Earnings call transcript: Innventure Q1 2026 shows strong revenue growth

Innventure Inc. (INV) reported its Q1 2026 earnings on May 14, showcasing a robust revenue increase to $1.4 million, a 600% rise from the same quarter last year. The company’s flagship operating company, Accelsius, contributed significantly to this growth. Despite the positive revenue trajectory, Innventure continues to report net losses, with a Q1 net loss of $20.8 million. In premarket trading, Innventure’s stock showed a slight increase, rising 0.7% to $7.20. The stock has demonstrated remarkable momentum, with a 17.87% return over the last week and an impressive 125.93% surge over the past six months, according to InvestingPro data. Despite this strong performance, the stock currently trades above its InvestingPro Fair Value, suggesting investors should exercise caution at current levels.

Innventure demonstrated substantial growth in Q1 2026, driven by its operating companies’ performance. The company’s revenue increased significantly compared to Q1 2025, reflecting consistent growth across its portfolio. Accelsius, a key contributor, is on track to achieve positive cash flow by the end of 2026, marking a pivotal shift toward profitability.

Innventure’s future projections indicate continued growth, with Accelsius expected to reach a revenue run rate of $100 million by the end of 2026. The company plans to leverage its $60.4 million cash position and recent $11.9 million equity raise to support its growth initiatives without significant additional capital raises. Wall Street analysts maintain a bullish outlook, with a consensus "Strong Buy" rating and price targets ranging from $13 to $16, representing significant upside from current levels.

Innventure’s management highlighted the company’s transition to cash-generative operations, stating, "Accelsius is poised to exit 2026 with positive operating cash flow, a testament to our strategic focus and operational execution." The company’s leadership also emphasized their disciplined approach to capital formation and operational efficiency.

During the earnings call, analysts inquired about the timeline for Accelsius achieving positive cash flow and the strategic partnerships’ impact on market expansion. Management reaffirmed their confidence in reaching these milestones by the end of 2026, citing strong market demand and operational readiness.

Innventure’s Q1 2026 performance underscores its growth potential, with a focus on achieving profitability and expanding its market presence through strategic partnerships and innovative product offerings.

Operator: Welcome to Innventure’s first quarter 2026 earnings call. All participants will be in listen-only mode until the question and answer session begins. If you’d like to ask a question, you may raise your hand at any time by clicking on the Raise Hand button, which can be found on the black bar at the bottom of your screen. As a reminder, this conference call is being recorded. I would now like to turn the call over to Kyle Nagarkar, Investor Relations.

Kyle Nagarkar, Investor Relations, Innventure: Thanks, operator, Thank you all for joining us for Innventure’s first quarter 2026 earnings call. My name is Kyle Nagarkar with Investor Relations, and joining me from the company are Bill Haskell, Chief Executive Officer, Roland Austrup, Chief Growth Officer, and Dave Yablunosky, Chief Financial Officer. Earlier today, we issued a press release announcing our financial results, which is available on our investor relations website, along with a supplemental slide presentation. As referenced on slide 6, we will be discussing non-GAAP financial measures during this call. The most directly comparable GAAP financial measures and a reconciliation of the differences between the GAAP and non-GAAP financial measures are available in our earnings release and supplemental slide presentation on our website. In addition, certain statements being made today are forward-looking statements that are based on management’s current assumptions, beliefs, and expectations concerning future events impacting the company.

These forward-looking statements involve a number of uncertainties and risks, including, but not limited to, those described in our earnings release, Form 10-Q for the period ending March 31st, 2026, and other filings with the SEC. The actual results of operations and financial condition of the company could differ materially from those expressed or implied in our forward-looking statements. Now I’d like to turn the call over to Bill. Bill?

