InnovAge Reports Strong Q2 Earnings, Raises Fiscal 2026 Guidance

The healthcare services company specializing in senior care sees continued momentum across its business.

Published on Feb. 6, 2026

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InnovAge (NASDAQ:INNV) reported fiscal second-quarter 2026 results that management said reflected continued momentum across the business, driven by improvements in revenue integrity, medical cost management, and operating efficiency. The company posted total revenue of $239.7 million, center-level contribution margin of $52.8 million, adjusted EBITDA of $22.2 million, and net income of $11.8 million. InnovAge also raised its fiscal 2026 guidance, citing continued operational improvement, better-than-expected Medicaid reinstatements, higher Medicaid rates, and less effective Medicare risk scores.

Why it matters

InnovAge's strong Q2 performance and raised guidance demonstrate the company's ability to effectively manage costs and drive growth in its PACE (Program of All-Inclusive Care for the Elderly) model, which integrates medical care, social services and long-term care for seniors eligible for both Medicare and Medicaid. This is particularly important as the U.S. population continues to age and the demand for comprehensive senior care services increases.

The details

InnovAge reported a 14.7% year-over-year increase in revenue to $239.7 million, driven by higher member months and higher capitation rates. The company's center-level contribution margin improved to 22% from 17.7% a year earlier, while adjusted EBITDA increased to $22.2 million from $5.9 million. InnovAge cited lower external provider costs, decreased permanent nursing facility utilization, and the transition to in-house pharmacy services as factors driving the margin improvement. The company also reported positive cash flow from operations of $21.4 million in the quarter.

  • For the quarter ended Dec. 31, 2025, InnovAge reported its fiscal Q2 2026 results.
  • InnovAge achieved an adjusted EBITDA margin of 9.2% during the quarter, reaching the company's intermediate-term target range of 8% to 9%.
  • The company raised its fiscal 2026 guidance, citing continued operational improvement, better-than-expected Medicaid reinstatements, higher Medicaid rates, and less effective Medicare risk scores.

The players

InnovAge

A healthcare services company that specializes in caring for seniors through the Program of All-Inclusive Care for the Elderly (PACE).

Patrick Blair

CEO of InnovAge.

Ben Adams

CFO of InnovAge.

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