MediBeacon® Transdermal GFR System is a first-in-kind product for point of care kidney function assessmentCenters of Excellence commercialization in select academic medical centers began in January 2026 NEW YORK, Feb. 10, 2026 (GLOBE NEWSWIRE) -- INNOVATE Corp. (NYSE: VATE) (“INNOVATE” or the “Company”) announced today that MediBeacon Inc. (“MediBeacon”), a medical technology company specializing in the advancement of fluorescent tracer agents and their transdermal detection, in which INNOVATE owns a 44.7% ...

MediBeacon® Transdermal GFR System is a first-in-kind product for point of care kidney function assessmentCenters of Excellence commercialization in select academic medical centers began in January 2026 NEW YORK, Feb. 10, 2026 (GLOBE NEWSWIRE) -- INNOVATE Corp. (NYSE: VATE) (“INNOVATE” or the “Company”) announced today that MediBeacon Inc. (“MediBeacon”), a medical technology company specializing in the advancement of fluorescent tracer agents and their transdermal detection, in which INNOVATE owns a 44.7% ...

Core Viewpoint - MediBeacon Inc., in which INNOVATE Corp. holds a 44.7% equity interest, has received FDA approval for its next-generation TGFR System, which includes the TGFR Reusable Sensor, enhancing kidney function assessment technology [1][7]. Group 1: Product Details - The TGFR System allows for kidney function assessment at the point of care by measuring the clearance rate of Lumitrace (relmapirazin), a non-radioactive, non-iodinated fluorescent GFR agent [2]. - The TGFR Reusable Sensor is designed for patient comfort, ease of application, and reusability, reducing costs compared to the previously approved single-use TGFR Sensor [3]. - The TGFR System records Lumitrace fluorescence intensity transdermally at a rate of 2.5 readings per second, providing real-time data on kidney function [12]. Group 2: Clinical Validation and Research - The TGFR System was featured in a lead peer-reviewed article in the Journal of the American Society of Nephrology, highlighting its application across various levels of kidney function and skin colors [4]. - MediBeacon has a strong research background with over 700 peer-reviewed publications and conference abstracts utilizing the transdermal GFR methodology [5]. Group 3: Market Strategy and Future Plans - MediBeacon plans to offer early access to the TGFR System at leading academic medical centers in the U.S. and China, with initial sales expected to begin in the first quarter of 2026 [5][7]. - The company aims to integrate transdermal GFR technology into ongoing heart failure studies, emphasizing its potential to improve patient monitoring and accuracy in kidney function assessment [6]. Group 4: Company Overview - INNOVATE Corp. is focused on key areas of the new economy, including Infrastructure, Life Sciences, and Spectrum, employing approximately 3,100 people across its subsidiaries [8]. - MediBeacon specializes in fluorescent tracer agents and transdermal detection technology, holding over 60 granted U.S. patents and more than 245 patents worldwide [9].

Financial Data and Key Metrics Changes - Consolidated total revenue for Q3 2025 was $347.1 million, an increase of 43.3% compared to $242.2 million in the prior year period [16] - Net loss attributable to common stockholders decreased to $9.4 million, or $0.71 per fully diluted share, compared to $15.3 million, or $1.18 per fully diluted share in the prior year [16] - Total adjusted EBITDA was $19.8 million in Q3 2025, up from $16.8 million in the prior year period [16][17] Business Line Data and Key Metrics Changes - Infrastructure segment revenue increased by 45.4% to $338.4 million from $232.8 million in the prior year quarter, driven by project timing and size at DBM Global [17] - DBM Global achieved adjusted EBITDA of $23.5 million, up from $20.9 million in the prior year [18] - Life sciences revenue increased by 3.3% to $3.1 million, primarily driven by R2's sales growth [19][20] - Spectrum segment revenue decreased by $800,000 to $5.6 million, with adjusted EBITDA down by $700,000 to $1 million [21] Market Data and Key Metrics Changes - DBM Global's adjusted backlog increased by approximately $500 million to just over $1.6 billion since the end of 2024 [7] - R2's year-to-date revenues increased by approximately 65% over the same period from last year, with significant growth in international markets [11] - Spectrum faced a challenging advertising environment, but new network launches are showing signs of strength in Q4 [15] Company Strategy and Development Direction - The company is exploring strategic alternatives for DBM Global and HC2 Broadcasting, indicating a focus on optimizing asset value [5] - There is a commitment to exiting life science businesses, although this process has taken longer than expected [5] - The company is focused on enhancing its infrastructure and data center capabilities, anticipating growth in these areas [9] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the momentum building for 2026, driven by a growing adjusted backlog and improving market conditions [9] - The approval of MediBeacon's Lumitrace injection is expected to unlock access to a significant healthcare market in China [10] - Management noted that while EBITDA may come in slightly below 2024 levels, there is confidence in the growth trajectory for the infrastructure segment [9] Other Important Information - As of September 30, 2025, the company reported a backlog of $1.5 billion and an adjusted backlog of $1.6 billion [19] - The company had total principal outstanding indebtedness of $700.4 million, an increase from $668.3 million at the end of 2024 [23] Q&A Session Summary - There were no questions during the Q&A session, indicating a lack of immediate inquiries from analysts or investors [24]

