STILLWATER, Okla., Aug. 10, 2026 (GLOBE NEWSWIRE) -- USA Rare Earth, Inc. (Nasdaq: USAR) (the Company), (USAR), a rare earth, critical minerals and advanced materials company, today announced its financial and operational results for the second quarter and six months ended June 30, 2026.
Executive Commentary
"The second quarter of 2026 marked a period of decisive progress for USA Rare Earth, defined by the milestones that bring our integrated global rare earth value chain to life," said Barbara Humpton, CEO of USA Rare Earth. "We announced our intent to acquire Serra Verde, the only scaled producer of all four magnetic rare earths outside Asia; signed definitive documentation for our funding package with the U.S. Department of Commerce; announced our intent to invest in Carester; and selected Blacksburg, South Carolina, as the site of our second U.S. metal-making and magnet manufacturing facility. We also commissioned our hydrometallurgical facility in Wheat Ridge, Colorado, a critical step that demonstrates our processing capability that lies at the heart of a secure, non-China supply chain."
Ms. Humpton continued, "With these building blocks in place, USA Rare Earth is entering a new chapter. We are moving from assembling a world-class set of operations to delivering for our customers and driving value for our shareholders. The urgency in the market has never been greater, and we are among the very few companies anywhere positioned to meet it. I am confident we have the right assets, the right operations, and the right team to establish ourselves as the global leader in rare earths, the partner of choice for advanced manufacturers, and to secure the critical materials essential for Western industrial leadership."
Second Quarter Highlights
Financial Highlights
-- The Company's cash balance as of June 30, 2026 was approximately
$1.53 billion
-- Revenues for Q2'2026 of $5.8 million
Business Highlights
-- Finalized Definitive Agreements with the U.S. Department of Commerce: In
June 2026, the Company announced the execution of definitive agreements
with the U.S. Department of Commerce, unlocking access to up to $1.6
billion in funding under the Department of Commerce's CHIPS Act program.
The definitive agreements comprise up to $277 million in federal funding
and up to $1.3 billion in senior secured loan capacity under the CHIPS
Act, with disbursements tied to the achievement of project milestones.
These agreements significantly de-risk the Company's path to full scale
production, and the Company views them as a validation of its asset base,
its business model, and its growth plans.
-- Announced definitive agreement to acquire Serra Verde Group for $2.8
billion, creating the global rare earth leader: In April 2026, the
Company announced a definitive agreement to acquire 100% of Serra Verde
Group, owner of the Pela Ema rare earth mine and processing plant in
Goiás, Brazil. The acquisition would secure the only large-scale
producer of vital HREEs outside Asia, de-risk upstream supply with a
15-year 100% offtake agreement including price floors, and accelerate the
Company's EBITDA and cash-flow generation.
-- Announced investment in Carester and strategic partnership in France: In
April 2026, the Company along with InfraVia, the leading independent
European private investment platform specialized in real assets and
technology investments, announced it had entered into an investment term
sheet to take a stake in Carester, a leading French specialist in rare
earth processing and separation technologies, subject to the execution of
a definitive documentation and closing conditions. The Company believes
the platform will unite the technological expertise, process innovation,
and production capacity of USA Rare Earth, Less Common Metals $(LCM)$, and
Carester to accelerate development and strengthen capabilities across the
rare earth value chain.
-- Selected South Carolina for new rare earth metal and magnet manufacturing
operation: In June 2026, the Company announced the selection of
Blacksburg, South Carolina, as the site of a new magnet manufacturing and
refined metals operation. The facility is targeting production capacity
of 6,400 metric tons per annum (tpa) of NdFeB rare earth magnets and
5,000 tpa of strip-cast, metal and alloy. Combined with the planned
expansion at the Company's Stillwater facility, the Company expects 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,
aligned with the Company's business plan and government financing. The
project is expected to create about 490 high-skill, high-wage jobs, with
commissioning targeted to begin in 2028.
