DENVER, Sept. 08, 2026 (GLOBE NEWSWIRE) — InnovAge Holding Corp. (“InnovAge” or the “Company”) (Nasdaq: INNV), an industry leader in providing comprehensive healthcare programs to frail, predominantly dual-eligible seniors through the Program of All-inclusive Care for the Elderly (PACE), today announced financial results for its fiscal fourth quarter and full year ended June 30, 2026.

“Fiscal 2026 was an exceptional year for InnovAge and reflects the significant progress we have made strengthening the company,” said Patrick Blair, Chief Executive Officer of InnovAge. “We enter Fiscal 2027 in a strong position, with a durable foundation to serve more seniors and to deliver high-quality care. We remain focused on disciplined execution and creating sustainable long-term value for all of our stakeholders.”

Financial Results

  Three Months Ended   Year Ended
  June 30,
2026		   June 30,
2025		   June 30,
2026		   June 30,
2025
in thousands, except percentages and per share amounts              
Total revenues $ 261,951     $ 221,417     $ 989,707     $ 853,699  
Income (Loss) Before Income Taxes   9,667       (4,202 )     266       (34,027 )
Net Income (Loss)   9,783       (5,009 )     (683 )     (35,343 )
Net Income (Loss) margin   3.7 %   (2.3 )%   (0.1 )%   (4.1 )%
               
Net Income (Loss) Attributable to InnovAge Holding Corp. $ 8,287     $ (785 )   $ (2,537 )   $ (30,313 )
Net Income (Loss) per share – basic and diluted   0.06       (0.01 )     (0.02 )     (0.22 )
               
Center-level Contribution Margin(1) $ 62,562     $ 41,287     $ 227,764     $ 153,639  
Adjusted EBITDA(1)   24,282       11,326       94,571       34,462  
Adjusted EBITDA margin(1)   9.3 %     5.1 %     9.6 %     4.0 %
                               

Fiscal Year 2026 Financial Performance

  • Total revenues of $989.7 million, increased approximately 15.9% compared to $853.7 million in 2025
  • Income Before Income Taxes of $0.3 million, increased by 100.8% compared to a Loss Before Income Taxes of $34.0 million in 2025
  • Income Before Income Taxes as a percent of revenue increased 4.0 percentage points compared to a Loss Before Income Tax as a percent of revenue of 4.0% in 2025
  • Net loss of $0.7 million decreased 98%, compared to a net loss of $35.3 million in 2025
  • Net loss margin of 0.1%, increased 4.1 percentage points compared to a net loss margin of 4.1% in 2025
  • Net loss attributable to InnovAge Holding Corp. of $2.5 million, or loss of $0.02 per share, compared to a net loss of $30.3 million, or loss of $0.22 per share in 2025
  • Center-level Contribution Margin(1) of $227.8 million, increased 48.3% compared to $153.6 million in 2025
  • Center-level Contribution Margin(1) as a percent of revenue of 23.0%, increased 5.0 percentage points compared to 18.0% in 2025
  • Adjusted EBITDA(1) of $94.6 million, an increase of $60.1 million compared to $34.5 million in 2025
  • Adjusted EBITDA(1) margin of 9.6%, an increase of 5.5 percentage points compared to 4.0% in 2025
  • Census of approximately 8,230 participants compared to 7,740 participants in 2025
  • Member months of approximately 96,050 compared to 89,130 in 2025

(1) Center-level Contribution Margin, Center-level Contribution Margin as a percent of revenue, Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP measures. For more details and for a definition and reconciliation of these non-GAAP measures to the most closely comparable GAAP measures for the periods indicated, see “Note Regarding Use of Non-GAAP Financial Measures” and “Reconciliation of GAAP and Non-GAAP Measures.”

Full Fiscal Year 2027 Financial Guidance

Based on information as of today, September 8, 2026, InnovAge is issuing the following financial guidance.

  Low
   High
  dollars in millions  
Census   8,625       8,850  
Total Member Months(1)   101,000       102,500  
           
Total revenues $ 1,050     $ 1,085  
Adjusted EBITDA(2)   105       115  
               

Expected results and estimates may be impacted by factors outside the Company’s control, and actual results may be materially different from this guidance. See “Forward-Looking Statements – Safe Harbor” included herein.

