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 ...

Core Insights - TWFG, Inc. reported a total revenue increase of 21.3% year-over-year for Q3 2025, reaching $64.1 million, driven by strong organic growth and improved market conditions [1][6][14] - The company achieved a net income of $9.6 million for the quarter, reflecting a net income margin of 15.0%, up from 13.0% in the previous year [10][11] - Adjusted EBITDA rose 44.7% to $17.0 million, with an adjusted EBITDA margin of 26.5%, indicating effective cost management and operational scalability [11][14] Financial Performance - Total Written Premiums increased by 16.9% to $467.7 million compared to $400.1 million in the same period last year, supported by acquisitions and expansion efforts [5][6] - Organic Revenue Growth Rate for the quarter was 10.2%, driven by new business production and improved retention levels [8][40] - Adjusted Net Income increased by 55.3% to $13.0 million, with an adjusted net income margin of 20.2% [10][11] Operational Highlights - The company added eight new retail locations and 370 independent agents to its MGA platform during the quarter, enhancing its distribution capabilities [3][4] - TWFG's diversified distribution platform, which includes independent agency operations and proprietary MGA programs, continues to perform well amid stabilizing pricing trends in the insurance market [4][5] - The company anticipates continued double-digit organic growth and accretive M&A activity throughout 2026, supported by favorable market conditions [14][17] Market Conditions - The personal and commercial lines markets are normalizing, leading to improved retention rates and stronger client demand [3][4] - The company is experiencing enhanced carrier capacity, which positions it well for sustained, profitable growth [3][4]

Core Insights - WEBTOON Entertainment reported a third quarter revenue growth of 8.7%, with a constant currency growth of 9.1%, driven by Paid Content and IP Adaptations [1][6][3] - The company experienced a net loss of $11.1 million, a significant decline from a net income of $20.0 million in the prior year, attributed to lower other income and higher income tax expenses [6][3] - Adjusted EBITDA was $5.1 million, down from $28.9 million in the previous year, resulting in an Adjusted EBITDA Margin of 1.4% compared to 8.3% [6][3] Financial Performance - Total revenue for the third quarter was $378.0 million, with Paid Content and IP Adaptations contributing to the growth, while Advertising revenue declined [6][3] - The diluted loss per share was $0.09, compared to diluted earnings per share of $0.15 in the prior year [6][3] - Cash and cash equivalents stood at approximately $584.6 million, with no debt reported [1][6] Strategic Developments - The company is expanding its relationship with Disney, including a non-binding agreement for Disney to acquire a 2% equity interest in WEBTOON Entertainment [3] - WEBTOON announced plans to co-produce 10 animated projects with Warner Bros. Animation for global distribution [8] Future Outlook - For the fourth quarter of 2025, the company expects Adjusted EBITDA guidance to include $16.5 million in non-cash expenses [4]

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 Insights - Sea Limited (SE) reported adjusted earnings of 78 cents per share in Q3 2025, a 44.4% increase year-over-year, but missed the Zacks Consensus Estimate by 24.27% [1] - Revenues reached $6 billion, up 38.3% year-over-year, driven by growth in e-commerce and digital financial services, beating the Zacks Consensus Estimate by 3.35% [1] E-commerce Performance - E-commerce service revenues totaled $4.3 billion, reflecting a 34.9% year-over-year increase, including GAAP marketplace revenues of $3.8 billion and GAAP product revenues of $0.5 billion [3] - Gross Merchandise Value (GMV) increased by 28.4% year-over-year to $32.2 billion, with gross orders reaching 3.6 billion, also a 28.4% increase [4] Digital Entertainment Segment - Digital Entertainment revenues were $653 million, marking a 31.2% year-over-year growth, driven by an increase in active users and paying user penetration [2] - Quarterly active users reached 670.8 million, up 6.7% year-over-year, while paying users increased by 31.2% to 65.9 million, raising the paying user ratio to 9.8% from 8% [2] Digital Financial Services - Revenues surged 60.8% year-over-year to $989.9 million, driven by a loan book growth to $7.9 billion, up 69.8% [5] - Non-performing loans over 90 days remained stable at 1.1% of total consumer and SME loans, indicating strong credit quality [5] Financial Metrics - Gross profit increased 39.7% year-over-year to $2.6 billion, with gross margin expanding by 40 basis points to 43.4% [7] - Adjusted EBITDA climbed 68% to $874 million, with an adjusted EBITDA margin of 14.6%, expanding 260 basis points year-over-year [8][9] Cash Flow and Balance Sheet - As of September 30, 2025, cash and cash equivalents stood at $3.07 billion, up from $2.17 billion as of June 30, 2025 [11] - The company generated $1.18 billion in cash from operating activities in the reported quarter, compared to $1.62 billion in the previous quarter [11]

