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Deep Isolation Nuclear, Inc. — Third Quarter 2026 Earnings Summary

DBHL

  • Financial Performance:

    • Reported consolidated revenue of $1.8 million for the three months ended September 30, 2026, an increase of approximately $0.1 million (6%) compared to $1.7 million in the same period of 2025.
    • Reported a net loss of $3.8 million for the quarter, an increase of $2.5 million compared to a net loss of $1.3 million in the prior year period.
    • Research and development expenses were $0.5 million for the quarter, compared to $0 in the prior year period.
    • Selling, general, and administrative (SG&A) expenses were $4.3 million for the quarter, a 74% increase from $2.5 million in the prior year period.
    • EBITDA was a loss of $3.8 million for the quarter, compared to a loss of $1.5 million in the prior year period.
    • Adjusted EBITDA was a loss of $3.4 million for the quarter, compared to a loss of $1.4 million in the prior year period.
    • Cash and cash equivalents totaled $16.5 million as of September 30, 2026, down from $28.2 million as of September 30, 2025.
    • Total common shares outstanding were 57,765,606 as of November 9, 2026.
    • Revenue growth was primarily driven by completion milestones on certain projects and increased billing at Freestone Environmental Services, Inc.
    • SG&A expense increases were attributed to stock-based compensation and higher employee and benefits expenses following the addition of nine new employees, including a CFO and General Counsel.

  • Business Segments and Product Lines:

    • Advanced engineering and procurement activities for the non-radioactive, full-scale, at-depth Commercialization Pilot at the Deep Borehole Demonstration Center near Cameron, Texas.
    • The Commercialization Pilot tests borehole construction, surface handling, and full-scale emplacement and retrieval of the Universal Canister System (UCS).
    • Selected as the sole industrial partner on three U.S. Department of Energy (DOE) Project GENESIS grants to advance AI-enabled nuclear waste repository analysis.
    • Announced results from a three-year DOE-funded ARPA-E CURIE program study evaluating deep borehole disposal for waste from recycled nuclear fuel, with all scenarios projected to cost less than 0.1 cent per kilowatt-hour and meeting safety criteria.
    • Published a customer case study with Slovenia's Agency for Radio Active Waste Management demonstrating potential cost and operational benefits of deep borehole disposal.

  • Market and Competitive Landscape:

    • Permanent nuclear waste disposal remains central to discussions regarding a sustainable nuclear fuel cycle.
    • Five U.S. states (Utah, Tennessee, Oklahoma, Louisiana, and Idaho) signed memoranda of understanding in July 2026 to explore Nuclear Lifecycle Innovation Campuses, though these do not authorize construction.
    • Finland's nuclear safety regulator issued a favorable safety assessment in August 2026, and the Finnish Government granted Posiva an operating license in October 2026 for its spent-fuel encapsulation and final disposal facility.
    • ARPA-E selected eight projects in October 2026 for award negotiations under the HORNIG program focused on advanced reactor fuels and recycled nuclear materials.
    • Google and Constellation announced a 20-year power purchase agreement in October 2026 to enable 890 megawatts of additional nuclear capacity through upgrades at 11 existing reactor units.

  • Risks and Challenges:

    • Potential failure of the market to develop for deep borehole disposal solutions as expected or at all.
    • Regulatory and legal risks, including the possibility of failing to obtain necessary approvals or permissions on expected timelines.
    • Dependency on governmental contracts and awards, including the risk of failing to finalize negotiations.
    • Risks associated with delays or failure to complete the full-scale demonstration of the Universal Canister System.
    • Challenges related to licensing, financing, community engagement, and legislative changes required for commercialization of deep borehole disposal in the U.S.
    • Risks of supply chain disruptions, geopolitical events, and security breaches.

  • Management Commentary and Tone:

    • CEO Rod Baltzer stated the third quarter advanced work toward commercial readiness, highlighting the receipt of a drilling permit and the start of well pad construction for the Commercialization Pilot.
    • Management believes the industry's growing attention to the full nuclear fuel cycle reinforces the importance of developing practical permanent nuclear waste disposal solutions.
    • Management views recycling and permanent disposal as complementary elements of long-term waste management.
    • Management emphasized that realizing the opportunity for deep borehole disposal depends on successful technology demonstration, licensing, financing, community engagement, and legislative changes.

  • Other Key Points:

    • Common stock began trading on the OTCQB Venture Market under the ticker symbol "DBHL" in July 2026.
    • Received a drilling permit from the Texas Railroad Commission subsequent to quarter-end for the full-scale, non-radioactive Commercialization Pilot near Cameron, Texas.
    • Began site preparation, including well pad construction, for the Commercialization Pilot subsequent to quarter-end.
    • The Commercialization Pilot is conducted in collaboration with the Deep Borehole Demonstration Center, Halliburton, Amentum, NAC International, and Occlusion Nuclear Solutions.
    • The drilling permit received is for the non-radioactive pilot and does not authorize the disposal of radioactive waste.