Fermi Inc. (NASDAQ: FRMI) stock rose Thursday after the company reported third-quarter results and announced new agreements with an investment-grade hyperscaler. The agreements could accelerate development at Fermi's Project Matador site, despite a wider-than-expected quarterly loss.

Fermi Reports Wider Loss, Rising Debt

Fermi reported a loss of 22 cents per share, wider than analysts' estimate of a 9-cent loss. The company posted a net loss of $141.6 million. General and administrative expenses totaled $142.2 million, including $65.8 million in noncash stock compensation. Expenses also included $21.5 million in financial advisory fees paid through stock issuance.

Fermi has yet to generate revenue as it continues to develop its infrastructure projects. The company ended September with $315.5 million in cash and restricted cash. Fermi invested $133.4 million in property, plant and equipment during the quarter. Fermi reported $958.4 million in outstanding debt, net, reflecting a $463 million increase in borrowings under convertible senior notes and equipment financing facilities.

Hyperscaler Deal Could Unlock 600 MW Of Capacity

Fermi signed agreements with an undisclosed investment-grade hyperscaler to develop 600 megawatts of capacity at Project Matador, starting in 2027. The agreements include a $200 million prepayment and another $15 million for early construction and site development. Fermi and the hyperscaler are also finalizing a $90 million structural steel and building materials purchase agreement. However, Fermi and the hyperscaler are still working toward a definitive long-term lease.

CEO Lee McIntire said the agreements highlight Fermi's ability to deliver permitted power capacity to major technology customers. He added that converting the company's existing customer pipeline into leases could fill Project Matador's current 2.2 gigawatts of capacity.

Separately, Fermi and TensorWave terminated their data center lease and services agreement signed in August 2026. The related AMD credit support agreement also ended.

FRMI Price Action: Fermi shares were up 6.63% at $1.93 at the time of publication on Thursday, according to market data.