← All companies ← INN Manual INOD → ← HIMS Health Care Providers & Services LFMDP →

INNV, InnovAge Holding Corp.

Health Care Providers & Services capital-intensive UnprofitableDistress / turnaround

We Are InnovAge is the leading healthcare delivery platform by number of participants focused on providing all-inclusive, capitated care to high-cost, seniors, many of whom are dual-eligible.

PACE is a fully-capitated managed care program, which serves the frail elderly, and predominantly dual-eligible, population in a community-based service model.

We deliver our participant-centered care through the InnovAge Platform (as defined herein), which is designed to bring high-touch, comprehensive, value-based care.

Latest annual: FY2025 10-K

INNV · InnovAge Holding Corp.

The business

What it sells, where the money comes from, the kind of company it is.

Revenue · FY2025

$854M

+11.8% YoY · 9% 5-yr CAGR

Vital signs · TTM, with 5-yr average

Revenue $949M 5-yr avg $728M

Operating margin −1.0% 5-yr avg −3.3%

ROIC −4% 5-yr avg −8%

Owner-earnings margin 4% 5-yr avg −1%

Free cash flow margin 4% 5-yr avg −2%

The business in brief

read the 10-K →

What this business is and what moves its needle, from its own SEC filings.

Situation: Unprofitable. No sustained operating profit across the record; an earnings multiple has nothing to rest on. What the record does show is revenue, the gross-margin trajectory, and the burn against the cash on hand. Distress / turnaround. Thin interest coverage, or operating cash burned against real debt, across the record. The balance sheet carries this situation; the debt schedule sets the clock.
What moves the needle: Operating margin has run around −3.0% through the cycle, the operating line deeply negative — so the lever is the path to a margin at all: revenue growth against the cost curve and the cash runway, not the level of a margin that isn't there yet. Read this kind of business on volume, payer mix and reimbursement. On its own account, the filing leans hardest on pricing power & competition, set against the numbers in what the filing emphasizes, below.
Is it a good business?: Return on capital has rarely cleared the cost of capital (median −6%, above 15% in 1 of 6 years). Owner earnings, the cash-based check, have been thin too. This is price-taker territory, where the balance sheet and the cycle matter more than any multiple; the rest is in the 10-K.

Every line is arithmetic on the company's filings, shown in full in the sections below.

The record

Ten years of arithmetic, read across the cycle.