Financial Data and Key Metrics Changes - Consolidated total revenue for Q3 2025 was $347.1 million, an increase of 43.3% compared to $242.2 million in the prior year period [16] - Net loss attributable to common stockholders decreased to $9.4 million, or $0.71 per fully diluted share, compared to $15.3 million, or $1.18 per fully diluted share in the prior year [16] - Total adjusted EBITDA was $19.8 million in Q3 2025, up from $16.8 million in the prior year [16] Business Line Data and Key Metrics Changes - Infrastructure segment revenue increased 45.4% to $338.4 million from $232.8 million in the prior year quarter, driven by project timing and size at DBM Global [17] - Life sciences revenue increased 3.3% to $3.1 million from $3 million in the prior year quarter, primarily due to R2's increased sales [20] - Spectrum segment revenue decreased by $800,000 to $5.6 million, with adjusted EBITDA decreasing by $700,000 to $1 million [20] Market Data and Key Metrics Changes - DBM Global's adjusted backlog increased by approximately $500 million to just over $1.6 billion since the end of 2024 [6] - R2's year-to-date revenues increased by approximately 65% over the same period from last year, with a 206% surge in demand outside of North America [11] - Spectrum faced a challenging advertising environment, with softness in ad sales persisting through Q3 [15] Company Strategy and Development Direction - The company is focused on exiting its life science businesses, although this strategy has taken longer than expected [5] - There is an ongoing sales process for DBM Global, with expectations of benefiting from a positive macro environment in the U.S. [5] - The company is exploring strategic alternatives for HC2 Broadcasting Holdings in accordance with spectrum debt requirements [5] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the momentum building for 2026, driven by a growing adjusted backlog and improving market conditions [9] - The company anticipates EBITDA to come in slightly below 2024 levels but remains encouraged by the performance of DBM Global [9] - MediBeacon's recent regulatory approval in China is expected to unlock access to a significant healthcare market [10] Other Important Information - As of September 30, 2025, the company had total principal outstanding indebtedness of $700.4 million, up $32.1 million from the end of 2024 [23] - The company had $35.5 million of cash and cash equivalents, down from $48.8 million as of December 31, 2024 [22] Q&A Session Summary - There were no questions during the Q&A session [23]

INNOVATE Corp. Q3 2025 Earnings Release Supplement November 12, 2025 INNOVATE Corp. 2025 Safe Harbor Disclaimers Cautionary Statement Regarding Forward-Looking Statements Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: This presentation contains, and certain oral statements made by our representatives from time to time may contain, "forward-looking statements." Generally, forward-looking statements include information describing actions, events, results, strategies and expe ...

