USA Rare Earth Inc. Class A Common Stock (USAR)

FairStock Score: 23/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

USA Rare Earth is not yet a business in the Graham sense; it is a story about future critical minerals. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $5.8 million and net loss was $10.3 million. In fiscal Q1 2026, the quarter ended 2026-03-31, revenue was $5.7 million and net loss was $67.0 million. For FY2025, the year ended 2025-12-31, revenue was $1.6 million and net loss was $297.6 million. Those are not the marks of durable earning power. The company's main asset is an interest in Round Top Mountain, and it sells into aerospace, defense, semiconductors, and energy. That can be strategically valuable, but strategic value is not the same as a competitive moat. There is no debt—D/E is 0.00—but trailing free cash flow was negative $245.5 million, a FairStock calculation, and FCF yield was negative 16.4%. Piotroski F-Score is 1/9 and Altman Z-Score is 2.33, both FairStock calculations, suggesting fragile financial health. At the 2026-10-13 close of $11.28, market cap was $1.5 billion. The P/E is negative 4.19, EPS is negative $2.69, and P/B is 1.31. A 1.31 price-to-book may sound modest, but book value here is not backed by steady profits. The stock is near its 52-week low of $11.26, yet the 52-week high was $34.03 and beta is 2.61. I see growth in reported revenue from FY2025 to fiscal Q2 2026, but losses remain huge and cash burn is heavy. Without profitable production, this is speculation, not value.

In plain English: USA Rare Earth is an early-stage company that explores for and processes rare earth minerals, mainly through an interest in Round Top Mountain in Texas. It earns only a small amount of revenue and loses money, with heavy cash use. At the 2026-10-13 price of $11.28, the stock looks expensive compared with today's small business, even though it is near the low end of its 52-week range.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer