10-Q · May 14, 2026
Fermi Inc. has reported a continued absence of revenue in the first quarter of 2026, with a net loss of $188.7 million, translating to an EPS of -$0.18, significantly larger than the -$0.30 EPS reported in the previous…
Earnings analysis · 10-Q
FRMI earnings analysis
Filed August 14, 2026 · Our reading of the company's report
The latest report
Fermi remains a pre-revenue development-stage company, reporting $0 revenue and diluted EPS of -$0.04 for Q2 2026, although the EPS loss improved from -$0.30 in Q1. Liquidity was supplemented by approximately $416.8…
Read full summary
Fermi remains a pre-revenue development-stage company, reporting $0 revenue and diluted EPS of -$0.04 for Q2 2026, although the EPS loss improved from -$0.30 in Q1. Liquidity was supplemented by approximately $416.8 million of net convertible-notes proceeds, but June 30 cash and restricted cash totaled only $91.7 million against substantial project obligations and debt facilities. The unresolved material weakness, going-concern uncertainty, tenant commencement conditions, significant debt covenants, and newly disclosed litigation claims—including a claim exceeding $415 million—create a bearish risk profile.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $-0.04
What stood out
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EPS loss narrowed sequentially
Reported diluted EPS was -$0.04 in Q2 2026, improving from -$0.30 in Q1 2026 by $0.26 per share. No prior-year EPS comparison was provided.
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Cash resources remain substantial
The company reported no revenue as of June 30, 2026 and stated it had “not generated any revenues.” The business therefore remains pre-revenue and development-stage.
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$91.7 million in cash and restricted cash
Cash, cash equivalents and restricted cash totaled $91.7 million at June 30, 2026, comprising $62.5 million of cash on hand and $29.2 million of restricted cash.
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Convertible financing added liquidity
The July 2026 convertible-notes offering generated approximately $416.8 million of net proceeds after issuance costs, providing additional funding for Project Matador and continuing operations.
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Control remediation is underway
Management reported that it had appointed a CFO and established an experienced finance team, implemented financial-reporting systems and formal policies, and engaged a third-party SOX readiness advisor as part of its remediation plan.
What to watch
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Material weakness remains unresolved
Management continued to report a material weakness in internal control over financial reporting as of June 30, 2026, and concluded that disclosure controls were not effective. The weakness includes inadequate segregation of duties and an insufficient number of qualified personnel.
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Going-concern and liquidity risk
The company stated that substantial doubt about its ability to continue as a going concern was raised because unrestricted cash of $62.5 million was insufficient to fund known and reasonably knowable obligations over the next 12 months. Management says its plans, including the July notes proceeds, alleviated the doubt, but there is no guarantee they will succeed.
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Debt covenants and tenant triggers
As of June 30, 2026, $444.9 million was drawn under the $500.0 million Turbine Warehouse Equipment Financing, $77.3 million under the $120.0 million High Voltage Equipment Financing, and $14.7 million under the $165.0 million Turbine Warehouse II facility. The Turbine Warehouse facility may permit collateral marketing if a 400 MW lease is not entered by November 10, 2026.
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Potentially material $415 million litigation claim
The company disclosed a new Peña and Summers lawsuit seeking monetary relief exceeding $415 million and alleging that approximately 11,250,000 shares would have been issued absent the disputed unit reclamation. The company considers an unfavorable outcome reasonably possible but cannot estimate a loss.
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New $8.5 million Bayonne claim
The company disclosed a Bayonne lawsuit seeking at least $8.5 million, including approximately $4.3 million of past-due amounts and $4.2 million of additional costs. The matter was at a preliminary stage, with no discovery and no response filed as of the filing.
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Tenant commencement remains uncertain
The TensorWave Lease signed August 9, 2026 remains subject to customary closing conditions, including project-level financing. The company also faces a requirement for a first-tenant sublease of at least 200 MW before year-end 2026 and a 400 MW lease condition tied to its turbine financing.
Management's outlook
No numeric revenue or EPS guidance was provided. Management states that the TensorWave Lease remains subject to closing conditions, including project-level financing, and that first-phase construction conditions must occur before the end of 2026.
Earlier filings 4
10-K · April 30, 2026
Fermi Inc. faced significant challenges in the fiscal year ending December 31, 2025, highlighted by the absence of reported revenue and a substantial Q4 EPS miss of -0.18. Following the termination of CEO Toby…
10-K · March 30, 2026
Fermi (FRMI) is a development-stage company building Project Matador, a private power + AI campus anchored by a 99-year ground lease covering approximately 5,236 acres (expandable to ~7,570 acres) designed to deliver up…
10-Q · November 12, 2025
Fermi Inc. is a pre-revenue developer of Project Matador (an ~11 GW campus on ~5,236 acres) that reported no operating revenue for the quarter and a net loss of $346,812 for the three months ended September 30, 2025…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.