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 - 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]

Financial Performance - INNOVATE Corp's Q2 2025 consolidated revenue was $242 million[16], a decrease of $71.1 million or 22.7% compared to Q2 2024[21] - The company reported a net loss attributable to INNOVATE Corp of $198 million in Q2 2025[17] - Adjusted EBITDA for Q2 2025 was $157 million[20], a decrease of $11 million compared to Q2 2024[21] Segment Performance - Infrastructure (DBMG) - Infrastructure segment revenue decreased to $2331 million in Q2 2025 from $3052 million in Q2 2024[16], a 236% decrease[25] - Infrastructure segment's adjusted EBITDA decreased by $132 million year-over-year[21] to $193 million[17] - DBMG's adjusted backlog remained strong at $13 billion in Q2 2025[12] Segment Performance - Life Sciences (R2 Technologies) - Life Sciences segment revenue increased to $32 million in Q2 2025 from $17 million in Q2 2024[16], an 882% increase[12, 21] - R2 Technologies experienced gross system unit sales growth of 1245% over the prior year quarter worldwide[30] Segment Performance - Spectrum - Spectrum segment revenue decreased to $57 million in Q2 2025 from $62 million in Q2 2024[16] - Spectrum segment reported adjusted EBITDA of $10 million in Q2 2025[12, 17] Debt and Refinancing - On August 4, 2025, INNOVATE closed a series of indebtedness refinancing transactions[12] - Total principal outstanding debt as of June 2025 was $6413 million[35]