Summary of InVenture (INV) Conference Call - June 12, 2025 Company Overview - InVenture operates as a conglomerate model, launching wholly owned companies in collaboration with multinationals, acting as founders, funders, owners, and operators of these companies [3][4][10] - The company focuses on technology solutions that are either invented or adopted by multinationals, which are outside their core operations [4][9] Core Model and Strategy - InVenture employs a closed loop model with four core aspects: uniqueness of technology, fully developed technology, leveraging multinational experience, and catalyzing early adoption through multinational relationships [4][6][7] - The model aims to reduce risk by ensuring that technology solutions are in pilot form before full commercial launch, thus increasing the likelihood of success [7][12] - The company has launched four companies to date, including PureCycle and Aeroflex in partnership with Procter & Gamble, and Excelsius, which addresses critical cooling technology needs in data centers [10][11][15] Excelsius and Market Opportunity - Excelsius is positioned to capitalize on the growth of data centers and generative AI, addressing a critical infrastructure gap in cooling technology [15][16] - The current cooling methods in data centers are inadequate, with 8% still using air conditioning, while the industry is moving towards two-phase cooling solutions [16][18] - Excelsius offers a cost-effective two-phase cooling solution that reduces energy costs and allows for denser server configurations, providing both critical need and economic incentive for adoption [21][22] Financial Performance and Growth Potential - InVenture aims to demonstrate high earnings per share growth by systematically launching companies that exhibit an S-curve of growth, potentially leading to premium valuations [14] - The company has invested approximately $10 million into PureCycle, which went public at a $1.2 billion valuation and is currently trading at around $2 billion [23] - The company plans to maintain a disciplined capital allocation approach, aiming to launch approximately one company per year while managing operational strain and dilution of focus [34][36] Capital Strategy and Market Position - InVenture has closed approximately $150 million in financing and plans to raise additional capital to support its growth and operational needs [40][41] - The company emphasizes the importance of a strong capital markets team to navigate funding challenges and ensure long-term success [43][45] - The value proposition for investors lies in accessing early-stage venture opportunities with a better risk-adjusted basis, particularly through the growth potential of Excelsius and the systematic launch of new companies [52][54] Conclusion - InVenture's model is designed to create value through strategic partnerships and innovative technology solutions, with Excelsius serving as a key proof point for the company's growth strategy [53][54]

Core Insights - Accelsius has deployed a Thermal Simulation Rack at Global Switch's new London showroom, marking a significant milestone in their European operations [1][4] - Global Switch is committed to sustainability and innovation, focusing on liquid cooling technologies to educate their customers [2][5] - The "Future Now: London Live Liquid Cooling Showcase" event will take place from June 9-13, providing an opportunity for industry leaders to experience Accelsius' cooling technology [3] Company and Technology Highlights - The Accelsius Thermal Simulation Rack is designed to replicate real-world heat loads from AI and HPC deployments, allowing for live testing of cooling solutions [4] - Accelsius' two-phase liquid cooling system utilizes a dielectric refrigerant for superior heat removal, aimed at meeting the demands of AI and high-performance computing while reducing energy consumption [5] - The showroom is expected to attract over 150 customers from around 40 global organizations, indicating a growing interest in liquid cooling as a sustainable alternative to traditional air cooling [5] Industry Context - Global Switch is recognized as a pioneer in adopting advanced data center technologies, showcasing Accelsius' Thermal Simulation Rack as part of their commitment to innovation [2][5] - The collaboration between Accelsius and Global Switch highlights the industry's shift towards energy-efficient cooling solutions in data centers [5]

Company Overview - Innventure, Inc. is a technology commercialization platform that focuses on founding, funding, and operating companies centered around transformative and sustainable technology solutions acquired or licensed from multinational corporations [1] - The company aims to take breakthrough technologies from early evaluation to scaled commercialization, employing a risk mitigation approach to build disruptive companies with a target enterprise value of at least $1 billion [1] Upcoming Investor Conferences - Lucas Harper, Chief Investment Officer, and Roland Austrup, Chief Growth Officer, will present at Sidoti's Virtual Small Cap Conference on June 12, 2025, at approximately 3:15 p.m. ET, with a live webcast available on Innventure's Investor Relations website [2] - Bill Haskell, Chief Executive Officer, will attend Northland's Virtual Growth Conference on June 25, 2025, and will be available for one-on-one and small group investor meetings [2] - Roland Austrup will also attend Roth's 15th Annual London Conference on June 25 and 26, 2025, and will be available for one-on-one and small group investor meetings [2]

