INNOVATE Corp.

Good afternoon and welcome to Innovate Corps' second quarter 2025 earnings conference call. All participants will be in a listen-only mode. After the prepared remarks and presentation, there will be a question and answer session. Please note this event is being recorded. I would now like to turn the conference call over to Neil Nick Sicker with Investor Relations. Please go ahead.

Good afternoon. Thank you for being with us to review Innovate's second quarter 2025 earnings results. We are joined today by Paul Boyk, Innovate's interim CEO, and Mike Sena, Innovate's CFO. We have posted our earnings release and our slide presentation on our website at innovatecorp.com. We will begin our call with prepared remarks to be followed by a Q&A session. This call is also being simulcast and will be archived on our website. During this call, management may make certain statements and assumptions which are not historical facts, will be forward-looking, and are being made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Any such forward-looking statements involve risks, assumptions, and uncertainties and are subject to certain assumptions and risk factors that could cause Innovate's actual results to differ materially from these forward-looking statements. The risk factors that could cause these differences are more fully discussed in the cautionary statement that is included in our earnings release and the slide presentation and further detailed in our 10-K and other filings with the SEC. In addition, the forward-looking statements included in this conference call are only made as of the date of this call and as stated in our SEC reports. Innovate disclaims any intent or obligation to update or revise these forward-looking statements except as expressly required by law. Management will also refer to certain non-GAAP financial measures such as adjusted EBITDA. We believe that these measures provide useful supplemental data that, while not a substitute for GAAP measures, allow for greater transparency in the review of our financial and operational performance. At this point, it is my pleasure to turn things over to Paul Voigt.

Good afternoon. We are pleased to report our second quarter 2025 financial results and will provide you with an update on our three operating segments. Innovate delivered consolidated revenues of $242 million and adjusted EBITDA of $15.7 million in the second quarter. The second quarter continued to showcase our commitment to long-term value creation. We took meaningful steps to allow us to focus on executing our strategic plans, including advancing a series of refinancing transactions to extend our debt maturities. We remain focused on execution across each of our operating segments and I'm proud of the momentum our teams are building. To start the review of the subs at Infrastructure, DBM Global achieved revenues of $233.1 million and adjusted EBITDA of $19.3 million. During the quarter, DBM has seen gross margin compression year over year of approximately 230 basis points to .9% and adjusted EBITDA margin compression of approximately 240 basis points to .3% year over year. Despite the year over year decrease in margins, we remain impressed by the performance of DBMG who delivered better than expected margins in the second quarter. As far as our adjusted backlog, it has increased year over year by approximately $300 million to just over $1.3 billion. We also are happy to report that DBM has a sizable project that will add approximately $400 million to adjusted backlog in the third quarter and we remain very optimistic on the pipeline. Given the deferment of awards in the second half of 2024, the outcomes for DBM for the first half 2025 are aligned with what we anticipated. DBM remains well positioned in the second half of 2025 with a strong backlog and robust pipeline. Despite the fluctuating tariff situation, DBM continues to book projects into its backlog and are not seeing an impact to the demand from its customers. Operationally, the team remains focused on margin, discipline, and control as we manage through the inflationary pressure. Nevertheless, we continue to pursue strategic bids that align with our risk return profile. We remain confident in DBM's positioning as one of the leading integrated steel fabrication and construction service firms in North America. Within life sciences, Metabekin continues to make steady traction in exploring the potential application for transdermal GFR monitoring systems with clinicians in hospitals and other settings. Additionally, we previously announced that the National Medical Products emissions in China also approved Metabekin, TGFR monitor, and TGFR sensor. Lumetrace continues to be under review and is on track for approval by the end of this year. The Journal of American Society of Nephrology August print edition is expected to include transdermal GFR data published online earlier this year. Metabekin's TGFR system is still on track to be available for commercial sale in the fourth quarter of this year. While we continue to make progress on our strategic alternatives, there is no further information on any strategic alternatives since our last call. R2 built on its recent momentum with another strong quarter, increasing top line revenue to $3.2 million in the second quarter of 2025 compared to $1.7 million in the second quarter of 2024. This momentum was fueled by increased shipments outside North America. R2 now carries a backlog of approximately 50 units globally, positioning the company for continued growth. With this sizeable backlog, another significant order received from its partner in China and growing consumable revenue associated with a continually increasing install base, we expect R2 to return another strong quarter in the third quarter. R2's providers love glacial skin for the device's unique ability to deliver controlled cooling for inflammation reduction, skin brightening, and pigment correction all without any downtime. Along with providing stunning results for patients, glacial skin devices deliver impressive business outcomes for providers. In Q2 2025, patient treatments grew .1% while average monthly utilization per provider increased .5% compared to the same period last year. Glacial skin rising brand awareness is proven to be a powerful sales driver, with social media engagement growth outperforming industry competitors by 823%. Supporting this surge, R2 saw quarter over quarter increases of .6% in social media mentions and .6% in web users. We are very satisfied with R2's achievements and maintain our belief that the market potential for R2 is substantial. We are extremely pleased with the progress the company has made over the past year. Moving the spectrum, second quarter revenues was $5.7 million and adjusted EBITDA was $1 million. While first half results were principally impacted by two network cancellations, we are seeing promising trends with recent launches on our platform of three strong networks, Marathon Ventures, Nosey, and Confess, which both launched in April and are performing well, and the August 1 launch of Lionsgate's Moviesphere Network, a channel of mostly recent films which represent new and exciting content for the -the-air market. We expect to see more -the-air network content, particularly from streaming space which has become overcrowded. Ed sale softness, which the industry experienced in the first half year in the wake of volatility in the economy, has started to improve with the outlook for the fourth quarter 2025 looking very promising. We continue to review data casting as a compelling long-term opportunity for us, and we are actively engaged in exploring commercial applications principally using ATS 3.0 for now. We continue to work closely with a large global network group that's exploring broader commercial applications of broadcast data technology, focusing on gaming, entertainment, healthcare, and auto manufacturers, among other sectors that have interest. We just launched our fourth ATS 3.0 station in collaboration with them as we move toward commercial deployment. As before, we are open-minded on technology protocols and have worked closely with Qualcomm in exploring 5G broadcast. We already have a station converted to 5G in Fort Wayne, Indiana, and have done extensive and successful testing on carrying video signals to smartphones. The petition we filed with the FCC to allow the voluntary adoption of 5G broadcast low power TVs received considerable support from broadcasters and vendors during the comment period end of July 1, 2025. We continue to expect a decision on the petition by the end of the year. With that, I'll turn it over to Mike for a review of our financial and capital structure.