NuScale's Losses Mount Amid Soaring G&A, Despite Revenue Jump

Ticker: SMR · Form: 10-Q · Filed: Nov 6, 2025

Sentiment: bearish

Topics: Nuclear Energy, Small Modular Reactors, Financial Performance, Operating Expenses, Net Loss, Cash Flow, Equity Financing

Related Tickers: SMR, FLR

TL;DR

**NuScale's ballooning G&A expenses and massive net loss make it a risky bet, despite revenue growth – stay away until they prove cost control.**

AI Summary

NuScale Power Corporation (SMR) reported a significant increase in revenue for the nine months ended September 30, 2025, reaching $29.671 million, up from $2.821 million in the prior year. Despite this revenue growth, the company experienced a substantial net loss of $600.650 million for the nine-month period, a sharp increase from a net loss of $168.072 million in the same period of 2024. This expanded loss was primarily driven by a massive surge in general and administrative expenses, which soared to $565.009 million for the nine months ended September 30, 2025, compared to $53.207 million in 2024. Research and development expenses slightly decreased to $31.987 million from $37.447 million. The company's cash and cash equivalents increased to $407.585 million as of September 30, 2025, from $401.556 million at December 31, 2024, largely due to $568.267 million in net cash provided by financing activities, including $562.370 million from common stock issuance. Total assets grew to $883.135 million from $544.673 million, while total liabilities increased dramatically to $448.319 million from $91.553 million, mainly due to a rise in accounts payable and accrued expenses to $403.415 million.

Why It Matters

NuScale's substantial increase in net loss to $600.650 million, primarily due to a massive $511.802 million jump in G&A expenses, signals significant operational challenges and raises red flags for investors. While revenue grew, the disproportionate expense growth suggests a lack of cost control or significant one-time events that could erode investor confidence. For employees, this could indicate instability, while customers might question the long-term viability and pricing of NuScale's SMR technology against competitors like GE Hitachi Nuclear Energy. The broader market will watch if this trend impacts the nascent SMR industry's perception and investment appeal.

Risk Assessment

Risk Level: high — The risk level is high due to the dramatic increase in net loss to $600.650 million for the nine months ended September 30, 2025, from $168.072 million in the prior year. This is primarily driven by a staggering 967% increase in general and administrative expenses, from $53.207 million to $565.009 million, indicating severe operational inefficiencies or significant one-time costs that are unsustainable.

Analyst Insight

Investors should exercise extreme caution and consider reducing exposure to SMR given the uncontrolled G&A expenses and escalating net losses. Await clear evidence of cost containment strategies and a path to profitability before considering new investments.

Financial Highlights

revenue
$29,671,000
total Assets
$883,135,000
net Income
$(600,650,000)
eps
$(1.37)
gross Margin
38.7%
cash Position
$407,585,000
revenue Growth
+953%

Revenue Breakdown

SegmentRevenueGrowth
Product Sales$29,671,000+953%

Key Numbers

Key Players & Entities

FAQ

Why did NuScale Power's net loss increase so significantly in Q3 2025?

NuScale Power's net loss increased to $600.650 million for the nine months ended September 30, 2025, primarily due to a massive 967% surge in general and administrative expenses, which reached $565.009 million compared to $53.207 million in the same period of 2024.

What were NuScale Power's revenues for the nine months ended September 30, 2025?

NuScale Power reported revenues of $29.671 million for the nine months ended September 30, 2025. This represents a substantial increase from $2.821 million in revenue during the corresponding period in 2024.

How did NuScale Power's cash position change in the first nine months of 2025?

NuScale Power's cash and cash equivalents increased slightly to $407.585 million as of September 30, 2025, from $401.556 million at December 31, 2024. This was largely supported by $568.267 million in net cash provided by financing activities.

What is the significance of the increase in NuScale Power's general and administrative expenses?

The 967% increase in general and administrative expenses to $565.009 million is highly significant as it is the primary driver behind the company's expanded net loss. This indicates either substantial operational scaling costs, one-time charges, or a lack of cost control, which could raise concerns about future profitability.

What are the key risks highlighted in NuScale Power's 10-Q filing?

Key risks include the need for additional funding to meet payment obligations under the PMA, the ability to secure firm revenue-producing contracts, delays in SMR development and manufacturing, and the unestablished market for SMRs. The filing also mentions the risk of not achieving or maintaining profitability and dependence on strategic partners like ENTRA1 and Fluor.

