Innventure, Inc. (NASDAQ: INV) issued a letter to shareholders outlining a series of cost reduction measures and strategic changes following its second quarter 2026 results, according to a press release from the company.

The company said it will cut quarterly cash expenses at the parent level from $7.5 million to $4.5 million, excluding debt service. The reductions include eliminating spending on new company formation initiatives and ending all research and development expenditures at the parent level.

Innventure said it is pursuing strategic monetization alternatives for its AeroFlexx subsidiary and is seeking outside capital to fund AeroFlexx in the interim. Financial advisors have been engaged to assist with that process.

The company also said its Refinity subsidiary will no longer be funded from the Innventure balance sheet after the end of the third quarter of 2026, transitioning to independent funding.

The board said it is exploring financing alternatives at the parent level, including potential debt and equity offerings and asset monetization, with the stated goal of minimizing shareholder dilution.

In a separate action, the board directed senior management and directors to forfeit earnout shares that had been issued based on an Accelsius purchase order from DarkNX. The board said the shares were originally issued in accordance with contractual obligations established in 2023 but that forfeiture was appropriate following the subsequent removal of the DarkNX booking that had satisfied the milestone. The individuals agreed to the forfeiture.

Regarding Accelsius, the board stated it believes the subsidiary is positioned to participate in the two-phase direct-to-chip liquid cooling market, which it said is expected to grow from approximately $500 million in 2027 to approximately $3.8 billion in 2029, based on market estimates.