United States Antimony Corporation (UAMY) Income Statement

The 162.8% YoY growth in 2025Q2 was likely driven by a combination of higher antimony prices and increased throughput, but the subsequent sequential decline of 24.7% in 2026Q2 indicates that the surge was not sustainable. Revenue in 2026Q2 ($7.9M) is below the 2025Q4 peak of $13.0M, and the trend appears to be decelerating. This suggests that the company may have benefited from a temporary supply disruption or inventory restocking, which has now reversed. Investors should monitor whether the revenue base can stabilize above pre-surge levels.

The extreme volatility in gross margin—from 33.9% in 2025Q1 to -70.3% in 2026Q1—highlights the company's inability to pass through input cost increases. The negative gross margin in 2026Q1 and 2026Q2 suggests that the cost of purchased antimony concentrates exceeded the selling price of finished products, a classic sign of a toll processor without captive ore. This structural weakness is further underscored by the fact that even in quarters with positive gross margins, they remain below 30%, which is insufficient to cover SG&A and other overheads. Without a captive mine or long-term supply contracts, margin stability appears unlikely.

UAMY's operating leverage is clearly negative: even when revenue peaked at $13.0M in 2025Q4, operating income was -$3.9M, and in 2026Q2, a $7.9M revenue base produced a -$7.0M operating loss. SG&A expenses have been volatile, spiking to $6.0M in 2025Q4 and $6.3M in 2025Q3, which suggests that the company is incurring fixed costs that do not vary with revenue. The lack of operating leverage implies that the business model requires a much higher revenue base to achieve breakeven, or significant cost restructuring. The negative operating margin of -88.1% in 2026Q2 is particularly concerning, as it indicates that overheads are not being absorbed even with the recent revenue surge.

The cost structure is clearly problematic: in 2026Q1, COGS of $11.6M exceeded revenue of $6.8M, resulting in a gross loss of $4.8M. This suggests that the company is paying too much for feedstock or experiencing operational inefficiencies. SG&A expenses have also been erratic, with a spike to $6.0M in 2025Q4 and $6.3M in 2025Q3, which may reflect one-time costs or a lack of cost discipline. The combination of high COGS and volatile SG&A has kept operating margins deeply negative, and there is no evidence of expense control. Management's ability to rein in costs is critical to any turnaround.

2025Q2 was the only quarter in the provided data with positive operating income ($20K) and a gross margin of 27.0%, which may have been driven by a favorable pricing environment or lower input costs. However, this proved to be a false dawn, as the following quarters saw a return to negative operating margins, culminating in the -88.1% in 2026Q2. The inability to sustain profitability despite high revenue growth suggests that the company's cost structure is fundamentally misaligned with its revenue model. The lasting impact of this inflection is that it highlights the company's vulnerability to commodity price swings and its lack of a durable competitive advantage.