Terrestrial Energy Reports First Quarter 2026 Results
CHARLOTTE, N.C.--( BUSINESS WIRE)--Terrestrial Energy Inc. (NASDAQ: IMSR) (“Terrestrial Energy” or “the Company”), a developer of Generation IV small modular nuclear power plants, today announced its financial results for the first quarter ended March 31, 2026.
“During the quarter, Terrestrial Energy delivered against the three-pillar framework outlined in March – IMSR engineering and regulatory programs, including our key project engagements with the U.S. Department of Energy, supply chain development, and our commercial pipeline of IMSR Plant projects,” said Simon Irish, CEO of Terrestrial Energy. “These developments move us closer to serving large industrial markets and the opportunity to power AI, advanced manufacturing, and the broader U.S. economy.”
Engineering and Regulatory Highlights:
Supply Chain Developments:
Commercial pipeline of IMSR Plant Projects:
Performance, Liquidity and Capital Structure:
The Company ended the quarter with a strong balance sheet, reporting $289.9 million in cash and investments as of March 31, 2026. This liquidity provides a substantial runway to deliver important developments across the three pillars of the IMSR plant development and commercialization.
During the quarter, the Company reported cash burn of $7.9 million, an increase of $1.8 million compared to the prior quarter after consideration of one-time transaction costs associated with the merger. Two items drove much of the increase: a first quarter 2026 payment of $0.6 million for 2025 discretionary bonuses; and, $1.0 million paydown of accounts payable to vendors offering extended credit terms. The remaining $0.2 million increase of first quarter cash burn is attributable to higher sequential payments for research and development.
At quarter end 105.9 million shares were issued and outstanding, which is largely unchanged from December 31, 2025. This consisted of 82.2 million common shares and 23.7 million exchangeable shares, the latter exchangeable into common shares on a one-for-one basis at the option of the holder.
Conference Call and Webcast
Terrestrial Energy will host a conference call today at 8:30 a.m. Eastern Time to discuss the Company’s financial results. The live webcast of the conference call and accompanying presentation materials can be accessed through Terrestrial Energy’s website at ir.terrestrialenergy.com. For those unable to access the webcast, the conference call can be accessed by dialing (877) 407-4019 (domestic) or +1 (201) 689-8337 (international) and requesting the Terrestrial Energy First-Quarter 2026 Earnings Conference Call. For those unable to listen to the live conference call, a replay will be available after the call through the archived webcast in the Events section of Terrestrial Energy’s investor relations website or by dialing (877) 660-6853 or (201) 612-7415. The access code for the replay is 13760489. The replay will be available until 11:59 PM ET on May 28, 2026.
Conference Participation
In addition to its first quarter 2026 results, Terrestrial Energy today announced that management will participate in the 2026 RBC Capital Markets Global Energy, Power, and Infrastructure Conference being held Tuesday, June 2 nd to Wednesday, June 3 rd at the Westin New York Grand Central in New York, NY.
Terrestrial Energy’s Chief Executive Officer, Simon Irish, will be available for one-on-one meetings with investors during the event. In addition, he will participate in a panel discussion on the Nuclear Renaissance on Wednesday, June 3 rd at 1:20pm ET.
To schedule a one-on-one meeting with Terrestrial Energy’s management team, please contact Investor Relations at investor@terrestrialenergy.com.
About Terrestrial Energy
Terrestrial Energy is a developer of Generation IV nuclear plants that use its proprietary Integral Molten Salt Reactor (IMSR). The IMSR captures the transformative operating benefits of molten salt reactor technology in a plant design that represents true innovation in capital efficiency, cost reduction, versatility and functionality of nuclear energy supply. IMSR plants are designed to be small and modular for distributed supply of low-cost, reliable, dispatchable, clean, high-temperature industrial heat and electricity, and to be customized for a dual-use energy role relevant to many industrial applications, such as petrochemical and chemical synthesis, and data center operation. In so doing, IMSR plants extend the application of nuclear energy far beyond electric power markets. Their deployment will support the rapid growth of clean firm heat and power, delivering energy self-reliance, grid reliability and economic growth. Terrestrial Energy uses an innovative plant design together with proven and demonstrated molten salt reactor technology and readily-available and inexpensive standard-assay low-enriched uranium in its fuel for a nuclear plant with a unique set of operating characteristics and compelling transformative commercial potential. Terrestrial Energy is engaged with regulators, suppliers, industrial partners and energy end-users to build, license and commission the first IMSR plants in the early 2030s.
Forward-Looking Statements
The statements contained in this press release that are not purely historical are forward-looking statements. These forward-looking statements include, but are not limited to, statements regarding our expectations, milestones, hopes, beliefs, intentions or strategies regarding the future. In addition, any statements that refer to projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. The words “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intends,” “may,” “might,” “plan,” “possible,” “potential,” “predict,” “project,” “should,” “will,” “would” and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking.
