USA Rare Earth — Q3 2026 Earnings Summary

Financial Performance:

• Q3 2026 revenue was $3.0 million, compared to $0 in Q3 2025; nine-month revenue was $14.5 million, compared to $0 in the same period of 2025.
• Net income attributable to USA Rare Earth, Inc. for Q3 2026 was $11.7 million, a significant improvement from a net loss of $156.7 million in Q3 2025; for the nine months ended September 30, 2026, the company reported a net loss of $65.6 million compared to a loss of $247.4 million in 2025.
• Net loss per share (diluted) for Q3 2026 was $0.02, compared to $1.64 in Q3 2025; for the nine months, diluted loss per share was $1.24, compared to $2.83 in 2025.
• Adjusted net loss attributable to USA Rare Earth, Inc. for Q3 2026 was $125.6 million, compared to $25.6 million in Q3 2025; for the nine months, adjusted net loss was $183.3 million, compared to $53.6 million in 2025.
• Net cash used in operating activities for the nine months ended September 30, 2026, was $219.0 million, compared to $21.1 million in 2025.
• Cash, cash equivalents, and restricted cash balance as of September 30, 2026, was $1.16 billion, up from $360 million as of December 31, 2025.
• Total assets were $6.95 billion as of September 30, 2026, compared to $695 million as of December 31, 2025.
• Total liabilities were $2.13 billion as of September 30, 2026, compared to $192 million as of December 31, 2025.
• Stockholders' equity was $4.82 billion as of September 30, 2026, compared to $494 million as of December 31, 2025.

Guidance and Future Outlook:

• Q4 2026 Serra Verde sales volume guidance is at least 325 tonnes of total rare earth oxides (TREO).
• Q4 2026 average Serra Verde TREO basket value at floor prices (after contracted separation costs) is projected at approximately $43/kg (~$150/kg NdPr equivalent).
• Q4 2026 average Serra Verde TREO basket value at market prices (including USAR's share of upside above floor prices, after contracted separation costs) is projected at approximately $97/kg (~$340/kg NdPr equivalent).
• Key operational targets include finishing magnet prototype sales to multiple customers from Stillwater by end of 2026.
• Q1 2027 targets include installing a second magnet finishing line at Stillwater and publishing the Serra Verde SK-1300 report.
• Q2 2027 targets include commissioning Line 1b at Stillwater (adding 600 tpa capacity for a total of 1,200 tpa) and completing Serra Verde Stage 1 ramp to 4,000 tpa TREO run rate.
• Q3 2027 targets include installing samarium metal furnaces at LCM Cheshire (raising capacity by ~30%) and completing the Round Top SK-1300 report.
• End of 2027 target is to complete Serra Verde Stage 2 ramp to a 6,400 tpa TREO run rate.

Business Segments and Product Lines:

• Completed the combination with Serra Verde in September 2026, creating a fully integrated rare earth platform outside Asia.
• Serra Verde completed Stage 1 of its optimization and expansion program, ramping up to 4,000 tpa of total rare earth oxide (TREO); Stage 2 is expected to add 2,400 tpa by end of 2027.
• Commenced commercial-scale shipments of Mixed Rare Earth Carbonate (MREC) from Serra Verde in October 2026, with sales recorded in November.
• Generated first-ever revenue from the sale of neodymium-iron-boron (NdFeB) permanent magnets from the Stillwater, Oklahoma facility in September 2026.
• Produced first commercial-grade light and heavy rare earth oxide samples (including dysprosium and neodymium-praseodymium) from recycled magnet scrap ("swarf") at the Wheat Ridge, Colorado facility in July 2026.
• Produced first yttrium oxide samples from the Wheat Ridge continuous solvent extraction demonstration plant in October 2026.
• Broke ground on a new $1.2 billion rare earth metal and magnet manufacturing facility in Blacksburg, South Carolina, targeting 6,400 tpa of strip cast metal and 6,400 tpa of sintered NdFeB magnets.
• Acquired a 13.6% minority stake in Carester SAS, a French rare earth processing leader, in July 2026.
• Closed the acquisition of Texas Mineral Resources Corp. (TMRC) in August 2026, making USA Rare Earth the sole operator of the Round Top project.

Market and Competitive Landscape:

• Demand for secure and responsible rare earth supply is described as increasingly acute across technology-driven sectors.
• USA Rare Earth positions itself as one of the few commercial-scale magnet manufacturers and rare earth producers outside Asia.
• Recent non-China prices for Dy oxide are 14-16x higher than China prices, while non-China prices for Tb oxide are 6-8x higher than China prices.
• The company operates under a 15-year, 100% take-or-pay offtake agreement with US SIIE, LLC, priced based on non-China prices.
• The U.S. Department of War invested an additional $250 million (totaling $750 million) in the SPV for Serra Verde offtake, alongside a $500 million credit facility commitment and a $300 million forward purchase contract from the U.S. government.

Risks and Challenges:

• Risks include potential failure to realize anticipated benefits from the Serra Verde combination or other acquisitions, including integration delays or failure to achieve synergies.
• Potential delays in optimization, commissioning, and expansion programs at Pela Ema and other facilities.
• Political, economic, regulatory, and currency risks associated with foreign operations in Brazil and Switzerland.
• Risks related to the termination or non-performance of the Offtake Agreement or the counterparty's capitalization.
• Risks that the Blacksburg facility may not commence commercial operations on the anticipated timeline or with the anticipated capacity.
• Dependence on the growth of existing and emerging uses for neodymium magnets and the ability to convert commercial discussions into definitive orders.
• Risks of supply chain disruptions, permit delays, utility cost increases, and environmental or health and safety regulations.
• Potential dilution to existing stockholders if additional equity is issued.
• Risks associated with geopolitical developments, including export/import policies of China, the U.S., or other countries.

Management Commentary and Tone:

• CEO Thras Moraitis highlighted significant operational and commercial milestones, noting that "every link in our integrated value chain is beginning to gain momentum."
• Moraitis emphasized the company's focus on executing against operational, commercial, and strategic objectives to become the "multinational partner of choice" for secure rare earth supply.
• The tone reflects confidence in the company's ability to deliver reliable products independently, with a focus on disciplined execution and operational excellence.
• Moraitis succeeded Barbara Humpton as CEO on October 1, 2026, following her retirement.
• The company has organized operations into three business units: Upstream (mining, processing, separation), Midstream (metals, alloys, powders), and Downstream (magnets and derivative products).

Other Key Points:

• LCM year-to-date volumes in August 2026 exceeded full-year 2025 levels.
• The company announced the retirement of CEO Barbara Humpton and the appointment of Thras Moraitis, former CEO of Serra Verde, as her successor.
• The U.S. government-backed SPV for Serra Verde offtake was upsized to $1.55 billion in funding.
• The company finalized agreements to acquire a strategic minority stake in Carester SAS, providing access to separation, processing, and recycling intellectual property.
• The acquisition of TMRC streamlines operations and governance at the Round Top project.
• The Stillwater facility has installed its first magnet finishing line, with a second line expected by the end of 2026.
• The Blacksburg facility is located on a 124-acre site and is expected to create roughly 490 high-skilled jobs.