INNOVATE Corp. reported a decline in financial performance for the first quarter of 2025, with total revenue of $274.2 million, down from $315.2 million in the same period of 2024. The company's gross profit also decreased to $45.5 million from $48.6 million year-over-year. Operating income improved slightly to $3.4 million compared to $2.8 million in the prior year, despite an increase in interest expenses, which rose to $20.2 million from $17.2 million. The net loss attributable to common stockholders was $24.8 million, or a loss of $1.89 per share, compared to a net loss of $17.7 million, or a loss of $2.21 per share, in the previous year.
The decline in revenue was primarily driven by a significant drop in the Infrastructure segment, which saw revenues decrease to $264.9 million from $307.9 million. This was attributed to reduced activity in commercial and transportation markets, which were partially offset by growth in healthcare and government sectors. The Life Sciences segment reported a revenue increase to $3.1 million from $1.0 million, while the Spectrum segment's revenue remained relatively stable at $6.2 million compared to $6.3 million in the prior year.
Operationally, INNOVATE Corp. experienced a decrease in cash and cash equivalents, which fell to $33.3 million from $48.8 million at the end of 2024. Accounts receivable also decreased to $164.5 million from $194.0 million, reflecting a reduction in contract assets. The company reported a total of 13,283,218 shares outstanding as of March 31, 2025, following a reverse stock split that took effect in August 2024. The company’s total liabilities increased slightly to $1,036.9 million from $1,034.8 million, with a notable rise in the current portion of debt obligations.
Looking ahead, INNOVATE Corp. faces challenges related to its debt obligations, particularly with upcoming maturities and covenants that may impact its ability to continue as a going concern. The company is exploring various strategies to address these issues, including refinancing existing debt, pursuing asset sales, and raising additional capital. Management has expressed uncertainty regarding the success of these initiatives, emphasizing the need for careful monitoring of financial conditions in the coming months.
About INNOVATE Corp.
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