VATE

Good afternoon, and welcome to INNOVATE Corp. First Quarter 2026 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 over to your host, Anthony Rozmus with investor relations. Please go ahead.

Good afternoon. Thank you for being with us to review Innovate's first quarter 2026 earnings results. We are joined today by Paul Voigt, 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 the 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, 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 disclosed in the cautionary statement that is included in our earnings release and the slide presentation, and further details 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 this date of the 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 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 first quarter 2026 financial results. We'll provide you with an update on our three operating segments. For the first quarter, Innovate delivered consolidated revenues of $364.8 million and adjusted EBITDA of $19.7 million. Innovate delivered a strong start to the year with solid execution across the portfolio and improving visibility into 2026. Infrastructure exited the quarter with strong momentum and a healthy backlog, while Life Sciences advanced key regulatory and commercial milestones. At Spectrum, we continue to make progress on strategic initiatives that position the business for improved performance ahead. To start the review of the subs, at Infrastructure, DBM Global achieved the first quarter revenue of $357.9 million and adjusted EBITDA of $23 million.

During the quarter, DBM has seen gross margin compression year-over-year of approximately 140 basis points to 14.2%. While adjusted EBITDA margin of 6.4% was largely consistent with the prior year quarter. Despite the year-over-year decrease in gross margin, we remain impressed by the world-class management team at DBMG, evidenced through maintaining our adjusted backlog of $1.8 billion from the end of 2025, while increasing revenue as compared to the prior year quarter. DBMG started the year delivering a very strong first quarter, reflecting consistent execution and continued strength. Sales activity remained healthy with disciplined pursuit selection and strong conversion rates translating into meaningful backlog generation. DBM exited the quarter with clear momentum, underpinned by a robust improving pipeline and early success in building backlog for 2027.

This progress reinforces our confidence in the durability of the revenue base and highlights the potential for incremental upside as project timing scope continued to firm up. Importantly, as visibility extends further out, the focus of organization is evolving from near-term execution toward disciplined capacity-aligned growth, ensuring we deploy resources thoughtfully while maintaining margins, operational flexibility, and long-term value creation. Technology, healthcare, and opportunities in New York City are driving our backlog to near record levels, and we have seen great results and positive outcomes as we ramp up these projects. We see a lot of capital is moving into physical infrastructure for computing in the U.S. We are specifically seeing opportunities in technology-related construction markets and are concentrated around AI infrastructure, energy systems, advanced manufacturing, and digital connectivity.

Technology companies are expected to continue spending at historic levels on computing infrastructure, and we continue to see robust sales opportunities in the markets and DBMG's significant opportunities in the technology markets, specifically data centers, chip makers, and other specialty technology projects. Turning to life sciences, MediBeacon continues to make meaningful progress across regulatory, clinical, and commercial fronts. In the U.S., there is growing momentum with focus on specific use cases in cardiology, oncology, and in kidney transplant donor assessment. From a regulatory standpoint, we've successfully completed a week-long notified body quality systems audit with no observations consistent with the Medical Device Single Audit Program. MediBeacon now has access to a streamlined approach for existing and eventual approvals in the U.S., Europe, Japan, Australia, Canada, and Brazil. Under the European Medical Device Regulation, MediBeacon received the CE mark for the TGFR Monitor and TGFR reusable sensor.

Looking ahead, MediBeacon is in collaboration with its partner and targeting approval in additional Asia-Pacific markets this year. Clinically, progress continues across multiple programs. In the surgical visualization clinical study, several patients have been enrolled. There is ongoing optimization of agent dose and administration timing ahead of additional patient enrollment. In the ocular angiography clinical study, MediBeacon received FDA Investigational Device Exemption, IDE approval, along with hospital board approval. Patient recruitment is now underway. MediBeacon also received IDE approval for the TGFR wireless sensor. The wearable prototype is ready to be used in the clinical study with planned enrollment this year. Finally, IDE approval has also been secured for a study focused on evaluation of renal functional reserve. Renal functional reserve has potential clinical value in cardiac risk assessment and kidney donor evaluation.