-- Commissioned hydrometallurgical demonstration facility, targeting heavy
rare earth oxide production in Q3 2026: In June 2026, the Company
announced the commissioning of its hydrometallurgical demonstration
facility in Wheat Ridge, Colorado. The facility has commenced an initial
campaign to de-risk three processing flowsheets in parallel: ore from
Round Top, third-party mixed rare earth carbonate (MREC) feedstock --
including material from Serra Verde's Pela Ema mine -- and rare earth
magnet swarf recycling. Insights from the campaigns are expected to
underpin the Round Top Definitive Feasibility Study, on track for Q4 2026
completion and Q1 2027 publication, and to guide commercial engineering
of the planned on-site Round Top processing facility and the Company's
anticipated third-party MREC processing and magnet swarf recycling
facility.
-- Completed first commercial Yttrium metal production: In April 2026, the
Company announced the first commercial pour of 2N--2N5 (99%--99.5%
purity) yttrium metal through its wholly-owned subsidiary, LCM, at its
facility in Cheshire, United Kingdom. This milestone places the Company
among a limited number of producers of commercial-grade yttrium metal
operating outside of China. Yttrium is a key material in thermal barrier
coatings used on turbine blades and other high-temperature aerospace
components, where it enhances oxidation resistance and improves adhesion,
helping extend component life under intense thermal and mechanical
stress. Yttrium is also used in electronics, energy systems, lasers,
superconductors, and advanced ceramics, where its chemical stability and
high-temperature performance are essential.
-- Expanded the corporate leadership team with additional expertise: In
April 2026, the Company announced the appointment of Chaitan Kansal as
Chief Commercial Officer. Mr. Kansal brings more than 25 years of
experience across the critical minerals, specialty chemicals, and
advanced materials sectors. Mr. Kansal's deep experience across lithium,
battery materials, and specialty chemicals - combined with a track record
of executing go-to-market strategies at global scale - makes him the
ideal leader to drive customer engagement, secure long-term offtake
partnerships, and position the Company as the partner of choice for rare
earth products across the Western world.
-- Awarded $14.2 million grant from the Texas Semiconductor Innovation Fund
to accelerate round top heavy rare earth project: In May 2026, the
Company announced it was selected to receive a grant for up to $14.2
million from the Texas Semiconductor Innovation Fund to accelerate the
development of its Round Top Mountain heavy rare earth project in
Hudspeth County, Texas. The award would support a project expected to
generate approximately 260 new jobs and to represent more than $1.4
billion in capital investment in West Texas.
-- Selected for U.S. Department of Energy Funding Under Critical Minerals
Innovation Program: In May 2026, the Company announced that the U.S.
Department of Energy (DOE) has selected it to receive up to $19.3 million
in funding, subject to final negotiation, under DOE's Critical Minerals
Innovation, Efficiency and Alternatives program. The award will support
the development of a pilot-scale rare earth element ("REE") separations
project advancing domestic processing capacity for materials essential to
U.S. energy, defense and advanced manufacturing supply chains.
-- Expanded commitment to France with plans for additional investment in the
French rare earth ecosystem: In June 2026, the Company announced a
planned expansion of its metal, alloy, and magnet production in France,
building upon its planned LCM Lacq facility and Carester investment.
Aligned with the U.S. Department of Commerce funding plan, the initiative
projects over EUR175 million in investment and 300+ new jobs by 2030,
supported by French government incentives such as C3IV, potential debt
guarantees, and possible direct equity investment into the USAR European
subsidiary.
Recent Developments
Subsequent to quarter-end, the Company announced the following achievements and milestones:
-- Successfully produced first light and heavy rare earth oxide samples for
qualification: In July 2026, the Company announced that its
hydrometallurgical facility in Wheat Ridge, Colorado, had successfully
produced commercial-grade dysprosium (Dy) oxide and
neodymium-praseodymium (NdPr) oxide samples from recycled rare earth
magnet scrap, known in the industry as "swarf." This positions USA Rare
Earth as one of the few Western producers capable of executing this
technically demanding process outside Asia. In addition, this capability
broadens the Company's feedstock options and strengthens the circularity
of its value chain, with swarf projected to support up to 30% of future
magnetic rare earth oxide feedstock needs.
