First Quarter 2026 Total Revenues Increased Year-over-year to $766 million
Increased Full-year 2026 Total Revenues Guidance to between $3.825 billion and $3.925 billion, Representing Accelerated Growth Rate of 20% Y/Y at the Midpoint, and Reflecting the Addition of GALAFOLD® and POMBILITI® + OPFOLDA® to BioMarin's Portfolio
Conference Call and Webcast Scheduled Today at 4:30 p.m. ET
, /PRNewswire/ -- BioMarin Pharmaceutical Inc. (NASDAQ: BMRN) today announced financial results for the first quarter ended March 31, 2026.
"With the acquisition of Amicus Therapeutics complete, the addition of GALAFOLD and POMBILITI + OPFOLDA to our commercial portfolio allows us to reach patients with Fabry and Pompe diseases and meaningfully strengthens and accelerates our near-to-mid-term growth rates," said Alexander Hardy, President and Chief Executive Officer of BioMarin. "We expect these high-growth assets to support our strongest financial performance yet in 2026. Next quarter, we look forward to updating you on the longer‑term outlook of the Amicus integration based on our plans to leverage our global scale to expand the potential of these transformative therapies. With a faster-growing commercial portfolio, together with two near-term Phase 3 data readouts and ongoing pipeline progress expected over the coming quarters, we are well-positioned to drive innovation, create shareholder value, and improve outcomes for patients worldwide."
2026 Business and Pipeline Highlights
Innovation
In February, U.S. FDA approved PALYNZIQ® for adolescents 12 years of age and older with phenylketonuria (PKU); EU approval for adolescents 12 years of age and older is expected in 2026. In March, the company presented initial Phase 1/2 data for BMN 351 at the Muscular Dystrophy Association (MDA) Clinical & Scientific Congress demonstrating dose-dependent increases in dystrophin expression at Week 25 biopsy in both the 6 and 9 mg/kg dose cohorts. Clinical biomarkers, including decreases in creatine kinase, suggested improvements in overall muscle health beyond the Week 25 time point, and longer-term outcomes from both NSAA and 6MWT suggested a prevention of functional decline when compared to historical matched controls. The 12 mg/kg dose cohort continues to enroll, with a data update expected by year-end. In April, the first patient was enrolled in the registration-enabling Phase 2/3 study of BMN 333, BioMarin's long-acting C-type natriuretic peptide (CNP) for achondroplasia. A data update from this study is expected in 2027. In April, the company submitted its U.S. supplemental new drug application (sNDA) for full approval of VOXZOGO® for achondroplasia. The company expects to be notified of sNDA acceptance by Q3 2026. In May, at the Pediatric Endocrine Society's (PES) annual meeting, BioMarin reported new data demonstrating the benefits of long-term treatment with VOXZOGO, including improvements in arm span, bone health, and quality of life. Data from ongoing long-term extension clinical trials showed that children who initiated VOXZOGO treatment after age 5 achieved mean height gains of +10.60cm after six years and +13.59cm (p<0.0001 for both) after eight years of treatment, as compared to natural history data. In the second quarter, BioMarin expects to share BMN 401 Phase 3 topline data in children ages 1-to-12 year-old with ENPP1 deficiency. Regulatory submissions are anticipated in 2H'26 should the data be supportive, with a potential first-in-disease launch in 2027. In the second quarter, the company expects to share Phase 3 topline data for VOXZOGO for hypochondroplasia. Regulatory submissions are anticipated in 2H'26 should the data be supportive, with a potential first-in-class launch in 2027. Enrollment is progressing in the Phase 2 study of VOXZOGO in children under 3 years old with hypochondroplasia. Growth
Increased full-year 2026 Total Revenues guidance, accelerating anticipated growth rate to 20% Y/Y, as a result of the addition of GALAFOLD for Fabry disease and POMBILITI + OPFOLDA to BioMarin's commercial portfolio. Enzyme Therapies revenue grew 6% Y/Y in the first quarter, driven by revenue growth for VIMIZIM®, NAGLAZYME®, and BRINEURA®. Continued underlying patient demand in Q1 for PALYNZIQ was driven by an increase in enrollments and new starts in the under-18-year age group following label expansion in February. PALYNZIQ revenue is expected to increase over time with continued patient demand and as new adult and adolescent patients titrate up to maintenance dosing. As a result, full-year 2026 PALYNZIQ revenue is expected to increase year-over-year. The number of children being treated with VOXZOGO increased by more than 20% Y/Y in the first quarter. As expected, large VOXZOGO orders in fourth quarter of 2025 resulted in modest Y/Y growth of 3% in the first quarter of 2026. Value Commitment
During the first quarter, the company secured financing of approximately $3.7 billion of non-convertible debt to support the Amicus acquisition, achieving favorable pricing across the capital structure. BioMarin generated operating cash flows totaling $221 million in first quarter 2026. Total cash was approximately $2 billion as of the end of the quarter, and continued increasing operating cash flow is expected to support sustained investment in innovation and future growth. First Quarter 2026 Financial Highlights
Total Revenues for the first quarter of 2026 were $766 million, an increase of $21 million compared to the same period in 2025, primarily driven by timing of large government orders outside the U.S. and increase in patient demand for Enzyme Therapies (ALDURAZYME®, BRINEURA, NAGLAZYME, PALYNZIQ and VIMIZIM) as well as new patients initiating VOXZOGO therapy across all regions. The increase was partially offset by lower ROCTAVIAN® revenue attributed to voluntary withdrawal of the product from the market announced in the first quarter of 2026. GAAP Net Income for the first quarter of 2026 decreased to $106 million compared to $186 million for the same period in 2025. The decrease in GAAP Net Income was primarily attributed to the following: higher Selling, General & Administrative (SG&A) spend primarily due to incremental administrative costs related to ongoing support of corporate initiatives and pre-close costs for Amicus acquisition, and higher sales and marketing spend on VOXZOGO, PALYNZIQ and VIMIZIM; higher Cost of Sales primarily due to a $31 million charge associated with an unsuccessful process qualification campaign to expand NAGLAZYME manufacturing capabilities; higher Research and Development spend to support BMN 401, a late-stage clinical program acquired in the third quarter of 2025; partially offset by revenue growth as mentioned above. Non-GAAP Income for the first quarter of 2026 decreased to $149 million compared to $221 million for the same period in 2025. The decrease in Non-GAAP Income was primarily due to the factors noted above. GAAP Diluted Earnings per Share (EPS) and Non‑GAAP Diluted EPS for the first quarter of 2026 decreased compared to the same period in 2025, primarily reflecting the discrete items and higher operating expenses described above. The $31 million charge in Cost of Sales related to the NAGLAZYME campaign reduced EPS by approximately $0.12 year‑over‑year. In addition, pre‑close integration preparation costs recorded in SG&A and interest expense associated with the Amicus transaction reduced EPS by approximately $0.07. Financial Highlights (in millions of U.S. dollars, except per share data, unaudited)
Three Months Ended
March 31,
2026
2025
% Change
Total Revenues
$766
$745
3 %
Net Product Revenues by Product:
VOXZOGO
$220
$214
3 %
Enzyme Therapies:
VIMIZIM
$210
$188
12 %
NAGLAZYME
130
114
14 %
PALYNZIQ
90
93
(3) %
BRINEURA
47
40
18 %
ALDURAZYME
37
49
(24) %
Total Enzyme Therapies Revenue
$514
$484
6 %
KUVAN®
$24
$25
(4) %
ROCTAVIAN
$3
$11
(73) %
GAAP Net Income
$106
$186
(43) %
Non-GAAP Income (1)
$149
$221
(33) %
GAAP Operating Margin % (2)
16.9 %
30.0 %
Non-GAAP Operating Margin % (1)
24.3 %
35.7 %
GAAP Diluted EPS
$0.54
$0.95
(43) %
Non-GAAP Diluted EPS (1)
$0.76
$1.13
(33) %
(1)
Refer to Non-GAAP Information beginning on page 9 of this press release for definitions of Non-GAAP Income, Non-GAAP Operating Margin percentage and Non-GAAP Diluted EPS along with the related reconciliations to the comparable information reported under U.S. GAAP.
(2)
GAAP Operating Margin percentage is defined by the company as GAAP Income from Operations divided by Total Revenues.
Forward-Looking Non-GAAP Financial Information
BioMarin does not provide guidance for GAAP reported financial measures (other than revenue) or a reconciliation of forward-looking Non-GAAP financial measures to the most directly comparable GAAP reported financial measures because the company is unable to predict with reasonable certainty the financial impact of changes resulting from its strategic portfolio and business operating model reviews; potential future asset impairments; gains and losses on investments; and other unusual gains and losses without unreasonable effort. These items are uncertain, depend on various factors, and could have a material impact on GAAP reported results for the guidance period. As such, any reconciliations provided would imply a degree of precision that could be confusing or misleading to investors.
Updated 2026 Full-Year Financial Guidance (in millions, except EPS amounts)
Updated guidance reflects post-close contributions from Amicus beginning April 27, 2026. As previously communicated, the acquisition of Amicus is expected to be slightly dilutive to full-year 2026 Non‑GAAP Diluted EPS; historical BioMarin Non-GAAP Diluted EPS guidance is unchanged. The Amicus acquisition will be accounted for as a business combination, which will result in intangible amortization impacting GAAP results over future periods and excluded from Non‑GAAP results. BioMarin will continue to include interest expense related to the Amicus financing in both GAAP and Non‑GAAP financial results. Guidance is subject to change based on various factors including finalization of purchase accounting. The company expects approximately two-thirds of 2026 Non-GAAP Diluted EPS to be recognized in the second half of 2026, primarily due to the anticipated timing of revenue (more than 55% of 2026 Total Revenues is expected in 2H). Non-GAAP Diluted EPS in Q2 is expected to be modestly higher than in Q1. Item
Provided on February 23, 2026
Updated May 4, 2026
Total Revenues
$3,325
to
$3,425
$3,825
to
$3,925
Enzyme Therapies
$2,225
to
$2,275
$2,725
to
$2,775
VOXZOGO
$975
to
$1,025
Unchanged
Other Revenues(1)
$100
to
$125
Unchanged
Non-GAAP Diluted EPS (2)(3)(4)
$4.95
to
$5.15
$4.85
to
$5.05
(1)
Other Revenues includes KUVAN, ROCTAVIAN, and royalties.
(2)
Refer to Non-GAAP Information beginning on page 9 of this press release for definition of Non-GAAP Diluted EPS.
(3)
Non-GAAP Diluted EPS guidance assumes approximately 200 million Weighted-Average Diluted Shares Outstanding.
(4)
Non-GAAP Diluted EPS guidance assumes a combined company tax rate of 22%, which is subject to change as the company completes its integration activities and purchase accounting.
BioMarin will host a conference call and webcast to discuss first quarter 2026 financial results today, Monday, May 4, 2026, at 4:30 p.m. ET. This event can be accessed through this link or on the investor section of the BioMarin website at www.biomarin.com.
U.S./Canada Dial-in Number: 800-715-9871
Replay Dial-in Number: 800-770-2030
International Dial-in Number: 646-307-1963
Replay International Dial-in Number: 609-800-9909
Conference ID: 3424435
Conference ID: 3424435
About BioMarin
BioMarin is a leading, global rare disease biotechnology company focused on delivering medicines for people living with genetically defined conditions. Founded in 1997, the San Rafael, California-based company has a proven track record of innovation, with a portfolio of commercial therapies and a strong clinical and preclinical pipeline. Using a distinctive approach to drug discovery and development, we seek to unleash the full potential of genetic science by pursuing category-defining medicines that have a profound impact on patients. To learn more, please visit www.biomarin.com.
Forward-Looking Statements
This press release and the associated conference call and webcast contain forward-looking statements about the business prospects of BioMarin Pharmaceutical Inc. (BioMarin), including, without limitation, statements about: future financial performance, including the expectations of Total Revenues, Non-GAAP Diluted EPS and operating cash flow for, in certain instances, the full-year 2026, second quarter and second half of 2026, and future periods, and the underlying drivers of those results, such as the expected demand and continued growth of BioMarin's Enzyme Therapies portfolio, including PALYNZIQ, and VOXZOGO, and the expected impact of the acquisition of Amicus Therapeutics, Inc. (Amicus); the anticipated benefits of the acquisition of Amicus, including the addition of GALAFOLD and POMBILITI + OPFOLDA to BioMarin's portfolio; BioMarin's plans for investment in innovation and future growth; the timing of orders for commercial products; plans and expectations regarding the development, commercialization and commercial prospects of BioMarin's product candidates and commercial products, including the prospects and timing of actions relating to clinical studies and trials and product approvals, such as study initiations, study advancements, data readouts, submissions, filings, approvals, and label expansions; the expected benefits and availability of BioMarin's commercial products and product candidates; and potential growth opportunities and trends, including the assumptions and expectations regarding total addressable patient population (TAPP) with respect to the conditions targeted by BioMarin's product candidates and commercial products.
These forward-looking statements are predictions and involve risks and uncertainties such that actual results may differ materially from these statements. These risks and uncertainties include, among others: BioMarin's success in the commercialization of its commercial products; BioMarin's ability to realize the anticipated benefits of any acquisitions; BioMarin's ability to accurately estimate future financial performance; impacts of macroeconomic and other external factors on BioMarin's operations, regulatory uncertainty, the impact of new or increased tariffs, other trade protection measures, and escalating trade tensions; geopolitical instability, wars and military conflicts; results and timing of current and planned preclinical studies and clinical trials and the release of data from those trials; BioMarin's ability to successfully manufacture its commercial products and product candidates; the content and timing of decisions by the U.S. Food and Drug Administration, the European Medicines Agency, the European Commission and other regulatory authorities concerning each of the described products and product candidates; the market for each of these products; BioMarin's ability to meet product demand; actual sales of BioMarin's commercial products; and those factors detailed in BioMarin's filings with the Securities and Exchange Commission, including, without limitation, the factors contained under the caption "Risk Factors" in BioMarin's Annual Report on Form 10-K for the year ended December 31, 2025, as such factors may be updated by any subsequent reports. Investors are urged not to place undue reliance on forward-looking statements, which speak only as of the date hereof. BioMarin is under no obligation, and expressly disclaims any obligation to update or alter any forward-looking statement, whether as a result of new information, future events or otherwise.
BioMarin®, VOXZOGO®, VIMIZIM®, NAGLAZYME®, PALYNZIQ®, BRINEURA®, KUVAN®, ROCTAVIAN®, GALAFOLD®, and POMBILITI® + OPFOLDA® are registered trademarks of BioMarin Pharmaceutical Inc., or its affiliates. ALDURAZYME® is a registered trademark of BioMarin/Genzyme LLC. All other brand names and service marks, trademarks and other trade names appearing in this release are the property of their respective owners.
BIOMARIN PHARMACEUTICAL INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
Three Months Ended March 31, 2026 and 2025
(In thousands of U.S. dollars, except per share amounts)
(Unaudited)
Three Months Ended
March 31,
2026
2025
REVENUES:
Net product revenues
$ 760,078
$ 734,644
Royalty and other revenues
6,130
10,501
Total revenues
766,208
745,145
OPERATING EXPENSES:
Cost of sales
194,999
151,558
Research and development
178,796
158,731
Selling, general and administrative
258,290
206,116
Intangible asset amortization
4,483
4,847
Total operating expenses
636,568
521,252
INCOME FROM OPERATIONS
129,640
223,893
Interest income
22,560
19,013
Interest expense
(14,958)
(2,863)
Other income (expense), net
3,961
(1,954)
INCOME BEFORE INCOME TAXES
141,203
238,089
Provision for income taxes
35,676
52,403
NET INCOME
$ 105,527
$ 185,686
EARNINGS PER SHARE, BASIC
$ 0.55
$ 0.97
EARNINGS PER SHARE, DILUTED
$ 0.54
$ 0.95
Weighted average common shares outstanding, basic
192,497
190,967
Weighted average common shares outstanding, diluted
197,671
196,474
BIOMARIN PHARMACEUTICAL INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
March 31, 2026 and 2025
(In thousands of U.S. dollars, except per share amounts)
(Unaudited)
March 31, 2026
December 31, 2025
ASSETS
Current assets:
Cash and cash equivalents
$ 2,222,435
$ 1,311,679
Short-term investments
—
248,930
Accounts receivable, net
903,914
908,214
Inventory
1,273,221
1,298,883
Other current assets
205,500
185,784
Total current assets
4,605,070
3,953,490
Noncurrent assets:
Long-term investments
—
492,242
Property, plant and equipment, net
958,071
952,508
Intangible assets, net
204,662
213,837
Goodwill
196,199
196,199
Deferred tax assets
1,500,598
1,508,697
Restricted cash equivalents
850,000
—
Other assets
276,416
277,049
Total assets
$ 8,591,016
$ 7,594,022
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued liabilities
$ 793,152
$ 759,031
Total current liabilities
793,152
759,031
Noncurrent liabilities:
Long-term debt, net
1,430,282
597,176
Other long-term liabilities
155,475
150,816
Total liabilities
2,378,909
1,507,023
Stockholders' equity:
Common stock, $0.001 par value: 500,000,000 shares authorized; 193,268,870 and
192,300,101 shares issued and outstanding, respectively
193
192
Additional paid-in capital
5,966,868
5,956,582
Company common stock held by the Nonqualified Deferred Compensation Plan
(10,450)
(10,508)
Accumulated other comprehensive income (loss)
(4,237)
(13,473)
Retained earnings
259,733
154,206
Total stockholders' equity
6,212,107
6,086,999
Total liabilities and stockholders' equity
$ 8,591,016
$ 7,594,022
BIOMARIN PHARMACEUTICAL INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
Three Months Ended March 31, 2026 and 2025
(In thousands of U.S. dollars)
(Unaudited)
Three Months Ended March 31,
2026
2025
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income
$ 105,527
$ 185,686
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
16,411
22,069
Non-cash interest expense
6,086
660
Accretion of discount on investments
(455)
(1,362)
Stock-based compensation
43,458
37,700
Impairment of assets
—
2,967
Deferred income taxes
9,220
28,429
Unrealized foreign exchange losses (gains)
6,710
(10,026)
Other
(5,374)
(1,267)
Changes in operating assets and liabilities:
Accounts receivable, net
(7,159)
(57,590)
Inventory
44,490
(24,335)
Other current assets
(11,551)
(6,327)
Other assets
1,484
(1,624)
Accounts payable and accrued liabilities
3,100
(2,655)
Other long-term liabilities
8,704
2,069
Net cash provided by operating activities
220,651
174,394
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property, plant and equipment
(20,923)
(16,768)
Maturities and sales of investments
767,277
77,804
Purchases of investments
(25,792)
(89,274)
Other
4,966
—
Net cash provided by (used in) investing activities
725,528
(28,238)
CASH FLOWS FROM FINANCING ACTIVITIES:
Taxes paid related to net share settlement of equity awards
(28,180)
(38,779)
Proceeds from issuance of debt
850,000
—
Payments of debt issuance costs
(8,653)
—
Net cash provided by (used in) financing activities
813,167
(38,779)
Effect of exchange rate changes on cash
1,410
(1,416)
NET INCREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH
EQUIVALENTS
1,760,756
105,961
Cash, cash equivalents and restricted cash equivalents:
Beginning of period
$ 1,311,679
$ 942,842
End of period
$ 3,072,435
$ 1,048,803
Non-GAAP Information
The results presented in this press release include both GAAP information and Non-GAAP information. Non-GAAP Income is defined by the company as GAAP Net Income (Loss) excluding amortization of intangible assets, stock-based compensation expense and, in certain periods, certain other specified items, as detailed below when applicable. The company also includes a Non-GAAP adjustment for the estimated tax impact of the reconciling items. Non-GAAP R&D expenses and Non-GAAP SG&A expenses are defined by the company as GAAP R&D expenses and GAAP SG&A expenses, respectively, excluding stock-based compensation expense and, in certain periods, certain other specified items, as detailed below when applicable. Non-GAAP Operating Margin percentage is defined by the company as GAAP Income (Loss) from Operations, excluding amortization of intangible assets, stock-based compensation expense and, in certain periods, certain other specified items, divided by GAAP Total Revenues. Non-GAAP Diluted EPS is defined by the company as Non-GAAP Income divided by Non-GAAP Weighted-Average Diluted Shares Outstanding. Non-GAAP Weighted-Average Diluted Shares Outstanding is defined by the company as GAAP Weighted-Average Diluted Shares Outstanding, adjusted to include any common shares issuable under the company's equity plans or convertible debt in periods when they are dilutive under Non-GAAP.
BioMarin regularly uses both GAAP and Non-GAAP results and expectations internally to assess its financial operating performance and evaluate key business decisions related to its principal business activities: the discovery, development, manufacture, marketing and sale of innovative biologic therapies. BioMarin also uses Non-GAAP Income internally to understand, manage and evaluate its business and to make operating decisions, and compensation of executives is based in part on this measure. Because these Non-GAAP metrics are important internal measurements for BioMarin, the company believes that providing this information in conjunction with BioMarin's GAAP information enhances investors' and analysts' ability to meaningfully compare the company's results from period to period and to its forward-looking guidance, and to identify operating trends in the company's principal business.
Non-GAAP financial measures are not meant to be considered in isolation or as a substitute for, or superior to comparable GAAP measures and should be read in conjunction with the consolidated financial information prepared in accordance with GAAP. Investors should note that the Non-GAAP information is not prepared under any comprehensive set of accounting rules or principles and does not reflect all of the amounts associated with the company's results of operations as determined in accordance with GAAP. Investors should also note that these Non-GAAP financial measures have no standardized meaning prescribed by GAAP and, therefore, have limits in their usefulness to investors. In addition, from time to time in the future there may be other items that the company may exclude for purposes of its Non-GAAP financial measures; likewise, the company may in the future cease to exclude items that it has historically excluded for purposes of its Non-GAAP financial measures. Because of the non-standardized definitions, the Non-GAAP financial measure as used by BioMarin in this press release and the accompanying tables may be calculated differently from, and therefore may not be directly comparable to, similarly titled measures used by other companies.
The following tables present the reconciliation of GAAP reported to Non-GAAP adjusted financial information:
Reconciliation of GAAP Reported Information to Non-GAAP Information (1)
(In millions of U.S. dollars, except per share data)
(unaudited)
Three Months Ended
March 31,
2026
2025
GAAP Reported Net Income
$ 106
$ 186
Adjustments
Stock-based compensation expense - COS
4
2
Stock-based compensation expense - R&D
12
12
Stock-based compensation expense - SG&A
28
23
Amortization of intangible assets
4
5
Severance costs (2)
8
—
Loss on investments (3)
—
3
Income tax effect of adjustments
(13)
(10)
Non-GAAP Income
$ 149
$ 221
Three Months Ended
March 31,
2026
2025
R&D
SG&A
R&D
SG&A
GAAP expenses
$ 179
$ 258
$ 159
$ 206
Adjustments
Stock-based compensation expense
(12)
(28)
(12)
(23)
Severance costs (2)
—
(8)
—
—
Non-GAAP expenses
$ 167
$ 222
$ 147
$ 183
Three Months Ended
March 31,
2026
Percent
of
GAAP
Total
Revenue
2025
Percent
of
GAAP
Total
Revenue
GAAP Income from Operations
$ 130
16.9 %
$ 224
30.0 %
Adjustments
Stock-based compensation expense
44
5.7
37
5.0
Amortization of intangible assets
4
0.5
5
0.7
Severance costs (2)
8
1.0
—
—
Non-GAAP Income from Operations
$ 186
24.3 %
$ 266
35.7 %
Three Months Ended
March 31,
2026
2025
GAAP Diluted EPS
$ 0.54
$ 0.95
Adjustments
Stock-based compensation expense
0.22
0.19
Amortization of intangible assets
0.02
0.03
Severance costs (2)
0.04
—
Loss on investments (3)
—
0.02
Income tax effect of adjustments
(0.07)
(0.05)
Non-GAAP Diluted EPS(4)
$ 0.76
$ 1.13
(1)
Certain amounts may not sum or recalculate due to rounding.
(2)
These amounts were included in SG&A and represent charges for severance in connection with the company's plan to simplify its organizational design and strategic initiatives in the first quarter of 2026.
(3)
Represents impairment loss on non-marketable equity securities recorded in Other income (expense), net, in the first quarter of 2025.
(4)
Both GAAP and Non-GAAP Weighted-Average Diluted Shares Outstanding were 197.7 million and 196.5 million shares for the three months ended March 31, 2026 and 2025, respectively.
BioMarin Pharmaceutical (BMRN - Free Report) came out with quarterly earnings of $0.76 per share, missing the Zacks Consensus Estimate of $0.94 per share. This compares to earnings of $1.13 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of -18.96%. A quarter ago, it was expected that this rare disease biopharmaceutical would post earnings of $0.25 per share when it actually produced earnings of $0.46, delivering a surprise of +84%.
Over the last four quarters, the company has surpassed consensus EPS estimates three times.
BioMarin, which belongs to the Zacks Medical - Biomedical and Genetics industry, posted revenues of $766.21 million for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 0.50%. This compares to year-ago revenues of $745.15 million. The company has topped consensus revenue estimates three times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
BioMarin shares have lost about 9% since the beginning of the year versus the S&P 500's gain of 5.6%.
What's Next for BioMarin?While BioMarin has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for BioMarin was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.21 on $834.21 million in revenues for the coming quarter and $4.97 on $3.35 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Medical - Biomedical and Genetics is currently in the bottom 44% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Compugen (CGEN - Free Report) , another stock in the same industry, has yet to report results for the quarter ended March 2026.
This drug developer is expected to post quarterly loss of $0.07 per share in its upcoming report, which represents a year-over-year change of +12.5%. The consensus EPS estimate for the quarter has been revised 3.5% higher over the last 30 days to the current level.
Compugen's revenues are expected to be $2.62 million, up 14.9% from the year-ago quarter.
For the quarter ended March 2026, BioMarin Pharmaceutical (BMRN - Free Report) reported revenue of $766.21 million, up 2.8% over the same period last year. EPS came in at $0.76, compared to $1.13 in the year-ago quarter.
The reported revenue represents a surprise of +0.5% over the Zacks Consensus Estimate of $762.4 million. With the consensus EPS estimate being $0.94, the EPS surprise was -18.96%.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how BioMarin performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Revenues- Net Product Revenues- ALDURAZYME: $37 million versus $46.11 million estimated by seven analysts on average. Compared to the year-ago quarter, this number represents a -24.5% change.Revenues- Net Product Revenues- KUVAN: $24 million versus $15.5 million estimated by seven analysts on average. Compared to the year-ago quarter, this number represents a -4% change.Revenues- Net Product Revenues- NAGLAZYME: $130 million versus $117.67 million estimated by seven analysts on average. Compared to the year-ago quarter, this number represents a +14% change.Revenues- Net Product Revenues- VIMIZIM: $210 million compared to the $193.58 million average estimate based on seven analysts. The reported number represents a change of +11.7% year over year.Revenues- Royalty and other revenues: $6.13 million compared to the $15.58 million average estimate based on seven analysts. The reported number represents a change of -41.6% year over year.Revenues- Net Product Revenues- PALYNZIQ: $90 million compared to the $111.91 million average estimate based on seven analysts. The reported number represents a change of -3.2% year over year.Revenues- Net Product Revenues- VOXZOGO: $220 million versus the seven-analyst average estimate of $216.32 million. The reported number represents a year-over-year change of +2.8%.Revenues- Net product revenues: $514 million compared to the $746.65 million average estimate based on seven analysts. The reported number represents a change of -30% year over year.Revenues- Net Product Revenues- BRINEURA: $47 million versus the seven-analyst average estimate of $45.9 million. The reported number represents a year-over-year change of +17.5%.View all Key Company Metrics for BioMarin here>>>
Shares of BioMarin have returned -2.6% over the past month versus the Zacks S&P 500 composite's +10% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
Key Takeaways BioMarin reported Q1 EPS of 76 cents, missing estimates, while revenue rose 3% to $766.2M.BMRN earnings fell 33% due to a $31M charge and higher costs tied to the Amicus acquisition.BioMarin raised its 2026 revenue outlook to $3.83-$3.93B, reflecting contributions from new therapies. BioMarin Pharmaceutical (BMRN - Free Report) reported first-quarter 2026 adjusted earnings per share of 76 cents, missing the Zacks Consensus Estimate of 94 cents. However, earnings declined 33% year over year. This was largely due to a $31 million charge tied to the company’s unsuccessful campaign to extend Naglazyme manufacturing capabilities, as well as higher operating expenses associated with the acquisition of Amicus Therapeutics.
Total revenues in the first quarter were $766.2 million, up 3% year over year. The figure beat the Zacks Consensus Estimate of $762.4 million.
BMRN Stock MovementShares of BioMarin were down in after-hours trading on Monday, likely due to the mixed earnings results.
Year to date, the stock has lost about 7% compared with the industry’s 2% decline.
Image Source: Zacks Investment Research
More on BMRN’s EarningsNet product revenues totaled nearly $760.1 million, up 3.5% year over year on higher revenues from the company’s Enzyme Therapies, as well as Voxzogo.
Royalty and other revenues totaled $6.1 million, down about 42% year over year.
Voxzogo, approved for achondroplasia, generated sales of $220 million, up 3% year over year. Per the company, this modest upside was expected, as it had previously experienced large orders for the drug in the fourth quarter of 2025. Despite this, Voxzogo sales beat the Zacks Consensus Estimate of $216 million.
BioMarin reports consolidated revenues from five products — Aldurazyme, Brineura, Naglazyme, Palynziq and Vimizim — under a single segment, “Enzyme Therapies.” Sales from this franchise increased 6% year over year to $514 million in the reported quarter, driven by higher product sales of Vimizim, Naglazyme and Brineura.
Palynziq injection sales totaled $90 million in the quarter, down 3% year over year, impacted by order timing in the United States. The drug’s sales missed the Zacks Consensus Estimate of $112 million.
Vimizim sales rose 12% year over year to $210 million, which beat the Zacks Consensus Estimate of $194 million.
Naglazyme sales increased 14% year over year to $130 million. Brineura generated sales of $47 million, up 18%.
Product revenues from Aldurazyme totaled $37 million, down 24% year over year.
BioMarin signed a collaboration agreement with Sanofi’s (SNY - Free Report) subsidiary, Genzyme, for Aldurazyme. SNY, through Genzyme, is BMRN’s sole customer for Aldurazyme. The Sanofi subsidiary is responsible for marketing and selling Aldurazyme to third parties.
Other RevenuesThe gene therapy Roctavian generated $3 million in sales compared with $11 million in the year-ago period. This downside is attributable to the company’s decision to voluntarily withdraw the product from the market.
In the phenylketonuria (PKU) franchise, Kuvan revenues declined 4% to $24 million due to generic competition. The drug lost U.S. market exclusivity in late 2020.
BMRN’s 2026 OutlookLast week, BioMarin announced that it completed the acquisition of Amicus Therapeutics for $4.8 billion. Post-acquisition, the company added two marketed therapies — Galafold (for Fabry disease) and Pombiliti-Opfolda (a combination therapy for Pompe disease) — which will form part of the Enzyme Therapies segment.
BMRN now expects to record total revenues in the range of $3.83-$3.93 billion in 2026, up from the previous guidance of $3.33-$3.43 billion. This new guidance, which includes contributions from Amicus’ marketed drugs, suggests growth of 20% at the mid-point of the range. Management expects to generate more than 55% of the overall 2026 revenues in the second half of the year.
While BioMarin reiterated its Voxzogo sales guidance to be in the range of $975 million to $1.03 billion, it now expects enzyme therapies revenues to be between $2.73 billion and $2.78 billion (previously: $2.23-$2.28 billion). Despite the decline in first-quarter sales, BMRN expects Palynziq sales to increase in 2026, primarily boosted by the drug’s recent approval in adolescents with PKU.
Since the company has accounted for the Amicus Therapeutics acquisition as a business combination, it will result in intangible amortization impacting GAAP results over future periods and will be excluded from non-GAAP results. However, both these results will be impacted by interest expense related to the Amicus financing.
BioMarin has revised its adjusted earnings per share (EPS) to be in the range of $4.85-$5.05 for the year, down from the previous guidance of $4.95-$5.15. While the company expects about two-thirds of this figure to be recognized in the second half of the year, it projects the adjusted EPS in the second quarter to be modestly higher than in the first quarter.
BMRN’s Recent Pipeline UpdatesBioMarin continues to advance its CANOPY clinical program, which evaluates Voxzogo in a phase III study for a potential second indication — hypochondroplasia, a condition characterized by impaired bone growth. Data from this study is expected in the second quarter of 2026, while regulatory submissions are expected thereafter in the second half of 2026 (provided the data is supportive).
As part of the CANOPY program, BMRN is also evaluating Voxzogo in separate phase II studies for two other short-stature pathway conditions — idiopathic short stature and Noonan Syndrome.
The company also expects to report data in the second quarter of 2026 from another phase III study evaluating BMN 401 for the treatment of a rare genetic disorder called ENPP1 deficiency in children. If this data is supportive, BioMarin intends to start regulatory submissions for the therapy in the second half of the year.
Last month, BMRN enrolled the first patient in a registration-enabling phase II/III study evaluating BMN 333 — a long-acting formulation of CNP — as a potential treatment for multiple growth-related conditions that offers the option for less frequent dosing. An update on this candidate is expected next year.
BMRN’s Zacks RankBioMarin currently carries a Zacks Rank #3 (Hold).
Stocks to ConsiderSome better-ranked stocks include Castle Biosciences (CSTL - Free Report) and Catalyst Pharmaceuticals (CPRX - Free Report) . While CSTL sports a Zacks Rank #1 (Strong Buy) at present, CPRX carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Over the past 30 days, estimates for Castle Biosciences’ 2026 loss per share have narrowed from $1.42 to $1.40. Over the same period, loss per share estimates for 2027 have narrowed from 79 cents to 78 cents. CSTL shares have lost 34% year to date.
Castle Biosciences’ earnings beat estimates in three of the trailing four quarters and missed in the remaining one, with the average surprise being 34.69%.
Over the past 30 days, estimates for Catalyst Pharmaceuticals’ 2026 EPS have risen from $2.78 to $2.79. Over the same period, EPS estimates for 2027 have increased from $3.25 to $3.28. CPRX shares have gained 24% year to date.
Catalyst Pharmaceuticals’ earnings beat estimates in each of the trailing four quarters, with the average surprise being 35.19%.
BioMarin Pharmaceutical remains a "Strong Buy," driven by pipeline progress, strategic acquisitions, and robust revenue guidance. BMRN's acquisition of Amicus Therapeutics adds GALAFOLD and POMBILITI + OPFOLDA, boosting 2026 revenue guidance to $3.825–$3.925 billion and targeting 20% YoY growth. VOXZOGO expansion into hypochondroplasia and ongoing clinical trials represent major catalysts, with topline Phase 3 data expected in Q2 2026.
Pre-Market Stock Futures: Futures are trading lower as we get set to start the new trading week, as reports indicate that President Trump declined Iran’s counteroffer for peace. This comes after a remarkable Friday, when stocks roared to record highs, driven primarily by a stronger-than-expected April jobs report that eased economic concerns and by a rally in technology and chip stocks. The S&P 500 rose 0.8% to close the session at 7,398 and notched its longest winning streak since 2024, while the Nasdaq Composite climbed 1.7% and finished the day at 26,247, both marking their sixth consecutive week of gains. The legacy Dow Jones Industrial Average eked out a small gain to close at 49,609, while the small-cap-heavy Russell 2000 was last seen at 2,861, up 0.71%. Earnings for the first quarter, which have been outstanding, are all but over, and Wall Street’s focus will remain on oil prices, the war in Iran, and any indications that inflation is edging higher.
Treasury Bonds: After briefly touching the 5% and higher level for long-dated Treasury bonds early last week, the buyers were once again the story on Friday as yields acros the curve were lower. The solid job numbers were cited as the reason buyers were looking past the inflationary implications of higher oil prices and increased Treasury borrowing. The 30-year long bond was last seen at 4.94% while the benchmark 10-year note finished the day at 4.36%.
Oil and Gas: A modest uptick in oil prices was among Friday’s few negatives. Analysts pointed to fresh military hostilities in the Strait of Hormuz, where U.S. and Iranian forces traded fire, putting the already fragile ceasefire at risk and stoking fears that supply flows through the vital Middle Eastern shipping lane could be disrupted for longer than anticipated. Brent Crude was last seen at $101.30, up 1.23%, while West Texas Intermediate finished the session at $95.42, up 0.64%. Natural gas closed Friday at $2.75, down 0.43%.
Gold: Gold moved in lockstep with stocks and bonds on Friday, capping one of its strongest weeks in recent memory. The precious metal settled at $4,713, its highest close since April 22, and logged a weekly gain of more than 2%, lifted by growing optimism that a U.S.-Iran peace deal could take shape and relieve the inflation pressure that has kept rate-cut hopes at bay. That backdrop is worth keeping in mind: gold had shed more than 10% since the war broke out in late February, dragged lower by surging oil prices that fanned inflation fears and pushed back expectations for easier monetary policy. At the margin, Friday’s bounce looks more like a peace-driven relief rally than a classic flight to safety. Silver also closed higher, and was last seen Friday at $80.22, up 2.47%.
Crypto: Crypto markets pulled back Friday as momentum stalled following a recent surge. Bitcoin slipped to around $80,000, down 0.8% on the day, a modest retreat, but enough to signal cooling sentiment across the board with major assets like Ethereum, Solana, and XRP also trailing off their weekly highs. At 8 AM EDT, Bitcoin was trading at $81,131, while Ethereum was quoted at $2,334.
24/7 Wall St. reviews dozens of analyst research reports daily to identify new investment ideas for both investors and traders. Some of these daily analyst calls cover stocks to buy. Other calls cover stocks to sell or avoid. Remember that no single analyst call should ever be used as a basis to buy or sell a stock.
Here are some of the top Wall Street analyst upgrades, downgrades, and initiations seen on Monday, May 11, 2026.
Upgrades: NatWest Group (NYSE: NWG | NWG Price Prediction) was upgraded to Outperform from Neutral at BNP Paribas, with an $18.20 target price. News Corporation (NASDAQ: NWSA) was raised to Outperform from Market Perform at Macquarie, with a $29.40 target price. Pitney Bowes (NYSE: PBI) was upgraded to Neutral from Underperform at Bank of America, which raised the price target to $16.50 from $9.50. Primoris Services (NYSE: PRIM) was raised to Outperform from Neutral at Mizuho, which lowered the target price for the stock to $135 from $175. Walt Disney (NYSE: DIS) was upgraded to Buy from Hold at Phillip Securities, with a $139 target price. Downgrades: Dell Technologies (NYSE: DELL) was downgraded to Neutral from Buy at UBS, with a $243 target price for the stock, up from $167. Healthpeak Properties (NYSE: DOC) was downgraded to Inline from Outperform at Evercore ISI, which nudged the price target for the stock to $21 from $20. HubSpot (NYSE: HUBS) was downgraded to Neutral from Outperform at Macquarie, which slashed the target price for the stock to $190 from $350. Trade Desk (NASDAQ: TTD) was cut to Reduce from Hold at HSBC with a $20 target price. Wendy’s (NYSE: WEN) was cut to Underweight from Neutral at JPMorgan, which trimmed the target price for the fast-food favorite to $6 from $7. Initiations: BioMarin Pharmaceutical (NASDAQ: BMRN) was reinstated with a Neutral rating at Goldman Sachs, which has a $69 target price. BridgeBio Oncology Therapeutics (NASDAQ: BBOT) was started with a Buy rating at Canaccord, with a $23 price target. Coherus Oncology (NASDAQ: CHRS) was started with a Buy rating at Guggenheim, with a $12 target price. Klarna Group (NYSE: KLAR) was initiated with a Hold rating at TD Cowen, and has a $16 target price for the shares. Oklo (NYSE: OKLO) was started with a Neutral rating at JPMorgan, which has set an $83 target for the stock.
ENERGY 3 study met 1 of 2 co-primary endpoints in children with ENPP1 deficiency Treatment with BMN 401 led to statistically significant increases in plasma inorganic pyrophosphate (PPi) concentration, one of the study's co-primary endpoints; however, no improvement was observed in Radiographic Global Impression of Change (RGI-C) scores, the study's other co-primary endpoint and an important clinical measure of change in rickets severity Company is evaluating data to determine next steps SAN RAFAEL, Calif., May 18, 2026 /PRNewswire/ -- BioMarin Pharmaceutical Inc. (Nasdaq: BMRN) today announced results from the pivotal Phase 3 ENERGY 3 trial evaluating BMN 401 in children aged 1-12 with ENPP1 deficiency, a rare, serious and progressive genetic condition.
CompaniesMay 18 (Reuters) - BioMarin Pharmaceutical (BMRN.O), opens new tab said on Monday its experimental treatment for a rare genetic condition met one of the two main goals in a late-stage study.
The company was testing its enzyme replacement therapy called BMN 401 in children aged 1 to 12 years with ENPP1 deficiency, a rare, lifelong genetic condition.
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The condition is caused by changes in the ENPP1 gene that result in a decrease in plasma inorganic pyrophosphate, leading to damage to blood vessels, soft tissues and bones.
BioMarin said the therapy met a main goal of significant increases in plasma pyrophosphate through 52 weeks, compared with conventional therapy.
However, it did not show an improvement in a measure of the treatment impact in children with rickets, which causes weak bones, the company said.
Shares of the company were down 2.3% at $50.62.
"We interpret the result as a meaningful clinical failure for BMN 401," H.C. Wainwright analyst Mitchell Kapoor said.
Children with ENPP1 deficiency typically develop a type of rickets that may cause pain and difficulty with movement.
"We are disappointed that the significant increases in plasma PPi observed with BMN 401 did not translate into meaningful clinical improvements for children with ENPP1 deficiency," said Greg Friberg, chief research and development officer at BioMarin.
BioMarin also said it saw no meaningful improvement in rickets severity, which reflects bone weakness and deformities, or in growth, including height and weight.
The company said it is evaluating the data to determine next steps.
The result "materially lowers the probability that BMN 401 becomes a meaningful near-term commercial asset," Kapoor said.
He added that it "increases pressure on BioMarin to deliver elsewhere, including Voxzogo expansion in hypochondroplasia, BMN 333’s long-acting CNP program, and additional business development."
Currently there are no approved treatments for ENPP1 deficiency, and current care focuses on managing symptoms such as bone deformities, pain and movement issues.
Reporting by Sneha S K and Kunal Das in Bengaluru; Editing by Shreya Biswas
Our Standards: The Thomson Reuters Trust Principles., opens new tab
Pre-Market Stock Futures: Futures are trading lower on Tuesday as the sell-off in technology stocks carried through to Monday and is headed down that road today. All of the major indices, except the Dow Jones Industrial Average, which closed 0.32% higher at 49,668, finished the day lower. The small-cap Russell 2000 was the big loser on Monday, closing down 0.63% at 2,775, while the tech-heavy Nasdaq closed lower by 0.51% at 26,090. The S&P 500, which made numerous new highs last week, was last seen at 7,403, down 0.07%. The same issues combined to create the weakness on Monday: worries about higher inflation, the ongoing war in Iran, where President Trump said he called off an imminent attack, and, of course, rising bond yields.
Treasury Bonds: After a brutal beatdown last week, yields across the Treasury curve closed modestly lower as some buyers came in to examine the wreckage. With Wall Street legend Ed Yardeni boldly stating that the bond vigilantes will push yields higher if new Fed Chair Kevin Warsh doesn’t raise rates to combat mounting inflation at some point, the proverbial line in the sand has clearly been drawn. The 30-year bond closed the day at 5.13%, unchanged, and the benchmark 10-year note at 4.59%, also unchanged from Friday.
Oil and Gas: For the first time in over a week, pricing across the energy complex was flat to down, and one thing is for sure. The pressure is mounting on President Trump to wrap up the situation in Iran and reopen the Strait of Hormuz for energy transit. When the dust finally settled Monday, Brent Crude closed the day almot 1% at $108.20, while West Texas Intermediate was marginally higher at $101.30. Natural gas, which has been strong recently, closed the session at $3.02, up 2.13%, as the United States LNG production and sales are quickly becoming the backbone of the world’s gas supply.
Gold: After a rough end to last week, precious metals trended higher on Monday as investors bought into the recent weakness. While the same issues that have muddied the water for almost every asset class since the start of the war with Iran, gold and silver have started to put in a solid base at current trading levels, and could be poised for big moves higher when the Iran issues are resolved. The final trade for Gold was reported at $4,561, up 0.50%, while Silver was last seen at $77.40, up 2.06%.
Crypto: Cryptocurrencies declined on Monday amid a broad sell-off, with Bitcoin sliding to a two-week low near $76,400. The drop triggered more than $660 million in liquidations across the crypto market, as rising bond yields, persistent inflation, and geopolitical tensions weighed on investor risk appetite. It confirms what many have been saying about the crypto market for months: most upticks and positive days are likely mostly short covering. At 8 AM EDT, Bitcoin was trading at $76,680, while Ethereum was quoted at $2,111.
24/7 Wall St. reviews dozens of analyst research reports daily to identify new investment ideas for both investors and traders. Some of these daily analyst calls cover stocks to buy. Other calls cover stocks to sell or avoid. Remember that no single analyst call should ever be used as a basis to buy or sell a stock.
Here are some of the top Wall Street analyst upgrades, downgrades, and initiations seen on Tuesday, May 19, 2026.
Upgrades: American Tower (NYSE: AMT | AMT Price Prediction) was upgraded to Outperform from Market Perform at Bernstein, which has a $207 target price for the shares. Assured Guaranty (NYSE: AGO) was upgraded to Buy from Neutral at UBS, with a $94 target price. Credicorp (NYSE: BAP) was raised to Buy from Hold at HSBC, with the target price for the stock bumped to $350 from $320. Jazz Pharmaceuticals (NASDAQ: JAZZ) was raised to Buy from Neutral at UBS, which launched the target price for the stock to $307 from $188. Stubhub Holdings (NYSE: STUB) was upgraded to Buy from Neutral at Guggenheim, which lifted the target price for the share to $12.50 from $8.50. Downgrades: Bank of America (NYSE: BAC) was downgraded to Hold from Buy at CFRA, without a target price. Citigroup (NYSE: C) was also cut to Hold from Buy at CFRA, without a target price. CrowdStrike Holdings (NASDAQ: CRWD) was double downgraded to Sell from Buy at DZ Bank, with a $500 target price. Fortinet (NASDAQ: FTNT) was also double downgraded to Sell from Buy at DZ Bank, with a $125 target price. Hanover Insurance Group (NYSE: THG) was downgraded to Market Perform from Outperform at BMO Capital, which bumped the target price for the stock to $203 from $194. Initiations: Alnylam Pharmaceuticals (NASDAQ: ALNY) was initiated with a Buy rating at Citigroup, which has set a $380 price target for the shares. BioMarin Pharmaceutical (NASDAQ: BMRN) was initiated with a Buy rating at Citigroup with a $75 target price. Cemex SAB (NYSE: CX) was assumed with a Neutral rating at Grupo Santander with a $14 target price. X-Energy (NASDAQ: XE) was started with a Buy rating at UBS, with a $40 target. JPMorgan has an Overweight rating for the stock with a $38 target, while UBS has a Buy rating and a nd a $40 target price. The stock was a recent successful IPO, backed by Amazon and Ken Griffin from Citadel. Zeta Global Holdings (NYSE: ZETA) was initiated with a Buy rating at Bank of America, with a $24 target price objective.
Key Takeaways BioMarin shares fell 4% after BMN 401 missed one of two main goals in the phase III ENERGY 3 study.BMRN reported higher plasma PPi levels, but no improvement in radiographic scores after 52 weeks.BMN 401 also missed secondary goals tied to rickets severity, height and weight growth measures. Shares of BioMarin Pharmaceutical (BMRN - Free Report) were down 4% on Monday after it reported results from the phase III ENERGY 3 study, which evaluated BMN 401, an investigational enzyme replacement therapy (ERT), for a rare genetic disorder called ENPP1 deficiency in children aged 1 to 12.
The study did not meet one of its two main goals.
BMRN’s Stock PerformanceThe mixed results were a setback for BioMarin, which added BMN 401 through its $270 million acquisition of Inozyme Pharma last year. This ERT was the lead asset in Inozyme’s pipeline, and the ENERGY 3 study was already underway at the time of the acquisition.
Year to date, the stock has lost 16% compared with the industry’s 3% fall.
Image Source: Zacks Investment Research
More on BioMarin’s ENERGY 3 Study ResultsThe study assessed two primary endpoints — changes in plasma inorganic pyrophosphate (PPi) and Radiographic Global Impression of Change (RGI-C) scores after 52 weeks of treatment. While treatment with BMN 401 after 52 weeks resulted in statistically significant increases in plasma PPi, there was no corresponding improvement in RGI-C scores.
An increase in plasma PPi is considered an important biomarker response because ENPP1 deficiency leads to low PPi levels, which can result in progressive damage to blood vessels, soft tissues and bones.
However, BMN 401 failed to demonstrate improvement in RGI-C scores, a key measure used to assess treatment impact in children with rickets. The lack of radiographic improvement suggests that the biomarker gains did not translate into measurable skeletal benefits during the study period.
The therapy also did not show positive trends across secondary endpoints, including Rickets Severity Score (RSS), a measure of rickets severity, and growth Z-scores evaluating height/body length and weight.
BioMarin stated that it will continue analyzing the complete ENERGY 3 dataset and engage with global regulatory authorities to determine the next steps for BMN 401’s development program. The company also plans to present detailed findings from the study at a future medical meeting.
BMRN’s Zacks RankThe stock currently carries a Zacks Rank #3 (Hold).
Key Picks Among Biotech StocksSome better-ranked stocks from the sector are Immunocore (IMCR - Free Report) and Indivior Pharmaceuticals (INDV - Free Report) , each currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Over the past 30 days, estimates for Immunocore’s 2026 loss per share have narrowed from 97 cents to 16 cents. Over the same period, estimates for 2027 have improved from a loss of 39 cents to earnings of 11 cents. IMCR shares have lost 18% year to date.
Immunocore’s earnings beat estimates in three of the trailing four quarters but missed the mark on one occasion, delivering an average surprise of 46.66%.
Over the past 30 days, estimates for Indivior Pharmaceuticals’ 2026 EPS have increased from $3.10 to $3.35. Over the same period, EPS estimates for 2027 have risen to $3.69 from $3.47. INDV shares have risen 2% year to date.
Indivior Pharmaceuticals’ earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 65.44%.
Study met primary endpoint, exceeding expectations with a highly statistically significant improvement in annualized growth velocity (AGV, change from baseline) of 2.33 cm/yr compared to placebo at week 52, as well as statistically significant increases in standing height and height Z-score
Study demonstrated statistically significant improvement in arm span at week 52 compared to placebo, a key measure linked to functional independence
Safety findings consistent with the established profile in achondroplasia with no new safety signals identified
Supplemental New Drug Application (sNDA) submission to U.S. Food and Drug Administration (FDA) planned for third quarter, followed by submissions to the European Medicines Agency (EMA) and other regional health authorities
Full data to be presented at an upcoming medical meeting
, /PRNewswire/ -- BioMarin Pharmaceutical Inc. (Nasdaq: BMRN) today announced that the Phase 3 CANOPY-HCH-3 study evaluating treatment with VOXZOGO® (vosoritide) in children with hypochondroplasia met its primary endpoint, demonstrating a statistically significant increase in the change from baseline at week 52 in annualized growth velocity (AGV) compared to placebo (LS mean difference +2.33 cm/yr, p<0.0001). Children who received VOXZOGO also showed a statistically significant increase in standing height (p<0.0001) and height Z-score (p<0.0001) versus placebo after one year of treatment.
Additionally, significant improvements in arm span were demonstrated (p=0.004), a key prespecified secondary endpoint in the study. These positive findings could have important implications for children with hypochondroplasia, offering improvements in reach, daily activities and independence, which have been highlighted as meaningful outcomes by the community.
"As someone who treats children with hypochondroplasia, I find these positive results tremendously encouraging. Seeing these improvements in growth is a milestone we have hoped for after so many years without treatment options," said Dr. Andrew Dauber, who is the lead study investigator and Chief of Endocrinology at Children's National Hospital in Washington, D.C. "These data suggest we may be approaching a new era in how we care for children with hypochondroplasia."
"For the first time, a pivotal Phase 3 study in hypochondroplasia has demonstrated impressive gains in growth, including improvements in arm span, highlighting VOXZOGO's potential to fundamentally change the treatment landscape for this condition," said Greg Friberg, M.D., Executive Vice President and Chief Research & Development Officer at BioMarin. "We are incredibly pleased with these results, which exceeded our expectations for this study, and we are deeply grateful to the families and investigators who made this outcome possible. We look forward to sharing these data with regulatory authorities and the broader community as we work to bring this medicine to children living with hypochondroplasia around the world."
The safety findings in the study for VOXZOGO were consistent with the established profile in achondroplasia and no new safety signals were observed. Full results from the CANOPY-HCH-3 study will be presented at an upcoming medical meeting.
The supplemental New Drug Application (sNDA) submission to the U.S. Food and Drug Administration (FDA) is planned for the third quarter of 2026, followed by submissions to the European Medicines Agency (EMA) and other regional health authorities.
About CANOPY-HCH-3
CANOPY-HCH-3 (Study 111-303) is a global Phase 3, 1:1 randomized, double-blind, placebo-controlled, multicenter study designed to evaluate the efficacy and safety of VOXZOGO in 80 children ages 3 to 17 with hypochondroplasia. The primary endpoint of the study was change from baseline in annualized growth velocity (AGV) at 52 weeks compared to placebo. Key secondary pre-specified endpoints included changes from baseline in standing height, height Z-score, arm span, upper to lower body segment ratio, and health-related quality of life, along with assessments of safety and tolerability. Study participants will continue to be followed in a long-term extension study.
About Hypochondroplasia
Hypochondroplasia is a rare, genetic skeletal dysplasia characterized by impaired bone growth, leading to disproportionate short stature and skeletal differences that can affect the long bones, spine, and other parts of the skeleton and may impact physical functioning and overall quality of life. The condition presents with a broad and variable clinical spectrum and may include otolaryngologic (related to the ears, nose and throat) and neurological complications and is often diagnosed in toddlerhood or early school age based on clinical and radiological findings.
There are currently no medicines approved by the U.S. Food and Drug Administration or the European Medicines Agency for the treatment of hypochondroplasia.
For more information about our clinical trials in hypochondroplasia, achondroplasia and other skeletal conditions, please visit clinicaltrials.biomarin.com.
About VOXZOGO (vosoritide)
VOXZOGO is approved in the U.S., Japan and Australia to increase linear growth in children of all ages with achondroplasia with open epiphyses, and VOXZOGO is indicated in the EU for the treatment of achondroplasia in children 4 months of age and older whose epiphyses are not closed, as confirmed by appropriate genetic testing. In the U.S., this indication is approved under accelerated approval based on an improvement in annualized growth velocity. Continued approval may be contingent upon verification and description of clinical benefit in confirmatory trial(s). To fulfill this post-marketing requirement, BioMarin submitted its U.S. supplemental New Drug Application (sNDA) for full approval of VOXZOGO for achondroplasia in April 2026, and the company expects to be notified of sNDA acceptance by the third quarter of 2026.
The use of VOXZOGO to treat hypochondroplasia has not yet been approved by any regulatory agency.
VOXZOGO U.S. Important Safety Information
What is VOXZOGO used for?
VOXZOGO is a prescription medicine used to increase linear growth in children with achondroplasia and open growth plates (epiphyses). VOXZOGO is approved under accelerated approval based on an improvement in annualized growth velocity. Continued approval may be contingent upon verification and description of clinical benefit in confirmatory trials. What is the most important safety information about VOXZOGO?
VOXZOGO may cause serious side effects including a temporary decrease in blood pressure in some patients. To reduce the risk of a decrease in blood pressure and associated symptoms (dizziness, feeling tired, or nausea), patients should eat a meal and drink 8 to 10 ounces of fluid within 1 hour before receiving VOXZOGO. What are the most common side effects of VOXZOGO?
The most common side effects of VOXZOGO include injection site reactions (including redness, itching, swelling, bruising, rash, hives, and injection site pain), high levels of blood alkaline phosphatase shown in blood tests, vomiting, joint pain, decreased blood pressure, and stomachache. These are not all the possible side effects of VOXZOGO. Ask your healthcare provider for medical advice about side effects, and about any side effects that bother the patient or that do not go away. How is VOXZOGO taken?
VOXZOGO is taken daily as an injection given under the skin, administered by a caregiver after a healthcare provider determines the caregiver is able to administer VOXZOGO. Do not try to inject VOXZOGO until you have been shown the right way by your healthcare provider. VOXZOGO is supplied with Instructions for Use that describe the steps for preparing, injecting, and disposing VOXZOGO. Caregivers should review the Instructions for Use for guidance and any time they receive a refill of VOXZOGO in case any changes have been made. Inject VOXZOGO 1 time every day, at about the same time each day. If a dose of VOXZOGO is missed, it can be given within 12 hours from the missed dose. After 12 hours, skip the missed dose and administer the next daily dose as usual. The dose of VOXZOGO is based on body weight. Your healthcare provider will adjust the dose based on changes in weight following regular check-ups. Your healthcare provider will monitor the patient's growth and tell you when to stop taking VOXZOGO if they determine the patient is no longer able to grow. Stop administering VOXZOGO if instructed by your healthcare provider. What should you tell the doctor before or during taking VOXZOGO?
Tell your doctor about all of the patient's medical conditions including If the patient has heart disease (cardiac or vascular disease), or if the patient is on blood pressure medicine (anti-hypertensive medicine). If the patient has kidney problems or renal impairment. If the patient is pregnant or plans to become pregnant. It is not known if VOXZOGO will harm the unborn baby. If the patient is breastfeeding or plans to breastfeed. It is not known if VOXZOGO passes into breast milk. Tell your doctor about all of the medicines the patient takes, including prescription and over-the-counter medicines, vitamins, and herbal supplements. You may report side effects to BioMarin at 1-866-906-6100. You are encouraged to report negative side effects of prescription drugs to the FDA. Visit www.fda.gov/medwatch, or call 1-800-FDA-1088.
Please see additional safety information in the full Prescribing Information and Patient Information.
About BioMarin
BioMarin is a leading, global rare disease biotechnology company focused on delivering medicines for people living with genetically defined conditions. Founded in 1997, the San Rafael, California-based company has a proven track record of innovation, with a portfolio of commercial therapies and a strong clinical and preclinical pipeline. Using a distinctive approach to drug discovery and development, BioMarin seeks to unleash the full potential of genetic science by pursuing category-defining medicines that have a profound impact on patients. To learn more, please visit www.biomarin.com.
Forward-Looking Statements
This press release contains forward-looking statements about the business prospects of BioMarin Pharmaceutical Inc. (BioMarin), including without limitation, statements about: the development of BioMarin's VOXZOGO program generally, and the results of the pivotal Phase 3 CANOPY-HCH-3 study evaluating treatment with VOXZOGO in children with hypochondroplasia particularly; the safety profile and potential benefits of VOXZOGO for children with hypochondroplasia, including VOXZOGO's potential to fundamentally change the treatment landscape for hypochondroplasia; BioMarin's plans to submit for regulatory approval to global health authorities in the second half of 2026; and BioMarin's expectations regarding the demand for VOXZOGO. These forward-looking statements are predictions and involve risks and uncertainties such that actual results may differ materially from these statements. These risks and uncertainties include, among others, the final analysis of the results from CANOPY-HCH-3, any potential adverse events observed in the continuing monitoring of the patients in the clinical trials; the content and timing of decisions by the U.S. Food and Drug Administration, the European Medicines Agency, the European Commission and other regulatory authorities; and those factors detailed in BioMarin's filings with the Securities and Exchange Commission (SEC), including, without limitation, the factors contained under the caption "Risk Factors" in BioMarin's Quarterly Report on Form 10-Q for the quarter ended March 31, 2026, as such factors may be updated by any subsequent filings with the SEC. Investors are urged not to place undue reliance on forward-looking statements, which speak only as of the date hereof. BioMarin is under no obligation, and expressly disclaims any obligation to update or alter any forward-looking statement, whether as a result of new information, future events or otherwise.
BioMarin® and VOXZOGO® are registered trademarks of BioMarin Pharmaceutical Inc.
CompaniesMay 20 (Reuters) - BioMarin Pharmaceutical (BMRN.O), opens new tab said on Wednesday its treatment for a rare condition that leads to short stature helped boost growth in children, meeting the main goal of a late-stage study and sending its shares up nearly 5% in extended trading.
Here are some details:
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The drug, Voxzogo, significantly increased the annualized growth rate in patients with hypochondroplasia after 52 weeks compared with placebo, with treated patients growing 2.33 cm more, the company said.
Hypochondroplasia is a rare genetic skeletal disorder that affects bone growth and leads to short-limbed dwarfism.
Patients receiving the therapy saw significant improvement in standing height and arm span, a key secondary goal of the study.
The 80-patient study evaluated the drug in children aged 3 to 17 years.
There are currently no approved treatments for the disorder, BioMarin said.
Jefferies analyst Andrew Tsai said strong late-stage data for BioMarin's Voxzogo supports the underlying growth biology and could de-risk BridgeBio's <BBIO.O> oral rival infigratinib, which expects a study readout in the second half of 2026.
"Our $1 billion peak sales estimate in achondroplasia/hypochondroplasia could be conservative," Tsai added.
Voxzogo was already approved in 2021 in the U.S. for patients with achondroplasia, a form of dwarfism.
BioMarin plans to submit a supplemental application to U.S. regulators in the third quarter of this year.
Reporting by Siddhi Mahatole in Bengaluru; Editing by Diti Pujara
Our Standards: The Thomson Reuters Trust Principles., opens new tab
Hypochondroplasia is a form of genetic, short-limbed dwarfism.
The study met its primary endpoint, showing a statistically significant improvement in annualized growth velocity compared to placebo, which has excited investors and analysts alike.
VOXZOGO Study Meets Primary EndpointThe CANOPY-HCH-3 study demonstrated a 2.33 cm/year increase in annualized growth velocity at week 52, significantly exceeding expectations.
With plans for a supplemental New Drug Application submission to the FDA in the third quarter of 2026, these results could pave the way for new treatment options in a market currently lacking approved therapies for hypochondroplasia.
Additionally, significant improvements in arm span were demonstrated (p=0.004), a key prespecified secondary endpoint in the study.
“For the first time, a pivotal Phase 3 study in hypochondroplasia has demonstrated impressive gains in growth, including improvements in arm span, highlighting VOXZOGO’s potential to fundamentally change the treatment landscape for this condition,” said Greg Friberg, EVP and Chief Research & Development Officer at BioMarin
Analyst Consensus & Recent Actions: The stock carries a Buy rating with an average price target of $87.47. Recent analyst moves include:
B of A Securities: Buy (Lowers Target to $80.00) (May 19) Citigroup: Initiated with Buy (Target $75.00) (May 19) HC Wainwright & Co.: Neutral (Lowers Target to $50.00) (May 18) How BioMarin Ranks On Value And MomentumBelow is the Benzinga Edge scorecard for BioMarin Pharmaceuticals, highlighting its strengths and weaknesses compared to the broader market:
Value: 67.93 — The stock is performing moderately well in terms of value metrics. Momentum: 12.86 — Stock is underperforming the broader market. BMRN Price Action: BioMarin Pharmaceutical shares were up 8.05% at $54.24 at the time of publication on Thursday, according to Benzinga Pro data.
Photo: Shutterstock
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Key Takeaways BioMarin's Voxzogo boosted annualized growth velocity by 2.33 cm/yr versus placebo.BMRN plans a U.S. filing in Q3 2026 to expand Voxzogo into hypochondroplasia.Voxzogo faces new achondroplasia rivals as BioMarin targets a new growth opportunity. Shares of BioMarin Pharmaceutical (BMRN - Free Report) were up 3% in pre-market trading today after the company reported positive top-line results from the phase III CANOPY-HCH-3 study evaluating Voxzogo for label expansion in hypochondroplasia.
The study met its primary endpoint, with patients treated with the drug for 52 weeks showing a statistically significant increase in annualized growth velocity (AGV) of 2.33 cm/yr compared to placebo. Voxzogo also showed significant improvement across several key secondary pre-specified endpoints, including standing height, height Z-score and arm span.
Voxzogo was approved by the FDA in 2021 to treat children of all ages with achondroplasia, the most common form of dwarfism. It is approved for similar indications in Europe, Japan and Australia.
Hypochondroplasia is a rare genetic skeletal growth disorder marked by short stature and impaired bone growth. The condition is generally considered a milder form of achondroplasia. Per BioMarin, there are currently no therapies approved by the FDA or the EMA for hypochondroplasia, highlighting a significant unmet medical need.
Data from the CANOPY-HCH-3 study will support regulatory submissions seeking label expansion for Voxzogo in hypochondroplasia. BioMarin expects to submit a regulatory filing in the United States in the third quarter of 2026, followed by submissions to the EMA and other global regulatory authorities. If approved, the label expansion could broaden the drug’s addressable market opportunity.
Since its launch, Voxzogo has seen rapid uptake, driven by strong prescription demand. BioMarin expects to generate $0.98-$1.03 billion from Voxzogo sales in 2026.
BMRN’s Stock PerformanceYear to date, shares of BioMarin have lost nearly 16% compared with the industry’s 3% fall.
Image Source: Zacks Investment Research
BMRN’s Voxzogo Faces an Evolving Competitive LandscapeThe achondroplasia treatment market is becoming increasingly competitive. In February 2026, the FDA approved Ascendis Pharma’s (ASND - Free Report) Yuviwel for achondroplasia, marking the first direct competitor to Voxzogo. Before this approval, Voxzogo was the only FDA-approved therapy for the condition. The approval of ASND’s Yuviwel was also a key factor behind BioMarin withdrawing its prior 2027 revenue guidance of approximately $4 billion.
Meanwhile, BridgeBio Pharma (BBIO - Free Report) is preparing to submit a regulatory filing to the FDA in the third quarter of 2026 for its investigational achondroplasia candidate, infigratinib.
Against this increasingly competitive backdrop, potential expansion of Voxzogo into hypochondroplasia could provide BioMarin with an additional growth avenue and help offset future competitive pressure in the achondroplasia market. With no FDA- or EMA-approved therapies currently available for hypochondroplasia, the company may also benefit from a potential first-mover advantage in the indication.
BMRN’s Zacks RankThe stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
A month has gone by since the last earnings report for BioMarin Pharmaceutical (BMRN - Free Report) . Shares have added about 0.2% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is BioMarin due for a pullback? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent drivers for BioMarin Pharmaceutical Inc. before we dive into how investors and analysts have reacted as of late.
Q1 Earnings Miss, Sales Beat EstimatesBioMarin reported first-quarter 2026 adjusted earnings per share of 76 cents, missing the Zacks Consensus Estimate of 94 cents. However, earnings declined 33% year over year. This was largely due to a $31 million charge tied to the company’s unsuccessful campaign to extend Naglazyme manufacturing capabilities, as well as higher operating expenses associated with the acquisition of Amicus Therapeutics.
Total revenues in the first quarter were $766.2 million, up 3% year over year. The figure beat the Zacks Consensus Estimate of $762.4 million.
Quarter in DetailNet product revenues totaled nearly $760.1 million, up 3.5% year over year on higher revenues from the company’s Enzyme Therapies, as well as Voxzogo.
Royalty and other revenues totaled $6.1 million, down about 42% year over year.
Voxzogo generated sales of $220 million, up 3% year over year. Per the company, this modest upside was expected, as it had previously experienced large orders for the drug in the fourth quarter of 2025. Despite this, Voxzogo sales beat the Zacks Consensus Estimate of $216 million.
BioMarin reports consolidated revenues from five products — Aldurazyme, Brineura, Naglazyme, Palynziq and Vimizim — under a single segment, “Enzyme Therapies.” Sales from this franchise increased 6% year over year to $514 million in the reported quarter, driven by higher product sales of Vimizim, Naglazyme and Brineura.
Palynziq injection sales totaled $90 million in the quarter, down 3% year over year, impacted by order timing in the United States. The drug’s sales missed the Zacks Consensus Estimate of $112 million.
Vimizim sales rose 12% year over year to $210 million, which beat the Zacks Consensus Estimate of $194 million.
Naglazyme sales increased 14% year over year to $130 million. Brineura generated sales of $47 million, up 18%.
Product revenues from Aldurazyme totaled $37 million, down 24% year over year.
Roctavian generated $3 million in sales compared with $11 million in the year-ago period. This downside is attributable to the company’s decision to voluntarily withdraw the product from the market.
Kuvan revenues declined 4% to $24 million due to generic competition.
2026 GuidanceIn April 2026, BioMarin announced that it completed the acquisition of Amicus Therapeutics for $4.8 billion. With this transaction, the company now expects to record total revenues in the range of $3.83-$3.93 billion in 2026, up from the previous guidance of $3.33-$3.43 billion. This new guidance, which includes contributions from Amicus’ marketed drugs, suggests growth of 20% at the mid-point of the range. Management expects to generate more than 55% of the overall 2026 revenues in the second half of the year.
While BioMarin reiterated its Voxzogo sales guidance to be in the range of $975 million to $1.03 billion, it now expects enzyme therapies revenues to be between $2.73 billion and $2.78 billion (previously: $2.23-$2.28 billion). Despite the decline in first-quarter sales, BMRN expects Palynziq sales to increase in 2026, primarily boosted by the drug’s recent approval in adolescents with PKU.
Since the company has accounted for the Amicus Therapeutics acquisition as a business combination, it will result in intangible amortization impacting GAAP results over future periods and will be excluded from Non???GAAP results. However, both these results will be impacted by interest expense related to the Amicus financing.
BioMarin has revised its adjusted earnings per share (EPS) to be in the range of $4.85-$5.05 for the year, down from the previous guidance of $4.95-$5.15. While the company expects about two-thirds of this figure to be recognized in the second half of the year, it projects the adjusted EPS in the second quarter to be modestly higher than in the first quarter.
How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a downward trend in estimates revision.
The consensus estimate has shifted -25.57% due to these changes.
VGM ScoresAt this time, BioMarin has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a score of A on the value side, putting it in the top 20% for value investors.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions looks promising. Notably, BioMarin has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry PlayerBioMarin belongs to the Zacks Medical - Biomedical and Genetics industry. Another stock from the same industry, Illumina (ILMN - Free Report) , has gained 16.9% over the past month. More than a month has passed since the company reported results for the quarter ended March 2026.
Illumina reported revenues of $1.09 billion in the last reported quarter, representing a year-over-year change of +4.8%. EPS of $1.15 for the same period compares with $0.97 a year ago.
For the current quarter, Illumina is expected to post earnings of $1.24 per share, indicating a change of +4.2% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Illumina. Also, the stock has a VGM Score of C.
In the latest close session, Oscar Health, Inc. (OSCR - Free Report) was down 1.64% at $16.17. The stock's change was less than the S&P 500's daily loss of 0.64%. Meanwhile, the Dow lost 0.59%, and the Nasdaq, a tech-heavy index, lost 0.59%.
Prior to today's trading, shares of the company had gained 34.64% outpaced the Finance sector's gain of 8.48% and the S&P 500's gain of 9.33%.
Market participants will be closely following the financial results of Oscar Health, Inc. in its upcoming release. The company plans to announce its earnings on May 6, 2026. The company is predicted to post an EPS of $1.21, indicating a 31.52% growth compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.89 billion, up 60.62% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $0.2 per share and revenue of $18.91 billion. These totals would mark changes of +111.83% and +61.62%, respectively, from last year.