(1) We define Total Member Months as the total number of participants multiplied by the number of months within the respective reporting period in which each participant was enrolled in our program. Management believes this is a useful metric as it more precisely tracks the number of participants the Company serves throughout the year.

(2)Adjusted EBITDA is a non-GAAP measure. See “Note Regarding Use of Non-GAAP Financial Measures” and “Reconciliation of GAAP and Non-GAAP Measures” for a definition of historical Adjusted EBITDA and a reconciliation to net income (loss), the most closely comparable GAAP measure. The Company is unable to provide guidance for net income (loss) or a reconciliation of the Company’s Adjusted EBITDA guidance because it cannot provide a meaningful or accurate calculation or estimation of certain reconciling items without unreasonable effort. The Company’s inability to do so is due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliation, including variations in effective tax rate, expenses to be incurred for acquisition activities and other one-time or exceptional items.

Conference Call

The Company will host a conference call this afternoon at 5:00 p.m. Eastern Time.  A live audio webcast of the call will be available on the Company’s website, https://investor.innovage.com/. A replay of the call will be available via webcast for on-demand listening shortly after the completion of the call, at the same web link, and will remain available for a limited time.  To access the call by phone, please go to this link (registration link), for dialing instructions and a unique access pin.  We encourage participants to dial into the call fifteen minutes ahead of the scheduled start time.

About InnovAge

InnovAge is a market leader in managing the care of high-cost, frail, and predominantly dual-eligible seniors through the Program of All-inclusive Care for the Elderly (PACE). With a mission of enabling older adults to age independently in their own homes for as long as safely possible, InnovAge’s patient-centered care model is designed to improve the quality of care its participants receive while reducing over-utilization of high-cost care settings. InnovAge believes its PACE healthcare model is one in which all constituencies — participants, their families, providers and government payors — “win.” As of June 30, 2026, InnovAge served approximately 8,230 participants across 20 centers in six states. https://www.innovage.com/.

Investor Contact:

Ryan Kubota
rkubota@innovage.com

Media Contact:
press@innovage.com

Forward-Looking Statements – Safe Harbor
This press release and the related conference call contain “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as: “anticipate,” “estimate,” “expect,” “project,” “plan,” “intend,” “believe,” “may,” “will,” “should,” “can have,” “likely” and other words and terms of similar meaning in connection with any discussion of the timing or nature of future operating or financial performance or other events. Forward-looking statements may be identified by the fact that they do not relate strictly to historical or current facts. Examples of forward-looking statements include, among others, statements we may make regarding quarterly or annual guidance; financial outlook, including future revenues and future earnings; the viability of our growth strategy including our ability or expectations to increase the number of participants we serve, build and/or open de novo centers, or to identify and execute acquisitions, joint ventures and strategic partnerships; the expected impact of government policies and the macroeconomic environment; reimbursement and regulatory developments, including potential reductions in PACE reimbursement rates; our ability to control costs, mitigate the effects of elevated expenses or reduced healthcare budgets, expand our payer capabilities, implement clinical value and operational value initiatives and strengthen enterprise functions; results of periodic inspections, reviews and audits, legal proceedings and government investigations and actions; relationships and discussions with regulatory agencies; market developments; and the effects of any of the foregoing on our future results of operations or financial conditions.

Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on currently available information and our current beliefs, expectations and assumptions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control and may cause our actual results and financial condition to differ materially. Important factors that could cause our actual results and financial condition to differ materially include, among others, the following: (i) the viability of our growth strategy, including our ability to find suitable geographies for new centers and to attract new participant and retain existing participants in new and existing centers and our ability to obtain licenses to open such centers; (ii) our ability to identify, successfully complete and integrate acquisitions, joint ventures another strategic partnerships; (iii) the impact on our business from ongoing macroeconomic, geopolitical and industry-related challenges, including labor shortages, labor competition, high inflation, and supply chain disruptions, as a result of tariffs and trade disputes; (iv) the risk that the cost of providing services under our PACE contracts will exceed our compensation; (v) our increased costs and expenditures and our inability to execute or realize the benefits of our clinical and operational value initiatives; (vi) the dependence of our revenues upon a limited number of government payors which exposes us to the risk of government funding reductions, legislative changes and federal and state budgetary pressures; (vii) reductions in PACE reimbursement rates; (viii) the results of periodic inspections, reviews, audits and investigations under the federal and state government programs, including our ability to sufficiently cure any deficiencies identified; (ix) the adverse impact of legal proceedings, enforcement actions and litigation disputes, which are costly to defend; (x) the risk that our submissions to government payors may contain inaccurate or unsupportable information, including regarding risk adjustment scores of participants, subjecting us to repayment obligations or penalties; and (xi) our ability to adhere to complex and changing government laws and regulations in the healthcare industry.

