Follow Oklo to never miss an important update.
Oklo is still in the early stages of building its business, reporting zero revenue for the quarter as it works to bring its first small nuclear reactors online. The company lost 28 cents per share, which was slightly more than the 27 cents analysts expected. While the lack of sales is normal for a pre-commercial energy firm, it means the business is currently living entirely on its cash reserves while it navigates the long process of getting plants built and approved.
The focus for the company is its pipeline of potential projects, which has grown to about 14 gigawatts of power. This includes a major deal with data center developer Switch and a partnership with Equinix. These tech companies are looking for reliable, carbon-free power to run AI data centers, which require massive amounts of electricity. Oklo's success depends on turning these early agreements into working plants at sites like the Idaho National Laboratory, but that remains a multi-year effort with significant regulatory hurdles ahead.
See the full quarter, and how our tracked metrics did
Source: Company earnings report
The company is expected to report a loss of about 27 cents per share with no revenue, as it is still in the early stages of building its small nuclear reactors. For a business at this stage, the most important details will be updates on its timeline for getting regulatory approval and any new agreements with customers to buy power in the future.
Barclays maintained its overweight rating, which is its way of saying it expects the stock to perform better than others in the sector. However, the firm lowered its price target from $76 to $59. This adjustment brings the target closer to the current stock price but still sits well above where the shares trade today. While the lower target reflects a more cautious view of the stock's near-term path, the firm's decision to keep its positive rating suggests it still sees value in Oklo's long-term plan to build small nuclear reactors.
Source: Barclays
Piper Sandler lowered its target for the stock from $55 to $49 on Monday. Even with the lower target, the firm still expects the stock to rise from its current level of about $27. Analysts across the industry have an average target of about $78. While the target move is a slight step back, it does not change the firm's overall rating on the company. For a young nuclear energy business like this, these target changes are common as analysts adjust their models for the long timeline it takes to build and launch small reactors.
Source: Piper Sandler
Oklo has been chosen by the Department of Energy to move forward with its Groves 2 Forge facility. This project focuses on producing isotopes, which are specific forms of atoms used in medicine and industry, and is part of a national effort to speed up the testing of new nuclear reactor designs.
This selection gives Oklo access to government resources and expertise as it tries to prove its technology works at scale. While the company is still in the early stages of building its first commercial reactors, deep ties with the Department of Energy help clear the path for future regulatory approvals and technical testing.
Source: Business Wire
The company has missed analyst expectations in six of its last eight reports, suggesting management is struggling to accurately forecast the high costs of building its first reactors.
| Expectation | |
|---|---|
| EPS | $-0.27 |
| Revenue | $1M |