Financial Data and Key Metrics Changes - The company's second quarter revenue was $500,000, with $300,000 from Acelsius and $200,000 from management fees of the Inventis ESG fund [24] - General and administrative expenses were approximately $18.6 million, down from $19.7 million in the prior quarter [26] - EBITDA for the quarter was a loss of approximately $135 million, with adjusted EBITDA showing an improvement to a loss of $16.2 million from a loss of $21.8 million in the first quarter [27] Business Line Data and Key Metrics Changes - Acelsius generated $300,000 in revenue, marking its continued growth in the data center liquid cooling market [24] - The company has engaged with its first hyperscaler for a proof of concept system, with expectations for further engagements [9][10] - The contracted go-to-market partner network has grown to 21, an increase of over 100% since the beginning of 2025 [11] Market Data and Key Metrics Changes - The data center liquid cooling market is experiencing rapid growth, driven by the increasing adoption of AI workloads [25] - A UBS analysis indicated that 100% of surveyed IT organizations plan to deploy AI workloads, with 14% already having done so [7] - Hyperscalers are projected to spend approximately $350 billion on data centers this year, with expectations to increase to $400 billion next year [47] Company Strategy and Development Direction - The company is focused on establishing itself as a leader in the two-phase directed chip liquid cooling market, leveraging its differentiated technology [17] - The management emphasizes the importance of building relationships with key industry players, including hyperscalers and OEMs [9][10] - The company has plans to open a demonstration point in the Bay Area to showcase its technology [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver on growth expectations, citing increasing bookings and a shift towards larger production orders [36][38] - The management noted that the adoption cycle for their technology is progressing as expected, with early signs of traction in the market [39] - There is a strong belief that the company's operating model is underappreciated by the market, with significant value creation opportunities ahead [18] Other Important Information - The company issued convertible debentures totaling $30 million, improving its capital position [28] - The balance sheet showed an increase in cash to $12 million, up from $11.1 million at the end of the previous year [29] - The company is actively managing its cash flow and is focused on additional capital raises to support growth opportunities [31] Q&A Session Summary Question: Commentary on revenue growth inflection in the second half of the year - Management indicated that there has been significant activity and that bookings are expected to increase, reflecting traction at Acelsius [34][35] Question: Insights on the first hyperscaler proof of concept - Management confirmed that the initial proof of concept is a significant milestone and that successful trials could lead to large-scale orders [45][46] Question: Feedback on thermal simulation accuracy for AI workloads - Management explained that their thermal test vehicles allow for accurate simulations of high-density workloads at a fraction of the cost, with positive feedback from initial deployments [58][66]

Financial Performance - Revenue for the second quarter of 2025 was $0.48 million, compared to $0.22 million for the same period in 2024[44] - The company ended the second quarter of 2025 with $12.0 million in cash, an increase from $11.1 million at the end of 2024[43] - Adjusted EBITDA for the second quarter of 2025 was $(16.2) million, compared to $(8.1) million for the same period in 2024[46] - Net loss for the three months ended June 30, 2025 was $(141.275) million[51] Business Updates - 100% of surveyed IT organizations are at least in the AI investigation and use-case discovery stages[25] - Only 14% of companies are in the production at scale phase of their AI workloads[26] - Over 90% of companies intend to increase AI spending in 2025 and beyond[26] - AeroFlexx has achieved four straight quarters of revenue generation across three active customers[35] Strategic Initiatives - Refinity completed signing an engineering, procurement, and construction partner for its first plant design and delivery in 2Q25[38] - Refinity is on track for 3Q25 to demonstrate the viability of fluid bed conversion of mixed plastic waste to liquid product at pilot scale, with preliminary results above expectations[38]

