NuScale Power shares climbed 4.3% to $13.09 in Monday afternoon trading, recovering some ground after last week's earnings slide. Despite the uptick, Citigroup maintained its sell rating and lowered its price target to $7, down from $9, signaling persistent Wall Street skepticism toward the small modular reactor (SMR) developer.
Revenue and Earnings Picture
The company's first-quarter results underscored the challenges. Revenue plummeted to $565,000 from $13.4 million a year earlier, primarily due to the absence of recurring licensing fees from RoPower and Fluor's front-end engineering and design work that did not repeat in 2026. Net loss widened to $46.7 million from $30.4 million in the prior-year period.
Balance Sheet and Project Updates
NuScale ended the quarter with $1 billion in liquidity, providing a cushion as it pursues key projects. Its partner ENTRA1 Energy is collaborating with the Tennessee Valley Authority to plan up to 6 gigawatts of SMR capacity. In Romania, shareholders of SN Nuclearelectrica approved the next phase of the RoPower project. CEO John Hopkins stated the company is building infrastructure for an anticipated market opening.
Regulatory Progress and Market Context
The U.S. Nuclear Regulatory Commission approved NuScale's 77-megawatt reactor design last year, following earlier clearance for its 50-megawatt model, removing a key regulatory barrier. Hopkins noted that deployment could occur before the decade ends, contingent on a customer moving forward. The SMR sector has drawn renewed interest as data centers seek reliable, around-the-clock power, but investors face a familiar calculus: compelling growth story versus thin current revenues.
Binding Contracts Remain Elusive
NuScale's 10-Q filing reveals that the TVA-ENTRA1 agreement is non-binding, and progress requires one or more long-term power purchase agreements. ENTRA1 retains full discretion over selecting NuScale for subsequent projects. This risk factor has dogged the stock: any hiccup with TVA, Romanian funding, or equipment deals could leave NuScale as a cash-heavy developer collecting sporadic service fees rather than transitioning to a steady reactor supplier.
Competitive Landscape
Rivals are advancing. On May 6, Oklo announced its Aurora powerhouse in Idaho received NRC approval for its principal design criteria topical report, potentially streamlining future licensing. NuScale's path to revenue hinges on securing a binding customer contract, ideally with TVA or RoPower, to convert regulatory progress into equipment sales. Monday's bounce reflects market recalibration of nuclear demand optimism against the open question of when NuScale will start generating consistent income.
