1Q26 Results Largely Align; Tracking Towards Cape 1 COD; Maintain OW Rating and Analyst Focus List

Research evidence excerpt

1Q26 Results Largely Align; Tracking Towards Cape 1 COD; Maintain OW Rating and Analyst Focus List

J P M O R G A N North America Equity Research

22 June 2026

Fervo Overweight

FRVO, FRVO US

1Q26 Results Largely Align; Tracking Towards Cape 1 Price (18 Jun 26):$35.09

COD; Maintain OW Rating and Analyst Focus List Price Target (Dec-27):$47.00

FRVO reported 1Q results largely aligned with expectations, and the company Clean Energy, Power Infrastructure,

remains on track for COD of the Cape 1 project in phases during 4Q26 and 1Q27. and Sustainable Investing

The company announced a partnership with NVDA and Pacific Northwest Mark Strouse, CFA AC

National Lab to create a digital twin of FRVO’s well performance data, which we (1-212) 622-8244

believe could support the company’s ability to lower project costs. Lastly, the mark.w.strouse@jpmorgan.com

company discussed several avenues for investing the excess proceeds received Michael G Fairbanks

during the IPO, which we believe could drive faster and/or more profitable growth (1-212) 622-4908

over the next several years. We are leaving our estimates largely unchanged. We michael.fairbanks@jpmchase.com

view COD of Cape 1, as well as further interconnection and contract Anna Zhu

(1-212) 622-0012

announcements as primary catalysts. Maintain Overweight. FRVO is a JPM anna.zhu@jpmorgan.com

Analyst Focus List pick. J.P. Morgan Securities LLC

• 1Q results largely align. FRVO reported a 1Q PF EBITDA loss of ~$20mm

on less than $1mm in revenue, largely aligned with our expectations ($18mm Key Changes (FYE Dec)

PF EBITDA loss/$0 revenue). The company did not issue FY26 guidance Prev Cur Δ

though reiterated plans for the first phase of Cape 1 (~33 MW) to reach COD Adj. EBITDA - 26E ($ mn) (64) (66) -3.7%