Despite reporting a wider-than-expected loss for the quarter, shares of Oklo Inc. (NYSE:OKLO) jumped more than 8% during Wednesday morning trading as investors shifted focus to accelerating regulatory approvals, advanced fuel milestones, and U.S. government programs positioning the company at the center of a modern nuclear energy buildout.
According to Benzinga Pro, Oklo reported an EPS of negative $0.20 for its fiscal third quarter ending September, missing consensus estimates of negative $0.13 by a wide margin.
The earnings surprise of negative 52.67% was driven by operating expenses of $36.3 million, including $9.1 million in stock-based compensation, as the company ramps up ahead of its first plant launch. Revenue remains at zero as the company is still pre-commercial.
Despite the loss, some Wall Street analysts remain optimistic, citing key strategic milestones that strengthen Oklo's long-term growth narrative.
Chart: Oklo Stock Pops Despite Earnings Miss
Analysts Say Oklo's Making Progress—But Execution Will Be Key
While Oklo is still losing money and hasn't yet started generating revenue, analysts say the company is gaining momentum where it matters: government support, regulatory approvals, and a fast-track to getting its first plant up and running.
Wedbush analyst Dan Ives said the report laid out a long-term plan for Oklo's role in the next wave of nuclear energy deployment, made possible by recent policy shifts and regulatory breakthroughs.
“Oklo continues to see regulatory acceleration for its projects,” Ives said, citing the Department of Energy's (DOE) approval for the company to construct and operate a nuclear facility under a new executive order signed by President Trump in May.
Instead of pursuing a traditional Combined Operating License Application (COLA), Oklo will advance its Aurora project at Idaho National Laboratory (INL) through a DOE pilot program, which could accelerate timelines for commercial operations.
The facility officially broke ground in September, with full excavation set to begin in January.
Oklo was also selected for three separate pilot projects under the DOE's new Reactor Pilot Program, which targets operational demonstration of advanced reactors by July 2026.
Ives called this “a modern pathway to get new nuclear plants built quickly,” noting that Oklo's licensing and design progress has already outpaced historic timelines, with one design criteria submission accepted by the NRC in just 15 days—half the usual review time.
BTIG analyst Gregory Lewis acknowledged Oklo’s regulatory momentum but emphasized the importance of delivery and scale.
"Execution is the next test," Lewis said, referring to the shift in Oklo's strategy to prioritize DOE-supervised construction before returning to NRC licensing for commercial operations.
Lewis also highlighted that Oklo "received DOE approval for its Aurora fuel fabrication facility (A3F) at INL," calling attention to its role in the DOE's push to accelerate fuel development.
Oklo plans to eventually build out multiple fuel sites, though "management didn’t disclose timing," he said.
Turning to fuel recycling, Lewis added that "Oklo plans to begin recycling fuel at the first phase of its ~$1.7B Tennessee facility in the early 2030s," sourcing used fuel from the Tennessee Valley Authority and possibly selling electricity back to the utility.
Still, he made it clear that uncertainty remains. "We do not expect OKLO to deploy significant reactor capacity until the early-2030s," Lewis said.
At Bank of America, analyst Dimple Gosai struck a similarly balanced tone. She described the company's third-quarter update as "constructive," noting that it "delivered meaningful progress on fuel de-risking and regulatory milestones."
However, she flagged key unknowns. "Capex and PPAs in focus," Gosai wrote, referring to construction costs and power purchase agreements—two critical pieces that investors are still waiting to see.
She also pointed out that while Oklo's model shows promise, it hasn't been proven yet. "Until Oklo proves scalable, low-cost throughput, the model is more concept than margin," Gosai wrote.
Should You Buy Nuclear Stocks On The Dip?
Since peaking in early October, the VanEck Uranium and Nuclear ETF (NYSE:NLR) has dropped nearly 20%, even as long-term fundamentals continue to strengthen. For investors seeking diversified exposure to nuclear energy—including Oklo—NLR provides a compelling basket of names poised to benefit from growing global demand.
The top holdings in the VanEck Uranium and Nuclear ETF (NYSE:NLR) include Cameco Corp. (NYSE:CCJ) with an 8.15% weighting, followed by Constellation Energy Corp. (NYSE:CEG) at 7.75%, and Oklo Inc. at 6.50%. Other notable positions are BWX Technologies Inc. (NYSE:BWXT) at 6.17%, Centrus Energy Corp. (NYSE:LEU) at 5.12%, and JSC National Atomic Company Kazatomprom at 4.54%. Rounding out the top 10 are Public Service Enterprise Group Inc. (NYSE:PEG) at 4.38%, PG&E Corp. (NYSE:PCG) at 4.33%, NexGen Energy Ltd. (NYSE:NXE) at 4.28%, and Denison Mines Corp. (NYSE:DNN) at 4.17%.
Long-term thematic strategists at Bank of America remain bullish on the nuclear energy theme.
“Nuclear energy holds the answer to the world’s power shortages, opening up a potential >$10 trillion market,” said Felix Tran, strategist at BofA's thematic investment team.
“With flexible deployment vs. large conventional power plants, small nuclear reactors (SMRs) are also cheaper, safer, take less time to build and have fewer CO2 emissions,” he added.
Tran also flagged nuclear fusion as the longer-term game changer: “Breakthroughs in superconducting magnets and AI simulation are reducing the timeline to commercialization.”
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