Free cash flow deteriorated to -$56.7M in 2026Q2, with capital expenditures of $38.6M in 2026Q1, reflecting heavy investment in plant construction while operating cash flow of -$56.7M far exceeded the net loss of -$10.3M, indicating significant non-cash charges.
USA Rare Earth Inc (USAR) cash flow statement — 4-year operating, investing & financing cash flows
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 |
|---|
| Cash from Operations | -106.07M | -48.98M | -1.4M | -948.01K | -14.8M |
| Operating CF Margin % | - | -2981.44% | - | - | - |
| Operating CF Growth % | -5098.37% | -3402.52% | -47.53% | 93.59% | - |
| Net Income | -284.21M | -298.52M | 7.9M | 8.1K | -25.54M |
| Depreciation & Amortization | 4.8M | 0 | 0 | 0 | 671K |
| Stock-Based Compensation | 7.95M | 0 | 0 | 0 | 3.23M |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 201.72M | 257.88M | -9.44M | -956.13K | 1.35M |
| Working Capital Changes | -34.94M | -8.34M | 140K | 24 | 5.49M |
| Change in Receivables | -2.51M | -599K | 0 | 0 | 0 |
| Change in Inventory | -26.43M | -3.21M | 0 | 0 | 0 |
| Change in Payables | 4.76M | -5.49M | 1.09M | 0 | 320K |
| Cash from Investing | -241.66M | -139.57M | 246.92M | -251.25M | -15.15M |
| Capital Expenditures | -115.49M | -37.36M | 0 | 0 | -5.11M |
| CapEx % of Revenue | 877.44% | 2273.83% | - | - | - |
| Acquisitions | 0 | -102.21M | 0 | 0 | -10.04M |
| Investments | - | - | - | - | - |
| Other Investing | -126.17M | 0 | 0 | 0 | 0 |
| Cash from Financing | 1.82B | 531.72M | -245.79M | 252.47M | 22.26M |
| Debt Issued (Net) | -1.92M | 357K | -245.72M | 1M | 0 |
| Equity Issued (Net) | 1.9B | 517.17M | -75K | 252.58M | -6.9M |
| Dividends Paid | 0 | 0 | -12.02M | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -78.46M | 14.19M | 12.02M | -1.1M | 29.16M |
| Net Change in Cash | 1.47B | 343.16M | -273.56K | 275.67K | -7.7M |
| Free Cash Flow | -245.52M | -86.34M | -1.4M | -1.14K | -19.91M |
| FCF Margin % | -1865.38% | -5255.26% | - | - | - |
| FCF Growth % | -856.66% | -6073.76% | -122473.53% | 99.99% | - |
| FCF per Share | -1.25 | -0.88 | -0.06 | -0.00 | -0.72 |
| FCF Conversion (FCF/Net Income) | 0.86x | 0.16x | 0.09x | 0.13x | 0.62x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 |
Quick answers to the most common questions about buying USAR stock.
USA Rare Earth Inc (USAR) generated $-49.0M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
USA Rare Earth Inc (USAR) reported negative free cash flow of $86.3M in 2025, indicating capital requirements exceeded cash from operations.
USA Rare Earth Inc (USAR) spent $37.4M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
Key Metrics
Top Statement Risk
Dilution risk from ongoing losses
Metrics are mathematically derived from official filings.
Cash Conversion Distorted by Non-Cash Items
In 2026Q2, operating cash flow of -$56.7M far exceeded the net loss of -$10.3M, per the cash flow statement, implying significant non-cash charges or working capital outflows that obscure true cash burn.
The OCF/NI ratio of 5.49 in 2026Q2 suggests that reported net income understates the cash consumed, likely due to non-cash impairments or one-time items. In contrast, 2025Q3 showed a net loss of -$156.7M but operating cash outflow of only -$2.8M, indicating large non-cash write-downs. This volatility in the gap between net income and operating cash flow signals that earnings quality is low and investors should focus on cash burn rather than reported losses.
FCF Burn Accelerating with Revenue Inflection
Free cash flow deteriorated from -$12.3M in 2025Q1 to -$56.7M in 2026Q2, per the cash flow statement, despite revenue rising to $5.8M, indicating that scaling operations is consuming cash faster than sales growth.
The FCF margin turned from negative to deeply negative, with 2026Q2 FCF margin at -9.7% on a quarterly basis, but the absolute burn is escalating. The company's cash runway, based on the $359.9M cash pile and current burn rate, appears sufficient for several quarters, but the trajectory suggests that without additional capital, the runway could shorten if burn continues to increase. The step-up in revenue has not yet translated into positive cash flow, underscoring the pre-commercial stage.
Capital Intensity Surges with Construction
Capital expenditures jumped to $38.6M in 2026Q1 and $24.0M in 2025Q4, per the cash flow statement, reflecting heavy investment in the Round Top processing plant and magnet facility, with CapEx/Revenue reaching 6.8% in 2026Q1.
The sporadic but large CapEx outlays indicate a project in the construction phase, with spending concentrated in recent quarters. The lack of consistent CapEx in earlier periods suggests that the company is now committing significant capital to build out its integrated value chain. Given the company's minimal revenue, capital intensity is extremely high, and investors should monitor whether these investments will yield commercial production as planned.
Working Capital Swings Reflect Development Stage
Working capital changes have been volatile, with a -$11.2M outflow in 2025Q4 and a +$8.2M inflow in 2025Q3, per the cash flow statement, indicating that inventory build-up and payables management are not yet stable.
The erratic working capital changes are typical of a development-stage company where inventory and receivables are minimal but can fluctuate with pilot production and supplier payments. The 2026Q2 working capital change of $0 suggests a stabilization, but the lack of consistent data makes it difficult to assess efficiency. As the company scales, working capital management will become a critical factor in cash flow predictability.
Dividends and Buybacks Minimal, Cash Hoarded
Dividends paid totaled $733K in 2026Q2 and $108.5M in 2024Q4, per the cash flow statement, while buybacks were zero, indicating that capital deployment is focused on project development rather than shareholder returns.
The large dividend payment in 2024Q4 appears anomalous and may represent a special distribution or return of capital, but recent quarters show minimal distributions. The company is retaining cash to fund its capital-intensive build-out, which is appropriate for a development-stage miner. However, the lack of buybacks and minimal dividends means shareholders rely entirely on equity appreciation, which is tied to execution milestones.
Cumulative Losses vs Cash Burn Divergence
Over the last ten quarters, cumulative net income was -$370.9M while cumulative operating cash flow was -$125.4M, per the cash flow statement, indicating that reported losses overstate cash consumption due to non-cash items.
The gap between cumulative net income and operating cash flow is substantial, with net income being more negative by $245.5M. This suggests that a significant portion of the reported losses are non-cash, such as impairments or stock-based compensation, which do not affect cash. However, the cash burn is still substantial, and the company's ability to fund operations without further dilution is a key risk. The divergence highlights the importance of cash flow analysis over earnings for this company.
What the Cash Flow Statement Obscures
The cash flow statement shows zero SBC in several quarters, but 2026Q1 reported $4.9M, per the cash flow statement, suggesting that stock-based compensation may be understated or inconsistently reported, potentially masking true economic dilution.
The absence of SBC in many quarters, despite its presence in others, may indicate that the company capitalizes certain equity-based costs or that reporting is incomplete. Additionally, the large CapEx figures may include capitalized exploration and evaluation costs, which could overstate the balance sheet while understating the true cash burn. Investors should scrutinize the cash flow statement for off-balance-sheet obligations or restricted cash that could limit the apparent $359.9M liquidity buffer.