Summary of Innventure Year-End Conference Call Company Overview - **Company Name**: Innventure - **Ticker**: INV - **Business Model**: Innventure focuses on starting, building, and scaling disruptive industrial technology solutions through strategic collaborations with multinationals [2][3][4] Key Points Industry Focus - Innventure operates in the industrial technology sector, specifically targeting technologies that address unmet market needs [3][4] - The company has launched four companies to date, including PureCycle Technologies, AeroFlexx, Accelsius, and Refinity, each focusing on innovative solutions in recycling and data center cooling [7][10][11] Core Business Model - Innventure employs a closed-loop model that emphasizes unique technology solutions developed by multinationals, ensuring that these technologies are not easily replicated [4][5] - The model aims to mitigate risks associated with early-stage technology companies by ensuring that multinationals are involved as early adopters or customers [6][19] Recent Developments - **Accelsius**: A data center cooling solution that has gained significant market interest, with a pipeline exceeding $1 billion [11][36] - **Refinity**: A recycling business developed in collaboration with Dow Chemical, leveraging technology from VTT, a Finnish lab [10][11] Financial Performance - Innventure went public in October 2024 and has been focusing on reducing operational costs while managing cash burn [11][25][26] - The company has seen an increase in trading volume, averaging over a million shares, which is expected to enhance liquidity and capital access [26][43] Strategic Partnerships - Innventure has established relationships with major multinationals like Procter & Gamble and Nokia, which have facilitated the launch of new companies and technologies [20][23] - The recent strategic investment from Johnson Controls in Accelsius is seen as a validation of the technology and a potential revenue-generating relationship [30][32] Future Outlook - The company aims to continue accelerating the commercialization process for its technologies, with a focus on execution and building trust with clients [39][40] - Innventure is optimistic about its growth trajectory, particularly with Accelsius, and plans to leverage its recent addition to the Russell 2000 and 3000 indices to enhance capital raising efforts [41][43] Investor Relations - Innventure's insiders are reportedly increasing their holdings, indicating confidence in the company's long-term value creation [46][47] - The management emphasizes the importance of executing growth plans and managing capital costs effectively [47][48] Additional Insights - The company is focused on creating immediate economic value through disruptive technologies that compel changes in client behavior [14][19] - Innventure's approach is characterized by a low-throughput, high-conviction strategy, concentrating on a few selected technologies rather than spreading resources too thinly across many [19][20] This summary encapsulates the key points discussed during the Innventure Year-End Conference Call, highlighting the company's strategic focus, recent developments, financial performance, and future outlook.

Financial Data and Key Metrics Changes - Innventure reported revenue of $0.5 million for Q3 2025, primarily from proof of concept sales at Accelsius, indicating early-stage revenue growth has taken longer than expected [15] - Total G&A expenses for the quarter were $16.9 million, down from $18.6 million in Q2 and $19.7 million in Q1, reflecting improved operational efficiency [15] - The net loss for the quarter was $34.7 million, with adjusted EBITDA showing a loss of $17.5 million [15] - Cash at the end of the quarter was $14.1 million, an increase of $3 million from the beginning of the year [15] Business Line Data and Key Metrics Changes - Accelsius's opportunity pipeline grew 79% quarter over quarter, exceeding $1 billion, with over 75% of the pipeline representing production opportunities for 2026 [4][5] - AeroFlexx achieved its fifth consecutive quarter of revenue recognition across multiple market categories, highlighting a strong customer pipeline in both the U.S. and EU [8][9] - Refinity is progressing towards commercializing its technology, with plans for a mid-scale demonstration in 2026 and larger commercial deployments thereafter [10][11] Market Data and Key Metrics Changes - Accelsius's bookings in Q3 surpassed all previous quarters combined, indicating a significant growth trend expected to continue into Q4 and beyond [5] - AeroFlexx received two prestigious awards in Q3, underscoring its leadership in sustainable packaging solutions [9] Company Strategy and Development Direction - The company is focused on building market-changing companies that deliver tangible value for shareholders, with a disciplined, data-driven model pairing transformative technologies with proven operators [12][13] - Accelsius's recent $25 million strategic investment from Johnson Controls is expected to enhance its growth capital and market position [6][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in Accelsius's ability to create long-term value, citing robust growth projections and a strong opportunity pipeline [6][12] - The company acknowledges that its share price does not currently reflect the underlying value created, but remains committed to executing its strategy and expanding its pipeline [13][16] Other Important Information - The company has deployed approximately $160 million into its operating companies, producing net assets valued at an estimated $860 million [12] - Accelsius has expanded its manufacturing footprint with a dedicated facility in Austin and installed demonstration sites in various locations [5][6] Q&A Session Summary Question: Can you elaborate on the $1 billion opportunity pipeline for Accelsius? - The pipeline is significantly spread out with several hundred leads, and while large orders from hyperscalers are possible, the majority are smaller opportunities [18][19] Question: What is the expected conversion rate for the pipeline over the next 12 to 18 months? - Management indicated that the pipeline metrics are well calibrated, and while they cannot provide specific percentages, they are confident that a meaningful fraction will translate into revenue [29][32] Question: What investments or supply chain builds are required for Accelsius to support large-scale developments starting in 2026? - Accelsius has designed its supply chain thoughtfully, primarily using North American suppliers and dual-sourcing components to avoid supply chain challenges [28] Question: Are there any integration or regulatory milestones before transitioning pipeline orders into firm orders? - There are no significant technical or regulatory hurdles, and the company is well-positioned to deliver as customer needs arise [33]

