INNOVATE Corp. Announces Third Quarter 2025 Results

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]