INNOVATE (US:VATE)2025-08-05 21:30Financial Data and Key Metrics Changes - Consolidated revenues for the second quarter of 2025 were $242 million, a decrease of 22.7% compared to $313.1 million in the prior year period [15] - Adjusted EBITDA for the second quarter was $15.7 million, down from $26.7 million in the prior year [16] - Net loss attributable to common stockholders was $22 million, or $1.67 per fully diluted share, compared to net income of $14.1 million, or $1.03 per fully diluted share in the prior year [15][16] Business Line Data and Key Metrics Changes Infrastructure - Revenue decreased by 23.6% to $233.1 million from $305.2 million in the prior year quarter [16] - Adjusted EBITDA decreased to $19.3 million from $32.5 million in the prior year [16] - Gross margin compression of approximately 230 basis points to 17.9% and adjusted EBITDA margin compression of approximately 240 basis points to 8.3% year over year [6] Life Sciences - Revenue increased by 88.2% to $3.2 million from $1.7 million in the prior year quarter, primarily driven by R2's increased sales [18] - Adjusted EBITDA losses decreased due to a reduction in equity method losses from MediBeacon [18] Spectrum - Revenue decreased by $500,000 to $5.7 million, and adjusted EBITDA decreased by $500,000 to $1 million [18] Market Data and Key Metrics Changes - DBM Global's adjusted backlog increased year over year by approximately $300 million to just over $1.3 billion [6] - R2's backlog now carries approximately 50 units globally, positioning the company for continued growth [10] Company Strategy and Development Direction - The company is focused on executing strategic plans, including refinancing transactions to extend debt maturities [5][20] - The company is exploring commercial applications of broadcast data technology, particularly in gaming, entertainment, healthcare, and automotive sectors [13] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism regarding DBM's positioning and backlog despite challenges such as fluctuating tariffs and inflationary pressures [7][8] - The outlook for the fourth quarter of 2025 appears promising, particularly in the Spectrum segment as ad sales softness is expected to improve [12] Other Important Information - The company had $33.4 million in cash and cash equivalents as of June 30, 2025, down from $48.8 million at the end of 2024 [19] - The company announced early settlement of indebtedness refinancing transactions, allowing for extended debt maturities [20] Q&A Session Summary Question: No questions were asked during the Q&A session - There were no questions in the queue, and the call concluded without any inquiries from participants [23]