Investors should also take note of any recent adjustments to analyst estimates for Oscar Health, Inc. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Oscar Health, Inc. is currently sporting a Zacks Rank of #3 (Hold).
Looking at valuation, Oscar Health, Inc. is presently trading at a Forward P/E ratio of 80.85. This valuation marks a premium compared to its industry average Forward P/E of 10.08.
The Insurance - Multi line industry is part of the Finance sector. This industry, currently bearing a Zacks Industry Rank of 152, finds itself in the bottom 38% echelons of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
Oscar Health, Inc. (OSCR - Free Report) closed the most recent trading day at $16.44, moving +1.67% from the previous trading session. This move outpaced the S&P 500's daily gain of 1.05%. Elsewhere, the Dow gained 0.69%, while the tech-heavy Nasdaq added 1.64%.
The company's stock has climbed by 34.41% in the past month, exceeding the Finance sector's gain of 7.36% and the S&P 500's gain of 8.59%.
The upcoming earnings release of Oscar Health, Inc. will be of great interest to investors. The company's earnings report is expected on May 6, 2026. The company's earnings per share (EPS) are projected to be $1.21, reflecting a 31.52% increase from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $4.89 billion, showing a 60.62% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $0.2 per share and revenue of $18.91 billion, which would represent changes of +111.83% and +61.62%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Oscar Health, Inc. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Oscar Health, Inc. presently features a Zacks Rank of #3 (Hold).
Looking at valuation, Oscar Health, Inc. is presently trading at a Forward P/E ratio of 79.53. This valuation marks a premium compared to its industry average Forward P/E of 10.
The Insurance - Multi line industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 145, which puts it in the bottom 41% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
Oscar Health, Inc. (OSCR - Free Report) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.
Shares of this company have returned +52.9% over the past month versus the Zacks S&P 500 composite's +12.2% change. The Zacks Insurance - Multi line industry, to which Oscar Health belongs, has gained 8.4% over this period. Now the key question is: Where could the stock be headed in the near term?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Earnings Estimate RevisionsRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
For the current quarter, Oscar Health is expected to post earnings of $1.21 per share, indicating a change of +31.5% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.
For the current fiscal year, the consensus earnings estimate of $0.2 points to a change of +111.8% from the prior year. Over the last 30 days, this estimate has remained unchanged.
For the next fiscal year, the consensus earnings estimate of $1.06 indicates a change of +430% from what Oscar Health is expected to report a year ago. Over the past month, the estimate has remained unchanged.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Oscar Health is rated Zacks Rank #3 (Hold).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue GrowthEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
In the case of Oscar Health, the consensus sales estimate of $4.89 billion for the current quarter points to a year-over-year change of +60.6%. The $18.91 billion and $21.16 billion estimates for the current and next fiscal years indicate changes of +61.6% and +11.9%, respectively.
Last Reported Results and Surprise HistoryOscar Health reported revenues of $2.81 billion in the last reported quarter, representing a year-over-year change of +17.3%. EPS of -$1.24 for the same period compares with -$0.62 a year ago.
Compared to the Zacks Consensus Estimate of $3.21 billion, the reported revenues represent a surprise of -12.49%. The EPS surprise was -47.62%.
Over the last four quarters, Oscar Health surpassed consensus EPS estimates three times. The company topped consensus revenue estimates just once over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Oscar Health is graded C on this front, indicating that it is trading at par with its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Oscar Health. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
Oscar Health, Inc. (OSCR - Free Report) ended the recent trading session at $18.46, demonstrating a +2.96% change from the preceding day's closing price. This change outpaced the S&P 500's 1.02% gain on the day. On the other hand, the Dow registered a gain of 1.62%, and the technology-centric Nasdaq increased by 0.89%.
Shares of the company have appreciated by 52.86% over the course of the past month, outperforming the Finance sector's gain of 7.2%, and the S&P 500's gain of 12.23%.
Analysts and investors alike will be keeping a close eye on the performance of Oscar Health, Inc. in its upcoming earnings disclosure. The company's earnings report is set to go public on May 6, 2026. It is anticipated that the company will report an EPS of $1.21, marking a 31.52% rise compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $4.89 billion, reflecting a 60.62% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $0.2 per share and revenue of $18.91 billion, which would represent changes of +111.83% and +61.62%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Oscar Health, Inc. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Oscar Health, Inc. currently has a Zacks Rank of #3 (Hold).
In the context of valuation, Oscar Health, Inc. is at present trading with a Forward P/E ratio of 88.18. This valuation marks a premium compared to its industry average Forward P/E of 9.52.
The Insurance - Multi line industry is part of the Finance sector. With its current Zacks Industry Rank of 144, this industry ranks in the bottom 41% of all industries, numbering over 250.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
When Centene Corporation reported its first-quarter results in late April, the numbers told two stories that seemed impossible to reconcile.
The St. Louis-based insurer had hemorrhaged customers, watching its Affordable Care Act marketplace membership collapse from 5.6 million to 3.6 million in just one year — a drop of roughly 2 million people. Yet the company posted $1.5 billion in net earnings, raised its full-year profit guidance, and saw its adjusted earnings per share jump to $3.37, well above what Wall Street expected.
How does an insurer make more money with fewer customers? The answer reveals a lot about who is still standing in the post-subsidy-cliff health insurance market — and who is paying for it.
The math of higher prices The simplest explanation is that Centene raised premiums faster than members walked away. After the enhanced ACA subsidies expired on January 1, premium hikes across the industry averaged 20 to 26 percent. Centene’s revenue actually grew year-over-year, climbing from $46.6 billion to $49.9 billion in the quarter, even as its marketplace book shrank by more than a third. When prices rise enough, fewer paying customers can still mean more money on the top line — and after a punishing 2025 in which insurers were squeezed by high medical spending and an unfavorable member mix, those rate hikes flowed almost directly to the bottom line.
Who left, and who stayed The more interesting story is in the composition of the customers who remained. When subsidies disappeared, the people most likely to drop coverage or downgrade to a cheaper Bronze plan were the young and healthy — exactly the customers insurers most want to keep. The people who held on tended to be older, sicker, and managing chronic conditions they couldn’t afford to leave untreated.
Insurers call this “adverse selection,” and you can see it directly in Centene’s numbers. The company’s commercial Health Benefit Ratio — the share of premium dollars paid out in medical claims — came in at 75.3 percent, slightly above expectations, reflecting what executives politely called “higher acuity” among remaining members. Translation: the people still in the pool are using more care. But because Centene priced its 2026 plans assuming exactly that, the math still worked.
An industry-wide pattern Centene isn’t alone. UnitedHealth, Elevance Health, and other major managed-care companies have leaned on the same playbook: raise prices, accept a smaller but more predictable membership base, and lean on the ACA’s risk-adjustment mechanism — which transfers funds from insurers with healthier members to those with sicker ones — to smooth out the rough edges. Analysts at the consultancy Wakely estimate that 14 percent of ACA enrollees missed their January 2026 premium payments, and the marketplace could shrink by as much as 26 percent by year-end. Wall Street, however, has largely cheered the discipline. After a brutal 2025, investors wanted to see margins — and they got them.
What it means for you For consumers, Centene’s quarter is a reminder that the insurance market and the household budget often move in opposite directions. The same conditions that produced record profits — premium increases, narrower benefits, sicker risk pools — are the ones squeezing your wallet. If you’re still on a marketplace plan, the practical takeaways are familiar but worth repeating: shop carefully during open enrollment rather than auto-renewing, run the numbers on Bronze plans paired with a Health Savings Account, and watch your modified adjusted gross income closely, since one extra dollar above the 400 percent federal poverty level threshold can wipe out your subsidy entirely.
The cliff was supposed to hurt insurers. So far, it’s hurting the rest of us.
NEW YORK--(BUSINESS WIRE)--Oscar Health, Inc. (“Oscar” or the “Company”) (NYSE: OSCR) announced today its financial results for the first quarter ended March 31, 2026.
“Oscar Health drove solid first-quarter performance with significant year-over-year improvements across our core metrics,” said Mark Bertolini, CEO of Oscar Health. “We are reaffirming our guidance and remain on track to significantly expand margins and achieve meaningful profitability in 2026. Consumers expect to shop for healthcare like everyday products – on choice, price, and value. Oscar’s exceptional technology, lifestyle products, and member experience deliver exactly that. The workforce is shifting, the individual market is resilient, and Oscar is leading the transition to a consumer-driven health economy.”
Oscar is reaffirming its full year 2026 outlook across all metrics as provided in its financial results press release dated February 10, 2026.
First Quarter 2026 Financial Highlights
Three Months Ended March 31,
(in thousands, except percentages)
2026
2025
Total revenue
$4,647,194
$3,046,263
Medical loss ratio (“MLR”)
70.5%
75.4%
Selling, general, and administrative (“SG&A”) expense ratio
15.2%
15.8%
Earnings from operations
$704,085
$297,123
Net income attributable to Oscar Health, Inc.
$678,996
$275,271
Adjusted EBITDA(1)
$727,072
$328,828
(1) Adjusted EBITDA is a non-GAAP measure. See “Key Operating and Non-GAAP Financial Metrics - Adjusted EBITDA” in this release for a reconciliation to net income, the most directly comparable GAAP measure, and for information regarding Oscar’s use of Adjusted EBITDA.
As of March 31,
Membership by Offering
2026
2025
Individual and Small Group (1)
3,174,489
2,021,484
Cigna+Oscar (2)
—
17,983
Total Members
3,174,489
2,039,467
(1) 2025 membership includes small group members. The Company no longer offers small group plans effective December 15, 2024.
(2) Represents total membership for our former co-branded partnership with Cigna. We did not renew the Cigna+Oscar Small Group arrangement after its initial term ended on December 31, 2024.
First Quarter 2026 Key Metrics and Non-GAAP Financial Metrics
Total revenue was approximately $4.6 billion for the first quarter of 2026 compared to $3.0 billion for the first quarter of 2025. The increase was driven by higher membership and rate increases, partially offset by an increase in the net risk adjustment transfer accrual. The medical loss ratio was 70.5% for the first quarter of 2026 compared to 75.4% for the first quarter of 2025. The decrease was primarily due to our disciplined pricing strategy, claims and risk adjustment seasonality from metal and new member mix, and favorable prior period reserve development. The Company had $68 million of favorable development in the first quarter of 2026 compared to $31 million of unfavorable development in the first quarter of 2025. The SG&A expense ratio was 15.2% for the first quarter of 2026 compared to 15.8% for the first quarter of 2025. The decrease was primarily due to greater fixed cost leverage and disciplined cost management, partially offset by the impact of higher risk adjustment as a percentage of premium. Earnings from operations was $704.1 million for the first quarter of 2026 compared to earnings from operations of $297.1 million for the first quarter of 2025. The significant increase reflects strong operating performance driven primarily by higher membership, rate increases, favorable prior period development, and fixed cost leverage. Net income attributable to Oscar Health, Inc. was $679.0 million, or $2.07 of diluted earnings per share, for the first quarter of 2026 compared to Net income attributable to Oscar Health, Inc. of $275.3 million, or $0.92 of diluted earnings per share, for the first quarter of 2025. Adjusted EBITDA was $727.1 million for the first quarter of 2026 compared to Adjusted EBITDA of $328.8 million for the first quarter of 2025. Quarterly Conference Call Details
Oscar will host a conference call to discuss its financial results today, May 6, 2026, at 8:00 a.m. (ET). Investors and other interested parties are invited to listen to the conference call by dialing 1-855-761-5600 and entering the following conference ID: 7768132. A live audio webcast will also be available via the Investor Relations page of Oscar’s website at ir.hioscar.com. A replay of the webcast will be available for on-demand listening shortly after the completion of the call, at the same web link, and will remain available for approximately 90 days.
Non-GAAP Financial Information
This release presents Adjusted EBITDA, a non-GAAP financial metric, which is provided as a complement to the results provided in accordance with accounting principles generally accepted in the United States of America (“GAAP”). A reconciliation of historical non-GAAP financial information to the most directly comparable GAAP financial measure is provided in the accompanying tables found at the end of this release. For more information regarding Adjusted EBITDA, please see “Key Operating and Non-GAAP Financial Metrics” below.
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact contained herein are forward-looking statements. These statements include, but are not limited to, statements about our financial outlook and estimates, including Total revenue, Medical loss ratio, SG&A expense ratio, Earnings (loss) from operations, and other financial performance metrics, and the related underlying assumptions, our business and financial prospects, including management’s plans and objectives for future operations, expectations and business strategy, such as our 2026 margins and profitability, and industry and market dynamics and expected trends. In some cases, you can identify forward-looking statements by terms such as “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “could,” “intends,” “targets,” “projects,” “contemplates,” “believes,” “estimates,” “forecasts,” “predicts,” “potential,” or “continues” or the negative of these terms or other similar expressions. Accordingly, we caution you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions, and uncertainties that are difficult to predict and generally beyond our control.
Although we believe that the expectations reflected in these forward-looking statements are reasonable as of the date made, there are or will be important factors that could cause our actual results to differ materially from those indicated in these forward-looking statements, including, but not limited to, the following: our ability to execute our strategy and manage our growth effectively (including our ability to successfully integrate strategic acquisitions); our ability to retain and expand our member base; our ability to accurately estimate our incurred medical expenses or overall market morbidity, or effectively manage our medical costs or related administrative costs; unanticipated results of, or changes to, risk adjustment programs or our estimates thereof; evolving federal or state laws or regulations (including any changes in the interpretation or enforcement of existing laws and regulations), including changes with respect to the Patient Protection and Affordable Care Act and any regulations enacted thereunder, the expiration of the enhanced Advanced Premium Tax Credits, the implementation of new program integrity rules, the potential funding of a cost-sharing reduction program, or other government actions, such as the imposition of tariffs; our ability to achieve or maintain profitability in the future; our ability to arrange for the delivery of quality care and maintain good relations with brokers and the physicians, hospitals, and other providers within and outside our provider networks; our ability to comply with ongoing, complex and evolving regulatory requirements, including capital reserve and surplus requirements and applicable performance standards; changes or developments in the regulation of health insurance markets in the United States; our, or any of our vendors’, ability to comply with laws, regulations, and standards related to the handling of information about individuals or applicable consumer protection laws, including as a result of our participation in government-sponsored programs; the ability of our health insurance and Health Maintenance Organization subsidiaries to make payments of dividends or distributions to us, including to fund our business strategy; our ability to utilize quota share reinsurance to meet our capital and surplus requirements and protect against downside risk on medical claims; adverse market conditions resulting in our investment portfolio suffering losses or reducing our ability to meet our financing needs; unfavorable or otherwise costly outcomes of lawsuits, audits, investigations, and other third party claims that may arise from the extensive laws and regulations to which we are subject; incurrence of data security breaches of our or our partners’ information and technology systems; heightened competition in the markets in which we participate; our ability to attract and retain qualified personnel; uncertainties associated with our utilization of certain artificial intelligence (“AI”) and machine learning models; our ability to detect and prevent material weaknesses or significant control deficiencies in our internal controls over financial reporting or other failure to maintain an effective system of internal controls; adverse publicity or other adverse consequences related to our dual class structure or “controlled company” status; and the other factors set forth under the caption “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2025, filed with the Securities and Exchange Commission (“SEC”), and our other filings with the SEC.
You are cautioned not to place undue reliance on any forward-looking statements made in this press release. Any forward-looking statement speaks only as of the date as of which it is made, and, except as otherwise required by law, we do not undertake any obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise. New factors emerge from time to time, and it is not possible for us to predict which will arise.
About Oscar Health
Oscar Health, Inc. is a leading healthcare technology company built on a full-stack platform and a relentless focus on member experience. Oscar Health helps make high-quality and affordable care more accessible for millions of people through Oscar’s Individual & Family plans and ICHRA solutions, +Oscar technology services, and Lucie Health Marketplace. Consumers benefit from better choice, deeper engagement, and connection to high-value clinical care.
Oscar Health, Inc.
Condensed Consolidated Statements of Operations
(unaudited)
Three Months Ended March 31,
(in thousands, except per share amounts)
2026
2025
Revenue
Premium
$
4,580,862
$
2,995,821
Investment income
60,614
46,112
Other revenues
5,718
4,330
Total revenue
4,647,194
3,046,263
Operating Expenses
Medical
3,229,857
2,259,651
Selling, general, and administrative
706,234
482,759
Depreciation and amortization
7,018
6,730
Total operating expenses
3,943,109
2,749,140
Earnings from operations
704,085
297,123
Interest expense
5,383
5,994
Other expenses (income)
(71
)
2,918
Earnings before income taxes
698,773
288,211
Income tax expense
19,750
12,705
Net income
679,023
275,506
Less: Net income attributable to noncontrolling interests
27
235
Net income attributable to Oscar Health, Inc.
$
678,996
$
275,271
Earnings per Share
Basic
$
2.28
$
1.10
Diluted
$
2.07
$
0.92
Weighted Average Common Shares Outstanding
Basic
298,184
251,279
Diluted
329,751
305,938
Oscar Health, Inc.
Condensed Consolidated Balance Sheets
(unaudited)
(in thousands, except per share amounts)
March 31, 2026
December 31, 2025
Assets
Current Assets:
Cash and cash equivalents
$
4,805,139
$
2,774,151
Short-term investments
1,994,644
1,216,461
Accounts receivable (net of allowance for credit losses of $7,171 and $7,226)
587,023
362,682
Receivables from CMS (1)
222,195
136,029
Reinsurance recoverable
142,487
99,750
Other current assets
25,817
24,331
Total current assets
7,777,305
4,613,404
Property, equipment, and capitalized software, net
94,194
88,350
Long-term investments
1,266,775
1,470,987
Restricted deposits
28,631
32,951
Other assets
122,741
119,719
Total assets
$
9,289,646
$
6,325,411
Liabilities and Stockholders' Equity
Current Liabilities:
Benefits payable
$
1,734,051
$
1,455,385
Payables to CMS (1)
4,723,244
2,730,095
Accounts payable and other liabilities
505,943
507,325
Unearned premiums
172,004
166,203
Reinsurance payable
5,112
3,579
Total current liabilities
7,140,354
4,862,587
Long-term debt
430,876
430,095
Other liabilities
51,368
51,994
Total liabilities
7,622,598
5,344,676
Commitments and contingencies
Stockholders' Equity
Class A common stock ($0.00001 par value; 825,000 thousand shares authorized, 263,552 thousand and 261,851 thousand shares outstanding as of March 31, 2026 and December 31, 2025, respectively)
3
3
Class B common stock ($0.00001 par value; 82,500 thousand shares authorized, 35,591 thousand and 35,838 thousand shares outstanding as of March 31, 2026 and December 31, 2025, respectively)
—
—
Treasury stock (315 thousand shares as of March 31, 2026 and December 31, 2025)
(2,923
)
(2,923
)
Additional paid-in capital
4,277,292
4,256,972
Accumulated deficit
(2,615,438
)
(3,294,434
)
Accumulated other comprehensive income
5,000
18,030
Total Oscar Health, Inc. stockholders' equity
1,663,934
977,648
Noncontrolling interests
3,114
3,087
Total stockholders' equity
1,667,048
980,735
Total liabilities and stockholders' equity
$
9,289,646
$
6,325,411
(1) Centers for Medicare & Medicaid Services
Oscar Health, Inc.
Condensed Consolidated Statements of Cash Flows
(unaudited)
Three Months Ended March 31,
(in thousands)
2026
2025
Cash Flows from Operating Activities:
Net income
$
679,023
$
275,506
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Deferred taxes
(6,204
)
36
Net realized gain on sale of financial instruments
(4
)
(119
)
Depreciation and amortization expense
7,018
6,730
Amortization of debt issuance costs
1,015
194
Stock-based compensation expense
15,969
24,975
Net accretion of investments
(7,077
)
(7,673
)
Change in provision for credit losses
(55
)
(8,650
)
Changes in assets and liabilities:
(Increase) / decrease in:
Receivables from CMS (1)
(86,165
)
(88,745
)
Accounts receivable
(224,288
)
(97,827
)
Reinsurance recoverable
(42,737
)
103,990
Other assets
5,344
(13,265
)
Increase / (decrease) in:
Benefits payable
278,666
108,848
Payables to CMS (1)
1,993,149
571,443
Accounts payable and other liabilities
(2,007
)
24,294
Unearned premiums
5,800
(3,492
)
Reinsurance payable
1,533
(17,703
)
Net cash provided by operating activities
2,618,980
878,542
Cash Flows from Investing Activities:
Purchase of investments
(914,842
)
(336,869
)
Sale of investments
35,000
15,761
Maturity and paydowns of investments
299,243
155,906
Purchase of property, equipment and capitalized software
(8,794
)
(9,026
)
Change in restricted deposits
(860
)
—
Net cash used in investing activities
(590,253
)
(174,228
)
Cash Flows from Financing Activities:
Payments of debt issuance costs
(4,739
)
—
Tax payments related to net settlement of share-based awards
—
(855
)
Proceeds from exercise of stock options
1,139
5,728
Net cash (used in) provided by financing activities
(3,600
)
4,873
Increase in cash, cash equivalents and restricted cash equivalents
2,025,127
709,187
Cash, cash equivalents, restricted cash and cash equivalents—beginning of period
2,804,123
1,551,118
Cash, cash equivalents, restricted cash and cash equivalents—end of period
4,829,250
2,260,305
Cash and cash equivalents
4,805,139
2,236,555
Restricted cash and cash equivalents included in restricted deposits
24,111
23,750
Total cash, cash equivalents and restricted cash and cash equivalents
$
4,829,250
$
2,260,305
Supplemental Disclosures:
Interest payments
$
4,177
$
154
Income tax payments
$
44
$
—
(1) Centers for Medicare & Medicaid Services
Key Operating and Non-GAAP Financial Metrics
We regularly review the following key operating and Non-GAAP financial metrics, to evaluate our business, measure our performance, identify trends in our business, prepare financial projections, and make strategic decisions. We believe these operational and financial measures are useful in evaluating our performance, in addition to our financial results prepared in accordance with GAAP.
Total Revenue
Total revenue includes premium revenue (net of risk adjustment transfers), investment income, and other revenues. We believe total revenue is an important metric to assess the growth of our business, as well as the earnings potential of our investment portfolio.
MLR
MLR is a metric used to calculate medical expenses as a percentage of net premiums before ceded quota share reinsurance. The impact of the federal risk adjustment program is included in the denominator of our MLR. We believe MLR is an important metric to demonstrate the ratio of our costs to pay for healthcare of our members to the net premium before ceded quota share reinsurance.
Three Months Ended March 31,
(in thousands, except percentages)
2026
2025
Net claims before ceded quota share reinsurance (A)
$
3,229,857
$
2,259,651
Net premiums before ceded quota share reinsurance (B)
$
4,580,862
$
2,995,821
Medical Loss Ratio (A divided by B)
70.5
%
75.4
%
SG&A Expense Ratio
The SG&A expense ratio reflects the Company’s selling, general, and administrative expenses, as a percentage of total revenue (net of risk adjustment transfers). We believe the SG&A expense ratio is useful to evaluate our ability to manage our overall selling, general, and administrative cost base.
Earnings (Loss) from Operations
Earnings (loss) from operations is the Company's total revenue less total operating expenses. We believe earnings (loss) from operations is an important primary metric for assessing operating performance.
Net Income (Loss) Attributable to Oscar Health, Inc.
Net income (loss) attributable to Oscar Health, Inc. is net earnings (loss) allocated to the Company after net income (loss) attributable to noncontrolling interests. It is a key indicator of the Company’s profitability and operational efficiency, allowing management to evaluate performance and make informed decisions on strategic planning, cost management, and resource allocation.
