Innventure (NASDAQ:INV) is cutting costs and weighing asset sales and debt restructuring as it works to address near-term liquidity needs, executives said on the company’s third-quarter earnings call.
CEO Bill Grieco said Innventure has suspended development of new companies and is concentrating resources on preserving the value of its existing businesses, particularly its interest in data-center cooling company Accelsius. The company has reduced its staff to 15 from 40 earlier this year and expects a 56% reduction in payroll costs once current severance costs end in early 2027.
Innventure has formed a strategic review committee and hired RBC Capital Markets as an independent financial adviser. Options under consideration range from restructuring or potentially eliminating debt to selling part or all of Innventure’s stake in one or more operating companies, Grieco said. No timetable has been set, and no decisions have been made.
Liquidity and capital raising
Innventure ended the third quarter with $26.95 million in consolidated cash and restricted cash, down from $46.54 million at the end of the second quarter. CFO Eric Stober said most of that cash was held at Accelsius.
Asked for the amount of cash at the parent company, Grieco declined to provide a figure, describing the situation as fluid and saying there was “a level of immediacy” to its liquidity needs.
Stober said Innventure is targeting approximately $3.2 million in quarterly parent-level cash expenses, excluding debt service, severance, litigation and certain other nonrecurring costs. Grieco said the company expects to reach that rate at the beginning of the first quarter of 2027 and is seeking further savings.
The company established an at-the-market equity program in October with capacity to sell up to $60 million in shares. From October 7 through November 10, it sold approximately 17.94 million shares at a volume-weighted average price of $0.313, raising $5.45 million in net proceeds for short-term parent-company liquidity needs, Stober said.
Stober said Innventure would use the program selectively, taking dilution into account, and that it was not intended to raise money at the parent level for investment in Accelsius. Accelsius is pursuing its own funding, Grieco said.
Quarterly loss and listing notice
Third-quarter revenue rose to $1.48 million from $0.53 million a year earlier and $0.95 million in the second quarter. General and administrative expenses fell to $12.84 million from $16.93 million a year earlier, as lower compensation and other savings were partly offset by higher legal fees.
Innventure reported a net loss of $333.84 million, including a $323.46 million noncash goodwill impairment related largely to Accelsius. Excluding the impairment, the loss would have been $10.38 million, Stober said.
The CFO said the decline in Innventure’s stock price triggered an interim test of goodwill that required the write-down. He said the charge did not affect cash, liquidity or Accelsius’s operations, and that identified intangible assets tied to Accelsius’s technology were not impaired.
Innventure also received a Nasdaq notice on October 23 after its shares closed below the $1 minimum bid price for 30 consecutive trading days. The company has until April 21, 2027, to regain compliance, generally by maintaining a closing bid of at least $1 for 10 consecutive business days. Stober said Innventure is evaluating options including a reverse stock split, which would require shareholder approval.
Operating company updates
Grieco said Accelsius is working under contract with one major chip manufacturer and in discussions with two others. It is also conducting technical validation with a major server manufacturer and has signed a paid statement of work with one hyperscaler to design a potential proof-of-concept deployment. The companies were not named, with Grieco citing confidentiality and collaboration agreements.
Innventure will no longer provide ongoing funding to packaging company AeroFlexx, whose leadership is seeking independent financing, Grieco said. Refinity is also seeking outside funding after cutting half its staff and slowing design work on its first commercial demonstration facility. Innventure is exploring strategic alternatives for both businesses.
About Innventure (NASDAQ:INV)
Innventure Inc. (NASDAQ: INV) is a technology commercialization company that identifies promising innovations and helps develop them into standalone businesses. The company works with corporate, university and other research partners to evaluate technologies, build business plans and establish companies intended to bring those innovations to market. Innventure provides services across the commercialization process, including technology assessment, product development, intellectual-property strategy, business formation, fundraising and operational support.
