Fervo Energy Co
For the period ended Sep 30, 2026. Filed Nov 10, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2026 · Filed Nov 10, 2026
FRVO$11.380.0%Stored close · as of Nov 10, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-06-30; filed 2026-08-13.
0001628280-26-056457
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-11-10.
0001628280-26-072482
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 137 previous paragraphs and 153 current paragraphs.
77 unchanged; 48 reworded; 28 added; 11 removed; 1 previous and 0 current paragraphs rearranged.
Tables are not compared: 4 previous and 4 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (28)
Current report
On November 4, 2026, GeoBlock 2 at Cape Station Phase I achieved grid synchronization and began exporting test energy to the grid. GeoBlock 2 has not yet achieved commercial operation.
Current report
On September 30, 2026, we declared commercial operation for the first standardized GeoBlock at Cape Station in Beaver County, Utah, ahead of its contractual deadline, making it the first greenfield EGS development in the world to achieve this milestone. Cape Station synchronized to the grid on September 24, 2026, and began exporting electricity, marking another global milestone for utility-scale enhanced geothermal development.
Current report
On September 22, 2026, we announced that we had been selected for two potential U.S. Department of Energy awards totaling approximately $20.0 million to accelerate the development of EGS in Idaho and Nevada and to expand next-generation geothermal across the western United States. Funding remains subject to the successful completion of negotiations and the execution of definitive funding agreements. As of September 30, 2026, no funding agreements had been executed, and no funding had been received. If finalized, we intend to use the funding to drill and complete EGS wells in partnership with multiple national labs and to support targeted appraisal campaigns at high-priority EGS prospects to confirm the reservoir is suitable for EGS development.
Current report
On August 26, 2026, Cape Generating Station 6 LLC, a wholly owned subsidiary of Fervo, entered into a 15-year PPA with Google Energy LLC (“Google”) for the sale of energy products from a 396 MW EGS project at Cape Station in Beaver County, Utah. The project is expected to be delivered in four 99 MW sub-tranches beginning in 2028. In connection with the PPA, the Company also agreed to offer Google an expansion of at least 604 MW of additional capacity, which would increase the combined project capacity to approximately 1,000 MW, subject to Google’s acceptance and the negotiation of a definitive agreement. The project and contemplated expansion are intended to support a potential data center in Utah and remain subject to applicable development, engineering and regulatory requirements. Separately, we are currently renegotiating the delivery timing under certain of our existing Cape Station Phase II PPAs, with delivery expected to occur in the early 2030s.
Current report
Operation and maintenance increased by approximately $1.1 million during the three months ended September 30, 2026 compared to the three months ended September 30, 2025, primarily due to an increase in transmission-related fees, partially offset by other changes in operation and maintenance costs.
Current report
Research and Development Expense (Income), Net
Current report
Operating lease expense decreased by $2.6 million during the three months ended September 30, 2026 compared to the three months ended September 30, 2025, primarily due to an increase in building lease costs capitalized in Property, plant and equipment, net associated with our development projects during the current-year period.
Current report
Interest expense decreased by $0.3 million during the three months ended September 30, 2026 compared to the three months ended September 30, 2025, primarily due to an increase in interest capitalized during the current-year period.
Current report
Changes in Fair Value of Interest Rate Swaps
Current report
Changes in fair value of interest rate swaps increased by $11.8 million during the three months ended September 30, 2026 compared to the three months ended September 30, 2025 due to interest rate swaps entered into during 2026.
Current report
Other Non-Operating Income (Expense), Net
Current report
Other non-operating income (expense), net increased by $0.5 million during the three months ended September 30, 2026 compared to the three months ended September 30, 2025, primarily due to interest received related to a tariff refund and other changes that were not individually significant period-over-period.
Current report
Income Tax Benefit (Expense)
Current report
Income tax benefit increased by $29.9 million during the three months ended September 30, 2026 compared to the three months ended September 30, 2025 due to the recognition of ITCs related to assets placed in service at Cape Station.
Current report
Net Loss Attributable to Fervo Energy Company
Current report
Net loss attributable to Fervo Energy Company was $19.5 million for the three months ended September 30, 2026, compared to $15.8 million for the three months ended September 30, 2025. The change was primarily attributable to $31.2 million of net income attributable to redeemable noncontrolling interest during the three months ended September 30, 2026, in addition to the factors described above.
Current report
Operation and maintenance expenses increased by approximately $1.5 million during the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025, primarily due to an increase in transmission-related fees, partially offset by other changes in operation and maintenance costs.
Current report
Research and Development Expense (Income), Net
Current report
Employee‑related expenses increased by $31.8 million during the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025. The increase primarily consisted of a $15.3 million increase in stock-based compensation expense, including expense related to our employee stock purchase plan and net of amounts capitalized. The remaining increase was primarily attributable to higher compensation and benefit costs due to workforce growth.
Current report
Operating lease expense decreased by $0.7 million during the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025, primarily due to an increase in building lease costs capitalized in Property, plant and equipment, net associated with our development projects during the current-year period.
