Terrestrial Energy Reports Second Quarter 2026 Results
~ NRC Approves PIE Methodology Topical Report, Advancing the IMSR Licensing Basis ~
~ Texas A&M Agreements Signed Covering Development Activities and Ground Leases Providing Site Control for Completion of Characterization Work at RELLIS ~
~ Updates to Estimated Unit Economics Raises Lifetime Revenue Per Plant to
~ Expands Serviceable Addressable Market Estimate to
“This quarter we reported developments across all three pillars of our business plan. We secured site control at the Texas A&M-RELLIS site, advanced projects TETRA and TEFLA, and received NRC approval of our Postulated Initiating Events methodology,” said
Engineering and Regulatory Highlights:
-
U.S. Nuclear Regulatory Commission (NRC) approved the Company's Postulated Initiating Events (PIE) methodology Topical Report, following its earlier approval of the IMSR Principal Design Criteria (PDC) Topical Report. Together these Topical Reports establish foundational elements of the IMSR licensing basis and can be referenced in future applications without re-evaluation. -
Continued to advance Project TETRA, the Company’s test reactor pilot project, and Project TEFLA, its fuel line pilot project, both partnership projects with the
U.S. Department of Energy . - Added irradiation cycles to the Company’s graphite testing and qualification program at NRG Petten, supporting materials’ qualification, licensing readiness and supplier down-selection.
-
Appointed
Kathy McCarthy to the Board of Directors, who has a career in nuclear technology and major project development at leading national laboratories. Concurrently,Pamela Cowan joined as EVP of Engineering, with more than 35 years of nuclear industry engineering experience, including senior leadership roles at Westinghouse andHoltec .
Supply Chain Developments:
- Continued Westinghouse engagement for the supply of uranium tetrafluoride (UF4) at standard enrichment, a key component in IMSR Fuel Salt supply.
-
Signed an engineering service agreement with
Zachry Nuclear to support site characterization and data-collection at the Texas A&M-RELLIS site.
Commercial Pipeline of IMSR Plant Projects:
-
Signed ground lease and research agreements with
Texas A&M University System for use of 77 acres at the Texas A&M-RELLIS site, securing site control and the path to complete site characterization work and environmental evaluation work for the IMSR Plant and other facilities. -
Executed a Memorandum of Understanding with
Riot Platforms, Inc .
Unit Economics Update:
-
Estimate of cumulative lifetime revenue per IMSR Plant increased to
$2.7 billion from$2.1 billion on a blended gross margin of 33%. 79% of lifetime revenues occurs after construction of the IMSR Plant from Core-unit and Fuel Salt supply under long term contract. Gross margins for the Core-unit and Fuel Salt supply businesses estimated to be 33% and 40%, respectively. -
Updated 2050 serviceable addressable market to
$2.3 trillion .
Performance, Liquidity and Capital Structure:
-
Reported a net loss of
$9.4 million for second quarter, compared to a net loss of$10.5 million for first quarter. This change was primarily driven by:$1.1 million decrease in R&D, reflecting timing and scope variances on key tests, including additional graphite irradiation cycles at NRG Petten.$0.7 million increase in G&A due to increased personnel-related expenses and stock-based compensation.$0.9 million increase in Other Income (Expense) due to decreased Interest Expense and an increase in Interest and Dividend Income.
-
Ended second quarter with
$283.4 million in cash, cash equivalents and investments. -
Reported cash burn of
$6.4 million , a decrease of$1.5 million compared to first quarter. The decrease largely from a shift in the timing of certain testing activities. - Ended second quarter with 105.9 million shares issued and outstanding and unchanged from first quarter end, consisting of 82.7 million common shares and 23.2 million exchangeable shares.