-- Announced retirement of CEO Barbara Humpton, to be succeeded by Thras
Moraitis, current CEO of Serra Verde: In July 2026, the Company announced
that Barbara Humpton will retire as Chief Executive Officer and Board
Director on October 1, 2026. The Company's Board of Directors named Thras
Moraitis, current CEO of the Serra Verde Group ("Serra Verde") and a
highly experienced operator in the rare earths industry, as Ms. Humpton's
successor. Mr. Moraitis will assume the CEO role on October 1, 2026,
following the anticipated completion of the Company's combination with
Serra Verde by the end of August. During the interim period, Mr. Moraitis
will continue to oversee the combined company's operations as President.
-- Finalized definitive agreements to acquire minority stake in Carester: In
July 2026, the Company announced that it had entered into definitive
agreements to acquire a strategic minority stake representing
approximately 13.6 percent in Carester SAS, a French leader in rare earth
processing and separation. InfraVia, acting through its Critical Metals
Fund, seeded by the French State as an anchor investor alongside private
institutional capital, is acquiring a similar stake in Carester alongside
the Company. In addition to targeting healthy returns, the Company and
its subsidiary Less Common Metals -- Europe will have the ability to
purchase a portion of Carester's oxide output from its Caremag facility.
The Company will have access to Carester's engineering capabilities and
related intellectual property for separation, processing, and recycling.
In turn, Carester will have access to the Company's feedstock sources,
including Serra Verde and the Round Top deposit in Texas.
-- Closed Acquisition of Texas Mineral Resources Corp. (TMRC): In August
2026, the company closed the acquisition of TMRC, to which the Company
acquired 100% of the outstanding shares of TMRC. Subsequent to closing,
the Company will be the sole operator and 100% economic beneficiary of
the Round Top project. This strategic transaction is expected to
streamline the Company's operations, governance and decision-making as it
builds the global leader in rare earths and critical minerals.
2026 Outlook
As it builds a global leader in rare earths, in 2026 the Company expects to:
-- Complete the Round Top Definitive Feasibility Study $(DFS)$ in Q4 2026: This DFS is expected to be completed in Q4 2026 and published in Q1 2027, and is expected to provide the balance of commercial engineering and design and definitive project economics. -- Reach 600 MTPA of run-rate magnet manufacturing capacity at the Stillwater Facility in Q4 2026: This manufacturing capacity build out is expected to support the Company's growing pipeline of magnet customers across the aerospace, defense, semiconductor, industrial motor, heavy equipment, mobility, healthcare, and energy sectors. -- Evaluate metal making and alloy capacity at LCM to optimize for customer demand across rare earth and critical mineral metals and alloys, and geographic footprint distribution: This capacity build out is expected to support the Company's internal metal and alloy needs for magnet manufacturing, as well as a growing pipeline of third-party rare earth and critical mineral metal and alloy demand.
Financial Highlights
Three Months Ended Six Months Ended June
June 30, 30,
------------------------
2026 2025 2026 2025
------- -------- -------
(In thousands, except for per share amounts)
Loss from
operations $(46,314) $ (8,804) $ (82,989) $(17,522)
Net loss
attributable
to USA Rare
Earth, Inc. (10,333) (142,506) (77,322) (90,674)
Net loss per
share
attributable
to USA Rare
Earth, Inc. -
Diluted (0.05) (1.54) (0.37) (0.99)
Net cash used
in operating
activities (56,868) (7,909) (75,324) (18,238)
Cash and cash
equivalents 1,530,147 359,925
Non-GAAP Financial Highlights (1)
Three Months Ended Six Months Ended June
June 30, 30,
-------------------- ----------------------
2026 2025 2026 2025
------- -------
(In thousands, except for per share amounts)
Adjusted net
loss
attributable
to USA Rare
Earth, Inc. $(33,484) $(19,084) $(57,629) $(28,031)
Adjusted net
loss per
share
attributable
to USA Rare
Earth, Inc. -
Diluted (0.15) (0.21) (0.27) (0.31)
______________
(1) Refer to the sections "About Non-GAAP Financial Measures" and "Reconciliation of Non-GAAP Financial Measures" for definitions of our non-GAAP financial measures and reconciliations of GAAP to non-GAAP amounts, respectively.
