Fermi Announces New Agreements with Investment-Grade Hyperscaler and Third Quarter 2026 Financial Results
Customer funding commitments precede a final lease, while the TensorWave lease and associated AMD credit support have ended.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Rhea-AI Summary
Fermi (FRMI) signed agreements with an investment-grade hyperscale customer to advance 600 MW of power capacity at Project Matador beginning in 2027. The agreements provide for a $200 million prepayment and $15 million of early construction and site development commitments. A $90 million materials purchase agreement and a definitive long-term lease remain unfinished. Fermi and TensorWave terminated their lease; the associated AMD credit support agreement also ended.
Third-quarter 2026 net loss narrowed to $141.599 million, or $0.22 per share, from $346.812 million, or $0.84 per share, a year earlier. General and administrative expenses rose to $142.161 million from $37.776 million. At September 30, cash and restricted cash totaled $315.517 million, while net debt was $958.353 million. Quarterly property and equipment investment was $133.4 million. Fermi remains pre-revenue, with land-lease conditions preceding vertical construction.
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Hollow bars mark forward-looking points. How the balance works
Positive
- Major point. Forward-looking: it has not happened yet and may not happen.Customer prepayment agreement provides for $200 million in upfront development funding. 17% of market cap
- Moderate point. Forward-looking: it has not happened yet and may not happen.Customer agreements advance 600 MW at Project Matador beginning in 2027.
- Moderate point. Forward-looking: it has not happened yet and may not happen.Proposed materials purchase agreement contemplates $90 million for structural steel and building materials. 7.8% of market cap
- Moderate pointThird-quarter net loss narrowed to $141.599 million from $346.812 million a year earlier.
- Moderate pointMacquarie Term Loan repayment totaled $144.294 million during the nine months ended September 30, 2026. 12% of market cap
4 minor points
- Minor pointEarly construction and site development agreement adds $15 million in customer commitments.
- Minor pointBasic and diluted quarterly loss per share narrowed to $0.22 from $0.84 a year earlier.
- Minor pointFermi invested $133.4 million in property and equipment during the third quarter.
- Minor point. Forward-looking: it has not happened yet and may not happen.Fermi says converting its prospective customer pipeline into leases would fill 2.2 GW of current capacity.
Negative
- Major pointNet debt reached $958.353 million at September 30, 2026, versus $109.799 million at December 31, 2025.
- Major pointNine-month property and equipment investment consumed $759.549 million of cash.
- Moderate pointHyperscaler development remains subject to a definitive long-term lease that has not been finalized.
- Moderate pointThe $90 million materials purchase agreement remains unfinished. 7.8% of market cap
- Moderate pointFermi and TensorWave terminated their Data Center Lease and Services Agreement signed in August 2026.
- Moderate point. Forward-looking: it has not happened yet and may not happen.Land-lease conditions with Texas Tech must precede vertical construction at Project Matador.
- Moderate pointFermi remains pre-revenue and in its development phase.
- Moderate pointQuarterly general and administrative expenses rose to $142.161 million from $37.776 million a year earlier.
- Moderate pointCommon stock issuance settled $21.5 million of quarterly financial advisory fees, diluting holders. 1.9% of market cap
- Moderate pointCash and restricted cash declined $93.012 million during the first nine months to $315.517 million.
- Moderate pointNine-month operating cash use was $110.554 million, versus $8.291 million from inception through September 2025.
- Moderate pointNine-month net loss was $356.098 million, versus $353.180 million from inception through September 2025.
- Moderate pointStockholders' equity declined to $958.460 million at September 30, 2026, from $1,095.872 million at December 31, 2025.
6 minor points
- Minor pointTensorWave's associated AMD credit support agreement also terminated.
- Minor pointNine-month debt extinguishment loss totaled $24.753 million.
- Minor pointPreviously capitalized construction in progress incurred a $6.918 million write-off during the first nine months.
- Minor pointDebt issuance costs consumed $18.953 million during the first nine months.
- Minor pointCapped call option payments consumed $34.747 million during the first nine months.
