Uranium stocks have had a volatile ride over the past year, and NexGen Energy (TSX:NXE) is no exception. Between shifting commodity prices, equity market jitters, and regulatory delays in the nuclear sector, many investors are left wondering: Is this uranium developer a buy, sell, or hold?
Let’s take a closer look at the company’s recent financials and fundamentals to sort through the noise and help answer that question.
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Development stage
NexGen isn’t a producer yet. It remains a development-stage company focused on uranium exploration in Canada, with its flagship project being the Rook I property in the Athabasca Basin. That means it’s not generating any revenue, so instead, investors must look at cash reserves, spending habits, and valuation relative to its future potential.
As of March 31, 2025, NexGen reported cash of $434.6 million, down from $476.6 million at the end of December 2024. That drop isn’t unexpected. NexGen spent over $28 million on exploration and evaluation activities in the first quarter alone, signalling it’s aggressively pushing forward on its development plans. While these expenses are necessary to get Rook I into production, they also burn through capital quickly. Cash burn was made worse by another $6.3 million in investments, mostly into IsoEnergy, the company in which NexGen now holds a 31.8% equity stake.
That brings us to one of the most painful parts of this quarter: the markdown in NexGen’s investment in IsoEnergy. The energy stock recorded an $81 million impairment on that stake, alongside a $8 million dilution loss. In total, NexGen posted a net loss of $50.9 million for the quarter, widening from $34.6 million a year earlier. Comprehensive losses ballooned to $81.3 million, thanks largely to market-to-market hits on its debentures and other equity holdings.
So why buy?
So what’s keeping investors in the name? Despite the loss, NexGen still boasts a strong balance sheet. It ended Q1 with total assets of $1.6 billion and shareholder equity of $1.1 billion. It also has nearly $614 million in exploration and evaluation assets and $341 million in strategic inventory. That gives it significant optionality when uranium prices move. And with uranium hovering around US$71 per pound at writing, there’s plenty of incentive to get Rook I online as soon as possible.
But getting there may take time. The energy stock still holds $424.3 million in convertible debentures, and while it gained on those securities this quarter due to market moves, the interest burden isn’t light. It paid $11.6 million in interest on those debentures in just three months. There’s also the ever-present risk that regulatory or construction delays could push back revenue generation even further.
Buy, sell, or hold?
If you’re a short-term investor hoping for a quick pop, NexGen may not be your best bet. Its losses widened, its equity stake in IsoEnergy shrank in value, and the path to production remains costly. That makes it a risky play in the near term, especially if uranium prices falter or financing dries up.
However, for long-term investors willing to stomach volatility, NexGen still has a lot going for it. It holds one of the most promising uranium projects in Canada, it’s backed by a solid cash position, and it’s actively investing to get into production. If you believe in the long-term growth of nuclear power, especially with growing global support for clean energy, then NexGen could be a well-timed bet.
Bottom line
The market certainly hasn’t made up its mind yet. Shares are up about 16% in the last year, but remain well below their 2024 peak. That could offer a reasonable entry point for long-term believers, but only if you can handle some short-term uncertainty.
In short, NexGen Energy isn’t a slam-dunk buy right now, but it’s far from a sell. The fundamentals support a hold for most, and a speculative buy for those who believe uranium is entering a golden age. Just make sure you’re not banking on quick returns. With NexGen, patience is key.
