NuScale Power Corporation (NYSE: SMR) saw its stock decline sharply in after-hours trading on Thursday, following the release of first-quarter financial results that revealed a deepening net loss and a dramatic drop in revenue. Shares traded at $11.48, down 8.7% from the regular session close of $12.58, which itself had fallen 6.95% on the day, according to MarketScreener.
The company reported a net loss of $46.7 million for the quarter ended March 31, 2026, compared to a loss of $30.4 million in the same period last year. Revenue plummeted 96% to just $565,000 from $13.4 million a year earlier, driven by the absence of tech-license revenue from RoPower and the conclusion of Fluor's front-end engineering and design work for the Romania project in late 2025. Loss per Class A share widened to 14 cents from 11 cents a year ago.
Cash Position and Burn Rate Under Scrutiny
Operating activities consumed $314.7 million in cash during the quarter, raising concerns about the company's runway. As of March 31, NuScale reported $341.1 million in cash and cash equivalents, along with $549 million in short-term investments, bringing total liquidity to approximately $890 million. The company carries no debt on its balance sheet. Additionally, it has $962.1 million worth of Class A shares available for sale through its at-the-market (ATM) program, providing a potential source of capital.
Chief Financial Officer Ramsey Hamady noted on the earnings call that liquidity exceeded $1.2 billion as of early May, emphasizing a conservative approach to the balance sheet. However, the high cash burn rate—driven by increased research and development spending on NuScale Power Module components and a $10 million rise in other expenses related to supply chain and project readiness—has put pressure on the stock.
Revenue Challenges and Project Updates
The revenue decline was primarily attributed to the wrap-up of the RoPower tech-license agreement and the completion of Fluor's engineering work for the Romania project. NuScale's CEO John Hopkins highlighted that demand for reliable, carbon-free energy "has never been greater," pointing to the company's expanded supply-chain deal with Framatome and progress on the ENTRA1 Energy project with the Tennessee Valley Authority (TVA). The ENTRA1 project, which aims to deploy up to 6 gigawatts of NuScale SMR capacity, remains contingent on securing power purchase agreements.
Other key developments include shareholder approval for the next phase of the RoPower project in Romania and an enhanced fuel-supply agreement with Framatome. However, none of these milestones are expected to alter the near-term revenue outlook, underscoring the gap between strategic progress and financial performance.
Competitive Landscape and Market Context
The small modular reactor (SMR) sector is attracting significant investor interest amid rising power demand from data centers and artificial intelligence. Competitors are also advancing: on May 6, Oklo announced that the U.S. Nuclear Regulatory Commission had cleared the principal design criteria for its Aurora powerhouse in Idaho, a milestone that could streamline future approvals. Meanwhile, X-Energy, backed by Amazon, raised $1.02 billion in an April IPO, signaling continued appetite for advanced nuclear ventures despite persistent project risks.
NuScale faces additional headwinds, including shareholder class-action and derivative lawsuits, the costs of which the company says it cannot estimate. The RoPower pre-EPC stage remains dependent on funding, and the TVA project's progress hinges on finalizing power purchase agreements. Investors are increasingly focused on tangible contracts and predictable revenue streams rather than regulatory wins or cash reserves.
The first-quarter results highlight the disconnect between NuScale's long-term potential and its immediate financial challenges. While the company holds a strong cash position and no debt, the rapid cash burn and lack of new power purchase agreements have left the market skeptical.
