Oklo Inc. (OKLO Quick QuoteOKLO - Free Report) is developing small nuclear power plants to supply electricity to businesses, including data centers that support artificial intelligence (AI). The company recently reported third-quarter 2026 results, giving investors a clearer picture of its construction progress, financial position and upcoming projects. Although OKLO is moving ahead with its first Aurora nuclear power plant, it remains some distance from generating meaningful electricity revenues. Its sharp share-price decline has raised questions about whether investors should buy the stock at the current levels or remain cautious.

OKLO Reports Narrower-Than-Expected Q3 Loss

OKLO reported a third-quarter loss of 28 cents per share, narrower than the Zacks Consensus Estimate of a loss of 29 cents. Revenues totaled approximately $1.9 million, matching expectations. However, operating expenses reached $84.3 million, indicating that the company continues to spend heavily on developing its business.

OKLO ended September with approximately $3.1 billion in cash, cash equivalents and marketable securities. Management maintained its 2026 guidance for operating cash usage of $120 million to $150 million and spending on property, plant and equipment of $400 million to $500 million.

Image Source: Oklo Inc.

This cash position gives OKLO the financial flexibility to advance several projects simultaneously. However, construction and equipment costs will remain substantial as the company works toward commercial power generation. Investors also need to consider the possibility of additional funding requirements as its planned reactor network expands.

OKLO's Price Performance and Earnings Estimates Raise Concerns

OKLO shares have declined 46.7% over the past three months and touched a 52-week low of $18.53 last week. Over the same period, NuScale Power (SMR Quick QuoteSMR - Free Report) shares have dropped 47.3%, while Talen Energy (TLN Quick QuoteTLN - Free Report) has edged up 0.9%.

3-Month Price Performance

Image Source: Zacks Investment Research

The difference is worth considering. Both OKLO and NuScale Power are developing nuclear technologies that require significant investments before their planned projects generate meaningful revenues. Talen Energy, meanwhile, already operates electricity-generating assets and earns money from selling power.

OKLO's earnings estimates also offer little near-term encouragement. The Zacks Consensus Estimate projects a loss of 99 cents per share for 2026, wider than the loss of 72 cents recorded in 2025. The expected loss increases another 23.8% to $1.12 per share for 2027. These projections suggest that OKLO will continue facing financial pressure while developing its nuclear projects.

Image Source: Zacks Investment Research

Aurora Construction and Manufacturing Deals Offer Support

OKLO is making progress on its first Aurora powerhouse in Idaho. Reactor-area excavation is complete, structural steel installation has begun, and the Department of Energy has approved the project's preliminary safety analysis. Management is targeting commissioning in 2028 or 2029, subject to further regulatory approvals and construction progress.

The company is also developing its nuclear fuel manufacturing capabilities, with its first completed fuel assembly targeted for 2027. Separately, OKLO has signed an agreement with U.S. Forged Rings to reserve manufacturing capacity equivalent to 27 Aurora modules. Initial deliveries are expected in 2030, with the arrangement covering planned manufacturing needs through 2035.

These steps may help OKLO secure equipment and fuel for future reactors. NuScale Power is taking a similar approach, having reached an agreement with Doosan Enerbility to manufacture components for its initial reactor module.

However, manufacturing arrangements alone do not guarantee commercial success. Both OKLO and NuScale Power still need to turn their development plans into operating projects supported by firm customer commitments.

Commercial Uncertainty and Spending Remain Major Risks

OKLO is working on a proposed Ohio energy campus with capacity of up to 1.2 gigawatts under an agreement with Meta. However, management clarified that the arrangement does not currently require Meta to proceed with reactor construction, although certain development funding provisions are binding.

Securing binding commercial agreements with customers is important for Oklo’s planned expansion. However, construction delays, regulatory requirements and difficulties obtaining nuclear fuel may affect project timelines and increase costs.

Competition adds another challenge. NuScale Power has secured regulatory design approvals and is pursuing commercial opportunities through its partners. Talen Energy, meanwhile, already generates electricity and reported substantial adjusted free cash flow during the first nine months of 2026. Unlike OKLO, Talen Energy has established generating assets supporting its existing business.

How Should You Play the Stock Now?

OKLO has made progress in construction, fuel development and securing manufacturing capacity. Its substantial cash reserves also provide room to continue investing in planned projects. However, widening expected losses, heavy spending and uncertainty surrounding commercial agreements remain concerns. Given these factors, investors may prefer to hold existing positions rather than rush to buy following the recent share-price decline. New investors may consider waiting for clearer evidence of commercial progress. OKLO currently carries a Zacks Rank #3 (Hold), supporting a cautious approach to the stock.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.