Usa Rare Earth, Inc. (USAR)
NASDAQ:USAR
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USA Rare Earth
(NASDAQ:USAR)
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Rating:58Neutral
Price Target:
$28.00
â–²(40.35% Upside)
Action:Reiterated
Date:06/06/26
The score is held back primarily by weak profitability and volatile revenues despite recent cash-flow improvement and a strong, low-leverage balance sheet. Technicals are supportive with price above key moving averages and positive MACD. Strategic progress and financing/corporate developments are constructive, but execution, dilution, and limited near-term financial visibility keep the overall score moderate.
Positive Factors
Balance Sheet Strength
Zero reported debt with roughly $1.9B of equity and ~$2.13B of assets provides durable financial flexibility to fund multi-year, capital-intensive buildout. Low leverage reduces near-term refinancing risk and supports staged capex and milestone spending without immediate pressure from creditors.
Negative Factors
Weak Profitability
Despite strong reported gross margins, the company remains deeply unprofitable on a TTM basis due to high operating expenses and large noncash adjustments. Sustained losses erode returns on a sizable equity base and imply a prolonged path to positive net income and shareholder value realization.
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Positive Factors
Negative Factors
Balance Sheet Strength
Zero reported debt with roughly $1.9B of equity and ~$2.13B of assets provides durable financial flexibility to fund multi-year, capital-intensive buildout. Low leverage reduces near-term refinancing risk and supports staged capex and milestone spending without immediate pressure from creditors.
Read all positive factors
USA Rare Earth (USAR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.01B
Dividend YieldN/A
Average Volume (3M)18.27M
Price to Earnings (P/E)―
Beta (1Y)-0.53
Revenue GrowthN/A
EPS Growth-493.47%
CountryUS
Employees30
SectorBasic Materials
Sector Strength58
IndustryIndustrial Materials
Share Statistics
EPS (TTM)-3.89
Shares Outstanding223,035,370
10 Day Avg. Volume18,444,919
30 Day Avg. Volume18,265,074
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)2.37
Price to Sales (P/S)709.95
P/FCF Ratio-13.51
Enterprise Value/Market Cap0.19
Enterprise Value/Revenue131.97
Enterprise Value/Gross Profit-291.46
Enterprise Value/Ebitda-11.56
Forecast
1Y Price Target
$38.40Price Target Upside92.48% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
EPS Forecast (FY)-0.51
Revenue Forecast (FY)$79.31M
USA Rare Earth Business Overview & Revenue Model
Company Description
USA Rare Earth, Inc. operates as a magnet manufacturing company. The Company develops a NdFeB magnet manufacturing, minerals supply, extraction, and processing plant. USA Rare Earth serves defense, automotive, aviation, industrial, medical, and co...
How the Company Makes Money
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USA Rare Earth Earnings Call Summary
Earnings Call Date:May 13, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 17, 2026
Earnings Call Sentiment Positive
The call highlights substantial strategic progress: transformational M&A (Serra Verde), a major PIPE ($1.5B) and anticipated Dept. of Commerce support ($1.6B LOI), operational milestones (Stillwater Phase 1a, commissioning hydromet demos, first commercial Yttrium pour) and clear ramp targets for magnet and metal-making capacity. These positives are tempered by early-stage revenue ($6M), a Q1 net loss of $67M (adjusted loss $24.1M), elevated operating spend, dilution and execution/timing risks tied to closing transactions and funding documentation, and remaining uncertainty around Carester volume allocations. On balance, the company appears well-financed and making tangible operational progress, but key near-term outcomes hinge on closing the announced transactions and meeting ramp milestones.Positive Updates
Strong Cash Position and Financing
Ended Q1 with approximately $1.75 billion in cash (includes $1.5 billion PIPE closed in January) and a Letter of Intent with the U.S. Department of Commerce for $1.6 billion in funding (definitive documentation expected this month), materially derisking the buildout and providing liquidity to accelerate the mine-to-magnet strategy.
Negative Updates
Reported Net Loss and Noncash Adjustments
Reported net loss attributable to common stockholders of $67.0 million (loss per share $0.34), which includes a noncash fair value adjustment of $43.6 million related to warrant and earn-out liabilities; adjusted net loss excluding that adjustment was $24.1 million (adjusted loss per share $0.12).
