Accelsius, an offshoot of Innventure (INV, Financial), has been chosen to collaborate on a significant U.S. Department of Energy initiative, led by Professor Dereje Agonafer from The University of Texas at Arlington. This project, titled "Holistic Co-Design of Novel Hybrid Cooling Technology for the Data Center of the Future," aims to create an advanced cooling system that integrates direct-to-chip evaporative techniques with air-based solutions like rear door heat exchangers.
Accelsius will play a vital role by supplying its unique MR250, a cutting-edge multi-rack, in-row, 250kW two-phase Coolant Distribution Unit. This technology will be pivotal in the project's system-level testing at the university's facility, with the MR250 expected to be widely available by late 2025. This collaboration underscores a significant step forward in developing innovative cooling architectures for future data centers.
INV Key Business Developments
Release Date: May 15, 2025
- Revenue: $0.2 million from management fees.
- G&A Expenses: Approximately $20 million, including $5 million in non-cash equity-based compensation and $6 million in professional service fees.
- Non-Cash Goodwill Adjustment: $233 million write-down due to share price and market capitalization decrease.
- Adjusted EBITDA: Loss of $21.8 million after non-cash adjustments.
- Inventory: Approximately $5.2 million, steady from the prior quarter.
- Goodwill: Approximately $437 million as of March 31.
- Cash Raised: $27 million added to the balance sheet from convertible debentures and Series C preferred stock.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Innventure Inc (INV, Financial) is positioned to capitalize on the rapidly growing data center liquid cooling market, which is expected to reach $5 billion by 2028.
- Accelsius, a key venture of Innventure Inc (INV), offers a superior two-phase direct-to-chip cooling technology that provides significant efficiency and safety advantages over traditional cooling methods.
- The company has established strong partnerships with major players in the data center ecosystem, including hyperscalers, OEMs, and global resellers, enhancing its market reach.
- Accelsius has seen a notable increase in lead generation and strategic partner network growth, indicating strong market interest and potential for revenue growth.
- Innventure Inc (INV) has a proactive supply chain strategy and partnerships with contract manufacturers to meet anticipated large-scale demand efficiently.
Negative Points
- Innventure Inc (INV) reported a significant non-cash goodwill adjustment of $233 million due to a decrease in share price and market capitalization.
- The company experienced a loss of approximately $248 million in EBITDA for the quarter, highlighting ongoing financial challenges.
- Revenue for the first quarter was only $0.2 million, indicating limited income generation at this stage.
- There is uncertainty regarding the timing and scale of revenue growth, as the company is not providing forward-looking revenue guidance.
- The company relies heavily on outside professional services, which may impact long-term cost management and operational efficiency.