Forward-looking Statements
This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include those relating to the proposed acquisition of Serra Verde Group, the expected timing and completion of the Serra Verde acquisition, the expected benefits of the Serra Verde acquisition, the expected benefits from our transactions with Carester SAS and Texas Mineral Resources Corp. ("TMRC"), development of our magnet production facility at Stillwater and our refined metals production facility at Blacksburg, the benefits expected from the acquisition of Less Common Metals Ltd., the ability to satisfy the funding conditions of and to realize the anticipated benefits of the anticipated funding from the U.S. Department of Commerce, demand for magnets from our production facility once it is operational, the opportunity, size and growth rates of the rare earth element market and the market for related magnets, our ability to process raw materials for magnet production including through swarf processing and development of the Round Top Project, development of our Wheat Ridge, Colorado hydrometallurgical demonstration facility, development and results of the Round Top Project, the ability to raise financing in the future and to comply with restrictive covenants contained in our long-term indebtedness, the future financial performance of our business, the ability to retain or recruit key personnel, the ability to comply with laws and regulations applicable to our business, expansion plans and opportunities, our anticipated operating and financial performance, our business plans, strategy, goals and prospects, our plans for and prospects of our other acquisitions, investments and other business development activities, including the announced Carester transaction, our ability to successfully capitalize on growth opportunities and prospects, and other statements regarding the Company's expectations for future development, operations, strategies, transactions and financial performance. Such statements can be identified by the fact that they do not relate strictly to historical or current facts. Words such as "accelerate," "advance," "aim," "anticipate," "believe," "can," "continue," "could," "estimate," "expect, " "growth," "intend," "may," "might," "plan," "potential," "project," "propose," "should," "target," "vision," "will," "would" and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking.
Forward-looking statements are subject to risks and uncertainties and potentially inaccurate assumptions that could cause actual results to differ materially from our expectations, including without limitation: risks that the proposed transactions with Serra Verde and Carester may not be consummated on their anticipated timeline or at all; risks that we may not realize the anticipated benefits of our proposed, current, and prior acquisitions, including transactions with Serra Verde, Carester and TMRC, including expected synergies, financial performance, estimated EBITDA and, in the case of Serra Verde, integration of operations, on the anticipated timeline or at all; ; political, economic, regulatory, tax, currency and other risks associated with Serra Verde's operations in Brazil and Switzerland following the consummation of the Serra Verde acquisition; the assumption of substantial indebtedness under Serra Verde's Retained Finance Agreement, which contains restrictive covenants and other requirements that could adversely affect the combined company's financial flexibility and operations; the potential failure to satisfy the conditions precedent to the offtake agreement entered into in connection with the Serra Verde acquisition, and the possibility that the offtake agreement
may be terminated for any reason; the risk that the planned CEO transition is contingent on the timely closing of the Serra Verde acquisition and that any delay or failure of this acquisition to close could result in leadership uncertainty and may require the Board to identify an alternative CEO successor; the ability of our Stillwater magnet manufacturing facility to generate revenue and the ability of our planned Blacksburg facility to commence commercial operations on the timing and with the production capacity anticipated or at all; our limited operating history; our ability to commercially extract minerals from the Round Top deposit on our anticipated timeline or at all; risks that we may experience delays, unforeseen expenses, increased capital costs, and other complications while developing our projects; our ability to raise necessary capital on acceptable terms or at all; potential dilution to existing stockholders and adverse effect on our stock price if we issue additional common stock or equity-linked securities; the volatility of our stock price; the availability of rare earth oxide, metal feedstock and other materials, utilities (including power and water) and equipment in quantities and prices that allow us to develop and commercially operate our Stillwater facility and other facilities; our ability to meet individual customer specifications and produce a