Fermi (FRMI) Q3 2026 earnings summary

Executive summary

• TensorWave’s lease was terminated; a November 10 non-binding LOI targets 600 MW of 2027 capacity for an investment-grade hyperscaler, with a $200 million prepayment and $15 million for early development. Definitive lease documentation remains pending.

• A further $90 million steel and building-materials purchase agreement is being finalized; the customer pipeline could fill planned 2.2 GW of capacity if it converts to leases.

• Project Matador has more than $1.6 billion invested, 6 GW of air permits, over 2 GW of generation equipment secured, and more than 15 million sq. ft. of data-center space contracted, under contract, or under option.

Financial highlights

• September 30 cash and restricted cash totaled $315.5 million, including $286.3 million unrestricted and $29.2 million restricted.

• Q3 net loss was $141.6 million, or $0.22 per share; G&A expense was $142.2 million.

• Net PP&E was $1.67 billion; Q3 PP&E investment was $133.4 million and nine-month investment was $759.5 million.

• Net debt was $958.4 million; Q3 operating cash use was $54.5 million and nine-month operating cash use was $110.6 million.

Outlook and guidance

• Initial power for the 600 MW commitment is targeted for late Q2 or early Q3 2027; the customer expects its first building then, followed by up to eight buildings as available.

• Sellable generation capacity is shown at 925 MW for 2027, 1,332 MW for 2028, and 2,000 MW for 2029; 600 MW is reserved for 2027.

• Active investment-grade hyperscaler opportunities could cover planned 2.2 GW capacity; long-term development is presented at up to 17 GW, subject to customer agreements, permits, financing, interconnection and other conditions.

• Incremental capex for the next 12 months is estimated at $2–$3 billion, subject to definitive leases and alignment with tenant deployment and power requirements.