INNOVATE Corp.

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 Sikka with Investor Relations. Please go ahead.

Good afternoon. Thank you for being with us to review Innovate's third quarter 2025 earnings results. We are joined today by Paul Voigt, Innovate's interim CEO, and Mike Senna, 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 are 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's my pleasure to turn things over to Paul Voigt.

Good afternoon. We are pleased to report our third quarter 2025 financial results and will provide you with an update on our three operating segments. Innovate delivered consolidated revenues of $347.1 million and adjusted EBITDA of $19.8 million in the third quarter of 2025. Innovate's path to long-term value creation continued in the third quarter. Advancements toward our targets across all segments are ongoing as demonstrated by our third quarter results. We made progress across each operational area, and our commitment to performance remains strong. I am proud of the positive energy and momentum our teams have generated. Before we review our segments, we would like to provide an update on our strategic alternatives and recent refinancing transactions. The company has engaged Jefferies and Company and initiated a sales process for DBM in accordance with our senior note requirements and HC2 broadcasting holdings has engaged a banker and is exploring strategic alternatives in accordance with the spectrum debt requirements. We believe the market is ripe for an asset like DBMG given their positioning to take advantage of the positive macro environment in the U.S. with continued commitments from companies to reinvest in the U.S. market along with strong growth expected around data centers. We also see significant activity in the spectrum market that we believe has a positive impact on options for our spectrum business. We, of course, are still highly focused on our strategy of exiting our life science businesses. While this strategy has taken longer than expected, we remain steadfast in our ability to ultimately realize the value of these businesses. With that, let's turn to our quarterly review of our segments. To start the review of the subs and infrastructure, DBM Global achieved revenues of $338.4 million and adjusted EBITDA of $23.5 million. During the quarter, DBM has seen gross margin compression year-over-year of approximately 510 basis points to 13.6%. and adjusted EBITDA margin compression of approximately 200 basis points to 6.9% year-over-year. Despite the year-over-year decrease in margins, we remain impressed by the performance of DBMG, evidenced in growth of our adjusted backlog, which has increased by approximately $500 million to just over $1.6 billion since the end of 2024. In fact, We have already added $431 million to the adjusted backlog for two newly awarded projects since the end of the third quarter. We remain highly impressed with DBM's global revenue performance through the first nine months of 2025. Despite a challenging macro environment for project sales in 2024, along with project timing shifts, DBM has delivered strong year to year-to-date results supported by disciplined execution and a robust backlog. Revenue for the year-to-date stands at $836.4 million, reflecting DBM's ability to secure and execute complex projects across its diversified portfolio. As we talked about earlier, DBM's backlog remains extremely strong. We are optimistic about several key project awards expected in the fourth quarter, which would not only boost our adjusted backlog, but also enhance visibility into the coming quarters. These sales along with the anticipated awards represent significant opportunities in both commercial and industrial sectors, reinforcing DBM's leadership position and growth trajectory. Our world-class management team remains focused on margin discipline and operational excellence as we prepare to execute these projects. While we anticipate EBITDA to come in slightly below 2024 levels, we are encouraged by the momentum building for 2026, driven by the growing adjusted backlog and improving market conditions. The majority of the work across the platform is primarily associated infrastructure, data centers, and advanced manufacturing. We expect this trend to continue. Conversely, when looking at the Northeast region of the United States, we are seeing the commercial market showing some positive signs with a few sizable projects starting to move forward. Turning to life sciences, MetaBeacon continues to hit key milestones as we previously expected. On October 21st, 2025, MetaBeacon received full regulatory approval from China's National Medical Products Administration for its Lumitrace injection, a non-radioactive, non-iodinated fluorescent agent. This approval completes the regulatory package required for the commercial launch of MetaBeacon transdermal GFR system in China, which combines the Lumitrace injection with the TGFR monitor and TGFR sensor. This approval unlocks access to a critical healthcare market, as chronic kidney disease is estimated to affect 11% of China's 1.4 billion people. representing approximately 154 million potential patients who may benefit from improved diagnostic tools. MetaBeacon's commercial and clinical development partnership with Wadong Medicine, established in July 2019, will support the introduction of the TGFR system into clinics across China, where it's expected to become an important tool for physicians managing kidney health. In addition, MetaBeacon's transdermal GFR system was highlighted in the August cover of the Journal of the American Society of Nephrology. JAFN is one of the most respected peer-reviewed kidney journals in the world. The peer-reviewed article in the journal included data that demonstrated the transdermal GFR system point-of-care methodology for the assessment of kidney functions in patients with normal to impaired kidney function and for full range of skin color types. R2 delivered another solid quarter with top line revenue of $3.1 million in the third quarter of 2025 compared to $3 million in the third quarter of 2024. R2 also has year-to-date revenues of $9.4 million representing an approximate increase of 65% over the same period from last year. This momentum was fueled by the increased demand outside of North America was surged 206% in the top line revenue for the nine months of 2025 compared to 2024, with an associated 392% increase in system sales for the same comparable period. R2 now carries a backlog of approximately 70 units globally. With this sizable backlog, growing consumable revenue associated with a continually increasing install base, and opening new markets in Bolivia, the Netherlands, and Belgium, we expect R2 to end the year strongly. We are happy with their progress and growth despite industry-level challenges in this market. Our two providers love glacial skin for their 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 the third quarter of 2025, patient treatments grew 102%, while average monthly utilization per provider increased 24% compared to the same period last year. Glacial Skin's rising brand awareness is proving to be a powerful sales driver, with social media engagement growth outperforming industry competitors by 3,687%. Supporting the surge for the nine months of 2025, R2 saw year-over-year increases of 88% in patient provider searches and 127% in website users. Our confidence in R2's significant market opportunity remains strong, and we are highly content with the company's accomplishments. Over the last year, we have been particularly impressed by the advancements R2 has achieved. Moving to Spectrum, Third quarter revenues was $5.6 million, and adjusted EBITDA was $1 million. Spectrum strengthened its content portfolio this quarter with several exciting new network launches. The August 1st debut of Lionsgate MovieSphere Gold Channel was a success, with HC2 Broadcasting serving as one of the principal distributors. In October, we introduced Sports First, a dynamic sports news channel now reaching 45 U.S. markets. Looking ahead, Black Vision, a new entertainment network, will be distributed exclusively by HC2 Broadcasting, both over the air and via streaming platforms. These additions underscore our commitment to delivering diverse, high-quality content and expanding our reach in key audience segments. Spectrum continues to face a challenging advertising environment with softness and ad sales persisting through the third quarter. However, new network launches are underway and fourth quarter ad sales are showing signs of strength. We continue to make meaningful progress in next generation broadcast technology through its collaboration with a large mobile carrier. Over the past three months, The team has worked closely to optimize the software and service performance. We will conduct extensive trials for major enterprise customers that will showcase the technology's unique capabilities during live sporting events. We are also actively exploring broader applications with hospitals, government first responders, utilities, and automotive manufacturers. A petition to the FCC seeking voluntary conversion of LPTV stations to 5G broadcast continues to receive strong support from industry stakeholders during the comment period. However, progress on the next steps has been temporarily delayed due to the ongoing government shutdown. With that, I'll turn it over to Mike for a review of our financial and capital structure.