consistently high quality product; fluctuations in demand for and prices of neo magnets and our other products, including without limitation as a result of dumping, predatory pricing and other tactics by the Company's competitors or state actors or the overall competitive environment; our ability to achieve positive cash flow or profitability or the ability to access cash flow within our corporate structure due to restrictions contained in our financing agreements; our ability to convert current commercial discussions and/or memorandums of understanding with customers for the sale of our neo magnets and other products into definitive orders; our dependence, in part, on the growth of existing and emerging uses for neo magnets; the risk that additional manufacturing, refining and mining competitors could result in a reduction in revenue; geopolitical developments or disruptions, such as changes in the political environment, export/import or environmental policy of the People's Republic of China, the United States or other countries in which we operate or sell products or otherwise; our designation on an export control list by China which has had and is expected to continue to have an adverse impact on our ability to source key raw materials and supplies from China; war, terrorism, natural disasters or public health emergencies; our ability to retain or recruit key personnel; environmental, health and safety regulations; the receipt of funding from the U.S. Department of Commerce is subject to the achievement of milestones which may not be achieved on the expected timeline or at all; and our ability to comply with requirements for federal, state and local government incentives and financing.
Additional risks and detailed information regarding factors that may cause actual results to differ materially has been and will be included in the Company's filings with the SEC, including the Company's most recently filed Annual Report on Form 10-K and any subsequent Quarterly Reports on Form 10-Q and subsequent filings. Any forward-looking statements speak only as of the date of this press release (or such other date as is specified in such statements), and the Company undertakes no obligation to update any forward-looking statements as a result of new information or future events or developments.
About Non-GAAP Financial Measures
This press release includes certain non-GAAP financial measures, including adjusted net loss attributable to USA Rare Earth, Inc., and adjusted net loss per share attributable to USA Rare Earth, Inc. (defined as follows):
-- Adjusted net loss attributable to USA Rare Earth, Inc. is defined as net
loss attributable to USA Rare Earth, Inc. adjusted for declared and
deemed dividends, and interest accretion, and loss (gain) on fair market
value of financial instruments, net.
-- Adjusted net loss per share attributable to USA Rare Earth, Inc. -
Diluted is defined as adjusted net loss attributable to USA Rare Earth,
Inc. divided by weighted average diluted shares outstanding.
Generally, a non-GAAP financial measure is a numerical measure of a company's performance, financial position, or cash flows that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with generally accepted accounting principles in the United States of America, or GAAP. These non-GAAP financial measures do not reflect a comprehensive system of accounting, differ from GAAP measures with the same captions, and may differ from non-GAAP financial measures with the same or similar captions that are used by other companies. As such, these non-GAAP measures should be considered as a supplement to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP.
The Company believes these non-GAAP measures of financial results provide useful supplemental information to management and investors regarding certain financial and business trends related to the Company's financial condition and results of operations, and as a supplemental tool for investors to use in evaluating its ongoing operating results and trends and in comparing its financial measures with other companies that present similar non-GAAP financial measures. The Company uses these non-GAAP financial measures to analyze its operating performance and future prospects, develop internal budgets and financial goals, and to facilitate period-to-period comparisons. The Company believes these non-GAAP financial measures reflect an additional way of viewing aspects of its operations that, when viewed with its GAAP results, provide a more complete understanding of factors and trends affecting its business. Current and prospective investors should review the Company's audited annual and unaudited interim financial statements, which are filed with the U.S. Securities and Exchange Commission, and not rely on any single financial measure to evaluate our business.
Conference Call to Discuss Financial Results
The Company will hold a conference call on Monday, August 10, 2026, at 5:00 PM ET to discuss its second quarter and six months ended June 30, 2026 results. Please see below for dial-in information.
