USA Rare Earth (NASDAQ:USAR) Releases Quarterly Earnings Results, Misses Expectations By $0.25 EPS

USA Rare Earth (NASDAQ:USAR) issued its quarterly earnings data on Monday. The company reported ($0.44) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.19) by ($0.25), FiscalAI reports. The firm had revenue of $3.00 million for the quarter. USA Rare Earth had a negative return on equity of 12.81% and a negative net margin of 716.54%.

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

• Serra Verde began commercial-scale shipments in October and recorded its first sales in November; the company expects at least 325 tons of TREO sales in Q4. Its realized basket value was about $97/kg quarter to date, more than twice the $43/kg floor, driven by record dysprosium and terbium prices.
• Raw-material shortages, particularly dysprosium oxide and samarium metal, constrained LCM and Stillwater production and reduced quarterly revenue to $3 million. Adjusted net loss was $126 million, while gross margins also faced pressure from higher input costs.
• The company reported $1.2 billion in cash and outlined a Serra Verde ramp to 4,000 tons of TREO annually in 2027, followed by about 6,400 tons by year-end. Management said the expansion is progressing, with phase 2 already 40% complete and more than 75% of its capital committed.
• Stillwater made its first commercial magnet sales, but current sales are prototypes and customer qualification can take six months to two years. The company has signed letters of intent and MOUs covering about 2,500 tons of magnets, though conversion to recurring production sales remains to be demonstrated.
• Round Top drilling results so far were consistent with historical data and confirmed a 72% heavy rare earth distribution, but the project remains in development. The company expects its S-K 1300 report in Q3 2027 and said it is targeting a final investment decision in the second half of 2027.

USA Rare Earth Price Performance

Shares of USAR stock opened at $7.92 on Wednesday. USA Rare Earth has a 1 year low of $6.84 and a 1 year high of $32.80. The stock’s 50 day simple moving average is $12.85 and its two-hundred day simple moving average is $18.45. The company has a market cap of $1.94 billion, a PE ratio of -9.78 and a beta of 2.79.

Wall Street Analysts Forecast Growth

Several equities research analysts recently weighed in on USAR shares. Wall Street Zen cut shares of USA Rare Earth from a “sell” rating to a “strong sell” rating in a research report on Saturday, October 24th. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of USA Rare Earth in a research note on Wednesday, November 4th. Jefferies Financial Group initiated coverage on shares of USA Rare Earth in a research report on Wednesday, September 2nd. They set a “buy” rating and a $21.00 price objective for the company. Needham & Company LLC dropped their price objective on shares of USA Rare Earth from $39.00 to $33.00 and set a “buy” rating for the company in a research note on Wednesday, July 22nd. Finally, Roth Capital reduced their target price on shares of USA Rare Earth from $40.00 to $30.00 and set a “buy” rating on the stock in a report on Tuesday, July 21st. One investment analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating and one has issued a Sell rating to the company’s stock. According to MarketBeat, USA Rare Earth presently has a consensus rating of “Moderate Buy” and an average target price of $32.29.

Hedge Funds Weigh In On USA Rare Earth

Institutional investors and hedge funds have recently modified their holdings of the stock. one8zero8 LLC raised its holdings in USA Rare Earth by 44.2% during the 3rd quarter. one8zero8 LLC now owns 117,350 shares of the company’s stock valued at $1,652,000 after buying an additional 35,950 shares during the period. Voya Investment Management LLC boosted its stake in USA Rare Earth by 1,172.6% during the third quarter. Voya Investment Management LLC now owns 1,161,473 shares of the company’s stock worth $16,354,000 after buying an additional 1,070,208 shares during the period. Bogart Wealth LLC boosted its stake in USA Rare Earth by 198.2% during the third quarter. Bogart Wealth LLC now owns 11,950 shares of the company’s stock worth $168,000 after buying an additional 7,943 shares during the period. HighTower Advisors LLC increased its position in USA Rare Earth by 96.1% during the third quarter. HighTower Advisors LLC now owns 68,503 shares of the company’s stock valued at $965,000 after acquiring an additional 33,578 shares during the last quarter. Finally, Proactive Wealth Strategies LLC increased its position in USA Rare Earth by 59.0% during the third quarter. Proactive Wealth Strategies LLC now owns 24,010 shares of the company’s stock valued at $338,000 after acquiring an additional 8,910 shares during the last quarter.

USA Rare Earth News Roundup

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

• Positive Sentiment: USA Rare Earth began commercial-scale shipments of heavy rare-earth material from Serra Verde, with first sales in November under a 15-year, government-backed offtake agreement. Production is targeted to reach an initial run rate of about 4,000 tonnes annually by Q2 2027. Article: USA Rare Earth Announces Start of Commercial-Scale Shipments
• Positive Sentiment: The company reported its first commercial magnet sales and ended the quarter with $1.2 billion in cash, providing resources to fund development, although cash burn remains a concern. Article: USA Rare Earth Q3 2026 Earnings Call Highlights
• Positive Sentiment: USA Rare Earth delivered initial yttrium oxide samples to a major defense, medical and specialty-coatings customer for testing, a step toward qualifying another product. Article: USA Rare Earth Delivers First Yttrium Oxide Samples
• Negative Sentiment: Q3 results missed expectations: the company reported a loss of $0.44 per share versus analysts’ expected loss of $0.19, while revenue was about $3 million and significantly below estimates. The sizable loss and higher expenses outweighed the operating milestones. Article: USA Rare Earth Reports Q3 Loss, Lags Revenue Estimates
• Negative Sentiment: Raw-material shortages constrained production, and a Round Top report has been delayed until Q3 2027, adding uncertainty around the timing of expansion and future output. Article: USA Rare Earth Q3 2026 Earnings Call Highlights
• Negative Sentiment: Cantor Fitzgerald lowered its price target from $40 to $30, though it retained an Overweight rating. Article: Cantor Fitzgerald Stock Recommendations

USA Rare Earth Company Profile

USA Rare Earth, Inc. is developing a U.S.-focused supply chain for rare earth materials and permanent magnets used in electric vehicles, wind turbines, electronics, aerospace and defense applications. Its planned activities span mineral extraction, materials processing and magnet manufacturing. The company is advancing the Round Top deposit in West Texas, a project that contains rare earth elements as well as other minerals used in advanced technologies. USA Rare Earth has described the deposit as a potential source of both light and heavy rare earths, which are important inputs for high-performance magnets and other industrial products.