INV — Innventure, Inc.

Summary of Innventure (INV) Q1 2026 Earnings Call

1. Key Financial Results and Metrics:

• Revenue: Q1 2026 revenue was $1.4 million, a significant increase from $0.2 million in Q1 2025 and up from $0.8 million in Q4 2025.
• Accelsius Revenue: Contributed $1.3 million, marking its highest quarterly revenue since reporting began in 2024.
• Net Loss: The net loss attributable to stockholders was $20.8 million, the lowest since going public.
• Adjusted EBITDA: Reported a loss of $18.4 million.
• Cash Position: Ended the quarter with $60.4 million in cash and restricted cash, down $5.1 million from the previous quarter.
• Bookings: Achieved over $50 million in bookings during Q1.

2. Strategic Updates and Business Highlights:

• Corporate Governance: Strengthened board with new appointments and engaged shareholders, receiving public support from Ascent Capital Partners.
• Accelsius Developments: Positioned for growth with significant partnerships, including a strategic alliance with Legrand for integrated cooling solutions.
• AeroFlexx Progress: Expanded commercial pipeline to $32 million, with major customer Aveda launching refill packaging in 2027.
• Refinity Advancements: Working on a 10-kiloton commercial demonstration plant, with positive pilot results for converting plastic waste into valuable chemicals.

3. Forward Guidance and Outlook:

• Revenue Run Rate: Accelsius is expected to exit December 2026 with a revenue run rate of approximately $100 million, contingent on achieving additional bookings.
• Growth Expectations: Anticipates strong revenue and adjusted EBITDA growth in the second half of 2026 and into 2027, driven by ongoing customer validation and integration of technologies.

4. Bad News, Challenges, or Points of Concern:

• Net Losses: Continued net losses, although improving, raise concerns about profitability timelines.
• Market Risks: External factors such as supply chain disruptions and environmental protests affecting data center operations could impact growth.
• Predictability of Revenue: The early-stage nature of the business makes revenue predictability challenging, with potential lumpiness in bookings and revenue recognition.

5. Notable Q&A Insights:

• Bookings and Revenue Targets: Management confirmed that achieving the $100 million run rate requires approximately $50 million in additional bookings over the next six months, emphasizing the importance of ongoing customer demand.
• Cash Conversion Cycle: While still early to determine specific metrics, management expressed confidence in managing cash flow and scaling operations without needing significant additional capital.
• Channel Partnerships: Highlighted the critical role of strategic partners like Johnson Controls and Legrand in driving demand and scaling deployments, with potential for recurring revenue from software monitoring and system optimization in future deployments.

Overall, Innventure is navigating a transformative phase with promising growth prospects, though it faces challenges typical of early-stage companies in high-demand sectors.