September 30, 2025, total revenues reached $236.1 million, an increase from $205.1 million for the same period in 2024, representing a growth of approximately 15.1%[35] - Capitation revenue for the three months ended June 30, 2025, was $852.4 million, with total revenues amounting to $853.7 million, indicating a strong performance in revenue generation[35] Cash and Investments - The company ended the quarter with $67.1 million in cash and cash equivalents and $42.3 million in short-term investments, with $71.5 million in debt[7] - Cash and cash equivalents at the end of the period increased to $67,157 thousand from $39,032 thousand year-over-year[22] - The company reported a net cash provided by operating activities of $3,924 thousand for the three months ended September 30, 2025, compared to a net cash used of $7,516 thousand in the same period of 2024[22] Participant Metrics - The census of participants increased to approximately 7,890, compared to 7,210 participants in the first quarter of fiscal 2025[7] Liabilities and Assets - Total current liabilities decreased to $138,489 thousand as of September 30, 2025, down from $164,807 thousand as of June 30, 2025[18] - Accounts receivable, net, decreased to $23,174 thousand from $36,373 thousand, indicating improved cash collection[18] - Total assets decreased to $510,234 thousand as of September 30, 2025, from $526,851 thousand as of June 30, 2025[18] Costs and Expenses - External provider costs for the three months ended September 30, 2025, were $108.9 million, slightly up from $107.2 million in the same period of the previous year[35] - The company reported an impairment loss of $2.6 million for the investment in DispatchHealth Holdings Inc. for the three months ended June 30, 2025[32] - The company incurred $2.1 million in costs associated with organizational restructuring and executive severance for the three months ended June 30, 2025[31] - Loss before income taxes for the three months ended June 30, 2025, was $34.0 million, representing a loss of 4.0% of total revenue[35] - The company experienced a loss on assets held for sale amounting to $104,000 for the three months ended September 30, 2025[35] Business Initiatives - The company is actively pursuing business optimization initiatives, which include one-time investments aimed at enhancing technology and compliance systems[31] Guidance - Full fiscal year 2026 revenue guidance is set between $900 million and $950 million[6] Contribution Margin - Center-level contribution margin was $51.4 million, up 48.7% from $34.5 million in the first quarter of fiscal 2025[7] - The Center-Level Contribution Margin for the three months ended September 30, 2025, was $51.4 million, which is 21.8% of total revenue, compared to 16.8% for the same period in 2024[35]