0001822966-26-000054
SEC filingRevenue fell 96% YoY as RoPower projects completed; net loss widened to $46.7M on higher R&D and other expenses.
For the three months ended March 31, 2026, NuScale reported a sharp decline in revenue to $0.6 million from $13.4 million in the prior-year period, a decrease of $12.8 million (95.8%). The drop was primarily due to the completion of the RoPower technology license agreement and Fluor FEED Phase 2 engineering services in late 2025, with no comparable activity in 2026. Cost of sales decreased $5.8 million to $0.5 million, leading to a gross margin of only $0.02 million (3.7%) compared to $7.0 million (52.3%) a year ago. The margin collapse reflects the absence of high-margin license revenue.
Research and development expenses increased $3.7 million to $12.8 million, driven by $5.7 million in higher costs for advancing NPM component technological readiness and design maturity, partially offset by $1.9 million in lower regulatory costs following SDA approval in May 2025. General and administrative expenses rose $1.6 million to $24.8 million due to higher compensation and organizational costs, partly offset by lower accounting and legal fees. Other expenses surged $10.0 million to $19.9 million, reflecting lower allocation of engineering personnel to commercial projects and higher costs for supply chain readiness. Investment income more than doubled to $10.8 million on a stronger cash position and higher-yielding investments. Net loss widened to $46.7 million from $30.4 million.
NuScale operates as a single segment focused on commercializing its SMR technology. Revenue is project-based, and the current period reflects a lull after completing the RoPower-related contracts. The company is investing heavily in R&D and supply chain readiness to support future commercialization, with no new revenue-generating projects recognized during the quarter. The outlook highlights potential opportunities with ENTRA1 and TVA, but these have not yet translated into revenue.
Management expressed confidence in sufficient liquidity to meet cash requirements for at least the next 12 months, citing $341.1 million in cash and cash equivalents and $549.0 million in short-term investments as of March 31, 2026, with no debt. The company has access to the $962.1 million remaining under its 2026 ATM program. Recent developments include the Romanian government’s approval of the Doicești SMR plant investment decision, which could lead to a pre-EPC contract and recommencement of work, with an estimated 15-month pre-EPC phase. Domestically, ENTRA1’s collaboration with TVA to develop up to 6 GW of nuclear power could involve NuScale’s SMR technology. The company continues to invest in NPM component readiness and supply chain to position for future commercial projects. However, no specific revenue or earnings guidance was provided.
Net loss for Q1 2026 was -$46.7M, while CFO was -$314.7M, indicating a significant divergence. The primary driver was a massive working capital outflow: accounts payable decreased by $264.2M, likely reflecting prior period accrual reversals or cash payments. Other working capital items were minor. Excluding working capital, adjusted CFO would be approximately -$50.5M (CFO + working capital changes), which aligns closer to net loss after non-cash charges (depreciation $0.3M, stock compensation $5.2M).
Capex remained negligible at $1.5M, resulting in a substantial negative free cash flow of -$316.2M. FCF coverage of capital returns is not applicable as no dividends or buybacks occurred.
Investing activities consumed $218.4M, driven by net purchases of short-term and other investments. Financing provided $37.8M from stock issuance, insufficient to cover operating needs. The company's cash balance decreased from $841.5M to $346.2M, underscoring high cash burn.
The steep decline in accounts payable warrants attention; it may indicate timing of payments or settlement of liabilities. Overall, cash flow quality is weak due to negative CFO and reliance on financing.