Forward-looking statements are based only on information currently available to us and speaks only as of the date on which it is made. Except as required by law, we undertake no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise. We advise you to not place undue reliance on forward-looking statements and to review our risk factors and other disclosures included in the reports we file or furnish with the Securities and Exchange Commission, including our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.

Note Regarding Use of Non-GAAP Financial Measures
In addition to reporting financial information in accordance with generally accepted accounting principles (“GAAP”), the Company is also reporting Center-level Contribution Margin, Center-level Contribution Margin as a percent of revenue, Adjusted EBITDA and Adjusted EBITDA margin, which are non-GAAP financial measures. These non-GAAP measures are supplemental measures of operating performance monitored by management that are not defined under GAAP and that do not represent, and should not be considered as, an alternative to net income (loss) before income taxes, net income (loss) before income taxes margin, net income (loss) and net income (loss) margin, as applicable, as determined by GAAP. We believe that these non-GAAP measures are appropriate measures of operating performance because the metrics eliminate the impact of certain expenses that, in the case of Adjusted EBITDA, do not relate to our ongoing business performance, allowing us to more effectively evaluate our core operating performance and trends from period to period. Our definitions and calculations of non-GAAP measures may vary and not be comparable to similarly titled measures reported by other companies. We believe that these non-GAAP measures help investors and analysts in comparing our results across reporting periods on a consistent basis by excluding items that we do not believe are indicative of our core operating performance. These non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation from, or as a substitute for, the analysis of other comparable GAAP financial measures.

The Company’s management uses Center-level Contribution Margin as the measure for assessing performance of its operating segments and allocating resources, predominantly in the annual budget and forecasting process. For the purpose of evaluating Center-level Contribution Margin on a center-by-center basis, we do not allocate our sales and marketing expense or corporate, general and administrative expenses across our centers. We define Center-level Contribution Margin as total revenues less external provider costs and cost of care, excluding depreciation and amortization, which includes all medical and pharmacy costs.  

We define Adjusted EBITDA as net income (loss) adjusted for interest expense, net, other investment income, depreciation and amortization, and provision (benefit) for income tax as well as addbacks for non-recurring expenses or exceptional items, including charges relating to management equity compensation, litigation costs and settlement, M&A diligence, transaction and integration, business optimization, loss on cost and equity method investments, asset impairments and loss on assets held for sale and gain (loss) on sale of assets. Adjusted EBITDA margin is Adjusted EBITDA expressed as a percentage of our total revenue.

       
      Schedule 1
       
InnovAge
CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS, EXCEPT NUMBER OF SHARES)		      
       
