Fermi Inc. Common Stock

The call did not include quarterly revenue, EPS, or gross margin figures. Management instead focused on execution milestones and guidance-related targets: a binding TensorWave contract for up to 650 megawatts, an initial 15-year phase for 222 megawatts with about $6.5 billion of revenue, first power targeted in 2027, and site capacity of 640 megawatts by Q4 2027 with the first 210 megawatts available July 1, 2027. Rob Masson said the company closed an upsized offering of more than $430 million of 5% convertible senior notes due 2031, with approximately $382 million of net proceeds after the capped call, and said cash decreased by about 50% during the quarter.

Marius Haas said the quarter proved the new leadership team can execute, repeatedly stressing that Fermi delivered on all five commitments from the prior quarter. His tone was emphatic and confident: he said Fermi is “in a much stronger place now” and that the company has the “single most valuable power and compute site in the market.” Strategically, he framed Fermi as solving the AI industry’s power bottleneck and said the company will keep scaling partnerships, customers, and execution capacity around that thesis.

Robert Masson emphasized balance-sheet strength and capital discipline. He highlighted the upsized offering of more than $430 million of 5% convertible senior notes due 2031, noted about $382 million of net proceeds after the capped call, and said the structure was intended to limit dilution until the stock price “more than doubles.” He also said cash decreased by about 50% during the quarter and reiterated that outflows will be matched to signed deals and actual project progress rather than broad speculative buildout.

Analysts focused on TensorWave economics, capex, margins, timing to revenue, and whether the turnkey model is scalable. Management said the TensorWave arrangement uses a base rent, a fixed power charge, and a variable energy charge that is fully passed through to the customer, and that there is no need to hedge commodity risk. On capex, Masson gave market ranges of $3 million to $4 million per megawatt for power-side costs and $10 million to $12 million per megawatt for turnkey data center costs, while Anna Bofa said revenue commencement should begin in phases around the end of Q3 or early Q4 2027. They also said the investment-grade backstop is expected in the coming days and will cover the full 15 years, and that other deals are far along with both neoclouds and hyperscalers.