Conference Call and Webcast
Terrestrial Energy will host a conference call today at
About Terrestrial Energy
Terrestrial Energy is a developer of
Forward-Looking Statements
The statements contained in this press release that are not purely historical are forward-looking statements. These forward-looking statements include, but are not limited to, statements regarding our expectations, milestones, hopes, beliefs, intentions or strategies regarding the future. In addition, any statements that refer to projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. The words “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intends,” “may,” “might,” “plan,” “possible,” “potential,” “predict,” “project,” “should,” “will,” “would” and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking.
The forward-looking statements contained in this press release are based on our current expectations and beliefs concerning future developments and their potential effects on the Company. There can be no assurance that future developments affecting the Company will be those that we have anticipated. These forward-looking statements speak only as of the date of this press release and involve a number of risks, uncertainties (some of which are beyond our control) or other assumptions that may cause actual results or performance to differ materially from those expressed or implied by these forward-looking statements. Factors that may cause actual results to differ materially from current expectations include, but are not limited to: (1) risks related to the development, manufacturing and construction of IMSR Plants and key components, including potential delays, cost overruns and contractor performance issues; (2) the Company’s ability to obtain applicable regulatory approvals and licenses on a timely basis or at all; (3) the possibility that our estimates regarding lifetime revenue and gross margin of IMSR Plants and our serviceable addressable market or the underlying assumptions may prove to be incorrect; (4) the ability of management to manage growth; (5) the possibility that the Company may be adversely affected by other economic, business, and/or competitive factors, including from alternative energy technologies, energy price volatility, and competition from other advanced reactor developers; (6) potential supply chain constraints and cost inflation for specialized nuclear-grade materials and components; (7) any failure to comply with the laws and regulations governing the use, transportation, and disposal of toxic, hazardous and/or radioactive materials; (8) changes in domestic and foreign business, market, financial and political conditions, and in applicable laws and regulations, including tariffs; (9) the ability to raise additional funding in the future; (10) the outcome of any legal proceedings that may be instituted against the Company; and (11) other risk factors described herein as well as the risk factors and uncertainties described in the documents filed by the Company from time to time with the U.S. Securities and Exchange Commission (the “SEC”).