  June 30,
2026		   June 30,
2025
Assets      
Current Assets      
Cash and cash equivalents $ 97,891     $ 64,129  
Short-term investments   43,435       41,775  
Restricted cash   10       11  
Accounts receivable   42,390       36,373  
Prepaid expenses and other   27,311       24,472  
Income tax receivable   3,276       3,310  
Assets held for sale   —       6,038  
Total current assets   214,313       176,108  
Noncurrent Assets      
Property and equipment, net   166,086       168,044  
Operating lease assets   21,412       26,901  
Deposits and other   10,318       9,875  
Goodwill   142,046       142,046  
Other intangible assets, net   3,218       3,877  
Total noncurrent assets   343,080       350,743  
Total assets $ 557,393     $ 526,851  
Liabilities and Stockholders’ Equity      
Current Liabilities      
Accounts payable and accrued expenses $ 115,358     $ 76,750  
Reported and estimated claims   56,864       58,971  
Due to Medicaid and Medicare   18,266       14,382  
Current portion of long-term debt   2,536       2,250  
Current portion of finance lease obligations   6,275       5,234  
Current portion of operating lease obligations   4,592       4,682  
Liabilities held for sale   —       2,538  
Total current liabilities   203,891       164,807  
Noncurrent Liabilities      
Deferred tax liability, net   9,051       8,761  
Finance lease obligations   8,251       7,535  
Operating lease obligations   19,775       23,918  
Other noncurrent liabilities   2,128       1,458  
Long-term debt, net of debt issuance costs   45,521       57,464  
Total liabilities   288,617       263,943  
Commitments and Contingencies (See Note 9)      
Redeemable Noncontrolling Interest (See Note 4)   30,013       25,010  
Stockholders’ Equity      
Common stock, $0.001 par value; 500,000,000 authorized as of each of June 30, 2026 and 2025; 137,483,028 issued and 136,020,049 outstanding as of June 30, 2026 and 136,903,271 issued and 135,440,292 outstanding as of June 30, 2025.   137       137  
Treasury stock at cost, 1,462,979 and 1,462,979 shares as of June 30, 2026 and June 30, 2025, respectively   (7,500 )     (7,500 )
Additional paid-in capital   348,724       343,378  
Retained deficit   (105,758 )     (101,047 )
Total InnovAge Holding Corp.   235,603       234,968  
Noncontrolling interests   3,160       2,930  
Total stockholders’ equity   238,763       237,898  
Total liabilities and stockholders’ equity $ 557,393     $ 526,851  
               

      Schedule 2
       
InnovAge
CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT NUMBER OF SHARES AND PER SHARE DATA)		      
       
  Three Months Ended   Year Ended
  June 30, 2026   June 30, 2025   June 30, 2026   June 30, 2025
  (unaudited)        
Revenues              
Capitation revenue $ 261,511     $ 221,060     $ 988,384     $ 852,353  
Other service revenue   440       357       1,323       1,346  
Total revenues   261,951       221,417       989,707       853,699  
Expenses              
External provider costs   115,737       108,169       449,843       431,152  
Cost of care, excluding depreciation and amortization   83,652       71,961       312,100       268,908  
Sales and marketing   9,933       7,100       34,361       28,217  
Corporate, general and administrative   33,077       27,823       166,489       122,058  
Depreciation and amortization   6,356       3,394       21,142       19,510  
Impairments and loss on assets held for sale   3,050       5,120       3,154       13,615  
Total expenses   251,805       223,567       987,089       883,460  
Operating Income (Loss)   10,146       (2,150 )     2,618       (29,761 )
               
Other Income (Expense)              
Interest expense, net   (772 )     (893 )     (4,258 )     (4,612 )
Loss on cost and equity method investments   —       (1,409 )     —       (1,393 )
Other income, net   293       250       1,906       1,739  
Total other expense   (479 )     (2,052 )     (2,352 )     (4,266 )
Income (Loss) Before Income Taxes   9,667       (4,202 )     266       (34,027 )
Provision for Income Taxes   (116 )     807       949       1,316  
Net Income (Loss)   9,783       (5,009 )     (683 )     (35,343 )
Less: net income (loss) attributable to noncontrolling interests   1,496       (4,224 )     1,854       (5,030 )
Net Income (Loss) Attributable to InnovAge Holding Corp. $ 8,287     $ (785 )   $ (2,537 )   $ (30,313 )
               
Weighted-average number of commonshares outstanding – basic   135,812,522       135,133,574       135,698,603       135,387,555  
Weighted-average number of commonshares outstanding – diluted   137,157,943       135,133,574       135,698,603       135,387,555  
               
Net loss per share – basic $ 0.06     $ (0.01 )   $ (0.02 )   $ (0.22 )
Net loss per share – diluted $ 0.06     $ (0.01 )   $ (0.02 )   $ (0.22 )
                               

  Schedule 3
   
InnovAge
CONSOLIDATED STATEMENTS OF CASH FLOWS
(IN THOUSANDS)		  
   
