InnovAge Holding Corp.

Good day and thank you for standing by. Welcome to the InnovAge first quarter 2026 earnings conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1 1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 1 1 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Ryan Kubota, Director of Investor Relations. Please go ahead.

Thank you, operator. Good afternoon, and thank you all for joining the InnoVage 2026 Fiscal First Quarter Earnings Call. With me today is Patrick Blair, CEO, and Ben Adams, CFO. Today, after the market closed, we issued an earnings press release containing detailed information on our fiscal first quarter 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, November 4th, 2025, and have not been updated subsequent to this call. During our call, we refer to certain non-GAAP measures. A reconciliation of these measures to the most directly comparable GAAP measures can be found in our earnings pressure 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 and redetermination processing delays, seasonality of cost trends, the status of current and future regulatory actions, and other expectations. Listeners are cautioned that all of our forward living statements involve certain assumptions that are inherently subject to risks and uncertainties that can cause our actual results to differ immaterially from our current expectations. We advise listeners to review the risk factors and other discussions included in our annual report on Form 10-K for fiscal year 2025 and any subsequent reports filed with the SEC, including our most recent quarterly report on Form 10-Q. 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 know it feels like we just held our fourth quarter results and full year earnings call, and we did. The first quarter reporting cycle always comes quickly due to SEC requirements and companies needing more time to complete and audit their year-end financial results. As a result, we're meeting about six weeks after our last call. So today, I'll spend less time on new headline numbers and more on the progress we're making against our strategic priorities, the continued strength of our model, and the momentum that we expect to carry us through fiscal year 2026. This afternoon, we reported total revenue of $236.1 million, center-level contribution margin of $51.4 million, and adjusted EBITDA of $17.6 million. Compared with the first quarter of fiscal 2025, total revenue increased 15% and adjusted EBITDA more than doubled. Census grew to an all-time high of 7,890 participants, up nearly 2% quarter over quarter. These results reflect continued strong medical cost management and better than expected census growth, as the Medicaid redetermination cleanup is progressing well in the first 90 days. The quarter also reflects positive momentum in our new Florida centers, particularly in Tampa, where our partnership with Tampa General is off to a strong start. The operating environment for many value-based care models remains challenging. Medicare Advantage and Medicaid managed long-term supports and services are experiencing lower or declining reimbursement levels, higher than expected medical service utilization, and growing regulatory scrutiny around risk adjustment and quality measures. In contrast, InnovAge and the PACE model have remained resilient. While many plans are retreating from markets or reporting financial strain from escalating medical costs, PACE offers a fundamentally different approach, one built on direct accountability for every aspect of participant care. At InnovAge, our providers not only deliver care within our centers, but also oversee, approve, and coordinate nearly all health care services that occur outside our walls. This closed loop model gives us a high degree of visibility and control over cost trends, allowing us to manage participant needs more responsibly than reacting well after the fact. These differences are showing up in the numbers. While many managed care organizations are reporting higher than expected medical cost trends this calendar year, our total participant expense per month declined sequentially relative to the fourth quarter of fiscal 2025. What we see in our business is also supported by independent research. In its recent report to Congress, MACPAC identified PACE as the most fully integrated care model available to dual elephants. The study found that PACE participants, though typically older, frailer, and facing more comorbidities, are generally less likely to be hospitalized, less likely to visit the emergency department, less likely to require institutional care, and without increased mortality rate. Simply put, PACE works. Our job is to continue educating policymakers and payers about its value so we can expand access and unlock the program's full potential. And within the PACE sector, Innovate is the largest provider by census in the country, serving nearly 8,000 participants across 20 centers in six states. That scale not only gives us operating leverage, but also unique insight to what drives consistent outcomes for frail seniors. As I approach my fourth anniversary as CEO, I've been reflecting on how much has changed. Over the last 11 quarters, we've delivered steady revenue growth, more than double adjusted EBITDA over the last two fiscal years, and achieved positive net income this