INNOVATE (VATE) Q4 2025 earnings summary

Executive summary

• Q4 2025 consolidated revenue reached $382.7 million, up 61.7% year-over-year, with full-year revenue at $1.2 billion; adjusted EBITDA for Q4 was $24.5 million and for the year $67.2 million.

• Net loss attributable to shareholders narrowed to $7.8 million ($0.58 per share) in Q4, improved from $16.9 million ($1.29 per share) year-over-year; full-year net loss was $64.0 million.

• Infrastructure segment drove growth, offsetting declines in Spectrum and Life Sciences.

• DBMG's adjusted backlog reached $1.8 billion, up $700 million since end of 2024, supporting strong 2026 visibility.

• MediBeacon received FDA approval for its next-generation TGFR system; R2 achieved 28% full-year revenue growth and secured a 600-system China commitment.

Financial highlights

• Infrastructure revenue rose 65.7% to $373.9 million in Q4; adjusted EBITDA increased to $28 million.

• Life Sciences revenue fell 24.4% to $3.1 million in Q4 due to lower North American unit sales.

• Spectrum revenue decreased to $5.7 million, with adjusted EBITDA down to $1 million, mainly due to customer terminations.

• Cash and cash equivalents at year-end were $112.1 million, up from $48.8 million the prior year.

• Consolidated gross profit for Q4 2025 was $58.9 million, up from $46.4 million in Q4 2024.

Outlook and guidance

• Infrastructure backlog and awarded contracts position the segment for continued growth in 2026, with a back half-weighted revenue profile.

• Spectrum expects benefits from new network launches and favorable FCC rulings to materialize in 2026.

• Life Sciences anticipates further commercial rollout and international demand, especially in China, following regulatory approvals.

• R2 enters 2026 with strong momentum, growing backlog, and plans to raise external capital.

• DBMG aims to convert backlog to revenue and pursue additional opportunities in commercial and industrial sectors.