Innventure — Third Quarter 2026 Earnings Summary

Financial Performance:

• Revenue for the three months ended September 30, 2026, was $1.481 million, compared to $534,000 in the same period of 2025.
• Revenue for the nine months ended September 30, 2026, was $3.877 million, compared to $1.234 million in the same period of 2025.
• Net loss for the three months ended September 30, 2026, was $333.838 million, compared to $34.735 million in the prior year period.
• Net loss for the nine months ended September 30, 2026, was $396.535 million, compared to $429.684 million in the prior year period.
• Loss per share (basic and diluted) for the three months ended September 30, 2026, was $2.39, compared to $0.51 in the prior year period.
• Loss per share (basic and diluted) for the nine months ended September 30, 2026, was $3.05, compared to $4.96 in the prior year period.
• Goodwill impairment of $323.463 million was recorded for both the three and nine months ended September 30, 2026.
• Adjusted EBITDA for the three months ended September 30, 2026, was $(18.828) million, compared to $(17.465) million in the prior year period.
• Adjusted EBITDA for the nine months ended September 30, 2026, was $(59.820) million, compared to $(55.466) million in the prior year period.
• Cash and cash equivalents were $21.952 million as of September 30, 2026, down from $60.449 million as of December 31, 2025.
• Total assets were $230.711 million as of September 30, 2026, down from $599.187 million as of December 31, 2025.
• Total liabilities were $74.442 million as of September 30, 2026, down from $115.511 million as of December 31, 2025.
• Net cash used in operating activities for the nine months ended September 30, 2026, was $74.525 million, compared to $56.328 million in the prior year period.
• Net cash provided by financing activities for the nine months ended September 30, 2026, was $40.368 million, compared to $63.349 million in the prior year period.
• Proceeds from issuance of equity, net of issuance costs, were $51.819 million for the nine months ended September 30, 2026.

Business Segments and Product Lines:

• Management is transitioning AeroFlexx and Refinity away from reliance on Innventure capital while evaluating strategic alternatives for both businesses.
• The company is concentrating resources on preserving and maximizing the value of its interest in Accelsius.
• Parent-level costs have been substantially reduced, including a headcount reduction from 40 to 15 since the end of the first quarter.

Risks and Challenges:

• There is a risk that AeroFlexx or Refinity may be required to wind up or cease operations if additional funding is unavailable or cannot be obtained on acceptable terms.
• There is a risk that one or both of AeroFlexx or Refinity may be unable to continue as a going concern if additional funding is not obtained.
• Potential goodwill, intangible asset, and other asset impairment charges, write-offs of intercompany advances, and other costs and liabilities are associated with any wind-down or cessation of operations.
• Risks include the ability to identify and execute on alternatives to strengthen the financial position and secure financing on acceptable terms.
• Risks include potential dilution resulting from future financings at Innventure or its subsidiaries.
• The company faces risks related to recent shareholder litigation.

Management Commentary and Tone:

• CEO Bill Grieco stated the company is transforming into a "leaner, more focused organization" to drive shareholder value.
• Management expressed confidence in the underlying opportunity at Accelsius and believes the transformation is an important step toward translating that opportunity into value.
• The Strategic Review Committee, together with financial advisors, is evaluating capital strategies to strengthen the financial position and address near-term liquidity needs in a disciplined manner.

Other Key Points:

• The company announced a conference call and webcast scheduled for November 12, 2026, at 5:00 pm ET to discuss the results.
• The company recognized a $323.463 million goodwill impairment charge, resulting in the elimination of goodwill from the balance sheet (dropping from $323.463 million to $0).
• The change in fair value of financial liabilities resulted in a gain of $20.834 million for the three months ended September 30, 2026, and $18.709 million for the nine months ended September 30, 2026.
• The company repaid Convertible Debentures during the nine months ended September 30, 2026, resulting in a $1.0 million loss on extinguishment of debt.
• Stock-based compensation was $5.306 million for the three months ended September 30, 2026, and $15.615 million for the nine months ended September 30, 2026.