The company's transition to commercial activity remains in a nascent phase, evidenced by a 2026Q1 gross margin of -35.1% as production costs continue to outpace the $5.7 million in quarterly revenue.
| Sales/Revenue | 7.34M | 1.64M | 0 | 0 | 0 |
| Revenue Growth % | - | - | - | - | - |
| Cost of Goods Sold | 10.66M | 3.03M | 217.98M | 0 | 0 |
| COGS % of Revenue | - | 184.66% | - | - | - |
| Gross Profit | -3.32M | -1.39M | 958.89M | 0 | 0 |
| Gross Margin % | -45.28% | -84.66% | - | - | - |
| Gross Profit Growth % | - | -100.15% | - | - | - |
| Operating Expenses | 84.14M | 58.11M | 15.2M | 1.18M | 24.26M |
| OpEx % of Revenue | - | 3536.94% | - | - | - |
| Selling, General & Admin | 71.86M | 42.23M | 86.09M | 1.18M | 19.78M |
| SG&A % of Revenue | - | 2570.12% | - | - | - |
| Research & Development | 28.45M | 15.88M | 6.34M | 0 | 271K |
| R&D % of Revenue | - | 966.83% | - | - | - |
| Other Operating Expenses | -1000K | 0 | -77.23M | 0 | 4.21M |
| Operating Income | -87.46M | -59.5M | -15.59M | -1.18M | -24.26M |
| Operating Margin % | -1191.39% | -3621.61% | - | - | - |
| Operating Income Growth % | - | -281.8% | -1218.53% | 95.13% | - |
| EBITDA | -83.83M | -57.92M | -15.2M | 0 | -23.59M |
| EBITDA Margin % | -1142.01% | -3525.08% | - | - | - |
| EBITDA Growth % | -251.53% | -281.13% | - | 100% | - |
| D&A (Non-Cash Add-back) | 3.63M | 1.59M | 389K | 1.18M | 671K |
| EBIT | -87.46M | -59.5M | -15.59M | 6.75M | -24.26M |
| Net Interest Income | 17.23M | 5.45M | 5.75K | 11.76K | 0 |
| Interest Income | 17.23M | 5.45M | 5.75K | 11.76K | 0 |
| Interest Expense | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -331.34M | -239.18M | -807K | 7.93M | -1.28M |
| Pretax Income | -418.8M | -298.68M | -16.39M | 6.75M | -25.54M |
| Pretax Margin % | -5705% | -18179.18% | - | - | - |
| Income Tax | -737K | -160K | 147.73M | 0 | 0 |
| Effective Tax Rate % | 0.18% | 0.05% | -901.23% | 0% | 0% |
| Net Income | -416.38M | -297.56M | -15.73M | 6.75M | -23.84M |
| Net Margin % | -5671.98% | -18110.71% | - | - | - |
| Net Income Growth % | -879.26% | -1791.06% | -333.18% | 128.3% | - |
| Net Income (Continuing) | -418.07M | -298.52M | 400.89M | 6.75M | -25.54M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 574K | 1.65M | 2.64M | 0 | 0 |
| EPS (Diluted) | -2.12 | -3.31 | 0.39 | 0.28 | -0.87 |
| EPS Growth % | -584.43% | -948.72% | 39.29% | 132.18% | - |
| EPS (Basic) | - | -3.31 | 0.39 | 0.28 | -0.28 |
| Diluted Shares Outstanding | 196.48M | 98.02M | 22.32M | 24.19M | 27.5M |
| Basic Shares Outstanding | 196.48M | 98.02M | 22.32M | 24.19M | 84.77M |
| Dividend Payout Ratio | - | - | - | - | - |
Commercialization and Scaling Execution
As indicated by the most recent quarterly data, USAR reported $5.7 million in revenue, marking a transition from a zero-revenue state to early-stage commercial activity, though the sustainability of this growth remains highly speculative given the company's current reliance on pilot-scale operations and non-recurring project-based milestones.
The emergence of revenue in 2026Q1 suggests the company is beginning to monetize its pilot-scale output, yet the lack of consistent historical revenue makes it difficult to project a growth trajectory. Investors should monitor whether these figures represent recurring off-take agreements or merely one-time research-related inflows that do not signal long-term market demand.
According to the provided financial statements, USAR's gross margin reached -35.1% in 2026Q1, reflecting a cost structure where production expenses significantly outpace revenue, a common characteristic for industrial materials firms that have yet to achieve the economies of scale necessary for profitable rare earth oxide separation.
The negative gross margins highlight the high cost of ion-exchange processing and the inefficiencies inherent in pilot-scale manufacturing. Until the company can optimize its continuous ion exchange technology and scale production, margins will likely remain under significant pressure, potentially requiring further capital infusions to bridge the gap to commercial viability.
Based on reported figures, the company's operating margin of -6.4% in 2026Q1, while improved from previous periods, underscores a massive disconnect between administrative overhead and revenue generation, suggesting that the current cost base is scaled for future production capacity rather than current, limited commercial output levels.
The high SG&A and R&D expenses relative to revenue indicate that the company is heavily investing in the infrastructure and technical expertise required for its mine-to-magnet model. This operating leverage is currently negative, and investors should watch for a narrowing of this gap as the company moves toward full-scale commercial production.
As reported in financial statements, the company's cost structure is dominated by substantial R&D and SG&A outlays, with R&D expenses reaching $14.2 million in 2026Q1, reflecting the heavy investment required to refine proprietary processing techniques and prepare for the upcoming permanent magnet manufacturing facility launch.
The concentration of costs in R&D and administrative functions suggests that management is prioritizing technical readiness over immediate cost containment. This strategy appears to be a deliberate trade-off, though it leaves the company vulnerable to liquidity risks if the transition to commercial production faces unforeseen technical or regulatory delays.
Quick answers to the most common questions about buying USAR stock.
For fiscal year 2025, USA Rare Earth Inc (USAR) reported total revenue of $1.6M.
USA Rare Earth Inc (USAR) reported a net loss of $297.6M for the fiscal year ending 2025.
USA Rare Earth Inc (USAR) reported an operating income of $-59.5M, resulting in an operating profit margin of -3621.6%. This margin reflects the operational efficiency of the business before interest and taxes.
USA Rare Earth Inc (USAR) generated $-1.4M in gross profit for the year, representing a gross profit margin of -84.7%. This demonstrates the company's core pricing power and production efficiency.