- Minor pointOutstanding common shares increased to 646,138,173 at September 30, 2026, from 629,839,790 at December 31, 2025.
News Explained
The company reports that
Details
Market Reaction – FRMI
On Nov 12, the day this news came out, the latest delayed price for FRMI is 2.21% above the previous close. Argus tracked a peak move of +11.0% during the session. Argus tracked a trough of -16.0% from its starting point during tracking. Our momentum scanner has recorded 16 alerts for this stock so far that day. The latest delayed price is $1.85. Relative volume is exceptionally heavy at 35.3x what this stock usually trades by this time of day.
Data tracked by StockTitan Argus (15 min delayed). Upgrade to Gold for real-time data.
Key Figures
- Initial power capacity
- 600 MW
- Hyperscaler agreements; development beginning in 2027
- Customer prepayment
- $200 million
- Prepayment agreement for the proposed 600 MW development
- Early construction agreement
- $15 million
- Site preparation and construction activities
- Structural materials purchase agreement
- $90 million
- Contemplated; parties were finalizing the agreement
- Cash and restricted cash
- $315.5 million
- As of September 30, 2026
- Outstanding debt, net
- $958.4 million
- As of September 30, 2026
- Net loss
- $141.6 million
- Third quarter 2026
- Net loss per share
- $0.22 per basic and diluted share
- Third quarter 2026
Previous Earnings Reports
-
Q2 report disclosed a 15-year, 222 MW TensorWave lease, which Fermi now says was terminated.
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Key Terms
investment-grade financial
restricted cash financial
convertible senior notes financial
behind the meter technical
AI-generated analysis. How Rhea-AI works. Not financial advice.
DALLAS, TX / ACCESS Newswire / November 12, 2026 / Fermi Inc. (NASDAQ:FRMI)(LSE:FRMI), operating as Fermi America™ ("Fermi" or the "Company"), today announced its third quarter 2026 financial results and multiple new agreements with an investment-grade hyperscaler to advance 600 megawatts ("MW") of power capacity at Project Matador. A conference call is scheduled for 9 a.m. Eastern Time / 2 p.m. British Time today, November 12, 2026. Accompanying slides and prepared remarks can be found at https://investor.fermiamerica.com. Participation details are included in this release.
"Hyperscalers want sites that are ready with permitted power, and Fermi's Project Matador is one of few that can meet that demand today," said Lee McIntire, Fermi Chief Executive Officer. "Our headstart in speed to power is a key reason an investment-grade hyperscaler has signed up for 600 megawatts and committed more than
Tenant Agreement Updates
Investment-Grade Hyperscaler Agreements. Fermi has entered into agreements with an undisclosed investment-grade hyperscale customer to advance development of an initial 600 MW of power capacity beginning in 2027 at Project Matador. The customer is making financial and development commitments ahead of finalizing a lease, reflecting the importance of securing access to power within its targeted delivery timeline. These financial and development commitments include:
$200 million prepayment agreement: Provides for substantial upfront customer funding in connection with the proposed 600 MW development.$15 million early construction and site development agreement: Establishes a framework for advancing site preparation and construction activities as soon as possible to maintain the customer's desired schedule.
Additionally, Fermi and the customer are finalizing a
These agreements demonstrate Fermi's strategy of investing early in infrastructure readiness to enable faster customer development, attract customer capital earlier in the project lifecycle, and translate our power and infrastructure advantages into long-term revenue opportunities with little or no dilution.
The customer intends to use Fermi's infrastructure and advance development work to accelerate its deployment at Project Matador. The parties continue to work toward a definitive long-term lease and finalization of the steel purchase agreement. The customer's identity remains confidential.
TensorWave Lease Termination. Fermi and TensorWave have terminated the Data Center Lease and Services Agreement signed in August 2026. The AMD credit support agreement associated with TensorWave is also terminated.
