Altman-supported nuclear power newcomer Oklo's new fuel facility has been approved, but Q3 losses unexpectedly widened | Earnings report insights
In the third quarter, Oklo reported an EPS loss of $0.20 and a net loss of $29.72 million, which exceeded analysts' expectations by more than 40% and nearly 60%, far surpassing the losses from the same period last year. After the earnings announcement, the stock price fell more than 3% in after-hours trading. On Tuesday, Oklo disclosed that the U.S. Department of Energy approved the nuclear safety design agreement for its fuel manufacturing facility, a key step in the construction of the Aurora-INL power station. This fuel facility will manufacture fuel for Oklo's first commercial-scale power station, which was selected for the Department of Energy's reactor pilot program in August
OpenAI CEO Sam Altman-supported small modular reactor (SMR) nuclear power leader Oklo Inc. has yet to generate operating revenue. Although recent progress has been made in fuel manufacturing facilities, the latest financial data highlights the company's difficulties in achieving profitability.
After the U.S. stock market closed on Tuesday, November 11, Oklo announced a third-quarter earnings per share (EPS) loss of $0.20, exceeding analysts' expected loss of $0.14 by over 40%, and significantly widening from a loss of $0.08 in the same period last year. In the third quarter, Oklo reported a net loss of $29.72 million, nearly 60% higher than analysts' expected net loss of $18.20 million, and also far exceeding the loss of $9.96 million a year ago.
After the earnings announcement, Oklo's stock price fell nearly 6.6% on Tuesday and further declined in after-hours trading, with a drop of over 3% at one point. As of Tuesday's close, Oklo's stock price has risen 391% year-to-date, with a 361% increase over the past 12 months, reflecting investor optimism about SMR technology and the nuclear power industry's prospects.
Earlier on Tuesday, Oklo achieved key regulatory progress at its fuel manufacturing facility at the Idaho National Laboratory. The U.S. Department of Energy approved Oklo's nuclear safety design agreement for the fuel manufacturing facility planned at the Idaho National Laboratory. This progress clears obstacles for the fuel supply of the company's first commercial-scale power plant, Aurora-INL, and adds confidence to the strict timeline for completing the pilot reactor by mid-2026.
Financial Performance Under Pressure
The financial report shows that Oklo's operating loss in the third quarter reached $36.30 million, primarily driven by salaries, equity incentives, and professional fees related to capital market activities. The company's research and development operating expenses for the third quarter were $14.90 million, nearly 55% higher than analysts' expected expenditure of $9.62 million. As of the end of the third quarter, Oklo had cash and cash equivalents of $410 million and marketable securities of $773.5 million.
As a startup that has yet to generate revenue, Oklo's high valuation and stock performance continue to raise questions on Wall Street. The company has garnered attention for its planned merger with a special purpose acquisition company led by Sam Altman in 2024, but this has been accompanied by scrutiny of the feasibility of its commercialization timeline. To date, the company has not obtained regulatory approval for its first nuclear power plant.
On August 11 of this year, Oklo announced a narrower loss for the second quarter after the market closed, leading to a stock price surge of over 9% the following day. At that time, the company stated that quarterly cash consumption was in line with expectations and reaffirmed its commercial operational goals.
After the market closed on Tuesday, the market's reaction to the financial report was relatively calm. The company's stock price faced a sharp correction after reaching a historic high of $174.14 on October 14, impacted alongside other nuclear stocks like Bloom Energy In the absence of substantial financial progress, the stock primarily relies on market sentiment and news-driven trading.
Key Breakthrough in Fuel Facility, Reactor Delivery Timeline Under Test
Despite poor financial performance, Oklo is making steady progress on regulatory and project execution fronts. The U.S. Department of Energy approved the company's nuclear safety design agreement for its fuel manufacturing facility on Tuesday, a critical step in the construction of the Aurora-INL power station. This fuel facility will manufacture fuel for Oklo's first commercial-scale power station, which was selected for the Department of Energy's reactor pilot program in August, while the fuel facility itself was chosen for another independent project at the end of September.
Oklo CEO Jacob DeWitte stated that this progress is a sign of the company's clear advancement. DeWitte said in a statement, "Advanced fuel manufacturing and recycling technologies represent a significant breakthrough for our business, addressing fuel supply challenges while improving fuel economics and creating new revenue opportunities."
In September, Oklo broke ground on its first nuclear power station at the Idaho National Laboratory, one of 42 federally funded laboratories in the U.S. The company stated that the licensing approval under the Department of Energy's reactor pilot program is progressing, with on-site controlled blasting expected to begin in mid-November and full excavation planned for January 2026.
Oklo faces urgent delivery pressure. The Department of Energy's pilot program requires at least three test reactors to be built at national laboratories by July 2026, which is several months to even years ahead of the company's own deployment target of 2027 or 2028.
The company also announced on Tuesday that it has signed a memorandum of understanding with Battelle Energy Alliance to expand research collaboration in advanced fuels and materials. DeWitte stated, "This collaboration enhances the U.S. leadership in advanced nuclear energy and demonstrates how Oklo's deployment of fast reactor models accelerates learning. We are building our first power station as a fully functional commercial product, while also aiming for faster learning, quicker optimization, and continuous reduction of future deployment costs."
Recently, Oklo has also faced external skepticism regarding its high valuation and political connections. According to media reports, former board member Chris Wright currently serves as the U.S. Secretary of Energy, although he has recused himself from matters related to the company as required upon taking the position
