USA Rare Earth Sinks 11% as Q3 Miss Overshadows First Magnet Sales; Energy Fuels Retreats 8%, MP Materials Falls 5%

A steep Q3 2026 miss is weighing on USA Rare Earth (NASDAQ:USAR), and it’s eclipsing operating milestones the company spent its earnings call promoting. USA Rare Earth stock recently traded at $7.79, down 11%. Over the past month, the stock has fallen 38%.

Results landed after the close on November 9, and Cantor Fitzgerald lowered its price target on USA Rare Earth on November 10. Management framed the quarter around magnets and Brazil, while the market is responding to the numbers.

Inside USA Rare Earth’s Q3 Revenue and Earnings Miss

USA Rare Earth’s revenue came in at $3 million, missing the consensus estimate of $13.55 million. CFO Rob Steele said shortages of dysprosium oxide and samarium metal, tied to China’s export restrictions, limited what the LCM metals business and the Stillwater magnet plant could produce and sell. CEO Thras Moraitis described dysprosium supply as “literally a hand-to-mouth situation.”

On an adjusted basis, USA Rare Earth lost $0.44 per share, missing expectations for a loss of $0.146 per share. The company’s adjusted net loss grew to $125.64 million. A $136.57 million non-cash gain on the fair value of financial instruments helped the company post net income of $11.71 million on a GAAP basis. That gain is non-operational.

Spending climbed as well. Selling, general and administrative (SG&A) expenses at USA Rare Earth rose to $103.66 million from $11.41 million a year earlier, driven by merger and acquisition costs, legal costs and a larger head count after the Serra Verde combination closed on September 3.

Magnet Sales and Brazil Shipments Give USA Rare Earth a Foothold

Management highlighted first commercial magnet sales from Stillwater, Oklahoma, in September, followed by commercial-scale Serra Verde shipments from Brazil starting in October. Thras Moraitis said USA Rare Earth ended the quarter with $1.2 billion in cash and that letters of intent and memos of understanding (MOUs) cover approximately 2,500 tonnes of magnets. “The milestones achieved over the last quarter are only the beginning,” he stated.

For Q4 2026, USA Rare Earth expects Serra Verde sales of at least 325 tonnes of total rare earth oxide (TREO). Rob Steele noted the actual basket price quarter to date is around $97 per kilogram, more than double the floor value of around $43 a kilogram, on record dysprosium and terbium prices outside China.

Energy Fuels and MP Materials Slide Alongside USA Rare Earth

The selling pressure extends across rare earth names. Energy Fuels (NYSEAMERICAN:UUUU) stock is at $6.69, down 8%. Meanwhile, MP Materials (NYSE:MP) stock is at $35.88, down 5%.

USA Rare Earth’s steeper drop tracks its own miss, while the group-wide decline points to broader pressure on rare earth stocks. Hotter-than-expected October Consumer Price Index (CPI) data lifted expectations for a Federal Reserve rate hike, squeezing speculative growth names.

How USA Rare Earth Stacks Up Against MP Materials and Energy Fuels

MP Materials runs a vertically integrated operation grounded by the Mountain Pass mine in California, and it already generates meaningful rare earth revenue. The company has completed magnet qualification with a major car manufacturer and holds a long-term magnet supply agreement with a large consumer technology customer. Energy Fuels pairs uranium with rare earth processing, a business mix that sets it apart from both magnet-focused names.

USA Rare Earth sits earlier on that curve, with magnet sales still at the low-volume prototype stage. Exposure to heavy rare earths through Serra Verde is what Moraitis says sets the company apart, an exposure he called “unique outside Asia.” Building mining, separation, metals and magnet capacity across several countries at once adds execution risk.

What Comes Next for USA Rare Earth’s Magnets and Serra Verde

The next test for USA Rare Earth is whether it can sell finished magnet prototypes to multiple customers by year-end and commission Stillwater Line 1B on schedule next year. Market participants can watch for progress on the Serra Verde ramp and details at an investor conference planned for early 2027.

The cash pile, U.S. government backing and a Brazilian mine that’s already shipping product give investors reasons to stay optimistic. Weighing against the story are a revenue miss, a wider adjusted loss and raw material shortages that USA Rare Earth can’t yet time. Investors may want to track whether USA Rare Earth’s raw material bottleneck resolves before drawing any firm conclusions.

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