Revenue jumped to $5.8M in 2026Q2 from near-zero levels, but gross margin swung to -27.2%, and operating losses widened to -$46.3M, indicating that costs far exceed revenue at pilot scale.
USA Rare Earth Inc (USAR) annual income statement — 4-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 |
|---|
| Sales/Revenue | 13.16M | 1.64M | 0 | 0 | 0 |
| Revenue Growth % | - | - | - | - | - |
| Cost of Goods Sold | 20M | 1.45M | 389K | 308K | 210K |
| COGS % of Revenue | - | 88.13% | - | - | - |
| Gross Profit | -6.84M | 195K | -389K | -308K | -210K |
| Gross Margin % | -51.97% | 11.87% | - | - | - |
| Gross Profit Growth % | - | 150.13% | -26.3% | -46.67% | - |
| Operating Expenses | 118.13M | 59.7M | 15.59M | 24.48M | 24.05M |
| OpEx % of Revenue | - | 3633.48% | - | - | - |
| Selling, General & Admin | 81.49M | 43.13M | 86.09M | 22.85M | 19.78M |
| SG&A % of Revenue | - | 2625.38% | - | - | - |
| Research & Development | 36.64M | 15.88M | 6.34M | 1.64M | 271K |
| R&D % of Revenue | - | 966.83% | - | - | - |
| Other Operating Expenses | 0 | 678K | -76.84M | 0 | 4M |
| Operating Income | -124.97M | -59.5M | -15.59M | -985.21K | -24.26M |
| Operating Margin % | -949.48% | -3621.61% | - | - | - |
| Operating Income Growth % | - | -281.8% | -1481.89% | 95.94% | - |
| EBITDA | -119.2M | -57.92M | -15.2M | 196.79K | -23.59M |
| EBITDA Margin % | -905.62% | -3525.08% | - | - | - |
| EBITDA Growth % | -307.74% | -281.13% | -7822.02% | 100.83% | - |
| D&A (Non-Cash Add-back) | 5.77M | 1.59M | 389K | 1.18M | 671K |
| EBIT | -266.09M | -298.55M | -15.59M | -985.21K | -24.26M |
| Net Interest Income | 16.82M | 5.31M | 5.75K | 11.76K | 0 |
| Interest Income | 16.83M | 5.45M | 5.75K | 11.76K | 0 |
| Interest Expense | 17K | 139K | 0 | 0 | 0 |
| Other Income/Expense | -163.8M | -239.18M | -807K | 16.25M | -1.28M |
| Pretax Income | -288.77M | -298.68M | -16.39M | -8.54M | -25.54M |
| Pretax Margin % | -2194% | -18179.18% | - | - | - |
| Income Tax | -1.25M | -160K | 0 | 0 | 0 |
| Effective Tax Rate % | 0.43% | 0.05% | 0% | 0% | 0% |
| Net Income | -284.21M | -297.56M | -15.73M | -7.42M | -23.84M |
| Net Margin % | -2159.3% | -18110.71% | - | - | - |
| Net Income Growth % | -186.1% | -1791.06% | -112.2% | 68.9% | - |
| Net Income (Continuing) | -287.52M | -298.52M | -16.39M | -8.54M | -25.54M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | -1.06M | 1.65M | 2.64M | 3.33M | 0 |
| EPS (Diluted) | -1.45 | -3.31 | -0.40 | 0.28 | -0.87 |
| EPS Growth % | -58.93% | -727.5% | -242.86% | 132.18% | - |
| EPS (Basic) | - | -3.31 | -0.40 | 0.28 | -0.87 |
| Diluted Shares Outstanding | 196.48M | 98.02M | 22.32M | 24.19M | 27.5M |
| Basic Shares Outstanding | 196.48M | 98.02M | 22.32M | 24.19M | 27.5M |
| Dividend Payout Ratio | - | - | - | - | - |
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 $0.2M in gross profit for the year, representing a gross profit margin of 11.9%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Dilution risk from ongoing losses
Metrics are mathematically derived from official filings.
