SMR

NuScale Power Corp (SMR) - Q1 2026 Filing Summary

Business Context and Reporting Period

This Form 10-Q covers the quarterly period ended March 31, 2026. NuScale Power Corp is a Delaware corporation commercializing a modular, scalable Small Modular Reactor (SMR) technology known as the NuScale Power Module (NPM). The company operates as a holding company and consolidates NuScale LLC. As of March 31, 2026, the company had received Standard Design Approval (SDA) from the NRC for its 77 MWe design. The company is currently in a pre-commercialization phase, generating revenue primarily from engineering, licensing, and services rather than power generation.

Key Financial Metrics

Material Changes vs. Prior Period

• Revenue Decline: Revenue dropped 96% to $0.6 million from $13.4 million in Q1 2025. This decrease is attributed to the completion of the RoPower technology license agreement and Fluor FEED Phase 2 engineering services in late 2025, with no comparable activity in Q1 2026.
• Increased Operating Loss: Operating loss widened to $57.5 million from $35.3 million. This was driven by a $10.0 million increase in "Other expenses" due to lower project allocation to Cost of Sales and higher compensation costs for supply chain readiness, alongside a $3.7 million increase in R&D expenses.
• Significant Cash Outflow: Operating cash flow usage surged to $314.7 million (compared to $22.8 million in Q1 2025). The primary driver was a $259.9 million payment to ENTRA1 related to the Partnership Milestones Agreement (PMA) Milestone Contribution 1.
• Investment Income Growth: Investment income more than doubled to $10.8 million, reflecting a stronger cash position and higher yields on short-term and long-term investments.

Outlook, Risks, and Contingencies

• Partnership Milestones: The company executed a PMA with ENTRA1 in August 2025. While Milestone Contribution 1 ($507.4 million total) was triggered and partially paid in Q1 2026, future contributions (Milestone 2 and 3) depend on binding agreements and equipment manufacturing contracts which have not yet been met.
• Project Progress: The Romanian Government approved the investment decision for the Doicești SMR project in February 2026. NuScale anticipates a pre-EPC phase of up to 15 months pending financing. Domestically, ENTRA1 and TVA signed a non-binding agreement to collaborate on up to 6 gigawatts of new nuclear power.
• Liquidity Position: Management believes cash and investments ($890.1 million) are sufficient to fund operations for the next 12 months and beyond. The company maintains an At-The-Market (ATM) equity offering program with $962.1 million remaining capacity as of March 31, 2026.
• Legal Proceedings: Two shareholder lawsuits were filed in early 2026 (Truedson v. NuScale and a derivative suit by Albert Leigh). Both allege false/misleading statements regarding ENTRA1's capabilities and fiduciary breaches. The company cannot estimate potential losses, which could be material.
• Commitments: Total contractual commitments are approximately $125.2 million, including $41.9 million for Long-Lead Material (LLM) purchases and $26.1 million for sales and marketing agreements.

Investor Verification Checklist

• ENTRA1 Milestone Payments: Verify the timing and triggers for the remaining PMA milestone contributions (Milestone 2 and 3) and their potential impact on future cash flow.
• Doicești Project Financing: Monitor the status of RoPower's financing efforts, as the pre-EPC phase and subsequent revenue recognition are contingent upon securing these funds.
• Legal Exposure: Track the progress of the Truedson class action and derivative lawsuit, specifically regarding the appointment of lead plaintiff and any motions to dismiss.
• Revenue Pipeline: Assess the transition from engineering/licensing revenue to firm power purchase agreements (PPAs) or equipment sales, given the significant drop in Q1 2026 revenue.
• Capital Raise Activity: Monitor utilization of the $1.0 billion ATM program, as the company relies on equity issuance to supplement operating cash burn.