$VATE

INNOVATE Corp.

CIK:0001006837|SEC Filings

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Income Statement [Abstract]
Revenue	$ 421.6	$ 242.0	$ 786.4	$ 516.2
Cost of revenue	342.1	196.4	653.4	425.1
Gross profit	79.5	45.6	133.0	91.1
Operating expenses:
Selling, general and administrative	41.5	35.1	80.9	72.9
Depreciation and amortization	3.5	4.4	7.7	8.8
Other operating loss (income)	0.0	1.2	(0.1)	1.1
Income (loss) from operations	34.5	4.9	44.5	8.3
Other (expense) income:
Interest expense	(27.6)	(21.4)	(52.1)	(41.6)
Gain (loss) on extinguishment of debt	18.4	(0.3)	18.4	(0.3)
Loss from equity investees	0.0	0.0	0.0	(5.9)
Other income, net	0.2	0.0	0.5	4.0
Income (loss) from operations before income taxes	25.5	(16.8)	11.3	(35.5)
Income tax expense	(13.1)	(4.2)	(16.0)	(11.3)
Net income (loss)	12.4	(21.0)	(4.7)	(46.8)
Net (income) loss attributable to non-controlling interests and redeemable non-controlling interests	(1.7)	1.2	(1.4)	2.5
Net income (loss) attributable to INNOVATE Corp.	10.7	(19.8)	(6.1)	(44.3)
Less: Preferred stock dividends	0.3	2.2	0.7	2.5
Net income (loss) attributable to common stockholders and participating preferred stockholders	$ 10.4	$ (22.0)	$ (6.8)	$ (46.8)
Earnings (loss) per common share
Basic (in usd per share)	$ 0.74	$ (1.67)	$ (0.51)	$ (3.56)
Diluted (in usd per share)	$ 0.71	$ (1.67)	$ (0.51)	$ (3.56)
Weighted-average common shares outstanding
Basic (in shares)	13,374,803	13,146,750	13,360,333	13,130,930
Diluted (in shares)	13,968,004	13,146,750	13,360,333	13,130,930

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Cash flows from operating activities
Net loss	$ (4.7)	$ (46.8)
Adjustments to reconcile net loss to cash provided by operating activities
Share-based compensation expense	1.0	1.5
Depreciation and amortization (including amounts in cost of revenue)	14.4	15.3
Amortization of deferred financing costs and debt discount	15.2	11.9
(Gain) loss on extinguishment of debt	18.4	(0.3)
Loss from equity investees	0.0	5.9
Gain on lease modifications	0.0	(0.1)
Loss (gain) on investments	0.1	(4.9)
Deferred income tax expense	(0.1)	0.1
Other operating activities, net	1.3	1.7
Changes in assets and liabilities:
Accounts receivable	(45.3)	(49.7)
Contract assets	11.5	23.3
Other current assets	(12.3)	1.4
Inventory	1.2	0.1
Other assets	11.4	5.5
Accounts payable	(2.5)	(5.1)
Accrued liabilities	43.7	9.3
Contract liabilities	10.8	63.7
Other current liabilities	2.0	(0.1)
Other liabilities	(8.4)	(7.0)
Cash provided by operating activities	20.9	26.3
Cash flows from investing activities
Purchase of property, plant and equipment	(19.9)	(10.8)
Proceeds from disposal of property, plant and equipment	0.1	1.2
Purchase of investments	(0.5)	(0.3)
Cash paid for asset acquisitions	(0.3)	(0.3)
Cash used in investing activities	(20.6)	(10.2)
Cash flows from financing activities
Proceeds from lines of credit, net of deferred financing costs	0.0	71.2
Payments on lines of credit	(15.0)	(86.8)
Proceeds from other debt obligations, net of deferred financing costs	105.0	20.8
Principal payments for other debt obligations	(109.0)	(36.2)
Deferred financing costs paid to third parties	(2.8)	0.0
Dividend payments	(0.7)	(1.1)
Other financing activities	(0.1)	(0.1)
Cash used in financing activities	(22.6)	(32.2)
Effects of exchange rate changes on cash, cash equivalents and restricted cash	0.0	0.8
Net decrease in cash and cash equivalents, including restricted cash and cash classified within assets held for sale	(22.3)	(15.3)
Decrease in cash and cash equivalents from assets held for sale	1.9	1.4
Net decrease in cash and cash equivalents, including restricted cash	(20.4)	(13.9)
Cash, cash equivalents and restricted cash, beginning of period	108.8	42.3
Cash, cash equivalents and restricted cash, end of period	$ 88.4	$ 28.4

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	Jun. 30, 2026	Dec. 31, 2025
Current assets
Cash and cash equivalents	$ 87.8	$ 108.2
Accounts receivable, net	284.4	239.4
Contract assets	52.6	64.1
Inventory	14.8	16.0
Current assets held for sale	5.5	6.8
Other current assets	34.2	16.9
Total current assets	479.3	451.4
Investments	2.2	1.8
Deferred tax asset	2.0	2.0
Property, plant and equipment, net	136.3	131.6
Goodwill	105.7	105.6
Intangibles, net	44.0	47.3
Assets held for sale	169.5	167.7
Other assets	67.7	42.7
Total assets	1,006.7	950.1
Current liabilities
Accounts payable	137.2	140.5
Accrued liabilities	77.9	64.8
Current portion of debt obligations	553.9	518.6
Contract liabilities	182.7	171.9
Current liabilities held for sale	118.7	126.5
Other current liabilities	13.0	11.8
Total current liabilities	1,083.4	1,034.1
Deferred tax liability	1.9	2.1
Debt obligations	62.1	80.3
Liabilities held for sale	22.1	19.4
Other liabilities	57.2	29.5
Total liabilities	1,226.7	1,165.4
Commitments and contingencies (Note 14)
Temporary equity
Redeemable non-controlling interests	(1.1)	1.6
Total temporary equity	8.6	10.9
Stockholders’ deficit
Common stock, $0.001 par value Shares authorized: 250,000,000; Shares issued: 13,818,904; Shares outstanding: 13,641,866 and 13,655,062, respectively	0.0	0.0
Additional paid-in capital	352.9	350.1
Treasury stock, at cost: 177,038 and 163,842 shares, respectively	(5.6)	(5.6)
Accumulated deficit	(588.6)	(582.5)
Accumulated other comprehensive loss	(1.9)	(2.1)
Total INNOVATE Corp. stockholders’ deficit	(243.2)	(240.1)
Non-controlling interests	14.6	13.9
Total stockholders’ deficit	(228.6)	(226.2)
Total liabilities, temporary equity and stockholders’ deficit	1,006.7	950.1
Series A-3 , A-4 Preferred Stock
Temporary equity
Preferred Stock Series A-3 and Preferred Stock Series A-4, $0.001 par value Shares authorized: 20,000,000; Shares issued and outstanding: 6,125 of Series A-3; 1,937 of Series A-4	$ 9.7	$ 9.3