NuScale's Revenue Fell 99%. Its Cash Pile Grew By $900 Million. Here's Why That's the Real Story.
The SMR developer is diluting its investors with big share offerings.
Overview
NuScale (NYSE: SMR), a developer of small modular reactors (SMRs), posted its second-quarter results on Aug. 5. Its revenue plunged 99% year over year to just $75,000, but it ended the quarter with $1.9 billion in cash, cash equivalents, and liquid investments. That was an increase of $900 million from the first quarter and a near four-fold jump from a year ago. Let's see why NuScale's liquidity matters more than its declining revenue.
NuScale's SMRs are much smaller than conventional nuclear reactors. They're prefabricated to reduce the time, labor, and costs for building a nuclear power plant. A single SMR generates only 77 MWe, but it can be deployed with other reactors to construct higher-capacity plants. That modular flexibility makes its SMRs well-suited for remote areas.
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Originally published at www.fool.com.