PART I Financial Information [Item 1. Financial Statements (Unaudited)](index=8&type=section&id=Item%201.%20Financial%20Statements%20%28Unaudited%29) H1 2025 unaudited financials show a $394.9 million net loss, driven by a $346.6 million goodwill impairment, raising going concern doubts [Condensed Consolidated Balance Sheets](index=8&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets decreased to $556.0 million by June 30, 2025, primarily due to goodwill impairment, significantly impacting equity Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $6,965 | $11,119 | | Total Current Assets | $21,129 | $24,286 | | Goodwill | $323,463 | $667,936 | | Total Assets | $555,985 | $905,289 | | Total Current Liabilities | $72,317 | $69,347 | | Total Liabilities | $129,925 | $138,996 | | Total Stockholders' Equity | $426,060 | $766,293 | - A significant goodwill impairment of **$344.5 million** was the primary driver for the reduction in total assets[18](index=18&type=chunk) [Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Income%20%28Loss%29) H1 2025 net loss surged to $394.9 million, primarily due to a $346.6 million goodwill impairment, despite revenue growth Six Months Ended June 30 - Financial Performance (in thousands, except per share data) | Metric | 2025 (Successor) | 2024 (Predecessor) | | :--- | :--- | :--- | | Revenue | $700 | $447 | | Total Operating Expenses | $404,472 | $22,265 | | Goodwill impairment | $346,557 | $0 | | Loss from Operations | ($403,772) | ($21,818) | | Net Loss | ($394,949) | ($18,840) | | Net Loss Attributable to Innventure, Inc. Stockholders | ($227,224) | ($12,507) | | Basic and diluted loss per share | ($4.60) | N/A | - A non-cash goodwill impairment charge of **$346.6 million** was the main contributor to the significant increase in net loss for the first six months of 2025[21](index=21&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=14&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) H1 2025 saw net cash used in operations increase to $36.8 million, offset by $41.2 million from financing activities Six Months Ended June 30 - Cash Flow Summary (in thousands) | Cash Flow Category | 2025 (Successor) | 2024 (Predecessor) | | :--- | :--- | :--- | | Net Cash Used in Operating Activities | ($36,754) | ($16,391) | | Net Cash Used in Investing Activities | ($3,640) | ($4,377) | | Net Cash Provided by Financing Activities | $41,240 | $20,274 | | Net (Decrease) Increase in Cash | $846 | ($494) | - The company relied heavily on financing activities, which provided **$41.2 million** in cash, to fund its operations and offset the **$36.8 million** cash burn from operating activities[31](index=31&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=17&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail the Business Combination, a $346.6 million goodwill impairment, new debt, and management's going concern doubts - Management has determined that conditions raise substantial doubt about the company's ability to continue as a going concern within one year, citing recurring losses, negative cash flows, and the need to raise significant additional capital[46](index=46&type=chunk)[47](index=47&type=chunk)[49](index=49&type=chunk) - The company recorded non-cash goodwill impairment charges of **$113.3 million** and **$346.6 million** for the three and six months ended June 30, 2025, respectively, due to sustained decreases in its stock price and market capitalization[120](index=120&type=chunk)[122](index=122&type=chunk) - In March 2025, the company entered into a securities purchase agreement for up to **$30.0 million** in convertible debentures, receiving gross proceeds of **$27.0 million** in April and May 2025[100](index=100&type=chunk)[101](index=101&type=chunk)[102](index=102&type=chunk) - The company has one reportable operating segment, Technology, which includes the activities of its subsidiary Accelsius. This segment generated revenues of **$255 thousand** and incurred a net loss of **$366.8 million** for the six months ended June 30, 2025, with the loss largely due to the goodwill impairment[192](index=192&type=chunk)[195](index=195&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=43&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) H1 2025 revenue grew, but operating expenses surged due to a $346.6 million goodwill impairment, impacting liquidity and going concern issues Six Months Ended June 30 - Results of Operations Comparison (in thousands) | Metric | 2025 (Successor) | 2024 (Predecessor) | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Revenue | $700 | $447 | $253 | 56.6% | | Total Operating Expenses | $404,472 | $22,265 | $382,207 | 1,716.6% | | Loss from Operations | ($403,772) | ($21,818) | ($381,954) | 1,750.6% | | Net Loss | ($394,949) | ($18,840) | ($376,109) | 1,996.3% | - The increase in operating expenses was driven by a **$346.6 million** goodwill impairment, **$14.3 million** in increased stock-based compensation, and higher amortization of intangible assets following the Business Combination[221](index=221&type=chunk)[224](index=224&type=chunk) Adjusted EBITDA Reconciliation (Non-GAAP, in thousands) | Metric | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :--- | :--- | :--- | | Net loss | ($394,949) | ($18,840) | | EBITDA | ($383,201) | ($18,323) | | Adjusted EBITDA | ($38,002) | ($9,996) | - The company's liquidity position is strained, with cash of **$7.0 million** and a working capital deficit of **$51.2 million** as of June 30, 2025. Management estimates a need for at least **$50,000** in additional funding over the next 12 months[269](index=269&type=chunk) - Management reiterates that there is substantial doubt about the company's ability to continue as a going concern, and its future is dependent on obtaining adequate capital through equity or debt financing, including its SEPA with Yorkville[294](index=294&type=chunk)[295](index=295&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=58&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) As a smaller reporting company, the company is not required to provide market risk disclosures - As a smaller reporting company, Innventure, Inc. is not required to provide quantitative and qualitative disclosures about market risk[298](index=298&type=chunk) [Controls and Procedures](index=58&type=section&id=Item%204.%20Controls%20and%20Procedures) Disclosure controls and procedures were ineffective as of June 30, 2025, due to identified material weaknesses in internal control - The CEO and CFO concluded that the company's disclosure controls and procedures were not effective at a reasonable level of assurance as of June 30, 2025[301](index=301&type=chunk) - Material weaknesses were identified in several areas, including: - Insufficient staffing with appropriate accounting knowledge for complex transactions - Lack of necessary IT general controls (e.g., user access reviews, privileged access restriction) - Lack of segregation of duties and review over reconciliation of significant accounts[302](index=302&type=chunk)[304](index=304&type=chunk) PART II Other Information [Legal Proceedings](index=61&type=section&id=Item%201.%20Legal%20Proceedings) The company reports no material pending legal proceedings involving itself or its subsidiaries - As of the reporting date, the company is not a party to any material pending legal proceedings[307](index=307&type=chunk) [Risk Factors](index=61&type=section&id=Item%201A.%20Risk%20Factors) As a smaller reporting company, the company is not required to provide risk factor disclosures - As a smaller reporting company, Innventure, Inc. is not required to provide risk factor disclosures in its Form 10-Q[308](index=308&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=61&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Unregistered equity sales included $30 million in convertible debentures, warrants, and common stock issuances - Issued Convertible Debentures to Yorkville with a total principal amount of **$30 million** in April and May 2025[309](index=309&type=chunk) - Issued **495,074** warrants (2025 WTI Warrants) to WTI Holders on April 14, 2025, exercisable through March 31, 2035[312](index=312&type=chunk) - Multiple issuances of common stock were made to Yorkville between May and June 2025 under the terms of the Standby Equity Purchase Agreement (SEPA)[313](index=313&type=chunk) [Other Information](index=62&type=section&id=Item%205.%20Other%20Information) A director adopted a Rule 10b5-1 trading plan for 1,170,262 shares, with executive chairman's units seeing accelerated vesting - Director Daniel Hennessy adopted a Rule 10b5-1 trading plan for the sale of up to **1,170,262** shares of common stock[317](index=317&type=chunk) - The board approved the accelerated vesting of **46,875** unvested Accelsius Incentive Units for Executive Chairman Mike Otworth[320](index=320&type=chunk)[321](index=321&type=chunk) [Exhibits](index=63&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including corporate documents, financing agreements, and officer certifications

