NuScale (SMR) Q2 Revenue Soars 710%

Core Insights - NuScale Power reported Q2 2025 results with a revenue of $8.1 million, missing analyst expectations by approximately 30.5% compared to the consensus of $11.65 million, but showing a significant year-over-year growth of over 700% from $1.0 million in Q2 2024 [1][2][5] - The company achieved a key regulatory milestone by receiving early approval for its 77-megawatt design from the U.S. Nuclear Regulatory Commission, positioning it uniquely in the market [1][7] - Despite the revenue growth, the company continues to face financial losses, with costs rising due to the shift towards commercialization and ongoing pre-commercial operating expenses [1][6][12] Financial Performance - Revenue for Q2 2025 was $8.1 million, a 710% increase year-over-year from $1.0 million in Q2 2024, but a 39.6% decrease from the previous quarter's $13.4 million [2][5] - Cost of sales increased to $6.3 million from $0.9 million a year ago, while general and administrative expenses rose to $22.5 million from $16.8 million, reflecting expanded business development activities [2][6] - The company ended the quarter with $489.9 million in cash, cash equivalents, and investments, providing a runway for two or more years at current expenditure levels [1][11] Business Model and Strategy - NuScale focuses on building small modular reactors (SMRs) that can be deployed flexibly, with its flagship product capable of delivering 77 MWe per unit [3][9] - The company aims to commercialize its technology for global, carbon-free baseload power, with key success factors including regulatory approvals and strategic partnerships [4][10] - Ongoing negotiations with about ten advanced customers in the U.S. and abroad indicate potential for future sales, particularly related to the RoPower project in Romania [8][10] Regulatory and Market Position - The early receipt of Standard Design Approval for the 77 MWe SMR design gives NuScale a competitive edge as the only SMR provider with NRC-certified technology [7] - The company is actively working on the RoPower project, which remains a primary source of near-term contracted revenue, with key engineering deliverables expected later in the year [8][10] - Management emphasizes the importance of converting customer interest into binding module orders as central to future growth [4][12]