The record, 2020–2025

realized figures from each filing · older years to the left

2020’20	2021’21	2022’22	2023’23	2024’24	2025’25	TTMTTMMar 2026
							Income statement
$567M	$638M	$699M	$688M	$764M	$854M	$949M	RevenueRevenue
10%	21%	15%	17%	15%	14%	17%	SG&A / revenueSG&A/rev
$51M	($12M)	($4M)	($49M)	($23M)	($30M)	($10M)	Operating incomeOp. inc.
9.0%	−1.9%	−0.6%	−7.2%	−3.0%	−3.5%	−1.0%	Operating marginOp. mgn
$26M	($44M)	($7M)	($41M)	($21M)	($30M)	($12M)	Net incomeNet inc.
							Cash flow & returns
$44M	($8M)	$27M	$20M	($37M)	$33M	$52M	Operating cash flowOp. cash
$11M	$12M	$14M	$15M	$19M	$20M	$18M	DepreciationDeprec.
$6M	$22M	$16M	$41M	($41M)	$36M	$39M	Working capital & otherWC & other
$12M	$18M	$38M	$23M	$8M	$6M	$10M	CapexCapex
2.1%	2.8%	5.5%	3.4%	1.0%	0.7%	1.0%	Capex / revenueCapex/rev
$32M	($20M)	$13M	$5M	($45M)	$27M	$43M	Owner earningsOwner earn.
5.6%	−3.1%	1.9%	0.7%	−5.9%	3.1%	4.5%	Owner earnings marginOE mgn
$32M	($25M)	($11M)	($3M)	($45M)	$27M	$43M	Free cash flowFCF
5.6%	−3.9%	−1.6%	−0.5%	−5.9%	3.1%	4.5%	Free cash flow marginFCF mgn
—	—	—	$0	$24M	$5M	$0	AcquisitionsAcquis.
18%	-5%	-2%	-16%	-7%	-10%	-4%	ROICROIC
26%	-13%	-2%	-14%	-8%	-13%	-5%	Return on equityROE
							Balance sheet
$113M	$201M	$184M	$173M	$103M	$106M	$139M	Cash & investmentsCash+inv
$46M	$33M	$36M	$24M	$48M	$36M	$29M	ReceivablesReceiv.
$29M	$32M	$51M	$55M	$55M	$77M	$106M	Accounts payablePayables
$17M	$221K	($15M)	($31M)	($7M)	($40M)	($77M)	Operating working capitalOper. WC
$167M	$251M	$241M	$215M	$173M	$176M	$203M	Current assetsCur. assets
$77M	$79M	$105M	$148M	$139M	$165M	$196M	Current liabilitiesCur. liab.
2.2×	3.2×	2.3×	1.4×	1.2×	1.1×	1.0×	Current ratioCurr. ratio
$116M	$124M	$124M	$124M	$140M	$142M	$142M	GoodwillGoodwill
$410M	$532M	$556M	$567M	$548M	$527M	$547M	Total assetsAssets
$212M	$75M	$72M	$69M	$65M	$60M	$58M	Total debtDebt
$99M	($126M)	($112M)	($105M)	($38M)	($46M)	($81M)	Net debt / (cash)Net debt
3.5×	-0.7×	-1.7×	—	—	—	-3.8×	Interest coverageInt. cov.
$101M	$335M	$332M	$296M	$269M	$235M	$229M	Shareholders’ equityEquity
0.1%	0.3%	0.5%	0.7%	0.9%	0.9%	0.7%	Stock comp / revenueSBC/rev
							Per share
135M	124M	136M	136M	136M	135M	136M	Shares out (diluted)Shares
$4.19	$5.16	$5.16	$5.07	$5.62	$6.31	$7.00	Revenue / shareRev/sh
$0.19	$-0.36	$-0.05	$-0.30	$-0.16	$-0.22	$-0.09	EPS (diluted)EPS
$0.24	$-0.16	$0.10	$0.04	$-0.33	$0.20	$0.31	Owner earnings / shareOE/sh
$0.24	$-0.20	$-0.08	$-0.02	$-0.33	$0.20	$0.31	Free cash flow / shareFCF/sh
$0.09	$0.14	$0.28	$0.17	$0.06	$0.05	$0.07	Cap. spending / shareCapex/sh
$0.75	$2.71	$2.45	$2.19	$1.98	$1.74	$1.69	Book value / shareBVPS

Per-share growththe realized rate an owner's share compounded

	5-yr	5-yr
Revenue / share	+8.5%/yr	+8.5%/yr
Owner earnings / share	−3.6%/yr	−3.6%/yr
Capital spending / share	−12.0%/yr	−12.0%/yr
Book value / share	+18.4%/yr	+18.4%/yr

The year, in the company's words

the filing →

Verbatim from the 10-K's management discussion. Each sentence is shown only because its subject, direction, and stated figures check out against the filed numbers on this page. The words are the company's; the arithmetic is the record's.

Capitation revenue+11.8%
“Capitation revenue was $852.4 million for the year ended June 30, 2025, an increase of $89.8 million, or 11.8%, compared to $762.6 million for the year ended June 30, 2024. This increase was driven by a $78.2 million, or 10.3% increase in member months (as defined below under “Key Business Metrics and non-GAAP Measures – Total member months”) coupled with an $11.6 million, or 1.4%, increase in capitation rates.”
✓ figure matches the filed record

The record, charted

FY2020–2025

Each measure over its full record; the current point and the worst year marked.

Share count

135Mpeak FY2024

ROIC

−10%low FY2023

Owner earnings vs. net income

Owner earningsNet income

The accountant's number, and the cash an owner can take; the gap is the tell.

$27Mowner earningsvs.($30M)net incomelow FY2024

Where the cash went

ReinvestBuybacksDividendsAcquisitionsRetainedBeyond op. cash

Each year's outlays against its operating cash: the mix, and how it drifts. The hatched cap is spending beyond that year's operating cash — financed from the balance sheet or borrowing, not operations.

FY2020FY2025

Owner-earnings bridge

FY2021–FY2025cash-flow statement, SEC EDGAR →

Net income is the accountant's number; owner earnings is the cash an owner could take out. The walk between them, off the cash-flow statement, and whether the gap is widening or holding.

