Thanks, operator, and 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 ended March 31, 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. And now I'd like to turn the call over to Bill. Bill?

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. And 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 5x, 10x, 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 single-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 2-phase compatible platforms across their AI server portfolios.

That shift is showing up directly in the earnings of the largest data center infrastructure providers. Johnson Controls reported nearly 40% order growth led by data center demand. Legrand reported roughly 30% year-over-year growth in its data center segment, and Vertiv has publicly highlighted continued strong demand for high-density thermal systems driven by AI deployments. Together, these disclosures reinforce what we are seeing across hyperscalers, colocation providers and server manufacturers.

Next-generation architectures are being engineered for environments where advanced liquid and 2-phase cooling are no longer optional, but foundational. Against this backdrop, Accelsius continues to advance as one of the few companies delivering true 2-phase direct-to-chip capability at rack-scale. Q1 marked a pivotal stretch of commercial and product momentum for Accelsius. In February, Legrand announced a strategic partnership with Accelsius following its participation in the company's Series B funding round, framing the relationship as a pillar of its unified data center strategy.

The 2 companies indicated they would collaborate on joint development initiatives, including the integration of 2-phase direct-to-chip liquid cooling into rack infrastructure. That announcement set the stage for Accelsius' NVIDIA GTC debut in March, where the company unveiled the NeuCool IR150 built as the industry's first integrated rack-level 2-phase liquid cooling solution. The IR150 combines a 2-phase CDU, 42U of IT rack space and built-in liquid and vapor manifolds in a single 800-millimeter enclosure, delivering up to 150 kilowatts of capacity with a plug-and-play form factor purpose-built for enterprise, high-frequency trading and other high-density deployments where simplified installation, single rack failure domains and 0 water in the rack are differentiating.

Taken together with the Legrand partnership, the quarter reflects continued momentum behind the 2-phase conversation. Moving on to AeroFlexx. The packaging industry doesn't usually move in straight lines. You get long stretches of incremental change and then something solves a real structural problem and adoption shifts fast. We believe AeroFlexx is at that point. It combines the best of flexible and rigid into something better than either, better for the consumer, less plastic, simpler supply chain, lower shipping costs.

Once validation clears, adoption moves in step functions from here. And that's what we're seeing. Anchor customers across prestige beauty, household, personal care, industrial and food and beverage are all advancing -- reorders, launch prep, late-stage negotiations. The commercial pipeline has expanded to $32 million, up 21% since January, with $13.2 million now in final negotiation, up 40%. That growth reflects meaningful stage progression across multiple anchors.

When you see both pipeline expansion and late-stage advancement happening simultaneously, that's a format taking hold. Aveda has also become a major market catalyst. Since the announcement of the global commercial launch, AeroFlexx has seen approximately $3.6 million of new and reactivated opportunities, a direct reflection of strengthened brand credibility in one of the most demanding categories in consumer products.

Prestige beauty is one of the hardest categories to win, so Aveda choosing AeroFlexx is a strong signal to the rest of the industry. Aveda is starting with refill packaging with select best-selling products debuting in 2027, but the long-term opportunity is dozens of SKUs across a global lineup. Initial purchase orders are already in to build inventory for launch. We've also expanded the manufacturing footprint. Through our partnership with Packaging Imolese in Italy, we picked up regional manufacturing, formulation and commercialization capability in household and personal care, 2 of the biggest categories in our total addressable market.

An AeroFlexx filling machine is installed at the Imolese facility now, and that site brings real R&D formulation and testing capability with it. That's the kind of expansion that supports scaling. Operational readiness keeps strengthening. BRCGS, GMP Ohio and ISCC PLUS certifications all reinforce our ability to run compliant, scalable programs across categories and geographies. On capital, our objective hasn't changed.

Operating company capital from strategic investors who can also become commercial partners. Looking ahead, the milestones are straightforward. Active programs converting to launches and reorders and anchor customers expanding across more products, more categories and more regions. That's how AeroFlexx builds durable commercial cadence and shows the format is taking hold across the broader packaging landscape. And just as AeroFlexx is reshaping packaging, Refinity is doing the same in advanced materials and circular feedstocks.