Nascent Revenue Inflection
USAR's revenue jumped to $5.8M in 2026Q2 from near-zero levels a year earlier, per the latest quarterly data, signaling early commercial traction but still minimal relative to costs.
The sequential step-up from $1.6M in 2025Q4 to $5.8M in 2026Q2 suggests initial product sales or pilot off-takes are materializing, though the base is tiny. The absence of revenue in prior quarters indicates a pre-commercial phase, and the sustainability of this growth depends on whether it reflects recurring magnet/oxide sales or one-off development-related revenue. Investors should monitor the mix and repeatability of these sales.
Gross Margin Swing to Negative
Gross margin deteriorated to -27.2% in 2026Q2 from +1.9% in 2026Q1, as reported in the income statement, implying production costs now exceed revenue at pilot scale.
The negative gross margin suggests that the cost of producing initial output—likely from pilot processing or small-scale magnet manufacturing—is above market prices, reflecting inefficiencies and high fixed costs. This is typical for development-stage companies, but the magnitude indicates a steep learning curve. Achieving positive gross margins will require scaling the continuous ion exchange process to lower per-unit costs, a key technical milestone.
Overhead Decoupled from Revenue
Operating losses widened to -$46.3M in 2026Q2, with SG&A of $32.6M far exceeding revenue, per the latest quarterly data, indicating no operating leverage yet.
SG&A expenses have grown rapidly, reaching $32.6M in 2026Q2, while revenue remains nominal, causing operating margin to remain deeply negative at -8.0% (though this is distorted by the small revenue base). The company is investing heavily in corporate infrastructure and development, but these costs are not yet generating proportional revenue. Operating leverage will only emerge once revenue scales significantly, which is unlikely until commercial production ramps.
Volatile Net Income Distortions
Net income swung from a $51.8M gain in 2025Q1 to a -$156.7M loss in 2025Q3, per the income statement, reflecting non-cash items and one-time adjustments rather than operations.
The extreme swings in net income, including a positive quarter in 2025Q1 and a massive loss in 2025Q3, suggest the presence of non-recurring items such as warrant revaluations, impairments, or tax benefits. The 2026Q2 net loss of -$10.3M is relatively small compared to operating loss, implying a tax benefit or other credits. Investors should adjust for these items to assess underlying cash burn, which is more reliably reflected in operating losses.
R&D and SG&A Escalation
R&D spending rose to $10.8M in 2026Q2 from $1.4M in 2024Q4, as per the income statement, indicating intensified investment in process development and magnet technology.
The sharp increase in R&D reflects the company's focus on refining its separation and magnet manufacturing processes, which is essential for future commercialization but adds to current losses. SG&A also grew to $32.6M, likely due to corporate expansion and pre-commercial activities. While these investments are necessary, they underscore the high fixed-cost structure and the need for successful execution to avoid prolonged cash burn.
2026Q2: First Commercial Sales
The 2026Q2 quarter marked a pivotal shift as revenue reached $5.8M, the first meaningful sales in the company's history, per the income statement, though margins turned negative.
This quarter represents a transition from a pure development stage to early commercialization, with revenue appearing for the first time in the provided data. However, the negative gross margin indicates that the company is selling at a loss, likely due to pilot-scale inefficiencies. The lasting impact will depend on whether the company can scale production to achieve positive margins and whether these sales are recurring or one-off.
What Could Invalidate the Base Case
Despite the revenue step-up, the extreme negative margins and reliance on external capital suggest that any delay in scaling could force dilutive raises, per the income statement data.
The company's operating margin of -3,621.6% on TTM revenue of $1.6M underscores a massive disconnect between costs and revenue, which may not be sustainable without continued capital infusions. The $359.9M cash pile provides a runway, but the high burn rate—evidenced by $46.3M operating loss in 2026Q2 alone—implies that without successful commercialization, dilution is likely. Additionally, the negative gross margin suggests that even initial sales are unprofitable, raising questions about the viability of the current cost structure. Investors should monitor whether revenue growth can outpace cost escalation and whether the company can achieve positive gross margins before cash runs out.