USA Rare Earth Reports its Second Quarter 2025 Financial Results
USA Rare Earth (NASDAQ: USAR) reported its Q2 2025 financial results, highlighting progress toward commissioning its Stillwater, Oklahoma magnet facility in Q1 2026. The company has secured 12 MOUs and JDAs representing potential annual production of 300 tons with aerospace, defense, data center, and automotive customers.
Key financial metrics include a cash position of $121.8 million at quarter-end (increasing to $128.1 million by August 7, 2025) with no significant debt. However, the company reported increased losses with a Q2 2025 net loss of $142.7 million compared to $2.8 million in Q2 2024. The adjusted net loss was $7.8 million for Q2 2025.
Notable operational achievements include successful extraction of gallium and heavy rare earth concentrates from the Round Top deposit and team expansion in engineering, sales, manufacturing, and finance roles.
USA Rare Earth (NASDAQ: USAR) ha pubblicato i risultati finanziari del secondo trimestre 2025, sottolineando i progressi verso l'entrata in servizio dell'impianto per magneti di Stillwater, Oklahoma, prevista nel primo trimestre 2026. L'azienda ha siglato 12 MOU e JDA che rappresentano una potenziale produzione annua di 300 tonnellate per clienti nei settori aerospaziale, difesa, data center e automobilistico.
I principali indicatori finanziari mostrano una posizione di cassa di $121.8 million a fine trimestre (salita a $128.1 million al 7 agosto 2025) e l'assenza di debiti significativi. Tuttavia, la società ha registrato perdite maggiori: una perdita netta di $142.7 million nel Q2 2025 contro $2.8 million nel Q2 2024. La perdita netta rettificata per il Q2 2025 è stata di $7.8 million.
Tra i risultati operativi rilevanti figurano l'estrazione riuscita di concentrazioni di gallio e di terre rare pesanti dal giacimento Round Top e l'ampliamento del team nelle aree ingegneria, vendite, produzione e finanza.
USA Rare Earth (NASDAQ: USAR) informó sus resultados del segundo trimestre de 2025, destacando avances hacia la puesta en marcha de su planta de imanes en Stillwater (Oklahoma) en el primer trimestre de 2026. La compañía ha asegurado 12 MOU y JDA que representan una posible producción anual de 300 toneladas con clientes de los sectores aeroespacial, defensa, centros de datos y automotriz.
Entre los indicadores financieros clave figura una posición de efectivo de $121.8 million al cierre del trimestre (aumentando a $128.1 million al 7 de agosto de 2025) y la ausencia de deuda significativa. No obstante, la empresa reportó pérdidas mayores: una pérdida neta de $142.7 million en el Q2 2025 frente a $2.8 million en el Q2 2024. La pérdida neta ajustada fue de $7.8 million en el Q2 2025.
Entre los logros operativos destacó la extracción exitosa de concentrados de galio y de tierras raras pesadas del yacimiento Round Top y la ampliación del equipo en ingeniería, ventas, fabricación y finanzas.
USA Rare Earth (NASDAQ: USAR)는 2025년 2분기 실적을 발표하며 2026년 1분기 가동을 목표로 오클라호마 스틸워터의 자석 공장에 대한 진전을 강조했습니다. 회사는 항공우주, 국방, 데이터센터 및 자동차 고객을 대상으로 연간 잠재 생산량 300톤에 해당하는 12건의 MOU 및 JDA를 확보했습니다.
주요 재무 지표로는 분기 말 기준 현금 보유액 $121.8 million(2025년 8월 7일 기준 $128.1 million으로 증가)과 유의미한 부채 없음이 포함됩니다. 다만 2025년 2분기 순손실은 $142.7 million으로 2024년 2분기의 $2.8 million에 비해 크게 확대되었고, 조정 순손실은 2025년 2분기 기준 $7.8 million였습니다.
운영 측면의 주요 성과로는 Round Top 광상에서 갈륨과 중(重) 희토류 농축물 추출에 성공한 점과 엔지니어링, 영업, 제조 및 재무 분야의 인력 확충이 있습니다.
USA Rare Earth (NASDAQ: USAR) a publié ses résultats du deuxième trimestre 2025, soulignant les progrès vers la mise en service de son unité d'aimants à Stillwater (Oklahoma) au premier trimestre 2026. La société a signé 12 MOU et JDA représentant une production annuelle potentielle de 300 tonnes auprès de clients des secteurs aérospatial, défense, centres de données et automobile.