The chemical industry is experiencing the same adoption dynamic just discussed for AeroFlexx. Decades of incremental change and then regulatory pressure, decarbonization commitments and cost volatility all hit at once and the pace of evaluation picks up fast. Qualification and integration take time, but once the industry aligns, adoption moves quickly. Refinity is at an early stage of that journey, building the technical and commercial foundation that precedes industry adoption.

Detailed design on the 10-kiloton commercial demonstration plant is underway. We expect that engineering design should wrap up by the end of Q3 and more on offtake partners will come in the coming months. Refinity is working with a U.S. partner with existing fluidized bed assets for additional testing. By midyear, we expect the Refinity process will be running on those assets on the same mixed plastic waste feedstocks the 10-kiloton plant will use, which should give extended run time and meaningfully accelerate the validation process.

Recent multi-day pilot trials at VTT using market-sourced plastic waste produced light olefins, ethylene and propylene at yields meeting or exceeding targets. That reinforces the core thesis. Refinity can convert mixed plastic waste into cracker-ready light olefins with high yields and minimal char. The work with Dow continues on gas purity integration, how a co-located Refinity plant ties into existing steam cracker infrastructure.

That's the kind of integration work that has to happen before commercial adoption. The macro backdrop reinforces why this matters. The Iran situation and the constraints in the Strait of Hormuz are a reminder of why diversifying raw material pathways and commoditizing plastic waste are valuable, not as a headwind or a tailwind, but as another reason feedstock optionality is the right place to be. Refinity is in active discussions with key customers on offtake agreements for the 10-kiloton plant and is working with government agencies on nondilutive funding to support CapEx.

Long-term offtake and nondilutive funding together would position Refinity to project finance a substantial portion of the plant, a meaningful shift in how a first commercial facility gets funded. The signals to watch are straightforward: technical validation, integration work with Dow and commercial commitments from offtake partners. These are the milestones we expect will move Refinity from a promising technology to a bankable platform. 6 to 12 months ago, Refinity was proving the chemistry.

Today, it is progressing toward commercial scale and the building blocks of a financeable product. Stepping back, we believe that what we are seeing across our operating companies fits a much larger historical pattern. Every major technology wave from the industrial revolution to electrification to the semiconductor era to software to the Internet and cloud has created a small group of companies whose technologies become the infrastructure of the shift itself.

In each case, the long-term winners were the companies without which the new economy could not scale. Intel, Texas Instruments, Taiwan Semiconductor in the semiconductor space, Microsoft and Oracle in software, Cisco and Google and Amazon AWS in the Internet and cloud era. These companies didn't grow because of quarterly revenue. They grew because they were the backbone of a secular transformation, compounding 5x, 10x, even 20x over sustained multiyear periods.

We believe the convergence of AI, high-performance compute and next-generation compute is the next of these waves, the early stages of a fourth industrial revolution that will reshape productivity, discovery and global GDP potential. And in that context, we believe Accelsius is not simply transforming an industry, it is positioned at the point where this AI boom cannot scale without the technology it provides. While AeroFlexx and Refinity are aligned with major structural shifts in their own markets, we believe Accelsius sits at the center of a secular change that will touch virtually every sector.

That is why we focus on progression, validation and positioning because when these markets tip, they don't move gradually. They move all at once and the companies enabling the transition capture the long-term tailwind. And with that, I'll turn it over to Dave to cover the financials.

Thanks, Roland, and good afternoon, everyone. The financial results for the first quarter of 2026 were in line with expectations and consistent with the business progression we've been outlining. As Bill mentioned, our recent CEO call provided a deep dive into the commercial momentum at Accelsius, AeroFlexx and Refinity. We continue to believe this momentum will translate into strong revenue and adjusted EBITDA growth in the second half of this year and into 2027.

