Innventure, Inc. Q1 FY2026 earnings call

Corporate Governance & Shareholder Engagement

• Strengthened the board of directors with the appointment of John Hewitt and nomination of Katrina Fallon, two seasoned operators with experience scaling complex businesses, as part of ongoing governance refresh.
• Engaged in extended dialogue with a diverse set of shareholders that informed board composition decisions; large shareholder Ascent Capital Partners publicly expressed support for InVenture's leadership and strategic direction, signaling productive shareholder engagement.

Excelsius (Two-Phase Liquid Cooling for AI/High-Performance Compute)

• Secured a strategic partnership with Legrand, which also participated in Excelsius' Series B funding round, for joint development of integrated two-phase cooling in rack infrastructure.
• Launched the Cool IR150 at NVIDIA GTC, the industry's first integrated rack-level two-phase liquid cooling solution capable of delivering up to 150 kilowatts of capacity, purpose-built for high-density enterprise deployments.
• Recorded over $50 million in Q1 2026 bookings, with growing customer validation of the technology amid industry-wide shifts to liquid cooling for high-density AI accelerators.

Aeroflex (Sustainable Hybrid Packaging)

• Expanded total commercial pipeline to $32 million, a 21% increase since January 2026, with $13.2 million of the pipeline in final negotiation (a 40% increase).
• Secured a global commercial launch partnership with Aveda (prestige beauty), which generated $3.6 million in new and reactivated commercial opportunities; the first Aveda products using Aeroflex packaging will launch in 2027, with initial inventory purchase orders already placed.
• Expanded manufacturing footprint via a new partnership with Packaging Immolese in Italy, adding regional production, R&D, and formulation capability for the large household and personal care packaging categories. Earned BRCGS, GMP Ohio, and ISCC Plus certifications to support scalable, compliant commercial operations across geographies and categories.

Raffinity (Circular Feedstocks from Mixed Plastic Waste)

• Completed successful multi-day pilot trials at VTT that produced target light olefins (ethylene, propylene) from market-sourced mixed plastic waste at yields meeting or exceeding performance targets, validating the core technology.
• Detail design of the 10 kiloton commercial demonstration plant is underway, with engineering completion expected by the end of Q3 2026; additional testing with a U.S. partner's existing fluidized bed assets will begin by mid-2026 to accelerate commercial validation.
• Continues integration work with Dow to align Raffinity plant operations with existing steam cracker infrastructure, and is in active discussions for offtake agreements and non-dilutive government CAPEX funding to support project financing for the demonstration plant.

Financial & Capital Strategy

• Q1 2026 total G&A expenses were $12.7 million, $7 million lower than Q1 2025, driven by a 51% reduction in professional service fees from transitioning to lower-cost in-house personnel. Net loss attributable to shareholders was $20.8 million, the lowest since InVenture became public, with an adjusted EBITDA loss of $18.4 million.
• Ended Q1 with $60.4 million in cash and restricted cash; completed an opportunistic $11.9 million draw on the standby equity facility post-quarter at over $6 per share, limiting total dilution to ~2% and keeping projected annualized dilution under 10%. Management expects no need for significant near-term capital raises, and plans to use more conventional capital raising tools with a top-tier bank syndicate for any future needs to reduce dilution.

Consolidated total revenue for Q1 2026 was $1.4 million, representing a 600% year-over-year increase from $0.2 million in Q1 2025 and a 75% sequential increase from $0.8 million in Q4 2025. Excelsius, the two-phase liquid cooling segment, contributed $1.3 million in Q1 2026 revenue, equal to ~92.9% of total consolidated revenue, marking the highest quarterly revenue for the segment since InVenture began public reporting in 2024. Aeroflex (sustainable packaging) and Raffinity (advanced circular chemical materials) contributed the remaining ~$0.1 million in combined Q1 2026 revenue, as both segments remain in pre-commercial scale or early commercial growth phases.

• Management reaffirmed its prior guidance that Excelsius will exit December 2026 with positive operating cash flow, corresponding to an annualized revenue run rate of approximately $100 million (not $100 million in full-year 2026 revenue).
• No formal full-year 2026 or 2027 revenue or bookings guidance is provided, but management expects meaningful additional bookings for Excelsius and Aeroflex over the next two quarters, and expects to enter 2027 with a substantial backlog to support aggressive 2027 revenue growth.
• Management expects engineering design for Raffinity's 10 kiloton demonstration plant to wrap up by the end of Q3 2026, with additional third-party testing of Raffinity's process to begin by mid-2026.

• Early-stage technology businesses in pre-inflection phases have lumpy booking and revenue patterns that reduce near-term financial predictability.
• External supply chain challenges and data center project delays (driven by power permitting, environmental protests, and infrastructure constraints) could impact the timing of Excelsius revenue recognition.
• New commercial partnerships and product launches carry execution risk, and pipeline opportunities may not convert to final revenue-generating contracts as expected.
• InVenture's reliance on equity capital for early-stage growth carries shareholder dilution risk, though management has implemented a disciplined strategy to minimize this.

Q: Roth Capital Partners asked management to confirm comfort with the $100 million annualized Excelsius revenue run rate target by end-of-year 2026, and asked about risks related to broadly reported data center project delays. / A: Management confirmed it remains optimistic that the target will be hit. While there are uncontrollable external supply chain risks, InVenture has sufficient internal capacity to meet the required volume for the run rate. They also noted that ~$150 billion in delayed data center projects could actually benefit Excelsius, as its technology uses less power and requires no water in racks, helping resolve permitting and environmental issues holding up these projects. Management expects bookings will remain lumpy in the early stage of adoption, which is also common for large established players in the disrupted data center infrastructure space. (318 characters)

Q: Northland Capital Markets asked whether InVenture has enough cash to scale Excelsius to the $100 million run rate, and for visibility into future cash conversion cycle metrics. / A: Management stated it is too early to fix exact metrics like DSO, DIO, and DPO because customer terms vary, but internal forecasts are conservative. They confirmed InVenture has adequate cash to scale to required delivery volumes without needing to return to the equity market, and expects inventory growth can be financed via traditional lenders rather than equity, given the high credit quality of Excelsius' customer counterparties. (316 characters)

Q: Sudodian Co. asked about the role of channel partners in scaling Excelsius deployments, and whether recurring revenue from software/monitoring will become part of the future revenue mix. / A: Management noted that existing channel partnerships (including Legrand and Johnson Controls) are designed to deliver significant multiplier effect, as partners have existing sales and marketing reach to thousands of potential racks across customer segments. Management confirmed there is a small but meaningful recurring revenue component from monitoring and optimization services for deployed systems, so recurring revenue will contribute to future top line after initial product deliveries. (339 characters)