USA Rare Earth (NASDAQ:USAR) Issues Earnings Results, Misses Estimates By $0.08 EPS

USA Rare Earth (NASDAQ:USAR) announced its quarterly earnings results on Monday. The company reported ($0.15) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.07) by ($0.08), FiscalAI reports. The firm had revenue of $5.82 million for the quarter.

Here are the key takeaways from USA Rare Earth’s conference call:

• Strategic platform expansion advanced: USA Rare Earth announced plans to acquire Serra Verde, invested in heavy rare-earth processor Carester, selected Blacksburg, South Carolina, for a second U.S. magnet and metals facility, and closed its acquisition of Texas Mineral Resources, consolidating Round Top ownership.
• Customer demand is building: The company has more than 100 potential magnet customers, over 20 in qualification, and MOUs and letters of intent covering approximately 2,500 metric tons of annual demand. Production purchase orders are already in hand, with first magnet sales expected by year-end.
• Management expects to benefit from a widening non-China pricing premium amid severe supply shortages, particularly for heavy rare earths. The company has already implemented higher prices, which it expects to flow through in upcoming quarters.
• Second-quarter revenue was approximately $6 million, while operating expenses were about $45 million due partly to M&A, legal, and consulting costs. Adjusted net loss was $33.5 million, or $0.15 per share, and gross margins were pressured by elevated raw-material costs.
• The company ended the quarter with roughly $1.5 billion in cash and remains on schedule for Round Top commercial operations in late 2028, U.S. metal and alloy and magnet capacity targets by 2029, and its Round Top definitive feasibility study by year-end. CEO Barbara Humpton will be succeeded by Thras Moraitis on October 1.

USA Rare Earth Price Performance

NASDAQ USAR opened at $19.04 on Tuesday. The firm has a market cap of $4.25 billion, a price-to-earnings ratio of -4.86 and a beta of 2.55. The company has a fifty day moving average price of $19.51 and a 200-day moving average price of $20.53. USA Rare Earth has a 1 year low of $11.45 and a 1 year high of $43.98.

Insider Activity

In other news, Director Carolyn Trabuco sold 13,000 shares of USA Rare Earth stock in a transaction on Monday, June 8th. The stock was sold at an average price of $22.77, for a total transaction of $296,010.00. Following the sale, the director directly owned 18,783 shares in the company, valued at $427,688.91. The trade was a 40.90% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. 9.10% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On USA Rare Earth

Institutional investors have recently bought and sold shares of the company. Larson Financial Group LLC increased its position in USA Rare Earth by 217.5% in the fourth quarter. Larson Financial Group LLC now owns 2,092 shares of the company’s stock worth $25,000 after buying an additional 1,433 shares during the last quarter. NewEdge Advisors LLC increased its stake in shares of USA Rare Earth by 158.2% in the second quarter. NewEdge Advisors LLC now owns 2,324 shares of the company’s stock worth $25,000 after purchasing an additional 1,424 shares in the last quarter. Ascentis Independent Advisors bought a new stake in shares of USA Rare Earth in the first quarter valued at approximately $27,000. Center for Financial Planning Inc. bought a new position in USA Rare Earth in the 4th quarter worth approximately $28,000. Finally, Havemeyer Place LP bought a new stake in USA Rare Earth during the 4th quarter valued at $33,000.

Wall Street Analysts Forecast Growth

USAR has been the topic of several analyst reports. Weiss Ratings upgraded USA Rare Earth from a “sell (d-)” rating to a “sell (d+)” rating in a report on Thursday, May 14th. Benchmark reissued a “buy” rating on shares of USA Rare Earth in a research note on Wednesday, June 3rd. Cantor Fitzgerald reaffirmed an “overweight” rating and set a $40.00 price target on shares of USA Rare Earth in a research report on Thursday, June 4th. Roth Capital reduced their price objective on shares of USA Rare Earth from $40.00 to $30.00 and set a “buy” rating for the company in a research report on Tuesday, July 21st. Finally, Northland Securities began coverage on shares of USA Rare Earth in a research note on Thursday, April 23rd. They set an “outperform” rating and a $45.00 target price on the stock. Nine research analysts have rated the stock with a Buy rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, USA Rare Earth currently has an average rating of “Moderate Buy” and a consensus target price of $35.83.

More USA Rare Earth News

Here are the key news stories impacting USA Rare Earth this week:

• Positive Sentiment: USA Rare Earth finalized agreements with the U.S. Department of Commerce that could unlock up to $1.6 billion in CHIPS Act funding. The capital is intended to support domestic rare-earth and advanced-materials production, reducing reliance on China. USA Rare Earth Reports Second Quarter 2026 Financial Results
• Positive Sentiment: The company announced a deal to acquire Serra Verde Group and plans for a second U.S. magnet-manufacturing facility in Blacksburg, South Carolina. These initiatives would expand USA Rare Earth’s integrated, ex-China supply chain and improve its potential to serve U.S. industrial and defense customers. USA Rare Earth CHIPS Funds and Serra Verde Deal
• Neutral Sentiment: Strength across the broader rare-earth sector, including a rally following MP Materials’ revenue beat and an aerospace agreement, may provide a favorable trading backdrop for USAR. Sector momentum, however, does not directly improve USA Rare Earth’s current results. MP Materials Rare Earth Sector Rally
• Negative Sentiment: USA Rare Earth reported a second-quarter loss of $0.15 per share, versus the consensus estimate of a $0.07 loss, while revenue of $5.82 million missed expectations by roughly 25%. The double miss is the immediate reason for the weaker stock performance and highlights continued execution and profitability risks. USA Rare Earth Stock Falls After Q2 Double Miss

USA Rare Earth Company Profile

USA Rare Earth (NASDAQ: USAR) is a development-stage critical minerals company focused on advancing a fully integrated rare earth element (REE) and lithium project in the United States. Its flagship asset is the Round Top deposit in West Texas, a large, polymetallic concentration of light and heavy rare earth elements, lithium and other co-products. The company seeks to move this asset through resource delineation, pilot-scale processing and eventual commercial production to address growing domestic demand for secure REE supply chains.

In addition to exploration, USA Rare Earth is engineering an on-site separation facility that will utilize dry magnetic separation and hydrometallurgical flowsheets to produce mixed rare earth carbonates.