InVenture (INV) Q3 2025: Excelsius Pipeline Surges 79% as Production Orders Accelerate
Excelsius, InVenture’s data center cooling subsidiary, recorded a 79% sequential jump in pipeline, now exceeding $1 billion, with a decisive shift toward production-scale orders for 2026. The company’s value creation model is gaining validation as Excelsius secures a $25 million strategic investment from Johnson Controls and Aeroflex expands its branded partnerships and industry recognition. Despite limited early-stage revenue, InVenture’s disciplined capital allocation and diversified innovation engine are positioning it for tangible long-term asset growth.
Summary
- Excelsius Pipeline Shift: Over three quarters of Excelsius’ $1B+ pipeline now targets large-scale production deployments.
- Capital Structure Reinforced: Johnson Controls’ $25M investment and new financings provide runway for scaling and growth initiatives.
- Value Model in Focus: InVenture’s platform approach is translating innovation into asset growth, despite early-stage revenue constraints.
Performance Analysis
InVenture’s Q3 2025 results underscore a business in transition from proof-of-concept to production across its portfolio, particularly at Excelsius, where the opportunity pipeline expanded 79% quarter over quarter to surpass $1 billion. Notably, over 75% of this pipeline now represents production opportunities for 2026, signaling a definitive move beyond pilot projects and a broadening customer base that spans hyperscalers, OEMs (original equipment manufacturers), and collocation providers. Q3 order bookings at Excelsius exceeded those of all previous quarters combined, reflecting robust commercial traction and growing industry validation.
Revenue remained modest at $0.5 million, reflecting the early stage of commercialization, but disciplined cost control was evident as G&A expenses declined sequentially for the second quarter. The net loss was $34.7 million, with adjusted EBITDA loss at $17.5 million. Liquidity improved with cash rising to $14.1 million, supported by a mix of convertible debenture issuance and a $9.8 million private placement. The capital raise and the $25 million Excelsius investment from Johnson Controls signal both external confidence and increased financial flexibility for scaling operations.
- Pipeline Momentum Drives Visibility: Excelsius’ bookings and pipeline growth provide forward visibility and validate the technology’s market fit.
- Operational Leverage Emerging: Cost discipline and manufacturing expansion support the transition to higher-volume deployments.
- Portfolio Diversification: Aeroflex and Raffinity progress on commercialization, with Aeroflex winning industry awards and expanding its customer network.
While near-term losses persist, the underlying asset growth and operational inflection at Excelsius provide a clear roadmap to value realization as deployments scale in 2026 and beyond.
Executive Commentary
"Our opportunity pipeline for Excelsius grew an impressive 79% quarter over quarter, now exceeding $1 billion. This opportunity is hard to overstate and is a testament to Excelsius' cutting-edge technology and market leading position within two-phase direct-to-chip liquid cooling."
Bill Haskell, Chief Executive Officer
"For the third quarter, InVenture reported revenue of $0.5 million, resulting from proof-of-concept sales at Excelsius. While early-stage revenue growth has taken longer than expected, we continue to see momentum building in our operating companies, particularly at Excelsius, as evident in Bill's remarks."
Dave Yablonowski, Chief Financial Officer
Strategic Positioning
1. Excelsius: From Proof-of-Concept to Production Scale
Excelsius, InVenture’s flagship in data center cooling, is experiencing a clear inflection as its pipeline shifts decisively toward production-scale opportunities. Over 75% of the $1B+ pipeline is now production-focused, with bookings in Q3 exceeding all previous quarters combined. The company’s technology—two-phase direct-to-chip liquid cooling—addresses the growing need for efficient, high-density data center thermal management, and is gaining traction across a broad base of customers, not just hyperscalers. Recent product launches (MR250 solution) and a new Austin manufacturing facility reinforce Excelsius’ readiness for volume deployments.
2. Aeroflex: Diversified Sustainable Packaging Growth
Aeroflex continues to build on its position as a multi-category sustainable packaging innovator, expanding revenue recognition across pet, baby, industrial, personal care, and household categories. The business is leveraging branded partnerships, such as its new launch with Elio Brands, and has received multiple industry awards for packaging innovation and quality. Operational excellence is validated by a fifth consecutive perfect BRC audit, a key credential in food-grade packaging.
