Oklo Inc. (NYSE: OKLO) shares are set to open lower on Thursday, giving back some of the recent gains that followed a key regulatory milestone. The U.S. Nuclear Regulatory Commission (NRC) has approved the company's Principal Design Criteria report for its Aurora nuclear powerhouse, a decision that cuts the typical review time by more than half, according to the company's announcement on Wednesday.
The approval marks an early-stage regulatory win for the advanced nuclear startup, which is developing small modular reactors (SMRs) for data centers and other large electricity users. However, the NRC's sign-off does not authorize commercial operation. Oklo has yet to build a single powerhouse or finalize any binding power purchase agreements, leaving the path to revenue generation long and uncertain.
Oklo's strategy is to build, own, and operate its own powerhouses, selling electricity directly to customers. The company is pursuing a repeatable licensing framework that it hopes will streamline future reviews and reduce regulatory costs. CEO Jacob DeWitte highlighted the "timely engagement by the regulator" in a statement, underscoring the importance of licensing speed for advanced nuclear firms seeking to convert investor enthusiasm into operational plants.
The broader nuclear sector has rallied in recent months, driven by surging demand from artificial intelligence and data center operators. Major tech companies are signing power purchase agreements that provide revenue certainty, which analysts say is critical for securing construction financing. "They create the revenue certainty that commercial banks will require for the construction debt," said Shioly Dong, senior analyst at BMI, in a Reuters interview. Tim Winter, manager of the Gabelli Utilities Fund, added, "The industry needs someone to take on the risks."
Oklo's stock closed at $79.62 on Wednesday, but premarket trading on Thursday indicated a 2.9% decline to around $77.30, according to Google Finance. The broader advanced-nuclear rally continued, with shares of NuScale Power and Nano Nuclear Energy also rising in early action, suggesting the market is still pricing in sector-wide optimism.
Earlier in 2024, Oklo signed a non-binding agreement to supply power to data center operator Switch, with potential deployments of up to 12 gigawatts by 2044. Each Aurora unit is designed to produce 15 megawatts of electricity. On the fuel front, the company announced in October that Europe's newcleo plans to invest up to $2 billion in advanced fuel fabrication in the U.S., with Sweden's Blykalla also considering a co-investment. DeWitte said tapping surplus plutonium could "accelerate the deployment of multiple gigawatts" while uranium enrichment and recycling capacity catches up.
Despite these positive developments, Oklo's financials reveal the heavy lifting ahead. The company ended 2025 with $1.41 billion in cash, cash equivalents, and marketable securities, but reported a net loss of $105.7 million and negative operating cash flow of $82.2 million. In its most recent annual filing, Oklo warned of "significant ongoing losses" and said commercial viability "may never occur."
Oklo is scheduled to report first-quarter 2026 results after the market close on May 12, with CEO Jacob DeWitte and CFO Craig Bealmear hosting the conference call. Investors will be watching for updates on binding customer agreements, construction timelines, and fuel supply arrangements.
The NRC approval provides a clearer regulatory marker, but the real tests—securing financing, building plants, and locking in customers—remain ahead. For now, the stock's next move will likely depend on how quickly Oklo can translate regulatory momentum into tangible commercial progress.