Debt Refinancing and Agreements - INNOVATE Corp. refinanced its debt in 2025, extending maturities and providing necessary capital for operations [230]. - DBMG secured a credit agreement for up to $220 million, including a $135 million revolving credit facility and an $85 million term loan, maturing on May 20, 2030 [231]. - Lancer Capital and R2 Technologies amended a senior secured promissory note, extending its maturity to August 1, 2026, with a principal amount of $43.5 million [234]. - Spectrum extended the maturity of its $69.7 million notes to September 30, 2026, incurring additional exit fees of $9.9 million [237]. - INNOVATE issued $360.4 million in 10.50% senior secured notes due February 1, 2027, as part of a debt exchange [239]. - The effective interest rate on the 10.50% 2027 Senior Secured Notes was 14.4% as of September 30, 2025 [297]. - The 2027 Convertible Notes, totaling $53.5 million, were issued at 100% of par and mature on March 1, 2027, with an effective interest rate of 11.1% [308]. - The total outstanding balance of DBMG's term loans was $83.9 million, with an effective interest rate of 7.87% as of September 30, 2025 [326]. - The Life Sciences segment has aggregate principal outstanding debt of $46.5 million with Lancer as of September 30, 2025 [328]. - The amended CGIC Note has a principal amount of $43.0 million, with an effective interest rate of 14.6% as of September 30, 2025 [320]. - The total principal outstanding debt for the Infrastructure segment was $104.1 million as of September 30, 2025 [323]. - The Non-Operating Corporate segment's principal indebtedness rose to $480.1 million as of September 30, 2025, compared to $429.9 million as of December 31, 2024, marking an increase of $50.2 million [350]. Financial Performance - Revenue for the three months ended September 30, 2025, increased by $104.9 million to $347.1 million compared to $242.2 million for the same period in 2024, primarily driven by the Infrastructure segment [243]. - Revenue for the nine months ended September 30, 2025, decreased by $7.2 million to $863.3 million from $870.5 million for the same period in 2024, mainly due to the Infrastructure segment [244]. - Income from operations for the three months ended September 30, 2025, increased by $0.2 million to $6.1 million from $5.9 million for the same period in 2024 [245]. - Income from operations for the nine months ended September 30, 2025, decreased by $23.1 million to $14.4 million from $37.5 million for the same period in 2024 [246]. - Interest expense for the three months ended September 30, 2025, increased by $2.2 million to $23.4 million from $21.2 million for the same period in 2024 [247]. - Interest expense for the nine months ended September 30, 2025, increased by $10.1 million to $65.0 million from $54.9 million for the same period in 2024 [248]. - Adjusted EBITDA for the three months ended September 30, 2025, increased by $3.0 million to $19.8 million from $16.8 million for the same period in 2024 [282]. - Adjusted EBITDA for the nine months ended September 30, 2025, decreased by $13.6 million to $42.7 million from $56.3 million for the same period in 2024 [282]. Segment Performance - Life Sciences Segment revenue for the three months ended September 30, 2025, increased by $0.1 million to $3.1 million from $3.0 million for the same period in 2024, attributed to R2 Technologies [264]. - Life Sciences Segment revenue for the nine months ended September 30, 2025, increased by $3.7 million to $9.4 million from $5.7 million for the same period in 2024, driven by increased unit sales outside North America [265]. - Spectrum Segment revenue for the three months ended September 30, 2025, decreased by $0.8 million to $5.6 million from $6.4 million for the same period in 2024, primarily due to customer terminations and a downturn in the advertising market [268]. - For the nine months ended September 30, 2025, Spectrum Segment revenue decreased by $1.4 million to $17.5 million from $18.9 million for the same period in 2024, also driven by customer terminations [269]. - Net income from the Infrastructure segment for Q3 2025 increased by $2.6 million to $8.8 million compared to $6.2 million in Q3 2024 [284]. - Net loss from the Life Sciences segment for Q3 2025 decreased by $1.4 million to $4.6 million from $6.0 million in Q3 2024 [285]. - Net loss from the Spectrum segment for Q3 2025 increased by $0.3 million to $5.9 million from $5.6 million in Q3 2024 [286]. Cash Flow and Capital Expenditures - Cash provided by operating activities improved to $45.5 million for the nine months ended September 30, 2025, compared to cash used of $32.3 million in the same period of 2024, marking a $77.8 million improvement [364]. - Cash used in investing activities increased to $15.1 million for the nine months ended September 30, 2025, up from $4.0 million in the same period of 2024, reflecting a net increase of $11.1 million [365]. - Cash used in financing activities was $44.1 million for the nine months ended September 30, 2025, compared to cash provided of $6.4 million in the same period of 2024, an increase of $50.5 million [366]. - Capital expenditures totaled $18.6 million for the nine months ended September 30, 2025, compared to $11.8 million in the same period of 2024 [362]. Strategic Alternatives and Concerns - The company is evaluating strategic alternatives, including potential acquisitions and divestitures, to optimize its capital structure [228]. - The company has substantial doubt about its ability to continue as a going concern within one year after the issuance of the financial statements [356]. - The company faces substantial doubt about its ability to continue as a going concern due to upcoming maturities of corporate debt and potential breaches of covenants [357]. - Management plans to explore asset sales and raise additional capital to alleviate financial conditions, but there are no assurances of success [359]. - The company is exploring future acquisitions and may require additional equity or debt financing to support expansion [367]. Market and Operational Risks - The company's operations are subject to cyclical patterns, with performance potentially affected by project delays and economic conditions [224]. - The company highlighted the potential inability to generate sufficient liquidity, margins, earnings per share, and cash flow from its operating segments [376]. - INNOVATE Corp. faces risks related to the passing of key personnel, including the former CEO, which may impact management transition [376]. - The company is concerned about the effects of geopolitical events, such as conflicts in the Middle East and Ukraine, on financial markets and economic conditions [376]. - DBM Global Inc. noted potential adverse impacts from weather affecting project performance and completion timelines, leading to increased costs [378]. - The Life Sciences segment of DBM Global Inc. may struggle to refinance existing debt or raise additional capital when needed [378]. - HC2 Broadcasting Holdings Inc. cautioned against undue reliance on forward-looking statements, emphasizing the uncertainty of future outcomes [379].