quarter for the first time since 2021. These results stem from disciplined execution, executing a multi-pronged growth strategy across markets, including existing center growth, joint ventures, M&A, and de novo centers, cleaned up the balance sheet through the divestiture of multiple non-core assets and investments, upgrading systems and processes to strengthen quality, compliance, and financial performance, strategically insourcing key services such as pharmacy and hospice to tighten cost control and improve coordination, improving center-level staffing and reducing operating model variation supported by the enterprise rollout of the Epic EMR, the Oracle Financial Platform, and rigorously managing corporate overhead to improve efficiency and productivity. These efforts have reshaped both the culture and the economics of InnovAge, which I believe has positioned us for sustained success. Before turning to our outlook, I want to touch on recent leadership changes. Over the past several years, we've built a strong leadership bench capable of stepping up when changes occur. Leadership transitions, some planned, some unplanned, are inevitable in a multi-year transformation but they have not disrupted our momentum. We've made several important additions and adjustments. Dr. Paul Tahereh, a widely respected clinical leader, joined this week as our new chief medical officer. Meredith Delk recently joined as chief administrative officer, leading pharmacy, home care, behavioral health, and government affairs. Matt Haray has expanded his role to include sales in addition to his strategy and corporate development responsibilities as our chief growth officer. Additionally, last week, we announced that Michael Scarborough, our president and COO, will be leaving at the end of the month for personal reasons. Michael's done an excellent job strengthening our operations and positioning InnovAge for long-term success. He leaves behind a capable team and a strong foundation. These moves underscore the depth of our leadership and the growing appeal of InnovAge as a destination for top talent in the industry. Leadership change creates opportunities for internal advancement and professional growth among our next generation of leaders. At the same time, we've taken proactive steps to strengthen how the organization operates. We recently completed a spans and layers review, a structured evaluation of the size and shape of our corporate organization. This initiative focused on our shared services teams, which support our centers but do not deliver care directly to participants. Through that process, we identified opportunities to reduce management layers and streamline support functions, resulting in a smaller, more focused shared services workforce. We expect these changes to improve decision-making speed, enhance accountability, and more closely align our cost structure with best-in-class benchmarks. It's a tangible example of our cost discipline and the operational maturity we continue to build across the company. Taken together, we expect that these leadership and organizational changes strengthen rather than distract from our progress. They demonstrate that InnovAge has both the talent and the structure to execute consistently through change. At its core, InnovAge exists to help seniors live safely and independently at home for as long as possible. Our integrated model reduces the burden on state and federal partners and brings peace of mind to families. Our recent participant satisfaction survey tells that story clearly. 90% overall satisfaction and 97% of participants said they would choose InnovAge over a nursing home. Before I close, I want to share a recent testimonial from one of our participants' daughters that reminds us of our mission at InnovAge, our value proposition to families, and the integrated PACE model in action. For my mom, InnovAge has been such a reassurance. At her age, if she wakes up feeling not quite right, it used to spiral into worry, and that worry could turn into something worse. Now everything she needs is right there in the center, her doctor, her physical therapist, her dentist, even her eye care. Her care team shares her chart in real time, so there's no guessing, no repeating, no gaps in her care. It's all connected. That kind of coordination gives her confidence and gives me peace of mind. It's just amazing. Stories like this remind us of why our work matters and why we're so focused on execution. Behind every number we report is a person whose life and family's life is better because of this model. So in closing, we're off to a strong start to the fiscal year. Our Q1 results were ahead of expectations, but I want to caution against annualizing them. Due to the relatively small scale of our business, the timing of Medicaid redeterminations, and the inherent seasonality of certain cost trends, first quarter results should not be indicative of full year performance. We'll continue to execute with discipline, invest in talent and technology, and build on the foundation we've created. Continuous improvement has become part of our DNA. We remain confident in our strategy, proud of our progress, and committed to delivering sustainable growth and superior outcomes for the seniors and families we serve. With that, I'll turn it over to Ben for more detail on the financials.