Shares of NuScale Power (SMR) fell about 10% in late trading after B. Riley Securities raised concerns about the company’s capital structure, warning that a potential doubling of its share count could weigh heavily on shareholder value.
In a note to investors, B. Riley highlighted dilution risks tied to NuScale’s financing strategy as it advances development of its small modular reactor (SMR) technology. The firm pointed to outstanding warrants, convertible instruments, and the likelihood of additional equity issuance as NuScale seeks to fund long-term project development and commercialization.
While NuScale remains one of the most prominent pure-play SMR developers in the public markets, analysts cautioned that the capital-intensive nature of nuclear projects makes near-term dilution difficult to avoid. B. Riley downgraded the stock and cut its price target, arguing that even strong progress on the technology side could be offset by pressure on per-share fundamentals.
Investor sentiment has also been affected by broader uncertainty in the nuclear sector, including long development timelines, regulatory complexity, and questions around the pace of customer adoption. Although small modular reactors are often promoted as a scalable and lower-cost alternative to traditional nuclear plants, most projects remain in early stages, with limited revenue visibility.
NuScale has positioned itself as a long-term beneficiary of global decarbonisation efforts and rising demand for reliable, carbon-free baseload power. However, the latest sell-off underscores market sensitivity to balance-sheet risk, particularly at a time when interest rates remain elevated and equity markets are less forgiving of dilution-heavy growth stories.
Despite the downgrade, some analysts continue to see strategic value in NuScale’s technology and intellectual property, especially as governments revisit nuclear energy as part of energy security and climate strategies. For now, though, concerns over share count expansion are dominating the near-term narrative around the stock.
Oracle shares slide 30% as AI spending fears rattle investors