Financial Performance - Revenue for the three months ended September 30, 2025 was $0.53 million, compared to $0.32 million for the same period in 2024[42] - Adjusted EBITDA for the three months ended September 30, 2025 was $(17.5) million, compared to $(3.0) million for the same period in 2024[42] - Net loss for the three months ended September 30, 2025 was $(34.735) million, compared to $(7.641) million for the same period in 2024[48] - Net loss for the nine months ended September 30, 2025 was $(429.684) million, compared to $(26.481) million for the same period in 2024[48] - Adjusted EBITDA for the nine months ended September 30, 2025 was $(55.466) million, compared to $(12.968) million for the same period in 2024[48] Business Highlights - Accelsius secured a $25 million strategic investment from Johnson Controls on October 2, 2025[27,44] - The opportunity pipeline grew by 79% quarter-over-quarter, exceeding $1 billion[27,44] - Over 80% of the pipeline represents production opportunities for Shift to Production 2026[27] - Q3 commercial bookings for Accelsius surpassed all previous bookings combined[44]

Group 1 - Accelsius secured a strategic investment from Johnson Controls and introduced its NeuCool® MR250 system, with a sales pipeline exceeding $1 billion, positioning the company to capitalize on the growing demand for advanced liquid cooling solutions [1][3] - AeroFlexx achieved its fifth consecutive quarter of revenue generation and is expanding its customer pipeline in the U.S. and Europe, including a partnership with ĕleeo brands for innovative, recyclable packaging [1][3] - Refinity is on track to demonstrate pilot scale and finalize the initial site selection for its first plant by the end of the year, indicating progress in its operational capabilities [1][3] Group 2 - Innventure's CEO, Bill Haskell, emphasized the company's focus on unlocking value through the advancement of its operating companies and a high-quality pipeline of technology opportunities, suggesting a commitment to long-term shareholder value [3] - The company reported revenue of $534 million for the quarter ended September 30, 2025, compared to $317 million for the same period in 2024, indicating significant growth [19] - Operating expenses for the same quarter were $29.7 million, up from $14 million in the previous year, reflecting increased investment in operations [19]

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]

Core Insights - Innventure, Inc. had a significant year in 2024, marked by the commercial delivery of products for Accelsius and AeroFlexx, the completion of a business combination, and the launch of its fourth operating company, Refinity [2] Financial Performance - For the year ended December 31, 2024, Innventure reported a net loss of $70.633 million, compared to a net loss of $28.198 million for the predecessor period [18] - The company generated revenue of $456 thousand for the period from October 2, 2024, through December 31, 2024, down from $1.117 million in the previous year [18] - Total operating expenses for the same period were $40.753 million, an increase from $24.795 million in the prior year [18] Assets and Liabilities - As of December 31, 2024, total assets amounted to $905.289 million, a significant increase from $21.564 million in the previous year [16] - Current liabilities totaled $69.347 million, up from $8.168 million in the prior year [16] Non-GAAP Financial Measures - Innventure reported an Adjusted EBITDA of $(11.670) million for the period from October 2, 2024, through December 31, 2024, compared to $(26.156) million for the predecessor period [33] - The company defines Adjusted EBITDA as EBITDA further adjusted to exclude certain non-cash items and non-recurring expenses, providing additional insight into operational performance [7][10] Business Strategy - Innventure focuses on founding, funding, and operating companies that provide transformative, sustainable technology solutions, aiming for a target enterprise value of at least $1 billion [5] - The company aims to mitigate risks while building disruptive companies that can significantly change business operations and market dynamics [5]