Oklo Inc. (OKLO) Earnings

Management highlights

- **Corporate Strategy & Platform Integration** - Oklo is building one vertically integrated, closed-loop nuclear technology platform across three connected business lines: Power (anchor), Fuel (enabler), and Isotopes (value expansion), rather than three independent businesses. - Vertical integration creates capital flexibility: third-party capital can fund a larger share of powerhouse deployment, reducing direct capital Oklo invests per deployed megawatt while retaining recurring revenue across all segments. - The closed fuel cycle model recycles used fuel to recover usable material and valuable isotopes, creating a flywheel effect: power generates recurring fuel demand, scale supports fabrication/recycling investment, recycling expands long-term fuel supply, and isotopes add additional value. - **Key Operational Milestones** - The Groves isotope facility achieved first criticality 11 months after groundbreaking, the fastest greenfield-to-criticality delivery for a full-scale, privately funded, privately sited reactor in recorded history. This milestone validated Oklo's in-house end-to-end execution capabilities (design, permitting, construction, supplier qualification, safety, startup, operations) that can be replicated across all future assets. - For the Aurora INL power project, DOE approved the Preliminary Documented Safety Analysis (PDSA), site mobilization is underway, and reactor area excavation is nearly complete, with the 2028 commercial startup target still in place. - For the 1.2 GW Aurora Ohio clean energy campus, Oklo entered an MOU with Kiewit for engineering, procurement, and construction planning for the initial phase, and is advancing PJM interconnection applications. - Oklo acquired Armec and Creative Engineers Inc. during the quarter to add specialized engineering, manufacturing, and sodium systems capabilities, shorten execution feedback loops, and reduce future supply chain constraints. - The Idaho Radioisotopes Laboratory (NRC licensed) is supporting initial commercial isotope activities, with planning underway for the next Groves-class isotope facility. - **Fuel Strategy Progress** - Oklo pursues a diversified domestic fuel strategy across three complementary pathways to avoid fuel supply constraints: commercial HALEU, surplus government material, and recycling. - Oklo secured a Letter of Intent with Centris for Centris to supply HALEU for up to five Aurora powerhouses, with deliveries starting in 2029, supporting the planned Ohio campus build-out. - DOE selected Oklo for advanced negotiations for surplus plutonium that can be blended into HALEU-equivalent fuel to act as a bridge for early deployments while new domestic enrichment capacity scales. - Equipment for the Aurora Fuel Fabrication Facility (A3F) is in production for 2027 installation/startup, which will convert EBR-II used fuel for the first Aurora INL core. Engineering and permitting for the Tennessee Advanced Fuel Center (domestic recycling capability) is advancing. - **Government Program Participation** - Oklo is participating in multiple projects under DOE's $800 million Genesis mission, including the $60 million phase two Prometheus project led by Idaho National Laboratory, and a collaboration with NVIDIA and Los Alamos National Laboratory to develop physics-based AI models and digital twins to accelerate nuclear fuel validation and deployment. - Oklo has held productive discussions with all five states selected for DOE's Nuclear Lifecycle Innovation Campus Initiative, and is positioned to participate in the planned fuel recycling and advanced nuclear ecosystem these campuses will develop.

Guidance

- Oklo updated its 2026 full-year guidance to reflect accelerated spending to reduce project execution risk and support the 2028 Aurora INL startup target, driven by better visibility into procurement and construction milestones. - Cash used in operating activities is now guided to a range of $120 million to $150 million, upwardly revised from the prior range of $80 million to $100 million. The increase reflects expensed first-of-a-kind project costs for Aurora INL, grid interconnection build-out costs, and accelerated early-stage deployment costs for other projects, not higher general corporate cash burn. - Cash used for purchases of property, plant, and equipment (capital expenditures) is now guided to a range of $400 million to $500 million, upwardly revised from the prior range of $350 million to $450 million. The increase is driven by accelerated procurement and construction at Aurora INL and an opportunistic fuel purchase for future isotope projects at attractive terms. - The updated 2026 capital plan is fully supported by Oklo's existing $3 billion in ending cash and marketable securities, and the 2028 commercial startup target for Aurora INL remains unchanged.

