Fermi (NASDAQ:FRMI) Releases Earnings Results

Fermi (NASDAQ:FRMI) issued its quarterly earnings data on Thursday. The company reported ($0.30) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.05) by ($0.25), FiscalAI reports.

Here are the key takeaways from Fermi’s conference call:

• Fermi framed the quarter as a major transition to “Fermi 2.0,” highlighted by leadership changes, a board expansion, and an active search for a permanent CEO intended to strengthen governance and execution.
• Management said commercial engagement has improved materially, with stalled tenant discussions restarting, new prospects entering the data room, and multiple site visits from hyperscalers and partners validating Project Matador’s readiness.
• The company emphasized key regulatory progress, including receipt of a 6 GW clean air permit and the filing of an additional 5 GW gas permit, which it expects to be approved by Q4 2026.
• Operationally, Fermi said Project Matador continues to advance, with major infrastructure in place and about 2.2 GW of natural gas generation equipment secured, positioning the site for rapid mobilization once a lease is signed.
• Financially, the company reported a $189 million net loss for the quarter, but said most of it was non-cash; it ended with $243 million in cash and nearly $1 billion of financing commitments, while stressing a more disciplined capital deployment approach going forward.

Fermi Stock Down 8.2%

Shares of NASDAQ:FRMI traded down $0.61 during mid-day trading on Friday, reaching $6.77. 11,008,088 shares of the stock were exchanged, compared to its average volume of 11,747,717. The stock’s 50 day simple moving average is $6.27 and its 200-day simple moving average is $10.68. Fermi has a one year low of $4.47 and a one year high of $36.99. The company has a market cap of $4.31 billion and a P/E ratio of -8.08.

Analyst Ratings Changes

Several analysts recently commented on the company. Citizens Jmp started coverage on Fermi in a research note on Monday, February 9th. They set a “market outperform” rating and a $30.00 price objective on the stock. Wall Street Zen lowered Fermi from a “hold” rating to a “sell” rating in a research report on Sunday, May 10th. Texas Capital upgraded Fermi to a “strong-buy” rating in a report on Tuesday, January 20th. Evercore cut Fermi from an “outperform” rating to an “in-line” rating and set a $11.00 target price for the company. in a research note on Friday. Finally, Citigroup began coverage on shares of Fermi in a report on Monday, February 9th. They set an “outperform” rating on the stock. Two analysts have rated the stock with a Strong Buy rating, seven have issued a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus price target of $23.78.

Insider Transactions at Fermi

In related news, COO Blanes Jacobo Ortiz sold 427,363 shares of the stock in a transaction on Thursday, April 9th. The shares were sold at an average price of $4.58, for a total transaction of $1,957,322.54. Following the completion of the transaction, the chief operating officer owned 5,469,092 shares in the company, valued at approximately $25,048,441.36. This represents a 7.25% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, major shareholder Griffin Perry sold 9,000,000 shares of the firm’s stock in a transaction on Monday, March 30th. The shares were sold at an average price of $5.02, for a total transaction of $45,180,000.00. Following the completion of the transaction, the insider directly owned 62,946,450 shares of the company’s stock, valued at approximately $315,991,179. This trade represents a 12.51% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders sold 13,435,207 shares of company stock worth $67,803,539.

Institutional Trading of Fermi

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. Renaissance Technologies LLC grew its position in Fermi by 311.3% during the first quarter. Renaissance Technologies LLC now owns 1,403,700 shares of the company’s stock worth $8,198,000 after buying an additional 1,062,400 shares in the last quarter. Arrowstreet Capital Limited Partnership bought a new position in Fermi in the first quarter valued at approximately $527,000. Cetera Investment Advisers raised its position in Fermi by 3,262.3% during the first quarter. Cetera Investment Advisers now owns 1,201,098 shares of the company’s stock valued at $7,014,000 after purchasing an additional 1,165,376 shares in the last quarter. Bank of New York Mellon Corp boosted its holdings in shares of Fermi by 186.8% in the 1st quarter. Bank of New York Mellon Corp now owns 98,819 shares of the company’s stock valued at $577,000 after purchasing an additional 64,369 shares in the last quarter. Finally, Sanctuary Advisors LLC bought a new position in shares of Fermi in the 1st quarter valued at $154,000.

Key Headlines Impacting Fermi

Here are the key news stories impacting Fermi this week:

• Positive Sentiment: Fermi said it is making progress on its AI power-campus strategy, including securing more than 2 GW of power generation, advancing about 11 GW of permitted capacity at Project Matador, and closing roughly $785 million in new equipment financing, which supports the long-term growth story. Article Title
• Positive Sentiment: The company reiterated that it is targeting a binding tenant agreement within 90 days and expects a major permit milestone by Q4, which keeps investors focused on future commercialization rather than just current losses. Article Title
• Positive Sentiment: Market chatter around a new lease deal helped fuel Thursday’s big jump in the stock, and unusually heavy call-option buying suggests traders were positioning for more upside. Article Title
• Positive Sentiment: Brokerage sentiment remains constructive overall, with Fermi receiving an average “Moderate Buy” recommendation and a recent $11 price target from Evercore despite the downgrade. Article Title
• Neutral Sentiment: Fermi also tightened governance rules and amended bylaws to make board changes harder, a move that may stabilize control but could add to the ongoing leadership dispute. Article Title
• Negative Sentiment: The company reported a first-quarter loss of about $189 million, with EPS of $0.30 loss per share, far wider than expected, highlighting the cost of accelerating project investment. Article Title
• Negative Sentiment: Evercore downgraded Fermi Inc. (FRMI) from “outperform” to “in-line,” which may temper enthusiasm after the recent rally, even though the firm still sees upside to its new target. Article Title

About Fermi

Fermi’s mission is to power the artificial intelligence (“AI”) needs of tomorrow. We are an advanced energy and hyperscaler development company purpose-built for the AI era. Our mission is to deliver up to 11 gigawatts (“GW”) of low-carbon, HyperRedundant™, and on-demand power directly to the world’s most compute-intensive businesses with 1.1 GW of power projected to be online by the end of 2026. We have entered into a long-term lease on a site large enough to simultaneously house the next three largest data center campuses by square footage currently in existence.