InnovAge Holding Corp.

to the InnovAge fourth quarter 2025 earnings conference call. At this time, all participants are in listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you'll need to press star 11 on your telephone. If your question has been answered and you'd like to remove yourself from the queue, simply press star 11 again. And now I'd like, as a reminder, today's program is being recorded. And now I'd like to introduce your host for today's program, Ryan Kubota, Director of Investor Relations. Please go ahead, sir.

Thank you, Operator. Good afternoon, and thank you all for joining the Innovate 2025 fourth quarter and fiscal year-end earnings call. With me today is Patrick Blair, CEO, and Ben Adams, CFO. Michael Scarborough, President and COO, will also be joining the Q&A portion of the call. Today, after the market closed, we issued an earnings press release containing detailed information on our 2025 fiscal fourth quarter and year-end results. You may access the release on the investor relations section of our company website, innovates.com. For those listening to the rebroadcast of this call, we remind you that the remarks made herein are as of today, Tuesday, September 9th, 2025, and have not been updated subsequent to this call. During our call, we will refer to certain non-GAAP measures. A reconciliation of these measures to the most directly comparable GAAP measures can be found in our earnings press release posted on our website. We may also make statements that are considered forward-looking, including those related to our 2026 fiscal year projections and guidance, future growth prospects and growth strategy, our clinical and operational value initiatives, Medicare and Medicaid rate increases, the effects of recent legislation and federal budget cuts, enrollment processing delays, the status of current and future regulatory actions, and other expectations. Listeners are cautioned that all of our forward-looking statements involve certain assumptions that are inherently subject to risks and uncertainties that can cause our actual results to differ materially from our current expectations. We advise listeners to review the risk factors discussed in our annual report on Form 10-K for fiscal year 2025 and any subsequent reports filed with the SEC. After the completion of our prepared remarks, we will open the call for questions. I will now turn the call over to our CEO, Patrick Blair. Patrick?