R2 continued to demonstrate strong global demand and commercial execution in the first quarter of 2026. For Q1 2026, R2 reported worldwide revenue of $1.6 million, while total demand reached $2.2 million. Combined with additional orders received early in Q2, R2 currently maintains a backlog of approximately 160 systems globally, representing nearly $2 million in revenue and reinforcing continued momentum into the second quarter. International demand remained a key driver of growth during the quarter, with gross system sales outside North America increasing 58.6% compared to Q1 2025. R2 continued expanding its global footprint through appointment of a new distributor in South Korea, representing an estimated $2 million opportunity. With sustained demand, increasing backlog, and continued global expansion, R2 begins the second quarter with strong underlying momentum.

While R2 continues to execute its strategy, the business is looking to raise external capital to continue its progress through the year. Moving to Spectrum, first quarter revenues was $5.3 million, and adjusted EBITDA was $700,000. During the quarter, Spectrum continued to experience softness in advertising demand and network cancellations. Despite these near-term headwinds, we are encouraged by the progress on several strategic fronts. The recent NAB conference in Las Vegas generated a meaningful number of strategic and commercial opportunities. We are actively following up on these discussions in the coming months. In addition, favorable FCC rulings over the past year related to low-power television and Class A stations has created opportunities to expand and optimize our U.S. Spectrum footprint as marginal costs over the next 6-12 months.

During the LPTV license window that opened in March 19th, we filed applications for more than 60 new licenses to expand our national footprint and increase population coverage. These construction permits are expected to be granted over the coming months, with up to three years to complete the station build-outs. In addition, that same filing window enabled us to upgrade stations in larger markets by reallocating more than 25 Class A licenses from smaller markets, providing greater Spectrum protection and improving strategic positioning for any future Spectrum auctions. Our collaborative project with a mobile wireless carrier continues to advance, with successful trials completed and discussions are underway regarding new market launches in the second half of 2026.

Finally, the petition we filed with the FCC in March proposing 5G Broadcast conversions to low-power television continues to gain support across the industry, although no formal action has been taken to date by the FCC. Overall, while near-term performance remains challenged, we believe the combination of stabilizing fundamentals, regulatory tailwinds, and disciplined strategic investment positions Spectrum for improved performance as conditions normalize. To conclude, we continue to work with our lenders on strategic alternatives as we focus on fixing our capital structure, and we'll provide additional information as we will work to execute our strategy. With that, I'll turn it over to Mike for a review of our financials and capital structure.

Thanks, Paul. Consolidated total revenue for the first quarter of 2026 was $364.8 million, an increase of 33% compared to $274.2 million in the prior year period. The increase is primarily driven by our infrastructure segment, which was partially offset by decreases at the life sciences and Spectrum segments. Net loss attributable to common stockholders and participating preferred stockholders for the first quarter of 2026 decreased to $17.2 million or $1.29 per fully diluted share, compared to $24.8 million or $1.89 per fully diluted share in the prior year period. Total adjusted EBITDA was $19.7 million in the first quarter of 2026, an increase from $7.2 million in the prior year period.

The increase was primarily driven by our life sciences and infrastructure segments, which was partially offset by our spectrum segment. At infrastructure, revenue increased 35.1% to $357.9 million from $264.9 million in the prior year quarter. This increase was primarily driven by the timing and size of projects at DBMG's commercial structural steel fabrication and erection business, which had increased activity subsequent to the comparable period on certain large construction projects. This was partially offset by a decrease at the industrial maintenance and repair business due to the timing and size of projects, which had increased activity in the comparable period on certain large construction projects that have since been completed. Infrastructure adjusted EBITDA for the first quarter of 2026 increased to $23 million from $16.7 million in the prior year period.

