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SEC filingNet loss widened to $664.5M as revenue fell 15% YoY; transition to commercialization drove $533.9M G&A increase from PMA milestone.
NuScale Power Corporation is redefining nuclear power through the development of its proprietary small modular reactor (SMR) technology. The core product, the NuScale Power Module (NPM), generates 77 MWe and is based on established light water reactor principles with passive safety features. As of December 31, 2025, the Company had 513 issued patents and 268 pending applications globally. NuScale received its first Standard Design Approval (SDA) from the Nuclear Regulatory Commission (NRC) in September 2020, becoming the first and only SMR to achieve this milestone. A second SDA for a 6-unit, 77 MWe design was approved in May 2025.
NuScale currently operates in a single reporting segment, focusing on the development and commercialization of its SMR technology and associated services. No revenue breakdown by segment is provided as the company is pre-commercial.
The primary product is the NuScale Power Module (NPM), which includes the reactor core, steam generators, and pressurizer in a single factory-built vessel. The Company also supplies Nuclear Steam Supply System (NSSS) equipment and offers a range of services including licensing support, testing, training, fuel supply, and program management. A micro-reactor (0.01-10 MWe) is under development for niche markets.
NuScale sells directly to customers, targeting domestic and international governments, utilities, state-owned enterprises, and industrial companies. The Company has one active customer, RoPower Nuclear S.A. in Romania, and one prospective customer, ENTRA1, which holds exclusive global commercialization rights and is negotiating with the Tennessee Valley Authority. NuScale expects service revenue to begin approximately five years before a plant's commercial operation date.
Competition includes traditional baseload power (coal, natural gas), renewables (solar, wind), long-duration storage, and other nuclear reactor technologies. Specific competitors include operating SMRs in China and Russia; NuScale is the only SMR vendor with an NRC-approved SDA and site-boundary emergency planning zone (EPZ) methodology. No other SMR has applied for NRC SDA.
NuScale's growth strategy comprises four pillars: (1) traditional and new applications, such as replacing coal plants and serving data centers; (2) international customer development via the ENTRA1 partnership; (3) continuous technology improvements to increase power output and reduce costs; and (4) development of new products like the micro-reactor for off-grid applications.
As of December 31, 2025, NuScale employed 428 full-time workers, including 11 with master's degrees and 22 Ph.Ds. Twelve percent of engineers are veterans. In January 2024, the Company reduced its workforce by 154 employees (28%) to align resources with core priorities.
Revenue for the year ended December 31, 2025 was $31.5 million, a decrease of 15% from $37.0 million in 2024. The decline was primarily driven by lower revenue recognized from the RoPower technology license agreement (TLA), partially offset by substantially higher Fluor FEED Phase 2 engineering services in support of the RoPower project. Cost of sales increased to $20.0 million from $4.9 million due to engineering services under the FEED contract, resulting in gross margin falling from 86.7% to 36.3%.
Operating loss widened dramatically to $689.6 million from $138.7 million, as general and administrative (G&A) expenses surged $533.9 million. The increase was largely due to the recognition of $507.4 million in Milestone Contribution 1 under the PMA, along with higher strategic business development costs ($14.6 million) and advisory/legal fees ($11.8 million). Research and development expenses decreased marginally to $45.5 million from $46.8 million, while other expenses declined to $45.6 million from $48.1 million as personnel shifted to cost of sales. Sponsored cost share fell to $0.1 million from $6.9 million due to hitting caps with DOE and USTDA. Investment income rose to $25.3 million from $8.4 million on a stronger cash position. The net loss increased to $664.5 million from $348.4 million.
The MD&A does not provide segment-level financial breakouts. The business operates as a single segment focused on SMR technology commercialization, with revenue derived from engineering and licensing services. Domestic and international market activities are discussed qualitatively, but no segment financials are disclosed.
Management emphasizes the transition from R&D to commercialization, highlighted by the expanded ENTRA1 partnership and the PMA. Key milestones include the NRC approval of the second SDA in May 2025, the Romanian government's investment approval for Doicesti in February 2026 (post-period), and the PMA triggering $259.9 million in contributions payable in 2026. The company expects to generate significant future revenue from NPM sales and lifecycle services. With $836.4 million cash, $450.8 million in investments, and no debt, NuScale believes it has sufficient liquidity for at least 12 months. The outlook focuses on executing commercial contracts and advancing manufacturing, though no numerical guidance is provided.
