INNOVATE Corp. announced its consolidated results for the second quarter of 2025, reporting a consolidated revenue of $242.0 million, a 22.7% decrease from Q2 2024. The company recorded a net loss attributable to common stockholders of $22.0 million, or $1.67 per fully diluted share, a significant shift from a net income of $14.1 million, or $1.08 per share, in the prior year period.
Total Adjusted EBITDA for Q2 2025 was $15.7 million, down from $26.7 million in Q2 2024. Consolidated interest expense increased by $4.9 million to $21.4 million, primarily due to higher exit fees, capitalized unpaid interest in Life Sciences and Spectrum, and increased interest rates in Infrastructure. The company also recognized a $4.4 million step-up gain related to MediBeacon's FDA approval.
Despite recent refinancing transactions that extended maturities for 81.7% of its debt, INNOVATE acknowledged 'substantial doubt about its ability to continue as a going concern within one year.' This is primarily due to remaining near-term maturities of R2 Technologies' debt and cross-default provisions in its Senior Secured Notes. Management's plan to alleviate this involves pursuing asset sales, further debt refinancing, and raising additional capital.
Operationally, DBM Global maintained a strong adjusted backlog of $1.3 billion and is positioned to outperform 2024 in the second half. MediBeacon's TGFR system is on track for commercial sale in Q4 2025, with Lumitrace approval expected by year-end. R2 Technologies is anticipated to deliver another strong quarter in Q3, and Spectrum's ad sales outlook for Q4 2025 is promising, with datacasting expected to be revenue-generating by year-end.
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