3. Raffinity: Early-Stage Commercialization of Circular Plastics
Raffinity, InVenture’s plastics recycling technology platform, achieved successful pilot-scale demonstrations of its fluidized bed conversion process and is progressing toward a mid-scale demonstration plant in 2026. The company is on track with its commercialization milestones, aiming for full-scale deployments in the coming years, and is aligning with engineering and equipment partners to accelerate scale-up.
4. Platform Model Validated by Capital Formation
InVenture’s disciplined model—pairing transformative technology with capital and operational expertise—continues to deliver asset value growth, as evidenced by Excelsius’ momentum, Aeroflex’s diversification, and strategic investment from Johnson Controls. The company’s ability to attract external capital and partners supports its long-term scaling ambitions.
Key Considerations
InVenture’s Q3 demonstrates a business model built for inflection points, with Excelsius transitioning to production scale, Aeroflex expanding its reach, and Raffinity progressing toward commercial validation. Investors should weigh the following:
Key Considerations:
- Production-Weighted Pipeline: The shift from proof-of-concept to production at Excelsius increases the likelihood of revenue conversion in 2026.
- Granular Customer Base: Excelsius’ pipeline is highly diversified, reducing reliance on any single hyperscaler and broadening market exposure.
- Capital Flexibility: Recent financings and the Johnson Controls investment provide runway for scaling, but ongoing losses mean future capital needs should be monitored.
- Asset Value vs. Share Price: Management argues that the current share price undervalues the company’s underlying net assets and operating company momentum.
Risks
InVenture remains exposed to execution risk as its operating companies scale from pilot to production, particularly at Excelsius where timing of order conversion and delivery cycles could impact near-term revenue realization. Ongoing losses and the need for continued capital raises introduce dilution risk. Competitive pressure in data center cooling and sustainable packaging, as well as customer adoption cycles, present additional uncertainty. The company’s ability to translate its pipeline into profitable growth remains the central challenge for investors.
Forward Outlook
For Q4 and into 2026, InVenture expects:
- Excelsius to maintain strong bookings momentum, with a majority of the pipeline converting to production orders.
- Continued expansion of Aeroflex’s customer base and category reach.
- Progression of Raffinity toward its mid-scale demonstration and engineering milestones.
Management reiterated its confidence in meeting or exceeding prior booking and revenue projections for Excelsius, with no change to prior forecasts. Key drivers include robust pipeline growth, expanding manufacturing capacity, and new product launches.
- Visibility into production-scale deployments is improving.
- No material supply chain or regulatory barriers anticipated for Excelsius scale-up.
Takeaways
InVenture’s Q3 signals a pivotal transition from early-stage proof to production-led scaling, with Excelsius at the center of the company’s value creation narrative.
- Excelsius Inflection: Pipeline growth and conversion to production orders underpin the company’s long-term revenue potential.
- Platform Validation: Strategic investment and diversified portfolio progress demonstrate the scalability of InVenture’s operating model.
- Execution Watch: Investors should monitor order conversion rates, capital needs, and the pace of commercialization across all operating companies.
Conclusion
InVenture’s third quarter marks a decisive shift toward production-scale execution, with Excelsius’ technology and pipeline momentum positioning the company for asset value realization. While financial results remain early-stage, the operational and strategic signals point to a business on the cusp of meaningful commercial scale.
Industry Read-Through
InVenture’s results highlight surging demand for advanced data center cooling solutions, with two-phase direct-to-chip technology gaining traction among both hyperscalers and smaller operators. The company’s experience underscores the importance of early supply chain planning and diversified customer engagement as the sector transitions to higher-density, energy-efficient infrastructure. For the sustainable packaging and circular plastics sectors, Aeroflex and Raffinity’s progress reflect accelerating customer adoption and regulatory tailwinds, signaling that innovation and operational excellence are increasingly rewarded with both customer wins and industry recognition. Investors in adjacent sectors should note the value of platform models that can scale multiple disruptive technologies under disciplined capital allocation.