For the first quarter, Innventure reported consolidated revenue of $1.4 million, up from $0.2 million in the first quarter of 2025 and up from $0.8 million in the fourth quarter of last year. Revenue has grown sequentially every quarter since the beginning of 2025. Accelsius revenue in the first quarter was $1.3 million, the highest quarterly revenue since we began reporting in 2024. As we discussed last quarter, we continue to expect Accelsius to exit December 2026 with positive operating cash flow, implying a revenue run rate of approximately $100 million.

We are now seeing third-party validation at our operating companies, resulting in commercial bookings, operational scale and clear milestone achievement across the entire enterprise. Total G&A expenses for the quarter were $12.7 million, $7 million lower than the first quarter of 2025. Professional service fees in the first quarter were $3 million, down 51% from the $6.1 million in the first quarter of last year as we transitioned from outsourced professional services to in-house personnel at materially lower cost.

The increase from Q4 to Q1 reflects the annual reset of payroll tax and benefits. Net loss attributable to Innventure stockholders was $20.8 million for the quarter, the lowest since we became a public company. Adjusted EBITDA for the quarter was a loss of $18.4 million. Turning to the balance sheet. We ended the quarter with $60.4 million of cash and restricted cash, down $5.1 million from the end of last year. On the cash flow statement, you will see Innventure received $37.2 million net proceeds from the purchase and sale of common stock in a registered direct offering, paid down $7.4 million of debt, invested $0.8 million in PP&E at Accelsius, had a $16.4 million working capital use of cash and a $17.6 million of other cash OpEx, including G&A, sales and marketing and R&D costs.

As we previously noted, we believe Accelsius will exit December 2026 with positive operating cash flow. At the Innventure parent company and subsequent to the end of the quarter, we have selectively accessed our standby equity facility and raised approximately $11.9 million.

Dave, let me add some context on capital market strategy, because this is an area I personally oversee. We used the SEPA opportunistically during a period of share price strength. Executing above $6 per share limited dilution to roughly 2%. At those price levels, our projected annualized dilution rate remains under 10%, which is consistent with the disciplined capital formation philosophy we've been communicating in the past several months.

The purpose of this raise was simple, extend our runway in a way that avoids raising capital during periods of seasonal trading softness or geopolitical uncertainty. With the $60.4 million cash on hand that Dave mentioned, combined with the extension provided by this opportunistic raise, we do not anticipate the need to raise significant capital for the foreseeable future. While the SEPA continues to be available to Innventure, when we return to the market, our intent is to utilize more conventional tools available to an S-3 eligible issuer with a top-tier bank syndicate, including facilities that would allow us to opportunistically extend our position over time as well as the ability to execute larger transactions when market conditions and valuation are supportive.

Our objective is to further reduce dilution relative to the rate implied by this last opportunistic raise and to ensure that any future capital formation aligns with the disciplined approach we've communicated.

Thanks, Roland, for the additional context. We continue to carefully manage our capital structure to support the growth of Innventure's operating companies, maintain adequate liquidity at all levels of the company with the goal of minimizing future dilution to our shareholders. It's important to say the Innventure team remains focused on what we believe are very attractive growth opportunities ahead of us. Innventure, along with our operating companies are focused on the future, on where we are going with the goal of creating substantial value for our shareholders.

With that, we'll open up the call for questions.[ id="-1" name="Operator" /> [Operator Instructions] Our first question comes from Chip Moore with ROTH Capital Partners.

Yes. Thanks for the question. And I would sort of go back to some of Bill's comments and even Roland's comments that it's a little bit too early to tell exactly what our cash conversion cycle will be in DSO, DPO, DIO, those kind of metrics. But we can certainly talk about that as the year progresses. But I think at this point, it is just a little bit too early to project that.

Just wanted to ask you about the role of the channel partners and strategic integrators and how they play in scaling deployments and how important will partnerships become as these businesses grow?

No, I said channel partners like Johnson.

Right. And also relating to Accelsius here, as the deployments scale, could software monitoring or system optimization become part of the revenue mix? Like I'm trying to understand if there is room for recurring revenue to be possible later once the initial deliveries are made? Or is it just once a customer has been delivered the product, there's no more -- like unless they order more, there is no way to get revenue out of them.