Bill Haskell, Chief Executive Officer, Innventure: Thanks, Kyle, and good afternoon, everyone. Before I start, I want to acknowledge the operating company CEO call that we hosted a couple of weeks ago. That call was designed as a way for investors to hear directly from the CEOs of Accelsius, AeroFlexx, and Refinity. The call provided unique insight into what’s happening inside each business from the executives that are living it every day: the execution, the product cadence, and what the next milestones look like. We’d encourage anyone who wasn’t able to join us to listen to the replay available on our investor website. Because we were limited in time for Q&A on the CEO call, we were also posting a supplemental Q&A to our investor site to address additional questions that we did not get to respond to on that call.

While we can’t always address every question in real time, we are committed to providing meaningful transparency where it strengthens investor understanding without compromising the competitive position and technical advantages that high-growth disruptive businesses must preserve during their most formative stages. Given the recency of that CEO update, I’d like to use today’s call to double-click on recent developments outside of our core operations before passing it to Roland and Dave. Let me start with corporate governance, which we view as especially important for a multi-entity operating model like Innventure. Over the past several weeks, we’ve taken concrete steps to continue to strengthen our board. We announced the appointment of John Hewitt and the nomination of Catriona Fallon as part of our continued refresh and upgrade of Innventure’s governance structure.

These are seasoned operators, people who have built, scaled, and managed complex businesses, exactly the kind of directors that can provide valuable contributions to a business model like Innventure’s. We have always viewed the deep expertise of our people as a key competitive advantage, and this philosophy extends to how we approach our governance structure. These recent additions underscore that importance. The other notable update is on our shareholder engagement. It is important to know that our actions around corporate governance did not happen in a vacuum. We’ve had extended dialogue with a diverse set of shareholders, and that engagement helped inform how we think about board composition and the capabilities we want at the table. As a case in point, earlier this month, Ascend Capital Partners, one of our largest and most engaged shareholders, publicly expressed support for Innventure’s leadership and direction in an SEC filing.

We view the firm’s letter as a constructive signal that shareholder engagement is working as intended. Shareholders leaning in, the company responding thoughtfully, and governance evolving in a way that strengthens the enterprise. We look forward to continued engagement with our shareholders as we work to unlock the long-term value of Innventure’s model. With that, I’ll turn the call over to Roland, who will share his perspective on where Innventure is in its evolution and what we are seeing across the operating companies.

Roland Austrup, Chief Growth Officer, Innventure: Thanks, Bill. Across our operating companies, we’re seeing the same pattern that has defined every major shift in high-performance compute, AI infrastructure, and next-generation compute. Customers validate, integrate, and align procurement and operational workflows before scaling. We believe that progression, not early revenue patterns, is the real indicator of where the market is heading and is the precursor to rapid adoption. Once the industry reaches consensus, adoption moves in step functions. You can see this in the early histories of Arista, Pure Storage, Nutanix, and Supermicro. Periods of modest revenue followed by 5, 10, even 20x expansion once the market tipped. Nvidia and AMD followed the same path as GPU-accelerated compute moved from evaluation to necessity. Transformative technologies scale suddenly, not linearly. That’s the context of our Q1.

Revenue grew from $0.2 million last year to $1.4 million this quarter, but the more important signal is the progression underneath it. Customers continuing to buy, test, and integrate the technology. Combined with more than $50 million in Q1 bookings, the pattern is clear. Customers are updating protocols and preparing for scale. Market signals reinforce this. CoolIT was acquired for nearly $5 billion, underscoring the value being placed on liquid cooling today. If 1-phase solutions are valued at that level, the value of 2-phase, the end state for high-density compute, will, in our opinion, be even greater. Accelsius is in an important pre-inflection phase today. The pipeline is large, the technology is validated, customers are updating protocols, and the industry is converging on the same set of thermal and power constraints.

This is the kind of setup that historically precedes exponential adoption, and this is what I want to walk you through next, continuing with Accelsius. The industry backdrop for Accelsius continues to strengthen. In Q1, AI and high-performance compute workloads drove another step change in rack-level power and thermal density, with NVIDIA’s Blackwell generation accelerators pushing beyond the limits of air cooling and prompting OEMs and integrators to introduce new liquid-ready and two-phase compatible platforms across their AI