InnovAge Fiscal 2026 Profit Surges 175%, Shares Jump After Hours

InnovAge reported a 175% surge in adjusted EBITDA alongside double-digit revenue growth for fiscal 2026, prompting an after-hours stock rally as the healthcare provider enters what executives term its next operational phase. The results mark an improvement from the prior year as the company narrows its net losses and accelerates margin expansion.

"Fiscal 2026 was an exceptional year and a key milestone in our transformation," said Patrick Blair, Chief Executive, InnovAge, in a statement regarding the results. He noted that the company is now entering what leadership calls "InnovAge 3.0."

Financial Performance and Market Reaction

For the fiscal year, adjusted EBITDA climbed to $94.6 million, representing an increase of approximately 175% compared to the previous period. Total revenue for the company rose 15.9% to reach $989.7 million, according to an Investing.com earnings transcript report.

The financial recovery was underscored by a narrowed net loss, which shrank to $0.7 million for fiscal 2026 compared to a net loss of $35.3 million in fiscal 2025. Following the earnings release, InnovAge shares jumped 9.03% in after-hours trading to $11.47. This followed a 2.14% decline during regular trading hours, where the stock closed at $10.52.

Margin Drivers and Operating Efficiency

Executive leadership attributed the profitability gains to operational restructuring and cost discipline across the organization. The company advanced faster than anticipated toward its financial milestones.

"We are ahead of schedule on our long-term margin target," said Ben Adams, Chief Financial Officer, InnovAge, citing improvements in third-party care management, lower internal cost of care, and general and administrative efficiency.

G&A efficiency and optimized care delivery have allowed the organization to absorb scaling costs while expanding margins across its operating footprint.

Fiscal 2027 Guidance

Turning to fiscal 2027, InnovAge issued financial guidance projecting continued top-line and bottom-line expansion. The company expects total revenue to range between $1.05 billion and $1.085 billion.

Additionally, management forecasts adjusted EBITDA for fiscal 2027 to land between $105 million and $115 million, reflecting sustained momentum from the operational adjustments executed throughout the past fiscal year.