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USA Rare Earth Reports its Second Quarter 2025 Financial Results

1. USA Rare Earth is set to commission a new facility by 1Q26. 2. Twelve MOUs signed, projecting 300 tons annual production. 3. Cash position improved to $128.1 million with no significant debt. 4. Net loss dramatically increased due to operational costs. 5. CEO cites strong customer interest across multiple industries.

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Why Bullish?

The significant cash position and facility commissioning align with future growth. Previous instances show similar announcements surged stock prices for other companies in the sector.

How important is it?

The company's operational strategy and customer commitments position it well for market expansion, warranting investor interest.

Why Long Term?

While immediate losses are present, the operational scale-up and new contracts suggest value creation over time, akin to successful launches by peers.

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August 11, 2025 16:01 ET  | Source: USA Rare Earth, Inc. 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 debtCurrent cash balance of $128.1 million as of August 7, 2025Expanded 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 ETUS / Canada Toll-Free: +1 (866) 652-5200Local / International Toll: +1 (412) 317-6060 CONFERENCE CALL REPLAY:Available approximately three hours after conclusion of the live call.Expiration: September 11, 2025US Toll-Free: +1 (877) 344-7529Canada Toll-Free: (855) 669-9658Local / International Toll: +1 (412) 317-0088Access 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 Relationsir@USARE.com USA Rare Earth, Inc.Condensed Consolidated Balance Sheets(In thousands)(Unaudited)  June 30,2025 December 31,2024ASSETS    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.

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