Current report
Interest expense increased by $2.8 million during the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025, primarily due to higher debt balances, including increased borrowings under the loan agreements with XRL ALC, LLC (“XRC Facility”) prior to its repayment in April 2026 and borrowings under the senior secured project financing facility entered into in March 2026 (“Project Granite Facility”) to support our growth and operations.
Current report
Changes in Fair Value of Interest Rate Swaps
Current report
Changes in fair value of interest rate swaps increased by $13.0 million during the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025 due to interest rate swaps entered into during 2026.
Current report
Other Non-Operating Income (Expense), Net
Current report
Income Tax Benefit (Expense)
Current report
Income tax benefit increased by $29.9 million during the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025 due to the recognition of ITCs related to assets placed in service at Cape Station.
Current report
Net Loss Attributable to Fervo Energy Company
Current report
Net loss attributable to Fervo Energy Company was $107.3 million for the nine months ended September 30, 2026, compared to $36.4 million for the nine months ended September 30, 2025. The change reflects $31.2 million of net income attributable to redeemable noncontrolling interest during the nine months ended September 30, 2026, in addition to the factors described above.
Removed paragraphs (11)
Previous report
Operation and maintenance expenses increased approximately $0.1 million during the three months ended June 30, 2026 compared to the three months ended June 30, 2025, primarily attributable to modest increases in contracted labor, engineering support and site evaluation activities. The change was not material to overall results.
Previous report
Research and Development (Income) Expense, Net
Previous report
Operating lease expense increased by $1.3 million during the three months ended June 30, 2026 compared to the three months ended June 30, 2025, primarily due to additional lease arrangements supporting the expansion of our geothermal portfolio across approximately 630,000 acres. The increase reflects growth in our operating lease portfolio from 205 leases as of June 30, 2025 to 255 leases as of June 30, 2026. These lease arrangements primarily relate to geothermal resource rights, as well as office facilities and equipment rentals.
Previous report
Interest expense increased by $0.5 million during the three months ended June 30, 2026 compared to the three months ended June 30, 2025, primarily due to higher outstanding debt balances. Total debt increased by $162.5 million as of June 30, 2026 compared to June 30, 2025, reflecting borrowings under the senior secured project financing facility entered into in March 2026 (“Project Granite Facility”) and Mercuria Energy Trading SA (“Mercuria”), which include our credit agreement (the “Mercuria Credit Facility”) and the letter of credit facility (the “Mercuria Letter of Credit Facility”) to support our growth and operations. The increase was partially offset by a gain on interest rate swaps recognized during the period ended June 30, 2026.
Previous report
Other Non-Operating Expense, Net
Previous report
Operation and maintenance expenses increased approximately $0.4 million during the six months ended June 30, 2026 compared to the six months ended June 30, 2025, primarily attributable to modest increases in contracted labor, engineering support and site evaluation activities.
Previous report
Research and Development (Income) Expense, Net
Previous report
Employee‑related expenses increased by $15.6 million during the six months ended June 30, 2026 compared to the six months ended June 30, 2025, primarily due to the cumulative impact of workforce growth to support project development, execution, and corporate operations. The expansion of our employee base resulted in higher compensation-related costs, including salaries, payroll taxes, health and welfare benefits, performance‑based bonuses, stock‑based compensation, and retirement plan contributions.
Previous report
Operating lease expense increased by $1.9 million during the six months ended June 30, 2026 compared to the six months ended June 30, 2025, primarily attributable to additional geothermal resource rights and other lease arrangements supporting our expansion of our geothermal portfolio across approximately 630,000 acres.
Previous report
Interest expense increased by $2.0 million during the six months ended June 30, 2026 compared to the six months ended June 30, 2025, primarily due to higher outstanding debt balances associated with borrowings under the Project Granite Facility and Mercuria financing arrangements. The increase was partially offset by a gain on interest rate swaps recognized during the period ended June 30, 2026.
Previous report
Other Non-Operating Expense, Net
Reworded paragraphs (48)
Previous wording
Factors that could cause the outcomes to differ materially include (but are not limited to) the following: risks related to expanding our geothermal operations and accessing new markets; challenges in maintaining compliance with extensive environmental regulations and permitting requirements, including evolving climate change initiatives that may impact operational costs; uncertainties in forecasting future operational results and growth due to economic conditions and market demand; inherent risks in the geothermal industry, including potential operational disruptions and associated liabilities; the influence of consumer preferences, government policies, and competition on the demand for geothermal energy; risks associated with fluctuations in energy prices and material costs; dependence on a complex supply chain and successful maintenance of our geothermal infrastructure; financial performance influenced by fluctuations in interest rates, capital availability, and other market conditions; capacity actually constructed or for which we enter power purchase agreements under non-binding agreements, like the Geothermal Framework Agreement with Google Energy LLC (the “GFA”); exposure to legal proceedings and claims arising from our business operations; protecting our brand reputation and facing potential negative public perception; negative public perception and political opposition impacting our ability to secure regulatory approvals and market acceptance; the successful and timely execution of our growth strategy, with risks of delays or failures; reliance on key personnel and the potential impact of labor costs and workforce challenges; heavy reliance on technology systems and potential cybersecurity threats; global economic and political conditions affecting our operations, supply chain, and customer demand; the risk that our estimates of capacity potential and heat initially in place are inaccurate or that we are unable to produce quantities of electrical energy commensurate with such estimates; and other risks and uncertainties, including those set forth under the section entitled “Risk Factors” in this Report.
