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Fermi (NASDAQ: FRMI | FRMI Price Prediction) reported Q2 2026 results before the open, and the numbers were beside the point. This is a pre-revenue developer, and the story is execution. Management said it hit all five 90-day objectives it laid out in May, headlined by a binding anchor lease with TensorWave and a new CEO. Shares had already rallied on the TensorWave news earlier in the week, closing at $7.60 on August 12, up 22.78% over the prior week. They’re up another 2% this morning in premarket trading.
Anchor Customer Changes the Story
The TensorWave deal is the unlock. It is a 15-year turnkey binding lease covering 222 MW at Project Matador Phase 1, with total contracted revenue of approximately $6.5 billion and two expansion options that could triple the footprint. That gives Fermi a creditworthy anchor to underwrite non-recourse project financing.
Just as important, the board named Lee McIntire CEO to run the shift from development into construction. He brings 40-plus years across Bechtel, CH2M Hill and TerraPower, which is the exact resume this phase needs. I liked the Hillcore build-own-operate-transfer alliance even more: 2.6 GW of incremental generation financed off Fermi’s balance sheet, with buildout tied to signed customer demand rather than forecasts.
Cash Burn Is the Real Watch Item
Cash fell hard as the site scaled. Total cash and restricted cash sits at $91.7 million, and debt stands at $520.1 million. The July convertible offering, which netted $416.80 million, refills the tank, but the accumulated deficit is now $347.7 million. One anchor is only the beginning of a book of business.
Numbers Behind the Milestones
Key Q2 2026 Figures
- Net Loss: $25.8 million, or $0.04 per share
- G&A Expenses: $26.8 million (primary driver of the loss)
- CapEx in PP&E (quarter): $185.0 million, bringing gross PP&E to about $1.55 billion
- Total Assets: $1.76 billion
- Convertible Notes (post-quarter): $431 million of 5.00% notes due 2031, conversion price ~$9.52, capped call effective strike $14.64
The line to watch is capital deployment. Fermi is spending like a construction company because it now is one.
Chairman Draws a Line Under Phase One
Chairman Marius Haas framed it plainly: “Roughly 90 days ago, we put ourselves on the clock with a clear set of aggressive objectives, and the team delivered on all five.” He added, “The momentum we’ve built is real, and we’re doing it with focus, discipline, and execution.” The tone was operational, which fits the moment.
Next Stop: First Electrons
Guidance is now milestone-based. Management targets roughly 200 MW of initial commercial power within six months and about 1.5 GW within 18 to 24 months, with the Hillcore path lifting planned on-site capacity to 4.8 GW within roughly 30 months. On today’s 9:00 AM ET call, you’ll want to hear how McIntire sequences interconnection, permitting, and the TensorWave 2H 2027 ramp.
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