In fiscal 2025 the business turned a $30M loss into $27M of owner earnings: more cash than the profit line showed, after the non-cash charges and the capital it put back in.

	FY2025	FY2024	FY2023	FY2022	FY2021
Reported net income	($30M)	($21M)	($41M)	($7M)	($44M)
Depreciation & amortizationnon-cash charge added back	+$20M	+$19M	+$15M	+$14M	+$12M
Stock-based compensationreal costnon-cash, but a real cost	+$8M	+$7M	+$5M	+$4M	+$2M
Working capital & othertiming of cash in and out, other non-cash items	+$36M	−$41M	+$41M	+$16M	+$22M
Cash from operations	$33M	($37M)	$20M	$27M	($8M)
Maintenance capital expenditurethe spending needed just to hold position and volume	−$6M	−$8M	−$15M	−$14M	−$12M
Owner earnings	$27M	($45M)	$5M	$13M	($20M)
Growth capital expenditurediscretionary; spent to get bigger, not to stand still	—	—	−$8M	−$24M	−$5M
Free cash flow	$27M	($45M)	($3M)	($11M)	($25M)
Owner-earnings marginowner earnings ÷ revenue	3%	-6%	1%	2%	-3%

Owner earnings is the cash an owner could pull out without starving the business: operating cash less the capital it must spend to hold its position . The cash-flow statement also adds stock comp back as non-cash, but it is a real cost paid in shares; counted as the expense it is (less $8M), owner earnings is nearer $19M.

Maintenance capex is estimated as depreciation where a growing business invests above it; free cash flow is the figure the scorecard's free-cash margin reads.

III

Quality & stewardship

Returns, the balance sheet, capital allocation, and pay.

Owner’s Scorecard

FY2025 10-K · source on SEC EDGAR →

Will it survive?

Can it pay its interest? -11.8×

Does not cover its interest

Operating income ($30M) ÷ interest expense $3M

What this means
A full year of operating profit didn't cover the interest bill. This is the zombie zone: the business depends on refinancing, asset sales, or forbearance to service its debt.
How heavy is the debt, net of cash? +$46M

Net cash

Cash $64M + ST investments $42M − debt $60M

What this means
Cash and short-term investments exceed every dollar of debt by $46M, on net the company owes nothing, and can act from strength when others can't. Net debt is the leverage figure that matters: the cash is already set against the debt. Strategic or illiquid investments aren't counted here.
How long is cash tied up? —

Not enough data

What this means
The filing data didn't include the inputs for this check.

Is it a good business?

Return on invested capital -7%

Below average through the cycle

6-yr median, range -16%–18%; -10% latest = NOPAT ($24M) ÷ invested capital $231M

Industry peers: median 4%

What this means
The rate the business earns on the money tied up in it, Buffett's north star, because over time a stock tracks the ROIC beneath it. Above ~15% sustained hints at a moat; a return below the cost of capital (~8%) erodes value as a business grows rather than building it — the test Buffett weighs most. The headline is the median of the last 6 years (it ran -10% most recently), so one peak or trough year doesn't set the verdict. Asset-light businesses (R&D expensed, little capital) read artificially high, pair this with Owner Earnings.
Owner-earnings margin 1%

Thin through the cycle

6-yr median margin, range -6%–6%; latest $27M = operating cash $33M − maintenance capex $6M

Industry peers: median 7%

What this means
What an owner could take out without starving the business: operating cash less the maintenance capital it must spend to hold its position — Buffett's owner earnings. That's 3% of revenue this year, a 1% median across 6 years. Treating stock comp as the real expense it is (less $8M of SBC) leaves $19M.
Are earnings backed by cash? $33M

Loss, but cash-generative

Net income ($30M) · cash from operations $33M

What this means
The company reported a net loss, so a conversion ratio isn't meaningful. What matters then is whether operations still threw off cash, here, they did.

How is the cash used?