Current wording
Factors that could cause the outcomes to differ materially include (but are not limited to) the following: risks related to expanding our geothermal operations and accessing new markets; challenges in maintaining compliance with extensive environmental regulations and permitting requirements, including evolving climate change initiatives that may impact operational costs; uncertainties in forecasting future operational results and growth due to economic conditions and market demand; inherent risks in the geothermal industry, including potential operational disruptions and associated liabilities; the influence of consumer preferences, government policies, and competition on the demand for geothermal energy; risks associated with fluctuations in energy prices and material costs; dependence on a complex supply chain and successful maintenance of our geothermal infrastructure; financial performance influenced by fluctuations in interest rates, capital availability, and other market conditions; capacity actually constructed or for which we enter power purchase agreements under non-binding agreements; exposure to legal proceedings and claims arising from our business operations; protecting our brand reputation and facing potential negative public perception; negative public perception and political opposition impacting our ability to secure regulatory approvals and market acceptance; the successful and timely execution of our growth strategy, with risks of delays or failures; reliance on key personnel and the potential impact of labor costs and workforce challenges; heavy reliance on technology systems and potential cybersecurity threats; global economic and political conditions affecting our operations, supply chain, and customer demand; the risk that our estimates of capacity potential and heat initially in place are inaccurate or that we are unable to produce quantities of electrical energy commensurate with such estimates; and other risks and uncertainties, including those set forth under the section entitled “Risk Factors” in this Report.
Previous wording
We completed our initial public offering (“IPO”) on May 14, 2026. We are advancing from demonstration to utility-scale commercialization and expect to begin delivering first power at Cape Station in Milford, Utah, which will support multi‑gigawatt power developments (“GeoCluster”). We expect our first standardized Organic Rankine Cycle (“ORC”) power plants (“GeoBlocks”) to be operational at the end of 2026 and to reach approximately 100 megawatts (“MWs”) of operating capacity by early 2027 and 500 megawatts of cumulative operating capacity by the end of 2028. As of June 30, 2026, we had signed 658 megawatts of binding power purchase agreements and other arrangements for the sale of power and related attributes (“PPAs”) with credit-worthy utility and corporate buyers, representing approximately $7.2 billion in potential revenue backlog. We have also entered into a 3-gigawatt GFA, creating a repeatable commercial model that we believe can accelerate deployment.
Current wording
We completed our initial public offering (“IPO”) on May 14, 2026 and are advancing from demonstration to utility-scale commercialization. This began with delivering first power at our Cape Station (“Cape Station”) Phase I geothermal facility in Milford, Utah on September 24, 2026, supporting our first multi‑gigawatt power development (“GeoCluster”). We expect our first 100 megawatts (“MWs”) of standardized Organic Rankine Cycle (“ORC”) power plants (“GeoBlocks”) to be operational by early 2027 and to reach approximately 500 megawatts of cumulative operating capacity by the end of 2028. As of September 30, 2026, we had signed 1,054 megawatts of binding power purchase agreements and other arrangements for the sale of power and related attributes (“PPAs”) with credit-worthy utility and corporate buyers, representing approximately $11.9 billion in potential revenue backlog. We had also entered into a 3-gigawatt Geothermal Framework Agreement with Google Energy LLC (“GFA”), creating a repeatable commercial model that we believe can accelerate deployment.
Previous wording
Construction Progress at Cape Station. We are advancing our Cape Station project in Milford, Utah, where we have 500 megawatts of capacity under construction. We expect to deliver first power from Cape Station by late 2026 and to reach approximately 100 megawatts of operating capacity by early 2027. As of the date of this filing, 79 out of 80 governmental permits and approvals necessary to commence commercial operations at Cape Station Phase I have been received, with the remaining permit in process. Moreover, 82 out of 179 governmental permits and approvals necessary to commence commercial operations at Cape Station Phase II have been received, and the remaining 97 are in process.
Current wording
Construction Progress at Cape Station. We are advancing our Cape Station project in Milford, Utah, where we have 466 megawatts of capacity under construction. We began delivering first power from Cape Station on September 24, 2026 and expect to reach approximately 100 megawatts of operating capacity by early 2027. On November 4, 2026, GeoBlock 2 achieved grid synchronization and began exporting test energy to the grid, and GeoBlock 3 is in cold commissioning. GeoBlocks 2 and 3 have not yet achieved commercial operation. As of the date of this filing, all 80 governmental permits and approvals necessary to commence commercial operations at Cape Station Phase I have been received. Moreover, 96 out of 179 governmental permits and approvals necessary to commence commercial operations at Cape Station Phase II have been received, and the remaining 83 are in process.
Previous wording
(2) Geothermal Development Portfolio data as of August 12, 2026. Refer to the following definitions of the Geothermal Development Portfolio.
Current wording
(2) Refer to the following definitions of the Geothermal Development Portfolio.
Previous wording
•Operating: 3 megawatts are currently online and generating power from our pilot project, Project Red.
