USA Rare Earth — Q2 2026 Earnings Summary

Financial Performance

• Q2 2026 revenue was $5.8 million, compared to $0 in Q2 2025; six-month revenue was $11.5 million, compared to $0 in the same period in 2025.
• Net loss attributable to USA Rare Earth, Inc. for Q2 2026 was $10.3 million ($0.05 per diluted share), compared to a net loss of $142.5 million ($1.54 per diluted share) in Q2 2025.
• For the six months ended June 30, 2026, net loss attributable to USA Rare Earth, Inc. was $77.3 million ($0.37 per diluted share), compared to $90.7 million ($0.99 per diluted share) in 2025.
• Loss from operations for Q2 2026 was $46.3 million, compared to $8.8 million in Q2 2025; for the six months ended June 30, 2026, it was $83.0 million, compared to $17.5 million in 2025.
• Adjusted net loss attributable to USA Rare Earth, Inc. for Q2 2026 was $33.5 million ($0.15 per diluted share), compared to $19.1 million ($0.21 per diluted share) in Q2 2025.
• Adjusted net loss for the six months ended June 30, 2026, was $57.6 million ($0.27 per diluted share), compared to $28.0 million ($0.31 per diluted share) in 2025.
• Cash and cash equivalents as of June 30, 2026, were $1.53 billion, up from $360 million as of December 31, 2025.
• Net cash used in operating activities for the six months ended June 30, 2026, was $75.3 million, compared to $18.2 million in 2025.
• Net cash provided by financing activities for the six months ended June 30, 2026, was $1.42 billion, primarily driven by $1.5 billion in proceeds from PIPE financing.
• Total assets as of June 30, 2026, were $3.0 billion, compared to $695 million as of December 31, 2025.
• Total liabilities as of June 30, 2026, were $451.5 million, compared to $191.8 million as of December 31, 2025.
• Stockholders' equity as of June 30, 2026, was $2.54 billion, compared to $494.3 million as of December 31, 2025.

Guidance and Future Outlook

• The company expects to complete the Round Top Definitive Feasibility Study (DFS) in Q4 2026, with publication expected in Q1 2027.
• The company targets reaching 600 metric tons per annum (MTPA) of run-rate magnet manufacturing capacity at the Stillwater facility by Q4 2026.
• The company plans to evaluate metal making and alloy capacity at LCM to optimize for customer demand and geographic distribution.
• The new Blacksburg, South Carolina facility is targeted to begin commissioning in 2028.
• The company projects total domestic production capacity to reach 10,000 tpa of NdFeB rare earth magnets and 10,000 tpa of heavy rare earth strip-cast, metal, and alloy upon completion of the Stillwater expansion and Blacksburg facility.
• The company expects swarf processing to support up to 30% of future magnetic rare earth oxide feedstock needs.

Business Segments and Product Lines

• Commissioned a hydrometallurgical demonstration facility in Wheat Ridge, Colorado, targeting heavy rare earth oxide production in Q3 2026.
• Successfully produced commercial-grade dysprosium (Dy) oxide and neodymium-praseodymium (NdPr) oxide samples from recycled rare earth magnet swarf in July 2026.
• Completed the first commercial pour of 2N–2N5 (99%–99.5% purity) yttrium metal at the LCM facility in Cheshire, UK, in April 2026.
• Selected Blacksburg, South Carolina, as the site for a new magnet manufacturing and refined metals operation with a target capacity of 6,400 tpa of NdFeB magnets and 5,000 tpa of strip-cast metal and alloy.
• Announced an investment in Carester SAS, a French rare earth processing specialist, to unite technological expertise and production capacity.
• Expanded commitment to France with plans for over €175 million in investment and 300+ new jobs by 2030, building upon the LCM Lacq facility and Carester investment.

Market and Competitive Landscape

• USA Rare Earth positions itself as one of the few Western producers capable of processing recycled rare earth magnet scrap (swarf) and producing commercial-grade yttrium metal outside of China.
• The company views its agreements with the U.S. Department of Commerce as validation of its asset base and business model in the context of a secure, non-China supply chain.
• The acquisition of Serra Verde Group would secure the only large-scale producer of vital Heavy Rare Earth Elements (HREEs) outside Asia.
• The company serves customers across the aerospace, defense, semiconductor, industrial motor, heavy equipment, mobility, healthcare, and energy sectors.

Risks and Challenges

• Risks include the potential failure to consummate the proposed transactions with Serra Verde and Carester on anticipated timelines or at all.
• The company faces risks related to the integration of operations, expected synergies, and financial performance from acquisitions.
• Political, economic, regulatory, tax, and currency risks are associated with Serra Verde's operations in Brazil and Switzerland.
• The company assumes substantial indebtedness under Serra Verde's Retained Finance Agreement, which contains restrictive covenants.
• There is a risk that the planned CEO transition is contingent on the timely closing of the Serra Verde acquisition.
• The company faces risks regarding the ability to commercially extract minerals from the Round Top deposit, raise necessary capital, and meet customer specifications.
• Potential dilution to existing stockholders and adverse effects on stock price may occur if additional equity is issued.
• Geopolitical developments, including export/import policies of China, the U.S., or other countries, could impact the business.
• The receipt of funding from the U.S. Department of Commerce is subject to achieving milestones which may not be met on the expected timeline.

Management Commentary and Tone

• CEO Barbara Humpton stated that Q2 2026 marked a period of "decisive progress" and that the company is moving from assembling operations to delivering for customers.
• Humpton expressed confidence in the company's assets, operations, and team to establish itself as the global leader in rare earths.
• The company announced the retirement of Barbara Humpton as CEO and Board Director on October 1, 2026, to be succeeded by Thras Moraitis, current CEO of Serra Verde Group.
• Chaitan Kansal was appointed Chief Commercial Officer in April 2026, bringing over 25 years of experience in critical minerals and specialty chemicals.

Other Key Points

• Finalized definitive agreements with the U.S. Department of Commerce to unlock up to $1.6 billion in funding under the CHIPS Act program ($277 million in federal funding and $1.3 billion in senior secured loan capacity).
• Announced a definitive agreement to acquire 100% of Serra Verde Group for approximately $2.8 billion in April 2026.
• Closed the acquisition of Texas Mineral Resources Corp. (TMRC) in August 2026, making USA Rare Earth the sole operator and 100% economic beneficiary of the Round Top project.
• Entered into definitive agreements to acquire a 13.6% minority stake in Carester SAS in July 2026.
• Awarded a $14.2 million grant from the Texas Semiconductor Innovation Fund in May 2026 to accelerate the Round Top heavy rare earth project.
• Selected for up to $19.3 million in funding from the U.S. Department of Energy under the Critical Minerals Innovation, Efficiency and Alternatives program in May 2026.
• The acquisition of Serra Verde includes a 15-year 100% offtake agreement with price floors.
• The new Blacksburg facility is expected to create about 490 high-skill, high-wage jobs.
• The Texas Semiconductor Innovation Fund grant is expected to support a project generating approximately 260 new jobs and representing over $1.4 billion in capital investment in West Texas.