What are the investment strengths of Innovate Corp (VATE)?

43% revenue growth TTM (vs industry median 0.1%) with positive FCF (61M) demonstrates operational turnaround potential if debt restructured. Asset turnover 1.22x exceeds industry median 0.95x - efficient capital deployment could accelerate deleveraging if growth sustains.

What are the investment risks for Innovate Corp (VATE)?

Negative equity (-233M), tangible book (-527M), and debt/EBITDA of 15x create existential refinancing risk with 572M due short-term. Interest expense (85M) consumes 177% of EBITDA (48M) - no path to profitability without debt relief or dilutive equity raise.

Innovate Corp

VATE

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Innovate Corp AI Insights

Informational only. Not investment advice.

As of 2026-01-23

Snapshot

Negative equity (-233M) with 724M debt and 85M interest expense TTM consuming 5x operating income - capital structure unsustainable.[Total Equity]
Revenue grew 43% YoY TTM yet net loss of -70M persists; interest expense (85M) exceeds EBITDA (48M) by 1.8x.[Net Income TTM]
FCF of 61M TTM despite losses - cash conversion masks structural insolvency with 572M current debt vs 35M cash.[Free Cash Flow TTM]

Watch Triggers

Current Debt: Any refinancing announcement or covenant breach disclosure — 572M current debt vs 35M cash is existential; restructuring terms determine equity survival.
Operating Margin TTM: Sustained improvement above 5% — At 1.5%, margin expansion is only path to covering 85M interest burden organically.
Free Cash Flow TTM: Decline below 50M or turn negative — 61M FCF is sole lifeline; deterioration accelerates liquidity crisis timeline.

Bull Case

43% revenue growth TTM (vs industry median 0.1%) with positive FCF (61M) demonstrates operational turnaround potential if debt restructured.

Total Revenue 1Y GrowthFree Cash Flow TTM

Asset turnover 1.22x exceeds industry median 0.95x - efficient capital deployment could accelerate deleveraging if growth sustains.

Asset Turnover TTMTotal Revenue TTM

Bear Case

Negative equity (-233M), tangible book (-527M), and debt/EBITDA of 15x create existential refinancing risk with 572M due short-term.

Total EquityCurrent DebtTotal Debt

Interest expense (85M) consumes 177% of EBITDA (48M) - no path to profitability without debt relief or dilutive equity raise.

Interest Expense TTMEBITDA TTM

Bull vs Bear Balance

AI-generated sentiment analysis based on fundamental metrics and market conditions.

25%

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Forward Thesis

Debt refinancing or restructuring required within 12 months as current debt (572M) dwarfs cash (35M).

3-12mhigh

Current debt 16x cash position
Interest expense exceeds EBITDA
Negative working capital of -553M

Current Debt 572M vs Cash 35MInterest Expense 85M vs EBITDA 48MWorking Capital -553M TTM

Revenue growth (43% YoY) insufficient to offset capital structure stress without margin expansion.

1-3ymed

Operating margin only 1.5%
Gross margin 17% below industry 21%
Net margin -6.3%

Operating Margin 1.5% TTMGross Margin 17% vs median 21%Revenue 1.1B growing 43% YoY

Valuation Context

Caveats

Public Strategies Rankings

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VATE Fundamentals

Construction → Construction of Buildings

Metric	Value	YoY Growth	Industry Percentile
Market Cap	$70.44M		—
Enterprise Value	$758.64M		—
P/E Ratio	0.00		—
Total Revenue - TTM	$1.1B	-10.7%	—
Earnings Per Share (diluted) - TTM	$-5.72		—
Operating Margin - TTM	1.54%	-2.6%	—
Net Margin - TTM	-6.35%	-4.1%	—
Free Cash Flow - TTM	$61.1M	+384.9%	—
Return on Common Equity - TTM	0.00		—
Beta 5Y (Monthly)	unknown		—