The foregoing list of risk factors is not exhaustive. You should carefully consider the foregoing risk factors and the other risks and uncertainties described in the documents filed by the Company from time to time with the
In addition, the information contained in this press release is provided as of the date hereof and may change, and the Company and its representatives and affiliates specifically disclaim any obligation to, and do not intend to, update or revise any forward-looking statements, whether as a result of new information, inaccuracies, future events or otherwise, except as may be required under applicable securities laws. Information contained on our website is not a part of or incorporated into this press release.
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||||||||
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Condensed Consolidated Balance Sheets |
||||||||
|
(in thousands, except share data) |
||||||||
|
(Unaudited) |
||||||||
|
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|
|
|
|
||||
|
|
|
|
||||||
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|
2026 |
2025 |
||||||
|
ASSETS |
|
|
|
|
||||
|
Current assets |
|
|
|
|
||||
|
Cash and cash equivalents |
$ |
130,737 |
|
$ |
97,164 |
|
||
|
Short-term investments |
|
142,781 |
|
|
200,626 |
|
||
|
Prepaid expenses and other current assets |
|
1,274 |
|
|
1,769 |
|
||
|
Total current assets |
|
274,792 |
|
|
299,559 |
|
||
|
|
|
|
|
|
||||
|
Property and equipment, net |
|
806 |
|
|
835 |
|
||
|
Long-term investments |
|
9,911 |
|
|
— |
|
||
|
Intangible assets, net |
|
688 |
|
|
708 |
|
||
|
Right-of-use assets |
|
3,595 |
|
|
1,814 |
|
||
|
Other assets |
|
76 |
|
|
64 |
|
||
|
Total Assets |
$ |
289,868 |
|
$ |
302,980 |
|
||
|
|
|
|
|
|
||||
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
||||
|
Current liabilities |
|
|
|
|
||||
|
Accounts payable and accrued expenses |
$ |
4,335 |
|
$ |
5,501 |
|
||
|
Operating lease liabilities, current |
|
1,803 |
|
|
383 |
|
||
|
Finance lease liabilities, current |
|
33 |
|
|
33 |
|
||
|
Total current liabilities |
|
6,171 |
|
|
5,917 |
|
||
|
|
|
|
|
|
||||
|
Operating lease liabilities, noncurrent |
|
2,006 |
|
|
1,601 |
|
||
|
Finance lease liabilities, noncurrent |
|
37 |
|
|
56 |
|
||
|
Total liabilities |
|
8,214 |
|
|
7,574 |
|
||
|
|
|
|
|
|
||||
|
Commitments and Contingencies (Note 11) |
|
|
|
|
||||
|
|
|
|
|
|
||||
|
Stockholders’ Equity |
|
|
|
|
||||
|
Common shares, |
|
8 |
|
|
8 |
|
||
|
Exchangeable shares, |
|
2 |
|
|
2 |
|
||
|
Additional paid-in-capital |
|
424,620 |
|
|
418,815 |
|
||
|
Accumulated deficit |
|
(144,527 |
) |
|
(124,625 |
) |
||
|
Accumulated other comprehensive income |
|
1,551 |
|
|
1,206 |
|
||
|
Total stockholders’ equity |
|
281,654 |
|
|
295,406 |
|
||
|
Total liabilities and stockholders’ equity |
$ |
289,868 |
|
$ |
302,980 |
|
||
|
|
||||||||||||||||
|
Condensed Consolidated Statements of Operations and Comprehensive Loss |
||||||||||||||||
|
(in thousands, except share data) |
||||||||||||||||
|
(Unaudited) |
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
Three months ended |
|
Six months ended |
||||||||||||
|
|
|
|
|
|
||||||||||||
|
|
|
2026 |
|
2025 |
|
2026 |
|
2025 |
||||||||
|
