SMR NuScale 10-Q 2026-09-30 section summaries

NuScale Power Corporation — Part I, Item 1

NuScale is commercializing a modular light-water reactor plant using 77 MWe gross-output NuScale Power Modules (NPMs). The NRC approved the design approval application for the 77 MWe design in May 2025. Revenue to date has mainly come from engineering, licensing and services for prospective customers; module sales and lifecycle services remain future opportunities. NuScale operates as one reportable segment, and its chief operating decision-makers assess performance using consolidated net loss. The gap between commercialization ambitions and current scale remains pronounced: Q3 revenue was just $0.281 million, while operating cash use was $401.418 million in the first nine months of 2026.

Consolidated results

Revenue fell sharply: Q3 2026 revenue was about 97% lower year over year, and 9M revenue about 97% lower. The company’s revenue mix also shifted:

Operating losses narrowed substantially, primarily alongside much lower G&A expense: $27.918 million in Q3 2026 versus $519.222 million a year earlier, and $79.632 million for 9M versus $565.009 million. A major factor in the prior-year comparison was the $507.393 million PMA milestone-contribution expense triggered by a 2025 non-binding ENTRA1 agreement concerning 72 NPMs. NuScale settled $259.884 million of the remaining amount in 9M 2026; a further liability was not accrued because later milestone triggers had not been met. R&D expense increased to $18.007 million in Q3 and $49.241 million for 9M, from $11.054 million and $31.987 million, respectively. Labor costs, across operating expenses, were $32.602 million in Q3 2026 versus $22.159 million, and $95.479 million for 9M versus $66.687 million.

Cash flow and funding

Operating cash use included a $261.209 million reduction in accounts payable and accrued expenses, compared with a $354.072 million cash source from that line in 9M 2025. Investing outflows included $975.064 million of investment purchases and $747.592 million of short-term investment purchases. Financing included $984.475 million of net common-stock proceeds. Cash, cash equivalents and restricted cash ended the period at $522.972 million, down from $841.517 million at the start.

NuScale issued 89.727 million Class A shares through its ATM program in 9M 2026 at a weighted-average $11.14 per share, generating $1.000 billion gross and $984.475 million net; no shares were sold in Q3. The $1.000 billion ATM program was completed in June, and an August agreement authorized up to a further $750 million of potential sales. Class A shares outstanding rose from 318.481 million at December 31, 2025 to 410.541 million at September 30, 2026; at September 30, 2025, they were 167.596 million. Class B units fell from 130.818 million at September 30, 2025 to 19.332 million at September 30, 2026, shifting Class A ownership from 56.2% to 95.5%. The 2025 ATM had generated $562.370 million net proceeds in 9M, including $462.613 million in Q3.

Balance sheet and commitments

Financial assets had $1.583 billion amortized cost and $1.572 billion fair value at September 30, 2026, including an approximately $11.020 million gross unrecognized holding loss, primarily on investment securities. Management considered expected credit losses immaterial. The decline in liabilities largely reflected accounts payable and accrued expenses falling to $26.720 million from $286.515 million.

Total principal cash obligations and commitments were $169.758 million: $41.938 million for long-lead materials, $9.963 million for supply-chain readiness and manufacturing, $62.885 million for other services, $43.500 million for sales and marketing, and $11.472 million for leases. NuScale also had $5.150 million of restricted cash supporting a $5.000 million letter of credit for potential CFPP LLC demobilization costs, and $4.463 million supporting a $4.250 million Houston lease letter of credit. Under USTDA grants, it could owe up to $7.070 million of received funds if qualifying revenue is earned.

Commercial execution and risks

ENTRA1 is NuScale’s exclusive global strategic commercialization and development partner, but retains sole discretion over whether to select, contract with or purchase from NuScale. NuScale’s sales and marketing agreement with ENTRA1 carries an annual $34.800 million service commitment. The PMA’s further milestone tranches depend on future binding project/offtake and manufacturing agreements; neither trigger had been met by September 30, 2026. NuScale guarantees NuScale LLC’s PMA obligations. The agreement includes a negotiated maximum NPM sale price and runs through 2045, with automatic 20-year renewals. NuScale also signed $25.815 million of Paragon Energy Solutions contracts in June 2026 for supply-chain readiness and design work on its Highly Integrated Protection System; in October it contracted with Doosan to support physical production of an advanced NPM component.

Key risks include obtaining binding module-delivery contracts and securing funding through commercialization. A securities class action alleges misleading statements about ENTRA1’s experience and capabilities, among other claims; NuScale moved to dismiss the amended complaint in September 2026 and cannot estimate potential losses. Related derivative actions are stayed or pending, and potential losses are also unestimable.