Les indicateurs financiers clés incluent une trésorerie de $121.8 million à la clôture du trimestre (portée à $128.1 million au 7 août 2025) et l'absence de dettes significatives. Toutefois, les pertes se sont accrues : une perte nette de $142.7 million au T2 2025 contre $2.8 million au T2 2024. La perte nette ajustée s'est élevée à $7.8 million pour le T2 2025.
Parmi les réalisations opérationnelles notables figurent l'extraction réussie de concentrés de gallium et de terres rares lourdes du gisement Round Top et le renforcement des équipes en ingénierie, ventes, production et finance.
USA Rare Earth (NASDAQ: USAR) hat seine Finanzergebnisse für das zweite Quartal 2025 veröffentlicht und den Fortschritt bei der Inbetriebnahme der Magnetfertigung in Stillwater, Oklahoma, im ersten Quartal 2026 hervorgehoben. Das Unternehmen hat 12 MOU und JDA abgeschlossen, die eine potenzielle Jahresproduktion von 300 Tonnen mit Kunden aus den Bereichen Luft- und Raumfahrt, Verteidigung, Rechenzentren und Automobilindustrie abbilden.
Zentrale Finanzkennzahlen sind eine Barmittelposition von $121.8 million zum Quartalsende (gestiegen auf $128.1 million zum 7. August 2025) und das Fehlen nennenswerter Schulden. Gleichzeitig meldete das Unternehmen deutlich höhere Verluste: einen Nettoverlust von $142.7 million im Q2 2025 gegenüber $2.8 million im Q2 2024. Der bereinigte Nettoverlust belief sich im Q2 2025 auf $7.8 million.
Zu den operativen Erfolgen zählen die erfolgreiche Gewinnung von Gallium- und schweren Seltenen-Erden-Konzentraten aus dem Round Top-Vorkommen sowie die Verstärkung des Teams in den Bereichen Technik, Vertrieb, Produktion und Finanzen.
- Strong cash position of $121.8 million with no significant debt
- Secured 12 MOUs and JDAs with potential for 300 tons of annual production
- Successfully extracted gallium and heavy rare earth concentrates from Round Top deposit
- Active engagements with over 70 companies across multiple industries
- Potential to sell out first 1,200-ton production line before full commissioning
- Net loss significantly increased to $142.7 million in Q2 2025 from $2.8 million in Q2 2024
- Operating loss widened to $8.8 million from $3.0 million year-over-year
- Increased cash burn with $7.9 million used in Q2 2025 operating activities vs $4.0 million in Q2 2024
- Substantial doubt regarding ability to continue as going concern for next 12 months
Insights
USA Rare Earth reports widening losses but maintains strong cash position as it progresses toward 2026 production launch.
USA Rare Earth's Q2 2025 results reveal a significant deterioration in financial performance despite operational progress. Net losses ballooned to
The company maintains a healthy cash position of
On the operational front, USAR has secured 12 MOUs and JDAs representing potential contracts for approximately 300 tons of annual production across aerospace, defense, data center, and automotive sectors. This represents about
Most concerning is the "going concern" warning mentioned in item 9 of the forward-looking statements, indicating substantial doubt about the company's ability to continue operations for the next twelve months. This contradicts the seemingly strong cash position and suggests there may be significant anticipated expenses or obligations not fully detailed in this release.
STILLWATER, Okla., Aug. 11, 2025 (GLOBE NEWSWIRE) -- USA Rare Earth, Inc. (Nasdaq: USAR) (“USAR” or the “Company”) today announced its financial and operational results for the second quarter and six months ended June 30, 2025.
Second Quarter Highlights
- Stillwater, Oklahoma magnet facility on track for 1Q26 commissioning.
- 12 MOUs and JDAs signed to date—representing the potential for approximately 300 tons of annual production with customers in Aerospace & Defense, Data Center, and Automotive sectors.
- Successfully extracted gallium and heavy rare earth concentrates from our Round Top deposit.
- Ended quarter with
$121.8 million cash and no significant debt - Current cash balance of
$128.1 million as of August 7, 2025 - Expanded team with key talent in engineering, sales, manufacturing, and finance.
Executive Commentary
“We are seeing a surge of customer interest as we prepare to begin production at our Stillwater, Oklahoma magnet facility in early 2026,” said Joshua Ballard, Chief Executive Officer. “With a dozen initial signed agreements and active engagements with over 70 companies across multiple high-growth industries, we have the potential to sell out our first 1,200-ton production line prior to commissioning its full capacity.”