Financial Performance - Total revenue reached $1.2 billion[12] - Systemwide comparable sales increased by 12.7%[12] - Adjusted EBITDA was $201.1 million with a 16.9% margin[12] - Net income amounted to $150.4 million, or $0.71 per share[12] - Net income was boosted by a $125.2 million net benefit from a federal tax credit in Brazil[14] Digital Sales & Loyalty - Digital sales contributed approximately 61% of total sales[12] - Loyalty program registered members increased to 23.6 million[22] Divisional Performance - Brazil's revenue was $452.6 million[24] - NOLAD (Northern Latin America Division) revenue was $328.5 million[25] - SLAD (Southern Latin America Division) revenue was $411.8 million[25] Development & Capital Expenditure - Opened 22 restaurants during the quarter, with 19 being freestanding[12] - Capital expenditures totaled $75.8 million, including $44.2 million for new restaurant openings[17] Balance Sheet - Net debt stood at $474 million[43] - Leverage ratio is 1.2x[44]

Core Insights - Smart Sand, Inc. reported strong performance in Q3 2025, with increases in sales volumes, contribution margin, Adjusted EBITDA, and free cash flow compared to Q2 2025 [2][3] Financial Performance - In Q3 2025, tons sold reached approximately 1,472,000, a 3% increase from Q2 2025 and a 24% increase year-over-year [4] - Revenues for Q3 2025 were $92.8 million, up from $85.8 million in Q2 2025 and $63.2 million in Q3 2024, driven by higher sales volumes and average selling prices [5] - Cost of goods sold increased to $77.8 million in Q3 2025, up from $76.8 million in Q2 2025 and $56.7 million in Q3 2024, primarily due to increased sales volumes [6] - Gross profit for Q3 2025 was $14.9 million, compared to $9.0 million in Q2 2025 and $6.5 million in Q3 2024, reflecting higher sales volumes and a $4.4 million excess tons payment [7] - Operating expenses were $9.6 million in Q3 2025, up from $9.0 million in Q2 2025 but down from $11.4 million in Q3 2024 [8] - Net income for Q3 2025 was $3.0 million, or $0.08 per share, compared to $21.4 million in Q2 2025 and a net loss of $(0.1) million in Q3 2024 [10] - Contribution margin in Q3 2025 was $21.7 million, or $14.76 per ton sold, compared to $15.8 million in Q2 2025 and $13.2 million in Q3 2024 [11] - Adjusted EBITDA for Q3 2025 was $13.6 million, up from $7.8 million in Q2 2025 and $5.7 million in Q3 2024 [11] Cash Flow and Capital Management - Net cash provided by operating activities in Q3 2025 was $18.2 million, compared to $(5.1) million in Q2 2025 and $5.8 million in Q3 2024 [13] - Free cash flow for Q3 2025 was $14.8 million, resulting from net cash provided by operating activities of $18.2 million and capital expenditures of $3.4 million [14] - The company anticipates being free cash flow positive for the year 2025 [14] Shareholder Returns - In August 2025, the company paid a special cash dividend of $0.10 per share, totaling $4.3 million [18] - Year-to-date, Smart Sand has returned $6.4 million to shareholders through share repurchases and special dividends in 2025 [3] Market Position and Outlook - Smart Sand continues to expand its market presence, achieving record sales volumes in Canada and strengthening its customer base in Industrial Product Solutions [3] - The company is well-positioned to benefit from the increasing demand for natural gas production to support growing LNG export capacity in the U.S. and Canada [3] - Despite potential seasonal slowdowns, the company expects sales volumes for the year to be in the range of 5.1 million to 5.4 million tons [3]

