USA Rare Earth, Inc. USAR is progressing its rare earth mining and magnet manufacturing facilities in the United States, including its Round Top project in Texas and Oklahoma. However, USAR remains in the pre-revenue stage as its assets are yet to reach commercial-scale production, resulting in continued operating losses.
The company is incurring rising development costs as it progresses through the project phase. In the fourth quarter of 2025, selling, general and administrative expenses surged to $18.5 million from $4.5 million a year ago, driven by higher legal and consulting fees, workforce expansion, recruitment costs and increased overheads.
Research and development expenses also climbed to $7.2 million from $1.4 million in the same quarter last year, primarily due to higher employee-related costs. As a result, the company reported a loss of 19 cents per share for the quarter.
Despite these cost pressures, USAR continues to move toward commercializing its rare earth projects. The company has recently marked a significant milestone with the commissioning of Phase 1a of its commercial magnet production line at its Stillwater facility in Oklahoma. Also, the Round Top project is expected to begin commercial production in late 2028, two years ahead of its earlier timeline. Until revenues start flowing, elevated development spending and operating expenses are likely to weigh on the company’s performance in the quarters ahead.