Core Insights - AeroFlexx has been awarded U.S. Patents 11,548,709 and 12,071,292 for a flexible plastic package that is suitable for curbside recycling, aligning with industry standards for PE-based films and flexible packaging innovations [1][4] - The AeroFlexx Pak is a recyclable mono-material package that incorporates recycled content, addressing shortcomings of existing market packages [2][3] - The design of the AeroFlexx Pak allows for a reduction of up to 85% of virgin plastic compared to traditional rigid bottles, with up to 70% less plastic at the source and up to 50% recycled content [3] Company Overview - AeroFlexx is a full-service liquid packaging company focused on sustainable solutions, combining attributes of flexible and rigid packaging to enhance consumer experience and brand value [5] - The company is headquartered in West Chester, Ohio, and is part of the Innventure family of companies, providing packaging solutions across Europe, Southeast Asia, and the Americas [6]

Core Insights - AeroFlexx has received Critical Guidance Recognition for recyclability from the Association of Plastic Recyclers (APR) for its proprietary mono-material AeroFlexx Pak, marking a significant achievement in sustainable packaging [1][2] Company Overview - AeroFlexx is a full-service liquid packaging company that combines the benefits of flexible and rigid packaging into a single product, transforming the industry and enhancing consumer experience while promoting sustainability [5] - The company is headquartered in West Chester, Ohio, and is part of the Innventure family of companies, providing packaging solutions across Europe, Southeast Asia, and the Americas [6] Sustainability Impact - The AeroFlexx Pak can eliminate up to 85% of virgin plastic compared to traditional rigid packaging, utilizing up to 70% less plastic at the source and incorporating up to 50% recycled content [3] - With a market adoption of 2.5 billion units, the AeroFlexx Pak could save 599.4 million kilowatt-hours of energy, 65.3 million gallons of gas, and reduce CO2 emissions by 256.8 million pounds, while preventing 980.8 million pounds of waste from entering landfills [4] - The production process of AeroFlexx Pak results in up to 83% less waste to landfills, 73% less water use, and a 69% reduction in greenhouse gas emissions compared to traditional rigid bottle production [4]

Group 1: Project Overview - Accelsius has been selected as a key contributor to the U.S. Department of Energy's ARPA-E COOLERCHIPS project, focusing on developing a next-generation hybrid cooling architecture for data centers [1][3] - The project aims to reduce total cooling energy consumption to less than 5% of a data center's IT load while maintaining reliability and enabling high-density computing [3] Group 2: Technology and Contributions - Accelsius will provide its proprietary MR250, a multi-rack, in-row, 250kW two-phase Coolant Distribution Unit (2P CDU), for system-level testing at the UT Arlington campus [2] - The MR250 is expected to be generally available by late 2025, enhancing the project's test infrastructure [2] Group 3: Collaboration and Impact - The collaboration between Accelsius and The University of Texas at Arlington is expected to advance the understanding and benchmarking of two-phase, direct-to-chip cooling technologies [3][4] - Industry leaders express excitement about the potential impact of this collaboration on U.S. leadership in next-generation data center efficiency [4] Group 4: Company Background - Accelsius, founded by Innventure, Inc. (NASDAQ:INV), specializes in advanced cooling solutions that help data center and edge operators achieve business, financial, and sustainability goals [5] - The company's NeuCool platform offers best-in-class thermal efficiencies through a safe, two-phase liquid cooling system scalable from single racks to entire data centers [5]

First Quarter 2025 Earnings May 15, 2025 Disclaimer The material that follows is a presentation ("Presentation") of information about Innventure, Inc. and its subsidiaries (together referred to herein as "Innventure," the "Company," "us," "our," or "we") as of the date of this presentation. The Presentation does not purport to contain all information that may be required or desired by a party interested in investigating the Company, its business or prospects, and it shall not be deemed to be a complete desc ...

Innventure (INV) Q1 2025 Earnings Call May 15, 2025 05:00 PM ET Company Participants Lucas Harper - Chief Investment OfficerBill Haskell - CEO, Director & Board MemberDino Foderaro - Chief Revenue OfficerDave Yablunosky - CFO, Director & Board MemberNehal Chokshi - Managing Director Conference Call Participants Chip Moore - Managing Director & Senior Research Analyst Operator Hello, and welcome to InVenture First Quarter twenty twenty five Earnings Conference Call. At this time, all participants are in a li ...