VATE Dividend History

No dividends

VATE Stock Splits

1 stock split

08/09/2410:1 split

VATE SEC Filings

Filing Date	Report Date	Report Type	Filing Link
11/12/25	09/30/25	10-Q	0001006837-25-000127
08/05/25	06/30/25	10-Q	0001006837-25-000104
05/06/25	03/31/25	10-Q	0001006837-25-000045
03/31/25	12/31/24	10-K	0001006837-25-000021
11/06/24	09/30/24	10-Q	0001006837-24-000155
08/07/24	06/30/24	10-Q	0001006837-24-000122
05/07/24	03/31/24	10-Q	0001006837-24-000079
03/06/24	12/31/23	10-K	0001006837-24-000023
11/09/23	09/30/23	10-Q	0001006837-23-000128
08/09/23	06/30/23	10-Q	0001006837-23-000098
05/10/23	03/31/23	10-Q	0001006837-23-000063
03/14/23	12/31/22	10-K	0001006837-23-000018
11/02/22	09/30/22	10-Q	0001006837-22-000117
08/03/22	06/30/22	10-Q	0001006837-22-000097
05/04/22	03/31/22	10-Q	0001006837-22-000050
03/09/22	12/31/21	10-K	0001006837-22-000015
11/04/21	09/30/21	10-Q	0001006837-21-000144
08/06/21	06/30/21	10-Q	0001006837-21-000112
05/07/21	03/31/21	10-Q	0001006837-21-000058
03/10/21	12/31/20	10-K	0001006837-21-000027
11/09/20	09/30/20	10-Q	0001006837-20-000197
08/10/20	06/30/20	10-Q	0001006837-20-000159
05/11/20	03/31/20	10-Q	0001006837-20-000074
03/16/20	12/31/19	10-K	0001006837-20-000044
11/05/19	09/30/19	10-Q	0001006837-19-000095
08/08/19	06/30/19	10-Q	0001006837-19-000081
05/07/19	03/31/19	10-Q	0001006837-19-000056
03/12/19	12/31/18	10-K	0001006837-19-000018
11/06/18	09/30/18	10-Q	0001006837-18-000131
08/08/18	06/30/18	10-Q	0001006837-18-000095
05/10/18	03/31/18	10-Q	0001006837-18-000067
03/14/18	12/31/17	10-K	0001006837-18-000023
11/08/17	09/30/17	10-Q	0001006837-17-000180
08/09/17	06/30/17	10-Q	0001006837-17-000155
05/10/17	03/31/17	10-Q	0001006837-17-000101
03/09/17	12/31/16	10-K	0001006837-17-000032
11/09/16	09/30/16	10-Q	0001006837-16-000107
08/09/16	06/30/16	10-Q	0001006837-16-000069
05/09/16	03/31/16	10-Q	0001006837-16-000039
03/15/16	12/31/15	10-K	0001006837-16-000033
11/09/15	09/30/15	10-Q	0001006837-15-000007
08/10/15	06/30/15	10-Q	0001140361-15-030788
05/11/15	03/31/15	10-Q	0001567619-15-000678
03/16/15	12/31/14	10-K	0001193125-15-094027
11/10/14	09/30/14	10-Q	0001193125-14-404636
03/15/16	09/30/14	10-Q/A	0001006837-16-000032
08/11/14	06/30/14	10-Q	0001193125-14-305052
03/15/16	06/30/14	10-Q/A	0001006837-16-000027
03/15/16	03/31/14	10-Q/A	0001006837-16-000030
05/09/14	03/31/14	10-Q	0001193125-14-192699
03/15/16	12/31/13	10-K/A	0001006837-16-000029
03/31/14	12/31/13	10-K	0001193125-14-124108
11/08/13	09/30/13	10-Q	0001193125-13-435456
03/15/16	09/30/13	10-Q/A	0001006837-16-000028
08/08/13	06/30/13	10-Q	0001193125-13-327106
03/15/16	06/30/13	10-Q/A	0001006837-16-000027
05/10/13	03/31/13	10-Q	0001193125-13-214568
03/14/13	12/31/12	10-K	0001193125-13-107657
03/15/16	12/31/12	10-K/A	0001006837-16-000029
11/09/12	09/30/12	10-Q	0001193125-12-461708
08/09/12	06/30/12	10-Q	0001193125-12-347870
05/10/12	03/31/12	10-Q	0001193125-12-225849
03/15/12	12/31/11	10-K	0001193125-12-117626
11/14/11	09/30/11	10-Q	0001193125-11-311174
08/15/11	06/30/11	10-Q	0001193125-11-223316
05/20/11	03/31/11	10-Q	0001144204-11-031433
03/25/11	12/31/10	10-K	0001193125-11-077873
11/15/10	09/30/10	10-Q	0001193125-10-260891
08/16/10	06/30/10	10-Q	0001193125-10-190169
05/17/10	03/31/10	10-Q	0001193125-10-122159
04/05/10	12/31/09	10-K	0001193125-10-076784
11/16/09	09/30/09	10-Q	0001193125-09-235823
08/13/09	06/30/09	10-Q	0001193125-09-174458
05/20/09	03/31/09	10-Q	0001193125-09-115639
04/15/09	12/31/08	10-K	0001193125-09-079701
11/10/08	09/30/08	10-Q	0001193125-08-231813
08/11/08	06/30/08	10-Q	0001193125-08-173468
05/12/08	03/31/08	10-Q	0001193125-08-111526
03/17/08	12/31/07	10-K	0001193125-08-059024
11/09/07	09/30/07	10-Q	0001193125-07-242667
08/14/07	06/30/07	10-Q	0001193125-07-182638
05/15/07	03/31/07	10-Q	0001193125-07-115660
03/30/07	12/31/06	10-K	0001193125-07-070441
11/09/06	09/30/06	10-Q	0001193125-06-229988
08/09/06	06/30/06	10-Q	0001193125-06-167747
05/10/06	03/31/06	10-Q	0001193125-06-107449
03/16/06	12/31/05	10-K	0001193125-06-056735
11/09/05	09/30/05	10-Q	0001193125-05-221410
08/09/05	06/30/05	10-Q	0001193125-05-162612
05/10/05	03/31/05	10-Q	0001193125-05-102478
03/16/05	12/31/04	10-K	0001193125-05-052460
11/09/04	09/30/04	10-Q	0001193125-04-191382
08/09/04	06/30/04	10-Q	0001104659-04-023325
05/10/04	03/31/04	10-Q	0001104659-04-013413
03/15/04	12/31/03	10-K	0000912057-04-000315
11/14/03	09/30/03	10-Q	0001104659-03-026700
08/14/03	06/30/03	10-Q	0001047469-03-027612
05/14/03	03/31/03	10-Q	0001104659-03-009843
03/31/03	12/31/02	10-K	0001047469-03-011087
11/14/02	09/30/02	10-Q	0000912057-02-042415
08/14/02	06/30/02	10-Q	0000912057-02-032269
05/14/02	03/31/02	10-Q	0000912057-02-020258
04/16/02	12/31/01	10-K	0000912057-02-015213
11/14/01	09/30/01	10-Q	0001104659-01-503320
08/14/01	06/30/01	10-Q	0001104659-01-501910
05/15/01	03/31/01	10-Q	0000912057-01-515793
04/02/01	12/31/00	10-K405	0000912057-01-506542
11/13/00	09/30/00	10-Q	0000912057-00-049080
08/14/00	06/30/00	10-Q	0000912057-00-037339
05/15/00	03/31/00	10-Q	0000928385-00-001573