Adjusted EBITDA
Adjusted EBITDA is defined as Net income (loss) for the Company and its consolidated subsidiaries before interest expense, income tax expense (benefit), and depreciation and amortization, as further adjusted for stock-based compensation and other items that are considered unusual or not representative of underlying trends of our business, where applicable for the period presented. We present Adjusted EBITDA because we believe it is frequently used by securities analysts, investors, and other interested parties in the evaluation of companies in our industry. Adjusted EBITDA is a non-GAAP measure. Management believes that investors’ understanding of our performance is enhanced by including this non-GAAP financial measure as a reasonable basis for comparing our ongoing results of operations. We caution investors that amounts presented in accordance with our definition of Adjusted EBITDA may not be comparable to similar measures disclosed by our competitors, because not all companies and analysts calculate Adjusted EBITDA in the same manner.
By providing this non-GAAP financial measure, together with a reconciliation to the most comparable U.S. GAAP measure, Net income (loss), we believe we are enhancing investors’ understanding of our business and our results of operations, as well as assisting investors in evaluating how well we are executing our strategic initiatives. Adjusted EBITDA has limitations as an analytical tool, and should not be considered in isolation, or as an alternative to, or a substitute for, net income (loss) or other financial statement data presented in our Condensed Consolidated Financial Statements as indicators of financial performance.
Three Months Ended March 31,
(in thousands)
2026
2025
Net income
$
679,023
$
275,506
Interest expense
5,383
5,994
Other expenses (income)
(71
)
2,918
Income tax expense
19,750
12,705
Earnings from operations
704,085
297,123
Depreciation and amortization
7,018
6,730
Stock-based compensation(1)
15,969
24,975
Adjusted EBITDA
$
727,072
$
328,828
(1) Represents non-cash expenses related to equity-based compensation programs, which vary from period to period depending on various factors including the timing, number, and the valuation of awards. Additionally, these expenses are reported net of any stock-based compensation that has been capitalized for software development costs.
Appendix
Supplemental Financial Information
Premium
The Company records premium revenue net of premiums for reinsurance contracts accounted for under reinsurance accounting. The following table reconciles total reinsurance premiums ceded and reinsurance premiums assumed, which are included as components of total premium revenue in the Condensed Consolidated Statements of Operations:
Three Months Ended March 31,
(in thousands)
2026
2025
Direct policy premiums
$
6,030,275
$
3,349,671
Risk adjustment transfers
(1,442,811
)
(373,749
)
Reinsurance premiums ceded
(5,618
)
(2,542
)
Assumed premiums (1)
(984
)
22,441
Premium
$
4,580,862
$
2,995,821
(1) The Company did not renew the Cigna+Oscar Small Group arrangement with Cigna Health and Life Insurance Company after its initial term ended on December 31, 2024. Following termination, the Company has been providing transition and run-off services, and will continue to provide such services through December 31, 2026. The Company also continues to share in premiums and claims for plans sold or issued prior to December 15, 2024.
Medical Expenses
The Company records medical expenses net of reinsurance recoveries for reinsurance contracts accounted for under reinsurance accounting. The following table reconciles total medical expenses to the amount presented in the Condensed Consolidated Statements of Operations:
Three Months Ended March 31,
(in thousands)
2026
2025
Direct claims incurred
$
3,293,837
$
2,268,284
Ceded reinsurance claims
(62,684
)
(31,012
)
Assumed reinsurance claims
(1,296
)
22,379
Medical expenses
$
3,229,857
$
2,259,651
Risk Adjustment
The risk adjustment programs in the markets the Company serves are administered federally by CMS and are designed to mitigate the potential impact of adverse selection and provide stability for health insurers. Under these programs, each plan is assigned a risk score based upon demographic information and current year claims information related to its members. Plans with lower than average risk scores generally pay into the pool, while plans with higher than average risk scores generally receive distributions. The following table provides a rollforward of the Company’s beginning and ending risk adjustment receivable and payable balances for the three months ended March 31, 2026 and 2025:
Three Months Ended March 31, 2026
Three Months Ended March 31, 2025
(in thousands)
Risk
Adjustment
Receivable
Risk
Adjustment
Payable
Net Risk
Adjustment
Payable
Risk
Adjustment
Receivable
Risk
Adjustment
Payable
Net Risk
Adjustment
Payable
Beginning balance (1)
$
56,066
$
2,587,700
$
2,531,634
$
64,779
$
1,558,341
$
1,493,562
Change in accrual:
Current year
$
16,112
$
1,374,310
$
1,358,198
$
25,666
$
306,870
$
281,204
Prior years (2)
5,132
89,745
84,613
(3,319
)
89,240
92,559
Change in accrual, net
$
21,244
$
1,464,055
$
1,442,811
$
22,347
$
396,110
$
373,763
Ending balance:
Current year
$
16,112
$
1,374,310
$
1,358,198
$
25,666
$
306,870
$
281,204
Prior years
61,198
2,677,445
2,616,247
61,460
1,647,581
1,586,121
Ending balance
$
77,310
$
4,051,755
$
3,974,445
$
87,126
$
1,954,451
$
1,867,325
(1) The table includes risk adjustment data validation (“RADV”) receivables and payables. The balance at the beginning of each year presented pertains to prior policy years.
(2) Includes immaterial payments for prior policy years.
Health insurer Oscar Health swung to a $679 million first quarter profit – the highest in company history – as its health plan membership jumped more than 50% and medical costs eased, the company said Wednesday May 6.
Oscar Health
Health insurer Oscar Health swung to a $679 million first quarter profit – the highest in company history – as its health plan membership jumped more than 50% and medical costs eased.
Oscar, which grew to 3.2 million health plan members as one of the nation’s largest providers of individual coverage under the Affordable Care Act, on Wednesday reported net income of $679 million, or $2.07 per diluted share. That compares to $275.3 million, or 92 cents in the first quarter of 2025.
Founded in 2012, Oscar had yet to turn a profit for a full year until 2024, but Mark Bertolini -- the former chief executive officer of Aetna who was tapped as Oscar’s top executive in March of 2023 and his team – have delivered on their promises as they remain bullish on the individual health insurance market even as rivals are retreating. This year’s first quarter profit was several times what the company made last year and the year before.
Oscar’s revenue rose 53% to $4.6 billion from $3 billion in the year-ago quarter thanks to the 56% increase in health plan enrollment from 2 million last year after Oscar expanded sales of its health insurance products into new markets for this year.
Oscar now offers coverage in 573 counties across 93 metropolitan markets after expanding into two new states - Alabama and Mississippi - for this year, putting the company’s Obamacare products in 20 U.S. states for the 2026 health benefit year.
“Oscar Health drove solid first-quarter performance with significant year-over-year improvements across our core metrics,” Bertolini said Wednesday in a statement accompanying earnings. “We are reaffirming our guidance and remain on track to significantly expand margins and achieve meaningful profitability in 2026.”
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Like other health insurers, Oscar’s medical costs eased in the first quarter and were much lower than rivals that had medical loss ratios north of 85%. The medical loss ratio, which is the percentage of premium revenue that goes toward medical costs, was 70.5% for the first quarter of 2026 compared to 75.4% for the first quarter of 2025.
Oscar’s medical loss ratio was 95.4% in the fourth quarter of last year. That compares to 88.1% in the fourth quarter of 2024.
Health insurers historically have wanted that benefit expense ratio percentage in the mid to low 80s but that’s been largely unachievable for most other health insurers for the last year or so in part because insurers say Americans, particularly older adults, have a pent up demand for healthcare following the Covid-19 pandemic when many patients delayed treatment.
“The decrease was primarily due to our disciplined pricing strategy, claims and risk adjustment seasonality from metal and new member mix, and favorable prior period reserve development,” Oscar said in its earnings report.
Oscar Health, Inc. (OSCR - Free Report) came out with quarterly earnings of $2.07 per share, beating the Zacks Consensus Estimate of $1.21 per share. This compares to earnings of $0.92 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +71.07%. A quarter ago, it was expected that this company would post a loss of $0.84 per share when it actually produced a loss of $1.24, delivering a surprise of -47.62%.
Over the last four quarters, the company has surpassed consensus EPS estimates three times.
Oscar Health, which belongs to the Zacks Insurance - Multi line industry, posted revenues of $4.65 billion for the quarter ended March 2026, missing the Zacks Consensus Estimate by 5.02%. This compares to year-ago revenues of $3.05 billion. The company has not been able to beat consensus revenue estimates over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Oscar Health shares have added about 24.8% since the beginning of the year versus the S&P 500's gain of 6%.
What's Next for Oscar Health?While Oscar Health has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Oscar Health was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.20 on $4.78 billion in revenues for the coming quarter and $0.20 on $18.91 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Insurance - Multi line is currently in the top 37% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the same industry, TWFG, Inc. (TWFG - Free Report) , is yet to report results for the quarter ended March 2026. The results are expected to be released on May 7.
This company is expected to post quarterly earnings of $0.20 per share in its upcoming report, which represents a year-over-year change of +25%. The consensus EPS estimate for the quarter has been revised 1.5% lower over the last 30 days to the current level.
TWFG, Inc.'s revenues are expected to be $66.63 million, up 23.8% from the year-ago quarter.
Oscar Health (OSCR) delivered a standout Q1 2026, with $4.65B revenue, 52.7% YoY growth, and a 70.5% medical loss ratio. I reaffirm my Strong Buy rating and raise the 2026 price target to $30, citing robust execution and guidance reaffirmation. OSCR's SG&A leverage and technology platform drove operating efficiency, with Q1 Adjusted EBITDA at $727.1M and SG&A ratio likely below 15.8%.
Investors looking for stocks in the Insurance - Multi line sector might want to consider either M?nchener R?ckversicherungs-Gesellschaft (MURGY - Free Report) or Oscar Health, Inc. (OSCR - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, both M?nchener R?ckversicherungs-Gesellschaft and Oscar Health, Inc. are sporting a Zacks Rank of #1 (Strong Buy). This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. However, value investors will care about much more than just this.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
MURGY currently has a forward P/E ratio of 2.72, while OSCR has a forward P/E of 84.61. We also note that MURGY has a PEG ratio of 0.47. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. OSCR currently has a PEG ratio of 2.78.
Another notable valuation metric for MURGY is its P/B ratio of 2.04. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, OSCR has a P/B of 6.33.
Based on these metrics and many more, MURGY holds a Value grade of A, while OSCR has a Value grade of D.
Both MURGY and OSCR are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that MURGY is the superior value option right now.
How can Oscar Health (OSCR +2.31%), a small insurer in the ACA market, upend the healthcare giants? I sat down with CEO Mark Bertolini to discuss Oscar's growth plans and how it's different from the traditional insurers. In this conversation, we cover how Oscar is playing the role of the underdog, why the network is a differentiator, and how technology plays a role in the consumer experience.
*Stock prices used were end-of-day prices of May 21, 2026. The video was published on May 21, 2026.
Travis Hoium has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Travis Hoium is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.
Oscar Health, Inc. (OSCR - Free Report) is looking like an interesting pick from a technical perspective, as the company reached a key level of support. Recently, OSCR's 50-day simple moving average crossed above its 200-day simple moving average, known as a "golden cross."
There's a reason traders love a golden cross -- it's a technical chart pattern that can indicate a bullish breakout is on the horizon. This kind of crossover is formed when a stock's short-term moving average breaks above a longer-term moving average. Typically, a golden cross involves the 50-day and the 200-day moving averages, since bigger time periods tend to form stronger breakouts.
Golden crosses have three key stages that investors look out for. It starts with a downtrend in a stock's price that eventually bottoms out, followed by the stock's shorter moving average crossing over its longer moving average and triggering a trend reversal. The final stage is when a stock continues the upward climb to higher prices.
A golden cross contrasts with a death cross, another widely-followed chart pattern that suggests bearish momentum could be on the horizon.
Shares of OSCR have been moving higher over the past four weeks, up 34.8%. Plus, the company is currently a #3 (Hold) on the Zacks Rank, suggesting that OSCR could be poised for a breakout.
The bullish case solidifies once investors consider OSCR's positive earnings outlook. For the current quarter, no earnings estimate has been cut compared to 3 revisions higher in the past 60 days. The Zacks Consensus Estimate has increased too.
Given this move in earnings estimates and the positive technical factor, investors may want to keep their eye on OSCR for more gains in the near future.
Top investors like Warren Buffett consistently say their favorite stocks are ones they can hold forever. If you have a high-quality business compounding value, it is highly favorable for you and your retirement account to sit back and let the wealth pile up. $10,000 invested in a stock yielding a 20% annual return will grow to just $25,000 after five years. But if you hold that same stock for 20 years, it will be worth $383,000. That could be much more meaningful to your retirement savings.
With this in mind, here are three high-quality disruptors I believe are great holds for the next 20 years, and why investors should consider buying today.
Image source: Getty Images.
1. A storied entertainment brand The most important factor in finding a stock to hold for 20 years is business durability. Perhaps no brand has been more durable in entertainment over the last few decades than Nintendo (NTDOY 0.27%). The family-friendly giant focused on gaming continues to develop high-quality content and remains the leading video game console seller worldwide.
It recently launched the Nintendo Switch 2 as its new flagship gaming hardware for the next five to 10 years, and it is selling like hotcakes. Twenty million units were sold last fiscal year ending in March, with close to the same projected in its second year at retail.
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Nintendo's business model works by selling gaming hardware to players at a thin profit margin, then making up the difference through high-margin game sales from first-party brands like Mario, Zelda, and Pokémon. The same playbook is being followed with the Nintendo Switch 2. Mario Kart World has sold 15 million copies, while a new Pokémon game sold 2.2 million copies within just four days after launch.
I expect the same playbook to work 20 years from now. With the stock down 54% from its highs amid fears over memory chips, Nintendo looks like a stock experiencing short-term pain that will deliver long-term gains for any investor who buys now.
2. The disruptor taking over the health insurance market No industry is perhaps more durable than healthcare. Everyone around the world needs some level of healthcare coverage, making the health insurance market a staple of the United States economy. Even if customers dislike their health insurance provider, they still have to pay premiums each and every year.
Oscar Health (OSCR +2.31%) is a new health insurance provider that aims to delight customers. Instead of bogging down users in confusing paperwork and unclear expenses, Oscar has built a cloud-based health insurance platform from the ground up that is much easier for all stakeholders to use.
With this technology advantage, Oscar Health has attacked legacy players in the individual payor market from the Affordable Care Act marketplace. Through consistent nationwide expansion of its coverage, the business has gained more and more individual health insurance customers each year. Last quarter, it hit 3.2 million paying customers, up from 1 million in Q1 2022.
These customer gains are helping Oscar Health scale up and finally turn a profit. This year, it is guiding for $19 billion in revenue and $250 million to $450 million in operating earnings. Compared to its current market cap of $6.8 billion, the stock looks mighty cheap if you believe it can keep stealing market share in health insurance in the coming years.
ADYEY PE Ratio data by YCharts
3. An underrated presence in payments processing No matter how the economy evolves, retailers will need to process payments from customers worldwide, both offline and online. Adyen (ADYEY 3.99%) believes it has the best payments infrastructure for global corporations, which is why it is gaining market share in payments processing.
It touts customers such as Spotify and Uber with complex processing needs, where Adyen can deliver the best execution -- meaning the highest percentage of payments that actually succeed at checkout -- compared to the competition.
The financial results show this outperformance and market share gains. In Q1 2026, Adyen's processed volume grew 21% year over year, with revenue growing 20% in constant currency. From 2016 through 2025, its revenue has grown by more than 10-fold as more enterprises adopt its checkout terminal for retail payments.
Right now, Adyen's stock is down in the gutter, off 66% from all-time highs, with a price-to-earnings ratio (P/E) of 29. With plenty of room to keep growing market share and a durable addressable market in retail payments, Adyen looks like a great opportunity for investors right now.
The conventional wisdom holds that a stock that trades up more than 50% in less than six months is overvalued. But sometimes the best stocks are recent winners that Wall Street is only beginning to uncover, with fundamental business improvements that remain undervalued relative to their long-term growth trajectories.
This is an apt description for healthcare disruptor Oscar Health (OSCR +2.31%). Oscar Health is a health insurer stealing market share with its technology-focused offering and is beginning to show a profit inflection. Here's why shares -- up 53% so far this year -- are still too cheap to ignore.
Image source: Getty Images.
Market share gains and rapid growth When considering basic health insurance, one might argue that it is a commodity. All the insurer is doing is providing blanket coverage across various health providers in the local area, subject to stringent regulations such as Medicare and the Affordable Care Act (ACA) marketplace.
Where Oscar Health has made inroads, from a standing start a decade ago, is through a better customer experience across everything outside traditional health services. It has built a cloud-based software solution from the ground up, complimentary telehealth for all users, and transparent pricing compared to the competition. It may take years for Oscar to catch up to legacy competitors like UnitedHealth in terms of doctor and care coverage across the United States, but it is already light-years ahead in the rest of the customer experience.
This is why Oscar Health's total number of members paying for insurance has grown rapidly in recent years, hitting 3.2 million at the end of Q1 2026. Right now, the company focuses only on the ACA marketplace, making this growth even more impressive. In Q1 2021, Oscar had just over 500,000 paying insurance members.
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The path to operating leverage is clear What kept Oscar Health's stock in the gutter last year was rising healthcare utilization among its members, which exceeded analyst projections. This was an issue for all health insurers in 2025, leading to a decline in profitability. In 2025, Oscar Health had a $400 million operating loss due to these rising costs.
At the same time, the United States government debated last year whether to eliminate extended tax subsidies for ACA marketplace payors, which increased the pool of citizens who could afford individual health insurance, a boost for Oscar Health. As the government let these subsidies expire amid a tough year for Oscar, the stock began to fall.
It turns out that Oscar Health's nimble management had already prepared health insurance plan pricing for subsidy experimentation while also being conservative in projecting healthcare utilization among members to ensure 2025 did not repeat in 2026.
Q1 2026 results proved the strategy's intelligence. Oscar Health generated $700 million in operating income in the first quarter, gaining market share while also achieving operating leverage. It expects typical seasonality in health insurance to lower its 2026 annual operating earnings to $250 million-$450 million, but that would still be a record high for the business. If the company can keep adding new members, it will gain greater nationwide scale, enabling stronger earnings growth in the years ahead.
Data by YCharts.
Why Oscar Health stock is too cheap to ignore After jumping up 53% this year, Oscar Health trades at a market cap of $6.63 billion. This is still cheap compared to what the business can earn in a few years. At the high end of its 2026 guidance, the company expects revenue of $19 billion and operating income of $450 million, resulting in a profit margin of just 2.3%.
More scale in the years ahead should enable greater expansion of profit margins. Remember that $30 billion in premium revenue and just a 3% profit margin is $900 million in annual operating income, or less than 10x its current market cap. Given the size of the healthcare industry in the United States, premium revenue could grow well beyond $30 billion over the long term.
This makes Oscar Health stock still cheap despite its 50% year-to-date gain.
When looking for multibagger stocks, it is best to hunt in industries with huge addressable markets. Even if a company is the best brand in a sector, but that sector only has $100 million in annual spending and isn't growing, there will be a limit to the company's addressable market unless it can invent new products to serve customers.
One sector where size is not an issue is healthcare, specifically health insurance. Health insurance premiums in the United States are estimated at $1.6 trillion per year, and spending is set to increase faster than GDP due to the country's aging population.
Oscar Health (OSCR +2.31%) is a magnificent healthcare stock taking market share through its technology-focused health insurance offering. Here's why the rapid grower is set to deliver market-beating returns for years to come.
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Gaining share in a massive market The health insurance market changed in 2010 with the enactment of the Affordable Care Act (ACA), which created marketplaces that allow individuals to purchase their own health insurance through a regulated platform each year.
It got off to a bumpy start, but individual payors through the ACA now number around 20 million, making it a meaningful portion of the sector. Oscar has been a big part of this growth with its sole focus on the individual payor market today. Total paying members through Oscar Health plans reached 3.2 million last quarter, an over 50% boost from 2 million in the same quarter a year ago. This is growing much faster than the overall ACA market, indicating that Oscar Health is gaining significant market share.
Why? Because Oscar Health offers a better customer experience with its cloud-first digital platform, saving time and headaches (literally) for its health insurance stakeholders. Now, it is making a big push to transform the employer-led health insurance market to individual contribution plans. These plans allow employers to subsidize employee health insurance, but instead of putting everyone in homogeneous plans, people can use the funds to shop on the ACA marketplace, potentially choosing Oscar insurance.
Management sees a huge addressable market for individual employer-funded plans, potentially reaching 75 million small and mid-sized businesses. With only 3.2 million members last quarter, Oscar Health is guiding for $19 billion in revenue at the high end for 2026. If it can reach 10 million or more customers, that could mean $50 billion or more in annual premiums, depending on where healthcare inflation heads in the years ahead.
Image source: Getty Images.
The path to consistent profitability is technology efficiency Health insurers are highly regulated under the ACA marketplace, with a maximum loss ratio of 80% each year, leaving 20% of their premium revenue for overhead costs and profitability.
Through its growing scale and technology-driven efficiencies, Oscar Health has consistently reduced overhead costs as a percentage of revenue, which should lead to a nice profit inflection in 2026. It generated $700 million in operating income last quarter, with expectations of $250 million to $450 million in operating earnings for all of 2026 due to seasonality in healthcare utilization costs.
Over the long term, we should see continued progress in lowering its overhead costs as a percentage of revenue through greater nationwide scale. Combined with rapid revenue growth -- premium revenue is up 2,770% since 2021 -- Oscar Health can see a huge profit increase in the years ahead. A 5% profit margin on $50 billion in revenue is $2.5 billion in earnings, which could occur within the next five years.
OSCR Revenue (TTM) data by YCharts
Why Oscar Health can deliver market-beating returns Oscar Health stock is set up to crush the market in the years ahead if it simply keeps up its path of profit margin expansion and market share gains in health insurance payors.
Right now, the stock trades at a market cap of $6.6 billion. That results in a price-to-earnings multiple of 15, based on the high end of its 2026 earnings guidance, but, more importantly, just 2.5 times my profit assumption for when Oscar Health reaches $50 billion in revenue. That will not happen in 2026, but patient investors should be able to watch a huge profit inflection unfold over the decade ahead, leading to potentially massive stock price appreciation for investors who hold Oscar Health stock and never sell.
Deciding between a high-growth challenger and a stable industry giant is a classic investor dilemma. You might be weighing Oscar Health (OSCR +2.31%) against UnitedHealth Group (UNH 1.24%) for your 2026 portfolio.
Oscar Health focuses on tech-enabled individual insurance plans, aiming for agility and digital member engagement. UnitedHealth provides insurance, technology, and clinical services to over 151 million people across the globe. Comparing these two shows how different business models tackle the complexities of the U.S. health system today.
The case for Oscar HealthOscar Health operates primarily among healthcare stocks in the U.S. individual coverage market. It provides individual and family plans, alongside technology services such as Lucie Health Marketplace, designed to simplify the member experience. Since nearly 93% of its premiums come from the Centers for Medicare & Medicaid Services, customer concentration like this adds a layer of risk to the business.
For FY 2025, revenue reached approximately $11.7 billion, representing growth of roughly 27.5% compared to the prior year. This trend reflects a significant increase in membership, which reached nearly 3.2 million individuals by early 2026. Despite this revenue expansion, the company reported a net loss of nearly $443.2 million, resulting in a net margin of approximately -3.8% for the period.
As of its December 2025 balance sheet, the debt-to-equity ratio is roughly 0.4x. This ratio measures total debt relative to shareholder equity, indicating the company maintains a conservative amount of leverage. The current ratio is approximately 0.9x, which measures short-term liquidity by comparing current assets to current liabilities, suggesting tighter liquidity since it is below 1.0. The company also generated roughly $1.1 billion in free cash flow, which is cash from operations minus capital expenditures.
The case for UnitedHealthUnitedHealth Group is a massive healthcare conglomerate serving approximately 151 million people through a diverse range of insurance and clinical services. The company operates through two primary segments, UnitedHealthcare for insurance and Optum for health technology and value-based care. Approximately 44% of its consolidated revenue comes from the Centers for Medicare & Medicaid Services, which adds a layer of concentration risk to its business model.
In FY 2025, the company generated nearly $447.6 billion in revenue, which is an increase of roughly 11.8% over the previous year. This growth is driven by expanding service offerings and a workforce of more than 390,000 employees. Net income for the period was approximately $12.1 billion, resulting in a net margin of nearly 2.7% for the fiscal year.