Current wording
•Operating: 36 megawatts are currently online and generating power, including 3 megawatts relating to our pilot project, Project Red.
Previous wording
•Under Construction: 500 megawatts are currently in construction at Cape Station, with commercial contracts in place and physical work underway.
Current wording
•Under Construction: 466 megawatts are currently in construction at Cape Station, with commercial contracts in place and physical work underway.
Previous wording
•Ready to Build: 550 megawatts across two different GeoClusters were shovel-ready with initial permits secured to begin construction. These megawatts are backed by calibrated subsurface models, validated against well data and geophysical surveys, and have a clear wellfield development strategy in place. Commercially, we have secured or are in advanced negotiation for offtake and have either obtained interconnection or established a clear, achievable path.
Current wording
•Ready to Build: 550 megawatts across two different GeoClusters are shovel-ready with initial permits secured to begin construction. These megawatts are backed by calibrated subsurface models, validated against well data and geophysical surveys, and have a clear wellfield development strategy in place. Commercially, we have secured or are in advanced negotiations for offtake and have either obtained interconnection or established a clear, achievable path.
Previous wording
•Advanced Development: 3.0 gigawatts were in advanced development. These projects have a go-to-market strategy established, with key development milestones progressing and active origination efforts underway. Typical activities include preliminary permit filings, on-site geological studies work, and submission of interconnection applications.
Current wording
•Advanced Development: 3,000 megawatts were in advanced development. These projects have a go-to-market strategy established, with key development milestones progressing and active origination efforts underway. Typical activities include preliminary permit filings, on-site geological studies work, and submission of interconnection applications.
Previous wording
•Early Development: Over 48 gigawatts were in early-stage development across ten GeoClusters where we have commissioned and received independent HIIP studies and are conducting feasibility activities to validate and confirm the path toward commercial development.
Current wording
•Early Development: Over 50 gigawatts were in early-stage development across more than ten GeoClusters where we have commissioned and received independent Heat initially in place (“HIIP”) studies and are conducting feasibility activities to validate and confirm the path toward commercial development.
Previous wording
•Land Holdings: Our remaining portfolio consists of approximately 245,000 acres of leased acreage as of August 12, 2026, with differentiated geothermal resource quality currently maintained in our portfolio. For this category, we have secured leases and identified project areas but have not commenced initial development work.
Current wording
•Land Holdings: Our remaining portfolio consists of approximately 260,000 acres of leased acreage as of September 30, 2026, with differentiated geothermal resource quality currently maintained in our portfolio. For this category, we have secured leases and identified project areas but have not commenced initial development work.
Previous wording
Our results of operations, on a consolidated basis, for the fiscal three and six months ended June 30, 2026 and 2025 are set forth and compared below.
Current wording
Our results of operations, on a consolidated basis, for the three and nine months ended September 30, 2026 and 2025 are set forth and compared below.
Previous wording
Revenues increased by $0.1 million during the three months ended June 30, 2026 compared to the three months ended June 30, 2025. Revenues relate to ancillary fees associated with rights to geothermal production and are not expected to be a significant component of our long-term revenue, as we have not yet commenced large-scale commercial operations. The change was not material to overall results.
Current wording
Revenues increased by less than $0.1 million during the three months ended September 30, 2026 compared to the three months ended September 30, 2025. Revenues for the period related to ancillary fees associated with rights to geothermal production, which are not expected to be a significant component of our long-term revenue. The change was not material to overall results.
Previous wording
Research and development (“R&D”) (income) expense, net improved by approximately $1.2 million during the six months ended June 30, 2026 compared to the six months ended June 30, 2025, shifting the net R&D expense of $0.4 million in the prior-year period to net R&D income of $0.9 million in the current period. R&D income, net reflects the excess of grant proceeds over qualifying R&D expenditures and is impacted by both the level of the underlying research activity and the timing of grant receivables. The improvement was primarily driven by higher grant proceeds relative to qualifying R&D expenditures in the current period.
Current wording
Research and development (“R&D”) expense (income), net increased by approximately $0.1 million during the three months ended September 30, 2026 compared to the three months ended September 30, 2025, from net R&D income of $0.1 million in the prior-year period to net R&D expense of $0.1 million in the current period. R&D expense (income), net reflects qualifying R&D expenditures, offset by grant proceeds, and is impacted by both the level of the underlying research activity and the timing of grant reimbursements. The increase in net R&D expense was primarily driven by lower grant proceeds relative to qualifying R&D expenditures during the current-year period.
Previous wording
General and administrative expense increased by $17.9 million during the three months ended June 30, 2026 compared to the three months ended June 30, 2025, primarily driven by higher employee-related costs and additional administrative and operational support functions required to support our growth.
Current wording
General and administrative expense increased by $31.2 million during the three months ended September 30, 2026 compared to the three months ended September 30, 2025, primarily driven by higher employee-related costs and additional administrative and operational support functions required to support our growth.
Previous wording
Employee‑related expenses increased by $8.2 million during the three months ended June 30, 2026 compared to the three months ended June 30, 2025, primarily due to workforce growth as we expanded our technical, operational, and administrative functions to support project development, execution, and corporate operations. Headcount increased by 103 employees from 158 employees as of June 30, 2025 to 261 employees as of June 30, 2026.