Segment performance

Oklo reports financial results on a consolidated basis, and does not break out separate financial performance for its three product segments (Power, Fuel, Isotopes) in this call. The company tracks investment and progress across all three integrated segments as part of its single nuclear technology platform. Year-to-date (through Q2 2026) consolidated net loss was $81.6 million, with an operating loss of $124.2 million offset by $44.5 million in net interest and dividend income. Year-to-date cash used in operating activities totaled $65.5 million, and cash used in investing activities totaled $912.7 million, including $126.9 million in capital expenditures across all three business segments. Ending Q2 2026 cash and marketable securities stood at $3 billion.

Risks & headwinds

- Fuel supply availability for the first-of-a-kind and future deployments remains a key industry-wide constraint, which Oklo is mitigating through its diversified multi-pathway fuel strategy, though final plutonium allocation from DOE is not under Oklo's control. - PJM grid interconnection turnaround time is a key watch point for the Ohio campus project; Oklo is mitigating this risk by pursuing multiple interconnection pathways to avoid delays. - All future projects retain project-specific engineering, licensing, and execution risks, even with the capabilities validated by the Groves project. Community opposition to data center co-location, driven by misinformation, presents a potential barrier to deployment in some markets, though Oklo notes policymakers and communities are increasingly engaging to address these perception gaps. - First-of-a-kind project costs may come in higher than initial estimates, as Oklo is still narrowing the full total cost for the Aurora INL project.

Analyst Q&A

• Q: Can you update the timeline for DOE surplus plutonium fuel allocations, and share results from recent reactivity coefficient testing for plutonium-fueled fast systems? /

  A: Plutonium allocation negotiations with DOE are still ongoing; the full 20-ton tranche being allocated will support multiple recipients, and blended plutonium can produce HALEU-equivalent fuel with 10-13% plutonium content. Recent low-power testing at Los Alamos validated that the plutonium-fueled fast system has strong, responsive inherent reactivity feedback coefficients (thermal expansion and Doppler effects) that match pre-test models, with rapid, stable self-regulation that matched design expectations.

• Q: What is your radioisotope production roadmap for Groves, including priority isotopes and timing of first revenue? /

  A: Groves will complete operational commissioning over the next ~12 months before starting R&D-scale isotope production, with next-generation isotope facilities already in planning. First isotope revenue is most likely to come from the NRC-licensed Idaho radiochemistry lab (which processes existing isotope inventories independent of Groves) in the first half of 2027, with ongoing commercial offtake discussions underway.

• Q: What is the order of operations for fuel supply for your initial reactor deployments? /

  A: Oklo follows a diversified three-pronged fuel strategy that eliminates reliance on any single supply pathway. The first Aurora INL core will use recovered EBR-II material. Blended surplus plutonium will act as a bridging fuel to ramp up deployments while commercial HALEU production (via Centris) scales up. Longer-term, recycling of used fuel will extend resources and reduce reliance on fresh supply, giving Oklo enduring fuel supply independence.

• Q: Why is blended plutonium not a long-term fuel solution, rather than just a bridge? /

  A: Plutonium makes an excellent fuel, but available surplus plutonium inventories are limited, only enough to support a couple gigawatts of deployment. The long-term terminal state for scalable nuclear power is fast reactors with recycling, which produces usable transuranic fuel from recycled used fuel and can tap into existing global heavy metal reserves to fuel global energy demand for billions of years, making it a nearly limitless long-term supply.

• Q: What benefits does AI provide to Oklo's strategy, and how much can it accelerate commercialization? /

  A: AI delivers material benefits beyond administrative uses: it is accelerating aggregated analysis of existing plutonium fuel data to improve processing efficiency and material usability, and the Prometheus Genesis project is building AI design agents to speed up design, analysis, and documentation workflows, enabling lower cost and faster deployment. Longer-term, AI will also enable operational optimization across a future fleet of operating power and isotope facilities. The benefits are already material and are expected to grow as the platform scales.