REalloys — Second Quarter 2026 Earnings Summary

Financial Performance

• Net revenues for the three months ended June 30, 2026, were $0.8 million, compared to $0.4 million in the second quarter of 2025.
• Net loss for the three months ended June 30, 2026, was $36.8 million ($0.59 per diluted share), compared to a net loss of $2.2 million ($0.05 per diluted share) in the prior-year quarter.
• Net loss for the six months ended June 30, 2026, was $143.5 million ($2.49 per diluted share), compared to a net loss of $3.9 million ($0.11 per diluted share) in the prior-year period.
• The increase in net loss was primarily driven by $32.1 million of non-cash stock-based compensation in the second quarter and $113.9 million in the six-month period.
• GAAP General and Administrative (G&A) expense for the quarter was $36.0 million; excluding $32.1 million in non-cash stock-based compensation, adjusted G&A was approximately $3.9 million.
• Cash balance as of June 30, 2026, was $122.4 million, up from $2.8 million as of December 31, 2025.
• Total assets were $209.8 million as of June 30, 2026, compared to $93.4 million as of December 31, 2025.
• The company maintained a virtually debt-free balance sheet with total liabilities of $19.2 million as of June 30, 2026.
• Net cash provided by financing activities for the six months ended June 30, 2026, was $145.3 million, driven by a $100.0 million private placement of common stock closed in June 2026.
• Net cash used in operating activities for the six months ended June 30, 2026, was $17.7 million.

Guidance and Future Outlook

• The SRC Rare Earth Processing Facility upgrade is expected to commence in the third quarter of 2026, targeting annual capacity of approximately 525 tonnes of NdPr metal, 30 tonnes of dysprosium oxide, and 15 tonnes of terbium oxide.
• Separation trials using recycled mixed rare earth oxide feedstock are planned for the second half of 2026, with potential customer qualification for separated material as early as the fourth quarter of 2026.
• Commercial intake of NdPr metal and dysprosium/terbium oxides from SRC is expected to commence in the third quarter of 2027.
• The Heavy Rare Earth Metallization Facility is targeted for commissioning in the first quarter of 2028 and initial operations in the first half of 2028, with a targeted annual capacity of approximately 50 tonnes of combined dysprosium and terbium oxide feedstock.
• The company believes existing cash resources are sufficient to fund the SRC facility upgrade and Metallization projects through commissioning without additional financing.
• U.S. Army Enhanced Use Lease negotiations at Tooele Army Depot are scheduled to complete by mid-September 2026.

Business Segments and Product Lines

• Revenue growth was driven by sales of rare earth metals and materials from the Euclid facility, including under a Defense Logistics Agency contract.
• Revenue also included subscription revenue from the Blackbox trading analytics platform prior to its deconsolidation on May 5, 2026.
• REalloys has secured supply rights to approximately 80% of the expanded SRC facility's output.
• The company entered non-binding arrangements to explore feedstock supply with U.S. Critical Materials Corp. (Sheep Creek project, Montana), Ramaco Resources, Inc. (Brook Mine, Wyoming), and Patriot Exploration & Mining.

Market and Competitive Landscape

• The company emphasizes the strategic need for secure, traceable, non-Chinese sources of rare earth and magnet materials for North America.
• REalloys is positioning itself to serve the U.S. Department of Defense, the U.S. Department of Energy, NASA, the U.S. Defense Industrial Base, and the broader U.S. Organic Industrial Base.
• The company was selected by the U.S. Army for exclusive negotiations to develop heavy rare earth processing facilities at Tooele Army Depot, Utah.

Risks and Challenges

• Forward-looking statements regarding project timelines, capacity, and negotiations involve significant risks and uncertainties that could cause actual results to differ materially.
• Specific risks are detailed in the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2026, including risks related to feedstock sourcing, capital sufficiency, and leadership transitions.

Management Commentary and Tone

• CEO Leonard Sternheim stated that fully funding the SRC upgrade and Metallization Facility puts flagship strategic projects on a clear path to commissioning.
• Chairman Stephen S. duMont highlighted the company's focus on building a resilient, non-Chinese supply chain for rare earth magnets as a consequential industrial challenge.
• Management noted the addition of public-company financial discipline and hands-on expertise in rare earth processing to the leadership bench.

Other Key Points

• The company closed a $100.0 million private placement of common stock in June 2026.
• Craig Cunningham was appointed Chief Financial Officer effective June 24, 2026, succeeding Robert Winspear.
• Anupam Ghildyal transitioned from Chief Operating Officer to the newly created role of Chief Growth Officer effective September 1, 2026.
• Dr. Muhammad Imran joined as Chief Operating Officer effective September 1, 2026, previously serving as Chief Technology Officer at SRC.
• The six-month net loss included a $9.2 million non-cash accretion charge on the conversion of Series C Convertible Preferred Stock, a $6.4 million non-cash impairment charge related to the EVTEC investment, and a $3.4 million non-cash change in the fair value of contingent consideration.