Second Quarter 2026
Filed Aug 13, 2026Fermi Announces Second Quarter 2026 Results and Delivers on All Five 90-day Objectives
Fermi remained pre-revenue and reported a $25.8 million net loss, while advancing Project Matador through a binding 15-year TensorWave lease, turbine deliveries, a Hillcore alliance, and subsequent-quarter-end convertible-note financing.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenueGAAP | pre-revenue | – | – |
| General and administrative expensesGAAP | $26.8 million | – | – |
| Total expensesGAAP | $ 26,759 (in thousands) | – | – |
| Loss from operationsGAAP | $ (26,759) (in thousands) | – | – |
| Net lossGAAP | $25.8 million | – | – |
| Net loss per share, basic and dilutedGAAP | $0.04 per basic and diluted share | – | – |
| Weighted average shares outstanding, basic and dilutedGAAP | 637,325,436 | – | – |
| Capital invested in Property, Plant, and Equipmentother | $185.0 million | – | – |
| Net cash used in operating activitiesGAAP | $ (56,016) (in thousands) | – | – |
| Net cash used in investing activitiesGAAP | $ (626,157) (in thousands) | – | – |
| Net cash provided by financing activitiesGAAP | $ 365,375 (in thousands) | – | – |
Forward operating milestones outlook
- NoteFirst power of approximately 350 MW is targeted within 24 months of notice to proceed.
- NoteThe framework agreement would double planned on-site generation to 4.8 GW within approximately 30 months when combined with Fermi's own power generation program.
- Noteabout 200 megawatts of initial commercial power over the next six months
- Noteabout 1.5 GW over the next 18 to 24 months, excluding the Hillcore alliance and subject to binding customer agreements and approvals.
- NoteSubject to entering into binding customer agreements, the project is expected to ramp to approximately 17 GW.
What drove it
- Fermi signed a 15-year turnkey binding lease agreement with TensorWave, with phase one including 222 MW of total facility power and total revenue of approximately $6.5 billion over the life of the contract.
- TensorWave has two expansion options to triple the size of its footprint on the site over time.
- Fermi received three Siemens SGT6-5000F turbines, bringing landed power assets to 1.5 GW.
- Fermi announced a build-own-operate-transfer strategic alliance with Hillcore for approximately 2.6 GW of incremental power generation at Project Matador.
- Hillcore and its partners will finance, construct, own, and operate their facility, with Fermi committing no capital and issuing no debt for the plant.
- Lee McIntire was appointed Chief Executive Officer.
- Fermi signed strategic partnerships with Primoris for balance of plant work and TSK for engineering on the Siemens SGT6-5000F turbines.
Concerns
- Fermi remains pre-revenue and in its development phase.
- General and administrative expenses of $26.8 million drove most of the reported net loss.
- Initial commercial power and the 1.5 GW path are subject to binding customer agreements and approvals.
- Future capacity, including expansion beyond approximately 6 GW or up to 11 GW or 17 GW, is subject to permits and approvals, financing, interconnection capacity, land acquisition, and other factors.
- Fermi continues to work toward a final EPC agreement for Phase One.
- The Company reported $520.1 million of outstanding debt as of June 30, 2026.
What to watch
- Execution of the 222 MW TensorWave phase-one agreement and any exercise of its two expansion options.
- Timing of approximately 350 MW of first power under the Hillcore alliance within 24 months of notice to proceed.
- Progress toward about 200 megawatts of initial commercial power over the next six months.
- Completion of the Phase One final EPC agreement and construction of the six Siemens SGT-800 turbine power islands.
- Binding customer agreements, approvals, permits, financing, and interconnection required for the planned power ramp.
- Use of proceeds from the more than $431 million of 5.00% Convertible Senior Notes due 2031.
Balance sheet and cash flow
- $91.7 million of total cash and restricted cash on hand.
- Cash and cash equivalents were $ 62,536 (in thousands) as of June 30, 2026.
- Restricted cash was $ 29,195 (in thousands) as of June 30, 2026.
- $520.1 million of outstanding debt, reflecting a $98.8 million net increase in borrowings under equipment financing facilities.
- Property, plant, and equipment, net was $ 1,547,856 (in thousands) as of June 30, 2026.
- Subsequent to quarter end, the Company issued more than $431 million of 5.00% Convertible Senior Notes due 2031, including the full exercise of the initial purchasers’ option for an additional $56.3 million.
- Net proceeds were $416.8 million, before the approximately $34.5 million cost of capped call transactions.
- Proceeds from issuance of debt, net of debt discount were $ 513,493 (in thousands) for the six months ended June 30, 2026.
- Repayment of Macquarie Term Loan was $ (144,294) (in thousands) for the six months ended June 30, 2026.
Analysis
Fermi reported a development-stage quarter with no operating revenue and a GAAP net loss of $25.8 million, or $0.04 per basic and diluted share. General and administrative expenses of $26.8 million drove most of the result. The company reported $185.0 million of capital invested in Property, Plant, and Equipment during the quarter, reflecting the ongoing conversion of Project Matador from development planning toward physical construction.
Commercial progress was the central development. Fermi signed a 15-year turnkey binding lease agreement with TensorWave for phase one of the Project Matador campus. Phase one includes 222 MW of total facility power and approximately $6.5 billion of total revenue over the life of the contract. The agreement includes two expansion options that could triple TensorWave's footprint over time, making customer conversion and the timing of those options material operating milestones.
The company added supply and construction relationships intended to support its speed-to-power plan. Three Siemens SGT6-5000F turbines arrived in July, taking landed power assets to 1.5 GW. Fermi also announced a Hillcore strategic alliance for approximately 2.6 GW of incremental generation. Hillcore and its partners are intended to finance, construct, own, and operate that facility, while Fermi is to serve as anchor offtaker under a 20-year power-purchase agreement.
Liquidity and leverage both changed materially. At June 30, Fermi had $91.7 million of total cash and restricted cash and $520.1 million of outstanding debt. Subsequent to quarter end, it issued more than $431 million of 5.00% Convertible Senior Notes due 2031, generating $416.8 million of net proceeds before the approximately $34.5 million cost of capped call transactions. The release characterizes the notes as extending operating flexibility, but execution remains dependent on customer contracts, final EPC arrangements, permits, approvals, financing, and construction delivery.
Forward milestones focus on power availability rather than financial guidance. Fermi cited about 200 megawatts of initial commercial power over the next six months and about 1.5 GW over the next 18 to 24 months, excluding the Hillcore alliance and subject to binding customer agreements and approvals. The Hillcore plan targets first power of approximately 350 MW within 24 months of notice to proceed. These timelines, along with progress on the TensorWave lease and the final EPC agreement, are the key reported markers for transition from pre-revenue development spending to operations.
Management, verbatim
Roughly 90 days ago, we put ourselves on the clock with a clear set of aggressive objectives, and the team delivered on all five.
Marius Haas, Chairman of the Board of Directors of Fermi Inc.
Not in the filing
stated, not guessed- Numerical total revenue for the second quarter of 2026
- Revenue comparison to prior year and prior quarter
- Segment revenue and segment comparisons
- GAAP gross profit and gross margin
- Non-GAAP gross margin, operating income, net income, and EPS
- GAAP income tax expense and tax rate
- Free cash flow
- Quarterly operating cash flow
- Quarterly investing cash flow
- Quarterly financing cash flow
- Prior-quarter comparisons for reported income-statement and cash-flow metrics
- Share repurchases
- Dividends
- Formal revenue, gross-margin, operating-expense, and tax-rate guidance
- Previous-quarter outlook for comparison to actual results
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.