INNOVATE Corp. reported a significant decline in financial performance for the second quarter of 2025, with total revenue of $242.0 million, down 22.7% from $313.1 million in the same period last year. For the first half of 2025, revenue decreased to $516.2 million from $628.3 million, reflecting a 17.8% drop. The decrease was primarily attributed to the Infrastructure segment, which saw a revenue decline of $72.1 million in the second quarter and $115.1 million in the first half, largely due to project timing and completion issues. The Life Sciences segment, however, experienced growth, with revenue increasing from $1.7 million to $3.2 million in the second quarter, driven by higher sales of R2 Technologies' products.
The company's net loss attributable to common stockholders for the second quarter was $22.0 million, compared to a profit of $14.1 million in the prior year. For the first half, the net loss reached $46.8 million, a substantial increase from a loss of $3.6 million in the same period of 2024. This downturn was influenced by increased interest expenses, which rose to $21.4 million in the second quarter from $16.5 million a year earlier, and a loss from equity investees of $5.9 million, primarily due to increased losses recognized from MediBeacon.
Operationally, INNOVATE Corp. has been actively refining its business strategy, including a series of debt refinancing transactions completed on August 4, 2025, aimed at extending debt maturities and improving liquidity. The company has also been exploring asset sales and other strategic alternatives to enhance its capital structure. As of June 30, 2025, the company had $33.4 million in cash and cash equivalents, a decrease from $48.8 million at the end of 2024, and total debt obligations of $641.3 million, down from $668.3 million.
The Infrastructure segment's backlog stood at $1.25 billion as of June 30, 2025, indicating potential future revenue, although the company noted that a significant portion of this backlog is concentrated in a few large contracts. The Life Sciences segment's performance is expected to improve with ongoing product sales, while the Spectrum segment continues to face challenges due to customer losses and reduced advertising revenues. Looking ahead, INNOVATE Corp. remains focused on addressing its liquidity challenges and optimizing its operational efficiency to navigate the current market conditions.
About INNOVATE Corp.
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