Oklo’s Contradictory PJM Timelines and Regulatory Pathway Claims Don’t Align

Date of Call: Aug 7, 2026

Guidance:

• Updated 2026 cash use for operating activities expected to be $120M-$150M (prior range $80M-$100M).
• Updated 2026 cash use for purchases of PP&E expected to be $400M-$500M (prior range $350M-$450M).
• Spending profile weighted towards second half of the year.
• Strong balance sheet of $3B in cash and marketable securities supports execution.

Business Commentary:

Integrated Nuclear Platform Development:

• Oklo is advancing its vertically integrated nuclear technology platform with substantial progress across power, fuel, and isotopes business lines.
• The company is leveraging acquisitions, such as ARMEC and Creative Engineers, to strengthen its manufacturing, engineering, and systems capabilities.
• This strategy aims to build shared capabilities that support all three business lines and reduce future supply chain constraints.

Aurora-INL and Regulatory Milestones:

• The Aurora-INL project has achieved significant regulatory milestones, including the approval of the preliminary documented safety analysis (PDSA).
• This approval is a crucial step in establishing the safety basis for the facility, enabling continued advancement towards final design and construction.
• The experience gained from the Groves facility is directly informing the execution strategy for Aurora-INL, reducing execution risk.

Financial Performance and Capital Utilization:

• Oklo reported a year-to-date net loss of $81.6 million, with cash and marketable securities totaling $3 billion as of the second quarter.
• The company's capital spending is being strategically allocated to accelerate procurement and construction activities for its first-of-a-kind deployments.
• The financial strategy supports securing critical path items and prioritizing project schedules to ensure successful execution of its nuclear projects.

Isotope Production and Revenue Potential:

• The Groves facility achieved first criticality in less than a year, marking a significant milestone for isotope production.
• Oklo anticipates producing R&D quantities of isotopes in about 12 months, with potential revenue from its Idaho Radiochemistry Lab likely in the first part of next year.
• Commercial discussions for off-take agreements are ongoing, indicating strong market interest in Oklo's isotope products.

Fuel Strategy and Diversification:

• Oklo is developing a diversified domestic fuel supply strategy, involving commercial HALEU, government materials, and recycling pathways.
• The company is advancing a letter of intent with Centrus to supply HALEU for up to five Aurora powerhouses, ensuring fuel availability for initial deployments.
• This multi-pronged approach is designed to mitigate fuel constraints and support long-term supply security for its reactor fleet.

Sentiment Analysis:

Overall Tone: Positive

• Management highlighted 'record-setting pace' for Groves criticality, 'remarkable' execution, and 'strong demand' from customers. Stated 'we are now demonstrating that we can execute,' and that 'every time we do something, it creates more credibility.' Acquisitions of ARMEC and CEI are described as adding 'specialized engineering, manufacturing, testing' capabilities. Overall, the tone is confident, focusing on progress, capability building, and market opportunities.

Q&A:

• Question from Nathaniel Pendleton (Texas Capital): Can you update on plutonium allocation timeline and how measured reactivity coefficients compared to models?
  Response: Plutonium allocations are still pending DOE engagement; the total available is about 20 tons. The Flattop campaign validated strong reactivity feedback coefficients, with the system responding very quickly and responsively, akin to an F1 car.

• Question from George Gianarikas (Canaccord Genuity): What is the radioisotope production roadmap at Groves and when will first revenue be recognized?
  Response: First isotope production expected in about 12 months; initial revenue more likely from the Idaho Radiochemistry Lab in the first part of next year.

• Question from Joseph Osha (Guggenheim): What is the order of fuel operations for Aurora-INL?
  Response: Multi-pronged fuel strategy: initial loads from EBR-II, bridged by blended plutonium fuel, with Centrus HALEU coming online later; recycling will provide long-term fuel independence.

• Question from Ryan Pfingst (B. Riley Securities): How could the Nuclear Lifecycle Innovation Campuses program benefit the Advanced Fuel Center in Tennessee?
  Response: The program could bring capital and resources to create regional 'energy super campuses' that integrate recycling, fuel fabrication, and reactor development, unlocking economic potential from used nuclear fuel.

• Question from Brian Lee (Goldman Sachs): What is being pulled forward with higher CapEx, and why is OpEx growing?
  Response: Capital is being pulled forward for long-lead procurement and grid interconnection for Aurora-INL to ensure critical path is met. OpEx growth is due to headcount additions in engineering/technical roles and expensing more first-of-a-kind project costs.

• Question from Christopher Souther (Truist): What is the all-in spend at Aurora-INL with Kiewit, and is full fuel secured?
  Response: Full cost details not yet provided; discussions ongoing to narrow numbers. Fuel confidence is high from Centrus HALEU and potential plutonium sources to run at full power.

• Question from Jeremy Tonet (J.P. Morgan): Are there other M&A areas of interest, and has progress impacted commercial conversations?
  Response: Continuously evaluating M&A opportunities to accelerate asset deployment capability. Progress creates more credibility and helps advance commercial offtake discussions.

• Question from Rini Singh (Bank of America): What gives customers the most confidence, and what are the key pathways to watch?
  Response: Customers are looking to regulatory acceleration, fuel availability, procurement/execution, and capital. Oklo's fuel diversification strategy increasingly resonates as a key deconstraining factor.