Current wording
Employee‑related expenses increased by $16.2 million during the three months ended September 30, 2026 compared to the three months ended September 30, 2025. The increase primarily consisted of a $9.2 million increase in stock-based compensation, including expense related to our employee stock purchase plan and net of amounts capitalized. The remaining increase was primarily attributable to higher compensation and benefit costs due to workforce growth. Headcount increased by 127 employees from 179 employees as of September 30, 2025 to 306 employees as of September 30, 2026.
Previous wording
Additional increases in general and administrative expense consisted of $4.8 million attributable to professional services and third-party support fees, $1.4 million attributable to insurance and surety bond expenses associated with our expanding asset base and operational footprint and $0.7 million due to higher software, information technology, and data‑related costs, including licensing fees and cloud‑based services. The remaining changes were not individually significant period-over-period.
Current wording
Additional increases in general and administrative expense included $8.9 million attributable to professional services and third-party support fees, $2.0 million attributable to insurance and surety bond expenses associated with our expanding asset base and operational footprint, and $1.6 million due to higher software, information technology, and data‑related costs, including licensing fees and cloud‑based services. The remaining changes were not individually significant period-over-period.
Previous wording
Depreciation and amortization increased by $0.3 million during the three months ended June 30, 2026 compared to the three months ended June 30, 2025, primarily due to additional non-geothermal assets placed in service.
Current wording
Depreciation and amortization increased by $0.2 million during the three months ended September 30, 2026 compared to the three months ended September 30, 2025, primarily due to additional non-geothermal assets placed in service.
Previous wording
Interest income increased by $9.9 million during the three months ended June 30, 2026 compared to the three months ended June 30, 2025, primarily due to higher average cash balances following our successful IPO in May 2026.
Current wording
Interest income increased by $15.0 million during the three months ended September 30, 2026 compared to the three months ended September 30, 2025, primarily due to higher average cash balances following our successful IPO in May 2026.
Previous wording
Comparison of the Six Months Ended June 30, 2026 to the Six Months Ended June 30, 2025
Current wording
Comparison of the Nine Months Ended September 30, 2026 to the Nine Months Ended September 30, 2025
Previous wording
The following table sets forth our results of operations for the six months ended June 30, 2026 and June 30, 2025 including dollar and percentage change period-over-period:
Current wording
The following table sets forth our results of operations for the nine months ended September 30, 2026 and nine months ended September 30, 2025 including dollar and percentage change period-over-period:
Previous wording
Revenues increased by $0.2 million during the six months ended June 30, 2026 compared to the six months ended June 30, 2025. Revenues relate to ancillary fees associated with rights to geothermal production and are not expected to be a significant component of our long-term revenue, as we have not yet commenced large-scale commercial operations. The change was not material to overall results.
Current wording
Revenues increased by $0.2 million during the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025. Revenues for the period related to ancillary fees associated with rights to geothermal production, which are not expected to be a significant component of our long-term revenue. The change was not material to overall results.
Previous wording
Research and development (“R&D”) (income) expense, net improved by approximately $1.1 million during the three months ended June 30, 2026 compared to the three months ended June 30, 2025, shifting the net R&D expense of $0.4 million in the prior-year period to net R&D income of $0.7 million in the current period. R&D income, net reflects the excess of grant proceeds over qualifying R&D expenditures and is impacted by both the level of the underlying research activity and the timing of grant receivables. The improvement was primarily driven by higher grant proceeds relative to qualifying R&D expenditures in the current period.
Current wording
Research and development (“R&D”) expense (income), net decreased by approximately $1.0 million during the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025, from net R&D expense of $0.3 million in the prior-year period to net R&D income of $0.7 million in the current period. R&D expense (income), net reflects qualifying R&D expenditures, offset by grant proceeds, and is impacted by both the level of the underlying research activity and the timing of grant reimbursements. The decrease in net R&D expense was primarily driven by higher grant proceeds relative to qualifying R&D expenditures in the current period.
Previous wording
General and administrative expense increased by $27.3 million during the six months ended June 30, 2026 compared to the six months ended June 30, 2025, primarily driven by higher employee-related costs and additional administrative and operational support functions required to support our growth.
Current wording
General and administrative expense increased by $58.5 million during the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025, primarily driven by higher employee-related costs and additional administrative and operational support functions required to support our growth.
Previous wording
Additional increases in general and administrative expense consisted of $6.4 million in legal and professional services, primarily related to external advisory, compliance and public company readiness activities associated with scaling the business, $2.0 million attributable to higher software, information technology, and data‑related costs, including licensing fees and cloud‑based services, and $2.1 million for insurance and surety bond expenses associated with our expanding asset base and operational footprint. The remaining changes were not individually significant period-over-period.
Current wording
Additional increases in general and administrative expense included $15.3 million in legal and professional services, primarily related to external advisory, compliance and public company readiness activities associated with scaling the business, $3.6 million attributable to higher software, information technology, and data‑related costs, including licensing fees and cloud‑based services, and $4.1 million for insurance and surety bond expenses associated with our expanding asset base and operational footprint. The remaining changes were not individually significant period-over-period.
