InnovAge Raises FY26 Guidance After Q3 Revenue Jumps 15.5% to $251.9M
InnovAge reported Q3 revenue of $251.9 million, up 15.5% year-over-year, with center-level contribution margin rising 49.8% to $61.0 million (24.2% margin). Net loss widened to $29.9 million (11.9% margin) as Adjusted EBITDA climbed to $30.5 million (12.1% margin), prompting raised full-year revenue and Adjusted EBITDA guidance.
1. Q3 Financial Results
InnovAge generated total revenues of $251.9 million for the fiscal third quarter, representing a 15.5% increase from $218.1 million a year earlier. Net loss expanded to $29.9 million, or $0.22 per share, compared to a $11.1 million loss a year ago, driving net loss margin to 11.9%.
2. Margin and Operational Performance
Center-level contribution margin rose 49.8% to $61.0 million, improving margin to 24.2% from 18.7% in the prior year. Adjusted EBITDA increased $19.7 million to $30.5 million, lifting its margin to 12.1%, supported by a census increase to approximately 8,050 participants.
3. Liquidity and Balance Sheet
The Company ended the quarter with $95.5 million in cash and cash equivalents plus $43.1 million in short-term investments, against $69.4 million in debt under its term loan, revolving credit facility and lease obligations. This liquidity position supports ongoing reinvestment in clinical teams, technology and quality capabilities.
4. Full-Year Guidance Revision
Based on year-to-date performance, InnovAge raised full-year fiscal 2026 revenue guidance to $950–975 million and Adjusted EBITDA guidance to $85–90 million, while maintaining census and total member months forecasts. The revised outlook reflects confidence in sustained operational improvements and investment payoffs.