Where do the earnings go? 327%

Returned more than it generated

Dividends + buybacks $87M ÷ Owner Earnings $27M

What this means
The company returned more than it generated: against $27M of Owner Earnings, $87M (327%) went back to shareholders, $10M dividends, $78M buybacks — the excess came from the balance sheet or borrowing, not the year's operations. Net of $8M stock comp, the real buyback was about $70M. Sustained, that pattern draws down cash or adds debt; the net-debt line above shows where it stands.
Investing or harvesting? 0.32×

Harvesting

Capex $6M ÷ depreciation $20M

What this means
Descriptive, not a grade. Above ~1× means investing faster than assets wear out (growth, or, sustained for years, today's earnings carrying less depreciation than tomorrow's will). Below means spending less than it's wearing out (efficiency, or a melting asset base). The ratio won't tell you which; the filings will.

Graham’s defensive tests · 0 of 5 met

Graham’s numerical criteria for the defensive investor (The Intelligent Investor, ch. 14), run on the filings. A floor of safety, not a buy signal; many fine modern businesses fail his strictest liquidity rules by design.

Adequate size Miss

Revenue ≥ $2B · $854M

What this means
Big enough to weather a storm. Graham's 1972 floor was ~$100M of sales (≈ $700M today); we use a $2B revenue line as a conservative modern stand-in.
Strong liquidity Miss

Current ratio ≥ 2× · 1.07×

What this means
Current assets at least twice current liabilities, near-term bills covered without touching the business. Strict by design: many cash-rich modern firms run leaner and miss it, holding their cushion in longer-dated securities.
Conservative debt Miss

Debt ≤ working capital · $60M vs $11M WC

What this means
Graham's rule that borrowings not exceed net current assets. Capital-heavy and buyback-heavy firms routinely fail it, read it next to interest coverage, not alone.
Earnings stability Miss

A profit every year (6-yr record) · 5 loss years

What this means
Graham wanted earnings in each of the past ten years, the stability a defensive owner leans on.
Dividend record Miss

Uninterrupted dividends · 1 of 6 yrs

What this means
An unbroken dividend was Graham's mark of durability. He wanted twenty years; the filings show about ten, and a single suspension breaks the streak. Non-payers, many fine modern compounders, fall outside his defensive net by design.
Earnings growth —

Earnings +33% over the record · —

What this means
Earnings were negative early in the record, a growth rate isn't meaningful.
Moderate price —

P/E ≤ 15 and P/E × P/B ≤ 22.5 · decided by the price

What this means
Graham's valuation gate, the wall he kept between a sound business and a sound investment. Three-year average earnings are $-0.23/share (latest year $-0.22), the averaged base the calculator's gate runs on, and book value is $1.73/share. Enter a price in “What the price implies” just below for the P/E, P/B, and whether it clears. But this is the rule Buffett outgrew: there's no hard P/E law, and a wonderful business can deserve a far richer multiple if the thesis holds, treat it as the bargain-hunter's floor, not a verdict on the price.

Durability & moat, 2020–2025

Whether the record’s returns held, and what the capital reinvested earned.

Profitable years 1 of 6

What this means
Lost money in 5 year(s), look at what happened there before trusting the average.
Return on capital ≥ 15% 1 of 6 yrs

What this means
A moat shows up as a high return on invested capital that holds year after year, not one good vintage.
Operating margin 2% → −5% (3-yr avg ends)

In the filing’s words The filing attributes gains to higher prices, but the margin in the record has not followed — the claim outruns the result here.

What this means
Through the cycle the operating margin slipped — about 2% early to −5% lately, median −3% — competition or costs are biting in.
Reinvestment, incremental ROIC returns capital

What this means
The capital base barely grew: this business returns cash through dividends and buybacks rather than reinvesting. Judge it on the cash returned, not on compounding.
Worst year 2023 · −7.2% op. margin

What this means
Operations went underwater in 2023, understand why before trusting the good years.
Share count +0.0%/yr

What this means
Roughly flat share count, little dilution, little buyback.
Dividend record paid

What this means
Paid a dividend in 1 of the years on record.

Does AI threaten the moat?

Moderate contestability

AI is likely to reshape costs and some products here without clearly contesting or sparing the core moat; how the company itself frames it is the tell.

In its own filing Raised, but not as a competitor

The filing raises AI among its risks, but in other terms (security, regulation, energy or the like), not as a competitor to its product.

The question is whether a moat the record shows as durable outlasts a technology that lowers the cost of part of what the firm sells. The durability is read in the record above, the filing's own framing of AI beside it; the industry label decides nothing on its own.

Read from the filing's own risk factors, paired with the industry's structure under its SIC code; the durability is read above, the price below.

