NuScale Power Corp. 10-Q Summary: Q2 2025
Business Context and Reporting Period
This filing covers the quarterly period ended June 30, 2025. NuScale Power Corp. is commercializing a modular, scalable Small Modular Reactor (SMR) design known as the NuScale Power Module (NPM). A significant milestone occurred in May 2025 when the U.S. Nuclear Regulatory Commission (NRC) finalized its review and approved the Standard Design Approval (SDA) for the 6-unit 77 MWe NPM design, enabling customers to proceed with construction licensing. The company operates in a single segment focused on engineering, licensing, and commercialization of nuclear power plants.
Key Financial Metrics
| Metric (in thousands) | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 |
|---|---|---|---|---|
| Revenue | $8,054 | $967 | $21,429 | $2,346 |
| Gross Margin | $1,781 | $117 | $8,783 | $761 |
| Net Loss (Total) | $(37,609) | $(74,438) | $(68,004) | $(122,518) |
| Net Loss (Class A) | $(17,641) | $(27,617) | $(31,646) | $(44,189) |
| EPS (Class A, Basic/Diluted) | $(0.13) | $(0.31) | $(0.24) | $(0.52) |
| Cash & Equivalents | $297,695 | N/A | N/A | N/A |
| Short-term Investments | $123,051 | N/A | N/A | N/A |
| Total Debt | $0 | $0 | $0 | $0 |
Liquidity: As of June 30, 2025, the company held $297.7 million in cash and cash equivalents and $123.1 million in short-term investments. There is no outstanding debt. The company maintains an accumulated deficit of $408.7 million.
Material Changes vs. Prior Period
- Revenue Growth: Revenue increased significantly to $8.1 million in Q2 2025 from $0.97 million in Q2 2024. This growth is primarily driven by engineering services for the RoPower project in Romania. Related party revenue from Fluor accounted for 92% of total revenue in Q2 2025.
- Expense Management: Operating expenses decreased slightly on a quarterly basis but increased year-to-date due to strategic business development costs ($3.9M increase in Q2) and legal/accounting fees. However, R&D expenses decreased year-over-year due to cost optimization measures and the completion of the SDA.
- Warrant Liabilities: The company recorded no change in fair value of warrant liabilities in 2025, as all 18.5 million warrants outstanding in 2024 were redeemed or exercised in the latter half of 2024.
- Long-Lead Materials (LLM): The LLM work in process asset increased to $64.3 million (from $43.4 million at year-end 2024) as the company continued to advance investment in materials for future NPMs, despite the suspension of the original LLM Agreement with CFPP LLC.
Guidance, Outlook, and Risks
- Outlook: Management believes current cash resources are sufficient to cover operating needs for the next twelve months. The company is transitioning from an R&D-focused entity to a commercial company, relying on the recently approved SDA to secure customer commitments.
- Capital Raising: The company utilized an At-The-Market (ATM) program to raise approximately $99.8 million in net proceeds during the first six months of 2025. However, only ~21 million Class A shares remain authorized, which may limit future equity raises without a shareholder vote.
- Internal Controls: The company disclosed a material weakness in internal control over financial reporting related to IT general controls and insufficient personnel for technical accounting. Remediation plans include hiring additional staff and engaging SOX consultants.
- Legal Proceedings: Several shareholder class action lawsuits were filed in 2023 and 2024. As of the filing date, the consolidated Oregon case was dismissed with prejudice, and the Delaware case was voluntarily dismissed following a corporate amendment and a mootness fee payment of $85,000.
- Commitments: The company has significant contractual obligations totaling $194.5 million, including $99.5 million for long-lead material purchases and $52.2 million for sales and marketing agreements.
Investor Verification Checklist
- Revenue Concentration: Verify the sustainability of revenue given that 92% of Q2 2025 revenue came from a single related party (Fluor) for the RoPower project.
- LLM Liability Resolution: Monitor the status of negotiations regarding the $32.3 million Long-Lead Material liability and the ultimate disposition of the materials with CFPP LLC and the DOE.
- Capital Constraints: Assess the timeline and likelihood of shareholder approval to increase authorized Class A shares, given the current limit of ~21 million shares remaining.
- Internal Control Remediation: Track progress on remediation of the material weakness in financial reporting controls to ensure future financial statement reliability.
- Commercialization Timeline: Evaluate the progress of the RoPower project in Romania as the primary near-term revenue driver and the impact of the SDA approval on new customer acquisition.