Core Insights - Innventure, Inc. reported a strong performance in the second quarter of 2025, with expectations for continued revenue growth in the latter half of the year [3] - The company highlighted significant advancements in its operating companies, including Accelsius, AeroFlexx, and Refinity, which are positioned for market success [3] - Innventure aims to unlock value from its technology solutions pipeline, which is currently underappreciated in the market [3] Financial Performance - For the quarter ended June 30, 2025, Innventure generated revenue of $476 million, a substantial increase from $223 million in the same quarter of 2024 [20] - The total operating expenses for the quarter were $143.05 million, compared to $11.51 million in the same quarter of the previous year [20] - The net loss for the quarter was $141.275 million, compared to a loss of $11.314 million in the same quarter of 2024 [20] Company Developments - Accelsius has strengthened its market position with new deployments at major facilities, achieving industry-leading thermal milestones with its NeuCool technology [3] - AeroFlexx achieved its fourth consecutive quarter of revenue generation and received Critical Guidance Recognition for recyclability from the Association of Plastic Recyclers [3] - Refinity has engaged an engineering, procurement, and construction partner for its first plant design, marking a significant milestone for the company [3] Strategic Outlook - The CEO of Innventure expressed confidence that the remainder of 2025 will be an inflection point for revenue growth across the enterprise [3] - The company is focused on delivering long-term value for shareholders and believes that the progress made across its operating companies is just the beginning [3] - Innventure has a high-quality pipeline of technology solutions from multinational corporations, which it plans to leverage for future growth [3]

