NuScale Power Reports Q4 2025 Revenue Decline Amid Price Target Cuts
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3 days ago
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Should l Buy SMR?
Source: NASDAQ.COM
- Disappointing Financial Results: NuScale Power reported Q4 2025 revenue of $31.5 million, a 15% year-over-year decline from $37 million, leading to a 3.6% drop in stock price the following day as investor confidence waned.
- Significant Stock Decline: Following the poor earnings report, NuScale Power's stock plummeted 26.5% in February and continued to fall by 15.6% in March, indicating a prevailing pessimism about the company's future prospects.
- Wave of Price Target Cuts: Several firms quickly downgraded their price targets post-earnings, with Canaccord slashing its target from $60 to $25 and Goldman Sachs from $20 to $14, reflecting concerns over the company's profitability.
- Long-Term Investment Outlook: Despite facing short-term challenges, NuScale Power remains a leader in the small modular reactor space, and investors should monitor its progress towards commercial operations in 2030 to assess its long-term investment potential.
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Analyst Views on SMR
Wall Street analysts forecast SMR stock price to rise
13 Analyst Rating
5 Buy
6 Hold
2 Sell
Hold
Current: 9.860
Low
18.50
Averages
32.77
High
60.00
Current: 9.860
Low
18.50
Averages
32.77
High
60.00
About SMR
NuScale Power Corporation is a provider of proprietary advanced small modular reactor (SMR) nuclear technology. The NuScale Power Module, the Company's SMR technology, is a small pressurized water reactor that can generate approximately 77 megawatts of electricity (MWe) or 250 megawatts thermal (gross) and can be scaled to meet customer needs through an array of flexible configurations of up to 924 MWe (12 modules) of output. In addition to the sale of NPMs, it offers a diversified suite of services throughout the development and operating life of the power plant. The Company's suite of services is planned to include licensing support, testing, training, fuel supply services and program management, among others. It serves a range of customers consisting of domestic and international governments, utilities, state-owned enterprises and technology and industrial companies in need of carbon-free, reliable energy.
About the author

Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
- Massive Market Potential: NuScale Power is poised to benefit directly from a nuclear energy market revival valued at up to $10 trillion globally, particularly as electricity demand is expected to rise by approximately 4% annually, driven by the rapid growth of the artificial intelligence sector.
- Demand for Technological Support: During the latest earnings call, management emphasized that NuScale's technology can effectively support the increasing energy demands of AI data centers, with external experts agreeing that nuclear energy presents a viable solution to meet this demand.
- Advantages of SMRs: Research from Bank of America highlights that NuScale's focus on designing and manufacturing small modular reactors (SMRs) offers five key advantages over traditional large-scale nuclear plants, including better upfront affordability, improved safety, modularization, smaller footprints, and reduced CO2 emissions.
- Investment Risks and Patience: While optimistic about NuScale Power's business outlook, the company is currently valued at less than $4 billion and is expected to continue incurring losses over the next three years, necessitating investor patience to navigate potential shareholder dilution and long-term gains.
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- Lawsuit Background: Bleichmar Fonti & Auld LLP has announced a class action lawsuit against NuScale Power and its executives for securities fraud, resulting in a significant stock drop of 12.4% on November 10, 2025, from $32.46 to $28.43 per share, which negatively impacts investor confidence.
- Allegations Details: The lawsuit claims that NuScale misled investors by exaggerating the capabilities of its partnership with ENTRA1 Energy LLC, asserting it had extensive experience in nuclear project development, while in reality, ENTRA1 was merely a support entity for a single investor and had never successfully executed any significant projects.
- Financial Impact: NuScale's general and administrative expenses surged to $519 million in Q3 2025, primarily due to a $495 million payment to ENTRA1 for services, indicating a major mismanagement of finances that could impair future profitability.
- Legal Consequences: Investors must apply by April 20, 2026, to be appointed as lead plaintiffs in the case, and if successful, could lead to compensation for affected shareholders, further impacting NuScale's market reputation and shareholder trust.
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- Class Action Notice: Rosen Law Firm reminds investors who purchased NuScale Power Class A common stock between May 13, 2025, and November 6, 2025, to apply as lead plaintiffs by April 20, 2026, to participate in the class action and seek compensation.
- Lawsuit Background: The lawsuit alleges that NuScale failed to disclose ENTRA1 Energy LLC's lack of experience in nuclear projects during the class period, exposing its commercialization strategy to significant undisclosed risks, resulting in investor losses.
- Law Firm's Strength: Rosen Law Firm specializes in securities class actions and has recovered over $438 million for investors in 2019 alone, demonstrating its successful track record and extensive experience in this field.
- Investor Selection Advice: Investors are advised to carefully choose legal counsel and avoid inexperienced intermediaries to ensure effective legal representation and support in the class action.
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- Financial Loss Surge: NuScale Power reported a staggering 3,000% increase in general and administrative expenses to $519 million in Q3 2025, resulting in a quarterly net loss of $532 million, significantly worsening the company's financial health compared to a $46 million loss in the prior year.
- Investor Confidence Erosion: Following the failure to disclose risks associated with its partnership with ENTRA1 Energy LLC, NuScale's stock price plummeted by $4.03, or 12.4%, on November 10, 2025, directly impacting investor confidence and market performance.
- Legal Action Context: The class action lawsuit alleges that NuScale made materially false statements throughout the class period, failing to disclose ENTRA1's lack of experience in nuclear projects, thereby exposing investors to significant potential losses.
- Market Reaction Analysis: Analysts highlighted that ENTRA1, a three-year-old company, lacks any operational experience, and the revelation of this information poses substantial risks to NuScale's commercialization strategy, further exacerbating market concerns about its future prospects.
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- Class Action Initiated: Bronstein, Gewirtz & Grossman LLC has filed a class action lawsuit against NuScale Power, seeking damages for investors who purchased securities between May 13, 2025, and November 10, 2025, highlighting investor concerns over potential risks associated with the company.
- Allegations of False Statements: The complaint alleges that NuScale made false and misleading statements during the class period, failing to disclose ENTRA1's lack of experience in the nuclear sector, which could lead to significant reputational and stock price damage for the company.
- Commercialization Strategy Risks: The lawsuit points out that NuScale entrusted its commercialization and deployment strategy to an inexperienced entity, exposing its strategy to undisclosed risks of failure, delays, and regulatory challenges, potentially impacting future business growth.
- Investor Rights Protection: Investors have until April 20, 2026, to request to be appointed as lead plaintiff, with the law firm promising to support investors on a contingency fee basis, ensuring that they incur no upfront costs in the pursuit of potential recoveries.
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- Stock Price Volatility: NuScale Power's stock surged over 250% in just four months, rising from around $13 to $50, but subsequently shed more than 80% of its value, currently trading at just $10, reflecting market uncertainty about its future.
- Analyst Expectation Adjustments: Despite significant price fluctuations, analysts have revised their 12-month price targets for NuScale Power, with the current average target at $18, implying an 80% growth potential, while the most bullish analyst sets a target of $28 and the most bearish at $11.50.
- Electricity Demand Growth: From 2024 to 2030, electricity demand is expected to grow at around 4% annually, primarily driven by artificial intelligence, with data centers requiring substantial electricity, presenting a potential market opportunity for NuScale Power.
- Nuclear Market Outlook: NuScale Power focuses on small modular reactors (SMRs), with estimates suggesting a $10 trillion opportunity in the global nuclear market; although SMRs represent only a part of the overall nuclear renaissance, the long-term potential still signifies hundreds of billions in value.
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