NuScale Power Under Investigation, Stock Price Plummets
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
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Should l Buy SMR?
Source: Businesswire
- Expense Surge: NuScale Power reported a staggering 3,000% increase in general and administrative expenses to $519 million in Q3 2025, compared to $17 million the previous year, primarily due to a $495 million payment to ENTRA1 Energy LLC, resulting in a quarterly net loss of $532 million, up from $46 million year-over-year.
- Analyst Concerns: Following the earnings announcement, Guggenheim Securities raised serious doubts about ENTRA1, describing it as a three-year-old company with no operational history, financing, or projects, and lacking information on its management or capitalization, suggesting it primarily supports the activities of its CEO, Wadie Habboush.
- Stock Price Reaction: NuScale's stock price fell by $4.03, or 12.4%, over two trading days to close at $28.43 per share, indicating significant investor concern regarding the company's financial health and leading to substantial losses for shareholders.
- Investor Losses: In light of the deteriorating financial situation, investors may have opportunities to pursue claims for recovery, as the Law Offices of Frank R. Cruz have initiated an investigation into NuScale, highlighting the potential for legal action as a means of investor protection.
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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: 14.640
Low
18.50
Averages
32.77
High
60.00
Current: 14.640
Low
18.50
Averages
32.77
High
60.00
About SMR
NuScale Power Corporation is a provider of proprietary advanced small modular reactor nuclear technology. The NuScale Power Module, the Company's SMR technology, is a small pressurized water reactor that can generate 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 governments, political subdivisions, state-owned enterprises, investor-owned utilities and other technology and industrial companies, both in domestic and international markets.
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.
- Lawsuit Background: A class action lawsuit has been filed by Bleichmar Fonti & Auld LLP against NuScale Power and its executives for securities fraud, resulting in a significant stock drop of over 12.4% in just two days, from $32.46 to $28.43, highlighting investor concerns over the company's financial transparency.
- Financial Missteps: NuScale disclosed a staggering increase in general and administrative expenses from $17 million to $519 million in Q3 2025, primarily due to a $495 million payment to ENTRA1 for services, raising serious questions about the company's financial health and management practices.
- Partner Issues: While NuScale touted ENTRA1's extensive experience in power project development, investigations revealed that ENTRA1 had no significant project experience, which could erode investor trust in NuScale and negatively impact its market performance.
- Legal Implications: Investors are encouraged to apply to lead the case by April 20, 2026, and if successful, the lawsuit could have profound implications for NuScale's future operations and shareholder value, particularly regarding its reputation and compliance in the nuclear energy sector.
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- Expense Surge: NuScale Power reported a staggering 3,000% increase in general and administrative expenses to $519 million in Q3 2025, compared to $17 million the previous year, primarily due to a $495 million payment to ENTRA1 Energy LLC, resulting in a quarterly net loss of $532 million, up from $46 million year-over-year.
- Analyst Concerns: Following the earnings announcement, Guggenheim Securities raised serious doubts about ENTRA1, describing it as a three-year-old company with no operational history, financing, or projects, and lacking information on its management or capitalization, suggesting it primarily supports the activities of its CEO, Wadie Habboush.
- Stock Price Reaction: NuScale's stock price fell by $4.03, or 12.4%, over two trading days to close at $28.43 per share, indicating significant investor concern regarding the company's financial health and leading to substantial losses for shareholders.
- Investor Losses: In light of the deteriorating financial situation, investors may have opportunities to pursue claims for recovery, as the Law Offices of Frank R. Cruz have initiated an investigation into NuScale, highlighting the potential for legal action as a means of investor protection.
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- Class Action Initiated: Bronstein, Gewirtz & Grossman, LLC has announced 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 exposed investors to significant undisclosed risks.
- Investor Rights Protection: Affected investors are encouraged to apply to be lead plaintiffs by April 20, 2026, indicating the urgency of legal proceedings and the firm's commitment to protecting investor rights.
- No-Cost Fee Commitment: The law firm promises to represent investors on a contingency fee basis, meaning they will only charge fees if they successfully recover losses, thereby reducing the financial burden on investors seeking legal recourse.
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- Class Action Initiated: The Portnoy Law Firm has filed a class action against NuScale Power on behalf of investors who purchased securities between May 13 and November 6, 2025, with a deadline for lead plaintiff motions set for April 20, 2026, indicating significant investor concern over potential risks associated with the company.
- Deteriorating Financials: NuScale reported a staggering 3,000% increase in general and administrative expenses to $519 million in Q3 2025, primarily due to a $495 million payment to ENTRA1, resulting in a quarterly net loss soaring to $532 million, highlighting severe deterioration in the company's financial health.
- Partner Risk: The lawsuit alleges that NuScale failed to disclose ENTRA1's lack of experience in building and operating nuclear projects during their exclusive commercialization partnership, exposing the company's commercialization strategy to significant undisclosed risks of failure, which could impact future project timelines.
- Stock Price Volatility: Following the financial disclosure on November 6, 2025, NuScale's Class A shares fell over 12% within two trading days, reflecting a pessimistic market sentiment regarding the company's future prospects and severely undermining investor confidence.
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- Legal Investigation Initiated: Faruq & Faruqi, LLP is investigating potential claims against NuScale Power Corporation, particularly for investors who purchased securities between May 13, 2025, and November 6, 2025, highlighting a focus on investor rights.
- Investor Contact Information: The firm encourages affected investors to contact partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310) to discuss their legal rights, demonstrating the firm's commitment to client service.
- Class Action Reminder: Faruq & Faruqi reminds investors of the April 20, 2026 deadline to seek lead plaintiff status in a federal securities class action filed against NuScale, emphasizing the importance of timely action to protect investor rights.
- Potential Market Impact: This investigation may negatively affect NuScale's stock price, reflecting market concerns regarding the company's compliance and financial health, prompting investors to closely monitor further developments.
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- Class Action Initiation: NuScale Power Corporation is facing a class action lawsuit for alleged violations of securities laws during stock trading from May 13 to November 6, 2025, with investors able to apply as lead plaintiffs by April 20, 2026, indicating significant legal risks that could undermine market trust in the company.
- Surging Financial Losses: In its Q3 2025 report, NuScale revealed a staggering 3,000% increase in general and administrative expenses to $519 million, primarily due to a $495 million payment to ENTRA1, resulting in a quarterly net loss skyrocketing to $532 million, reflecting a severe deterioration in the company's financial health.
- Partnership Risk: The lawsuit alleges that NuScale failed to disclose ENTRA1's lack of experience in nuclear projects, which could expose its commercialization strategy to significant risks, impacting future project advancements and investor confidence.
- Stock Price Volatility: Following the financial disclosures on November 6, 2025, NuScale's shares plummeted over 12% in two days, highlighting market concerns regarding its financial condition and partner capabilities, potentially leading to decreased investor confidence in the company's future.
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