Could Buying NuScale Power Today Set You Up for Life?

NuScale Power (NYSE: SMR) is offering the world a technology that could radically change how energy is generated. Yes, I'm referring to small modular reactors (SMRs), which condense all the benefits of nuclear power -- carbon-free electricity, round-the-clock reliability -- into factory-built reactors that are smaller, easier to deploy, and potentially less expensive than traditional nuclear power plants.

If NuScale can deploy reactors at scale, this stock could make early investors happy with their returns. Indeed, now would be the time to buy NuScale if you're bullish on its future, as the stock is trading near all-time lows.

But before getting too bullish, let's take a closer look at where NuScale is, where it could be going, and if, indeed, it has what it takes to set you up for life.

A first mover with a complicated commercial partnership and faltering revenue

NuScale is in an enviable position: It is the only U.S. nuclear company with a small nuclear reactor (SMR) design approved by the NRC. Considering that SMR technology could unlock a trillion-dollar market opportunity, that advantage is not one to take lightly.

SMR technology, however, hasn't been proven to be commercially viable yet, not by NuScale, or by anyone else. In fact, the biggest factor driving NuScale's stock down right now is radio silence: Utilities companies aren't knocking on NuScale's door for SMRs, and the few who are interested haven't signed firm contracts yet.

This lack of SMR sales has been showing up in its finances. Revenue has dropped substantially from roughly $8 million in the second and third quarters of 2025, respectively, to about $1.8 million in the fourth quarter of that year and $0.6 million in the first quarter of 2026.

Data by YCharts

To help it sell reactors, NuScale partnered with ENTRA1 Energy, a developer that finances and develops projects powered by NuScale reactors. The partnership has already proved fruitful; both energy companies are currently pursuing a big deal with Tennessee Valley Authority (TVA), which could see 72 NuScale reactors providing 6 gigawatts (GWs) of power to Tennessee and portions of six other states.

But here's where things get interesting. The deal is currently non-binding; TVA isn't legally locked into purchasing power, and it could back out without any repercussions. The same can't be said for NuScale: The non-binding agreement triggered "Milestone Contribution 1," which resulted in a roughly $507 million obligation to ENTRA1.

It doesn't end there. If TVA signs a binding customer agreement, NuScale will then have to pay ENTRA1 roughly $16 million for every reactor that's included in the deal. A 72-reactor deployment, then, could represent an expense of about $1.2 billion to ENTRA1, which would be more than the liquidity NuScale had at the end of March.

Put another way: Winning big contracts could actually require NuScale to spend a tremendous amount of cash before it records substantial revenue from reactors.

Could NuScale set you up for life?

Based on the analysis above, I would check any overly bullish sentiments on NuScale stock. It's unclear how much revenue this company could generate in the future, or whether it will be enough to justify a lofty market cap. Aggressive investors might want to buy a few shares of this nuclear energy stock, but the more risk-averse will likely want to look elsewhere for their next investment.

Steven Porrello has no position in any of the stocks mentioned. The Motley Fool recommends NuScale Power. The Motley Fool has a disclosure policy.