USA Rare Earth Posts GAAP Profit After Serra Verde Close

The Tip Desk · November 12, 2026 · 3 min read

Third-quarter revenue was $3.0 million as the company booked $11.7 million of net income, or $0.04 a share, after the Serra Verde combination.

USA Rare Earth, Inc. (USAR) reported net income of $11.7 million, or $0.04 a share on a basic basis, for the three months ended September 30, 2026, reversing a year-earlier net loss of $156.7 million, or $1.64 a share.

The integrated rare earth, critical minerals and advanced materials company said the quarter marked a series of operational and commercial milestones, including the closing of the Serra Verde combination in September and the first commercial sales of neodymium-iron-boron magnets from its Stillwater, Oklahoma plant.

Revenue was $3.0 million in the third quarter. Loss from operations widened to $141.4 million from $15.9 million in the year-ago quarter. Adjusted net loss was $125.6 million, or $0.44 a share diluted, compared with $25.6 million, or $0.25 a share, a year earlier. Net cash used in operating activities was $143.7 million. Cash, cash equivalents and restricted cash stood at $1.2 billion as of September 30, 2026.

In September 2026 the company completed its combination with Serra Verde, creating what it described as one of the few fully integrated rare earth and permanent magnet platforms outside Asia. Serra Verde is the only scaled producer outside Asia of neodymium, praseodymium, dysprosium and terbium, as well as yttrium and other heavy rare earths. Stage 1 of Serra Verde’s optimization and expansion program finished on time and within budget. Commercial-scale mixed rare earth carbonate production began, with first shipments in October and sales in November. Stage 1 is ramping toward 4,000 metric tonnes per annum of total rare earth oxide. Stage 2 is targeting an additional 2,400 tonnes per annum by the end of 2027, with construction and commissioning expected in the third quarter of 2027.

In September the company sold its first NdFeB magnets from the 600-tonne-per-annum Stillwater facility. The initial sales were sintered block magnets sold to a high-performance materials manufacturer. A first magnet finishing line has been installed; a second is expected by the end of 2026. Less Common Metals year-to-date volumes in August 2026 exceeded full-year 2025 levels.

In July the Wheat Ridge, Colorado hydrometallurgical plant produced commercial-grade dysprosium oxide and neodymium-praseodymium oxide samples from recycled magnet scrap. The company said swarf is projected to support up to 30% of future magnetic rare earth oxide feedstock needs. In October it delivered first commercial-grade yttrium oxide samples from a 24/7 continuous solvent extraction demonstration plant.

In September the company broke ground on an approximately $1.2 billion metals and magnets facility in Blacksburg, South Carolina, targeting 6,400 tonnes per annum of strip-cast metal and alloy feeding 6,400 tonnes per annum of sintered NdFeB magnets. In August it closed the acquisition of Texas Mineral Resources Corp., becoming sole operator and 100% economic beneficiary of the Round Top project. Definitive agreements were finalized in July to acquire a roughly 13.6% stake in Carester SAS.

The U.S. government-backed special purpose vehicle that will purchase 100% of Serra Verde’s Phase 1 production completed an upsized $1.55 billion capitalization in August, including a $750 million Department of War investment, a revolving credit facility of up to $500 million, and a U.S. forward purchase of not less than $300 million of rare earth payable products over five years.

Barbara Humpton retired as chief executive on October 1, 2026. Thras Moraitis, who had become president after the Serra Verde close, assumed the role. Operations were organized into Upstream, Midstream and Downstream units.

For the fourth quarter, the company outlook Serra Verde sales volume of at least 325 tonnes of total rare earth oxide. Average TREO basket value, after contracted separation costs, is about $43 a kilogram at floor prices, or about $150 a kilogram NdPr equivalent, and about $97 a kilogram at market prices, or about $340 a kilogram NdPr equivalent, for the quarter to date.