Deep Isolation Reports Decline in Revenue and Increased Losses for Q2 2026

Deep Isolation Nuclear, Inc. reported a decline in financial performance for the second quarter of 2026, with revenues of $1.32 million, a decrease of 19% from $1.63 million in the same period of 2025. For the first half of 2026, the company generated $2.77 million in revenue, down 12% from $3.15 million year-over-year. The decrease in revenue was primarily attributed to the completion of certain projects in 2025, which led to lower activity levels. The company's gross profit for the second quarter was $0.71 million, compared to $1.47 million in the prior year, reflecting a gross margin contraction.

Operating expenses surged significantly, totaling $3.95 million for the second quarter of 2026, up 76% from $2.25 million in the same quarter of 2025. This increase was driven by higher selling, general, and administrative expenses, which rose by 24% to $2.75 million, largely due to increased accounting, legal, and travel costs, as well as the hiring of seven new employees, including a Chief Financial Officer and General Counsel. Research and development expenses also increased to $1.18 million, reflecting investments in the company's non-radioactive, full-scale demonstration of its deep borehole disposal technologies.

The company reported a net loss of $3.04 million for the second quarter of 2026, a 123% increase from a loss of $1.36 million in the same quarter of 2025. For the first half of 2026, the net loss reached $8.45 million, compared to a loss of $1.53 million in the prior year. The increase in losses was attributed to the aforementioned rise in operating expenses and a decrease in revenue. The company’s accumulated deficit stood at $40.96 million as of June 30, 2026.

In terms of operational developments, Deep Isolation has been actively pursuing strategic initiatives, including a Master Services Agreement with Halliburton for the construction of a demonstration test well in Texas. The company was also selected for the U.S. Department of Energy’s SCALEUP Ready program, which could provide up to $20 million in grant funding to support the commercial deployment of its Universal Canister System. Additionally, the company announced its selection as the sole industrial partner on three federal grants under the DOE's Project GENESIS program, aimed at advancing AI-enabled repository site screening and design for nuclear waste disposal.

Looking ahead, Deep Isolation anticipates continued operating losses as it invests in research and development and seeks to validate its deep borehole disposal technologies through a planned demonstration project. The company expects to incur approximately $16.3 million in investments and operating expenses over the next twelve months, with a significant portion allocated to the demonstration program. Despite the challenges, management remains optimistic about the potential for future growth and market adoption of its nuclear waste disposal solutions, contingent upon successful demonstration outcomes and favorable regulatory developments.