As of December 31, 2025, NuScale held $836.4M in cash and cash equivalents (excluding $5.1M restricted) and $450.8M in marketable securities (short-term CDs of $417.8M plus long-term bonds of $33.0M). Total liquidity exceeded $1.29B. Shareholders' equity stood at $1.11B, bolstered by $1.30B in net proceeds from ATM offerings during 2025. The company has no outstanding debt. Inventory (long-lead material work in process) rose to $63.8M from $43.4M a year earlier, reflecting continued investment in NPM manufacturing components.
Total purchase commitments as of year-end 2025 were $398.0M, with the largest component being $259.9M payable under the Partnership Milestone Agreement (Milestone 1, due in 2026). Other commitments included $48.9M for LLM materials, $12.4M for supply chain readiness, $42.0M for services, and $34.8M for sales and marketing agreements. Additionally, potential obligations of up to $7.1M exist under USTDA technical assistance grants. The timing of payments is heavily front-loaded, with $339.0M due within one year.
The company did not repurchase shares or pay dividends. Capital expenditures were minimal ($0.5M), representing 1.6% of revenue. The primary capital allocation activity was equity issuance: $1.30B raised through ATM programs (Q3 and Q4 2025), with $750M remaining under the Q4 2025 ATM at year-end. Proceeds were used to fund operations, the PMA milestone payment, and LLM purchases.
Note 11 confirms a single operating segment: the commercialization of NuScale's SMR technology. All revenue and losses are evaluated on a consolidated basis. No geographic breakdown beyond noting LLM work in process in South Korea and the U.S. as primary operational location.
NuScale faces a critical near-term risk: it has not entered any binding contract to deliver NuScale Power Modules (NPMs). Initial deployment depends on two scenarios: (i) binding agreements with RoPower and an EPC contract with Fluor, or (ii) ENTRA1 signing a PPA and NuScale entering an OEM agreement. Without these, deployment could be significantly delayed. Additionally, the Product Manufacturing Agreement (PMA) with ENTRA1 has already triggered a $507 million Milestone 1 contribution for 72 NPMs (related to TVA), with no guarantee that this will lead to revenue. Milestone 2 contributions of ~$16 million per NPM could follow without any revenue-generating contract. Reliance on ENTRA1 as exclusive global strategic partner is heavy; termination of the Strategic Alliance Agreement could restrict NuScale's ability to pursue opportunities and impose significant damages.
NuScale has incurred significant losses since inception and expects to continue. It has no revenue and requires substantial funding for commercialization. The Tax Receivable Agreement (TRA) with Legacy NuScale Equityholders could require accelerated lump-sum payments estimated at $365 million upon change of control, which may exceed actual tax savings. This obligation could deter acquisitions or strain liquidity. The company also relies on DOE cost-sharing awards; failure to meet terms could result in loss of intellectual property rights.
NuScale's SMR design is only approved in the US. Foreign regulatory approvals are required country-by-country, which could be delayed or necessitate design changes. Changes in US trade policy, including tariffs on overseas-manufactured components, could increase costs. The company is also subject to stringent export controls; inability to secure licenses would limit international markets. The Loper Bright Supreme Court decision may create regulatory uncertainty.
Manufacturing and construction issues could be identified too late, impacting cost and schedule. The supply base is constrained, and without binding orders, NuScale may lose access to strategic suppliers. Long-lead components manufactured overseas are exposed to tariffs and geopolitical disruptions.
Competitors in China (CNNC) and Russia (Rosatom) already operate commercial SMRs and have government backing. Other advanced reactor technologies are under development. NuScale's ability to achieve cost-competitiveness, especially in low-power-price US markets, is uncertain.
Patent protection is uncertain and geographically limited. NuScale faces potential infringement claims and challenges to inventorship. It is currently defending a securities class action lawsuit that could result in material liability.
A significant portion of shares may be sold (Fluor intends to sell down), and the stock price is volatile. No dividends are expected. Short seller reports have targeted the company.
The provided document excerpt does not include the actual Consolidated Statements of Cash Flows (referenced as page F-8). The text contains the audit report, balance sheet, and income statement, but no cash flow figures. Therefore, no analysis of cash flows can be performed.