NuScale Power Corp (SMR) - Q2 2026 10-Q Summary
Business Context and Reporting Period
This report covers the quarterly period ended June 30, 2026. NuScale Power Corp is commercializing a modular, scalable electric Light Water Reactor nuclear power plant (NuScale Power Module or NPM). The company operates in a single segment focused on engineering, licensing, and future NPM sales. Key milestones include the NRC's approval of the 77 MWe design in May 2025 and ongoing collaboration with strategic partner ENTRA1 Energy LLC.
Key Financial Metrics
| Metric (in thousands) | Q2 2026 | Q2 2025 | 6 Months 2026 | 6 Months 2025 |
|---|---|---|---|---|
| Revenue | $75 | $8,054 | $640 | $21,429 |
| Net Loss (Attributable to Class A) | $(47,539) | $(17,641) | $(91,554) | $(31,646) |
| Loss Per Share (Basic & Diluted) | $(0.13) | $(0.13) | $(0.27) | $(0.24) |
| Operating Cash Flow | N/A | N/A | $(372,860) | $(56,107) |
| Cash & Equivalents | $766,460 | N/A | N/A | N/A |
| Total Investments | $1,126,537 | N/A | N/A | N/A |
| Debt | $0 | $0 | $0 | $0 |
Note: Total Investments includes Short-term investments ($305,688) and long-term Investments ($820,849). The company reported a negative gross margin of $(152) for Q2 2026 due to a revenue reduction agreement with Fluor.
Material Changes vs. Prior Period
- Revenue Decline: Revenue dropped 99% in Q2 2026 compared to Q2 2025. This is primarily due to the completion of the Fluor FEED Phase 2 engineering services for the RoPower project in late 2025 and a $175k revenue reduction agreement with Fluor in June 2026.
- Increased Operating Loss: Operating loss widened to $64.0 million in Q2 2026 from $43.1 million in Q2 2025. This was driven by higher R&D expenses ($18.4M vs $11.8M) and Other expenses ($18.5M vs $10.5M) as the company ramps up supply chain readiness and design maturity.
- Investment Income Surge: Investment income increased significantly to $13.9 million in Q2 2026 (from $5.5M in Q2 2025) due to a stronger cash position and higher yields on investments.
- Capital Raise: The company completed a $1.0 billion At-The-Market (ATM) program in June 2026, issuing ~89.7 million shares for net proceeds of $984.5 million.
- ENTRA1 Milestone Payment: The company settled $259.9 million of a Milestone Contribution to ENTRA1 during the six months ended June 30, 2026, impacting operating cash flow.
Outlook, Risks, and Contingencies
- Project Outlook: The Romanian Government approved the investment decision for the Doicești SMR plant 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: Management believes cash, cash equivalents, and investments (~$1.9 billion total) are sufficient to fund operations for the next 12 months and beyond.
- Legal Proceedings: Two shareholder lawsuits were filed in 2026 (Truedson v. NuScale and a derivative suit). The Truedson case alleges false statements regarding ENTRA1's capabilities and Fluor's role. The company cannot estimate potential losses, which could be material.
- Commitments: Total contractual commitments are approximately $168.4 million, including $41.9 million for Long-Lead Materials (LLM) and $52.2 million for sales and marketing agreements with ENTRA1.
Investor Verification Checklist
- Revenue Visibility: Verify the timeline for the RoPower Doicești project to move from pre-EPC to binding contracts, as current revenue is minimal.
- ENTRA1 Dependency: Assess the financial impact of the Partnership Milestones Agreement (PMA) and the risk of future milestone payments to ENTRA1.
- Legal Exposure: Monitor the status of the Truedson class action lawsuit and the derivative suit regarding ENTRA1 disclosures.
- Cash Burn Rate: Track operating cash flow usage, particularly the impact of the $259.9M ENTRA1 payment and ongoing R&D/supply chain investments.
- Regulatory Status: Confirm the status of the 77 MWe design approval and any new international licensing applications.