All figures as filed; the source filing is linked above.

Current Position

as of the latest quarter, Mar 31, 2026

Can the business pay what it owes this year, off the freshest balance sheet: the quality of the assets, the debt actually coming due, and what a low ratio means here.

Current assets$203M

Cash & short-term investments$139M
Receivables$29M
Other current assets$35M

Current liabilities$196M

Debt due within a year$3M
Accounts payable$106M
Other current liabilities$88M

Current ratio1.03×all current assets ÷ what's due · Graham looked for 2×

Quick ratio1.03×stricter: inventory excluded

Cash ratio0.71×strictest: cash alone against what's due

Working capital$7Mthe cushion left after near-term bills

Debt due this year vs. cash$3M due · $139M cash covered by cash on hand, no refinancing forced · both figures from the Mar 31, 2026 balance sheet

Revenue, latest quarter vs. a year ago+15.5%the freshest read on whether the business is still growing

Current ratio, recent quarters1.2× → 1.0×

Deeper floors

Tangible book value$84Mequity stripped of goodwill & intangibles

Net current asset value($86M)Graham's net-net: current assets less all liabilities

Debt incl. operating leases$83M$25M of it operating leases

Deferred revenue$275Kcustomer cash collected before delivery; operating float

From the company's latest filing.

How the cash was used, 2020–2025

Over the record, the business generated $80M of operating cash; how management split it reads as a cash returner, paying most of what it earns straight back to owners.

Reinvested$105M · 132%
Dividends$10M · 12%
Buybacks$78M · 97%

Returned to owners$87M
718% of the owner earnings the business produced over the span, $10M as dividends and $78M as buybacks.
Source of funding−$112M
Reinvestment and shareholder returns ran $112M beyond the operating cash the business generated, so the gap was financed off the balance sheet.
Average price paid for buybacks—
Buybacks ran $78M over the span, but the filings don't tag the share count needed to deduce the average price paid.
Net change in share count0.3%
The diluted count barely moved (135M to 136M): buybacks roughly offset the stock issued to staff.
Dividend record$0.08/sh
Paid in 1 of the years on record. It was never cut over the span.

Buybacks are gross of stock issued to staff; the share-count line above is the net of that, the figure that decides whether owners gained. The average price paid blends a year of purchases (and any accelerated repurchase), so it is close, not exact. The record of where the cash went and on what terms.

Acquisitions & goodwill

from the balance sheet & the 6-year cash-flow record

Goodwill grows only when a company acquires and falls only when it concedes it overpaid. The size of that bet, the cash put into buying rather than building, and how much has already been written off.

Goodwill & intangibles$146M28% of all assets; the premium carried on the balance sheet for businesses acquired

Against book equity60%goodwill is this share of book equity; the rest is the company’s own retained and paid-in capital

Cash spent acquiring$29Mover 6 years buying other businesses, against $105M of capital spent building

None written down over the record; the goodwill is still carried at full cost. That is the deals holding their value on the books so far; whether they keep doing so is the test an owner watches, since the write-down, when it comes, is the admission the price was too high.

Goodwill, acquired intangibles and equity from the latest balance sheet; acquisition spend and write-downs summed across the 6-year record, from the company's own filings.

Management, ownership & pay

read the proxy →

From the proxy: how much of the business the people running it own, and how they are paid.

Insider ownership1%
The stake all directors and executive officers hold together, per the 2025 proxy: skin in the game, the first thing Munger reads.
Stock-based compensation$8M
The slice of the business handed to employees in shares this year, 1% of revenue. Buffett's oldest accounting fight: this is compensation, compensation is an expense, real whether or not the headline earnings admit it. One trap: the cash-flow statement adds SBC back, so the operating cash, and the owner earnings drawn from it, are flattered by exactly this amount; counted as the cost it is, what an owner keeps is lower.

Inverting the record

Invert: instead of why InnovAge Holding Corp. is a good business, the question is what would make owning it a mistake, and whether those marks are in the record. Disconfirming tests across 2020–2025.

None of the 4 tests turned up a mark; each came back clean. A clean panel says only that these particular ways of being wrong are not written into the record.

Each test came back clean

Is it less profitable than it was?
Did the share count rise anyway?
Did debt outgrow the business?
Did receivables and inventory outpace sales?

