Innventure (INV) Q3 2024 earnings summary

Executive summary

• Completed a business combination with Learn CW Investment Corporation, resulting in a public listing on Nasdaq in October 2024.

• Focuses on founding, funding, and operating companies with transformative technology sourced from multinational corporations, leveraging a risk-mitigated business model.

• Three companies launched: PureCycle (no current economic interest), AeroFlexx (31% ownership, equity method), and Accelsius (55% ownership, consolidated), both delivering commercial products.

• Recent business combination and capital raises have strengthened the balance sheet and positioned the company for future growth.

• Robust pipeline of MNC relationships, with two active partners and several more providing opportunities.

Financial highlights

• Accelsius began generating revenue within 30 months of founding, delivering its first revenue-generating system in Q3 2024.

• AeroFlexx began delivering product in late October, with expectations for products in the marketplace in 2025 and capacity for millions of packages annually.

• Total revenue for Q3 2024 was $764,000; nine-month revenue was $2.8 million, up from $2.6 million year-over-year.

• Net loss attributable to unitholders for the nine months was $14.7M, with operating expenses rising to $36.3M.

• Cash and equivalents at September 30, 2024 were $16.3M, up from $2.6M at year-end 2023.

Outlook and guidance

• Management expects continued revenue growth and margin expansion as companies scale, with plans to report revenue, Adjusted EBITDA, and cash flow as operations mature.

• Accelsius and AeroFlexx anticipate commercial orders and product availability in 2025, following recent certifications and product redesign.

• Management expects to require approximately $25M in liquidity for the 12 months following the business combination, with funding from cash on hand, SEPA, WTI Facility, and additional financings.

• Substantial doubt exists about the ability to continue as a going concern without additional capital.

• Pipeline of new company opportunities is growing in quality, with strict criteria for new company formation.