InnovAge (INNV) investor relations material

Business model and market positioning

• Delivers fully integrated, value-based care for high-acuity, dual-eligible seniors, enabling independent living and reducing nursing home admissions.

• Operates the only scaled, multi-state PACE platform with advanced technology and operating capabilities.

• Controls both payor and provider functions, assuming full risk for Medicare and Medicaid services, including supportive housing.

• Serves over 8,000 participants across 20 centers in 6 states, with a $265B addressable market and 2.3M eligible lives.

• Demonstrates consistent growth and profitability, supported by bipartisan policy tailwinds and a large, underpenetrated market.

Operational performance and financial results

• Achieved a 12.7% revenue CAGR from 3QFY23 to 2QFY26, with revenues rising from $172.5M to $239.7M.

• Adjusted EBITDA margin reached 9.2% in 2QFY26, with $58.9M in operating cash flow (TTM as of Dec 2025).

• Center-level contribution margin expanded to 20.3% by 2QFY26, reflecting operational leverage and efficiency gains.

• Fiscal 2026 guidance projects $925M–$950M in revenue and $70M–$75M in adjusted EBITDA.

• Net income margin improved to 4.9% in 2QFY26, driven by insourcing, technology, and data-driven efficiencies.

Care model and outcomes

• Provides comprehensive, interdisciplinary care with high patient engagement and a concierge PCP model.

• Participants average >11 interdisciplinary team touchpoints and 2–7 center visits per month.

• Achieves 10% lower inpatient admission rates and 40% lower 30-day readmission rates versus benchmarks.

• Maintains voluntary disenrollment rates below 7%, less than half of Medicare Advantage rates.

• Delivers 12% lower costs compared to similar Medicaid populations, with most participants remaining independent.