Texas Tech University Partnership
Fermi and the Texas Tech University System maintain a strong relationship and continue to work together to advance Project Matador, including the conditions under the land lease that precede vertical construction. Earlier this week, Texas Tech University System Chancellor, Brandon Creighton, issued a statement reaffirming the partnership: "Texas Tech is proud of our partnership with Fermi and remains firmly committed to the success of Project Matador."
Third Quarter Financial Highlights (as of and for the three months ended September 30, 2026)
$315.5 million of total cash and restricted cash on hand.$133.4 million of capital invested in Property, Plant, and Equipment ($759.5 million for the nine months ended September 30, 2026), bringing the net balance to approximately$1.67 billion . Fermi remains focused on disciplined capital deployment matched to commercial progress.$958.4 million of outstanding debt, net, reflecting a$463.0 million net increase in borrowings under the convertible senior notes and equipment financing facilities.$141.6 million net loss, or$0.22 per basic and diluted share. General and administrative expenses of$142.2 million drove most of that result and included$65.8 million of non-cash stock compensation and$21.5 million of financial advisory fees settled through the issuance of common stock. Fermi remains pre-revenue and in its development phase, so spending tracks buildout rather than operations.
Conference Call Information
Fermi plans to host a conference call and webcast at 9 a.m. Eastern Time / 2 p.m. British Time today, November 12, 2026, to discuss its third quarter results and recent milestone execution.
To participate, dial (888) 506-0062 in the U.S. or +1 973-528-0011 internationally approximately 15 minutes prior to the scheduled start time and refer to conference code 176575. The call will also be webcast in a listen-only mode and can be accessed through the Investor Relations Events & Presentations page of Fermi's website. A replay of the webcast will be available for a period of one year.
Financial Results and SEC Filings
Fermi's report on Form 10-Q for the quarter ended September 30, 2026, will be filed with the U.S. Securities and Exchange Commission and made available through the SEC's website and the Investor Relations section of Fermi's website.
About Fermi's Project Matador
Fermi America is where AI gets power. Fermi America is developing one of the world's largest advanced energy and AI ecosystems in the Texas Panhandle. The site, called Project Matador, is secured or under long-term lease with nearly
About Fermi America™
Fermi America™ (Nasdaq & LSE: FRMI) develops next-generation private electric grids that deliver highly redundant power at gigawatt scale to support next-generation intelligence and AI compute. Fermi America™ combines cutting-edge technology with a deep bench of proven world-class multi-disciplinary leaders with a combined 25 GW of experience, to create one of the world's largest, 17 GW next-gen private grid, helping ensure America's energy and AI dominance. The behind-the-meter Project Matador campus is expected to integrate the nation's biggest combined-cycle natural gas project, one of the largest clean, new nuclear power complexes in America, utility grid power, solar power, and battery energy storage, to support hyperscale AI and advanced computing. For additional information visit www.fermiamerica.com.
About the Texas Tech University System
Established in 1996, the Texas Tech University System is one of the top public university systems in the nation, consisting of five universities - Texas Tech University, Texas Tech University Health Sciences Center, Angelo State University, Texas Tech University Health Sciences Center El Paso and Midwestern State University.
Headquartered in Lubbock, Texas, the TTU System is a more than
In addition, the TTU System is one of only nine in the nation to offer programs for undergraduate, medical, law, nursing, pharmacy, dental and veterinary education among other academic areas.
Investor Contact
Rodrigo Acuna | IR@fermiamerica.com
Media Contact
Fermi Inc. Communications | media@fermiamerica.com
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements that do not relate to matters of historical fact should be considered forward-looking statements, including, without limitation, statements regarding our letter of intent and related agreements, development plans, construction timelines, permitting and regulatory approvals, binding customer agreements, strategic partnerships and alliances, joint ventures, financing activities, generation capacity, future expansion of Project Matador, equipment delivery and installation, first power timing, leadership transition, and anticipated operational milestones.
