NuScale (SMR) Q2 Revenue Soars 710%

NuScale Power (SMR -11.77%), a developer of small modular nuclear reactors, released its second quarter 2025 results on August 7, 2025. The headline news was a revenue miss: it posted $8.1 million in GAAP revenue, falling about 30.5% short of the $11.65 million analyst consensus, but growing more than 700% for the three months ended June 30, 2025, versus the same period in 2024. While costs rose with the shift toward commercialization, NuScale maintained a healthy cash position, ending the quarter with $489.9 million in cash, cash equivalents, and investments. During the period, NuScale also secured a key regulatory milestone with early approval for its uprated 77-megawatt design. Overall, the quarter reflected big steps in technology and regulatory progress, but with continued financial losses and revenue still concentrated in early-stage project services.

Source: Analyst estimates for the quarter provided by FactSet.

Company Overview and Core Focus Areas

NuScale Power builds small modular reactors, or SMRs, which are compact nuclear reactors designed for flexible deployment at various scales. Its core product, the NuScale Power Module, can be installed as single units or up to twelve per site, giving customers a range of options from 77 to 924 megawatts electric (MWe).

The company’s main business goal is to commercialize its technology for global, carbon-free baseload power. Key success factors include securing regulatory approvals, forming strategic partnerships, advancing supply chain readiness, and progressing toward converting pipeline customer interest into binding module orders. Regulatory status is especially important; being first to receive U.S. Nuclear Regulatory Commission approval for the 77 MWe design sets NuScale apart from competitors. Progress toward converting pipeline customer interest into binding module orders is now central to its future.

Quarter Highlights: Revenue Trends, Regulatory Wins, and Commercial Activity

The second quarter saw a sharp increase in revenue (GAAP) relative to the prior-year period, mostly from engineering and licensing services supporting the RoPower project in Romania. However, revenue fell short of expectations and decreased 39.6% from the previous quarter’s $13.4 million to $8.1 million. The absence of new commercial module sales continues to be a notable gap for the business.

Cost of sales and general and administrative expenses also rose substantially. Cost of sales, which includes costs for engineering and support services on international projects, increased to $6.3 million, just below the revenue figure. General and administrative costs reached $22.5 million, up from $16.8 million a year ago, driven largely by expanded business development activity as NuScale transitions to commercial operations. While other expenses improved, dropping to $10.5 million from $13.0 million a year earlier, overall losses persisted due to growth investments and ongoing pre-commercial operating costs.

The highlight of the quarter was early receipt of Standard Design Approval from the U.S. Nuclear Regulatory Commission for the 77 MWe SMR design. This regulatory breakthrough gives NuScale unique positioning as the only SMR provider with NRC-certified technology, and expands the company’s commercial opportunity—especially for customers needing higher output solutions.

Work on the RoPower project in Romania continued, with NuScale supporting a Fluor-led engineering study. The company reports about ten advanced customer negotiations in its pipeline, with ongoing discussions involving utilities, data center developers, and industrial buyers in both the U.S. and abroad. The RoPower project remains the main near-term contracted revenue source, with key engineering deliverables expected later in the year and a final investment decision planned for late 2025 or early 2026.

Business Model, Products, and Strategy

NuScale’s flagship product, the NuScale Power Module, is a pressurized water reactor built to deliver 77 MWe per unit. These are modular, allowing for deployment flexibility according to customer needs. Unique features include passive safety systems, which can operate without external power or human intervention, addressing key concerns about nuclear plant safety.

The company’s efforts over recent quarters have focused on advancing both commercialization and manufacturing preparedness. Collaborations with supply chain partners like Doosan and Framatome aim to secure production capability for up to 20 modules annually. Key partners include ENTRA1 for commercialization support, and Fluor as an engineering and construction prime contractor. Management reports that customer interest covers power for data centers, coal plant replacement, hydrogen production, and district heating, reflecting the adaptability of SMR technology.

Liquidity, Capital Resources, and Forward Outlook

NuScale ended the quarter with $489.9 million in combined cash, cash equivalents, and investments. This reserve is expected to provide two or more years of operating runway at current cash expenditures, which have held between $41 million and $44 million per quarter through 2024 and early 2025. The company has raised additional capital through its at-the-market equity program.

Leadership did not provide updated full-year or quarterly financial guidance with this earnings release. Instead, the focus remains on completing first commercial sales and keeping operating costs steady while investing in supply chain activities. Investors are likely to watch for updates on firm customer orders and milestone progress at projects such as RoPower, as these events would be pivotal for the next phase of revenue growth and operational cash flow. SMR does not currently pay a dividend.

Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.