InnovAge Holding Corp delivered a solid top-line result for fiscal Q2 2025, with total revenues of $209 million, up 1.9% sequentially and 10.6% year-over-year, driven by higher member months and ongoing center expansion. Census rose to ~7,480 participants (up ~4% QoQ and ~10% YoY), underpinning continued organic growth in existing California and Colorado centers and the ramp of Florida de novo centers and Crenshaw in California. Center-level contribution margin improved to 17.7% (from 16.8% in Q1 2025), reflecting better cost control at the center level even as the company continues to incur higher operating expenses tied to growth and the de novo center ramp.
Despite the revenue strength, InnovAge reported a net loss of $13.5 million for the quarter and Adjusted EBITDA of $5.9 million, implying an EBITDA margin of roughly 2.8%. The company also recognized an $8.5 million impairment related to halting the Louisville de novo project, together with ongoing de novo losses of $4.0 million for the quarter. Management reaffirmed fiscal 2025 guidance: ending census of 7,300–7,750, member months of 86,000–89,000, total revenue of $815–$865 million, Adjusted EBITDA of $24–$31 million, and de novo losses in the $18–$20 million range. Management attributes near-term variability to enrollment and redetermination processing delays in California and to the seasonality inherent in PACE enrollments, while signaling meaningful upside from the technology-first operating model and in-sourced capabilities (notably the Denver-area pharmacy acquisition) that are intended to lift cost efficiency and care integration over the 12–18 month horizon.
Key catalysts cited by management include Medicaid rate increases in California and Pennsylvania (mid-to-high single-digits effective Jan 1, 2025), ongoing retention initiatives for Medicare enrollment, and a broader push to reimagine core processes (orders, scheduling, transportation, and payer capabilities) through Epic integration and data-driven network optimization. The company also emphasized expansion opportunities in the PACE space as a backdrop for potential future M&A and a strengthened national footprint."