OPERATING EXPENSES |
|
|
|
|
|
|
|
|
||||||||
|
Research and development costs |
$ |
3,498 |
|
$ |
1,441 |
|
$ |
8,064 |
|
$ |
2,849 |
|
||||
|
General and administrative |
|
8,029 |
|
|
3,531 |
|
|
15,333 |
|
|
6,820 |
|
||||
|
Depreciation and amortization |
|
145 |
|
|
198 |
|
|
206 |
|
|
379 |
|
||||
|
Total Operating Expenses |
|
11,672 |
|
|
5,170 |
|
|
23,603 |
|
|
10,048 |
|
||||
|
OPERATING LOSS |
|
(11,672 |
) |
|
(5,170 |
) |
|
(23,603 |
) |
|
(10,048 |
) |
||||
|
|
|
|
|
|
|
|
|
|
||||||||
|
OTHER INCOME (EXPENSE) |
|
|
|
|
|
|
|
|
||||||||
|
Government grants |
|
40 |
|
|
145 |
|
|
88 |
|
|
168 |
|
||||
|
Interest expense |
|
— |
|
|
(1,238 |
) |
|
(2 |
) |
|
(2,537 |
) |
||||
|
Interest expense – related party |
|
— |
|
|
(91 |
) |
|
— |
|
|
(162 |
) |
||||
|
Interest and dividend income |
|
2,481 |
|
|
8 |
|
|
3,934 |
|
|
11 |
|
||||
|
Foreign exchange (loss) gain |
|
(170 |
) |
|
97 |
|
|
(204 |
) |
|
67 |
|
||||
|
OTHER INCOME (EXPENSE) |
|
2,351 |
|
|
(1,079 |
) |
|
3,816 |
|
|
(2,453 |
) |
||||
|
|
|
|
|
|
|
|
|
|
||||||||
|
Net loss before income tax |
|
(9,321 |
) |
|
(6,249 |
) |
|
(19,787 |
) |
|
(12,501 |
) |
||||
|
Income tax expense |
|
(78 |
) |
|
— |
|
|
(115 |
) |
|
— |
|
||||
|
Net loss |
|
(9,399 |
) |
|
(6,249 |
) |
|
(19,902 |
) |
|
(12,501 |
) |
||||
|
|
|
|
|
|
|
|
|
|
||||||||
|
Loss per common share, basic and diluted |
$ |
(0.09 |
) |
$ |
(0.10 |
) |
$ |
(0.19 |
) |
$ |
(0.20 |
) |
||||
|
Weighted-Average Shares of Common Shares Outstanding, Basic and diluted |
|
105,935,254 |
|
|
63,170,918 |
|
|
105,899,684 |
|
|
63,170,918 |
|
||||
|
|
|
|
|
|
|
|
|
|
||||||||
|
Net loss |
$ |
(9,399 |
) |
$ |
(6,249 |
) |
$ |
(19,902 |
) |
$ |
(12,501 |
) |
||||
|
Other comprehensive (loss) income net of tax: |
|
|
|
|
|
|
|
|
||||||||
|
Foreign currency translation adjustments |
|
(289 |
) |
|
562 |
|
|
(353 |
) |
|
(265 |
) |
||||
|
Change in net unrealized gains on short-term and long-term investments |
|
(140 |
) |
|
— |
|
|
698 |
|
|
— |
|
||||
|
Comprehensive loss |
$ |
(9,828 |
) |
$ |
(5,687 |
) |
$ |
(19,557 |
) |
$ |
(12,766 |
) |
||||
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
||||||||||||||||||||||||||||||
|
Condensed Consolidated Statements of Changes in Stockholders’ Equity (Deficit) |
||||||||||||||||||||||||||||||
|
(in thousands, except share data) |
||||||||||||||||||||||||||||||
|
(Unaudited) |
||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
Accumulated |
|
|
|
|
|||||||||||||||||
|
|
|
|
|
|
Additional |
Other |
|
|
Total |
|||||||||||||||||||||
|
|
Common Shares |
Exchangeable Shares |
Paid-In- |
Comprehensive |
Accumulated |
Stockholders' |
||||||||||||||||||||||||
|
|
Shares |
Amount |
Shares |
Amount |
Capital |
Income |
Deficit |
Equity |
||||||||||||||||||||||
|
Balance as of |
81,771,422 |
|
$ |
8 |
|
24,011,017 |
|
$ |
2 |
|
$ |
418,815 |
|
$ |
1,206 |
|
$ |
(124,625 |
) |
$ |
295,406 |
|
||||||||
|
Stock-based compensation |
— |
|
|
— |
|
— |
|
|
— |
|
|
2,761 |
|
|
— |
|
|
— |
|
|
2,761 |
|
||||||||
|
Shares issued upon exercise of options |
140,815 |
|
|
— |
|
— |
|
|
— |
|
|
158 |
|
|
— |
|
|
— |
|
|
158 |
|
||||||||
|