Ballard continued, “We are seizing this pivotal moment in the rare earth mineral and magnet industry to accelerate and strengthen our mine-to-magnet supply chain. With a strong capital position, disciplined growth strategy, and clear vision, we are scaling rapidly—through targeted internal investments and strategic opportunities that expand our capabilities, enhance returns, and solidify our leadership in this quickly evolving global market.”
Financial Highlights
| Quarter-to-Date | Year-to-Date | ||||||||||||||||
| Q2’2025 | Q2’2024 | Q2’2025 | Q2’2024 | ||||||||||||||
| (In thousands, except for per share amounts) | |||||||||||||||||
| Loss from operations | $ | (8,804 | ) | $ | (3,011 | ) | $ | (17,522 | ) | $ | (7,709 | ) | |||||
| Net loss | (142,713 | ) | (2,819 | ) | (91,031 | ) | (7,491 | ) | |||||||||
| Diluted net loss per share | (1.54 | ) | (0.04 | ) | (0.99 | ) | (0.12 | ) | |||||||||
| Net cash used in operating activities | (7,909 | ) | (4,044 | ) | (18,238 | ) | (8,277 | ) | |||||||||
| Cash | 121,791 | 16,761 | |||||||||||||||
Non-GAAP Financial Highlights (1)
| Quarter-to-Date | Year-to-Date | ||||||||||||||||
| Q2’2025 | Q2’2024 | Q2’2025 | Q2’2024 | ||||||||||||||
| (In thousands, except for per share amounts) | |||||||||||||||||
| Adjusted net loss | $ | (7,844 | ) | $ | (2,826 | ) | $ | (16,312 | ) | $ | (7,299 | ) | |||||
| Adjusted net loss per common share - Diluted | (0.08 | ) | (0.05 | ) | (0.18 | ) | (0.12 | ) | |||||||||
_________________
(1) Refer to the sections “Use of 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
Certain matters discussed in this press release and on the conference call (see information below) are or contain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. These statements, which involve risks and uncertainties include statements relating to the Company’s expectations for future development, operations, business strategies 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 “anticipate”, “believe”, “can”, “continue”, “could”, “estimate”, “expect”, “forecast”, “intend”, “may”, “might”, “plan”, “possible”, “potential”, “predict”, “project”, “seek”, “should”, “strive”, “target”, “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 that could cause actual results to differ materially from our expectations. These risks and uncertainties include, but are not limited to: risks related to the Company’s 1) development of its magnet production facility and the timing of expected production milestones; 2) competition in the magnet manufacturing industry; 3) ability to grow and manage growth profitably; 4) ability to build or maintain relationships with customers and suppliers; 5) ability to attract and retain management and key employees; 6) supply and demand for rare earth minerals; 7) timing and amount of future production; 8) costs of production, capital expenditures and requirements for additional capital, including the need to raise additional capital to implement the Company’s strategic plan; 9) substantial doubt regarding its ability to continue as a going concern for the twelve months following the issuance of our second quarter 2025 Condensed Consolidated Financial Statements; 10) timing of future cash flow provided by operating activities, if any; 11) uncertainty in any mineral estimates, uncertainty in any geological, metallurgical, and geotechnical studies and opinions; and 12) transportation risks. Detailed information regarding factors that may cause actual results to differ materially has been and will be included in the Company’s periodic filings with the SEC, including the Company’s Form 10-K that the Company filed with the SEC on March 31, 2025 and the Company’s latest Quarterly Reports on Form 10-Q filed with the SEC. These statements are only predictions and involve known and unknown risks, uncertainties, and other factors. Any forward-looking statements speak only as of their date, and the Company undertakes no obligation to update any forward-looking statements to reflect events or circumstances occurring after their date or to reflect the occurrence of unanticipated events.
Use of Non-GAAP Financial Measures
This press release includes certain non-GAAP financial measures, including adjusted net loss, and adjusted net loss per common share. 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.
Notes to the Financial Results
- Adjusted net loss is a non-GAAP financial measure that the Company defines as net loss attributable to common stockholders which excludes (loss) gain on fair market value of financial instruments.
- Adjusted net loss per common share - Basic and Diluted is a non-GAAP financial measure that the Company defines as net loss attributable to common stockholders which excludes (loss) gain on fair market value of financial instruments, divided by basic and diluted shares outstanding, respectively.
