USA Rare Earth (Nasdaq: USAR) posted Q1 2026 results on 13 May that confirm the company’s usa rare earth results story is now one of capital deployment rather than capital formation — $1.75 billion in cash, a commissioned magnet plant, and two transformative acquisitions in progress.
USA Rare Earth Results Q1 2026: Key Financials
Revenue for the three months ended 31 March 2026 reached $5.7 million, generated entirely by Less Common Metals (LCM), the company’s UK-based metals and alloys subsidiary. That compares with zero revenue in Q1 2025. Gross margin was 1.9%, reflecting early-stage commercial operations at LCM rather than the higher-margin magnet business, which only commissioned in late March.
GAAP net loss attributable to USAR came in at $67.0 million ($0.34 diluted), driven primarily by $43.6 million in non-cash fair value movements on warrant and earnout liabilities. On an adjusted basis — stripping those non-cash items — the adjusted net loss was $24.1 million ($0.12 per diluted share), ahead of the analyst consensus of $0.14.
| Metric | Q1 2026 | Q1 2025 |
|---|---|---|
| Revenue | $5.7m | $0 |
| Gross margin | 1.9% | — |
| Loss from operations | ($36.7m) | ($8.7m) |
| GAAP net loss (USAR) | ($67.0m) | +$51.8m |
| Adjusted net loss | ($24.1m) | ($12.0m) |
| Adjusted EPS (diluted) | ($0.12) | ($0.14) |
| Cash | $1.75bn | $359.9m |
| Capex | $38.6m | $3.1m |
The cash position reflects the $1.5 billion common stock PIPE closed in January 2026, which raised the balance from $359.9 million at year-end 2025 to $1.75 billion at 31 March. Capital expenditure of $38.6 million in the quarter was directed primarily at Stillwater construction and equipment.
Stillwater Phase 1a: USA Rare Earth Becomes a Magnet Manufacturer
The operationally significant event in the quarter was the commissioning of Phase 1a at the Stillwater, Oklahoma magnet manufacturing facility on 26 March 2026. The facility — staffed by more than 100 employees — is now producing sintered neodymium-iron-boron (NdFeB) permanent magnets for customer qualification, with commercial sales guided for the second half of 2026.
Phase 1a targets a run-rate capacity of 600 metric tonnes per annum (MTPA) by Q4 2026. Phase 1b is expected to bring total Stillwater capacity to 1,200 MTPA in Q1 2027. Customer engagement spans defence contractors, semiconductor manufacturers, heavy equipment OEMs, and aerospace primes. For context on why magnet-grade neodymium prices and dysprosium benchmarks matter to Stillwater’s economics, both feed directly into NdFeB magnet production costs.
LCM, the Cheshire, UK subsidiary, is separately expanding metal and alloy capacity to 3,000 MTPA by Q4 2026. In April, LCM completed its first commercial pour of yttrium metal at 99–99.5% purity — placing USAR among the handful of producers operating outside China for that material.
Serra Verde and Round Top: The Upstream Build
In April 2026, USAR signed a definitive agreement to acquire 100% of Serra Verde Group — owner of the Pela Ema mine in Goiás, Brazil — for approximately $2.8 billion ($300 million cash plus around 127 million shares). Serra Verde is the only large-scale producer of all four magnetic rare earths — neodymium, praseodymium, dysprosium, and terbium — operating outside Asia. The deal includes a 15-year offtake agreement with a US government-financed SPV, with price floors on NdPr, dysprosium, and terbium. Closing is expected in Q3 2026. A full breakdown is available in the Serra Verde acquisition analysis.
At Round Top in Hudspeth County, Texas, Fluor Corporation and WSP Global have been appointed as EPCM partners. A preliminary feasibility study is due Q3 2026 and the definitive feasibility study in Q1 2027. In May, USAR received a $14.2 million grant from the Texas Semiconductor Innovation Fund to accelerate the project, which is forecast to generate around 260 jobs and more than $1.4 billion in capital investment in West Texas.
Separately, USAR is finalising definitive documentation for a proposed $1.6 billion funding package from the US Department of Commerce CHIPS Program, subject to milestone achievement. The company had guided completion of that agreement for May 2026; it had not been formally signed as of the Q1 results release on 13 May.
What to Watch
Three milestones will define USAR’s trajectory through the remainder of 2026: signing of the DOC definitive funding agreement (guided May 2026), closing the Serra Verde acquisition (guided Q3 2026), and achieving the 600 MTPA magnet run-rate at Stillwater by Q4 2026. The company’s integrated Western rare earth supply chain ambition — mine to magnet, Texas to Oklahoma to Cheshire to Lacq — depends on all three executing on schedule. For comparison with the other significant US producer, see the MP Materials Q1 2026 results.
This article is for informational purposes only and does not constitute investment advice. Prices and forecasts are subject to change without notice.
What revenue did USA Rare Earth report in Q1 2026?
USA Rare Earth reported Q1 2026 revenue of $5.7 million, generated entirely by its Less Common Metals (LCM) subsidiary in Cheshire, UK. This compares with zero revenue in Q1 2025 and came ahead of analyst consensus estimates of approximately $4.2 million.
What is the Stillwater magnet facility and when did it commission?
The Stillwater facility in Oklahoma is USA Rare Earth’s sintered NdFeB permanent magnet manufacturing plant. Phase 1a was commissioned on 26 March 2026, enabling commercial magnet production for customer qualification. The company targets 600 MTPA run-rate capacity by Q4 2026 and 1,200 MTPA total capacity when Phase 1b completes in Q1 2027.
What is the Serra Verde acquisition and why does it matter?
In April 2026, USA Rare Earth signed a definitive agreement to acquire Serra Verde Group, owner of the Pela Ema rare earth mine in Brazil, for approximately $2.8 billion. Serra Verde is the only large-scale producer of all four magnetic rare earths — neodymium, praseodymium, dysprosium, and terbium — operating outside Asia, making it strategically critical for Western magnet supply chains.
What is USA Rare Earth’s cash position after Q1 2026?
USA Rare Earth held approximately $1.75 billion in cash as of 31 March 2026, following the closing of a $1.5 billion common stock PIPE in January 2026. The company also has a proposed $1.6 billion US Department of Commerce CHIPS Program funding package in final documentation stages.
What is the Round Top rare earth project and what stage is it at?
Round Top is USA Rare Earth’s heavy rare earth deposit in Hudspeth County, Texas. Fluor Corporation and WSP Global have been appointed as EPCM partners. A preliminary feasibility study is targeted for Q3 2026 and a definitive feasibility study for Q1 2027. In May 2026, the project received a $14.2 million grant from the Texas Semiconductor Innovation Fund.