Conversion of exchangeable shares to common shares |
318,197 |
|
|
— |
|
(318,197 |
) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
||||||||
|
Issuance of shares for private placement |
12,000 |
|
|
— |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
||||||||
|
Currency translation adjustments |
— |
|
|
— |
|
— |
|
|
— |
|
|
— |
|
|
(64 |
) |
|
— |
|
|
(64 |
) |
||||||||
|
Change in unrealized gains on short-term and long-term investments |
— |
|
|
— |
|
— |
|
|
— |
|
|
— |
|
|
838 |
|
|
— |
|
|
838 |
|
||||||||
|
Net loss |
— |
|
|
— |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(10,503 |
) |
|
(10,503 |
) |
||||||||
|
Balance, |
82,242,434 |
|
$ |
8 |
|
23,692,820 |
|
$ |
2 |
|
$ |
421,734 |
|
$ |
1,980 |
|
$ |
(135,128 |
) |
$ |
288,596 |
|
||||||||
|
Stock-based compensation |
— |
|
|
— |
|
— |
|
|
— |
|
|
2,886 |
|
|
— |
|
|
— |
|
|
2,886 |
|
||||||||
|
Conversion of exchangeable shares to common shares |
476,133 |
|
|
— |
|
(476,133 |
) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
||||||||
|
Currency translation adjustments |
— |
|
|
— |
|
— |
|
|
— |
|
|
— |
|
|
(289 |
) |
|
— |
|
|
(289 |
) |
||||||||
|
Change in unrealized gains on short-term and long-term investments |
— |
|
|
— |
|
— |
|
|
— |
|
|
— |
|
|
(140 |
) |
|
— |
|
|
(140 |
) |
||||||||
|
Net loss |
— |
|
|
— |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(9,399 |
) |
|
(9,399 |
) |
||||||||
|
Balance, |
82,718,567 |
|
$ |
8 |
|
23,216,687 |
|
$ |
2 |
|
$ |
424,620 |
|
$ |
1,551 |
|
$ |
(144,527 |
) |
$ |
281,654 |
|
||||||||
|
|
|
|
|
|
|
|
|
|
Accumulated |
|
|
|
|
|||||||||||||||||
|
|
|
|
|
|
Additional |
Other |
|
|
Total |
|||||||||||||||||||||
|
|
Common Shares |
Exchangeable Shares |
Paid-In- |
Comprehensive |
Accumulated |
Stockholders' |
||||||||||||||||||||||||
|
|
Shares* |
Amount |
Shares* |
Amount |
Capital |
Income (Loss) |
Deficit |
Deficit |
||||||||||||||||||||||
|
Balance as of |
39,159,901 |
|
$ |
4 |
|
24,011,017 |
|
$ |
2 |
|
$ |
82,774 |
|
$ |
337 |
|
$ |
(96,608 |
) |
$ |
(13,491 |
) |
||||||||
|
Stock-based compensation |
— |
|
|
— |
|
— |
|
|
— |
|
|
180 |
|
|
— |
|
|
— |
|
|
180 |
|
||||||||
|
Issuance of warrants in connection with convertible notes, net of tax |
— |
|
|
— |
|
— |
|
|
— |
|
|
2,595 |
|
|
— |
|
|
— |
|
|
2,595 |
|
||||||||
|
Currency translation adjustments |
— |
|
|
— |
|
— |
|
|
— |
|
|
— |
|
|
(827 |
) |
|
— |
|
|
(827 |
) |
||||||||
|
Net loss |
— |
|
|
— |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(6,252 |
) |
|
(6,252 |
) |
||||||||
|
Balance, |
39,159,901 |
|
$ |
4 |
|
24,011,017 |
|
$ |
2 |
|
$ |
85,549 |
|
$ |
(490 |
) |
$ |
(102,860 |
) |
$ |
(17,795 |
) |
||||||||
|
Stock-based compensation |
— |
|
|
— |
|
— |
|
|
— |
|
|
214 |
|
|
— |
|
|
— |
|
|
214 |
|
||||||||
|
Currency translation adjustments |
— |
|
|
— |
|
— |
|
|
— |
|
|
— |
|
|
562 |
|
|
— |
|
|
562 |
|
||||||||
|
Net loss |
— |
|
|
— |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(6,249 |
) |
|
(6,249 |
) |
||||||||
|
Balance, |
39,159,901 |
|
$ |
4 |
|
24,011,017 |
|
$ |
2 |
|
$ |
85,763 |
|
$ |
72 |
|
$ |
(109,109 |
) |
$ |
(23,268 |
) |
||||||||
|
* |