These statements are based on current expectations and assumptions and are subject to known and unknown risks, uncertainties, and other important factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements. These factors include, among others: our ability to obtain and maintain required permits and regulatory approvals, including from the NRC and TCEQ; our ability to secure and maintain binding customer agreements and creditworthy counterparties; our ability to complete strategic partnerships and joint ventures on acceptable terms; the availability of project financing and capital on acceptable terms; risks associated with large-scale construction and infrastructure development; interconnection availability and grid constraints; supply chain and equipment procurement risks; commodity availability and pricing, including natural gas and water; risks associated with nuclear development and licensing; counterparty performance; leadership transition risks; litigation and governance matters; and broader economic, regulatory, and market conditions.
Statements regarding potential generation capacity in excess of currently permitted levels, including any reference to expansion beyond approximately 6 GW or up to 11 GW or 17 GW, are subject to the successful receipt of additional permits and approvals, financing, interconnection capacity, land acquisition, and other factors, and there can be no assurance that such capacity will be developed or achieved.
Statements regarding total site acreage, including any reference to expansion beyond currently controlled or leased land, are subject to the closing of pending acquisitions, land availability, and other factors, and there can be no assurance that such acreage will be realized.
These forward-looking statements represent management's expectations as of the date of this release. Except as required by law, the Company undertakes no obligation to update or revise these statements. Additional information regarding these and other risks is included in the Company's Form 10-K and other filings with the Securities and Exchange Commission.
Fermi Inc.
Condensed Consolidated Balance Sheets
(in thousands, except par value amounts and share numbers)
(unaudited)
| As of September 30, 2026 | As of December 31, 2025 | |||||||
| Assets | ||||||||
Property, plant, and equipment, net | $ | 1,669,639 | $ | 935,295 | ||||
Cash and cash equivalents | 286,327 | 408,529 | ||||||
Restricted cash | 29,190 | - | ||||||
Prepaid expenses and other assets | 71,053 | 47,753 | ||||||
Operating lease right-of-use assets | 44,876 | 21,737 | ||||||
Total assets | $ | 2,101,085 | $ | 1,413,314 | ||||
| Liabilities and stockholders' equity | ||||||||
Debt, net | $ | 958,353 | $ | 109,799 | ||||
Accounts payable and accrued liabilities | 126,728 | 176,572 | ||||||
Operating lease liabilities | 57,544 | 21,320 | ||||||
Other liabilities | - | 9,751 | ||||||
Total liabilities | 1,142,625 | 317,442 | ||||||
Commitments and contingencies | ||||||||
| Stockholders' equity | ||||||||
Common stock, | 646 | 628 | ||||||
Preferred stock, | - | - | ||||||
Additional paid-in capital | 1,447,111 | 1,228,443 | ||||||
Accumulated deficit | (489,297 | ) | (133,199 | ) | ||||
Total stockholders' equity | 958,460 | 1,095,872 | ||||||
Total liabilities and stockholders' equity | $ | 2,101,085 | $ | 1,413,314 | ||||
Fermi Inc.
Condensed Consolidated Statements of Operations
(in thousands, except share and per share numbers)
(unaudited)
| Three Months Ended September 30, | For the period from January 10, 2025 (Inception) through September 30, 2025 | |||||||||||||||
| 2026 | 2025 | For the period from January 10, 2025 (Inception) through September 30, 2025 | ||||||||||||||
| Expenses: | ||||||||||||||||
General and administrative | $ | 142,161 | $ | 37,776 | $ | 335,164 | $ | 43,463 | ||||||||
Total expenses | 142,161 | 37,776 | 335,164 | 43,463 | ||||||||||||
Loss from operations | (142,161 | ) | (37,776 | ) | (335,164 | ) | (43,463 | ) | ||||||||
| Other income (expense): | ||||||||||||||||
Interest income (expense) | 2,207 | 12 | 5,509 | (669 | ) | |||||||||||
Other income (expense), net | (1,645 | ) | (309,048 | ) | (26,443 | ) | (309,048 | ) | ||||||||
Total other income (expense) | 562 | (309,036 | ) | (20,934 | ) | (309,717 | ) | |||||||||
Net loss | $ | (141,599 | ) | $ | (346,812 | ) | $ | (356,098 | ) | $ | (353,180 | ) | ||||
Net loss per share - basic and diluted | $ | (0.22 | ) | $ | (0.84 | ) | $ | (0.56 | ) | $ | (0.95 | ) | ||||
Weighted average shares outstanding - basic and diluted | 642,652,819 | 466,493,415 | 636,652,949 | 416,237,306 | ||||||||||||
Fermi Inc.