Previous wording
Depreciation and amortization increased $0.3 million during the six months ended June 30, 2026 compared to the six months ended June 30, 2025, primarily due to additional non-geothermal assets placed in service.
Current wording
Depreciation and amortization increased by $0.6 million during the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025, primarily due to additional non-geothermal assets placed in service.
Previous wording
Interest income increased by $10.7 million during the six months ended June 30, 2026 compared to the six months ended June 30, 2025, primarily due to higher average cash balances following our successful IPO in May 2026.
Current wording
Interest income increased by $25.7 million during the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025, primarily due to higher average cash balances following our successful IPO in May 2026.
Previous wording
Other non-operating expense, net increased by $47.3 million during the six months ended June 30, 2026 compared to the six months ended June 30, 2025. This increase was primarily driven by a $40.0 million non-cash loss related to the fair value remeasurement of warrants and a $9.0 million loss on extinguishment of debt related to the XRC Facility. These increases were partially offset by a $1.6 million gain from the remeasurement of a bifurcated embedded derivative associated with Cape PI Intermediate HoldCo’s arrangement with Centaurus. The remaining changes were not individually significant period-over-period.
Current wording
Other non-operating income (expense), net decreased by $46.8 million during the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025. This decrease was primarily driven by a $40.0 million non-cash loss related to the fair value remeasurement of warrants and a $9.0 million loss on extinguishment of debt related to the XRC Facility. These losses were partially offset by a $1.7 million gain from the remeasurement of a bifurcated embedded derivative associated with our project-level subsidiary Cape Phase I Intermediate HoldCo, LLC’s (“Cape PI Intermediate HoldCo”) arrangement with Centaurus Capital LP (“Centaurus”). The remaining changes were not individually significant period-over-period.
Previous wording
As of June 30, 2026, our liquidity position consisted of $2.1 billion of unrestricted cash and cash equivalents and $11.0 million of restricted cash. Our cash and cash equivalents are primarily maintained in highly liquid money market funds and deposit accounts with large financial institutions. In addition, we had access to the following undrawn borrowing capacity: $70.0 million under our Mercuria Credit Facility, $36.4 million under our Mercuria Letter of Credit Facility, and $157.8 million under our Project Granite Facility. We also entered into a letter of credit facility (the “Project Granite Letter of Credit Facility”) and had $33.4 million of undrawn borrowing capacity available thereunder.
Current wording
As of September 30, 2026, our liquidity position consisted of $1.9 billion of unrestricted cash and cash equivalents and $11.0 million of restricted cash. Our cash and cash equivalents are primarily maintained in highly liquid money market funds and deposit accounts with large financial institutions. In addition, we had access to the following undrawn borrowing capacity: $70.0 million under our credit agreement with Mercuria Energy Trading SA (“Mercuria”) (the “Mercuria Credit Facility”), $35.8 million under the letter of credit facility with Mercuria (the “Mercuria Letter of Credit Facility”), and $82.7 million under our Project Granite Facility. We also entered into a letter of credit facility (the “Project Granite Letter of Credit Facility”) and had $33.4 million of undrawn borrowing capacity available thereunder.
Previous wording
See further discussion of our available liquidity as described in “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Indebtedness” section below, along with Note 3 – Debt and Off-Balance Sheet Arrangements and Note 20 – Subsequent Events in the notes to condensed consolidated financial statements.
Current wording
See the “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Indebtedness” section below and Note 3 – Debt and Off-Balance Sheet Arrangements in the notes to condensed consolidated financial statements, for further discussion of our available liquidity.
Previous wording
Our Cape Station Phase I project is financed through agreements with Granite Energy InvestCo, LLC (“Catalyst”) and Centaurus. The financing arrangements are held through Cape PI HoldCo, LLC and Cape PI Intermediate HoldCo, LLC, which are consolidated by the Company and accounted for as variable interest entities ("VIEs"). These arrangements involve project-level preferred equity with priority distribution waterfalls that must be satisfied before any cash is available to the Company. Distributions under both financings are contingent upon the project achieving commercial operations and generating distributable cash flow; accordingly, we do not expect preferred distributions to be required during the 12-month period following June 30, 2026.
Current wording
Our Cape Station Phase I project is financed through agreements with Granite Energy InvestCo, LLC (“Catalyst”) and Centaurus. The financing arrangements are held through Cape Phase I HoldCo, LLC and Cape PI Intermediate HoldCo, which are consolidated by the Company and accounted for as variable interest entities (“VIEs”). These arrangements involve project-level preferred equity with priority distribution waterfalls that must be satisfied before any cash is available to the Company. Distributions under both financings are contingent upon the project achieving commercial operations and generating distributable cash flow. We do not expect preferred distributions to be required during the remainder of 2026; however, preferred distributions are expected to commence following the occurrence of thecommercial operation date (“COD”) under the applicable PPA, subject to the availability of distributable cash flow.