Based on the December 2025 balance sheet, the debt-to-equity ratio is approximately 0.8x. This figure illustrates how much the company uses debt to finance its operations relative to the value owned by shareholders. The current ratio is roughly 0.8x, indicating potential liquidity constraints since the value is below 1.0. The company generated nearly $16.1 billion in free cash flow, representing the cash remaining after the business pays for its necessary capital expenditures.
Risk profile comparisonOscar Health faces significant risks from changes to the Affordable Care Act, particularly regarding federal funding and premium tax credits. It must also accurately estimate medical expenses, as failing to predict costs or member health needs can hurt financial results. Heightened competition from regional insurers and national carriers like Centene also poses a constant threat to its market share.
For a company of the scale of UnitedHealth, managing medical costs effectively is vital to maintaining its net margin. Cybersecurity is another major concern, as any data breach involving sensitive patient information could lead to heavy fines and operational shutdowns. The company also faces significant regulatory risks and competition from other large providers like The Cigna Group in its various service markets.
Valuation comparisonUnitedHealth currently trades at a lower Forward P/E than its rival, though Oscar Health offers a more modest P/S ratio relative to its high growth.
MetricOscar HealthUnitedHealthSector BenchmarkForward P/E25.8x20.6x27.5xP/S ratio0.5x0.8xn/aSector benchmark uses the SPDR XLV sector ETF.
Valuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.
Investors choosing between Oscar Health and UnitedHealth are really making a choice between stability and growth. The two companies operate in the same industry, but they represent very different investment opportunities.
Oscar Health is a relative newcomer to the insurance industry. It launched in 2014 and went public in 2021. Because Oscar is still a relatively young public company, investors have a much shorter track record to evaluate than they do with established insurers. It’s considered a “disruptor,” focusing on features like telemedicine and virtual care, as well as offering reward systems for healthy behavior, all accessed via a user-friendly app. It’s considered higher risk than established insurers, but as a small and growing company, the potential upside is compelling.
UnitedHealth, on the other hand, is a massive, stable market leader. It was founded in 1977 and went public in 1984, so it has a long track record of delivering impressive returns for shareholders. Its growth strategies include investments in Medicare Advantage, home healthcare, and hospice. It has faced significant challenges recently over allegations of fraud, data breaches, litigation over the denial of care, and more. This may affect its stock valuation.
As a somewhat conservative investor, one would expect me to choose UnitedHealth. It's a tough call for me, but despite UNH’s wealth-generating track record, I'm drawn to Oscar Health's potential despite the higher risk. And goodness knows the health insurance industry could use a disruptor or two.
From a technical perspective, Oscar Health, Inc. (OSCR - Free Report) is looking like an interesting pick, as it just reached a key level of support. OSCR recently overtook the 20-day moving average, and this suggests a short-term bullish trend.
The 20-day simple moving average is a popular trading tool. It provides a look back at a stock's price over a 20-day period, and is beneficial to short-term traders since it smooths out price fluctuations and provides more trend reversal signals than longer-term moving averages.
Like other SMAs, if a stock's price is moving above the 20-day, the trend is considered positive. When the price falls below the moving average, it can signal a downward trend.
Over the past four weeks, OSCR has gained 23.7%. The company is currently ranked a Zacks Rank #3 (Hold), another strong indication the stock could move even higher.
The bullish case solidifies once investors consider OSCR's positive earnings estimate revisions. No estimate has gone lower in the past two months for the current fiscal year, compared to 3 higher, while the consensus estimate has increased too.
Investors should think about putting OSCR on their watchlist given the ultra-important technical indicator and positive move in earnings estimate revisions.
The Conference CatalystThe Q1 FoundationOscar Shares Edge HigherOSCR Price Action: At the time of publication, Oscar shares are trading 4.81% higher at $28.53, according to data from Benzinga Pro.
Image via Shutterstock
This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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The investment narrative surrounding nuclear energy has shifted dramatically, from a traditional defensive utility play to a high-growth thematic opportunity. While global decarbonization goals and energy security initially catalyzed this shift, the massive power requirements of AI data centers have rapidly accelerated the build-out. Signaling that AI is a long-term tailwind for the nuclear investment case, three recently announced major partnerships pair advanced nuclear developers with AI computing and infrastructure giants.
Key Takeaways The explosive power demands of AI data centers are accelerating advanced nuclear infrastructure deployment through three high-profile collaborations. Technology companies are increasingly partnering with small modular reactor (SMR) developers to secure 24/7 carbon-free baseload energy. The Range Nuclear Renaissance Index ETF (NUKZ) offers financial advisors a comprehensive vehicle to capture this thematic tech-energy convergence. The Critical Intersection of AI and Nuclear Advanced reactor developer Oklo (OKLO) partnered with the Idaho National Laboratory (INL) to employ AI-enabled reactor design for advanced nuclear systems. This collaboration leverages AI to accelerate development, improve engineering efficiency, as well as support progress on advanced systems, according to the statement.
Concurrently, Terrestrial Energy (IMSR) and Riot Platforms (RIOT) launched a collaboration focused on assessing the integration of Terrestrial’s molten-salt reactor plant with data center operations. This joint effort aims to evaluate scaling optimized configurations of Terrestrial’s reactor and data center operations at candidate sites using Riot’s completed data center Basis of Design optimized for large-scale hyperscale tenants.
Additionally, NANO Nuclear Energy (NNE) signed a strategic Memorandum of Understanding (MOU) with Super Micro (SMCI) to explore optimized power solutions for next-generation AI data centers.
Furthermore, these corporate alliances underline how critical baseline energy has become to the future of high-performance computing, reinforcing the real-world demand for small modular reactors (SMRs).
For investors, the Range Nuclear Renaissance Index ETF (NUKZ) serves as a comprehensive, single-ticker vehicle to gain diversified access to this opportunity. Additionally, NUKZ tracks the full nuclear value chain, encompassing advanced reactor developers, fuel suppliers, utilities, and industrial service providers.
Looking for nuclear insights in your inbox? Subscribe here to keep a pulse on nuclear investing through our weekly research.
For more news, information, and analysis, visit the Nuclear Energy Content Hub.
vettafi.com is owned by VettaFi LLC (“VettaFi”). VettaFi is the index provider for NUKZ, for which it receives an index licensing fee. However, NUKZ is not issued, sponsored, endorsed, or sold by VettaFi. VettaFi has no obligation or liability in connection with the issuance, administration, marketing, or trading of NUKZ.
NNE stock is moving. See the chart and price action here. James Walker, CEO of NANO Nuclear, told Benzinga that the rapid expansion of AI infrastructure is changing the way companies think about energy, compute and data center development.
"AI is becoming an energy story as much as a technology story," Walker said. "The conversation is shifting from ‘how much compute can we build?' to ‘where does the power come from?'"
AI Power Demand AI power demand sits at the center of NANO Nuclear's collaboration with Super Micro, which Walker said could eventually support a more integrated approach to AI data center development.
Rather than treating power procurement and compute infrastructure as separate challenges, the companies are exploring a model where both are planned together from the start.
"AI infrastructure and power infrastructure are becoming inseparable," Walker said. "Historically, a data center developer would secure land, build the facility, and then hope the grid could support the project in time. That model is starting to break down as AI power demand accelerates."
Walker said AI data centers have become a focus for NANO Nuclear because of the scale and reliability requirements involved. Many facilities require massive amounts of continuous electricity, and grid constraints are already forcing some operators to wait years for sufficient capacity.
"The speed at which AI infrastructure is expanding has created a very real conversation around whether power availability itself becomes the limiting factor for growth," Walker said.
Microreactors for Data CentersNANO Nuclear sees microreactors as a potential solution for developers seeking dependable, on-site power.
Walker said renewables and batteries have roles to play, but intermittency and duration limits can make them difficult fits for hyperscale AI workloads that require near-constant uptime.
Natural gas can provide reliable power, but faces emissions concerns, fuel price volatility and infrastructure limitations.
"Microreactors are compelling because they can provide stable, carbon-free baseload power directly on-site, independent of grid congestion, while also reducing exposure to many of those infrastructure bottlenecks," Walker said.
The image below is a rendering of NANO’s Kronos MMR nuclear microreactor:
A New Compute + Power ModelThe Super Micro collaboration could eventually point toward a bundled "compute plus power" model for AI customers.
Walker said combining nuclear power systems with server infrastructure, cooling systems and deployment expertise could create a more streamlined path for companies building new AI campuses.
"From the customer's perspective, that could eventually evolve into a far more streamlined solution where the power source and the AI infrastructure are designed as one coordinated platform rather than two separate projects competing against each other on timelines," Walker said.
While AI data centers are a major focus, Walker said NANO Nuclear continues to see opportunities across remote communities, mining, defense, industrial operations and critical infrastructure.
Still, the Super Micro partnership gives NANO a clearer opening into the AI infrastructure market.
"For us, the collaboration with Supermicro represents more than just a technology partnership," Walker said.
"It's an opportunity to position NANO inside the broader AI infrastructure ecosystem early, before this market fully matures."
NNE Price Action: Nano Nuclear Energy shares were up 6.50% at $26.71 at the time of publication on Friday, according to Benzinga Pro data.
Cover image: Piotr Swat / Shutterstock
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Picture a nuclear power plant -- the conventional kind, with huge bell-shaped cooling towers, a domed building containing the reactor core, and so many pipes, generators, and electricity lines. Your eyes don't know what to look at first.
Image source: Getty Images.
Now, picture that sprawling power plant condensed into a box that can fit on the back of a semi truck. That is the kind of portable microreactor Nano Nuclear Energy (NNE 7.62%) is trying to commercialize.
A portable nuclear reactor is exciting for two reasons. First, it can be transported pretty much anywhere, from remote military bases to data centers. Second, nuclear energy is zero-carbon; it doesn't emit greenhouse gases.
This could all make Nano an obvious fit for AI data centers, which need clean, reliable, always-on power. It's no surprise that Nano has recently entered a memorandum of understanding with Super Micro Computer to develop microreactors for data centers.
Nano is currently moving through the Nuclear Regulatory Commission's (NRC's) regulatory process for its microreactor design. The company recently celebrated a major win: Its construction permit for the deployment of a microreactor at the University of Illinois Urbana-Champaign was accepted by the NRC. While it hasn't quite made it out of the NRC's process yet, it now anticipates breaking ground on its first reactor in the second half of 2027.
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A $10,000 investment in Nano would be risky -- very, very risky -- and could result in a significant loss. It could also lead to a life-changing sum of money. A tenfold gain from today's price would raise its market cap to about $12 billion, turning that $10,000 into a six-figure sum.
That's not impossible, but the company still faces execution risks; there's no guarantee it can scale up its reactor commercially. It also faces competition with other energy companies vying for AI data center clients, like Bloom Energy and Oklo.
As such, Nano is a high risk, high reward play on nuclear power. At this point, only very aggressive investors should consider opening a small position in this nuclear energy stock.
Steven Porrello has positions in Bloom Energy, Nano Nuclear Energy, and Oklo. The Motley Fool has positions in and recommends Bloom Energy. The Motley Fool has a disclosure policy.
Key Takeaways SMR says TVA-ENTRA1 talks could support up to 6 GW of nuclear capacity using its technology.NuScale holds NRC approvals for two SMR designs under Part 52, positioning it as deployable.ENTRA1 is named in a $550B U.S.-Japan framework. Korea also proposed $350B for nuclear/AI. For NuScale Power (SMR - Free Report) , the TVA-ENTRA1 opportunity is shaping up as the company’s most important commercialization catalyst. Discussions tied to the Tennessee Valley Authority (“TVA”) project continue to advance and could potentially unlock the next phase of growth for the small modular reactor (“SMR”) developer. TVA and ENTRA1 Energy are working toward a deployment program that could involve up to 6 gigawatts of nuclear capacity using NuScale technology. The company believes the initiative could become the largest nuclear deployment program in U.S. history.
Talks are progressing toward a definitive power purchase agreement (PPA). Once the PPA is finalized, the company expects activity to accelerate quickly through site-specific licensing work, pre-FEED activities, and eventually OEM contracts tied to NuScale Power Modules. These early-stage activities alone could begin contributing meaningful revenues even before full reactor deployment begins.
NuScale believes its regulatory readiness gives it an edge in securing these large-scale contracts. Unlike many advanced nuclear peers still pursuing earlier-stage licensing pathways, NuScale already holds U.S. Nuclear Regulatory Commission (“NRC”) approvals for two SMR designs under the Part 52 framework. This acts as a major differentiator because customers increasingly prioritize technologies that are commercially deployable rather than still experimental.
Financing also appears to be a critical piece of the TVA story. On the first-quarter earnings call, management pointed to potential support from both Japanese and Korean investment frameworks aimed at funding strategic U.S. industries, including nuclear power and AI infrastructure. ENTRA1 was named in the $550 billion U.S.-Japan investment framework, which could help support financing for the TVA project. South Korea has also proposed a $350 billion investment push into U.S. strategic industries, including nuclear energy, AI and semiconductors.
NuScale does face financing, execution and timeline risks. But the TVA opportunity is the company’s biggest commercial breakthrough yet. If successful, the project would validate years of regulatory work, supply-chain investment and commercialization efforts.
Oklo and NANO Nuclear Push Commercial Deployment PlansOklo Inc. (OKLO - Free Report) is also advancing commercialization efforts in the emerging advanced nuclear market. Last year, the company broke ground on its first Aurora powerhouse project at Idaho National Laboratory under the DOE’s Reactor Pilot Program and is targeting initial operations in late 2027 or early 2028. Oklo has also benefited from rising AI-driven power demand themes, with Meta expanding a planned Ohio deployment vision to 1.2 gigawatts under a power agreement structure designed to support early-stage development. In addition, Oklo has partnered with NVIDIA on nuclear fuel and infrastructure research initiatives tied to future AI data center energy needs.
NANO Nuclear Energy Inc. (NNE - Free Report) is also making regulatory progress in the advanced nuclear space. Last week, NRC formally accepted the company’s Construction Permit Application for its KRONOS micro modular reactor project at the University of Illinois Urbana-Champaign. NANO Nuclear believes KRONOS is the first commercially focused microreactor to reach this stage of the NRC review process. The review is expected to conclude in 2027, potentially allowing construction activities to begin in the second half of next year.
SMR's Price Performance, Valuation & EstimatesShares of NuScale Power have declined more than 60% over the past year, underperforming the industry.
Image Source: Zacks Investment Research
In terms of trailing 12-month price/book, NuScale Power shares are trading at 3.52X.
Image Source: Zacks Investment Research
See how bottom-line estimates for SMR have been revised over the past 90 days.
Image Source: Zacks Investment Research
NuScale Power currently carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
New York, New York--(Newsfile Corp. - May 26, 2026) - NANO Nuclear Energy Inc. (NASDAQ: NNE) ("NANO Nuclear" or "the Company"), a leading advanced nuclear micro modular reactor and technology company focused on developing clean energy solutions, today announced the acquisition of Secured Transportation Services LLC (STS), a specialized U.S. based, globally operating nuclear logistics, transportation and services company specializing in the safe, secure and compliant movement of radioactive and nuclear materials.
This acquisition represents a significant strategic milestone in NANO Nuclear's evolution into a vertically integrated nuclear energy company by adding one of the most important and challenging elements of the nuclear fuel cycle: the capability to plan, coordinate, license, secure and execute nuclear materials transportation and related deployment activities.
With the addition of STS, NANO Nuclear is taking a decisive step toward becoming a leader in the next generation of nuclear energy infrastructure, with capabilities designed to support reactor deployment and the broader ecosystem required to enable commercialization at scale.
One of the most significant barriers to scaling advanced nuclear technologies is not the reactor itself, but the infrastructure required to support it, particularly fuel transportation. The transport of nuclear materials, particularly spent fuel, HALEU fuel and advanced reactor components, is one of the most highly regulated and operationally complex segments of the nuclear fuel cycle, with emerging capacity constraints expected as next-generation reactor deployments accelerate.
With STS part of the organization, NANO Nuclear is competitively well positioned to:
Control and coordinate critical nuclear fuel transportation logistics.
Support deployment planning for microreactors and related advanced nuclear systems.
Reduce reliance on third-party nuclear logistics providers for core transportation and deployment functions.
Navigate complex regulatory, security and route-approval requirements.
Develop repeatable deployment models for defense, data center, industrial, remote and international customers.
Support a broader ecosystem of nuclear fuel-cycle services expected to be required by NANO Nuclear and other nuclear industry participants.
Founded in 2005, STS brings more than two decades of specialized nuclear transportation experience and a strong track record of executing complex nuclear materials projects safely, securely and efficiently. STS personnel have completed projects in more than 40 countries, providing NANO Nuclear with operational experience in navigating various regulatory requirements, physical challenges and political environments. STS currently holds approvals for more than 90% of the active U.S. NRC approved spent fuel routes in the United States.
STS brings a team of highly experienced professionals with backgrounds spanning nuclear engineering, logistics, regulatory affairs, and operations - capabilities that are difficult to procure and essential to transporting fuel and deploying reactors at scale.
In addition, the acquisition of STS provides NANO Nuclear with revenue generating operations. For the twelve months ended December 31, 2025, STS generated audited revenues of approximately $7.1 million and net income of approximately $1.3 million, reflecting strong underlying profitability and operational efficiency. Equally as important, NANO Nuclear sees substantial opportunity for growth at STS in the coming years as demand for nuclear fuel transportation and logistics accelerates. STS is expected to benefit from NANO Nuclear's relationships and exposure to several aspects of the nuclear fuel cycle, as well as NANO Nuclear's strong financial position through prudent deployment of strategic growth capital.
Figure 1 - NANO Nuclear Acquires Secured Transportation Services Joining a Select Group of Revenue-Generating Microreactor Developers
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/11703/298833_0c3479b2e44f18ed_003full.jpg
The acquisition of STS directly supports NANO Nuclear's broader strategy of building a fully vertically integrated business, spanning:
Reactor design and development.
Fuel sourcing and processing (LEU/HALEU ecosystem).
Fuel transportation and logistics.
Reactor deployment and installation.
Long-term operational support.
By integrating STS into its operations, NANO Nuclear gains the ability to coordinate the movement of nuclear fuel and reactor systems from origin to deployment site, a capability that is expected to become increasingly valuable as demand for microreactors accelerates globally.
"This acquisition is about more than logistics, it's about unlocking the full potential of advanced nuclear," said Jay Yu, Chairman and President of NANO Nuclear. "With STS, we now control a vital link in the nuclear value chain that very few companies possess globally. This capability will allow us to move faster, deploy quicker, and deliver our technologies anywhere in the world. We are building infrastructure for the next generation of nuclear energy, and this is a major step forward."
Figure 2 - NANO Nuclear Establishes a Fully Integrated Nuclear Fuel Logistics and Deployment Platform.
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/11703/298833_0c3479b2e44f18ed_004full.jpg
"This is a transformational acquisition for NANO Nuclear," said James Walker, Chief Executive Officer of NANO Nuclear. "STS brings the kind of deep, specialized expertise that is essential to making advanced nuclear a reality at scale. Transportation is one of the most overlooked, but most critical, pieces of the nuclear value chain. By bringing STS into the NANO Nuclear ecosystem, we are removing a major bottleneck and positioning ourselves as one of the few companies capable of delivering a truly end-to-end nuclear solution. This acquisition doesn't just strengthen our logistics capabilities, it accelerates everything: our fuel strategy, our deployment timelines, and our ability to serve customers across North America and internationally."
As the global energy system shifts toward clean, reliable, and decentralized power, microreactors are expected to play a pivotal role. However, their success depends on the ability to safely and efficiently move fuel and systems where they are needed.
"For more than two decades, STS has built its reputation by executing complex nuclear transportation projects safely, securely and reliably," said Roy Boyd, Founder & President of STS, who will continue in this role post-acquisition. "Joining NANO Nuclear gives STS the resources and platform to expand our capabilities while maintaining the safety-first culture, regulatory discipline and customer focus that have defined our company since its founding. We are benefitting from the industry's growth and believe we are well-prepared to meet expected demand. We believe our logistics, training, consulting, security coordination, engineering and project execution experience will be highly complementary to NANO Nuclear's broader advanced nuclear strategy and advance the overall mission to meet growing demand for nuclear energy."
STS was acquired by NANO Nuclear's existing transportation subsidiary, Advanced Fuel Transportation Inc., for total consideration valued at up to $13 million. The total purchase price is comprised of $6 million paid in cash at closing, subject to closing adjustments, and $7 million in restricted shares of NANO Nuclear's common stock paid in several installments, a portion of which is subject to certain contractual contingencies. Additional information will be provided in a Form 8-K to be filed by NANO Nuclear with the U.S. Securities and Exchange Commission.
About NANO Nuclear Energy Inc.
NANO Nuclear Energy Inc. (NASDAQ: NNE) is a North American advanced technology-driven nuclear energy company seeking to become a commercially focused, diversified, and vertically integrated company across five business lines: (i) cutting edge portable and other microreactor technologies, (ii) nuclear fuel supply chain, (iii) nuclear fuel transportation, (iv) nuclear applications for space and (v) nuclear industry consulting services. NANO Nuclear believes it is the first portable nuclear microreactor company to be listed publicly in the U.S.
Led by a world-class nuclear engineering team, NANO Nuclear's reactor products in development include its lead project, the patented KRONOS MMR™ Energy System, a stationary high-temperature gas-cooled reactor that is in construction permit pre-application engagement with the U.S. Nuclear Regulatory Commission (NRC) in collaboration with University of Illinois Urbana-Champaign (U. of I.), ZEUS™, a solid core battery reactor, and the space focused, portable LOKI MMR™, each representing advanced developments in clean energy solutions that are modular, on-demand capable, advanced nuclear microreactors.
Advanced Fuel Transportation Inc. (AFT), a NANO Nuclear subsidiary, bolstered by the May 2026 acquisition of Secured Transportation Services (STS), is led by former executives from the largest transportation company in the world and provides nuclear engineering and materials transport services in the U.S. and globally. Through NANO Nuclear, AFT is the exclusive licensee of a patented high-capacity HALEU fuel transportation basket developed by three major U.S. national nuclear laboratories and funded by the Department of Energy.
HALEU Energy Fuel Inc. (HEF), a NANO Nuclear subsidiary, is focusing on the future development of a domestic source for a HALEU fuel fabrication pipeline for NANO Nuclear's own microreactors as well as the broader advanced nuclear reactor industry.
NANO Nuclear Space Inc. (NNS), a NANO Nuclear subsidiary, is exploring the potential commercial applications of NANO Nuclear's developing micro nuclear reactor technology in space. NNS is focusing on applications such as the LOKI MMR™ system and other power systems for extraterrestrial projects and human sustaining environments, and potentially propulsion technology for long haul space missions. NNS' initial focus will be on cis-lunar applications, referring to uses in the space region extending from Earth to the area surrounding the Moon's surface.