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Q1-2026 Updates
Positive
Negative
Strong Cash Position and Financing
Ended Q1 with approximately $1.75 billion in cash (includes $1.5 billion PIPE closed in January) and a Letter of Intent with the U.S. Department of Commerce for $1.6 billion in funding (definitive documentation expected this month), materially derisking the buildout and providing liquidity to accelerate the mine-to-magnet strategy.
Read all positive updates
Company Guidance
Management said they will not provide formal financial guidance now but gave detailed operational and financial metrics: Q1 revenues were ≈ $6M with gross profit slightly positive, operating expenses ≈ $37M (adjusted ongoing Opex ≈ $25M), net loss attributable to common ≈ $67M (loss/share $0.34) including a $43.6M non‑cash fair‑value adjustment, adjusted net loss ≈ $24.1M (adj loss/share $0.12); quarter‑end cash ≈ $1.75B (includes the $1.5B PIPE closed in January) and Q1 capex ≈ $40M. They expect to finalize $1.6B Department of Commerce funding documentation this month and to close the Serra Verde deal (consideration: $300M cash + ~127M shares; 8‑K valuation $3.64B with potential +25% contingent upside). Operational targets include commissioning three Wheat Ridge hydromet demonstrations within weeks, initiating customer‑ready sintered NdFeB magnet production in Q2 and beginning sales in H2 2026, ramping Stillwater to a 600 metric ton/year run rate by year‑end (with later ramp toward 1,200 tpy), bringing finishing equipment online at the start of Q3, scaling LCM metal‑making and strip‑cast capacity to 3,000 tpy by Q4, Carester to start ramping at year‑end and scale through 2027, completing the Round Top definitive feasibility study by year‑end and publishing in Q1 2027, commencing a 3‑rig >15,000 ft core drilling campaign, and noting a potential Phase‑2 doubling of Pela Ema capacity; customers are seeking safety stocks (OEMs directing up to a 1‑year supply) and some buyers have Jan 1, 2027 non‑China sourcing deadlines.USA Rare Earth Financial Statement Overview
Summary
Income Statement
28
Negative
Balance Sheet
64
Positive
Cash Flow
58
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 7.34M | 1.64M | 0.00 | 0.00 | 0.00 |
| Gross Profit | -3.32M | -1.39M | 958.89M | 0.00 | 0.00 |
| EBITDA | -83.83M | -57.92M | -15.20M | 7.93M | -23.59M |
| Net Income | -416.38M | -297.56M | -15.73M | 6.75M | -23.84M |
Balance Sheet | |||||
| Total Assets | 2.13B | 695.00M | 71.26M | 259.47M | 5.79B |
| Cash, Cash Equivalents and Short-Term Investments | 1.75B | 359.93M | 2.10K | 275.67K | 0.00 |
| Total Debt | 11.37M | 3.05M | 1.20M | 0.00 | 3.36B |
| Total Liabilities | 247.47M | 200.71M | 17.09M | 13.41M | 3.60B |
| Stockholders Equity | 1.88B | 492.63M | 24.14M | 246.06M | 2.19B |
Cash Flow | |||||
| Free Cash Flow | -131.10M | -86.34M | -1.40M | -1.14K | -19.91M |
| Operating Cash Flow | -57.11M | -48.98M | -1.40M | -1.14K | -14.80M |
| Investing Cash Flow | -175.16M | -139.57M | 246.92M | -251.25M | -15.15M |
| Financing Cash Flow | 1.96B | 531.72M | -245.79M | 252.47M | 22.26M |
USA Rare Earth Risk Analysis
USA Rare Earth disclosed 56 risk factors in its most recent earnings report. USA Rare Earth reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
USA Rare Earth Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
62 Neutral | $424.25M | ― | -63.85% | ― | 776.51% | 38.07% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
61 Neutral | $10.54B | -147.69 | -3.49% | ― | 60.93% | 34.20% | |
58 Neutral | $5.01B | -10.60 | -76.51% | ― | ― | -493.47% | |
52 Neutral | $1.30B | -36.28 | -35.30% | ― | ― | -48.46% | |
48 Neutral | $721.28M | -6.53 | -15.03% | 1.17% | -11.77% | -85.76% |
* Basic Materials Sector Average
USAR
USA Rare Earth
22.47
9.39
71.79%
GSM
Ferroglobe
3.86
-0.17
-4.29%
ABAT
American Battery Technology
3.11
1.66
114.48%
MP
MP Materials
59.18
31.49
113.72%
CRML
Critical Metals Corp
9.74
8.29
571.72%
IPX
Iperionx Ltd. ADR
35.22
6.90
24.34%
USA Rare Earth Corporate Events
Business Operations and StrategyFinancial DisclosuresM&A TransactionsPrivate Placements and FinancingRegulatory Filings and Compliance
USA Rare Earth Details Pro Forma Merger and Financing Plans
Positive
Jun 5, 2026
USA Rare Earth, Inc. has filed unaudited pro forma condensed combined financial statements reflecting its planned merger with SVRE Holdings Ltd., alongside related financing and commercial arrangements, to give investors a clearer view of the comb...