The increase was primarily driven by an increase in gross profit at DBMG's commercial structural steel fabrication and erection business, which had increased activity subsequent to the comparable period on certain large construction projects. The increase was partially offset by a decrease in revenue and gross profit at our industrial maintenance and repair business due to timing of certain large construction projects in the comparable period that have since been completed, and an increase in recurring SG&A expenses, primarily driven by an increase in compensation-related expenses due to timing. As of March 31, 2026, reported backlog was $1.6 billion and adjusted backlog, which takes into consideration awarded but not yet signed contracts, was $1.8 billion, compared to reported backlog of $1.7 billion and adjusted backlog of $1.8 billion at the end of 2025.

DBMG ended the year with $76.6 million in principal amount of debt, which is a decrease of $11.1 million from the year-end of 2025, primarily driven by a decrease in their credit line. At Life Sciences, revenue decreased 48.4% to $1.6 million from $3.1 million in the prior year quarter. The decrease in revenue was attributable to R2, primarily driven by decreases in Glacial FX and Glacial Rx unit sales in North America, which were partially offset by an increase in Glacial Spa unit sales outside of North America.

Life Sciences adjusted EBITDA losses decreased for the quarter, primarily driven by fewer equity method losses recognized from MediBeacon and a decrease in recurring SG&A due to a reduction in compensation-related expenses at R2 and Pansend, which was partially offset by a decrease in gross profit at R2 due to the decrease in revenue. At Spectrum, year-over-year revenue for the first quarter decreased $900,000 to $5.3 million and adjusted EBITDA decreased $700,000 to $0.7 million. The decreases were primarily driven by the termination of a few networks and individual markets subsequent to the comparable period. Non-operating corporate adjusted EBITDA losses were $2 million in the first quarter of 2026, slightly down from $2.2 million in the first quarter of 2025.

As of March 31, 2026, the company had $134.6 million of cash and cash equivalents, excluding restricted cash, compared to $112.1 million as of December 31, 2025. On a standalone basis, as of March 31, 2026, our non-operating corporate segment had cash and cash equivalents of $2.5 million compared to cash and cash equivalents of $4.2 million at the end of 2025. As of March 31, 2026, Innovate had total principal outstanding indebtedness of $699 million, up $11.8 million from $687.2 million at the end of 2025. The increase was primarily driven by the PIK interests at our non-operating and life sciences segments, which was partially offset by the decrease in infrastructure's outstanding debt.

With that, Operator, we'd now like to open up the call for questions.

Thank you. At this time, we'll be conducting a question-and-answer session. If you'd like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you'd like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment, please, while we poll for questions. As a reminder, if you'd like to ask a question, please press star one on your telephone keypad. One moment, please, while we poll for question. We have reached the end of the question-and-answer session. I would now like to turn the call back over to Paul Voigt for closing comments.

Yes, thank you. I wanna thank everybody for their time and patience and support. Hopefully, we'll come back to you very soon with some positive news. We look forward to keeping in touch. Thank you. Bye-bye.

This concludes today's conference. You may disconnect your lines at this time, and thank you for your participation.

Good afternoon, and welcome to INNOVATE Corp.'s fourth quarter 2025 earnings conference call. All participants will be in a listen-only mode. After 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 Neel Sikka with Investor Relations. Please go ahead.

Good afternoon. Thank you for being with us to review INNOVATE's fourth quarter and full year 2025 earnings results. We are joined today by Paul Voigt, 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'll 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 dated 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 fourth quarter and full year 2025 financial results and will provide you with an update on our three operating segments. For the fourth quarter, INNOVATE delivered consolidated revenues of $382.7 million and adjusted EBITDA of $24.5 million. For the full year 2025, consolidated revenues were $1.2 billion and adjusted EBITDA of $67.2 million. INNOVATE closed the year with continued execution across our portfolio. While market conditions remained mixed in some areas, we made tangible progress in strengthening our backlog, advancing strategic initiatives, and maintaining financial discipline. I'm proud of each of our teams and the progress they made in 2025. With that, let's turn to our review of our segments.