Core Insights - Creative Realities, Inc. announced its financial results for the fiscal third quarter ended September 30, 2025, highlighting a transformational acquisition of Cineplex Digital Media (CDM) that is expected to enhance growth and profitability moving forward [1][3]. Financial Performance - Sales for the third quarter were $10.5 million, down from $14.4 million in the same period of fiscal 2024 [4][6]. - Hardware revenue decreased to $4.2 million from $5.2 million year-over-year, while service revenue fell to $6.4 million from $9.2 million [4][6]. - Consolidated gross profit was $4.8 million, compared to $6.6 million in the prior-year period, with a gross margin of 45.3% [5][6]. - The company reported a net loss of $7.8 million for the third quarter, compared to a net income of $0.1 million in the prior-year period [6][8]. - Adjusted EBITDA was $0.8 million, down from $2.3 million in the prior-year period [6][9]. Acquisition Impact - The acquisition of CDM for CAD $70 million (USD $42.7 million) is expected to significantly improve the company's growth trajectory and profitability through cross-selling opportunities and synergies [3][6]. - The addition of three new board members with extensive industry experience is anticipated to strengthen the company's leadership as it enters a new growth phase [3][6]. Balance Sheet Overview - As of September 30, 2025, the company had cash on hand of approximately $0.3 million, down from $1.0 million at the end of 2024 [10]. - Outstanding debt increased to approximately $39.9 million after accounting for the acquisition and related expenses [10]. Operational Changes - Sales and marketing expenses decreased to $1.4 million, while general and administrative expenses rose to $5.0 million, reflecting increased stock-based compensation and transaction expenses related to the acquisition [7][8]. - The company experienced an operating loss of approximately $7.3 million, including a non-cash software impairment charge of $5.7 million [8][9].

Core Insights - Pyxus International, Inc. reported a year-over-year gross margin expansion and a $13.7 million increase in operating income for the second quarter of fiscal 2026, reflecting strong performance and operational execution [1][2][10] - The company has updated its full-year sales guidance to a range of $2.4 billion to $2.6 billion, up from the previous range of $2.3 billion to $2.5 billion, and tightened its adjusted EBITDA guidance to $215 million to $235 million [15] Financial Performance - Second quarter sales and other operating revenues increased to $570.2 million compared to $566.3 million in the prior year's second quarter, driven by larger crop volumes in Africa and South America [5] - Gross profit as a percentage of sales improved to 15.4% in the second quarter of fiscal 2026 from 13.3% in the same period last year, attributed to a better product mix and increased processing volumes [7][10] - The company's operating income rose to $46.7 million from $33.0 million in the second quarter of fiscal 2025, while adjusted EBITDA increased to $54.8 million from $44.3 million [10] Inventory and Market Conditions - Tobacco inventory at the end of the second quarter was $1,102.8 million, up from $943.3 million a year earlier, reflecting larger crop availability [12] - Uncommitted inventory represented 2.7% of total processed inventory, indicating steady customer demand despite recent oversupply conditions in the global tobacco market [13] Operational Efficiency - The company reduced its average operating cycle time to 167 days in the second quarter, down from 179 days in the same period last fiscal year, enhancing operational efficiency [14] - Selling, general, and administrative expenses increased slightly to $40.1 million, remaining well managed [9] Strategic Focus - Pyxus is focused on optimizing its operating cycle and accelerating the repayment of seasonal financing to strengthen its balance sheet [4] - The company anticipates steady demand in the near term but is preparing for a potential market shift to oversupply with another large crop projected next season [3]

Core Insights - Sanara MedTech Inc. reported a strong financial performance for Q3 2025, with net revenue growth of 22% year-over-year, driven primarily by a 24% increase in sales of surgical soft tissue products [3][6][10]. Financial Summary - Q3 2025 net revenue was $26.3 million, compared to $21.7 million in Q3 2024, marking an increase of $4.7 million [6][10]. - For the first nine months of 2025, net revenue reached $75.6 million, up 25% from $60.4 million in the same period of 2024 [10][16]. - Gross profit for Q3 2025 was $24.5 million, a 24% increase from $19.7 million in Q3 2024, with a gross margin of 93% [7][10]. - Operating income for Q3 2025 was $2.9 million, compared to $0.8 million in Q3 2024, reflecting a 278% increase [9][10]. Operational Developments - The company has ceased operations of its THP segment as part of a strategic realignment to enhance operational efficiency and focus on its core surgical business [3][5][10]. - The strategic realignment is expected to support sustained long-term growth and value creation [3][10]. Profitability Metrics - Net income from continuing operations for Q3 2025 was $0.8 million, compared to a net loss of $0.2 million in Q3 2024 [10][12]. - Adjusted EBITDA for Q3 2025 was $4.9 million, up from $2.6 million in Q3 2024, indicating improved profitability [10][13]. Cash Flow and Debt - As of September 30, 2025, the company had $14.9 million in cash and $45.1 million in long-term debt, compared to $15.9 million and $30.7 million, respectively, at the end of 2024 [14][10]. - Net cash provided by operating activities in Q3 2025 was $2.2 million, slightly up from $2.1 million in Q3 2024 [13][10].