  Year Ended June 30,
  2026   2025
Operating Activities      
Net loss $ (683 )   $ (35,343 )
Adjustments to reconcile net loss to net cash provided by (used in) operating activities      
(Gain) loss on disposal of assets   (418 )     508  
Provision for uncollectible accounts   —       524  
Depreciation and amortization   21,142       19,510  
Operating lease rentals   6,860       6,361  
Loss (gain) on cost and equity method investments   —       1,393  
Impairments and loss on assets held for sale   3,154       13,615  
Amortization of deferred financing costs   772       429  
Stock-based compensation   7,048       7,619  
Deferred income taxes   289       1,301  
Other   3,069       1,714  
Changes in operating assets and liabilities, net of acquisitions      
Accounts receivable   (6,018 )     11,210  
Prepaid expenses and other   (2,832 )     (4,041 )
Income tax receivable   34       14  
Deposits and other   (1,919 )     (6,419 )
Accounts payable and accrued expenses   38,446       20,431  
Reported and estimated claims   (2,107 )     3,567  
Due to Medicaid and Medicare   3,883       (814 )
Operating lease liabilities   (6,006 )     (8,713 )
Net cash provided by operating activities   64,714       32,866  
Investing Activities      
Purchases of property and equipment   (14,309 )     (6,263 )
Purchases of short-term investments   (1,747 )     (2,065 )
Proceeds from sale of short-term investments   —       6,300  
Proceeds from dissolution of equity method investments   —       1,252  
Acquisition of business   —       (4,774 )
Proceeds from sale of assets held for sale   3,716       —  
Net cash used in investing activities   (12,340 )     (5,550 )
Financing Activities      
Payments for finance lease obligations   (5,206 )     (6,107 )
Proceeds from long-term debt   60,082       —  
Principal payments on long-term debt   (71,282 )     (3,799 )
Payment of debt issuance costs   (1,989 )     —  
Repurchase of equity securities   —       (7,321 )
Contributions from joint venture partner   3,200       —  
Distributions to joint venture partner   (1,634 )     —  
Taxes paid related to net settlements of stock-based compensation awards   (1,702 )     (1,855 )
Net cash used in financing activities   (18,531 )     (19,082 )
       
Net change in cash, cash equivalents and restricted cash including cash of $0.08 million reclassified to assets held for sale   33,843       8,234  
Less: change in cash and restricted cash reclassified to assets held for sale   (82 )     (1,054 )
INCREASE IN CASH, CASH EQUIVALENTS & RESTRICTED CASH   33,761       7,180  
CASH, CASH EQUIVALENTS & RESTRICTED CASH, BEGINNING OF PERIOD   64,140       56,960  
CASH, CASH EQUIVALENTS & RESTRICTED CASH, END OF PERIOD $ 97,901     $ 64,140  
       
Supplemental Cash Flows Information      
Interest paid $ 4,206     $ 4,348  
Income taxes paid $ 627     $ 1  
Property and equipment included in accounts payable $ 1,257     $ 1,734  
Property and equipment purchased under capital leases $ 6,965     $ 1,533  

      Schedule 4
       
InnovAge
RECONCILIATION OF GAAP AND NON-GAAP MEASURES
(IN THOUSANDS) (UNAUDITED)

Adjusted EBITDA

      
       
  Three Months Ended   Year Ended
  June 30, 2026   June 30, 2025   June 30, 2026   June 30, 2025
               
Net income (loss) $ 9,783     $ (5,009 )   $ (683 )   $ (35,343 )
Interest expense, net   772       893       4,258       4,612  
Other investment income(a)   (146 )     (497 )     (1,422 )     (2,247 )
Depreciation and amortization   6,356       3,394       21,142       19,510  
Provision for income tax   (116 )     807       949       1,316  
Stock-based compensation   1,734       1,550       7,048       7,619  
Litigation costs and settlements(b)   2,849       1,626       56,966       19,367  
M&A diligence, transaction and integration(c)   —       (222 )     —       1,360  
Business optimization(d)   —       2,195       3,540       3,040  
Loss on cost and equity method investments(e)   —       1,393       —       1,393  
Asset impairments and loss on assets held for sale(f)   3,050       4,976       3,154       13,615  
(Gain) loss on sale of assets(g)   —       220       (381 )     220  
Adjusted EBITDA $ 24,282     $ 11,326     $ 94,571     $ 34,462  
               
