IMSR

Mission and Strategic Differentiation

• Founding mission: Deliver affordable, capital-efficient nuclear power at scale to meet global decarbonization and energy demand needs.
• Five core IMSR plant differentiators: 390 MWe right-sized output for financeable, co-located generation; high nuclear system energy density enabling efficient modular factory construction; best-in-class 585°C operating temperature; low-pressure nuclear system operation; high inherent safety from molten salt reactor technology.
• Unique fuel supply strategy: Uses widely available low-enriched uranium (LEU <5%) and eliminates the third complex, capital-intensive fuel manufacturing step required for solid-fuel reactors, resulting in a simpler, lower-cost, more scalable supply chain that requires only one new production facility, partnered with Westinghouse for chemical form supply.

Three-Pillar Business Execution Progress

• Engineering and Regulatory: DOE-partnered test reactor (Project Tetra) and fuel line pilot (Project TEFLA) advanced during the quarter. NRC approved the company's topical report on postulated initiation events methodology, adding to the previously approved principal design criteria report; these approvals form a foundational licensing basis that does not require re-evaluation for future applications. Graphite irradiation testing at the NRG Patton test reactor continued, with additional irradiation cycles added to build in-house materials knowledge.
• Supply Chain: Procurement for Tetra and TEFLA projects continues. A new engineering services agreement was signed with Zachary Nuclear to support site characterization and data collection for the planned commercial IMSR plant at the Texas A&M RELLIS campus, to support NRC construction permit application.
• Commercial Pipeline: Signed an exclusive 77-acre ground lease and research agreement with Texas A&M at the RELLIS campus to complete pre-construction site and environmental work. Announced a strategic partnership with Riot Platforms to supply power for Riot's data center operations, targeting 4 GW of total IMSR generation capacity. Total indicative pipeline capacity now stands at 7.8 GW across three core market verticals: data centers, industrial process heat, and coal plant replacement.

Organizational Updates

• Added Pam Cohen, a 35-year veteran commercial nuclear executive with senior leadership experience at Westinghouse and Holtec, as Executive Vice President of Engineering.
• Added Cathy McCarthy, a leading national lab nuclear project leader with experience at Oak Ridge National Laboratory and management of U.S. participation in ITER, to the Board of Directors.

Unit Economics Update

• Updated lifetime unit economics for a single IMSR plant: total cumulative lifetime revenues increased to $2.7 billion from the prior $2.1 billion estimate, with blended gross margin rising to 33% from 22%. 79% of lifetime revenues are recurring post-construction revenue from core unit replacements and ongoing fuel salt supply, delivered via long-term contracts. Updated serviceable addressable market to $2.3 trillion by 2050, a $400 billion increase from the prior estimate.

• The company reaffirmed the full-year 2026 guidance provided in March, and confirmed that it is on track to meet execution milestones against the 2026 business plan.
• Cash burn is expected to increase in the second half of 2026, consistent with prior guidance, as the company scales testing programs, advances site work at the RELLIS campus, and expands organizational capacity.
• Management expects to submit at least two additional topical reports to the NRC in the remaining quarters of 2026, meeting the full-year guidance of three total topical reports for 2026 (one has already been approved).

Terrestrial Energy is an SMR technology developer with two core business segments: IMSR core unit supply and IMSR fuel salt supply. No separate quarterly revenue figures are reported for individual segments as the company is still in pre-commercial development. For the full lifetime of a single 390 MWe IMSR plant, total cumulative estimated revenues are $2.7 billion, with IMSR core unit supply contributing 58% of total lifetime revenues and fuel salt supply contributing 21% of total lifetime revenues. Estimated gross profit margins are 33% for core unit supply and 40% for fuel salt supply. On a consolidated basis, the company ended Q2 2026 with $283.4 million in total cash, cash equivalents, and investments. Quarterly cash burn was $6.4 million ($2.2 million per month), down from $7.9 million ($2.6 million per month) in Q1 2026. Research and development expenses decreased ~$1.1 million quarter-over-quarter, while general and administrative expenses increased ~$700,000 quarter-over-quarter, primarily due to higher stock-based compensation from headcount growth.

• All forward-looking statements around licensing, commercialization, and unit economics are subject to inherent risks and uncertainties, including regulatory approval timelines, supply chain development challenges, and the need for new infrastructure buildout, which could cause actual results to differ materially from management expectations. These risks are detailed further in the company's SEC filings.
• Pre-commercial development of advanced nuclear technology requires long-cycle execution, with technical and regulatory risks that can impact project timelines and costs.
• First-of-a-kind project capital formation carries uncertainty, as the SMR sector is still emerging and there is limited precedent for financing new advanced nuclear projects.

Q: What drove the recent upward update to IMSR unit economics, and has the core business approach changed fundamentally? / A: No fundamental changes to the company's approach or scope have occurred. The update is a refined iteration of unit economics estimates, driven by 18 months of detailed engineering work on the TEFLA fuel pilot project. The update also provides clearer context on the company's two core recurring revenue businesses (core unit and fuel supply) that will drive long-term value creation.\n\nQ: How does the IMSR natural gas bridge fuel model work, and what are its benefits for customers? / A: The IMSR's non-nuclear balance of plant sits outside the core nuclear regulatory envelope, allowing it to operate on natural gas first before nuclear systems are activated. Customers can bring commercial power online within 5 years by using existing, standard industrial equipment for the natural gas system, with all capital deployed being dual-purpose (usable for both natural gas and nuclear operation long-term). This meets the speed-to-power demand of data center customers, while delivering clean nuclear power in the longer term.\n\nQ: Is IMSR fuel commercially available today, and how does the fuel qualification process differ from solid-fuel reactors? / A: The required LEU isotopic form of fuel is already commercially available. The only new step needed is production of the required chemical form (enriched uranium tetrafluoride), which uses a well-understood fluorination process that the company is developing with Westinghouse in a single new production facility. For liquid-fuel molten salt reactors like the IMSR, fuel qualification is far simpler than for solid-fuel reactors: it only requires collecting data on the fuel salt's thermal properties, rather than multi-year testing of solid fuel performance and containment integrity.\n\nQ: Can you share additional details on the Riot Platforms partnership, including project financing expectations? / A: The parties are currently completing preliminary site characterization work, with plans to down-select to a first candidate site in the near term; details on site location and timeline are not yet public. Management expects financing to draw on federal and state policy support, with equity capital coming from consortium members that have strategic interest in the project's success, as the first IMSR projects are the entry point to a $2.3 trillion long-term addressable market. Terrestrial Energy will not own or operate plants, so it will not lead project financing.