Conference Call to Discuss Financial Results
The Company will hold a conference call on Monday, August 11, 2025, 4:00 PM CT / 5:00 PM ET to discuss its second quarter and six months ended June 30, 2025 results. Please see below for dial-in information.
LIVE CONFERENCE CALL:
Wednesday, August 11, 2025, 4:00 PM CT / 5:00 PM ET
US / Canada Toll-Free: +1 (866) 652-5200
Local / International Toll: +1 (412) 317-6060
CONFERENCE CALL REPLAY:
Available approximately three hours after conclusion of the live call.
Expiration: September 11, 2025
US Toll-Free: +1 (877) 344-7529
Canada Toll-Free: (855) 669-9658
Local / International Toll: +1 (412) 317-0088
Access code: 9281230
Investors may also access the live call and the replay over the internet on the “Presentations & Events” page of the Company’s investor website located at www.usare.com or at https://event.choruscall.com/mediaframe/webcast.html?webcastid=c1UqC8rH. The information in this press release should be read in conjunction with the presentation accessible on the “Presentations & Events” page of the Company’s investor website located at www.usare.com.
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 developing a rare earth sintered neo magnet (“NdFeB” or “neo”) manufacturing plant in Stillwater, Oklahoma, and intends to establish domestic rare earth and critical minerals supply, extraction, and processing capabilities to both supply its magnet manufacturing plant and market surplus materials to third parties. Rare earth magnets are critical to various business sectors and industries, including the defense, automotive, aviation, industrial, AI Robotics, medical, and consumer electronics industries, among others. USAR is planning to take a broad approach to the industries it serves with the intention of providing high quality neo magnets to a variety of industries and customers. USAR’s focus on developing domestic rare earth production aligns with national priorities, offering the potential of a sustainable and secure domestic supply of materials critical to key industries.
Contact
Investor Relations
ir@USARE.com
USA Rare Earth, Inc. Condensed Consolidated Balance Sheets (In thousands) (Unaudited) | ||||||||
| June 30, 2025 | December 31, 2024 | |||||||
| ASSETS | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 121,791 | $ | 16,761 | ||||
| Deferred offering costs | — | 5,134 | ||||||
| Prepaid expenses and other current assets | 1,754 | 378 | ||||||
| Total current assets | 123,545 | 22,273 | ||||||
| Property, plant and equipment, net | 33,031 | 26,529 | ||||||
| Mineral interests | 17,125 | 17,125 | ||||||
| Equipment deposits | 5,555 | 3,060 | ||||||
| Other non-current assets | 445 | 82 | ||||||
| Total assets | $ | 179,701 | $ | 69,069 | ||||
| LIABILITIES, MEZZANINE AND STOCKHOLDERS' (DEFICIT) EQUITY | ||||||||
| Liabilities | ||||||||
| Accounts payable | $ | 2,238 | $ | 1,823 | ||||
| Accrued liabilities | 5,134 | 3,071 | ||||||
| Deferred grants | 8,200 | 8,200 | ||||||
| Earnout liabilities | 100,007 | — | ||||||
| Warrant liabilities | 169,020 | — | ||||||
| Finance and operating leases | 1,411 | 23 | ||||||
| Other | 383 | 2,008 | ||||||
| Total liabilities | 286,393 | 15,125 | ||||||
| Mezzanine equity | 25,242 | 19,923 | ||||||
| Stockholders' (deficit) equity | (131,934 | ) | 34,021 | |||||
| Total liabilities, mezzanine and stockholders’ (deficit) equity | $ | 179,701 | $ | 69,069 | ||||
| USA Rare Earth, Inc. Condensed Consolidated Statements of Operations (In thousands, except per share amounts) (Unaudited) | ||||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Operating expenses: | ||||||||||||||||
| Selling, general and administrative | $ | 6,227 | $ | 1,286 | $ | 13,256 | $ | 3,933 | ||||||||
| Research and development | 2,577 | 1,725 | 4,266 | 3,776 | ||||||||||||
| Total operating expenses | 8,804 | 3,011 | 17,522 | 7,709 | ||||||||||||
| Loss from operations | (8,804 | ) | (3,011 | ) | (17,522 | ) | (7,709 | ) | ||||||||