• Question from Derek Soderberg (Cantor Fitzgerald): What is the status of PJM interconnection applications and potential setbacks?
  Response: Actively participating in PJM interconnection process with multiple opportunities; turnaround time is the key watch point, with expertise being applied to stay on top of it.

• Question from Jed Dorsheimer (William Blair): Will advanced reactors go through a down selection, and how to resolve data center perception challenges?
  Response: A vibrant ecosystem of different reactor types will serve varied needs. For data centers, the industry needs to better tell its story, engage communities, and address misinformation, similar to the nuclear renaissance driven by internet access.

• Question from Max Hopkins (CLSA): How is AI accelerating Oklo's strategy and time to commercialization?
  Response: AI is significantly accelerating design analysis, fuel validation, and reactor characterization, reducing design cycles from weeks/months to hours, and improving cost-effectiveness and power output.

• Question from Sherif Elmaghrabi (BTIG): Why isn't plutonium-blended LEU a long-term answer for reactor power?
  Response: Plutonium is a limited inventory and serves as a bridging fuel. The terminal state is fast reactors using recycled transuranic-bearing fuel, which offers nearly limitless material and lower cost.

• Question from Craig Shere (Tuohy Brothers): How does Aurora's thermal output compare to SMR peers for high-temperature gas-cooled designs?
  Response: Aurora can serve most process heat markets below 450°C effectively. Higher temperature opportunities are marginal and economically challenged due to material costs; sodium reactors offer advantages at lower temps where most demand exists.

Contradiction Point 1

PJM Interconnection Approval Timeline

Contradiction on whether the PJM process is disconnected from the NRC timeline or is a key interconnected path.

Derek Soderberg (Cantor Fitzgerald) - Derek Soderberg (Cantor Fitzgerald)

2026Q2: Oklo is actively participating in the PJM interconnection process with multiple opportunities. The key watch point is the turnaround time. The company has a dedicated team and expertise to manage this process and is not relying on a single path to grid connection. - [Craig Bealmear](CFO)

What is the current status of PJM interconnection applications for the near-term roadmap and any potential setbacks? - Sherif Elmaghrabi (BTIG)

2026Q1: The timeline for PJM interconnection approval is measured in months to more than a year and is disconnected from the nuclear regulatory process (NRC). - [Craig Bealmear](CFO)

Contradiction Point 2

Regulatory Pathway for DOE to NRC License Conversion

Contradiction on whether the Part 57 framework is the intended pathway for converting DOE-authorized assets to NRC licenses.

Jeremy Tonet (J.P. Morgan) - Jeremy Tonet (J.P. Morgan)

2026Q2: Every project milestone creates more credibility and helps advance customer discussions about deployment and supply. - [Craig Bealmear](CFO) (Implied focus on traditional licensing pathways for customer projects)

Have recent milestones achieved affected the pace or tone of customer offtake discussions? - Brian Lee (Goldman Sachs)

2026Q1: [Part 57] framework allows for multiple licensing pathways and can accommodate the conversion of DOE-authorized assets to NRC licenses. It is intended to be used for most of Oklo's future plants, including likely the conversion of the Aurora-INL asset. - [Jake DeWitte](CEO)

Contradiction Point 3

Plutonium Allocation Timeline and Specifics

Contradiction on the clarity and immediacy of DOE's plutonium allocation process.

What were the key factors driving revenue growth in Q2? - Nathaniel Pendleton (Texas Capital)

2026Q2: The DOE has moved forward with Oklo in the allocation process, but specifics are still pending. - [Craig Bealmear](CFO), [Jake DeWitte](CEO)

Can you provide an update on the timeline for plutonium allocations? Following the Flattop campaign, how did the measured reactivity coefficients compare to your models, especially regarding the delayed neutron fraction below U-235? - Vikram Bagri (Citi)

2025Q4: DOE is reviewing RFA applications, and updates are expected this quarter. - [Craig Bealmear](CFO), [Jake DeWitte](CEO)

Contradiction Point 4

Aurora-INL Project Nuclear Heat Production Timeline

Contradiction on the target completion date for the first Aurora reactor's heat production.

Brian Lee (Goldman Sachs) - Brian Lee (Goldman Sachs)

2026Q2: The increased capital spend... is primarily for long-lead-time procurement and grid interconnection work for the Aurora-INL project, not for accelerating the 2028 timeline but to ensure critical path items are secured. - [Craig Bealmear](CFO)

Can you detail the specific areas being accelerated under the higher CapEx budget, quantify the acceleration, and explain the step-up in OpEx? - Vikram Bagri (Citi)

2025Q4: The target remains a 2028 timeline for nuclear heat production, with aggressive efforts to meet it. - [Craig Bealmear](CFO), [Jake DeWitte](CEO)

Contradiction Point 5

Regulatory Pathway for INL Project

Contradiction on whether an NRC license is still required.

Jeremy Tonet (J.P. Morgan) - Jeremy Tonet (J.P. Morgan)

2026Q2: Every project milestone creates more credibility and helps advance customer discussions about deployment and supply. - [Craig Bealmear](CFO)

Have recent milestones affected the pace and tone of commercial offtake discussions? - Ryan Pfingst (B. Riley)

20251112-2025 Q3: No longer need to do a [cola] (Combined License) application with the NRC as the project now goes through the DOE authorization process. - [Jacob Dewitte](CEO)