To start the review of the subs at infrastructure, DBM Global achieved fourth quarter revenues of $373.9 million and adjusted EBITDA of $28 million. For the full year of 2025, DBM generated revenue of $1.2 billion and adjusted EBITDA of $87.5 million. During the quarter, DBM has seen gross margin compression year-over-year of approximately 350 basis points to 14.7% and adjusted EBITDA margin compression of approximately 20 basis points to 7.5% year-over-year. Despite the year-over-year decrease in margins, we remain impressed by the performance of our world-class management team at DBMG, evidenced in growth by our adjusted backlog, which has increased by approximately $700 million to just over $1.8 billion since the end of 2024.

Operationally, DBM exited the year with strong momentum. Activity in New York City's market continues to ramp up, with several commercial projects slated to start in 2026. Our backlog reflects improving demand across markets with a number of growing awarded projects. Importantly, the composition of the backlog increasingly reflects work scheduled for 2026 conversion, creating a back half-weighted revenue profile for this coming year. Rustin and team at DBM believe the strength of the current backlog positions DBM well for continued progress in the coming year. Turning to life sciences, MediBeacon achieved three important milestones that advances its position since the last earnings call. In December 2025, the U.S. FDA approved MediBeacon's next generation TGFR system, including the latest TGFR reusable sensor, which marks a step forward in point of care kidney function assessment.

To provide highlights, this enables direct measurements of the glomerular filtration rate without the need of blood draws or urine collection. The newly approved sensor improves patient comfort and provides economic value versus the prior design, which supports broader clinical adoption. Following this approval, MediBeacon's technology also received meaningful third-party validation from the scientific community. Last month, MediBeacon announced that peer-reviewed transdermal GFR measurement article published in Journal of the American Society of Nephrology was selected as one of only five 2025 Editor's Choice articles, an honor reserved for work with the highest potential to influence future research, clinical practice, and public policy. The article was previously featured on the cover of JASN in August 2025, highlighting the growing recognition of transdermal GFR as a potential new standard of care.

These two announcements, combined with FDA approval, positions MediBeacon well in 2026 and beyond. Early commercialization activities in China have begun following Q4 2025 Chinese regulatory approval. These activities include invited presentations on the efficiency and clinical utility of the TGFR system at the Chinese Society of Nephrology meeting at the end of the year, and at the upcoming Society of Critical Care Medicine meeting in Chicago. Separately, MediBeacon has officially launched its Center of Excellence sales initiative in the U.S., marking an important step in its commercial expansion. We've already secured our first TGFR system order from a top-tier academic medical center, and as inventory continues to build, we expect to drive additional placements across similar leading institutions.

These centers will play a critical role in demonstrating the value of our technology in real-world settings, particularly in high impact use cases such as kidney transplantation, as well as optimizing drug dosing in oncology and cardiology through more precise real-time assessment of kidney function. R2 reported revenues of $3.1 million in the fourth quarter of 2025, compared to $4.1 million in the fourth quarter of 2024, primarily due to inventory constraints. However, for the full year 2025, R2 delivered record revenue of $12.5 million, representing an approximate 28% increase year-over-year.

This momentum for the full year 2025 was fueled by increased demand outside of North America, which surged 123% in top-line revenue as compared to 2024, with an associated 187% increase in gross system unit sales compared to prior year. R2 now carries a backlog of approximately 80 units globally. With this backlog growing consumable revenues associated with the expanding installed base and continued market expansion, R2 enters 2026 with a strong momentum and a positive outlook. In international markets, R2 made meaningful progress during the fourth quarter. The company restructured its distribution agreement with its Chinese partner, securing a minimum purchase commitment of 600 systems over a three-year period. When combined with associated consumable sales, the total estimated contract value is approximately $10 million over the three-year term.