| Other income (expense): | ||||||||||||||||
| (Loss) gain on fair market value of financial instruments | (134,662 | ) | 229 | (74,362 | ) | 230 | ||||||||||
| Interest, net, dividend income, and other expense | 753 | (37 | ) | 853 | (12 | ) | ||||||||||
| Total other income (loss), net | (133,909 | ) | 192 | (73,509 | ) | 218 | ||||||||||
| Net loss | (142,713 | ) | (2,819 | ) | (91,031 | ) | (7,491 | ) | ||||||||
| Net loss attributable to non-controlling interest | (207 | ) | (222 | ) | (357 | ) | (422 | ) | ||||||||
| Net loss attributable to common stockholders | $ | (142,506 | ) | $ | (2,597 | ) | $ | (90,674 | ) | $ | (7,069 | ) | ||||
| Net loss per share: | ||||||||||||||||
| Basic and diluted | $ | (1.54 | ) | $ | (0.04 | ) | $ | (0.99 | ) | $ | (0.12 | ) | ||||
| USA Rare Earth, Inc. Condensed Consolidated Statements of Cash Flows (In thousands) (Unaudited) | ||||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Cash flows from operating activities: | ||||||||||||||||
| Net loss | $ | (142,713 | ) | $ | (2,819 | ) | $ | (91,031 | ) | $ | (7,491 | ) | ||||
| Non-cash adjustments | 136,949 | (396 | ) | 78,080 | 203 | |||||||||||
| Changes in assets and liabilities | (2,145 | ) | (829 | ) | (5,287 | ) | (989 | ) | ||||||||
| Net cash used in operating activities | (7,909 | ) | (4,044 | ) | (18,238 | ) | (8,277 | ) | ||||||||
| Cash flows from investing activities: | ||||||||||||||||
| Capital expenditures and equipment deposits | (3,247 | ) | (36 | ) | (6,297 | ) | (1,055 | ) | ||||||||
| Net cash used in investing activities | (3,247 | ) | (36 | ) | (6,297 | ) | (1,055 | ) | ||||||||
| Cash flows from financing activities: | ||||||||||||||||
| Proceeds from issuance of preferred stock and warrants | — | — | 22,850 | — | ||||||||||||
| IPXX contribution of capital through merger | — | — | 22,867 | — | ||||||||||||
| Prepayment of Forward Purchase Agreements | — | — | (20,789 | ) | — | |||||||||||
| Proceeds from termination of Forward Purchase Agreements | 17,467 | — | 20,789 | — | ||||||||||||
| Issuance costs | — | (167 | ) | (8,281 | ) | (572 | ) | |||||||||
| Proceeds from issuance of equity and warrants under PIPE financing, net | 70,178 | — | 70,178 | — | ||||||||||||
| Proceeds from exercise of warrants | 21,951 | — | 21,951 | — | ||||||||||||
| Net cash provided by (used in) financing activities | 109,596 | (167 | ) | 129,565 | (572 | ) | ||||||||||
| Net change in cash and cash equivalents | $ | 98,440 | $ | (4,247 | ) | $ | 105,030 | $ | (9,904 | ) | ||||||
| Cash and cash equivalents, beginning of period | 23,351 | 7,542 | 16,761 | 13,199 | ||||||||||||
| Cash and cash equivalents, end of period | $ | 121,791 | $ | 3,295 | $ | 121,791 | $ | 3,295 | ||||||||
| USA Rare Earth, Inc. Reconciliation of Non-GAAP Financial Measures(1) (In thousands, except per share amounts) (Unaudited) | ||||||||||||||||
| This press release includes certain non-GAAP financial information because the Company plans and manages its business using such information. The following table reconciles the GAAP financial information to the non-GAAP financial information. | ||||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Net loss attributable to common stockholders | $ | (142,506 | ) | $ | (2,597 | ) | $ | (90,674 | ) | $ | (7,069 | ) | ||||
| Reversal of loss (gain) on fair market value of financial instruments | 134,662 | (229 | ) | 74,362 | (230 | ) | ||||||||||
| Adjusted net loss(2) | $ | (7,844 | ) | $ | (2,826 | ) | $ | (16,312 | ) | $ | (7,299 | ) | ||||
| Adjusted net loss per common share – basic and diluted(2) | $ | (0.08 | ) | $ | (0.05 | ) | $ | (0.18 | ) | $ | (0.12 | ) | ||||
| _________________ (1) Amounts may not total due to rounding. (2) Refer to the section “Use of Non-GAAP Financial Measures” for description of items included in adjustments. | ||||||||||||||||
FAQ
What were USA Rare Earth's (USAR) key financial results for Q2 2025?
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