InnovAge reported a solid top-line quarter for Q3 2025, delivering $218.1 million in revenue, up 13% year over year, and generating meaningful operating discipline through cost controls and an increasingly scalable PACE platform. Center-level contribution rose to $40.7 million with an 18.7% margin, supported by ongoing cost-management initiatives and a phased transformation program that the company says goes beyond prior improvement efforts. Adjusted EBITDA improved to $10.8 million (4.9% margin), more than triple the year-ago level, while census increased to approximately 7,530 participants, a 10% YoY gain. Net loss of $11.1â11.4 million and a base EPS of $(0.08) reflect transformational investments and de novo center ramp, as well as one-time items such as a stockholder lawsuit accrual totaling about $10.7 million in SG&A. Management reaffirmed full-year 2025 guidance, emphasizing ongoing transformation, cost discipline, and a shift toward a scalable, tech-enabled PACE platform that can better weather policy volatility. Importantly, InnovAge highlighted operational milestones including (i) flat external provider costs quarter over quarter at $108 million, with PMPM cost decline to $4,786 from $4,857 (Q2), (ii) a completed in-house pharmacy transition, (iii) resolving enrollment backlog in California, and (iv) a flu vaccination rate of 77% among participants, underscoring clinical leverage in cost control. The quarterly cash flow showed resilience with operating cash flow of $24.6 million and free cash flow of $21.7 million, supporting liquidity to fund de novo center investments and buybacks. Looking ahead, management projects ending census of 7,300â7,750 in FY2025, revenue of $815â$865 million, adjusted EBITDA of $24â$31 million, and de novo losses of $18â$20 million, indicating a trajectory toward profitability as transformation benefits accrue and scale expands.