In addition, R2 regained distribution rights to several key Asia Pacific markets, positioning the company to accelerate regional expansion in 2026. R2 also continued expanding its global footprint by appointing a new distributor in Peru and securing regulatory approvals for the Glacial Rx device in Malaysia and Glacial fx device in Panama and Peru. We are pleased with R2's performance closing out 2025. Looking ahead, while R2 continues to execute its strategy, the business is looking to raise external capital to continue its progress in 2026. Moving to Spectrum, fourth quarter revenue was $5.7 million and adjusted EBITDA was $1 million. While Spectrum remains challenged by a soft advertising environment that extended through the fourth quarter, momentum is starting to build. We are seeing demand across our networks pick up as we head into 2026.

New network launches continue, including a number of streaming networks that will be launching over the air. We expect to have additional details in the coming weeks. Some of the new launches will include RAV en Español, a new channel targeting Latino audience, and Heartland Network, a country music channel. Our joint venture with a mobile wireless carrier continues with successful trials across the country. We are working closely with the provider on optimizing the software and service in the delivery of data to smartphones. Industry stakeholders have consistently backed our petition to the FCC seeking voluntary conversion of LPTV stations to 5G Broadcast. We are working with the FCC and legislators to move the process along. Lastly, at Spectrum, favorable FCC ruling over the past year for LPTV and Class A stations have enabled valuable UHF spectrum upgrades and meaningful entry into new markets.

Combined with license filing window that opened up on March nineteenth, these developments create a significant opportunity to expand our U.S. Spectrum footprint at marginal cost over the next six to 12 months. Following our successful filing in March, we have now the opportunity to build out our stations across more than 40 new markets. To conclude, we continue to pursue asset sales to address our current capital structure, and we are working to protect shareholder value. We are continuing to pursue these initiatives and are working with our lenders to effectuate a solution to fix our capital structure. We have either met, received waivers, or extended the stated milestones across our businesses. With that, I'll turn it over to Mike for a review of our financial and capital structure.

Thanks, Paul. Consolidated total revenue for the fourth quarter of 2025 was $382.7 million. An increase of 61.7% compared to $236.6 million in the prior year period. The increase was primarily driven by our infrastructure segment, which was partially offset by decreases in our spectrum and life sciences segments. Net loss attributable to common stockholders and participating preferred stockholders for the fourth quarter of 2025 decreased to $7.8 million, or $0.58 per fully diluted share, compared to $16.9 million or $1.29 per fully diluted share in the prior year period. Total adjusted EBITDA was $24.5 million in the fourth quarter of 2025, an increase from $15 million in the prior year period.

The increase was primarily driven by our infrastructure segment, which was partially offset by our spectrum segment. In infrastructure, revenue increased 65.7% to $373.9 million from $225.7 million in the prior year quarter. This increase was primarily driven by the timing and size of projects at DBMG's Commercial Structural Steel Fabrication and Erection business, Banker Steel, and the Construction Modeling and Detail business, which had increased activity subsequent to the comparable period on certain large construction projects. The increases were partially offset by the timing and size of projects at the Industrial Maintenance and Repair business, which had increased activity in the prior year on certain large commercial construction projects that were completed toward the end of 2024.

Infrastructure adjusted EBITDA for the fourth quarter of 2025 increased to $28 million from $17.4 million in the prior year period. The increase was primarily driven by an increase in revenue and gross profit at DBMG Commercial Structural Steel Fabrication and Erection business and Banker Steel, which had increased activity subsequent to the comparable period on certain large construction projects. These increases were partially offset by the decrease in revenue and gross profit at the Industrial Maintenance and Repair business, which had increased activity in the prior year on certain large construction projects that were completed towards the end of 2024, and an increase in recurring SG&A expenses, primarily driven by an increase in compensation-related expenses.

As of December 31, 2025, reported backlog was $1.7 billion and adjusted backlog, which takes into consideration awarded but not yet signed contracts, was $1.8 billion, compared to reported backlog of $1 billion and adjusted backlog of $1.1 billion at the end of 2024. DBMG ended the year with $87.7 million in principal amount of debt, which is a decrease of $57 million from the end of 2024, primarily driven by its refinancing and a decrease in the credit line. At Life Sciences, revenue decreased 24.4% to $3.1 million from $4.1 million in the prior year quarter. The decrease in revenue was attributable to R2, primarily driven by a decrease in Glacial fx and Glacial Rx unit sales in North America.

