USA Rare Earth posted first-quarter results on Wednesday that beat revenue estimates, sending the stock up 1.5% after hours to $25.80. The company reported sales of around $5.7M–$6M against a Wall Street estimate of $4.2M.
The net loss came in at $67M, or $0.34 per share. But $43.6M of that was a non-cash fair value adjustment tied to warrants and earn-out liabilities. Strip that out and the adjusted net loss was $24.1M, or $0.12 per share.
Operating expenses hit roughly $37M. Excluding M&A costs and stock-based compensation, the underlying operating expense was closer to $25M.
$USAR Double Beat
Adj EPS: $(0.12) vs $(0.14) est
REV: $5.698M vs $4.233M est
+4.35% pic.twitter.com/Ov72enL8BV
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The company ended Q1 with approximately $1.75B in cash, following a $1.5B PIPE financing that closed in January. Capital expenditures were around $40M, mostly tied to magnet manufacturing and its Less Common Metals (LCM) facility in the U.K.
Revenue in the quarter came entirely from LCM, the metal-making business USA Rare Earth acquired as part of its push to build a full rare earth supply chain. Gross profit was slightly positive.
CEO Barbara Humpton described the planned acquisition of Brazil’s Serra Verde Group as a “watershed moment.” The deal is structured as $300M in cash plus just under 127M new common stock.
Serra Verde’s Pela Ema mine is currently the only operation outside Asia producing all four magnetic rare earths at scale. It also carries a 15-year offtake agreement with a U.S. government-financed vehicle, with price floors for neodymium-praseodymium, dysprosium, and terbium.
USA Rare Earth also announced a strategic investment in Carester, a European heavy rare earth processor. That facility is expected to begin ramping by end of 2026, with full scale-up in 2027.
The company is simultaneously consolidating full economic ownership of its Round Top project in Texas, which Humpton called one of North America’s most unique heavy rare earth deposits. A definitive feasibility study is expected by year-end.
The Stillwater magnet plant in Oklahoma completed phase 1A commissioning in March. The facility has started producing commercial magnets for customer qualification, with sales to customers expected in the second half of 2026. The target run rate is 600 metric tons per year by year-end.
Finishing equipment is already on site and is expected to be operational by early Q3.
On government funding, Humpton said the company is in the final stages of completing definitive documentation for a $1.6B agreement with the U.S. Department of Commerce. She said completion is expected this month.
Asked about the timeline, Humpton said the Serra Verde acquisition required the Commerce Department to revisit earlier decisions, but added: “Every move we’ve made has actually strengthened our deal.”
Demand signals are strong, she said, with aerospace and defense customers facing a Jan. 1, 2027, deadline for sourcing materials from outside China, and some automotive OEMs requiring up to a year of permanent magnet safety stock from suppliers.
USA Rare Earth did not provide financial guidance and said it plans to hold its first Investor Day in Q3 2026, after the expected close of the Serra Verde transaction.
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