Each test is read from the filings and is noisy alone; a flag can mark a cyclical trough or a year of heavy investment as easily as a problem. The filing says which.

What an owner would ask, FY2025

read the 10-K →

Which reported numbers are a judgment call?
Management names Revenue recognition, Acquisitions, Insurance reserves as critical estimates
each rests partly on management's judgment; the filing's note sets out the assumptionsverify →

The questions the record and the charts do not answer on their own; each carries the figure and the place to look.

Peers, Health Care Providers & Services

The same industry, side by side on owner economics. Each figure is a through-cycle median, so a peak or trough year can’t distort it; the group median at the foot is the line to read each against.

Company	Revenue	Gross margin	Op. margin	ROIC	Owner earn. margin
HIMSHims & Hers Health	$2.3B	75%	-10.2%	-9%	9%
RDNTRadNet	$2.0B	13%	4.9%	4%	5%
NHCNational HealthCare Corporation	$1.5B	—	5.3%	6%	7%
SHCSotera Health	$1.2B	55%	25.2%	7%	13%
INNVInnovAge Holding Corp.	$854M	—	-2.5%	-6%	1%
SNDASonida Senior Living Inc.	$381M	—	-0.8%	-4%	-3%
CSTLCastle Biosciences Inc.	$344M	81%	-14.6%	-18%	-0%
VMDViemed Healthcare Inc.	$270M	61%	9.2%	12%	10%
Group median	—	—	2.0%	-0%	6%

The price

What a price has to assume.

What the price implies

reverse-DCF

Type today's close and see the owner-earnings growth you'd have to believe to justify it, beside what InnovAge Holding Corp. has delivered.

InnovAge Holding Corp.’s latest year runs above its own through-cycle margin — the reported figure may flatter a peak. So the tool opens on the through-cycle base, Graham’s averaging cutting both ways; clear the toggle below to read the latest year exactly as reported.

Today’s price $

Through the cycle, InnovAge Holding Corp. earns about $11M on its 1.3% median owner-earnings margin. This year’s 3.1% margin runs above that; the reported figure may flatter a peak you'd be paying on. Normalize, below, values the price on that through-cycle figure rather than the latest year. It comes pre-checked here for that reason, the same rule that already normalizes a trough; clear it to price the year as filed.

Base Normalize · through-cycle ($11M) Net of stock comp (−$7M) Steady-state · maintenance capex ($46M)

—

The assumptions Required return 9% Years of high growth 10 Terminal growth 2.5%

9.0% = the 4.55% 10-year Treasury (Jul 15, 2026) + 4.45 points of equity premium. The rate you require is yours to set.

Enter a price above to run it.

Implied by the price—

Owner-earnings growth, delivered—

Owner-earnings yield—

P/E (3-yr earnings ’23–’25)—

P/B—

Graham’s price gate—

Graham capped the multiple at 15×; Buffett and Munger let that rule go: a wonderful business can deserve 50× if the thesis holds. The gate marks the bargain-hunter's floor.

Against a high-grade bond: Graham’s yardstick bond yield%

Prefilled with the 10-year Treasury (4.55%, as of Jul 15, 2026). Edit it for today’s exact figure, or a AAA corporate yield.

Graham measured a stock against the bond you could own instead, the heart of his margin of safety. Enter a price above to weigh the owner-earnings yield against this bond.

Free cash flow $43M on 136M shares outstanding, per the 10-Q cover, as of 2026-04-30; net cash $81M. The base opens on the through-cycle figure (the latest year sits above the record’s own median, and Graham’s averaging cuts both ways); clear Normalize to use the year as filed. Net of stock comp treats option pay as the expense it is. Capex ($10M) runs well above depreciation ($18M), so this is a build-out; Steady-state swaps total capex for maintenance (≈ depreciation), lifting the base to about $46M, the cash it would throw off if it stopped expanding. The dials set the multiple a growth belief justifies; the price, and every dollar on this page, is yours.

Weigh INNV against another business →

Cite: Owner Scorecard, "InnovAge Holding Corp. (INNV), the owner's record," https://ownerscorecard.com/c/INNV, data as of 2026-07-09.

Manual order: ← INN its page in the Manual INOD →

Industry order: ← HIMS the Health Care Providers & Services chapter LFMDP →