LIVE CONFERENCE CALL:
Monday, August 10, 2026, at 5:00 PM ET
US / Canada Toll-Free: +1 (833) 890-8030
Local / International Toll: +1 (412) 564-6268
CONFERENCE CALL REPLAY:
Available approximately three hours after conclusion of the live call.
Expiration: September 10, 2026
US/Canada Toll-Free: +1 (855) 669-9658
International Toll: +1 (412) 317-0088
Access code: 7520719
Investors may also access the live call and the replay over the internet on the "Events" page of the Company's investor website located at www.usare.com or at https://event.choruscall.com/mediaframe/webcast.html?webcastid=SCYm7iDr.
Disclosure Information
USA Rare Earth uses the investor relations section on its website as means of complying with its disclosure obligations under Regulation FD. Accordingly, investors should monitor USA Rare Earth's investor relations website in addition to following USA Rare Earth's press releases, SEC filings, and public conference calls and webcasts.
About USA Rare Earth
USA Rare Earth, Inc. (Nasdaq: USAR) is building a fully integrated rare earth and permanent magnet value chain across the United States, the United Kingdom, France and Brazil. Through its ownership of Less Common Metals (LCM), one of the world's leading producers of rare earth metals and alloys, its development of magnet manufacturing capacity in Stillwater, Oklahoma, the Pela Ema mine in Brazil (subject to closing the SVG transaction) and the Round Top deposit in Texas, USA Rare Earth operates across the entire value chain from mining to metal-making, alloy production and neodymium magnet manufacturing. USA Rare Earth is establishing a secure, Western-aligned supply of materials essential to the aerospace and defense, semiconductor, energy, data center, physical AI, mobility, healthcare and industrial sectors.
For more information, visit www.usare.com.
Investor Relations Contact
J.B. Lowe, CFA
VP, Head of Investor Relations
ir@USARE.com
Media Relations Contact
Collected Strategies
Dan Moore / Scott Bisang
USAR-CS@collectedstrategies.com
USA Rare Earth, Inc.
Condensed Consolidated Balance Sheets
(Unaudited)
June 30, December 31,
2026 2025
---------- --------------
(In thousands)
ASSETS
Current assets
Cash and cash equivalents $1,530,147 $ 359,925
Accounts receivable 6,270 3,764
Inventories 50,138 18,535
Prepaid expenses and other current assets 86,034 3,151
--------- ----------
Total current assets 1,672,589 385,375
Property, plant and equipment, net 146,751 86,449
Mineral interests 17,339 17,339
Goodwill 134,848 134,848
Other intangible assets, net 65,899 68,612
Equipment deposits 46,904 1,879
Operating lease right-of-use assets 2,151 321
Deferred arrangement costs 912,091 --
Other assets, non-current 255 176
--------- ----------
Total assets $2,998,827 $ 694,999
========= ==========
LIABILITIES, MEZZANINE AND STOCKHOLDERS'
EQUITY
Liabilities
Current liabilities
Accounts payable $ 17,367 $ 11,069
Accrued liabilities 31,679 14,073
Contract liabilities, current 1,328 10,500
Note payable -- 1,849
Finance and operating leases, current 640 420
--------- ----------
Total current liabilities 51,014 37,911
Deferred grant income 8,482 8,200
Finance and operating leases, non-current 2,556 777
Warrant and earnout liabilities 364,189 128,205
Deferred tax liability 15,665 16,715
Contract liabilities, non-current 9,602 --
--------- ----------
Total liabilities 451,508 191,808
--------- ----------
Mezzanine equity 10,347 8,905
Stockholders' equity 2,536,972 494,286
--------- ----------
Total liabilities, mezzanine equity,
and stockholders' equity $2,998,827 $ 694,999
========= ==========
USA Rare Earth, Inc.
