It’s a unit of a publicly traded diversified holding company known as Innovate Inc., and with Thursday’s release of that entity’s first quarter earnings came an up-close look at the financial health of low-power TV-focused licensee HC2 Broadcasting.
Just how is HC2, a “Spectrum” segment, performing for Innovate’s investors?
With respect to key accomplishments, Innovate is touting HC2’s collaborative project with an undisclosed mobile wireless carrier, which continues with what the company calls successful trials. It is also very much in support of a petition submitted to the FCC proposing 5G Broadcast adoption on a voluntary basis for low-power TV stations, which Innovate claims is continuing to gain support — even as the NAB and key broadcast companies such as Sinclair Inc. focus on ATSC 3.0 and are not backing 5G Broadcast.
That said, Innovate is telling the investment community in its Q1 earnings presentation that “recent FCC tailwinds” have enabled HC2 to actively grow and optimize its footprint. This includes applications for more than 60 new LPTV licenses and “strategic repositioning” of more than 25 Class A stations, thanks to a new ability to relocate facilities. In the Chicago DMA, this sees a far-suburban LPTV facility get the green light to relocate to the top of the Trump Tower off the Magnificent Mile.
With a near-term focus on making further progress with commercial opportunities and “leveraging regulatory headwinds,” HC2 presented Q1 financial results that reflect a challenging environment for the Spectrum segment.
Revenue in the quarter fell to $5.3 million, from $6.2 million, as the net loss widened to $6.5 million, from $5.4 million. Adjusted EBITDA was cut in half, finishing Q1 2026 at $700,000 compared to $1.4 million a year earlier.
At present, HC2 has full-power stations in Puerto Rico, San Francisco and in Tyler-Longview, Tex.; 53 Class A stations; and 202 low-power TV properties.
Turning around the financials for HC2 is integral to Innovate, which had $545 million in net debt at the end of Q1 compared to $549.6 million at the close of 2025. On a positive note, the entire company’s net loss in Q1 shrunk to $17.2 million, from $24.8 million.
Trading as “VATE,” the NYSE-traded shares of Innovate completed the May 14 trading session at $11.68, up from $4.03 on March 26. A major growth spurt for Innovate shares transpired in April, with valuations holding steady ever since.
