Oklo vs. NuScale Power: Which Utilities Stock Is a Better Buy in 2026?

As the world pivots toward reliable, carbon-free energy, investors are weighing the potential of small modular reactors. The choice between Oklo (NYSE:OKLO) and NuScale Power (NYSE:SMR) could define a generation of nuclear investment.

Oklo aims to build and operate its own fast-fission power plants, focusing on high-demand data centers. NuScale Power develops modular reactor technology intended for global utility deployment and industrial use. While both companies pursue advanced fission, their differing business models and regulatory stages present unique paths for those seeking exposure to the next nuclear wave.

The case for Oklo

Oklo focuses on a direct owner-operator model, meaning it plans to design, build, and run its own powerhouses under long-term agreements. The company targets high-energy users like data centers and factories, recently securing a prepayment agreement with Meta Platforms (NASDAQ:META) for a significant power campus. Oklo also has agreements with Switch and non-binding letters of intent with Equinix (NASDAQ:EQIX) and Diamondback Energy (NASDAQ:FANG). Customer concentration like this adds a layer of risk to the business, as early success depends on a few major partners.

As investors evaluate these utility stocks, they must look at the financial starting point provided in its latest annual report. In FY 2025, Oklo reported revenue of $0.0 because its powerhouses are not yet operational. The company recorded a net loss of nearly $105.7 million for the period. This represents an increase in losses compared to the roughly $73.6 million net loss reported in the prior year, highlighting the heavy costs of development.

As of its December 2025 balance sheet, the company maintains a debt-to-equity ratio of 0.0x. This means the company has no total debt relative to its shareholder equity. Its current ratio of approximately 49.1x suggests a massive cushion of liquid assets. However, free cash flow was negative at approximately $115.4 million during FY 2025. Free cash flow is calculated as cash from operations minus capital expenditures, and it shows the actual cash a company generates or burns.

The case for NuScale Power

NuScale Power specializes in small modular reactor technology, which is designed to be safer and more flexible than traditional nuclear plants. It plans to serve global customers for electricity generation and industrial heating through its modular units. The company has a teaming agreement with RoPower Nuclear for projects in Romania and works closely with ENTRA1. It is also collaborating with the Tennessee Valley Authority (NYSE:TVC) to explore plant development. This licensing-heavy approach relies on modularity to lower costs for customers.

In its latest annual report covering FY 2025, revenue reached approximately $31.5 million, which was a decrease of roughly 15% from the previous year. The company reported a net loss of nearly $355.8 million during this period. This loss widened significantly from the roughly $136.6 million loss in the prior fiscal year. These figures reflect the substantial research and development costs required to bring advanced nuclear technology to market.

Based on its December 2025 balance sheet, NuScale Power carries a debt-to-equity ratio of 0.0x. This indicates that total debt is essentially zero compared to equity. The current ratio stands at approximately 4.3x, showing the company can comfortably meet its short-term obligations. Free cash flow for FY 2025 was nearly negative $460.1 million. This measure of cash generation is vital for understanding how much capital the business requires for its ongoing expansion efforts.

Risk profile comparison

Oklo faces the hurdle of having no current commercial operating history, making its deployment of first-of-a-kind powerhouses highly complex. Revenue depends on turning non-binding agreements into binding ones and securing high-assay low-enriched uranium fuel. Supply of this fuel is subject to geopolitical sanctions and market volatility. Furthermore, the company is managing potential cybersecurity threats and legal investigations regarding its previous public disclosures.

NuScale Power is currently navigating federal securities class action lawsuits alleging misrepresentations about its commercial strategy. The company relies heavily on its partnership with ENTRA1 for development, which could limit its ability to pursue other independent projects. There is also a risk related to the lack of binding contracts for its modules and potential liquidity challenges from tax-related payments. These factors suggest significant hurdles as the company moves toward full-scale commercialization.

Valuation comparison

The Forward P/E for both companies is unavailable due to negative future earnings estimates, but Oklo carries a measurable sales multiple.

Valuation metrics include sourcing from Financial Modeling Prep (FMP) and may differ from other data providers.

Which stock would I buy in 2026?

Historically, nuclear energy has had a bad reputation due to high-profile disasters and concerns over radioactive waste. But companies like Oklo and NuScale Power represent a fundamental shift in the nuclear power industry. Small modular reactors (SMRs) and microreactors incorporate newer safety features and designs, and many believe they could play an important role in the future of carbon-free energy. Considering the enormous electricity demands of data centers, there also appears to be significant potential for these companies to thrive.

NuScale is currently the only SMR designer with design approval from the U.S. Nuclear Regulatory Commission, giving it regulatory traction that Oklo lacks for the time being. It generated $31.5 million in revenue in fiscal 2025, supported by partners like ENTRA1 and RoPower. It has been burning significant cash, though, with a net loss of $355.8 million in FY 2025. And while its partnerships are helping it move toward deployment, they also create considerable reliance on those partners.

By contrast, Oklo is pre-revenue and reported a $105.7 million net loss for FY 2025. It has prepayment agreements with partners like Meta Platforms, suggesting there could be strong demand once it achieves regulatory approval and begins deployment. Although it currently carries no debt, its future remains largely unproven.

Investors seeking exposure to the next generation of nuclear energy providers may find NuScale the more attractive investment because it is already generating revenue and has achieved regulatory approval for its SMR design. But both stocks carry significant risks. I would choose NuScale, but would definitely make it a small part of a well-diversified portfolio.

Pamela Kock has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Equinix and Meta Platforms. The Motley Fool recommends NuScale Power. The Motley Fool has a disclosure policy.