Thank you, Ryan, and good afternoon, everyone. I'll begin with gratitude to our colleagues across InnovAge, to our participants and families, to our state and federal partners, and to our investors. Thank you for your continued support and trust. Fiscal 2025 was a year of delivery. We made clear commitments, and we followed through. In many cases, we exceeded both our internal goals and external expectations. And importantly, we finished the year with strong momentum heading into fiscal 2026. Today, I'll cover fourth quarter and full year results for fiscal 2025, guidance for fiscal 2026, and progress we're making to position InnovAge for long-term success. Our fourth quarter kept a strong year of consistent execution. Revenue was $221.4 million. of 11% from Q4 last year. Center level contribution margin was $41.3 million, representing an 18.6 contribution margin. Adjusted EBITDA more than doubled year over year to $11.3 million, representing a 5.1% margin. We ended the year with a census of approximately 7,740 participants. These results reflect discipline cost management strong medical utilization performance, and continued census growth. Now, turning to the full year, total revenue was $853.7 million, up nearly 12% year-over-year. Center-level contribution was $153.6 million, with contribution margin expanding to approximately 18%, up 70 basis points from FY24. Adjusted EBITDA was $34.5 million, above the high end of our FY25 guidance of $31 million. Adjusted EBITDA margin nearly doubled from 2.2% in FY24 to approximately 4% in FY25. These numbers matter not just in isolation, but in the context of what we committed at our investor day in February 2024. We committed to expanding margins, and we delivered. Center-level contribution margin improved 17.3% in FY24 to 18% in FY25, with further progress expected in FY26. We committed to improving clinical outcomes, and we delivered. Key internal utilization measures, such as inpatient admissions, ER visits, and short-stay nursing facility visits, all improved through execution of our clinical value initiatives. We committed to driving revenue growth and delivered. Revenue grew at greater than 10% compound annual growth rate from FY23 to FY25. We committed to improving operating leverage and delivered. G&A as a percentage of revenue declined steadily from FY23 to FY25. We committed to return sustained positive adjusted EBITDA and delivered with year-over-year improvements and results above expectations. And critically, we closed the year with no material compliance deficiencies. This combination of responsible growth, financial discipline, clinical performance, and compliance execution is what gives us confidence in the durability of our progress. We're operating in a complex environment. Recent legislation has created uncertainty for many value-based care models, particularly Medicare Advantage and Medicaid long-term care programs. State partners are facing fiscal pressures which can translate into budgetary and operational strength. PACE is different. The strength of our model lies in the integration and coordination of care. Our interdisciplinary teams personalize care for every participant. Today, approximately 40% of our total cost of care is delivered directly in our centers by our employees under one roof. Through regular center attendance, we seek to maintain an active line of sight into each participant's health status. allowing us to intervene earlier and prevent avoidable hospitalizations and ER visits. For the remaining 60%, our providers individually order or prescribe virtually all other non-emergent care. This integrated, high-touch model gives us a real advantage in managing costs and utilization, and we believe this sets InnovAge apart in an inflationary, medical-cost-trimmed environment. Looking ahead, we're advocating with the new administration and legislators To broaden the role PACE can play in addressing America's senior care challenges, while today PACE primarily serves a subset of dual eligible seniors, we see meaningful opportunity to expand access to those who could benefit earlier in their care journey. We're advocating for new pathways, such as a Medicare-only option. That would give more seniors access to the coordination and support services that make PACE unique. With more than five decades of public investment in PACE centers across the country, we believe this is the right time to leverage that infrastructure more fully. Done right, this could both improve quality of life for seniors and generate savings by delaying Medicaid enrollment and prolonging nursing home placement. Importantly, it could also create a natural growth channel for the company as participants' needs increase and they transition into full PACE eligibility. Looking ahead, our guidance for FY26 reflects both continued momentum and the realities of our environment. We project census of 7,900 to 8,100, member months of 91,600 to 94,400, total revenue of 900 to $950 million, adjusted EBITDA of 56 to $65 million, de novo losses of $13.4 to $15.4 million. We expect profitability to build through the year, exiting FY26 with a higher run rate, and we remain on track to achieve adjusted EBITDA margins of 8% to 9% over the next few years. Ben will take you through the details of this shortly. On growth, census increased 10% year-over-year in FY25. We strengthened the foundations of our enrollment strategies and processes, while also testing and scaling new channels that are beginning to pay off. We're also building strong partnerships. Last year, we formed a joint venture with Orlando Health, and this past quarter, we announced a similar partnership with Tampa General Hospital. These partnerships extend our reach, strengthen our provider networks, and create new pathways to connect eligible seniors with PACE. We continue to work closely with our state partners on enrollment processing, While we have experienced delays in some states and are monitoring the impact of budget constraints and Medicaid eligibility determinations, these dynamics are incorporated into our FY26 guidance. Demand for PACE remains robust, and we expect healthy top-line growth as we move through the year. Beyond the numbers, we're advancing our transformation agenda. We're investing in talent, technology, and tools to make InnovAge a more disciplined, efficient, and scalable organization. Approximately 40% of our total cost of care occurs within our four walls of our centers, where we are uniquely positioned as both a payer and a provider to capture efficiencies and improve outcomes. This transformation is not just about tightening operations. It's about reimagining the model for the future, positioning InnovAge as the partner of choice for states, payers, providers, and communities looking to create a more sustainable continuum of senior care. In closing, Fiscal 2025 was a strong year. We delivered on our commitments, exceeded expectations, and ended the year with momentum. Fiscal 2026 will be another important step forward, one that we expect to further advance our financial performance, strengthen our model, and bring us closer to achieving our long-term ambitions. I want to thank all our colleagues who make this possible. Every day, they bring both a caregiver's heart and an owner's mindset to serving our participants. They are the reason we've been able to execute consistently, and they will be critical to our success in years ahead. With that, I'll turn it over to Ben for more detail on the financials. Thank you, Patrick.