Fermi Inc (NASDAQ:FRMI, LSE:FRMI)’s shares fell about 25% on Monday morning after the company reported a steep first-year loss and flagged ongoing uncertainty around securing a tenant for its flagship AI energy project.
The nuclear energy infrastructure developer posted a GAAP net loss of $486.4 million, or $1.13 per share, for the period from its inception in January 2025, through the end of the 2025 year, exceeding analyst expectations for a $366.5 million loss, according to FactSet data.
The company, which went public in October and is now down roughly 80% from its IPO level, has yet to generate revenue as it invests heavily in building out Project Matador, an initiative aimed at supplying nuclear-powered energy to data centers supporting artificial intelligence.
At the end of the fourth quarter, Fermi reported cash and cash equivalents of $408.5 million.
In a letter to shareholders, founder and CEO Toby Neugebauer said the company’s first year underscored the scale and complexity of its ambitions.
“Our first year proved that building America's AI energy backbone demands more than capital — it demands relentless execution, a workforce willing to operate at startup pace on an industrial scale, and partners across government, manufacturing, and construction who share our sense of urgency,” Neugebauer told investors.
A key overhang for investors remains the company’s inability to secure a definitive tenant for Project Matador. Fermi had announced a nonbinding letter of intent in September to lease part of the site, but the agreement was terminated in December without a replacement.
Neugebauer said the company is taking a measured approach.
“We understand the question at the top of every shareholder's mind: when will Fermi announce its first definitive tenant lease?” he said. “Our answer has remained deliberate and consistent — we will move forward only when the terms, the partner, and the capital structure meet the disciplined capital and risk standards we require for long-term value creation.”
He added that the company is in “active discussions with multiple prospective tenants,” but emphasized that its priority is securing the right partner rather than moving quickly.
Fermi, co-founded by former US Energy Secretary Rick Perry, is seeking to position itself at the intersection of nuclear energy and the fast-growing demand for power from AI-driven data centers.