For more corporate information, please visit: https://NanoNuclearEnergy.com/
This news release and statements of NANO Nuclear's management in connection with this news release contain or may contain "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. In this context, forward-looking statements mean statements related to future events, which may impact our expected future business and financial performance, and often contain words such as "expects", "anticipates", "intends", "explore," "aim", "plans", "believes", "potential", "will", "should", "could", "would", "goal", "aim", or "may" or derivatives of these words and other words relating to the future. Specifically, forward-looking statements include those related to the anticipated benefits to NANO Nuclear of the acquisition of STS as well as NANO Nuclear's development, construction, demonstration, regulatory licensing and commercial plans and strategies generally. These and other forward-looking statements are based on information available to us as of the date of this news release and represent management's current views and assumptions. Forward-looking statements are not guarantees of future performance, events or results and involve significant known and unknown risks, uncertainties and other factors, which may be beyond our control. For NANO Nuclear, particular risks and uncertainties that could cause our actual future results to differ materially from those expressed in our forward-looking statements include but are not limited to the following: (i) risks related to our U.S. Department of Energy ("DOE"), Canadian Nuclear Safety Commission ("CNSC") or related state or non-U.S. nuclear licensing submissions, (ii) risks related to our vertical integration strategy (notably the integration of STS as contemplated herein) and the development of new or advanced technology and the acquisition of complimentary technology or businesses, including difficulties with design and testing, cost overruns, regulatory delays, integration issues and the development of competitive technology, (iii) our ability to obtain contracts and funding to be able to continue operations, (iv) risks related to uncertainty regarding our ability to technologically develop and commercially deploy a competitive advanced nuclear reactor or other technology in the timelines we anticipate, if ever, (v) risks related to the impact of U.S. and non-U.S. government regulation, policies and licensing requirements, including by the DOE, the U.S. Nuclear Regulatory Commission, including those associated with the recently enacted ADVANCE Act and the May 23, 2025 Executive Orders seeking to streamline nuclear regulation, as well as the CNSC, and (vi) similar risks and uncertainties associated with the operating an early stage business a highly regulated and rapidly evolving industry. Readers are cautioned not to place undue reliance on these forward-looking statements, which apply only as of the date of this news release. These factors may not constitute all factors that could cause actual results to differ from those discussed in any forward-looking statement, and NANO Nuclear therefore encourages investors to review other factors that may affect future results in its filings with the SEC, which are available for review at www.sec.gov and at https://ir.nanonuclearenergy.com/financial-information/sec-filings. Accordingly, forward-looking statements should not be relied upon as a predictor of actual results. We do not undertake to update our forward-looking statements to reflect events or circumstances that may arise after the date of this news release, except as required by law.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/298833
Source: NANO Nuclear Energy Inc.
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Acquisition adds more than 20 years of specialized nuclear transportation experience, accelerating NANO Nuclear’s fuel supply chain and reactor deployment capabilities.
NEW YORK, N.Y., May 26, 2026 (GLOBE NEWSWIRE) -- NANO Nuclear Energy Inc. (NASDAQ: NNE) (“NANO Nuclear” or “the Company”), a leading advanced nuclear micro modular reactor and technology company focused on developing clean energy solutions, today announced the acquisition of Secured Transportation Services LLC (STS), a specialized U.S. based, globally operating nuclear logistics, transportation and services company specializing in the safe, secure and compliant movement of radioactive and nuclear materials.
This acquisition represents a significant strategic milestone in NANO Nuclear’s evolution into a vertically integrated nuclear energy company by adding one of the most important and challenging elements of the nuclear fuel cycle: the capability to plan, coordinate, license, secure and execute nuclear materials transportation and related deployment activities.
With the addition of STS, NANO Nuclear is taking a decisive step toward becoming a leader in the next generation of nuclear energy infrastructure, with capabilities designed to support reactor deployment and the broader ecosystem required to enable commercialization at scale.
One of the most significant barriers to scaling advanced nuclear technologies is not the reactor itself, but the infrastructure required to support it, particularly fuel transportation. The transport of nuclear materials, particularly spent fuel, HALEU fuel and advanced reactor components, is one of the most highly regulated and operationally complex segments of the nuclear fuel cycle, with emerging capacity constraints expected as next-generation reactor deployments accelerate.
With STS part of the organization, NANO Nuclear is competitively well positioned to:
Control and coordinate critical nuclear fuel transportation logistics.Support deployment planning for microreactors and related advanced nuclear systems.Reduce reliance on third-party nuclear logistics providers for core transportation and deployment functions.Navigate complex regulatory, security and route-approval requirements.Develop repeatable deployment models for defense, data center, industrial, remote and international customers.Support a broader ecosystem of nuclear fuel-cycle services expected to be required by NANO Nuclear and other nuclear industry participants. Founded in 2005, STS brings more than two decades of specialized nuclear transportation experience and a strong track record of executing complex nuclear materials projects safely, securely and efficiently. STS personnel have completed projects in more than 40 countries, providing NANO Nuclear with operational experience in navigating various regulatory requirements, physical challenges and political environments. STS currently holds approvals for more than 90% of the active U.S. NRC approved spent fuel routes in the United States.
STS brings a team of highly experienced professionals with backgrounds spanning nuclear engineering, logistics, regulatory affairs, and operations - capabilities that are difficult to procure and essential to transporting fuel and deploying reactors at scale.
In addition, the acquisition of STS provides NANO Nuclear with revenue generating operations. For the twelve months ended December 31, 2025, STS generated audited revenues of approximately $7.1 million and net income of approximately $1.3 million, reflecting strong underlying profitability and operational efficiency. Equally as important, NANO Nuclear sees substantial opportunity for growth at STS in the coming years as demand for nuclear fuel transportation and logistics accelerates. STS is expected to benefit from NANO Nuclear’s relationships and exposure to several aspects of the nuclear fuel cycle, as well as NANO Nuclear’s strong financial position through prudent deployment of strategic growth capital.
Figure 1 - NANO Nuclear Acquires Secured Transportation Services Joining a Select Group of Revenue-Generating Microreactor Developers
The acquisition of STS directly supports NANO Nuclear’s broader strategy of building a fully vertically integrated business, spanning:
Reactor design and development.Fuel sourcing and processing (LEU/HALEU ecosystem).Fuel transportation and logistics.Reactor deployment and installation.Long-term operational support.
By integrating STS into its operations, NANO Nuclear gains the ability to coordinate the movement of nuclear fuel and reactor systems from origin to deployment site, a capability that is expected to become increasingly valuable as demand for microreactors accelerates globally.
“This acquisition is about more than logistics, it’s about unlocking the full potential of advanced nuclear,” said Jay Yu, Chairman and President of NANO Nuclear. “With STS, we now control a vital link in the nuclear value chain that very few companies possess globally. This capability will allow us to move faster, deploy quicker, and deliver our technologies anywhere in the world. We are building infrastructure for the next generation of nuclear energy, and this is a major step forward.”
Figure 2 - NANO Nuclear Establishes a Fully Integrated Nuclear Fuel Logistics and Deployment Platform.
“This is a transformational acquisition for NANO Nuclear,” said James Walker, Chief Executive Officer of NANO Nuclear. “STS brings the kind of deep, specialized expertise that is essential to making advanced nuclear a reality at scale. Transportation is one of the most overlooked, but most critical, pieces of the nuclear value chain. By bringing STS into the NANO Nuclear ecosystem, we are removing a major bottleneck and positioning ourselves as one of the few companies capable of delivering a truly end-to-end nuclear solution. This acquisition doesn’t just strengthen our logistics capabilities, it accelerates everything: our fuel strategy, our deployment timelines, and our ability to serve customers across North America and internationally.”
As the global energy system shifts toward clean, reliable, and decentralized power, microreactors are expected to play a pivotal role. However, their success depends on the ability to safely and efficiently move fuel and systems where they are needed.
"For more than two decades, STS has built its reputation by executing complex nuclear transportation projects safely, securely and reliably,” said Roy Boyd, Founder & President of STS, who will continue in this role post-acquisition. “Joining NANO Nuclear gives STS the resources and platform to expand our capabilities while maintaining the safety-first culture, regulatory discipline and customer focus that have defined our company since its founding. We are benefitting from the industry’s growth and believe we are well-prepared to meet expected demand. We believe our logistics, training, consulting, security coordination, engineering and project execution experience will be highly complementary to NANO Nuclear's broader advanced nuclear strategy and advance the overall mission to meet growing demand for nuclear energy."
STS was acquired by NANO Nuclear’s existing transportation subsidiary, Advanced Fuel Transportation Inc., for total consideration valued at up to $13 million. The total purchase price is comprised of $6 million paid in cash at closing, subject to closing adjustments, and $7 million in restricted shares of NANO Nuclear’s common stock paid in several installments, a portion of which is subject to certain contractual contingencies. Additional information will be provided in a Form 8-K to be filed by NANO Nuclear with the U.S. Securities and Exchange Commission.
About NANO Nuclear Energy Inc.
NANO Nuclear Energy Inc. (NASDAQ: NNE) is a North American advanced technology-driven nuclear energy company seeking to become a commercially focused, diversified, and vertically integrated company across five business lines: (i) cutting edge portable and other microreactor technologies, (ii) nuclear fuel supply chain, (iii) nuclear fuel transportation, (iv) nuclear applications for space and (v) nuclear industry consulting services. NANO Nuclear believes it is the first portable nuclear microreactor company to be listed publicly in the U.S.
Led by a world-class nuclear engineering team, NANO Nuclear’s reactor products in development include its lead project, the patented KRONOS MMR™ Energy System, a stationary high-temperature gas-cooled reactor that is in construction permit pre-application engagement with the U.S. Nuclear Regulatory Commission (NRC) in collaboration with University of Illinois Urbana-Champaign (U. of I.), ZEUS™, a solid core battery reactor, and the space focused, portable LOKI MMR™, each representing advanced developments in clean energy solutions that are modular, on-demand capable, advanced nuclear microreactors.
Advanced Fuel Transportation Inc. (AFT), a NANO Nuclear subsidiary, bolstered by the May 2026 acquisition of Secured Transportation Services (STS), is led by former executives from the largest transportation company in the world and provides nuclear engineering and materials transport services in the U.S. and globally. Through NANO Nuclear, AFT is the exclusive licensee of a patented high-capacity HALEU fuel transportation basket developed by three major U.S. national nuclear laboratories and funded by the Department of Energy.
HALEU Energy Fuel Inc. (HEF), a NANO Nuclear subsidiary, is focusing on the future development of a domestic source for a HALEU fuel fabrication pipeline for NANO Nuclear’s own microreactors as well as the broader advanced nuclear reactor industry.
NANO Nuclear Space Inc. (NNS), a NANO Nuclear subsidiary, is exploring the potential commercial applications of NANO Nuclear’s developing micro nuclear reactor technology in space. NNS is focusing on applications such as the LOKI MMR™ system and other power systems for extraterrestrial projects and human sustaining environments, and potentially propulsion technology for long haul space missions. NNS’ initial focus will be on cis-lunar applications, referring to uses in the space region extending from Earth to the area surrounding the Moon's surface.
For more corporate information please visit: https://NanoNuclearEnergy.com/
This news release and statements of NANO Nuclear’s management in connection with this news release contain or may contain “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. In this context, forward-looking statements mean statements related to future events, which may impact our expected future business and financial performance, and often contain words such as “expects”, “anticipates”, “intends”, “explore,” “aim,” “plans”, “believes”, “potential”, “will”, “should”, “could”, “would,” “goal,” “aim,” or “may” or derivatives of these words and other words relating to the future. Specifically, forward-looking statements include those related to the anticipated benefits to NANO Nuclear of the acquisition of STS as well as NANO Nuclear’s development, construction, demonstration, regulatory licensing and commercial plans and strategies generally. These and other forward-looking statements are based on information available to us as of the date of this news release and represent management's current views and assumptions. Forward-looking statements are not guarantees of future performance, events or results and involve significant known and unknown risks, uncertainties and other factors, which may be beyond our control. For NANO Nuclear, particular risks and uncertainties that could cause our actual future results to differ materially from those expressed in our forward-looking statements include but are not limited to the following: (i) risks related to our U.S. Department of Energy (“DOE”), Canadian Nuclear Safety Commission (“CNSC”) or related state or non-U.S. nuclear licensing submissions, (ii) risks related to our vertical integration strategy (notably the integration of STS as contemplated herein) and the development of new or advanced technology and the acquisition of complimentary technology or businesses, including difficulties with design and testing, cost overruns, regulatory delays, integration issues and the development of competitive technology, (iii) our ability to obtain contracts and funding to be able to continue operations, (iv) risks related to uncertainty regarding our ability to technologically develop and commercially deploy a competitive advanced nuclear reactor or other technology in the timelines we anticipate, if ever, (v) risks related to the impact of U.S. and non-U.S. government regulation, policies and licensing requirements, including by the DOE, the U.S. Nuclear Regulatory Commission, including those associated with the recently enacted ADVANCE Act and the May 23, 2025 Executive Orders seeking to streamline nuclear regulation, as well as the CNSC, and (vi) similar risks and uncertainties associated with the operating an early stage business a highly regulated and rapidly evolving industry. Readers are cautioned not to place undue reliance on these forward-looking statements, which apply only as of the date of this news release. These factors may not constitute all factors that could cause actual results to differ from those discussed in any forward-looking statement, and NANO Nuclear therefore encourages investors to review other factors that may affect future results in its filings with the SEC, which are available for review at www.sec.gov and at https://ir.nanonuclearenergy.com/financial-information/sec-filings. Accordingly, forward-looking statements should not be relied upon as a predictor of actual results. We do not undertake to update our forward-looking statements to reflect events or circumstances that may arise after the date of this news release, except as required by law.
Nano Nuclear Energy (NNE 7.62%) stock soared 12% through 11:40 a.m. ET Tuesday after announcing it has just acquired a subsidiary that generates actual revenue -- and is profitable to boot.
Considering Nano Nuclear itself currently generates no revenue, this is pretty big news for the start-up manufacturer of small modular (nuclear) power reactors.
Image source: Getty Images.
What Nano Nuclear just bought The company Nano just bought, Secured Transportation Services LLC, specializes in the safe, secure, and compliant (with safety regulations) movement of radioactive and nuclear materials. It's a perfect match for Nano, which is planning to build and transport nuclear reactors and fuel in the future!
The price Nano paid is also pretty nice.
Nano will pay $6 million cash and $7 million in stock for its new subsidiary -- $13 million total. In exchange, it gets a nuclear specialist with 20 years of experience, $7.1 million in annual revenue, and $1.3 million in annual net profit. That works out to a purchase price of 10 times annual earnings, and only 1.8 times sales.
When you consider that Nano itself currently trades at infinity times both earnings and sales, it's an obvious bargain. For that matter, if you look five years into the future, and see S&P Global Market Intelligence forecasting Nano with only $16.3 million in revenue in 2030, but costing nearly $1.6 billion today... well, that means Nano has a very forward price-to-sales ratio of nearly 1,000.
And 1.8x sales today is a lot cheaper than 1,000x sales five years from now.
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What it means for Nano Nuclear stock Beyond just getting a great price, Secured Transportation Services helps Nano become a fully integrated nuclear fuel logistics and transportation company -- not just for itself, but for other players in this industry as well.
Rich Smith has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Energy is the vital force powering the economy. And as artificial intelligence (AI) and data centers create new demands for electricity, the energy sector is expected to grow immensely in the coming decades. For investors looking for exposure to this growing industry, the following two growth stocks are easily worth a $100 investment.
1. Bloom Energy Bloom Energy (BE 9.54%) is hands down one of the most momentous energy stocks on the market today. The clean energy supplier has grown by over 200% since the start of the year -- and a whopping 1,450% since last year.
In a nutshell, Bloom makes big box-shaped energy servers that allow businesses to generate electricity on-site instead of buying all of it from the grid. These mini power plants ensure the lights stay on even when the main power grid goes out. That makes them perfect for clients who need reliable 24/7 power, like hospitals and data centers.
Image source: Bloom Energy.
Indeed, one of Bloom's first "proof of concept" moments was in the early stages of the COVID-19 pandemic, when it deployed energy servers to a field hospital in Sacramento. The 400-kilowatt (KW) "microgrid" was installed in less than a week and provided power to the makeshift medical facility, itself a response to California's overcrowded hospitals.
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Since 2025, Bloom's marquee client list has grown stronger due to high demand from AI data centers. Bloom inked its biggest deal with Brookfield Asset Management at the end of 2025, a $5 million agreement to deploy Bloom's servers for the asset manager's AI factories. It recently partnered with AI infrastructure leader Nebius in a $2.6 billion deal. The company also has partnerships with Equinix, Oracle, and CoreWeave.
Revenue growth has exploded, with Bloom reporting 130% year-over-year first-quarter revenue growth. It now expects to generate between $3.4 billion and $3.8 billion, a substantial climb from last year's $2 billion and the $1.5 billion it made in 2024. While shares trade near $300, most brokers offer fractional shares, so your $100 is enough to gain exposure to Bloom Energy.
2. Nano Nuclear Energy Nano Nuclear Energy (NNE 7.62%) is a nuclear energy start-up that designs microreactors. Imagine a miniature nuclear power plant that can be delivered on a truck. That, in essence, is what Nano Nuclear Energy is trying to build.
The company sits at the intersection of two powerful trends in energy: the need for round-the-clock, reliable electricity, and the push for zero-carbon energy.
Nano's ambitious goals, however, go beyond building reactors and selling power. It also wants to secure greater control over uranium supply to its reactors through strategic partnerships with companies like LIS Technologies. This matters because one of the biggest bottlenecks for advanced nuclear is high-assay low-enriched uranium (HALEU), a specialized fuel that many advanced reactors need. By securing its own uranium fuel, Nano doesn't have to compete with other companies, like Oklo, for the same scarce fuel.
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The company has about $569 million in cash and equivalents and an annual cash burn rate between $30 million and $39 million, which gives it several years to operate without needing a fresh cash injection. Nano also recently announced its first major agreement with a potential customer: a memorandum of understanding (MOU) with Super Micro Computer to explore using Nano's microreactors to power Super Micro's AI servers.
Execution risks for Nano abound. It's still pre-revenue, it lacks the licensing to deploy its microreactors commercially, and its vertical integration model means Nano has to solve several hard problems at once. There's no guarantee that Nano will survive the capital intensity of building and deploying reactors. Yet if it can succeed, investing $100 in this nuclear energy stock could grow handsomely over the long run.
Steven Porrello has positions in Bloom Energy, Nano Nuclear Energy, Nebius Group, and Oklo. The Motley Fool has positions in and recommends Bloom Energy, Brookfield Asset Management, Equinix, and Oracle. The Motley Fool has a disclosure policy.
New York, New York--(Newsfile Corp. - May 28, 2026) - NANO Nuclear Energy Inc. (NASDAQ: NNE) ("NANO Nuclear" or "the Company"), a leading advanced nuclear micro modular reactor and technology company focused on developing clean energy solutions, today announced recent U.S. Department of Energy ("DOE") and National Nuclear Security Administration ("NNSA") aligned nuclear materials transport campaigns supported by its recently acquired subsidiary, Secured Transportation Services LLC ("STS"). STS is a specialized U.S. based, globally operating nuclear logistics, transportation and services company specializing in the safe, secure and compliant movement of radioactive and nuclear materials.
The completed missions include a record-setting international shipment of high-assay low-enriched uranium (HALEU) from Japan, support for the removal of highly enriched uranium (HEU) from Venezuela, and a second U.S. domestic HALEU delivery supporting advanced reactor fuel testing. Together, these campaigns demonstrate STS's position as a trusted and experienced nuclear logistics partner capable of supporting complex, highly regulated domestic and international missions for DOE, NNSA, and the broader advanced nuclear sector.
Historic Japan HALEU Transfer and Associated Spent Fuel Logistics
STS served as the DOE's prime logistics contractor for a major international campaign involving the transfer of approximately 1.7 metric tons of HALEU from Japan — announced by the NNSA as the largest single international uranium shipment in its history — along with the transport of six Type B spent nuclear fuel casks to the DOE's Savannah River Site in Aiken, South Carolina.
The campaign required coordinated international licensing, maritime transport, port operations, security planning, customs coordination, and final overland delivery to U.S. destination facilities. The HALEU is expected to support U.S. advanced reactor fuel needs through DOE's HALEU Availability Program.
Venezuela HEU Removal Support
STS also provided logistics planning and U.S. domestic transfer support for NNSA's accelerated removal of 13.5 kilograms of HEU from Venezuela's dormant RV-1 research reactor. The mission supported U.S. nonproliferation objectives and helped eliminate a long-standing proliferation risk in the Western Hemisphere. The material was also transported to the Savannah River Site, where it is expected to be processed and down blended for future use in America's advanced nuclear fuel supply chain.
Second Domestic HALEU Delivery
In addition to its international mission work, STS completed a separate U.S. domestic HALEU transport campaign supporting advanced reactor fuel testing programs. This delivery further demonstrates STS's ability to execute multiple high-priority nuclear logistics missions safely, securely, and efficiently.
Figure 1 - A shielded industrial/nuclear radioactive material transport cask, marked with Class 7 radioactive placards and UN 3328 labels.
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/11703/299185_f2ea79f594e979e6_003full.jpg
STS Acquisition Adds Proven Nuclear Transportation and Logistics Capabilities, Enhances NANO's Strategic Focus on Vertical Integration and Supports Future Reactor Deployments
NANO Nuclear's acquisition of STS adds proven nuclear transportation and logistics capabilities, including established experience in Type A and Type B radioactive materials transport, multi-modal campaign execution, regulatory compliance, international permitting, security coordination, and DOE and NNSA mission support.
With the addition of STS, NANO Nuclear believes it now has the in-house capabilities and infrastructure to support fuel-cycle logistics and future microreactor deployments both in the U.S. and around the world. As demand for HALEU, advanced reactor fuel qualification, spent fuel management and secure nuclear materials transport increases, NANO Nuclear expects STS's mission-proven logistics capabilities to strengthen the Company's broader platform across the nuclear fuel supply chain, fuel and spent fuel transportation, microreactor deployment planning and long-term nuclear services.
Figure 2 - Unloading a large cylindrical shielded cask for radioactive material transport or handling.
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/11703/299185_f2ea79f594e979e6_004full.jpg
"STS's execution of these recent DOE and NNSA-aligned missions demonstrates exactly why integrating STS into NANO Nuclear is so strategically significant. These campaigns showcase the advanced expertise, regulatory discipline, and operational capabilities that are now part of our microreactor and fuel supply chain platform," said James Walker, Chief Executive Officer of NANO Nuclear Energy. "By bringing STS into the NANO Nuclear ecosystem, we have strengthened one of the most critical and capacity-constrained segments of the advanced nuclear supply chain: the safe, compliant movement of fuel and other nuclear materials. This capability not only supports our fuel-cycle strategy and microreactor deployment plans, but also positions us as one of the few companies developing the capability to deliver an integrated end-to-end advanced nuclear solution. The success of these missions reaffirms that STS is accelerating our ability to deploy next-generation nuclear systems globally."
"STS has earned its reputation as a trusted and experienced partner for some of the nation's most important nuclear transportation missions, and we've completed many incredibly difficult nuclear shipments with a strong record of success and compliance," said Roy Boyd, Founder & President of STS. "Our organization is pleased to participate in these important initiatives that support the mission of the DOE and NNSA. These programs are vital to the safety of the United States and to the path forward for advanced nuclear energy. STS has performed movements throughout the world in all types of variable regulatory spaces and mission constraints. With NANO Nuclear's support, we are well-positioned to expand that capability and help meet the logistics demands of the next generation of nuclear energy."
"These latest STS-supported missions underscore the tremendous value of our acquisition and reinforce why the integration of a world-class nuclear logistics organization is a major step forward for NANO Nuclear. STS's work on the largest ever single international uranium shipment in NNSA history, its support for the removal of HEU from Venezuela, and its domestic HALEU delivery highlight proven capabilities and expertise that very few organizations have globally," said Jay Yu, Chairman and President of NANO Nuclear Energy. "With STS, we control a vital link in the nuclear value chain - one that is essential for scaling microreactor deployment, strengthening domestic fuel-cycle resilience, and enabling the advanced nuclear industry to grow. These accomplishments validate our strategy to build a fully vertically integrated nuclear energy company with the infrastructure, expertise, and execution ability needed to support national priorities and commercial customers alike. We are building the logistics backbone required for the next generation of nuclear energy, and these missions demonstrate the impact of that vision coming to life."
About NANO Nuclear Energy Inc.
NANO Nuclear Energy Inc. (NASDAQ: NNE) is a North American advanced technology-driven nuclear energy company seeking to become a commercially focused, diversified, and vertically integrated company across five business lines: (i) cutting edge portable and other microreactor technologies, (ii) nuclear fuel supply chain, (iii) nuclear fuel transportation, (iv) nuclear applications for space and (v) nuclear industry consulting services. NANO Nuclear believes it is the first portable nuclear microreactor company to be listed publicly in the U.S.