NuScale Corp. (SMR) — Q3 and nine months ended September 30, 2026

Results

NuScale continued to report very low commercial revenue and substantial losses. Revenue fell sharply because RoPower’s technology-license revenue and Fluor FEED Phase 2 engineering work recognized in 2025 did not recur; NuScale completed its FEED Phase 2 scope in late 2025. Losses narrowed against the prior year, which included a large one-time contribution, while investment income increased.

R&D rose as NuScale advanced NuScale Power Module (NPM) component readiness and design maturity. The 9M increase included $19.7 million of higher NPM-related costs, partly offset by $2.4 million lower regulatory and testing costs following the May 2025 design approval. The unusually high prior-year G&A comparison reflects a $495.0 million Milestone Contribution 1 tied to the non-binding ENTRA1–TVA agreement. 2026 G&A also increased with compensation and equity-based compensation, ERP implementation, insurance, and advisory costs. Other expenses increased partly because fewer commercial projects meant less cost allocation to cost of sales, alongside added compensation and supply-chain and project-delivery resources. Higher investment income reflected a stronger cash and investment position and higher interest rates.

Liquidity and cash flows

At September 30, 2026, NuScale had $513.4 million of cash and cash equivalents, $420.0 million of short-term investments, and $930.7 million of investments; it had no debt. The company reported an accumulated deficit of $868.1 million and has a history of negative operating cash flows.

Higher operating cash use primarily reflected a $259.9 million payment to ENTRA1, lower customer collections, and vendor prepayments for the LLM. Investing cash flows primarily reflected investment purchases and sales; financing cash inflows were primarily ATM proceeds. Management believes available funds and continued capital-market access will cover requirements for 12 months and beyond.

Equity financing and commitments

During 9M 2026, NuScale sold 89,727,165 Class A shares through ATM programs, generating $1.000 billion gross and $984.475 million net proceeds at a weighted-average price of $11.14 per share; no shares were sold in Q3. The $1.0 billion ATM program was completed in June 2026. An ATM agreement entered in August allows up to $750 million in additional sales.

Contractual commitments totaled $169.758 million at September 30, 2026: $41.938 million for LLM materials, $9.963 million for supply-chain readiness and manufacturing, $62.885 million for other services, $43.500 million for sales and marketing, and $11.472 million for leases. Scheduled payments were $32.939 million in 2026, $109.881 million in 2027, and $17.039 million in 2028, with the remainder due thereafter. The ENTRA1 sales and marketing agreement costs $34.8 million annually and renews unless terminated on six months’ notice. June 2026 Paragon contracts totaling $25.8 million cover NPM Highly Integrated Protection System design and development. No liability was accrued for potential future Milestone Contributions 2 or 3 because recognition criteria had not been met. USTDA arrangements could require repayment of up to $7.1 million if qualifying revenue is earned.

Commercialization and execution

NuScale is shifting from technology development toward NPM production and commercialization, with increased R&D and supply-chain readiness spending. Its 77 MWe NPM design received its second NRC Standard Design Approval in May 2025; an earlier 12-module design, at 50 MWe per module, received approval in 2020.

Romania approved the Doicești project investment decision on February 12, 2026, allowing further feasibility, licensing, geotechnical, and site-specific work. RoPower remains NuScale’s sole international customer, and must secure financing before signing a pre-EPC contract; NuScale expects work to resume after that contract is signed. In the U.S., ENTRA1 and TVA announced a non-binding collaboration to develop up to 6 GW of nuclear generation, contingent on one or more power purchase agreements. Potential markets include data centers, AI and cloud computing, industrial applications, microgrids, desalination, hydrogen, and direct air capture. ENTRA1 is NuScale’s exclusive global commercialization and development partner, and NuScale requires ENTRA1’s consent to pursue opportunities without it—creating significant partner and execution dependence.

The Company reported no material changes to its market-risk disclosures compared with Part II, Item 7A of its 2025 Form 10-K.

Disclosure Controls and Internal Control

As of September 30, 2026, the CEO and CFO concluded that the company’s disclosure controls and procedures were effective at a reasonable level of assurance. During Q3 2026, the company implemented a new ERP system intended to automate controls and improve operational functionality, and updated internal financial-reporting controls for processes affected by the system. No other changes during the quarter were identified as materially affecting, or reasonably likely to materially affect, internal control over financial reporting.

The company reported no material changes to the risk factors disclosed in its 2025 Annual Report on Form 10-K. No new financial metrics, business risks, or strategic developments were described in this section.

During the three months ended September 30, 2026, CEO John Hopkins and Chief Commercial Officer Clayton Scott each adopted a Rule 10b5-1 trading arrangement on August 11, 2026. Each arrangement provides for selling enough Class A shares upon RSU vesting and settlement to cover tax withholding. Sell-to-cover instructions before the applicable cooling-off period are treated as non-Rule 10b5-1 arrangements; eligible transactions after that period are intended to qualify under Rule 10b5-1. The instructions have no specified end date or share-sale limit.