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II

Innventure, Inc. (INV)·Q3 2024 Earnings Summary

Executive Summary

  • Q3 2024 revenue was $0.317M, up 15.7% year over year, while loss from operations widened to $(13.674)M; net loss improved to $(7.641)M as non‑operating gains offset higher OpEx .
  • Accelsius delivered its first revenue‑generating cooling system in the quarter; AeroFlexx began commercial deliveries and an October press release highlighted initial production ramp .
  • Liquidity improved to $16.297M cash but working capital was $(20.386)M; management disclosed substantial doubt about going concern without additional financing (SEPA up to $75M; conditional $50M WTI facility) .
  • No formal revenue/EPS guidance or consensus estimate comparisons were available; S&P Global consensus was unavailable for Q3 2024. Estimates unavailable (Values retrieved from S&P Global)*.

What Went Well and What Went Wrong

What Went Well

  • Accelsius “delivered first revenue generating system during third quarter,” marking initial commercialization within ~30 months of founding .
  • “Operating companies continue to outperform our expectations, with both AeroFlexx and Accelsius now delivering commercial product to the marketplace,” said CEO Bill Haskell, pointing to early demand traction .
  • Segment disclosures show Technology revenue contribution began (product sales $0.095M) and non‑operating gains (exchange‑traded investments) materially improved bottom line vs prior year .

What Went Wrong

  • Revenue ($0.317M) was far below cost of sales ($0.777M), implying negative gross margin at this scale; OpEx rose sharply (G&A $9.052M, R&D $2.533M) due to public readiness and hiring .
  • Working capital stood at $(20.386)M and management flagged substantial doubt about ability to continue as a going concern without additional capital .
  • Related‑party bridge notes and higher interest burden increased financing risk (e.g., $10M Glockner note at 15.99% post‑amendment; outstanding fees and maturities in Q4/Q1) .

Financial Results

Headline P&L vs Prior Year

MetricQ3 2023Q3 2024
Revenue ($USD Millions)$0.274 $0.317
Loss from Operations ($USD Millions)$(5.716) $(13.674)
Total Non-operating (Expense) Income ($USD Millions)$(13.200) $6.033
Net Loss ($USD Millions)$(18.916) $(7.641)
Basic Loss per Class A Unit ($USD)$(0.84) $(0.94)

Sequential Comparison (Prior Quarter)

MetricQ2 2024Q3 2024
Revenue ($USD Millions)N/A (not publicly disclosed for Q2 2024) $0.317
Net Loss ($USD Millions)N/A (not publicly disclosed for Q2 2024) $(7.641)

Segment Breakdown (Three Months)

MetricQ3 2023Q3 2024
Corporate Revenue ($USD Millions)$0.301 $0.249
Technology Revenue ($USD Millions)$0.000 $0.095
Elimination ($USD Millions)$(0.027) $(0.027)
Consolidated Revenue ($USD Millions)$0.274 $0.317
Corporate Net Loss ($USD Millions)$(15.217) $(1.857)
Technology Net Loss ($USD Millions)$(3.699) $(5.784)

KPIs and Balance Sheet Snapshot

KPI / MetricQ3 2023Q3 2024
Accelsius first revenue‑generating system deliveredN/ADelivered in Q3 2024
AeroFlexx commercial deliveries (facility launch)N/AAnnounced first commercial production (Oct 31)
Cash and Cash Equivalents ($USD Millions)$2.575 $16.297
Working Capital ($USD Millions)$(2.504) $(20.386)
Ownership: AccelsiusN/A~55% (as of Nov 14, 2024)
Ownership: AeroFlexxN/A~31% (as of Nov 14, 2024)

Guidance Changes

No formal revenue/EPS or margin guidance ranges were provided in Q3 2024 materials.

MetricPeriodPrevious GuidanceCurrent GuidanceChange
RevenueFY/QuarterNot provided Not provided Maintained (no guidance)
Adjusted EBITDAFY/QuarterNot provided Plan to report as companies scale; no range provided Maintained (no guidance)
OpExFY/QuarterNot providedNot providedMaintained (no guidance)
Capital/Financing2024–2025SEPA up to $75M; conditional WTI facility up to $50M; $11.02M Series B Preferred; ~$11.3M trust assets on close New financing capacity

Earnings Call Themes & Trends

Public transcript was not available; company provided a webcast and an earnings presentation.

TopicPrevious Mentions (Q-2 and Q-1)Current Period (Q3 2024)Trend
Commercialization progressNo public disclosures available (company was private) Accelsius first revenue‑generating system; AeroFlexx delivering products Positive inflection from pre‑revenue to initial revenue
Capital structure/liquidityNo public disclosures available SEPA ($75M), conditional WTI facility ($50M); Series B Preferred ($11.02M) Expanded financing options; execution risk remains
Data center cooling demandNo public disclosures available Active ecosystem engagement (OCP, Digital Infrastructure Network, Data Center World) Building pipeline awareness
Packaging commercialization (AeroFlexx)No public disclosures available First commercial production; partnerships in EU/Asia; shelf presence expected in 2025 Scaling toward retail presence
Operating model shiftNo public disclosures available “Disruptive Conglomerate Model” to hold and scale OpCos (vs exit) Strategic pivot to long‑term value capture

Management Commentary

  • “Our operating companies continue to outperform our expectations, with both AeroFlexx and Accelsius now delivering commercial product to the marketplace.” — Bill Haskell, CEO .
  • “Now as a public company, we can accelerate execution against our mission to bring breakthrough technologies to market and deliver long‑term value for our shareholders.” — Bill Haskell, CEO .
  • Presentation reiterated majority ownership in Accelsius (~55%) and equity‑method holding in AeroFlexx (~31%), with plans to report revenue, Adjusted EBITDA, and cash flow as scaling occurs .

Q&A Highlights

No public Q&A transcript was available; the company hosted a webcast and posted an earnings presentation, but did not publish a transcript in the document set we reviewed .

Estimates Context

  • Wall Street consensus (S&P Global) for Q3 2024 revenue and EPS was unavailable at time of retrieval (SPGI request limit and nascent coverage). Estimates unavailable (Values retrieved from S&P Global)*.
  • Without consensus, we cannot assess beat/miss vs estimates; investors should expect estimate formation as coverage initiates post‑listing .

Key Takeaways for Investors

  • Initial commercialization achieved: Accelsius recorded first revenue‑generating system; AeroFlexx launched commercial production, de‑risking product market fit and establishing early customer engagement .
  • Scaling remains the near‑term challenge: revenue is modest versus cost base (cost of sales>$revenue; G&A and R&D up), implying continued operating losses until volumes ramp .
  • Liquidity bridge identified but execution‑dependent: SEPA and conditional WTI facility add capacity; working capital is negative and management disclosed going‑concern risks without further financing .
  • Strategic shift to “hold and scale” OpCos could enhance long‑term value capture vs prior exit‑driven model; majority ownership in Accelsius positions Innventure to benefit from operating leverage as units ship .
  • Watch catalysts: additional Accelsius deployments and data center wins; AeroFlexx on‑shelf in 2025; drawdown progress on WTI tranches; any new MNC‑sourced DownSelects .
  • Risk monitoring: related‑party notes/amendments, interest costs, internal control remediation, and conditional nature of financing facilities .
  • With limited historical public quarters and no consensus, price discovery will hinge on visible shipment milestones and financing progress rather than near‑term earnings beats .

Additional references:

  • Press release PDF and IR quarterly results hub: .
  • Nasdaq summary reflecting revenue and net loss improvements: .