InnovAge: Operational Momentum Is Winning Out Over The Risks

InnovAge Holding Corp. remains a Buy as profitability and cash flow have improved, despite shares rising over 30%. INNV's fiscal 2026 revenue grew 15.9% to $989.7M, with adjusted EBITDA margin expanding to 9.6% and strong cash generation. Management forecasts 2027 revenue of $1.05–$1.085B and adjusted EBITDA of $105–$115M, prioritizing capacity utilization over aggressive new builds. INNV stock risks include heavy revenue concentration in California and Colorado, regulatory changes, and ongoing legal/compliance issues, but growth and margin expansion support the premium valuation. InnovAge Holding Corp. ( INNV ) is the largest provider of PACE in the U.S. Through this model, the company coordinates medical, pharmacy, transportation, and long-term care services for frail seniors, most of whom are eligible for both Medicare and