Terrestrial Energy — Second Quarter 2026 Earnings Summary

Financial Performance

• Reported a net loss of $9.4 million for the second quarter ended June 30, 2026, compared to a net loss of $10.5 million for the first quarter of 2026.
• Net loss for the six months ended June 30, 2026, was $19.9 million, compared to $12.5 million for the same period in 2025.
• Research and development expenses were $3.5 million for the quarter (up from $1.4 million in Q2 2025) and $8.1 million for the six-month period (up from $2.8 million in 2025).
• General and administrative expenses were $8.0 million for the quarter (up from $3.5 million in Q2 2025) and $15.3 million for the six-month period (up from $6.8 million in 2025).
• Ended the quarter with $283.4 million in cash, cash equivalents, and investments.
• Reported cash burn of $6.4 million for the quarter, a decrease of $1.5 million compared to the first quarter.
• Net cash used in operating activities was $14.8 million for the six months ended June 30, 2026, compared to $6.9 million in the same period of 2025.
• Net cash provided by investing activities was $48.5 million for the six months ended June 30, 2026, driven by proceeds from investment redemptions of $141.1 million and purchases of investments of $92.5 million.
• Total stockholders' equity was $281.7 million as of June 30, 2026, down from $295.4 million as of December 31, 2025.
• Accumulated deficit increased to $144.5 million as of June 30, 2026, from $124.6 million as of December 31, 2025.
• Loss per common share, basic and diluted, was $(0.09) for the quarter and $(0.19) for the six months ended June 30, 2026.

Business Segments and Product Lines

• Updated unit economics for the IMSR Core-unit and Fuel Salt supply businesses, estimating cumulative lifetime revenue per plant at $2.7 billion, up from $2.1 billion.
• Estimated blended gross margin of 33% for the business, with gross margins of 33% for Core-unit supply and 40% for Fuel Salt supply.
• 79% of lifetime revenues are projected to occur after plant construction via long-term contracts for Core-unit and Fuel Salt supply.
• Updated the 2050 serviceable addressable market estimate to $2.3 trillion.
• Advanced Project TETRA (test reactor pilot) and Project TEFLA (fuel line pilot) in partnership with the U.S. Department of Energy.
• Added irradiation cycles to the graphite testing and qualification program at NRG Petten.
• Continued engagement with Westinghouse for the supply of uranium tetrafluoride (UF4) for IMSR Fuel Salt.
• Signed an engineering service agreement with Zachry Nuclear to support site characterization at the Texas A&M-RELLIS site.

Market and Competitive Landscape

• Executed a Memorandum of Understanding with Riot Platforms, Inc. to co-locate IMSR Plants with Riot data centers, evaluating a natural gas fuel bridge for early electricity supply.
• Secured site control at the Texas A&M-RELLIS site through a ground lease and research agreements covering 77 acres.

Risks and Challenges

• Forward-looking statements highlight risks including potential delays, cost overruns, and contractor performance issues in IMSR Plant development.
• Risks include the ability to obtain regulatory approvals and licenses on a timely basis.
• Potential for estimates regarding lifetime revenue, gross margin, and serviceable addressable market to prove incorrect.
• Risks related to supply chain constraints and cost inflation for specialized nuclear-grade materials.
• Risks associated with the ability to raise additional funding in the future.
• Potential adverse effects from economic, business, and competitive factors, including alternative energy technologies and energy price volatility.

Management Commentary and Tone

• CEO Simon Irish stated the quarter saw developments across all three pillars of the business plan, citing site control, project advancement, and NRC approval.
• Management noted that engineering progress enabled the re-estimation of unit economics, highlighting the value of the IMSR Core-unit and Fuel Salt supply under a capital-light business model.
• The company appointed Kathy McCarthy to the Board of Directors and Pamela Cowan as EVP of Engineering, both with extensive nuclear industry experience.

Other Key Points

• The U.S. Nuclear Regulatory Commission (NRC) approved the Company's Postulated Initiating Events (PIE) methodology Topical Report, following the earlier approval of the IMSR Principal Design Criteria (PDC) Topical Report.
• The Company ended the quarter with 105.9 million shares issued and outstanding (82.7 million common shares and 23.2 million exchangeable shares).
• Stock-based compensation totaled $2.9 million for the quarter and $5.6 million for the six months ended June 30, 2026.
• Interest expense was negligible ($0 for the quarter, $2,000 for six months) compared to $1.2 million in Q2 2025 and $2.5 million in the six months of 2025.
• Interest and dividend income was $2.5 million for the quarter and $3.9 million for the six months ended June 30, 2026.