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Fervo Energy Co. (NASDAQ:FRVO) stock rose Monday after the geothermal energy company reported mixed third-quarter 2026 results, beating earnings estimates despite a revenue miss.
Fervo reported a loss of 7 cents per share, narrower than analysts' estimate of a 9-cent loss.
Revenue rose 111% year over year to $116,000 but missed the $165,375 estimate.
Fervo reported net income of $11.7 million but recorded a net loss attributable to common stockholders of $20.8 million, or 7 cents per share.
The company allocated $31.2 million in net income to redeemable noncontrolling interests.
Net income reflected $15.4 million in interest income, an $11.8 million noncash gain on interest-rate swaps, and a $29.9 million tax benefit from tax credits earned as Cape Phase I assets entered service.
Operating loss widened to $43.7 million from $13.7 million a year earlier.
General and administrative expenses reached $39.4 million, driven by higher stock-based compensation, public company costs, and increased staffing.
Fervo's GeoBlock 1 began commercial operations Sept. 30, ahead of schedule, and is producing about 33 megawatts of power.
GeoBlock 2 has synchronized with the grid and is delivering test energy. Meanwhile, GeoBlock 3 has entered cold commissioning.
Both units remain on track to begin commercial operations by Jan. 1, 2027.
CEO and co-founder Tim Latimer highlighted Cape Station's first power milestone and the company's expanded partnership with Google.
Fervo recently signed a 15-year agreement to supply Google with 396 MW of geothermal power, with initial deliveries expected in mid-2028.
The agreement also includes an option for Google to expand its power purchases by about 600 MW, bringing the potential total to nearly 1 gigawatt.
Fervo now has 1,054 MW under binding power purchase agreements, representing about $11.9 billion in contracted revenue.
That compares with 658 MW and $7.2 billion at the end of the second quarter.
Fervo has completed drilling about 18% of the planned wells at Cape Google 400. The project's first 50-MW turbine set also passed factory acceptance testing.
Third-quarter capital expenditures rose to $256.7 million from $226.5 million in the second quarter.
Fervo ended September with $1.9 billion in unrestricted cash and $301.6 million in total current and long-term debt.
The company forecasts fourth-quarter capital expenditures of $450 million to $500 million.
It also lowered its second-half spending forecast to $700 million to $750 million from $850 million to $900 million.
Fervo maintained its fourth-quarter revenue outlook, which includes the first full quarter of revenue from Cape Station. The company also reaffirmed its 2027 revenue outlook.
Separately, the company was selected for two potential Department of Energy awards totaling about $20 million.
FRVO Price Action: Fervo Energy shares were up 12.16% at $10.16 at the time of publication on Monday, according to market data.
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