Fervo Energy Inc. (NASDAQ:FRVO) stock climbed on Monday after the geothermal energy company announced a partnership with NVIDIA Corp. (NASDAQ:NVDA) and the Pacific Northwest National Laboratory to develop an artificial intelligence platform for geothermal energy, overshadowing its first quarterly earnings miss as a public company.
The stock gained more than 6% during Monday’s session.
NVIDIA Partnership Drives Optimism
Fervo said it entered a three-way collaboration with NVIDIA and the Pacific Northwest National Laboratory to develop EGS-Twin, a digital twin platform for enhanced geothermal systems.
The platform will use field data from Fervo’s geothermal operations in Utah and Nevada to train AI models on NVIDIA’s computing infrastructure, with deployment of the platform targeted by 2029.
Those models will be integrated into NVIDIA Omniverse libraries, allowing developers to simulate subsurface conditions, improve drilling efficiency and optimize geothermal power production.
Investors Look Beyond First Post-IPO Earnings
The partnership announcement came alongside Fervo’s first earnings report since completing its Nasdaq initial public offering in May.
Fervo reported first-quarter revenue of $61,000. Revenue missed the analyst estimate of $480,000.
The company reported a GAAP net loss per share attributable to common stockholders of $3.72, missing the analyst estimate for a loss of 10 cents per share.
Losses Widen As Project Spending Rises
Operating loss widened to $20.1 million from $9.9 million, while net loss widened to $31.8 million from $9.1 million.
Capital expenditures rose to $172.8 million from $105.4 million, reflecting continued investment in Cape Station development and construction.
“This is the geothermal decade, and Fervo is leading the charge,” said Tim Latimer, CEO and Co-founder of Fervo. Latimer cited the company’s IPO, progress at Cape Station, and contracted power agreements.
“With 658 megawatts of contracted power purchase agreements and a 3-gigawatt geothermal framework agreement with Google, Fervo is well positioned to deliver the clean, firm 24/7 power this country needs.”
IPO, Google Deal Strengthen Pipeline
Fervo completed its Nasdaq IPO on May 14, issuing 80.5 million Class A shares at $27 per share and raising about $2.2 billion in gross proceeds, including the full exercise of the underwriters’ overallotment option.
The company also executed a geothermal framework agreement with Alphabet Inc.’s (NASDAQ:GOOGL) Google to support development of up to 3 gigawatts of geothermal capacity through 2033. Fervo has 658 megawatts of contracted power purchase agreements.
Cape Station Development Advances
Cape Station Phase I, an approximately 100-megawatt project, remains on track for first power in the fourth quarter of 2026. GeoBlock Unit 1 commissioning is underway, while GeoBlocks 2 and 3 are expected to reach commercial operation in the first quarter of 2027.
Cape Station Phase II, a 400-megawatt expansion, began construction in the first quarter, with commercial operation expected in 2028.
During the earnings call, management said customer demand remains strong despite the project still being under construction. “Customers are not really waiting for more milestones at Cape Phase 1 before advancing commercially,” Latimer said, adding that “speed to power continues to be the thing that dominates the procurement narrative.”
Management said behind-the-meter projects could accelerate pre-2030 development by easing interconnection constraints.
Fervo also clarified that all 100 megawatts of Cape Phase I transmission is fully contracted, while 300 megawatts of Cape Phase II’s 400 megawatts is contracted.
Balance Sheet And Outlook
Fervo secured $421.4 million in non-recourse project financing for Cape Station Phase I. Cash and cash equivalents were $280.8 million as of March 31, compared with $461.8 million at year-end.
The company expects about $1.2 billion in capital expenditures from the second quarter of 2026 through the first quarter of 2027, primarily for Cape Station construction and other GeoCluster development.
Fervo Energy has a consensus price forecast of $45.90 based on ratings from 11 analysts. The high forecast is $51 from Piper Sandler, while the low is $40 from Bank of America Securities, both issued on June 8, 2026.
The three most recent ratings came from Bernstein, Roth Capital, and Piper Sandler, with an average forecast of $47.67, implying 28.86% upside for Fervo Energy.
FRVO Stock Price Activity: Fervo Energy shares were up 6.18% at $37.26 at the time of publication on Monday, according to Benzinga Pro data.
Photo by Samuel Boivin via Shutterstock
