Fermi (FRMI) Q1 2026 earnings summary

Executive summary

• Transitioned to Fermi 2.0, focusing on institutional execution, governance, and commercial discipline, with a leadership overhaul including CEO removal, interim CFO appointment, and board expansion; CEO search underway.

• Project Matador, a large-scale AI and private power campus in Texas spanning over 7,500 acres, targets up to 17 GW of generation capacity and 15 million sq. ft. of AI-ready space, with significant infrastructure and regulatory milestones achieved.

• Over $1.4 billion invested in infrastructure, with a disciplined 90-day plan to secure binding tenant agreements, maintain capital discipline, and manage liquidity.

• Commercial momentum improved, with renewed tenant engagement, strategic partnerships under evaluation, and expectation of commercial operations beginning in 2027 upon lease execution.

• No revenue generated as of March 31, 2026; all activity relates to development and pre-revenue operations.

Financial highlights

• Reported Q1 2026 net loss of $189 million ($0.30 per share), with about 70% non-cash, mainly from $134 million share-based compensation and $25 million extinguishment loss.

• Cash and restricted cash at quarter end totaled $243 million; $207.5 million in cash and $35.8 million in restricted cash.

• $441 million invested in property, plant, and equipment this quarter, bringing cumulative investment in Project Matador to over $1.4 billion.

• $785 million in new equipment financing secured, including $500 million from MUFG; $421 million in outstanding debt after new borrowings and full repayment of Macquarie Term Loan.

• No operating revenue recognized; all assets classified as construction in progress or land.

Outlook and guidance

• Targeting binding tenant agreements within 90 days and ramp-up to 1.5 GW cumulative power by end of 2027, contingent on lease execution.

• Management expects commercial operations and revenue generation to begin in 2027 after delivery of powered shell facilities.

• Near-term capital needs for Phase 0 and 1 estimated at over $3 billion, with $2 billion expected in the next 12 months, funded by tenant prepayments, non-recourse financing, and government programs.

• Capital deployment will be closely matched to inflows from tenant agreements and project-level financing.

• Total capital needs for full buildout could range from $70 billion to $90 billion, depending on tenant mix and incentives.