Executive/Board ChangesShareholder Meetings
USA Rare Earth Shareholders Back Board and Auditor Slate
Positive
Jun 4, 2026
On June 3, 2026, USA Rare Earth, Inc. held its 2026 Annual Meeting of Stockholders, where holders of common stock and Series A preferred stock, voting together as a single class, represented 60.73% of eligible votes, establishing a quorum. Stockho...
Business Operations and StrategyPrivate Placements and Financing
USA Rare Earth Secures Major CHIPS Program Funding Package
Positive
Jun 3, 2026
On June 3, 2026, USA Rare Earth finalized definitive funding and loan guarantee agreements with the U.S. Department of Commerce under the CHIPS Program, giving it access to up to $1.6 billion tied to project milestones. The package includes $277 m...
Business Operations and Strategy
USA Rare Earth Unveils Major South Carolina Magnet Hub
Positive
Jun 2, 2026
USA Rare Earth, Inc., a rare earth, critical minerals and advanced materials producer with integrated mining, processing, metal and magnet operations across the U.S., U.K., France and Brazil, is expanding its “mine-to-magnet” value cha...
Business Operations and StrategyFinancial DisclosuresM&A TransactionsRegulatory Filings and Compliance
USA Rare Earth Highlights Risks in SVRE Merger Update
Negative
May 13, 2026
On May 12, 2026, USA Rare Earth, Inc. filed a Current Report on Form 8-K to update investors on risks and disclosures tied to its planned merger with SVRE Holdings Ltd. and related transactions. The filing supplements the company’s 2025 Form...
Business Operations and StrategyExecutive/Board ChangesM&A TransactionsShareholder Meetings
USA Rare Earth Announces Board Changes Ahead of Merger
Positive
Apr 23, 2026
On April 20, 2026, USA Rare Earth, Inc. announced that directors Mordechai Gutnick and General Paul Kern would not stand for reelection at the June 3, 2026 annual shareholders’ meeting, prompting the board to reduce its size to six members a...
Business Operations and StrategyM&A TransactionsRegulatory Filings and Compliance
USA Rare Earth Announces Merger Agreement with SVRE Holdings
Positive
Apr 20, 2026
On April 20, 2026, USA Rare Earth, Inc. announced it had entered into a definitive merger agreement dated April 19, 2026 with SVRE Holdings Ltd. through a wholly owned British Virgin Islands merger subsidiary, with Serra Verde Rare Earths Ltd. act...
Business Operations and StrategyExecutive/Board ChangesM&A Transactions
USA Rare Earth to Acquire Serra Verde in Major Deal
Positive
Apr 20, 2026
On April 19, 2026, USA Rare Earth, Inc. signed a definitive agreement to acquire 100% of British Virgin Islands–based SVRE Holdings Ltd., parent of Brazil’s Serra Verde Group, in a cash-and-stock deal valuing Serra Verde at about $2.8 ...
Business Operations and Strategy
USA Rare Earth Forms Strategic Rare Earth Alliance in France
Positive
Apr 9, 2026
On April 9, 2026, USA Rare Earth said it had signed a term sheet with France’s Carester SAS and InfraVia under which USA Rare Earth and InfraVia each aim to acquire about 12.5% of Carester, a specialist in rare earth processing and separatio...
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
USA Rare Earth Adds Semiconductor Leader to Board
Positive
Mar 12, 2026
On March 12, 2026, USA Rare Earth, Inc. announced the appointment of semiconductor veteran Dr. Thomas Caulfield to its board of directors, effective March 9, 2026, succeeding Tready A. Smith after her five years of service, with the board remainin...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.