Summary of Innventure's Q2 2026 Earnings Call

1Key Financial Results and Metrics

Consolidated Revenue: $1 million, up from $0.5 million in Q2 2025, but down from $1.4 million in Q1 2026.

Accelsius Contribution: $0.9 million (96% of total revenue).

Net Loss: $34.9 million, compared to $27.8 million in Q1 2026.

Adjusted EBITDA: Loss of $22.6 million, worsening from $18.4 million in Q1 2026.

Cash Position: $46.5 million at quarter-end, down from $60.4 million in Q1 2026.

Cash Burn: Year-to-date cash used in operations was $59.5 million.

2Strategic Updates and Business Highlights

Accelsius Focus: The company is pivoting its strategy to focus on larger hyperscalers rather than smaller early adopters due to constraints in GPU access and power availability.

AeroFlexx: The commercial pipeline has grown to $35 million, with new partnerships in Latin America and Europe.

Refinity: Engineering design for a 10-kiloton demonstration plant is on track for completion by year-end.

Leadership Transition: Bill Haskell will retire as CEO, with Bill Grieco taking over, emphasizing continuity and a focus on achieving key milestones rather than quarterly revenue targets.

3Forward Guidance and Outlook

Accelsius Revenue Targets: The expectation for Accelsius to reach cash flow breakeven has been pushed beyond 2026 due to market dynamics. The company will suspend revenue targets until adoption constraints ease.

Future Reporting: The focus will shift to reporting on key milestones related to market adoption rather than specific revenue forecasts.

Capital Strategy: Plans to finance AeroFlexx and Refinity at the operating company level to minimize dilution for Innventure shareholders.

4Bad News, Challenges, or Points of Concern

Market Dynamics: Smaller early adopters are facing significant barriers, leading to a suspension of revenue targets and a delay in expected cash flow breakeven for Accelsius.

DarkNX Purchase Order: A setback occurred as the original site for a key project is no longer available, creating uncertainty in revenue forecasts.

Cash Burn: Continued high cash burn rates raise concerns about future funding needs and potential dilution for shareholders.

5Notable Q&A Insights

DarkNX Impact: The loss of the original site is linked to power availability issues, but the expectation is that the order will transfer to a new site.

Hyperscaler Engagement: Discussions with hyperscalers are ongoing, with timelines for deployment and revenue generation varying significantly based on each customer's internal processes.

Market Conviction: There is a growing consensus in the industry that two-phase cooling will be essential, but the timing of widespread adoption remains uncertain.

Cash Runway: The company has sufficient cash on hand and access to various funding avenues, but additional capital may be needed in the second half of the year. Overall, while Innventure is optimistic about the long-term potential of its technologies, particularly in the Accelsius division, it faces significant near-term challenges that could impact its financial performance and strategic execution.