NuScale Power Corporation (NYSE:SMR) saw its stock decline 3.4% over the holiday-shortened week ending July 2, closing at $9.76. The drop reflects ongoing investor skepticism about the company’s ability to convert its substantial cash reserves and regulatory achievements into meaningful revenue.
The stock now trades near the low end of its 52-week range of $8.85 to $57.42, roughly 83% below its peak. Short interest stands at 69.5 million shares, or 20.72% of the float, up 14.32% in the latest data, indicating bearish sentiment persists.
Cash vs. Revenue Disconnect
NuScale reported liquidity and capital resources of approximately $1.0 billion as of March 31, which grew to over $1.2 billion by early May following additional share sales. However, first-quarter revenue fell to just $0.6 million from $13.4 million a year earlier. The implied equity value based on Thursday’s close and 352.6 million fully diluted shares is about $3.44 billion, roughly 1,430 times annualized first-quarter revenue.
Chief Financial Officer Ramsey Hamady acknowledged on the May earnings call that the company is “pre-revenue” and focused on technology not yet deployed. He expressed hope that NuScale would achieve operational cash-flow positivity by year-end, moving beyond burn-rate discussions.
Competitive Landscape
NuScale’s performance contrasted with peer Oklo Inc. (NYSE:OKLO), which rose 4.7% over the same period. Oklo announced on July 1 that the U.S. Department of Energy approved the Documented Safety Analysis for its Groves Isotope Test Reactor, advancing the project to final pre-startup review. NuScale’s only disclosed event was the date for its second-quarter earnings call on August 5.
Despite the revenue gap, NuScale holds a key advantage: it is the only small modular reactor (SMR) technology provider with a completed U.S. Nuclear Regulatory Commission design approval for its US460 reactor. CEO John Hopkins emphasized that demand for reliable, carbon-free power “has never been greater,” positioning NuScale as the sole NRC-approved SMR design.
Funding and Dilution Risks
NuScale entered a $1 billion at-the-market stock sale program in February. In the first quarter, it sold 3.16 million Class A shares for $37.9 million in gross proceeds, leaving $962.1 million eligible for sale at March 31. After the quarter, it sold an additional 22.36 million shares for $216.8 million, increasing the fully diluted share count by about 6.5% since March 31.
This dilution weighs on per-share valuation. At March 31, liquidity per fully diluted share was roughly $2.86, while Thursday’s close of $9.76 was $6.90 above that figure, implying the market is pricing in future contracts and licensing work rather than current earnings.
Catalysts Ahead
Investors are watching for progress on the ENTRA1 project and the Tennessee Valley Authority (TVA) power purchase agreement. Hamady noted that a TVA deal could bring site-specific and pre-OEM services revenue, citing about $8 million in RoPower-related revenue earned over 2024 and 2025 before an OEM contract. The next major catalyst is the August 5 earnings call, where updates on these initiatives and any revenue from binding documents will be key.