Life Sciences adjusted EBITDA losses decreased for the quarter, which was primarily driven by a reduction in compensation-related expenses at Pansend. At Spectrum, year-over-year revenue for the fourth quarter decreased $1.1 million-$5.7 million and adjusted EBITDA decreased $1.3 million-$1 million. The decreases were primarily driven by the termination of certain customers. Non-operating corporate adjusted EBITDA losses were $2.2 million for the fourth quarter of 2025, consistent with the fourth quarter of 2024. At the end of 2025, the company had $112.1 million of cash and cash equivalents, excluding restricted cash, compared to $48.8 million as of December 31, 2024.

On a standalone basis, as of December 31, 2025, our non-operating corporate segment had cash and cash equivalents of $4.2 million compared to cash and cash equivalents of $13.8 million at the end of 2024. As of December 31, 2025, INNOVATE had principal outstanding indebtedness of $687.2 million, up $18.9 million from $668.3 million at the end of 2024, driven by the indebtedness refinancing transactions that are non-operating and life sciences segments, which was partially offset by a decrease in infrastructure's outstanding debt. With that, operator, we'd now like to open up the call for questions.

Thank you. We will now be conducting a question and answer session. If you would like to ask a question please press star and the number one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press start and the number two if you would like to remove your question from the queue. For participant using speaker equipment it may be necessary to pick up your headset before pressing the star key. One moment while we pull for questions. There are no questions at this time. This now concludes our question and answer session. I would like to turn the floor back over to Paul for closing comments.

Thank you. I just want to thank everybody for their time and support, and we look forward to having some positive news in the very near future. Thank you.

Ladies and gentlemen, thank you for your participation. This concludes today's conference. Please disconnect your lines and have a wonderful day.

Good afternoon, and welcome to the INNOVATE Corp Third Quarter 2025 Earnings Conference Call. Please note this event is being recorded. I would now like to turn the conference call over to Neel 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 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 this 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 is my pleasure to turn things over to Paul Voigt.

Good afternoon. We are pleased to report our third quarter 2025 financial results and we'll provide you with an update on our 3 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 & 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 2 newly awarded projects since the end of the third quarter. We remain highly impressed with DBM's global revenue performance through the first 9 months of 2025. Despite a challenging macro environment for project sales in 2024, along with project timing shifts, DBM has delivered strong 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. MediBeacon continues to hit key milestones as we previously expected. On October 21, 2025, MediBeacon received full regulatory approval from China's National Medical Products Administration for its Lumitrace injection, a non-radioactive, non-iodenated fluorescent agent. This approval completes the regulatory package required for the commercial launch of MediBeacon Transdermal GFR system in China, which combines the Lumitrace injection with the TGFR monitor and TGFR sensor. This approval unlocks access to a critical health care 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. MediBeacon's commercial and clinical development partnership with Huadong 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, MediBeacon's transdermal GFR system was highlighted in the August cover of the Journal of the American Society of Nephrology. JASN 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 a 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, which surged 206% in the top line revenue for the 9 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 installed 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 2 providers love Glacial Skin for their device unique ability to deliver control 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 9 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 1 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 in 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 3 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. Our petition to the FCC seeking voluntary conversion of LPTV stations to 5G broadcast continues to receive strong support from industry stakeholders during the common 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.