Financial Data and Key Metrics Changes - The first quarter revenue was $200 million, primarily from management fees related to the InVentus ESG fund, aligning with expectations and previous communications about revenue growth being weighted towards the second half of the year [38] - General and administrative expenses were approximately $20 million, with significant components including non-cash equity-based compensation and professional service fees [39] - A non-cash goodwill adjustment of $233 million was recorded due to a decrease in the company's share price and market capitalization [40] - EBITDA for the quarter was a loss of approximately $248 million, with adjusted EBITDA reflecting a loss of $21.8 million [41] Business Line Data and Key Metrics Changes - Excelsius is positioned at the forefront of the two-phase direct-to-chip liquid cooling market, which is expected to grow significantly due to increasing data center budgets driven by AI and evolving chip technology [10][15] - The current liquid cooling market is estimated at $1.3 billion, growing at an annual rate of approximately 30%, projected to reach $5 billion by 2028 [14][15] Market Data and Key Metrics Changes - Worldwide data center spending was approximately $450 billion in 2024, expected to exceed $1 trillion by 2029, creating a favorable environment for critical infrastructure providers like Excelsius [10] - The overwhelming majority of data centers still use inefficient air-cooled solutions, with single-phase water cooling technologies representing only a small percentage of installations [10] Company Strategy and Development Direction - The company aims to build enterprises that can achieve a minimum of $1 billion in enterprise value, with Excelsius being a key focus due to its market potential [6] - Excelsius is developing relationships with hyperscalers, multinational OEMs, global resellers, and AI as a service providers to drive growth [21][29] - The company is focused on enhancing its manufacturing capacity and partnerships with global contract manufacturers to meet anticipated market demands [32][33] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence that 2025 will represent an inflection point for revenue growth at Excelsius, driven by significant demand from large global players [37] - The company is optimistic about the future, citing a substantial increase in lead generation and engagement with potential customers since February [70][72] Other Important Information - The company has seen a notable increase in its strategic partner network, growing by nearly 200% since the start of 2025, indicating strong market interest [29] - The average proposal size has increased significantly, reflecting a shift towards full-scale production opportunities [30] Q&A Session Summary Question: What drove the white label agreement with the OEM? - The relationship was driven by overall market demand, not solely by hyperscaler engagement [47][49] Question: Will the potential inflection point be served largely through the white label agreement? - The company expects some volume from those agreements but emphasizes a broader pool of engaged customers [54][56] Question: Can you comment on the pros and cons of flow versus pool-based cooling? - Flow-based cooling offers more reliability and excess fluid availability compared to pool boiling, which can lead to operational issues [61][63] Question: Will NVIDIA mitigate hotspots in the next generation architecture? - The response was cautious due to non-disclosure agreements [65] Question: Can you discuss the increase in lead generation and fulfillment capabilities? - There has been a significant spike in activity since late February, with a paradigm shift in conversations towards deployment of two-phase cooling solutions [70][72]

Core Insights - Innventure, Inc. expresses strong confidence in achieving a revenue growth inflection during the second half of 2025, driven by its operating companies, particularly Accelsius and AeroFlexx [2][5]. Company Overview - Innventure is a technology commercialization platform that focuses on founding, funding, and operating companies with transformative and sustainable technology solutions, aiming for at least $1 billion in enterprise value [5]. - The company emphasizes its strategy of mitigating risks while building disruptive companies that can significantly change market dynamics [5]. Financial Performance - For the quarter ended March 31, 2025, Innventure reported revenue of $224,000, consistent with the same period in 2024 [18]. - The company incurred a net loss of $253.674 million for the quarter, compared to a net loss of $7.526 million in the prior year [28][32]. - Significant operating expenses included a goodwill impairment charge of $233.213 million, reflecting a decrease in the company's market capitalization [36]. Cash Flow and Financial Position - As of March 31, 2025, Innventure's total assets amounted to $660.419 million, a decrease from $905.289 million at the end of 2024 [15][16]. - The company reported cash and cash equivalents of $1.375 million, down from $11.119 million at the end of the previous year [15][28]. - Cash flows used in operating activities for the quarter were $14.696 million, compared to $7.397 million in the same period of 2024 [28]. Market Position and Future Outlook - Accelsius is highlighted as a key player in the two-phase, direct-to-chip liquid cooling market, engaging with major industry players and positioned for significant growth [2]. - The company anticipates a seismic shift in liquid cooling adoption, which it believes will create substantial value for shareholders [2].