NuScale Reported Just $75,000 in Quarterly Revenue and Announced a $750 Million Share Sale. Is The Dilution Worth the Dream?

NuScale Power's (NYSE: SMR) big goal is to mass-produce small-scale modular nuclear reactors (SMRs). These factory-built reactors could help to revolutionize the nuclear power industry, but there's one small problem. NuScale Power has yet to get a customer to sign on the dotted line. And even then, that's just the start of the process of proving the company's SMR technology is a winner. Here's the trade-off investors have to consider when looking at NuScale Power today.

NuScale Power is a money-losing start-up

NuScale Power is only appropriate for the most aggressive investors. To put the risk here into perspective, the company generated just $75,000 in revenue in the second quarter of 2026. However, its business expenses totaled over $64 million. To be fair, it's a start-up in a capital-intensive business, so the fact that it is losing money isn't shocking. But the yawning gap between revenues and expenses highlights the risk.

Another risk, however, is that the losses here mean NuScale is burning through cash. It has to generate money in some way if it wants to keep supporting its business. And in this situation, a key source of funding is the sale of stock. It recently announced plans to sell up to $750 million in shares. Every new share issued dilutes the nuclear power upstart's existing shareholders.

The truth is, most investors will probably be better off waiting until NuScale Power has at least signed a definitive contract for one of its SMRs. However, even then, the company still has a lot to prove. After a contract is signed, the company needs to successfully build and deliver an SMR. And that SMR needs to operate as expected. Assuming everything goes well with that first SMR, the company still needs to ramp up production to a level that allows it to operate profitably over the long term. There are a lot of puzzle pieces that need to fit together perfectly here.

NuScale Power is only appropriate for risk takers

Surging electricity demand, especially from artificial intelligence data centers that could benefit from dedicated SMRs, suggests a significant opportunity for NuScale Power. However, the company's early stage of development means costs are likely to continue to outrun revenues for a while longer. And that means only the most aggressive investors should even consider owning NuScale Power today. Dilution is a big deal, but it is just one of many risks you'll need to keep in mind.

Reuben Gregg Brewer has no position in any of the stocks mentioned. The Motley Fool recommends NuScale Power. The Motley Fool has a disclosure policy.