Short answer
InnovAge Holding Corp. (INNV) filed its fiscal 2026 10-K annual report with the SEC on Sep 9, 2026. It reported revenue of $990M (+15.9% year over year) and net income of −$3M.
- Top risk flagged: Regulatory risk: False Claims Act allegations with DOJ and Colorado AG; $37M accrual recorded Q4 FY26, investigation ongoing, may cause material losses or penalties
FY2026 key financial metrics · XBRL
- Revenue
- $990M
- +15.9% YoY
- Net income
- −$3M
- +91.6% YoY
- Operating margin
- 0.3%
- +3.8 pp YoY
- Gross margin
- 23.0%
- +5.0 pp YoY
- EPS (diluted)
- −$0.02
- +90.9% YoY
- ROE
- -1.1%
- +11.8 pp YoY
- Operating cash flow
- $65M
- +96.9% YoY
Source: XBRL data from the InnovAge Holding Corp. (INNV) FY2026 10-K on SEC EDGAR. USD.
InnovAge Holding Corp. FY2026 10-K analysis
AI summary of each section, grounded in the filing text
Business Overview
- Core business: All-inclusive, capitated healthcare delivery via PACE targeting high-cost, dual-eligible seniors to enable aging at home
- New emphasis on de novo centers launched in Florida (Tampa, Orlando) and joint ventures with Orlando Health and Tampa General Hospital in 2026
- Strategic shift: Increased focus on technology and data analytics investments to enhance care coordination and payor capabilities
- Quantitative: Served ~8,230 participants (largest US PACE provider), operating 20 centers across 6 states, with 2,500 employees (1,600+ clinical)
- Noteworthy: 2026 I-SAT participant satisfaction NPS of 52 vs national PACE average 59, demonstrating strong engagement despite growing complexity of participants
Management Discussion & Analysis
- Revenue $989.7M, up 15.9% YoY driven by $988.4M capitation revenue (16.0% increase, +$136.0M) from member growth and rate hikes
- Operating income $2.6M vs loss $(29.8)M; net loss $(0.7)M vs $(35.3)M; adjusted EBITDA margin 9.6% vs 4.0% driven by revenue growth and margin improvement
- Best segment PACE with Center-level Contribution Margin $227.8M, 23.0% of revenue vs $153.6M, 18.0% prior year; Senior Housing segment minimal, below reporting threshold
- Operating cash flow $64.7M, capex $12.3M, financing cash outflow $18.5M including share repurchases; debt $48.8M with $93.8M available under revolving credit
- FY27 risk from Medicaid rate reductions (e.g., Colorado) and California PACE moratorium; increasing care costs expected but partially offset by initiatives; management investing in growth and clinical value
Risk Factors
- Regulatory risk: False Claims Act allegations with DOJ and Colorado AG; $37M accrual recorded Q4 FY26, investigation ongoing, may cause material losses or penalties
- Macroeconomic threat: Labor shortages and California SB 525 wage increases raised FY26 care costs; 70.2% revenue from CA and CO exposes to state budget cuts
- Operational risk: California PACE application pause (Nov 2025-Nov 2027) limits new center openings and expansions, restraining CA market growth
- Competitive risk: Medicare Advantage Special Needs Plans and ACOs pose competition for participants; expansion into new states faces competitors with stronger local presence
- Financial risk: $48.8M outstanding Term Loan A debt with restrictive covenants may constrain operational flexibility and increase refinancing risk
Generated from the filing text; verify against the original. How to read a 10-K
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