NuScale Power ((SMR Quick QuoteSMR - Free Report) ) is a $5 billion provider of advanced nuclear small modular reactor (SMR Quick QuoteSMR - Free Report) technology.

The stock became a Zacks #5 Rank after their Q3 report on November 6 delivered a loss of $1.85 per share, significantly wider than the loss of 18 cents reported in the year-ago quarter. The figure was also wider than the Zacks Consensus Estimate of a loss of 11 cents.

This propelled analysts to lower the Zack EPS Consensus for this year from -$0.50 to -$1.64, representing an annual loss of over 490%.

The company reported revenues of $8.24 million for the quarter, marking a significant increase of 1,635% from $0.48 million in the prior-year quarter. However, the figure missed the Zacks Consensus Estimate by 25.7%. The year-over-year increase was driven by the higher fees from engineering, licensing, and pre-commercial operational services for the RoPower project.

More details on expenses and margins can be found below.

SMR Gets a Rising Sun Boost with ENTRA1 Deal

NuScale, along with Oklo ((OKLO Quick QuoteOKLO - Free Report) ), became a darling of the alternative energy trade this year after the Trump administration rolled out new plans to support the nuclear industry as power demand forecasts surged due to the AI datacenter buildout.

While Oklo received the blessing of Energy Secretary Chris Wright, who used to serve on their board, NuScale was the first and only SMR provider whose technology design received certification by the U.S. Nuclear Regulatory Commission (NRC).

On October 30, I wrote the following note for my TAZR Trader members...

Who knew Japan would come in so strong for US nuclear?

NuScale Power (SMR Quick QuoteSMR - Free Report) , the industry-leading provider of proprietary and innovative advanced small modular reactor (SMR Quick QuoteSMR - Free Report) nuclear technology, issued a press release yesterday congratulating exclusive global strategic partner, ENTRA1 Energy, on being positioned to receive up to $25 billion in investment capital under the newly signed $550 billion U.S.-Japan Framework Agreement.

The bilateral framework agreement, announced by the White House following a meeting between President Donald J. Trump and Prime Minister Sanae Takaichi in Tokyo this week, will mobilize up to $550 billion in public- and private-sector investment to expand critical energy infrastructure and strengthen supply chains.

As part of this initiative, ENTRA1 Energy will develop a fleet of power plants utilizing baseload energy sources. The program will serve fast-growing energy demand from AI data centers, manufacturing and national defense, while creating thousands of high-quality American jobs and reinforcing U.S. energy independence.

“We are proud to support ENTRA1 Energy as they take part in this historic agreement between the United States and Japan,” said John Hopkins, President and Chief Executive Officer of NuScale Power. “This collaboration underscores the central role of advanced nuclear in powering our economy, strengthening alliances and providing the reliable energy needed for AI, manufacturing and critical infrastructure.”

The announcement follows ENTRA1’s recently announced landmark agreement with the Tennessee Valley Authority (TVA) to develop up to 6 gigawatts of new clean baseload power using NuScale’s SMR technology. Together, these initiatives highlight the growing role of advanced nuclear in supporting U.S. reindustrialization, energy security and decarbonization.

Hopkins added: “The U.S.–Japan framework validates the model we’ve built with ENTRA1—pairing proven, NRC-approved SMR technology with world-class development and asset management expertise. Together, we are accelerating the deployment of clean, baseload power at a scale and speed the world urgently needs.”

Major Shareholder Plans to Monetize

But, despite the enthusiasm for SMR technology as the answer to easing the datacenter grid load, one might say the stocks got ahead of themselves since the solutions they are building are over five years away by some estimates.

And NuScale had another weighty problem for shareholders: the biggest investor was Fluor (FLR), who began buying stakes in the company in 2011 when still private, and who was recently petitioned by activist investor Starboard Value to monetize much of their over 111 million shares, about 39% of the company.

This was the primary driver of a steep sell-off in October from $53 to $33. And while the stock recovered into early November back above $40, the two companies officially announced the planned monetization of NuScale shares on November 6, as well as a capital raise for the SMR designer.

SMR Q3 Operating Details

SMR’s third-quarter 2025 gross margin decreased to 32.9% from 37.9% in the third quarter of 2024.

Operating expenses increased 1,213.5% year over year to $541.15 million. In the reported quarter, research & development expenses declined 9.1% year over year to $11.05 million. General & administrative expenses increased 2950.5% year over year to $519.22 million. 

The company reported an operating loss of $538.44 million, wider than the loss of $41.02 million reported in the year-ago quarter.

As of Sept. 30, 2025, NuScale Power had cash and cash equivalents and short-term investments of $692.1 million compared with $420.7 million as of June 30, 2025.

Bottom line: The small modular reactor (SMR Quick QuoteSMR - Free Report) industry is exciting and many experts believe the country will need many dozens  of them to support the datacenter buildout. NuScale will likely be an important player given their success thus far in securing NRC certification and big partnerships. While shares appear on sale, investors will probably still need to see a few quarters of stabilization in expenses and losses to make the long-term investment. The Zacks Rank will let you know.