ORLANDO, Fla., Aug. 12, 2025 (GLOBE NEWSWIRE) -- Innventure, Inc. (NASDAQ: INV) ("Innventure"), a technology commercialization platform, today announced it will release its second quarter 2025 financial results after market close on Thursday, August 14, 2025. Management will host a conference call on the day of the release (August 14, 2025) at 5:00 pm ET to discuss the results. The conference call will include comments from Josh Claman, Chief Executive Officer of Accelsius. Media Contact: Laurie Steinberg, ...

Core Insights - Accelsius has experienced significant growth in the first half of 2025, marked by a five-fold increase in data center deployments and expansion into international markets [1][5][9] - The company has achieved industry-leading thermal performance with its NeuCool technology, capable of cooling up to 4,500W per GPU socket, addressing the demands of next-generation AI workloads [2][4][10] - Accelsius has doubled its product portfolio, introducing the MR250 multi-rack Coolant Distribution Unit (CDU) to meet the growing needs of hyperscale and AI infrastructure [13][14] Industry Trends - The data center industry is undergoing a transformation due to the increasing demands of AI infrastructure, necessitating advanced cooling solutions [2][4] - Traditional cooling methods are becoming inadequate as rack densities approach 600kW configurations, highlighting the need for innovative technologies like those offered by Accelsius [2][4] Product and Technology Developments - Accelsius successfully demonstrated its cooling technology by maintaining GPU temperatures below NVIDIA's thermal throttle limits in a 250kW rack of AI servers [3][4] - The NeuGuard program was launched to enhance cooling reliability for AI and advanced computing deployments, offering coverage for internal damage caused by leaks [11][12] Strategic Partnerships and Market Expansion - The company has established key partnerships in Europe and entered the Canadian market, enhancing its international presence [5][8][9] - Collaborations with major players like Equinix and Nordik Data Centers are set to bolster Accelsius's market position and facilitate the development of next-generation AI data centers [7][8] Sustainability and Energy Efficiency - Accelsius's technology can operate with facility water temperatures 6-8°C higher than competitors, leading to over 25% cooling energy savings and supporting sustainability goals [4][10]

AUSTIN, Texas, July 15, 2025 (GLOBE NEWSWIRE) -- Accelsius, a leader in advanced data center cooling solutions, announced that its proprietary NeuCool™ IR80 system will be deployed in Q3 2025 at Equinix's Co- Innovation Facility (CIF) in the DC15 International Business Exchange™ (IBX®) data center at the Equinix Ashburn Campus. This dedicated facility provides a platform for Equinix to work with companies that are developing innovative technologies, helping customers see and experience these solutions in ac ...

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]