Condensed Consolidated Statements of Operations
(Unaudited)
Three Months Ended Six Months Ended June
June 30, 30,
--------------------- ----------------------
2026 2025 2026 2025
-------- -------
(In thousands, except per share amounts)
Revenue $ 5,821 $ -- $ 11,519 $ --
Cost of product
revenue 7,404 -- 12,996 --
------- -------- ------- -------
Gross loss (1,583) -- (1,477) --
------- -------- ------- -------
Operating
expenses:
Selling, general
and
administrative 32,607 6,227 53,782 13,256
Research and
development 10,768 2,577 25,017 4,266
Amortization of
intangible
assets 1,356 -- 2,713 --
------- -------- ------- -------
Total
operating
expenses 44,731 8,804 81,512 17,522
------- -------- ------- -------
Loss from
operations (46,314) (8,804) (82,989) (17,522)
Other income
(expense), net 33,838 (133,909) 1,868 (73,509)
------- -------- ------- -------
Loss before income
taxes (12,476) (142,713) (81,121) (91,031)
Benefit from
income taxes (513) -- (1,090) --
------- -------- ------- -------
Net loss $(11,963) $(142,713) $(80,031) $(91,031)
======= ======== ======= =======
Net loss
attributable to
non-controlling
interest $ (1,630) $ (207) $ (2,709) $ (357)
Net loss
attributable to
USA Rare Earth,
Inc. (10,333) (142,506) (77,322) (90,674)
======= ======== ======= =======
USA Rare Earth, Inc.
Condensed Consolidated Statements of Cash Flows
(Unaudited)
Six Months Ended June 30,
-------------------------------
2026 2025
--------
(In thousands)
Cash flows from operating
activities:
Net loss $ (80,031) $ (91,031)
Non-cash adjustments 36,598 78,080
Changes in assets and liabilities (31,891) (5,287)
------------ --------
Net cash used in operating activities $ (75,324) $ (18,238)
------------ --------
Cash flows from investing
activities:
Capital expenditures and equipment
deposits $ (108,388) $ (6,297)
------------ --------
Net cash used in investing activities $ (108,388) $ (6,297)
------------ --------
Cash flows from financing
activities:
Reverse merger costs $ -- $ 45,717
Issuance costs (51,003) (8,281)
Proceeds from issuance of common
stock under PIPE financing 1,500,000 75,000
Proceeds from exercise of warrants 68 21,951
Finance leases (140) --
Other (29,594) (4,822)
------------ --------
Net cash provided by financing
activities $ 1,419,331 $ 129,565
------------ --------
Effect of exchange rate differences
on cash, cash equivalents and
restricted cash $ (1,175) $ --
------------ --------
Net change in cash, cash equivalents
and restricted cash $ 1,234,444 $ 105,030
Cash, cash equivalents and restricted
cash, beginning of period 359,925 16,761
------------ --------
Cash, cash equivalents and restricted
cash, end of period $ 1,594,369 $ 121,791
============ ========
USA Rare Earth, Inc.
Reconciliation of Non-GAAP Financial Measures
(Unaudited)
This press release includes certain non-GAAP financial
information. The following table reconciles the GAAP
financial information to the non-GAAP financial information.
Three Months Ended Six Months Ended June
June 30, 30,
--------------------- ----------------------
2026 2025 2026 2025
-------- -------
(In thousands, except for per share amounts)
Net loss
attributable to
USA Rare Earth,
Inc. $(10,333) $(142,506) $(77,322) $(90,674)
Declared and
deemed
dividends,
and interest
accretion (733) (11,240) (1,442) (11,719)
Loss (gain) on
fair market
value of
financial
instruments,
net (22,418) 134,662 21,135 74,362
------- -------- ------- -------
Adjusted net
loss
attributable to
USA Rare Earth,
Inc.(1) $(33,484) $ (19,084) $(57,629) $(28,031)
======= ======== ======= =======
Adjusted net
loss per share
attributable to
USA Rare Earth,
Inc. -
Diluted(1) $ (0.15) $ (0.21) $ (0.27) $ (0.31)
======= ======== ======= =======
_____________
(1) Refer to the section "About Non-GAAP Financial Measures" for an explanation of our use of non-GAAP financial measures and the definitions of such measures.