Thanks, Paul. Consolidated total revenue for the third quarter of 2025 was $347.1 million, an increase of 43.3% compared to $242.2 million in the prior year period. The increase was primarily driven by our Infrastructure segment, which was partially offset by a decrease in our Spectrum segment. Net loss attributable to common stockholders and participating preferred stockholders for the third quarter of 2025 decreased to $9.4 million or $0.71 per fully diluted share compared to $15.3 million or $1.18 per fully diluted share in the prior year period. Total adjusted EBITDA was $19.8 million in the third quarter of 2025, an increase from $16.8 million in the prior year period. The increase was primarily driven by our Infrastructure, nonoperating corporate and Life Sciences segments, which was partially offset by our Spectrum segment. At Infrastructure, revenue increased 45.4% to $338.4 million from $232.8 million in the prior year quarter. This increase was primarily driven by the timing and size of projects at DBMG's commercial structural steel fabrication and erection business and a slight increase at Banker Steel, which had increased activity subsequent to the comparable period on certain large commercial construction projects as several projects progressed into more advanced phases of fabrication and erection during the current year period. These increases were partially offset by the industrial maintenance and repair business due to increased activity in the comparable period on certain large commercial construction and industrial maintenance projects that have since been completed. Infrastructure adjusted EBITDA for the third quarter of 2025 increased to $23.5 million from $20.9 million in the prior year period. The increase was primarily driven by the increase in revenue and gross profit at DBMG's commercial structural steel fabrication and erection business, which had increased activity subsequent to the comparable period on certain large commercial construction projects and an improvement in gross profit at Banker Steel and a decrease in recurring SG&A expenses, primarily due to a decrease in compensation-related expenses and consulting fees. These increases were partially offset by the decrease in revenue and gross profit at the industrial maintenance and repair business due to increased activity in the comparable period on certain large commercial construction and industrial maintenance projects that have since been completed. As of September 30, 2025, reported backlog was $1.5 billion and adjusted backlog, which takes into consideration awarded but not yet signed contracts, was $1.6 billion compared to reported backlog of $1 billion and adjusted backlog of $1.1 billion at the end of 2024. DBMG ended the quarter with $104.1 million in principal amount of debt, which is a decrease of $40.6 million from the end of 2024, primarily driven by its refinancing and a decrease in their credit line. As a reminder, the credit line balance tends to fluctuate based on the timing of DBMG collections. At the end of the third quarter, the balance dipped due to collection timing. However, we anticipate it to increase by the end of the year to support net working capital needs as the backlog expands. At Life Sciences, revenue increased 3.3% to $3.1 million from $3 million in the prior year quarter. The increase in revenue was attributable to R2, primarily driven by increases in Glacial Spa unit sales and Glacial FX unit sales outside of North America as well as an increase in consumable sales in North America. The increase was mostly offset by a decrease in Glacial FX unit sales in North America and a decrease in consumable sales outside of North America. Life Sciences adjusted EBITDA losses decreased for the quarter, which was primarily driven by a reduction in compensation-related expenses at Pansend. At Spectrum, year-over-year revenue decreased $800,000 to $5.6 million and adjusted EBITDA decreased $700,000 to $1 million. The decreases were primarily driven by the termination of certain customers in the current period and the downturn in the direct response advertising market. Nonoperating corporate adjusted EBITDA losses were $2.1 million for the third quarter of 2025, a $700,000 improvement from the third quarter of 2024. The decrease in losses was primarily driven by a decrease in nonrefinancing-related legal fees due to legal matters settled subsequent to the comparable period as well as slight decreases in other professional expenses, insurance expense and employee-related expenses. At the end of the third quarter, the company had $35.5 million of cash and cash equivalents, excluding restricted cash compared to $48.8 million as of December 31, 2024. On a stand-alone basis, as of September 30, 2025, our nonoperating corporate segment had cash and cash equivalents of $1.9 million compared to cash and cash equivalents of $13.8 million at the end of 2024. As of September 30, 2025, INNOVATE had total principal outstanding indebtedness of $700.4 million, up $32.1 million from $668.3 million at the end of 2024, driven by the indebtedness refinancing transactions at our nonoperating and Life Sciences segments, which was partially offset by the decrease in Infrastructure's outstanding debt. With that, operator, we'd now like to open up the call for questions.

There are currently no questions. I would like to turn the floor back over to Mike Sena for closing comments.

Yes, sorry. We appreciate everyone's time this afternoon and look forward to providing you updates on our initiatives in the future. Thank you.