How much capital did NuScale Power raise through common stock issuance?

NuScale Power raised $562.370 million from the issuance of common stock, net of issuance fees, during the nine months ended September 30, 2025. This was a significant component of their financing activities.

What was NuScale Power's total liabilities as of September 30, 2025?

As of September 30, 2025, NuScale Power's total liabilities stood at $448.319 million. This is a substantial increase from $91.553 million reported at December 31, 2024, primarily driven by a rise in accounts payable and accrued expenses.

What does the increase in 'Long-lead material work in process' signify for NuScale Power?

The increase in 'Long-lead material work in process' to $63.315 million from $43.388 million at December 31, 2024, indicates that NuScale Power is investing more in the early stages of manufacturing and procurement for its NuScale Power Modules (NPMs). This suggests progress in production but also ties up capital.

What impact did the change in fair value of warrant liabilities have on NuScale Power's financials?

For the nine months ended September 30, 2025, there was no reported change in the fair value of warrant liabilities. However, in the same period of 2024, a change in fair value of warrant liabilities resulted in a $52.969 million gain, which positively impacted the loss before income taxes.

What is the current number of Class A common shares outstanding for NuScale Power?

As of October 31, 2025, NuScale Power had 167,659,304 Class A common shares outstanding. This number has increased from 122,842,474 shares outstanding as of December 31, 2024, indicating significant share issuance.

Risk Factors

Industry Context

The nuclear energy sector, particularly the small modular reactor (SMR) segment, is experiencing renewed interest driven by decarbonization goals and energy security concerns. NuScale is a prominent player in this emerging market, aiming to commercialize its SMR technology. However, the industry faces challenges related to high upfront capital costs, long development timelines, and complex regulatory frameworks.

Regulatory Implications

NuScale's business is heavily influenced by regulatory bodies such as the U.S. Nuclear Regulatory Commission (NRC). Obtaining and maintaining licenses for its SMR technology is critical. Any changes in nuclear safety regulations, licensing procedures, or environmental standards could impact project feasibility, costs, and timelines.

What Investors Should Do

  1. Monitor G&A expense trends closely.
  2. Evaluate progress on SMR project milestones and customer commitments.
  3. Assess the company's cash burn rate and future financing needs.
  4. Track regulatory developments and licensing progress.

Key Dates

Glossary

SMR
Small Modular Reactor, a type of nuclear reactor that is smaller than conventional nuclear reactors, designed to be manufactured off-site and transported to a site for assembly. (NuScale Power Corporation's core business revolves around the development and deployment of SMR technology.)
Accumulated deficit
The cumulative net losses of a company that have not been offset by net income. (Indicates the company has historically incurred more expenses than revenues, requiring significant investment and financing.)
Additional paid-in capital
The amount of money a company receives from investors in exchange for stock that is above the stock's par value. (Shows the significant capital raised by NuScale through stock issuances, particularly to fund its operations and growth.)
Noncontrolling interests
The portion of equity of a subsidiary that is not attributable to the parent company. (Represents ownership stakes in NuScale's subsidiaries that are held by third parties, impacting the consolidated financial statements.)
Long-lead material work in process
Costs associated with materials that have a long procurement or manufacturing lead time, essential for the construction of complex projects like SMRs. (Highlights the significant upfront investment required for NuScale's projects before revenue generation.)

Year-Over-Year Comparison

NuScale Power Corporation has reported a dramatic increase in revenue for the nine months ended September 30, 2025, up 953% to $29.671 million from $2.821 million in the prior year. However, this growth has been overshadowed by a substantial widening of the net loss, which increased by 257% to $600.650 million from $168.072 million. This expanded loss is primarily attributed to a 967% surge in general and administrative expenses. Total liabilities have also seen a significant increase of 389% to $448.319 million, largely due to higher accounts payable and accrued expenses, while total assets grew by 62% to $883.135 million. No new significant risks were explicitly detailed in the provided excerpt, but the existing risks related to financial performance and operational execution are amplified by these results.

Filing Stats: 4,724 words · 19 min read · ~16 pages · Grade level 17.5 · Accepted 2025-11-06 17:23:24

Key Financial Figures

Filing Documents

- Financial Information

Part I - Financial Information Item 1.

Financial Statements

Financial Statements 1 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 19 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 23 Item 4.

Controls and Procedures

Controls and Procedures 23

- Other Information

Part II - Other Information Item 1.