Led by a world-class nuclear engineering team, NANO Nuclear's reactor products in development include its lead project, the patented KRONOS MMR™ Energy System, a stationary high-temperature gas-cooled reactor that is in construction permit pre-application engagement with the U.S. Nuclear Regulatory Commission (NRC) in collaboration with University of Illinois Urbana-Champaign (U. of I.), ZEUS™, a solid core battery reactor, and the space focused, portable LOKI MMR™, each representing advanced developments in clean energy solutions that are modular, on-demand capable, advanced nuclear microreactors.
Advanced Fuel Transportation Inc. (AFT), a NANO Nuclear subsidiary, bolstered by the May 2026 acquisition of Secured Transportation Services (STS), is led by former executives from the largest transportation company in the world and provides nuclear engineering and materials transport services in the U.S. and globally. Through NANO Nuclear, AFT is the exclusive licensee of a patented high-capacity HALEU fuel transportation basket developed by three major U.S. national nuclear laboratories and funded by the Department of Energy.
HALEU Energy Fuel Inc. (HEF), a NANO Nuclear subsidiary, is focusing on the future development of a domestic source for a HALEU fuel fabrication pipeline for NANO Nuclear's own microreactors as well as the broader advanced nuclear reactor industry.
NANO Nuclear Space Inc. (NNS), a NANO Nuclear subsidiary, is exploring the potential commercial applications of NANO Nuclear's developing micro nuclear reactor technology in space. NNS is focusing on applications such as the LOKI MMR™ system and other power systems for extraterrestrial projects and human sustaining environments, and potentially propulsion technology for long haul space missions. NNS' initial focus will be on cis-lunar applications, referring to uses in the space region extending from Earth to the area surrounding the Moon's surface.
For more corporate information please visit: https://NanoNuclearEnergy.com/
This news release and statements of NANO Nuclear's management in connection with this news release contain or may contain "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. In this context, forward-looking statements mean statements related to future events, which may impact our expected future business and financial performance, and often contain words such as "expects", "anticipates", "intends", "explore," "aim," "plans", "believes", "potential", "will", "should", "could", "would," "goal," "aim," "develop," "may" or derivatives of these words and other words relating to the future. Specifically, forward-looking statements include those related to the anticipated benefits to NANO Nuclear of the acquisition of STS as well as NANO Nuclear's development, construction, demonstration, regulatory licensing and commercial plans and strategies generally. These and other forward-looking statements are based on information available to us as of the date of this news release and represent management's current views and assumptions. Forward-looking statements are not guarantees of future performance, events or results and involve significant known and unknown risks, uncertainties and other factors, which may be beyond our control. For NANO Nuclear, particular risks and uncertainties that could cause our actual future results to differ materially from those expressed in our forward-looking statements include but are not limited to the following: (i) risks related to our U.S. Department of Energy ("DOE"), Canadian Nuclear Safety Commission ("CNSC") or related state or non-U.S. nuclear licensing submissions, (ii) risks related to our vertical integration strategy (notably the integration of STS as contemplated herein) and the development of new or advanced technology and the acquisition of complimentary technology or businesses, including difficulties with design and testing, cost overruns, regulatory delays, integration issues and the development of competitive technology, (iii) our ability to obtain contracts and funding to be able to continue operations, (iv) risks related to uncertainty regarding our ability to technologically develop and commercially deploy a competitive advanced nuclear reactor or other technology in the timelines we anticipate, if ever, (v) risks related to the impact of U.S. and non-U.S. government regulation, policies and licensing requirements, including by the DOE, the U.S. Nuclear Regulatory Commission, including those associated with the recently enacted ADVANCE Act and the May 23, 2025 Executive Orders seeking to streamline nuclear regulation, as well as the CNSC, and (vi) similar risks and uncertainties associated with the operating an early stage business a highly regulated and rapidly evolving industry. Readers are cautioned not to place undue reliance on these forward-looking statements, which apply only as of the date of this news release. These factors may not constitute all factors that could cause actual results to differ from those discussed in any forward-looking statement, and NANO Nuclear therefore encourages investors to review other factors that may affect future results in its filings with the SEC, which are available for review at www.sec.gov and at https://ir.nanonuclearenergy.com/financial-information/sec-filings. Accordingly, forward-looking statements should not be relied upon as a predictor of actual results. We do not undertake to update our forward-looking statements to reflect events or circumstances that may arise after the date of this news release, except as required by law.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/299185
Source: NANO Nuclear Energy Inc.
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Recent Japan HALEU transfer, Venezuela HEU removal support, and U.S. domestic HALEU delivery underscore STS’s mission-proven capabilities and progress towards NANO Nuclear’s broader vision of building a vertically integrated advanced nuclear platform.
NEW YORK, N.Y., May 28, 2026 (GLOBE NEWSWIRE) -- NANO Nuclear Energy Inc. (NASDAQ: NNE) (“NANO Nuclear” or “the Company”), a leading advanced nuclear micro modular reactor and technology company focused on developing clean energy solutions, today announced recent U.S. Department of Energy (“DOE”) and National Nuclear Security Administration (“NNSA”) aligned nuclear materials transport campaigns supported by its recently acquired subsidiary, Secured Transportation Services LLC (“STS”). STS is a specialized U.S. based, globally operating nuclear logistics, transportation and services company specializing in the safe, secure and compliant movement of radioactive and nuclear materials.
The completed missions include a record-setting international shipment of high-assay low-enriched uranium (HALEU) from Japan, support for the removal of highly enriched uranium (HEU) from Venezuela, and a second U.S. domestic HALEU delivery supporting advanced reactor fuel testing. Together, these campaigns demonstrate STS's position as a trusted and experienced nuclear logistics partner capable of supporting complex, highly regulated domestic and international missions for DOE, NNSA, and the broader advanced nuclear sector.
Historic Japan HALEU Transfer and Associated Spent Fuel Logistics
STS served as the DOE's prime logistics contractor for a major international campaign involving the transfer of approximately 1.7 metric tons of HALEU from Japan — announced by the NNSA as the largest single international uranium shipment in its history — along with the transport of six Type B spent nuclear fuel casks to the DOE's Savannah River Site in Aiken, South Carolina.
The campaign required coordinated international licensing, maritime transport, port operations, security planning, customs coordination, and final overland delivery to U.S. destination facilities. The HALEU is expected to support U.S. advanced reactor fuel needs through DOE's HALEU Availability Program.
Venezuela HEU Removal Support
STS also provided logistics planning and U.S. domestic transfer support for NNSA's accelerated removal of 13.5 kilograms of HEU from Venezuela's dormant RV-1 research reactor. The mission supported U.S. nonproliferation objectives and helped eliminate a long-standing proliferation risk in the Western Hemisphere. The material was also transported to the Savannah River Site, where it is expected to be processed and down blended for future use in America's advanced nuclear fuel supply chain.
Second Domestic HALEU Delivery
In addition to its international mission work, STS completed a separate U.S. domestic HALEU transport campaign supporting advanced reactor fuel testing programs. This delivery further demonstrates STS's ability to execute multiple high-priority nuclear logistics missions safely, securely, and efficiently.
Figure 1 - A shielded industrial/nuclear radioactive material transport cask, marked with Class 7 radioactive placards and UN 3328 labels.
STS Acquisition Adds Proven Nuclear Transportation and Logistics Capabilities, Enhances NANO’s Strategic Focus on Vertical Integration and Supports Future Reactor Deployments
NANO Nuclear's acquisition of STS adds proven nuclear transportation and logistics capabilities, including established experience in Type A and Type B radioactive materials transport, multi-modal campaign execution, regulatory compliance, international permitting, security coordination, and DOE and NNSA mission support.
With the addition of STS, NANO Nuclear believes it now has the in-house capabilities and infrastructure to support fuel-cycle logistics and future microreactor deployments both in the U.S. and around the world. As demand for HALEU, advanced reactor fuel qualification, spent fuel management and secure nuclear materials transport increases, NANO Nuclear expects STS’s mission-proven logistics capabilities to strengthen the Company’s broader platform across the nuclear fuel supply chain, fuel and spent fuel transportation, microreactor deployment planning and long-term nuclear services.
Figure 2 - Unloading a large cylindrical shielded cask for radioactive material transport or handling.
“STS’s execution of these recent DOE and NNSA-aligned missions demonstrates exactly why integrating STS into NANO Nuclear is so strategically significant. These campaigns showcase the advanced expertise, regulatory discipline, and operational capabilities that are now part of our microreactor and fuel supply chain platform,” said James Walker, Chief Executive Officer of NANO Nuclear Energy. “By bringing STS into the NANO Nuclear ecosystem, we have strengthened one of the most critical and capacity-constrained segments of the advanced nuclear supply chain: the safe, compliant movement of fuel and other nuclear materials. This capability not only supports our fuel-cycle strategy and microreactor deployment plans, but also positions us as one of the few companies developing the capability to deliver an integrated end-to-end advanced nuclear solution. The success of these missions reaffirms that STS is accelerating our ability to deploy next-generation nuclear systems globally.”
"STS has earned its reputation as a trusted and experienced partner for some of the nation's most important nuclear transportation missions, and we’ve completed many incredibly difficult nuclear shipments with a strong record of success and compliance,” said Roy Boyd, Founder & President of STS. “Our organization is pleased to participate in these important initiatives that support the mission of the DOE and NNSA. These programs are vital to the safety of the United States and to the path forward for advanced nuclear energy. STS has performed movements throughout the world in all types of variable regulatory spaces and mission constraints. With NANO Nuclear's support, we are well-positioned to expand that capability and help meet the logistics demands of the next generation of nuclear energy.”
“These latest STS-supported missions underscore the tremendous value of our acquisition and reinforce why the integration of a world-class nuclear logistics organization is a major step forward for NANO Nuclear. STS’s work on the largest ever single international uranium shipment in NNSA history, its support for the removal of HEU from Venezuela, and its domestic HALEU delivery highlight proven capabilities and expertise that very few organizations have globally,” said Jay Yu, Chairman and President of NANO Nuclear Energy. “With STS, we control a vital link in the nuclear value chain — one that is essential for scaling microreactor deployment, strengthening domestic fuel-cycle resilience, and enabling the advanced nuclear industry to grow. These accomplishments validate our strategy to build a fully vertically integrated nuclear energy company with the infrastructure, expertise, and execution ability needed to support national priorities and commercial customers alike. We are building the logistics backbone required for the next generation of nuclear energy, and these missions demonstrate the impact of that vision coming to life.”
About NANO Nuclear Energy Inc.
NANO Nuclear Energy Inc. (NASDAQ: NNE) is a North American advanced technology-driven nuclear energy company seeking to become a commercially focused, diversified, and vertically integrated company across five business lines: (i) cutting edge portable and other microreactor technologies, (ii) nuclear fuel supply chain, (iii) nuclear fuel transportation, (iv) nuclear applications for space and (v) nuclear industry consulting services. NANO Nuclear believes it is the first portable nuclear microreactor company to be listed publicly in the U.S.
Led by a world-class nuclear engineering team, NANO Nuclear’s reactor products in development include its lead project, the patented KRONOS MMR™ Energy System, a stationary high-temperature gas-cooled reactor that is in construction permit pre-application engagement with the U.S. Nuclear Regulatory Commission (NRC) in collaboration with University of Illinois Urbana-Champaign (U. of I.), ZEUS™, a solid core battery reactor, and the space focused, portable LOKI MMR™, each representing advanced developments in clean energy solutions that are modular, on-demand capable, advanced nuclear microreactors.
Advanced Fuel Transportation Inc. (AFT), a NANO Nuclear subsidiary, bolstered by the May 2026 acquisition of Secured Transportation Services (STS), is led by former executives from the largest transportation company in the world and provides nuclear engineering and materials transport services in the U.S. and globally. Through NANO Nuclear, AFT is the exclusive licensee of a patented high-capacity HALEU fuel transportation basket developed by three major U.S. national nuclear laboratories and funded by the Department of Energy.
HALEU Energy Fuel Inc. (HEF), a NANO Nuclear subsidiary, is focusing on the future development of a domestic source for a HALEU fuel fabrication pipeline for NANO Nuclear’s own microreactors as well as the broader advanced nuclear reactor industry.
NANO Nuclear Space Inc. (NNS), a NANO Nuclear subsidiary, is exploring the potential commercial applications of NANO Nuclear’s developing micro nuclear reactor technology in space. NNS is focusing on applications such as the LOKI MMR™ system and other power systems for extraterrestrial projects and human sustaining environments, and potentially propulsion technology for long haul space missions. NNS’ initial focus will be on cis-lunar applications, referring to uses in the space region extending from Earth to the area surrounding the Moon's surface.
For more corporate information please visit: https://NanoNuclearEnergy.com/
This news release and statements of NANO Nuclear’s management in connection with this news release contain or may contain “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. In this context, forward-looking statements mean statements related to future events, which may impact our expected future business and financial performance, and often contain words such as “expects”, “anticipates”, “intends”, “explore,” “aim,” “plans”, “believes”, “potential”, “will”, “should”, “could”, “would,” “goal,” “aim,” “develop,” “may” or derivatives of these words and other words relating to the future. Specifically, forward-looking statements include those related to the anticipated benefits to NANO Nuclear of the acquisition of STS as well as NANO Nuclear’s development, construction, demonstration, regulatory licensing and commercial plans and strategies generally. These and other forward-looking statements are based on information available to us as of the date of this news release and represent management's current views and assumptions. Forward-looking statements are not guarantees of future performance, events or results and involve significant known and unknown risks, uncertainties and other factors, which may be beyond our control. For NANO Nuclear, particular risks and uncertainties that could cause our actual future results to differ materially from those expressed in our forward-looking statements include but are not limited to the following: (i) risks related to our U.S. Department of Energy (“DOE”), Canadian Nuclear Safety Commission (“CNSC”) or related state or non-U.S. nuclear licensing submissions, (ii) risks related to our vertical integration strategy (notably the integration of STS as contemplated herein) and the development of new or advanced technology and the acquisition of complimentary technology or businesses, including difficulties with design and testing, cost overruns, regulatory delays, integration issues and the development of competitive technology, (iii) our ability to obtain contracts and funding to be able to continue operations, (iv) risks related to uncertainty regarding our ability to technologically develop and commercially deploy a competitive advanced nuclear reactor or other technology in the timelines we anticipate, if ever, (v) risks related to the impact of U.S. and non-U.S. government regulation, policies and licensing requirements, including by the DOE, the U.S. Nuclear Regulatory Commission, including those associated with the recently enacted ADVANCE Act and the May 23, 2025 Executive Orders seeking to streamline nuclear regulation, as well as the CNSC, and (vi) similar risks and uncertainties associated with the operating an early stage business a highly regulated and rapidly evolving industry. Readers are cautioned not to place undue reliance on these forward-looking statements, which apply only as of the date of this news release. These factors may not constitute all factors that could cause actual results to differ from those discussed in any forward-looking statement, and NANO Nuclear therefore encourages investors to review other factors that may affect future results in its filings with the SEC, which are available for review at www.sec.gov and at https://ir.nanonuclearenergy.com/financial-information/sec-filings. Accordingly, forward-looking statements should not be relied upon as a predictor of actual results. We do not undertake to update our forward-looking statements to reflect events or circumstances that may arise after the date of this news release, except as required by law.
The stock market has, through geopolitical conflicts and jittery bubble-fearing uncertainties, once more proven its tenacity and resilience. 2026 has been anything but stable, yet the S&P 500 has clocked an almost 9% gain thus far.
Once again, artificial intelligence (AI) stocks are crushing it, with AI spending expected to hit $2.5 trillion -- roughly the GDP of Canada. The enthusiasm for AI has helped companies even remotely peripheral to the technology, from nuclear stocks supplying the energy to industrial stocks mining for the metals.
Looking ahead over the next 10 or so years, these trends suggest that the following two growth stocks have significant upside potential.
Image source: Getty Images.
1. A company with enough metals to make 280 million electric vehicle batteries TMC The Metals Company (TMC 3.59%) is on the cusp of unlocking a multi-billion opportunity in the deep sea. The metal company and deep-sea miner has exploratory rights to the Clarion-Clipperton Zone (CCZ) in the Pacific Ocean, where a lode of roughly $24 billion sits in the form of polymetallic nodules.
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Nodules -- rocks, bones, fragments of shells that have accumulated the ocean's natural elements over millions of years -- contain four metals crucial for making batteries, including nickel, cobalt, copper, and manganese. Although the company has historically positioned itself as a metal supplier for electric vehicles, copper found in these nodules could be used for cables, transformers, and other parts in data center infrastructure.
TMC doesn't have regulatory approval to mine the nodules, but that may change soon. The U.S. government has been supportive of deep-sea mining, and it recently determined TMC's application was in full compliance. The company estimates it will begin operations in late 2027 -- a major advancement that could send this $5 stock soaring.
2. A truckload of nuclear power Nano Nuclear Energy (NNE 7.62%) is essentially shrinking a nuclear power plant down to the size of a small garage to make it portable on the bed of a semitruck.
The start-up is one of several "novel" nuclear energy companies, including Oklo (OKLO 4.36%) and NuScale Energy (SMR 7.10%), that want to make nuclear power cheaper and faster to build, with far less footprint than the average nuclear power plant.
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Deploying a mini nuclear power plant on a truck has obvious advantages for the AI era, specifically for data centers. These energy-guzzling facilities are popping up everywhere -- and not always where grid power is abundant. Even President Trump has told tech companies to build their own power plants to avoid raising energy prices for consumers.
Nano doesn't have regulatory approval to deploy reactors commercially, but it is participating in government programs that could speed up the process.
Nano and TMC are both speculative stocks, and neither has the fundamentals to support their current market valuations. For aggressive investors, however, both growth stocks have monster potential. Just understand what you're buying: High-risk, high-reward bets on two emerging markets.
For years, governments and industry have discussed the energy trilemma, which is the need for secure, affordable, and low-carbon energy. Following the Paris Climate Accord in 2015, significant emphasis was placed on the low-carbon component as countries and corporations set net-zero emission targets.
Two decades ago, nuclear energy seemed, according to conventional wisdom, to be the product of the bygone Atomic Age. Today, nuclear energy has reemerged as potentially one of the most important power sources of the artificial intelligence (AI) era.
It can be hard, however, to separate fact from fiction, especially when many of the stocks trading today seem driven by speculation and narrative rather than fundamentals. Some of the nuclear stocks I'm about to name -- including Oklo (OKLO 4.36%) and Nano Nuclear Energy (NNE 7.62%) -- have tailwinds strong enough to make a bull case seem obvious and self-evident.
The following three nuclear energy stocks will appeal to different investors -- some to those with more risk tolerance, and some to others who are more aggressive.
Image source: Getty Images.
1. Cameco Cameco (CCJ 7.08%) is one of the largest uranium providers in the world, and the largest publicly traded uranium miner. Together with Kazakhstan's Kazatomprom (the world's largest uranium producer), the two companies produced roughly 50 million pounds of uranium in 2025 -- roughly 86% of the total output among the world's top seven uranium miners.
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Why does Cameco's size matter? Because every nuclear dream runs through it. We can spend all day debating whether Oklo, NuScale, Nano, or some other nuclear start-up will dominate the future. But if more reactors get built, somebody has to supply the uranium. For North America, that somebody is most likely Cameco.
But Cameco's business doesn't stop at mining. It also has a 49% stake in Westinghouse Electric. Fun fact: Westinghouse supplied the reactor technology to the world's first-ever full-scale commercial nuclear power plant. But that's not the fun fact I was referring to.
Westinghouse -- with Cameco and Brookfield Renewable Partners, which owns the other 51% of Westinghouse -- entered into an $80 billion partnership with the U.S. Department of Commerce to build Westinghouse reactors across the U.S.
With uranium demand expected to climb, this is a good uranium stock to hold for the long term.
2. Nano Nuclear Energy Nano Nuclear Energy is developing small nuclear reactors that can fit on the back of a semi truck.
It's also developing its own supply of high-assay, low-enriched uranium (HALEU), a special kind of fuel that many advanced reactors need. Plus, the company's recent acquisition of Secured Transportation Services has given it a foothold in one of the least glamorous, but no less important, parts of the nuclear fuel cycle: moving the stuff from A to B.
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Previously pre-revenue, this acquisition has finally put some dollars (about $7 million in annual revenue) into Nano's very large story. It has also helped Nano move that much closer to the vertically integrated business model that it aspires to create.
Nano is also developing a portable microreactor for space. Given NASA and the Department of Energy's recent interest in developing nuclear power on the moon (and possibly Mars), Nano's expertise in this field could be a future tailwind just waiting to be turned on.
3. Oklo Like Nano, Oklo is developing a small nuclear reactor (Aurora powerhouses). These powerhouses can supply 15 to 75 megawatts (MWs) of electricity apiece, and can be assembled together to support larger power needs, such as those of data centers, industrial facilities, and other remote operations.
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The company had early backing from OpenAI CEO Sam Altman, and the connection with companies developing artificial intelligence has deepened through partnerships with some of its biggest players. Meta, Equinix, and Switch are some of the names comprising its potential customer backlog of 14 gigawatts (GW).
Oklo is currently working its way through the Nuclear Regulatory Commission's licensing process for its commercial powerhouse. Oklo has said its first commercial reactor could begin operations in late 2027 or early 2028, but no hard date has been set yet. Meanwhile, a nearer-term test looms: demonstrating criticality of its pilot reactor before America's 250th birthday on July 4, 2026.
Early connections with tech companies, combined with the White House's support for more nuclear power, made Oklo a market favorite in 2025. The stock is currently trailing the stock market in 2026, though the company still carries a roughly $12 billion market cap. The nuclear start-up could have more growth ahead, but given the uncertainties around its business, only aggressive investors should proceed at this point.
Oklo (OKLO 4.36%) and Nano Nuclear Energy (NNE 7.62%) are early-stage nuclear companies pursuing a similar ambition: How to shrink the nuclear power plant from a sprawling concrete behemoth into something that can fit much closer to the customers who actually need the power.
In this regard, Oklo has its Aurora powerhouse design, while Nano has several designs with epic, mythopoeic names (Kronos, Zeus, and Loki). Some of Nano's reactors are designed to fit on a semi-truck; Oklo's early renderings make its powerhouse look as peaceful as a spa in a mountain cabin.
Image source: Oklo.
Both of these nuclear energy stocks are volatile, speculative, and risky. However, between the two, I think Oklo will be the better pick for most investors. Here's why.
Oklo has the bigger customer pipeline Ever since going public in May 2024, Oklo's name has never been far from the question, "How will artificial intelligence get enough electricity?" While it's not the only novel energy company muscling into the AI space -- Bloom Energy is also there -- its factory-styled modular design has captured the imaginations of tech CEOs whose clean power choices aren't currently wide-ranging.
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Sam Altman, CEO of OpenAI, was an early supporter of Oklo (he served as its first chairman until last April), but his support has been in the background lately. Oklo has now established partnerships with tech giants like Meta Platforms, data center developers like Switch and Equinix, and energy firms like Liberty Energy. Its potential customer pipeline exceeds 14 gigawatts (GW).
Nano has its partnerships too, including a memorandum of understanding to couple its microreactors with the AI infrastructure of Super Micro Computer. Certainly, more collaborative partners could join Supermicro, but Oklo's marquee list is currently longer and could generate more revenue long term.
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Future revenue estimates are also important to consider, since neither company is currently making meaningful sales. In this regard, Nano has gotten a small revenue foothold with its recent acquisition of Secured Transportation Services, which generated $7 million in annual revenue last year. Oklo has also made a meaningful acquisition -- Atomic Alchemy -- that could help it tap into a multibillion-dollar medical isotope market.
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Both companies have strong liquidity. Oklo reported about $2.5 billion in cash and marketable securities on its most recent balance sheet, while Nano reported about $565 million. While both companies are burning cash and reporting losses, their balance sheets should support operations for several years to come.
Both companies have an enormous market opportunity ahead. But if small advanced reactors really do populate the future landscape of energy, Oklo's early support and fortified balance sheet make it better positioned for stronger growth over the long term.
Steven Porrello has positions in Bloom Energy, Nano Nuclear Energy, and Oklo. The Motley Fool has positions in and recommends Bloom Energy, Equinix, and Meta Platforms. The Motley Fool has a disclosure policy.