Previous wording
Over the long term, these agreements require cumulative distributions totaling approximately$139.0 million to Catalyst (through 2041) and approximately $122.0 million to Centaurus, the latter of which is subject to return hurdles and includes a future royalty interest. Following completion of this second priority distribution period, Centaurus will retain a royalty interest in the project equal to $5.0 per megawatt-hour. Various contractual provisions—including change of control rights, reserve requirements, and covenant-based limitations—could accelerate or further restrict cash distributions to the holding company level.
Current wording
Over the long term, these agreements require cumulative distributions totaling approximately$139.0 million to Catalyst (through 2041) and approximately $122.0 million to Centaurus. The Centaurus agreement is subject to return hurdles and includes a future royalty interest. Following completion of this second priority distribution period, Centaurus will retain a royalty interest in the project equal to $5.00 per megawatt-hour. Various contractual provisions—including change of control rights, reserve requirements, and covenant-based limitations—could accelerate or further restrict cash distributions to the holding company level.
Previous wording
Our capital requirements for 2026 and beyond are expected to remain substantial as we advance multiple GeoBlocks toward commercial operation, including Cape Station. While we have not yet achieved significant revenue generation, we anticipate our funding needs will include continued capital expenditures for projects under construction, such as Cape Station, exploration and development costs for new geothermal sites across our approximately 630,000-acre portfolio, personnel costs and general and administrative expense as we scale our organization and technical capabilities, and working capital to support expanded operations.
Current wording
Our capital requirements for 2026 and beyond are expected to remain substantial as we advance multiple GeoBlocks toward commercial operation, including Cape Station. As we begin generating revenue from our operations, we anticipate our funding needs will include continued capital expenditures for GeoBlocks under construction, such as the next phase at Cape Station, exploration and development costs for new geothermal sites across our approximately 670,000-acre portfolio, personnel costs and general and administrative expense as we scale our organization and technical capabilities, and working capital to support expanded operations.
Previous wording
Beginning with this Report, we have transitioned our capital expenditure disclosure from a rolling 12-month basis to a calendar-year basis, which we believe better aligns with how we plan and budget our capital program and improves comparability across reporting periods. As of June 30, 2026, we project total capital expenditures for the remainder of 2026 of approximately$850.0 million to $900.0 million, driven primarily by drilling, well completion, and continued construction activities at our Cape Station Phase I and Phase II facilities, as well as early and advanced development activities across our portfolio, including permitting, engineering, site development, long-lead equipment procurement, and resource characterization. Capital expenditures incurred during thesix months ended June 30, 2026 were$399.3 million (see Condensed Consolidated Statements of Cash Flows in the condensed consolidated financial statements). Accordingly, total capital expenditures for the year ending December 31, 2026 are currently projected to be approximately$1.3 billion. This full-year estimate is consistent with our previously disclosed expectation of approxim ately $2.2 billionof cumulative capital expenditures for Cape Station Phase II through 2028 and does not reflect a change in our underlying development plan.
Current wording
As of September 30, 2026, we project total capital expenditures for the remainder of 2026 of approximately $450.0 million to $500.0 million, driven primarily by drilling, well completion, and continued construction activities at our Cape Station Phase I and Phase II facilities, as well as early and advanced development activities across our portfolio, including permitting, engineering, site development, long-lead equipment procurement, and resource characterization. Capital expenditures incurred during the nine months ended September 30, 2026 were $656.0 million (see the Condensed Consolidated Statements of Cash Flows in the condensed consolidated financial statements). Accordingly, total capital expenditures for the second half of 2026 are currently projected to be approximately $700.0 million to $750.0 million. This estimate is approximately $100.0 million to $200.0 million lower than our previously disclosed expectation of $850.0 million to $900.0 million for the second half of the year. This update is primarily driven by efficiencies in GeoBlock construction and commissioning that have shortened the construction cycle and allowed certain spending on Cape Station Phase II to occur later, while the CODs and expected approximately $2.2 billion in cumulative capital expenditures remain unchanged.
Previous wording
Based on current conditions, we believe our capital resources are sufficient to meet our financial obligations and fund our planned development activities. As a company with significant development activities transitioning toward commercial operations, we continue to rely on external financing to fund our operations and growth initiatives.
Current wording
Based on current conditions, we believe our capital resources are sufficient to meet our financial obligations and fund our planned development activities. As a company with significant development activities and expanding commercial operations, we continue to rely on external financing to fund our operations and growth initiatives.
Previous wording
As of June 30, 2026, Fervo HoldCo LLC had drawn $30.0 million under the Mercuria Credit Facility and $43.6 million under the Mercuria Letter of Credit Facility. The Mercuria Credit Facility matures on November 20, 2027, while the Mercuria Letter of Credit Facility matures on the earlier of November 20, 2027 or upon acceleration of its obligations due to an event of default.
Current wording
As of September 30, 2026, Fervo HoldCo LLC had drawn $30.0 million under the Mercuria Credit Facility and $44.2 million under the Mercuria Letter of Credit Facility. The Mercuria Credit Facility matures on November 20, 2027, while the Mercuria Letter of Credit Facility matures on the earlier of November 20, 2027 or upon acceleration of its obligations due to an event of default.