Core Insights - INNOVATE Corp. reported a consolidated revenue of $347.1 million for Q3 2025, marking a 43.3% increase from $242.2 million in Q3 2024, driven primarily by the Infrastructure segment [10][12] - The company experienced a net loss of $9.4 million, a significant improvement from a net loss of $15.3 million in the same quarter last year, attributed to increased tax benefits and gross profit [12][14] - Adjusted EBITDA for Q3 2025 was $19.8 million, up from $16.8 million in Q3 2024, reflecting strong performance in the Infrastructure and Life Sciences segments [12][16] Infrastructure - DBM Global, a subsidiary, reported revenue of $338.4 million for Q3 2025, a 45.4% increase compared to $232.8 million in Q3 2024 [11] - The adjusted backlog for DBM Global grew to $1.6 billion, supported by a robust pipeline of high-quality projects [3][11] - The Infrastructure segment's growth was driven by increased activity in commercial construction projects [12] Life Sciences - MediBeacon received regulatory approval to sell the Transdermal GFR System in China, expanding its market reach [3][11] - R2 Technologies reported a revenue increase of 3.3% year-over-year, with gross worldwide system unit sales growing by 39.8% [11][12] Spectrum - The Spectrum segment reported a revenue decline to $5.6 million from $6.4 million in the prior year, attributed to customer terminations and a downturn in direct response advertising [12][11] - Despite challenges, there are signs of recovery in advertising sales for Q4 2025, with new network launches and datacasting initiatives underway [12][11] Financial Performance - Total revenue for the nine months ended September 30, 2025, was $863.3 million, slightly down from $870.5 million in the same period of 2024 [10][12] - The company’s cash and cash equivalents decreased to $35.5 million from $48.8 million as of December 31, 2024 [18][12] - The company initiated a sales process for DBM Global due to unmet milestones related to its refinancing transactions [6][5]

Core Viewpoint - INNOVATE Corp. will release its financial results for Q3 2025 on November 12, 2025, after market close, followed by an earnings conference call at 4:30 p.m. ET [1]. Group 1: Financial Results Announcement - The financial results for the third quarter of 2025 will be announced on November 12, 2025 [1]. - An earnings conference call will take place on the same day to discuss the results, operations, and strategy [1]. Group 2: Conference Call Details - The conference call will be accessible via a domestic dial-in number (1-877-704-4453) and an international dial-in number (1-201-389-0920) [3]. - A replay of the conference call will be available approximately three hours after the call and can be accessed until November 26, 2025 [3]. Group 3: Company Overview - INNOVATE Corp. operates in three key areas: Infrastructure, Life Sciences, and Spectrum, employing approximately 3,100 people [4].

Core Viewpoint - MediBeacon's Transdermal GFR System (TGFR) has received approval in China, marking a significant advancement in kidney function assessment technology, which is expected to improve patient management in chronic kidney disease (CKD) [1][4][5]. Company Overview - INNOVATE Corp. is the parent company of MediBeacon, focusing on medical technology and has a commitment to expanding access to innovative healthcare solutions globally [8]. - MediBeacon specializes in fluorescent tracer agents and their transdermal detection, holding over 60 U.S. patents and more than 245 patents worldwide [9][10]. Product Details - The TGFR system includes Lumitrace (relmapirazin) injection, MediBeacon TGFR Monitor, and MediBeacon TGFR Sensor, which together facilitate the assessment of kidney function by measuring the clearance rate of the fluorescent agent [2][12]. - Lumitrace is a non-radioactive, non-iodinated compound designed for effective kidney function measurement without interference from medications or demographic factors [11][7]. Market Opportunity - Chronic Kidney Disease (CKD) affects approximately 11% of the 1.4 billion population in China, presenting a substantial market opportunity for the TGFR system [3]. - The approval of the TGFR system in China is seen as a major step in enhancing access to kidney health management tools [5]. Clinical Implications - The TGFR system aims to provide a more accurate and immediate assessment of kidney function compared to traditional methods, which can be influenced by various non-renal factors [5][6]. - The technology is expected to transform kidney disease management by allowing real-time assessment at the point of care, potentially improving patient outcomes [7].