INNOVATE Corp.

3. Revenue and Contracts in Process

Revenue from contracts with customers consisted of the following (in millions):

Accounts receivable, net, from contracts with customers consisted of the following (in millions):

As of January 1, 2025, accounts receivable, net, from contracts with customers totaled $188.2 million.

Infrastructure Segment

The following table disaggregates DBMG's revenue by market (in millions):

Contract assets and contract liabilities consisted of the following (in millions):

As of January 1, 2025, contract assets were $106.3 million and contract liabilities were $109.1 million.

The change in contract assets during the three months ended March 31, 2026 and 2025, is a result of the recording of $19.0 million and $74.6 million, respectively, of contract assets driven by new commercial projects, partially offset by $28.6 million and $45.6 million, respectively, of contract assets transferred to receivables from contract assets recognized at the beginning of the year, including from certain large projects completed or nearing completion and the corresponding billing of amounts previously recorded as contract assets.

The change in contract liabilities during the three months ended March 31, 2026 and 2025, is a result of the recording of periodic contract liabilities of $137.3 million and $54.0 million, respectively, driven primarily by large initial billings on new commercial projects, partially offset by revenue recognized that was included in the contract liability balance at the beginning of the year in the amount of $151.9 million and $67.8 million, respectively.

Transaction Price Allocated to Remaining Unsatisfied Performance Obligations

As of March 31, 2026, the transaction price allocated to remaining unsatisfied performance obligations consisted of the following (in millions):

DBMG's remaining unsatisfied performance obligations increase with awards of new contracts and decrease as it performs work and recognizes revenue on existing contracts. DBMG includes a project within its remaining unsatisfied performance obligations at such time the project is awarded and agreement on contract terms has been reached. DBMG's remaining unsatisfied performance obligations include amounts related to contracts for which a fixed price contract value is not assigned when a reasonable estimate of total transaction price can be made. DBMG expects to recognize this revenue approximately within the next 2.5 years.

Remaining unsatisfied performance obligations include unrecognized revenues to be realized from uncompleted construction contracts. Although many of DBMG's contracts are subject to cancellation at the election of its customers, in accordance with industry practice, DBMG does not limit the amount of unrecognized revenue included within its remaining unsatisfied performance obligations due to the inherent substantial economic penalty that would be incurred by its customers upon cancellation.

Life Sciences Segment

The following table disaggregates the Life Sciences segment's revenue by type (in millions):

Spectrum Segment

The following table disaggregates the Spectrum segment's revenue by type (in millions):

Transaction Price Allocated to Remaining Unsatisfied Performance Obligations

As of March 31, 2026, the transaction price allocated to remaining unsatisfied performance obligations consisted of $9.6 million of broadcast station revenues of which $8.1 million is expected to be recognized withinone year and $1.5 million is expected to be recognized within the next 2 years.