Shares of USA Rare Earth (USAR) slipped Thursday even after the company reported first-quarter revenue that topped Wall Street expectations, as investors continued focusing more on the company’s long-term growth ambitions than near-term earnings results.
The rare earths developer posted a first-quarter operating loss of $37 million on revenue of $5.7 million, compared with analyst expectations for a $27 million loss on $4.2 million in sales, according to FactSet.
Shares fell about 3% to $24.54 on Thursday.
Despite the larger-than-expected loss, investor attention has remained centered on the company’s strategy to build a fully integrated mine-to-magnet supply chain in the United States as demand for critical minerals accelerates.
USA Rare Earth is aiming to reduce US dependence on China, which currently controls roughly 85% of global rare earth processing capacity.
Rare earth elements are used in a broad range of technologies, including smartphones, electric vehicles, semiconductors, and military equipment.
Analysts currently project the company could generate $3.2 billion in revenue and $1.7 billion in operating income by 2030.
Expansion strategy accelerates
The company has moved aggressively in recent months to expand its operations and secure supply chain capabilities across the rare earths sector.
Barbara Humpton, who joined as CEO in October 2025 after previously leading Siemens USA, has overseen a series of major acquisitions and investments aimed at building the company’s vertically integrated platform.
USA Rare Earth acquired Brazil-based Serra Verde, which provides access to rare earth ore deposits, as well as Less Common Metals, a processor that converts raw materials into usable products.
The company also secured financing support from the US Commerce Department to help develop its Round Top rare earth project in Texas.
At the same time, USA Rare Earth commissioned its magnet manufacturing facility in Stillwater, Oklahoma, marking another step toward establishing domestic production capabilities.
“The first quarter of 2026 was a period of fundamental transformation for USA Rare Earth,” said Humpton in a news release. “Our strategic momentum only accelerated in the weeks following the quarter’s end.”
The company ended the quarter with approximately $1.8 billion in cash.
Wall Street estimates suggest USA Rare Earth could spend roughly $3.3 billion combined during 2026 and 2027 as it continues building out its operations.
Cantor Fitzgerald raises price target
Analysts at Cantor Fitzgerald raised their price target on USA Rare Earth shares to $35 from $30 while maintaining a bullish Overweight rating on the stock.
The revised target implies roughly 45% upside from recent trading levels.
Cantor highlighted progress at the company’s Stillwater magnet facility, where phase 1a was commissioned during the first quarter.
Initial commercial shipments are expected to begin during the second quarter of 2026.
The firm also pointed to USA Rare Earth’s recent financing and acquisition activity, including a $1.5 billion private investment completed in January.
In March, the company signed a definitive agreement to acquire Texas Mineral Resources Corp., giving it full economic ownership of the Round Top project.
Following the quarter, USA Rare Earth also announced a definitive agreement to acquire Serra Verde Group for approximately $2.8 billion, though the current value of the consideration has risen to around $3.64 billion due to the company’s share appreciation.
The company additionally disclosed a strategic investment in private firm Carester and received a $14.2 million grant from the Texas Semiconductor Innovation Fund tied to the Round Top project.
Investors focus on long-term rare earth opportunity
USA Rare Earth’s shares have surged sharply over the past year as investors increasingly view the company as a key player in efforts to establish a domestic critical minerals supply chain.
The stock had risen 114% year to date through Wednesday’s close and gained 187% over the prior 12 months.
With major acquisitions, new manufacturing facilities, and government-backed financing now in place, investors appear increasingly focused on the company’s long-term strategic positioning rather than short-term profitability.
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