Tue, May 6, 9:26 PM (17 days ago)
**InnovAge Holding Corp. (INNV) Q1 2025 Financial Summary** **Financial Health & Performance:** - **Revenue:** Q1 2025 revenue was $218.1 million, up 13% YoY, driven by a 13% increase in capitation revenue and a 2.5% increase in other service revenue. - **Profit Margins:** Operating loss widened to $10.2 million in Q1 2025, compared to $5.8 million in Q1 2024, due to increased expenses. - **Cash Flow:** Net cash provided by operating activities was $23.9 million for the nine months ended March 31, 2025, a significant improvement from the $38.8 million used in the same period last year. - **Earnings Changes:** Net loss attributable to InnovAge Holding Corp. was $11.4 million in Q1 2025, compared to $5.9 million in Q1 2024. **Key Metrics & Trends:** - **Capitation Revenue:** Increased by 13% YoY in Q1 2025, driven by higher capitation rates and member months. - **Operating Expenses:** External provider costs and cost of care increased by 7.9% and 17.6% YoY, respectively, in Q1 2025. - **Cash & Investments:** Cash and cash equivalents were $60.5 million as of March 31, 2025, with short-term investments at $41.3 million. - **Debt:** Total debt outstanding was $63.1 million as of March 31, 2025, with $60.9 million under the Term Loan Facility. **Uncertainties & Future Operations:** - **Labor Market:** Challenges in hiring healthcare professionals and wage pressure due to an aging population and retirement of experienced workers. - **Macroeconomic Trends:** Potential supply chain disruptions and higher prices for medical supplies due to tariffs and trade tensions. - **Legal & Regulatory:** Ongoing civil investigative demands and stockholder lawsuits may impact financial results. - **Growth Strategy:** Focus on expanding enrollment, maintaining high participant satisfaction, and managing cost of care. Plans to invest in centers, value-based care model, and sales and marketing to support long-term growth. **Future Outlook:** - **Revenue Growth:** Expected to continue growing enrollment and capacity within existing centers and through de novo centers. - **Cost Management:** Aiming to offset increasing cost of care through clinical and operational value initiatives. - **Liquidity:** Plans to use cash flows from operations, available funds, and access to financing sources to fund operating and capital needs. - **Regulatory Compliance:** Prioritizing high-quality regulatory compliance and maintaining relationships with government payors.