Condensed Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
| Nine Months Ended September 30, 2026 | For the period from January 10, 2025 (Inception) through September 30, 2025 | |||||||
Cash flows used in operating activities: | ||||||||
Net loss | $ | (356,098 | ) | $ | (353,180 | ) | ||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
Share-based compensation | 184,475 | 24,814 | ||||||
Share-based compensation expense, related party | - | 3,616 | ||||||
Share-based payments for professional services | 21,988 | - | ||||||
Share-based charitable contribution expense | - | 173,784 | ||||||
Loss on extinguishment of debt | 24,753 | - | ||||||
Change in fair value as a result of fair value remeasurements | - | 111,590 | ||||||
Series A and Series B Convertible Notes inducement expense | - | 23,674 | ||||||
Write-off of previously capitalized construction in progress | 6,918 | - | ||||||
Other | 6,858 | 680 | ||||||
Changes in operating assets and liabilities: | ||||||||
Accounts payable and accrued liabilities | 15,345 | 10,799 | ||||||
Prepaid expenses and other assets | (14,793 | ) | (4,068 | ) | ||||
Net cash used in operating activities | $ | (110,554 | ) | $ | (8,291 | ) | ||
Cash flows used in investing activities: | ||||||||
Investments in property, plant, and equipment | (759,549 | ) | (96,321 | ) | ||||
Net cash used in investing activities | $ | (759,549 | ) | $ | (96,321 | ) | ||
Cash flows from financing activities: | ||||||||
Proceeds from issuance of debt, net of discount | 979,799 | 201,624 | ||||||
Repayment of Macquarie Term Loan | (144,294 | ) | - | |||||
Principal payments on debt | (3,152 | ) | (15,000 | ) | ||||
Payment of debt issuance costs | (18,953 | ) | (1,012 | ) | ||||
Payment for capped call options | (34,747 | ) | - | |||||
Proceeds from issuance of Preferred Units | - | 107,552 | ||||||
Other financing activities | (1,562 | ) | (5,559 | ) | ||||
Net cash provided by financing activities | $ | 777,091 | $ | 287,605 | ||||
Change in cash, cash equivalents and restricted cash | (93,012 | ) | 182,993 | |||||
Cash, cash equivalents and restricted cash, at beginning of period | 408,529 | - | ||||||
Cash, cash equivalents and restricted cash, at end of period | $ | 315,517 | $ | 182,993 | ||||
Cash, cash equivalents and restricted cash, at end of period: | ||||||||
Cash and cash equivalents | $ | 286,327 | $ | 83,693 | ||||
Restricted cash | 29,190 | 99,300 | ||||||
Cash, cash equivalents and restricted cash, at end of period | $ | 315,517 | $ | 182,993 | ||||
SOURCE: Fermi Inc.
View the original press release on ACCESS Newswire
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What agreements did Fermi sign for the 600 MW Project Matador development?
Fermi signed a $200 million prepayment agreement and a $15 million early construction and site development agreement with an undisclosed investment-grade hyperscale customer. The development begins in 2027. The parties are still working toward a definitive long-term lease and finalizing a $90 million structural steel and building materials purchase agreement.
What were Fermi's third-quarter 2026 financial results?
Fermi reported a $141.599 million net loss, or $0.22 per basic and diluted share, compared with a $346.812 million loss, or $0.84 per share, a year earlier. General and administrative expenses increased to $142.161 million from $37.776 million.
How much non-cash stock compensation did Fermi report for the third quarter of 2026?
Fermi's third-quarter general and administrative expenses included $65.8 million of non-cash stock compensation. They also included $21.5 million of financial advisory fees settled through common stock issuance.