Net income (loss) margin   3.7 %   (2.3 )%   (0.1 )%   (4.1 )%
Adjusted EBITDA margin   9.3 %     5.1 %     9.6 %     4.0 %
                               

_______________________

  (a) Reflects investment income related to short term investments included in our consolidated statements of operations.
  (b) Reflects charges/(credits) related to litigation by stockholders, civil investigative demands, and settlement with our former pharmacy provider. Refer to Note 9, “Commitments and Contingencies” to our consolidated financial statements included in this Annual Report for more information regarding litigation by stockholders and civil investigative demands. Costs reflected consist of litigation costs considered one-time in nature and outside of the ordinary course of business based on the following considerations which we assess regularly: (i) the frequency of similar cases that have been brought to date, or are expected to be brought within two years, (ii) complexity of the case, (iii) nature of the remedies sought, (iv) litigation posture of the Company, (v) counterparty involved, and (vi) the Company’s overall litigation strategy. For the three months ended June 30, 2026, includes $2.4 million of accrued loss for potential resolutions. For the year ended June 30, 2026, includes an aggregate $52.4 million of accrued loss for potential resolutions or paid settlements. For the year ended June 30, 2025, includes $10.1 million that was accrued in connection with the settlement of the previously disclosed stockholder class action and which was paid in fiscal year 2026.
  (c) Reflects charges related to M&A diligence, transactions and integrations.
  (d) Reflects charges related to business optimization initiatives. Such charges related to one-time investments in projects designed to enhance our technology and compliance systems and improve and support the efficiency and effectiveness of our operations. For the three months ended June 30, 2025 this consists of $2.1 million of costs related to organizational restructure and executive severance. For the year ended June 30, 2026 this consists of $3.5 million of costs associated with third party consultants to implement core provider initiatives, assess our risk-bearing capabilities, and strengthen our enterprise capabilities. For the year ended June 30, 2025, this includes (i) $2.5 million of costs associated with organizational restructure and executive severance, and (ii) $0.5 million related to other non-recurring projects aimed at reducing costs and improving efficiencies.
  (e) For both the three months ended June 30, 2025 and the year ended June 30, 2025, reflects $2.6 million impairment loss for the investment in DispatchHealth Holdings, Inc., partially offset by $1.3 million net benefit associated with the dissolution of the PWD partnership.
  (f) For the three months ended June 30, 2026, includes impairment charges related to ROU asset and construction in progress related to a previously planned de novo center in Downey, California. For the three months ended June 30, 2025, includes (ii) loss on assets held for sale, and (iii) loss on settlement of lease liability in Louisville, Kentucky. For the year ended June 30, 2026, reflects (i) additional loss related to the Company’s sale of its managing member interest in SH1 and the adjacent land and (ii) impairment charges related to ROU asset and construction in progress related to a previously planned de novo center in Downey, California. For the year ended June 30, 2025, reflects (i) impairment charges related to ROU asset and construction in progress related to halting developments related to the planned Louisville, Kentucky center, (ii) loss on assets held for sale, and (iii) loss on settlement of lease liability in Louisville, Kentucky.
  (g) For the year ended June 30, 2026, reflects gain on sale of center equipment that was originally purchased for the center in Louisville, Kentucky. For both the three months ended June 30, 2025 and the year ended June 30, 2025, reflects loss on sale of center equipment that was originally purchased for the center in Louisville, Kentucky.
     

  Three Months Ended
  March 31, 2026
   
Net loss $ (29,940 )
Interest expense, net   988  
Other investment income(a)   (294 )
Depreciation and amortization   4,824  
Provision for income tax   167  
Stock-based compensation   1,790  
Litigation costs and settlements(b)   51,859  
Business optimization(c)   1,101  
Adjusted EBITDA $ 30,495  
   
Net loss margin (11.9 )%
Adjusted EBITDA margin   12.1 %
       

_______________________

  (a) Reflects investment income related to short-term investments included in our consolidated statement of operations.
  (b) Reflects charges/(credits) related to litigation by stockholders, civil investigative demands, and settlement with our former pharmacy provider. Refer to Note 9, “Commitments and Contingencies” to our condensed consolidated financial statements for more information regarding these proceedings. Costs reflected consist of litigation costs considered one-time in nature and outside of the ordinary course of business based on the following considerations which we assess regularly: (i) the frequency of similar cases that have been brought to date, or are expected to be brought within two years, (ii) complexity of the case, (iii) nature of the remedies sought, (iv) litigation posture of the Company, (v) counterparty involved, and (vi) the Company’s overall litigation strategy.
  (c) Reflects charges related to business optimization initiatives. Such charges relate to one-time investments in projects designed to enhance our technology and compliance systems and improve and support the efficiency and effectiveness of our operations. For the three months ended March 31, 2026, this consists of costs related to organizational restructure.
     