Legal Proceedings

Legal Proceedings 25 Item 1A.

Risk Factors

Risk Factors 25 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 26 Item 3. Defaults Upon Senior Securities 26 Item 4. Mine Safety Disclosures 26 Item 5. Other Information 26 Item 6. Exhibits 29

Signatures

Signatures 31 Glossary The definitions and abbreviations set forth below apply to the indicated terms used throughout this filing. "CFPP LLC" refers to Carbon Free Power Project, LLC, an entity wholly owned by UAMPS. "Class A common stock" refers to shares of Class A common stock, par value $0.0001 per share, of NuScale Corp. "Class B common stock" refers to shares of Class B common stock, par value $0.0001 per share, of NuScale Corp, which represents the right to one vote per share and carries no economic rights. "Combined interests" refers to the combination of shares of Class B common stock and NuScale LLC Class B units required to be exchanged for Class A common stock. "Common stock" refers collectively to shares of Class A common stock and Class B common stock. "DCA" refers to Design Certification Application. "DOE" refers to the U.S. Department of Energy. "ENTRA1" refers to ENTRA1 Energy LLC. "Exchange Act" refers to the Securities Exchange Act of 1934, as amended. "Fluor" refers to Fluor Enterprises, Inc., a California corporation, which is wholly owned by Fluor Corporation (NYSE: FLR). "FSER" refers to Final Safety Evaluation Report. "GAAP" refers to Generally Accepted Accounting Principles in the United States. "G&A" refers to general and administrative. "IPO" refers to the initial public offering of Spring Valley, which closed on November 27, 2020. "Legacy NuScale Equityholders" refers to the holders of NuScale LLC Class B units. "LLM Agreement" refers to the Long Lead Material Reimbursement Agreement, dated February 28, 2023, entered into between NuScale LLC and CFPP LLC. "Merger" refers to the merger of Merger Sub with and into NuScale LLC, with NuScale LLC as the surviving entity. "Merger Agreement" refers to the Agreement and Plan of Merger, dated as of December 13, 2021 (as amended, modified, supplemented or waived from time to time), between Spring Valley, Merger Sub and NuScale LLC. "Merger Sub" refers to Spring Valley Merg

- Financial Information

Part I - Financial Information

Financial Statements

Item 1. Financial Statements NuScale Power Corporation Condensed Consolidated Balance Sheet (Unaudited) (in thousands, except share and per share amounts) September 30, 2025 December 31, 2024 ASSETS Current Assets Cash and cash equivalents $ 407,585 $ 401,556 Short-term investments 284,200 40,000 Restricted cash 5,100 5,100 Prepaid expenses 7,746 3,377 Accounts and other receivables, net (2025 - $ 5,186 ; 2024 - $ 3,655 from related party) 15,187 21,104 Total current assets 719,818 471,137 Property, plant and equipment, net 2,118 2,421 In-process research and development 16,900 16,900 Intangible assets, net 571 704 Goodwill 8,255 8,255 Long-lead material work in process 63,315 43,388 Investments 61,991 — Other assets 10,167 1,868 Total Assets $ 883,135 $ 544,673 LIABILITIES AND EQUITY Current Liabilities Accounts payable and accrued expenses $ 403,415 $ 47,947 Accrued compensation 8,700 7,330 Long-lead material liability 32,323 32,327 Other accrued liabilities 560 1,356 Deferred revenue 630 762 Total current liabilities 445,628 89,722 Noncurrent liabilities 2,209 1,650 Deferred revenue 482 181 Total Liabilities 448,319 91,553 Stockholders' Equity Class A common stock, par value $ 0.0001 per share, 332,000,000 shares authorized, 167,595,781 and 122,842,474 shares outstanding as of September 30, 2025 and December 31, 2024, respectively 17 12 Class B common stock, par value $ 0.0001 per share, 179,000,000 shares authorized, 130,817,571 and 154,254,663 shares outstanding as of September 30, 2025 and December 31, 2024, respectively 13 15 Additional paid-in capital 1,510,720 995,745 Accumulated deficit ( 682,042 ) ( 377,077 ) Total Stockholders' Equity Excluding Noncontrolling Interests 828,708 618,695 Noncontrolling interests ( 393,892 ) ( 165,575 ) Total Stockholders' Equity 434,816 453,120 Total Liabilities and Stockholders' Equity $ 883,135 $ 544,673 The accompanying notes are an integral part of these financial statement

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