Previous wording
As of June 30, 2026, the Borrowers had $212.3 million outstanding under the construction loan and tax credit transfer bridge loan facility and $17.9 million outstanding under the Project Granite Letter of Credit Facility. The proceeds financed third-party debt issuance costs, agency fees and upfront lender fees incurred upon execution of the Granite Credit Agreement. As of June 30, 2026, we had access to undrawn borrowing capacity of $157.8 million, consisting of the construction loan facility and a tax credit transfer bridge loan facility and $33.4 million under our Project Granite Letter of Credit Facility.
Current wording
As of September 30, 2026, the Borrowers had $287.5 million outstanding under the construction loan and tax credit transfer bridge loan facility and $17.9 million outstanding under the Project Granite Letter of Credit Facility. Borrowings under the Project Granite Facility were used to repay the outstanding borrowings under the XRC Facility and to fund transaction costs and project-related costs, including construction expenditures and required reserves. As of September 30, 2026, we had access to undrawn borrowing capacity of $82.7 million, consisting of the construction loan facility and a tax credit transfer bridge loan facility and $33.4 million under our Project Granite Letter of Credit Facility.
Previous wording
We have significant NOLs that may provide future offset to taxable income during the applicable carryover periods. As of June 30, 2026, we had approximately $124.0 million of net operating loss carryforwards for federal tax purposes, all of which are indefinitely lived. We continue to assess whether the deferred tax assets are likely to be realized based on future taxable income and the reversal of deferred tax liabilities. Because we have limited historical earnings, we believe it is still more likely than not that these assets will not be utilized, so a valuation allowance remains on the net deferred tax asset balance.
Current wording
We have significant NOLs that may provide future offset to taxable income during the applicable carryover periods. As of September 30, 2026, we had approximately $107.5 million of net operating loss carryforwards for federal tax purposes, all of which are indefinitely lived. We continue to assess whether the NOLs are likely to be realized based on future taxable income and the reversal of deferred tax liabilities. Because we have limited historical earnings, we believe it is still more likely than not that these assets will not be utilized and a valuation allowance remains.
Previous wording
Net cash used in operating activities increased by $50.0 million for the six months ended June 30, 2026 compared to the six months ended June 30, 2025, primarily driven by a higher net loss, partially reduced by higher non-cash items during the period.
Current wording
Net cash used in operating activities increased by $43.0 million for the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025, primarily driven by a higher net loss, partially reduced by higher non-cash items during the period.
Previous wording
Net loss, excluding non-cash activities, was $26.0 million for the six months ended June 30, 2026 compared to $17.0 million in the prior year period, which contributed to a $9.0 million increase in cash used in operating activities. Such increase reflects higher underlying cash operating expenses, including employee-related costs and other operating expenditures, as described in the “Management’s Discussion and Analysis of Financial Condition and Results of Operations - Results of Operations” section above.
Current wording
Net loss, excluding non-cash items, was $40.7 million for the nine months ended September 30, 2026 compared to $30.9 million in the prior year period, which contributed to a $9.8 million increase in cash used in operating activities. Such increase reflects higher underlying cash operating expenses, including employee-related costs and other operating expenditures, as described in the “Management’s Discussion and Analysis of Financial Condition and Results of Operations - Results of Operations” section above, partially offset by higher non-cash adjustments in the current-year period, including stock-based compensation, warrant valuation expense, loss on extinguishment of long-term debt and deferred income taxes.
Previous wording
Changes in operating assets and liabilities used $17.8 million of cash in the current period compared to $23.3 million cash provided in the prior year period, representing a $41.1 million decrease. This decrease was primarily driven by lower inflows from deposits of $15.3 million, reflecting fewer releases and increased funding of performance bond deposits, as well as higher cash outflows from prepaid expenses and other of $24.7 million and net changes in grant receivables and other assets and liabilities of $9.6 million, primarily due to timing of vendor payments and operating cost disbursements. This was partially offset by favorable change in accounts payable of $8.5 million, reflecting the timing of payments of operating and administrative expenses between periods.
Current wording
Changes in operating assets and liabilities used $14.8 million of cash in the current period compared to $18.5 million cash provided in the prior-year period, representing a $33.3 million decrease. This decrease was primarily driven by lower cash inflows from deposits of $13.2 million, higher cash outflows from prepaid expenses and other of $11.7 million, and net changes in grant receivables and other assets and liabilities of $12.0 million, primarily due to timing of vendor payments and operating cost disbursements. These changes were partially offset by a $3.6 million favorable change in accounts payable, reflecting the timing of payments of operating and administrative expenses between periods.
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Previous report — wording carried elsewhere
Other non-operating expense, net increased by $35.5 million during the three months ended June 30, 2026 compared to the three months ended June 30, 2025. This increase was driven by a $26.9 million non-cash loss related to the fair value remeasurement of warrants and a $9.0 million loss on extinguishment of debt related to the XRC Facility. These increases were partially offset by a $0.4 million gain from the remeasurement of a bifurcated embedded derivative associated with our project-level subsidiary Cape Phase I Intermediate HoldCo, LLC (“Cape PI Intermediate HoldCo”) with Centaurus Capital LP (“Centaurus”).