The forward-looking statements contained in this press release are based on our current expectations and beliefs concerning future developments and their potential effects on the Company. There can be no assurance that future developments affecting the Company will be those that we have anticipated. These forward-looking statements speak only as of the date of this press release and involve a number of risks, uncertainties (some of which are beyond our control) or other assumptions that may cause actual results or performance to differ materially from those expressed or implied by these forward-looking statements. Factors that may cause actual results to differ materially from current expectations include, but are not limited to: (1) risks related to the development, manufacturing and construction of IMSR Plants and key components, including potential delays, cost overruns and contractor performance issues; (2) the Company’s ability to obtain applicable regulatory approvals and licenses on a timely basis or at all; (3) the ability of management to manage growth; (4) the possibility that the Company may be adversely affected by other economic, business, and/or competitive factors, including from alternative energy technologies, energy price volatility, and competition from other advanced reactor developers; (5) potential supply chain constraints and cost inflation for specialized nuclear-grade materials and components; (6) any failure to comply with the laws and regulations governing the use, transportation, and disposal of toxic, hazardous and/or radioactive materials; (7) changes in domestic and foreign business, market, financial and political conditions, and in applicable laws and regulations, including tariffs; (8) the ability to raise additional funding in the future; (9) the outcome of any legal proceedings that may be instituted against the Company; and (10) other risk factors described herein as well as the risk factors and uncertainties described in the documents filed by the Company from time to time with the U.S. Securities and Exchange Commission (the “SEC”).
The foregoing list of risk factors is not exhaustive. You should carefully consider the foregoing risk factors and the other risks and uncertainties described in the documents filed by the Company from time to time with the SEC. In addition, there may be additional risks that the Company presently knows, or that it currently believes are immaterial, that could also cause actual results to differ from those contained in the forward-looking statements. Nothing in this communication should be regarded as a representation or warranty, either express or implied, by any person that the forward-looking statements set forth herein will be achieved or that any of the contemplated results of such forward-looking statements will be achieved. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made.
In addition, the information contained in this press release is provided as of the date hereof and may change, and the Company and its representatives and affiliates specifically disclaim any obligation to, and do not intend to, update or revise any forward-looking statements, whether as a result of new information, inaccuracies, future events or otherwise, except as may be required under applicable securities laws. Information contained on our website is not a part of or incorporated into this press release.
Terrestrial Energy Inc.
Condensed Consolidated Balance Sheets
(in thousands, except share data)
(Unaudited)
March 31,
December 31,
2026
2025
ASSETS
Current assets
Cash and cash equivalents
$
76,946
$
97,164
Short-term investments
198,018
200,626
Prepaid expenses and other current assets
1,779
1,769
Total current assets
276,743
299,559
Property and equipment, net
831
835
Long-term investments
14,898
—
Intangible assets, net
699
708
Right-of-use assets
1,919
1,814
Other assets
78
64
Total Assets
$
295,168
$
302,980
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable and accrued expenses
$
4,495
$
5,501
Operating lease liabilities, current
520
383
Finance lease liabilities, current
33
33
Total current liabilities
5,048
5,917
Operating lease liabilities, noncurrent
1,478
1,601
Finance lease liabilities, noncurrent
46
56
Total liabilities
6,572
7,574
Commitments and Contingencies (Note 10)
Stockholders’ Equity
Common shares, $0.0001 par value; 500,000,000 authorized shares; 82,242,434 and 81,771,422 shares issued and outstanding as of March 31, 2026 and December 31, 2025, respectively
8
8
Exchangeable shares, $0.0001 par value; 23,692,820 and 24,011,017 shares issued and outstanding as of March 31, 2026 and December 31, 2025
2
2
Additional paid-in-capital
421,734
418,815
Accumulated deficit
(135,128
)
(124,625
)
Accumulated other comprehensive income
1,980
1,206
Total stockholders’ equity
288,596
295,406
Total liabilities and stockholders’ equity
$
295,168
$
302,980
Terrestrial Energy Inc.
Condensed Consolidated Statements of Operations and Comprehensive Loss
(in thousands, except share data)
(Unaudited)
Three months ended
March 31,
2026
2025
OPERATING EXPENSES
Research and development costs
$
4,566
$
1,408
General and administrative
7,304
3,289
Depreciation and amortization
61
181
Total Operating Expenses
11,931
4,878
OPERATING LOSS
(11,931
)
(4,878
)
OTHER INCOME (EXPENSE)
Government grants
48
23
Interest expense
(2
)
(1,231
)
Interest expense – related party
—
(140
)
Interest and dividend income
1,453
4
Foreign exchange loss
(34
)
(30
)
OTHER INCOME (EXPENSE)
1,465
(1,374
)
Net loss before income tax
(10,466
)
(6,252
)
Income tax expense
(37
)
—
Net loss
(10,503
)
(6,252
)
Loss per common share, basic and diluted
$
(0.10
)
$
(0.10
)
Weighted-Average Shares of Common Shares Outstanding, Basic and diluted
105,861,986
63,170,918
Net loss
$
(10,503
)
$
(6,252
)
Other comprehensive (loss) income net of tax:
Foreign currency translation adjustments
(64
)
(827
)
Change in net unrealized gains on short-term and long-term investments
838
—
Comprehensive loss
$
(9,729
)
$
(7,079
)
Terrestrial Energy Inc.