Center-Level Contribution Margin

  Year Ended June 30, 2026   Year Ended June 30, 2025
in thousands PACE
   All other(1)
   Totals   PACE
   All other(1)
   Totals
Capitation revenue $ 988,384     $ —     $ 988,384     $ 852,353     $ —     $ 852,353  
Other service revenue   1,066       257       1,323       356       990       1,346  
Total revenues   989,450       257       989,707       852,709       990       853,699  
External provider costs   449,843       —       449,843       431,152       —       431,152  
Cost of care, excluding depreciation and amortization   311,967       133       312,100       268,338       570       268,908  
Center-Level Contribution Margin   227,640       124       227,764       153,219       420       153,639  
                               
Sales and marketing               34,361                   28,217  
Corporate, general and administrative               166,489                   122,058  
Depreciation and amortization               21,142                   19,510  
Impairments and loss on assets held for sale               3,154                   13,615  
Operating income (loss)               2,618                   (29,761 )
Other expense               (2,352 )                 (4,266 )
Income (Loss) Before Income Taxes             $ 266                 $ (34,027 )
Loss Before Income Taxes as a % of revenue               — %               (4.0 )%
Center- Level Contribution Margin as a % of revenue               23.0 %                 18.0 %
                                       

  Three Months Ended June 30, 2026   Three Months Ended June 30, 2025
in thousands PACE
   All other(1)
   Totals   PACE
   All other(1)
   Totals
Capitation revenue $ 261,511     $ —     $ 261,511     $ 221,060     $ —     $ 221,060  
Other service revenue   440       —       440       104       253       357  
Total revenues   261,951       —       261,951       221,164       253       221,417  
External provider costs   115,737       —       115,737       108,169       —       108,169  
Cost of care, excluding depreciation and amortization   83,652       —       83,652       71,816       145       71,961  
Center-Level Contribution Margin   62,562       —       62,562       41,179       108       41,287  
                               
Sales and marketing               9,933                   7,100  
Corporate, general and administrative               33,077                   27,823  
Depreciation and amortization               6,356                   3,394  
Impairments and loss on assets held for sale               3,050                   5,120  
Operating income (loss)               10,146                   (2,150 )
Other expense               (479 )                 (2,052 )
Income (Loss) Before Income Taxes             $ 9,667                 $ (4,202 )
Loss Before Income Taxes as a % of revenue               3.7 %               (1.9 )%
Center- Level Contribution Margin as a % of revenue               23.9 %                 18.6 %
                                       

Center-Level Contribution Margin

  Three Months Ended March 31, 2026
(In thousands) PACE
   All other(1)
   Totals
Capitation revenue $ 251,502     $ —     $ 251,502  
Other service revenue   441       —       441  
Total revenues   251,943       —       251,943  
External provider costs   113,247       —       113,247  
Cost of care, excluding depreciation and amortization   77,676       —       77,676  
Center-Level Contribution Margin   61,020       —       61,020  
               
Sales and marketing               8,744  
Corporate, general and administrative               76,531  
Depreciation and amortization               4,824  
Impairments and loss on assets held for sale               —  
Operating Loss               (29,079 )
Other expense               (694 )
Loss Before Income Taxes             $ (29,773 )
Loss Before Income Taxes as a % of revenue             (11.8 )%
Center- Level Contribution Margin as a % of revenue               24.2 %
                   

_______________________

(1) Center-level Contribution Margin from a segment below the quantitative thresholds was attributable to the Senior Housing operating segment of the Company as of June 30, 2026. This segment never met any of the quantitative thresholds for determining reportable segments.
   

This press release was published by a CLEAR® Verified individual.


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