Key Highlights
- Fermi reported a Q2 net loss of $25.8 million, equivalent to 4 cents per share, beating analyst expectations of a 5-cent loss.
- A 15-year binding lease agreement with AI cloud infrastructure company TensorWave was executed for the Project Matador facility, generating an estimated $6.5 billion in total revenue.
- FRMI shares jumped 21% following Monday’s TensorWave announcement, climbed an additional 6.7% on Wednesday, and advanced 2.2% in Thursday’s premarket session.
- Board director Lee McIntire was appointed as the new CEO, filling the vacancy left after Toby Neugebauer’s departure in April.
- The firm secured more than $431 million via convertible note offerings and currently has 1.5 GW of power generation equipment on-site.
Shares of Fermi (FRMI) were changing hands at $7.77 during Thursday’s premarket trading, reflecting a 2.2% increase following Wednesday’s 6.7% rally. The stock has accumulated a 23% gain over the past week amid a flurry of significant corporate developments.
Looking at the quarterly financials, Fermi disclosed a Q2 net loss totaling $25.8 million, translating to 4 cents per share. This represents a decline from the 2-cent per share loss recorded in the same period last year. The increased deficit stemmed primarily from $26.8 million in general and administrative costs. However, when measured against Wall Street’s consensus forecast of a 5-cent loss, the company’s performance exceeded expectations.
Since the organization is still in its development stage without revenue generation, the earnings figure took a backseat to other announcements this week.
The week’s headline news arrived Monday when Fermi unveiled a 15-year turnkey binding lease arrangement with TensorWave, a provider of AI cloud infrastructure. This agreement establishes TensorWave as the inaugural tenant at the Project Matador facility located in Amarillo, Texas. The initial phase encompasses 222 MW of total facility capacity, with aggregate anticipated revenue reaching approximately $6.5 billion throughout the contract duration. TensorWave has secured two expansion rights that could potentially triple its presence at the location. FRMI stock soared 21% on the announcement.
Securing an anchor tenant had been a persistent challenge for Fermi. The struggle to lock down a lease agreement played a role in the tensions surrounding former CEO Toby Neugebauer, who was terminated in April. The TensorWave partnership effectively resolves that concern.
Leadership Transition Complete
On Wednesday, Fermi announced Lee McIntire as its incoming chief executive officer. McIntire has been serving as an independent board member since September 2025 and possesses over four decades of industry expertise from positions at Bechtel, CH2M Hill, and TerraPower. His professional background encompasses large-scale natural gas power generation, nuclear initiatives, and massive civil engineering projects such as the Panama Canal expansion.
Board Chairman Marius Haas stated that the organization successfully achieved all five strategic goals outlined in its 90-day roadmap from May, including the TensorWave lease execution, CEO selection, establishing a strategic partnership with Hillcore Energy, and taking delivery of three Siemens F-class turbines.
Infrastructure Development Moving Forward
The Hillcore partnership, unveiled on August 11, contributes roughly 2.6 GW of additional power generation capacity at Project Matador via a build-own-operate-transfer framework. Fermi invests no capital and assumes no debt obligations for the facility. When combined with its internal development program, total planned on-site generation would reach 4.8 GW within approximately 30 months.
Three Siemens SGT6-5000F turbines were delivered to the Port of Houston in July, increasing Fermi’s total on-site power generation assets to 1.5 GW. The Project Matador site covers approximately 8,400 acres with over $1.5 billion already allocated toward infrastructure development.
From a capital perspective, Fermi generated over $431 million through convertible senior notes maturing in 2031, carrying an initial conversion price of approximately $9.52 per share. The company established capped call arrangements to shield existing shareholders from dilution unless shares exceed double their July 9 reference valuation.
As of the end of Q2, Fermi maintained $91.7 million in combined cash and restricted cash, while carrying $520.1 million in total debt obligations.
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