A maker of next-generation nuclear power plants, this American company designs the Xe-100, a small modular reactor that runs on graphite "pebble" fuel coated in layers of carbon and ceramic (TRISO fuel) for extra safety. Founded in 2009 by engineer Kam Ghaffarian, who also co-founded the space station company Axiom Space, X-Energy is headquartered in Rockville, Maryland. Its Xe-100 plants are meant to be built in modules, so a site can start with a few reactors and add more as demand grows.
Revenue more than doubled to $54.6M, but operating loss widened to $110.0M as costs outpaced growth.
more than doubled, but the cost of getting there grew even faster. Revenue rose 162.5% to $54.6 million, driven by accelerated work on the ARDP agreement, while the operating loss widened to $110.0 million as direct costs and equity-based compensation rose. The company ended the quarter with $1.1 billion in cash after its IPO, buying time to turn design work into a commercial product.
Key takeaways
rose 162.5% to $54.6 million, driven primarily by increased activity under the Advanced Reactor Demonstration Program (ARDP) agreement with the U.S. Department of Energy.
The operating loss widened to $110.0 million from $42.8 million a year ago, as direct costs and selling, general and administrative expenses grew faster than , with a $30.9 million increase in equity-based compensation from IPO-related stock option grants cited as a key driver.
remained negative, falling to -58.7% from -68.0% a year ago, as the cost of growth continued to exceed the revenue itself.
Cash and equivalents rose to $1,145.4 million, up from $484.6 million a year ago, following the completion of the company's IPO in April 2026, which raised $1.1 billion in net proceeds.
The company had no outstanding as of June 30, 2026, and held an additional $754.4 million in .
The NRC completed its Environmental Assessment for the Dow Seadrift project ahead of schedule with a Finding of No Significant Impact, and a Centrus agreement was signed to secure HALEU enrichment services.
What changed
The $1.1 billion IPO, flagged last quarter as a pending event, closed in April 2026, transforming the balance sheet: cash and equivalents rose to $1,145.4 million from $224.1 million at the end of Q1 2026, and swung from a deficit of $1,386.0 million to a positive $2,095.6 million.
The pace of cash consumption accelerated: was negative $97.3 million in Q2 2026, compared to negative $67.3 million in Q1 2026, as the operating loss deepened.
The in internal control over financial reporting, previously flagged, remains unremediated as of this filing.
What to watch
Whether the $1.1 billion in IPO proceeds translates into measurable progress on the Xe-100 reactor and TRISO-X fuel facility, given the company has never delivered a commercial reactor.
The pace of future DOE appropriations and reimbursements under the ARDP agreement, with the program's authorization extending only to 2030.
Any signed technology fee agreements or binding offtake contracts with customers, as the current model relies heavily on government funding and non-binding development agreements.
Section summaries
Management's Discussion and Analysis
Revenue surged 132% YoY to $98M in H1 2026 driven by ARDP project execution, while net loss widened to $272M on higher costs and warrant mark-to-market losses.
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Total revenues and grant income rose 132% to $98.0M in H1 2026, primarily from a $56.0M increase in ARDP Agreement activity with the DOE as Xe-100 design work accelerated.
Direct costs jumped 126% to $144.4M, driven by higher subcontracting, materials, and a 134% increase in compensation costs tied to expanded ARDP scope and IPO-related stock option grants.
Progress on remediating the in internal control over financial reporting related to complex technical agreements.
Selling, general and administrative expenses grew 169% to $84.5M, largely due to a $30.9M increase in from IPO stock option grants and higher headcount and public-company infrastructure costs.
Net loss widened 174% to $271.6M, impacted by a $74.9M increase in mark-to-market losses on warrant liabilities, partially offset by a $9.5M rise in interest income from investments.
Cash used in operations was $164.6M in H1 2026, up from $61.8M a year ago, while $1.1B in IPO proceeds provided financing; management believes existing cash is sufficient for the next 12 months.
The NRC completed its Environmental Assessment for the Dow Seadrift project ahead of schedule with a Finding of No Significant Impact, and a Centrus agreement was signed to secure HALEU enrichment services.
From time to time, we may be involved in various legal proceedings arising from the normal course of business activities. We are not presently a party to any litigation the outcome of which, we believe, if determined adversely to us, would individually or taken together, have a…
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From time to time, we may be involved in various legal proceedings arising from the normal course of business activities. We are not presently a party to any litigation the outcome of which, we believe, if determined adversely to us, would individually or taken together, have a material adverse effect on our business, results of operations, cash flows or financial condition. For more information, refer to Item 1 of Part I — “Financial Statements — Note 15 — Commitments and Contingencies” to the condensed consolidated financial statements (included in Part I, Item 1 of this Quarterly Report on Form 10-Q).
X-energy faces material risks from first-of-a-kind reactor execution, heavy reliance on U.S. government funding, and an unproven commercial model.
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The company has never delivered a commercial Xe-100 reactor or secured a , making its cost, schedule, and performance highly uncertain.
X-energy is heavily dependent on U.S. government support, primarily the Advanced Reactor Demonstration Program (ARDP), and any reduction, delay, or termination of this funding could derail its primary project and fuel facility plans.
The business requires substantial additional capital to fund operations and growth, and failure to secure financing on acceptable terms could force delays or abandonment of key projects.
A critical dependency on a first-of-a-kind project with Dow Inc. exposes the company to significant counterparty risk, as Dow can terminate its agreements for convenience, potentially crippling X-energy's commercialization path.
Access to High-Assay Low-Enriched Uranium (HALEU) fuel is limited to nascent commercial and government sources, and any failure of this supply to materialize would halt reactor deployments.
The company has identified a in its internal control over financial reporting related to a lack of sufficient accounting personnel to handle complex transactions, which remains unremediated.