The shares of the Company’s common stock prior to the Recapitalization have been retrospectively recast to reflect the change in the capital structure as a result of the Recapitalization. |
|
|
|
||||||||
|
Condensed Consolidated Statements of Cash Flows |
||||||||
|
(in thousands) |
||||||||
|
(Unaudited) |
||||||||
|
|
|
|
|
|
|
|
||
|
|
|
Six months ended |
||||||
|
|
|
|
||||||
|
|
|
2026 |
|
2025 |
||||
|
Cash flows from operating activities |
|
|
|
|
||||
|
Net loss |
$ |
(19,902 |
) |
$ |
(12,501 |
) |
||
|
Adjustments to reconcile net loss to net cash used in operating activities: |
|
|
|
|
||||
|
Depreciation and amortization |
|
206 |
|
|
379 |
|
||
|
Amortization of debt discount |
|
— |
|
|
1,216 |
|
||
|
Interest income and accretion of discount on investments, net |
|
(98 |
) |
|
— |
|
||
|
Stock-based compensation |
|
5,647 |
|
|
394 |
|
||
|
Unrealized foreign currency transaction gains |
|
(236 |
) |
|
(298 |
) |
||
|
Noncash lease expense |
|
298 |
|
|
136 |
|
||
|
Changes in operating assets and liabilities |
|
|
|
|
||||
|
Prepaid expenses and other current assets |
|
572 |
|
|
(267 |
) |
||
|
Accounts payable and accrued expenses |
|
(1,020 |
) |
|
2,735 |
|
||
|
Accrued interest |
|
— |
|
|
1,149 |
|
||
|
Accrued interest - related party |
|
— |
|
|
234 |
|
||
|
Operating lease payments |
|
(261 |
) |
|
(62 |
) |
||
|
Net cash used in operating activities |
|
(14,794 |
) |
|
(6,885 |
) |
||
|
|
|
|
|
|
||||
|
Cash flows from investing activities |
|
|
|
|
||||
|
Purchases of intangible assets |
|
(20 |
) |
|
(26 |
) |
||
|
Purchases of property and equipment |
|
(161 |
) |
|
(526 |
) |
||
|
Purchase of investments |
|
(92,511 |
) |
|
— |
|
||
|
Proceeds from redemptions of investments |
|
141,142 |
|
|
— |
|
||
|
Net cash provided by (used in) investing activities |
|
48,450 |
|
|
(552 |
) |
||
|
|
|
|
|
|
||||
|
Cash flows from financing activities |
|
|
|
|
||||
|
Proceeds from issuance of convertible notes |
|
— |
|
|
9,335 |
|
||
|
Proceeds from issuance of convertible notes – related parties |
|
— |
|
|
1,650 |
|
||
|
Proceeds from preferred stock subscription payable |
|
— |
|
|
25,797 |
|
||
|
Proceeds from the exercise of stock options for common shares |
|
158 |
|
|
— |
|
||
|
Repayment of finance lease liabilities |
|
(18 |
) |
|
(87 |
) |
||
|
Net cash provided by financing activities |
|
140 |
|
|
36,695 |
|
||
|
|
|
|
|
|
||||
|
Effect of exchange rate changes on cash and cash equivalents |
|
(223 |
) |
|
103 |
|
||
|
|
|
|
|
|
||||
|
Increase in cash and cash equivalents during the period |
|
33,573 |
|
|
29,361 |
|
||
|
Cash and cash equivalents, beginning of period |
|
97,164 |
|
|
3,022 |
|
||
|
Cash and cash equivalents, end of period |
$ |
130,737 |
|
$ |
32,383 |
|
||
|
|
|
|
|
|
||||
|
Supplemental noncash investing and financing activities |
|
|
|
|
||||
|
Recognition of warrants in connection with convertible notes, net of tax |
$ |
— |
|
$ |
2,595 |
|
||
|
Operating lease liabilities obtained in exchange for operating lease assets |
$ |
2,125 |
|
$ |
— |
|
||
View source version on businesswire.com: https://www.businesswire.com/news/home/20260811278185/en/
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