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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2025
Income Tax Disclosure [Abstract] |
Schedule of Provision for Income Before Taxes | The provision for income before taxes was as follows (in thousands):
| Successor |  | Predecessor
| Year Ended December 31, 2025 |  | October 2, 2024 through December 31, 2024 |  | January 1, 2024 through October 1, 2024
United States | $ | (488,148) |  |  | $ | (73,375) |  |  | $ | (27,766) |
Foreign 1 | (685) |  |  | — |  |  | — |
Total | $ | (488,833) |  |  | $ | (73,375) |  |  | (27,766) |
1 The Company adopted ASU 2023-09 on a prospective basis, and as a result for the year ended December 31, 2025, foreign income is presented on the country of domicile which results in Innventure, Inc’s income before taxes included. For the periods ended December 31, 2024 and October 1,2024, Innventure, Inc’s income was included in the United States based on the country of tax jurisdiction.
Schedule of Provision for Income Taxes | The provision for income taxes was as follows:
| Successor |  | Successor |  | Predecessor
| Year Ended December 31, 2025 |  | October 2, 2024 through December 31, 2024 |  | January 1, 2024 through October 1, 2024
Current Expense: |  |  |  |  |
State | 23 |  |  | 18 |  |  | — |
Total Current Expense | 23 |  |  | 18 |  |  | — |
Deferred Expense: |  |  |  |  |
Federal | (13,648) |  |  | (3,300) |  |  | 432 |
State | 142 |  |  | — |  |  | — |
Total Deferred Expense | (13,506) |  |  | (3,300) |  |  | 432 |
Total Expense: | $ | (13,483) |  |  | $ | (3,282) |  |  | $ | 432 |
Schedule of Reconciliation of the Income Tax Provision | Beginning with the year ended December 31, 2025, the Company has adopted ASU 2023-09 and, as a result, the reconciliation of income tax expense has been updated on a prospective basis. The Company did not pay income taxes net of refunds during the year ended December 31, 2025. As no income taxes were paid, disaggregation by federal, state, or foreign jurisdiction was not applicable for the period presented. The income tax benefit reflected in the Consolidated Statements of Operations differs from the tax computed by applying the statutory U.S. federal rate of 21% to "Income tax expense (Benefit)" was as follows:
| Successor |  |  |
| December 31, 2025 |  |  |
| In thousands (except percentages) |  |  |
Income taxes at federal statutory rate | (102,655) |  | 21.0 | % |  |  |
State taxes, net of federal benefit 2 | (145) |  | — | % |  |  |
Warrant liability | (1,379) |  | 0.3 | % |  |  |
Non-deductible expenses | 34 |  | — | % |  |  |
Change in earnout fair value | (2,098) |  | 0.4 | % |  |  |
Other permanent differences | 7,224 |  | (1.5) | % |  |  |
Change in valuation allowance | 11,618 |  | (2.4) | % |  |  |
Goodwill impairment | 72,777 |  | (14.9) | % |  |  |
Officer’s compensation | 1,141 |  | (0.2) | % |  |  |
Total provision (benefit) for income taxes | $ | (13,483) |  | 2.7 | % |  |  |
2 Arizona, Florida, New York, Oklahoma, and Virginia represent majority of the tax effect in this category. |  |  |
For the successor period October 2, 2024 through December 31, 2024 and the predecessor period January 1, 2024 through October 1, 2024, income tax expense reflected in the Consolidated Statements of Operations differs from the tax computed by applying the statutory U.S. federal rate of 21% to "Income tax expense (benefit)" was as follows:
|  |  | Successor |  | Predecessor
|  |  | October 2, 2024 through December 31, 2024 |  | January 1, 2024 through October 1, 2024
Income taxes at federal statutory rate |  |  | (15,405) |  |  | 21.0 | % |  | — |  |  | — | %
State taxes, net of federal benefit |  |  | (1,801) |  |  | 2.5 | % |  | — |  |  | — | %
Tax on pre-tax earnings of corporate subsidiaries |  |  | — |  |  | — | % |  | (3,022) |  |  | 10.9 | %
Warrant liability |  |  | 3,685 |  |  | (5.0) | % |  | — |  |  | — | %
Non-deductible expenses |  |  | 6 |  |  | — | % |  | 6 |  |  | — | %
Change in earnout fair value |  |  | (714) |  |  | 1.0 | % |  | — |  |  | — | %
Other permanent differences |  |  | (423) |  |  | 0.6 | % |  | — |  |  | — | %
Change in valuation allowance |  |  | 11,664 |  |  | (15.9) | % |  | 3,448 |  |  | (12.4) | %
R&D credit |  |  | (294) |  |  | 0.4 | % |  | — |  |  | — |
Total provision (benefit) for income taxes |  |  | $ | (3,282) |  |  | 4.6 | % |  | $ | 432 |  |  | (1.5) | %
Schedule of Deferred Tax Assets and Liabilities | Significant components of deferred tax assets and liabilities as of December 31, 2025 and 2024 are as follows:
| December 31, 2025 |  | December 31, 2024
Deferred Tax Assets: |  |  |
Deferred lease liabilities | $ | 262 |  |  | $ | 138 |
Reserves and other accruals | 8,991 |  |  | 4,873 |
Capitalized R&D expense | 3,740 |  |  | 2,562 |
Fixed assets and intangibles | 2,830 |  |  | 3,113 |
Unrealized Gain/Loss | 1,945 |  |  | — |
Loss carry-forwards and other tax attributes | 29,753 |  |  | 15,682 |
Total Deferred Tax Assets | 47,521 |  |  | 26,368 |
Less: Valuation allowance | (23,130) |  |  | (11,664) |
Net Deferred Tax Assets | $ | 24,391 |  |  | $ | 14,704 |
Deferred Tax Liabilities: |  |  |
Amortization | $ | (34,213) |  |  | $ | (38,443) |
Investment in Partnerships | (3,982) |  |  | (3,505) |
Right of use assets | (44) |  |  | (109) |
Total Deferred Tax Liabilities | (38,239) |  |  | (42,057) |
Net Deferred Tax Liabilities | $ | (13,848) |  |  | $ | (27,353) |

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