Innventure (NASDAQ:INV) shares fell 9% on Thursday following a disclosure from short seller Morpheus that it has taken a short position and questions the veracity of a central deal in the company's Accelsius portfolio.
Innventure defines itself as a technology commercialization firm that licenses undeveloped technologies from multinational corporations and creates operating companies around those assets. One of the company's key holdings is Accelsius, a liquid cooling business built on intellectual property sourced from Nokia.
At the center of Morpheus' critique is a deal Accelsius announced in November with DarkNX, a Canadian entity. The agreement was described as a deployment of liquid cooling technology across a 300MW AI data-center campus in Ontario. Innventure management has stated that the arrangement would scale to a $100 million annualized revenue run rate and produce positive cashflow by the end of 2026.
Morpheus reported that it could find no evidence the project exists or that DarkNX has the personnel or financing to complete such a deployment. Citing Ontario corporate records, the short seller said DarkNX was incorporated 12 months prior to the public announcement and appears to operate from a single-family home in a Toronto suburb.
The short-seller firm also said it reached out to three companies listed as partners on DarkNX's website - Dell, Schneider Electric, and Supermicro. According to Morpheus, Dell informed them DarkNX is not part of Dell's formal partner program. Schneider Electric reportedly told Morpheus its teams were not aware of any partnership or working relationship. Supermicro said it does not have a direct relationship with DarkNX.
Accelsius reported roughly $1.5 million in revenue in 2025, primarily from demonstration units. Market bulls have attributed a large portion of Innventure's valuation to Accelsius; roughly 75% or more of the company's approximately $538 million market value is viewed as tied to that business.
Morpheus additionally criticized Innventure's executive compensation, noting that executives Bill Haskell, Mike Otworth, and John Scott received $31.2 million in combined compensation in 2024 and 2025, while the company reported $3.2 million in revenue and $371 million in net losses over the same period.
Context and next steps
The allegations from Morpheus raise questions about a revenue-driving agreement that management has used to project material improvement in cashflow and scale for Accelsius. Innventure shareholders and market participants will likely seek further clarity from the company on the status of the DarkNX engagement, partner confirmations, and the path to the revenue and cashflow milestones cited by management.