Condensed Consolidated Statements of Changes in Stockholders’ Equity (Deficit)
(in thousands, except share data)
(Unaudited)
Accumulated
Additional
Other
Total
Common Shares
Exchangeable Shares
Paid-In-
Comprehensive
Accumulated
Stockholders'
Shares
Amount
Shares
Amount
Capital
Income
Deficit
Equity
Balance as of January 1, 2026
81,771,422
$
8
24,011,017
$
2
$
418,815
$
1,206
$
(124,625
)
$
295,406
Stock-based compensation
—
—
—
—
2,761
—
—
2,761
Shares issued upon exercise of options
140,815
—
—
—
158
—
—
158
Conversion of exchangeable shares to common shares
318,197
—
(318,197
)
—
—
—
—
—
Issuance of shares for private placement
12,000
—
—
—
—
—
—
—
Currency translation adjustments
—
—
—
—
—
(64
)
—
(64
)
Change in unrealized gains on short-term and long-term investments
—
—
—
—
—
838
—
838
Net loss
—
—
—
—
—
—
(10,503
)
(10,503
)
Balance, March 31, 2026
82,242,434
$
8
23,692,820
$
2
$
421,734
$
1,980
$
(135,128
)
$
288,596
Accumulated
Other
Additional
Comprehensive
Total
Common Shares
Exchangeable Shares
Paid-In-
Income
Accumulated
Stockholders'
Shares*
Amount
Shares*
Amount
Capital
(Loss)
Deficit
Deficit
Balance as of January 1, 2025, as recast
39,159,901
$
4
24,011,017
$
2
$
82,774
$
337
$
(96,608
)
$
(13,491
)
Stock-based compensation
—
—
—
—
180
—
—
180
Issuance of warrants in connection with convertible notes, net of tax
—
—
—
—
2,595
—
—
2,595
Currency translation adjustments
—
—
—
—
—
(827
)
—
(827
)
Net loss
—
—
—
—
—
—
(6,252
)
(6,252
)
Balance, March 31, 2025
39,159,901
$
4
24,011,017
$
2
$
85,549
$
(490
)
$
(102,860
)
$
(17,795
)
* Share amounts have been retroactively restated to give effect to the Business Combination.
Terrestrial Energy Inc.
Condensed Consolidated Statements of Cash Flows
(in thousands)
(Unaudited)
Three months ended
March 31,
2026
2025
Cash flows from operating activities
Net loss
$
(10,503
)
$
(6,252
)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization
61
181
Amortization of debt discount
—
517
Interest income and accretion of discount on investments, net
(55
)
—
Stock-based compensation
2,761
180
Unrealized foreign currency transaction gain
(378
)
(96
)
Noncash lease expense
99
62
Changes in operating assets and liabilities
Prepaid expenses and other current assets
27
(150
)
Accounts payable and accrued expenses
(908
)
2,023
Accrued interest
—
663
Accrued interest - related party
—
143
Operating lease payments
(197
)
(31
)
Net cash used in operating activities
(9,093
)
(2,760
)
Cash flows from investing activities
Purchases of intangible assets
—
(21
)
Purchases of property and equipment
(53
)
(163
)
Purchase of investments
(73,146
)
—
Proceeds from redemptions of investments
61,693
—
Net cash used in investing activities
(11,506
)
(184
)
Cash flows from financing activities
Proceeds from issuance of convertible notes
—
9,335
Proceeds from issuance of convertible notes – related parties
—
1,650
Proceeds from the exercise of stock options for common shares
158
—
Repayment of finance lease liabilities
(9
)
(40
)
Net cash provided by financing activities
149
10,945
Effect of exchange rate changes on cash and cash equivalents
232
295
(Decrease) increase in cash and cash equivalents during the period
(20,218
)
8,296
Cash and cash equivalents, beginning of period
97,164
3,022
Cash and cash equivalents, end of period
$
76,946
$
11,318
Supplemental noncash investing and financing activities
Recognition of warrants in connection with convertible notes, net of tax
$
—
$
2,595
Operating lease liabilities obtained in exchange for operating lease assets
$
228
$
—