v3.26.1
SEGMENT REPORTING
 6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
SEGMENT REPORTING SEGMENT REPORTING
The Company’s reportable segments, which are primarily based on the Company’s internal organizational structure and types of products, are its two operating segments—Materials and Magnetics (no operating segments have been aggregated).
The Materials segment operates Mountain Pass, which produces rare earth products. The Materials segment currently generates revenue primarily from sales of NdPr oxide and metal, principally sold to customers in the United States, Japan, South Korea, and broader Asia. The Materials segment historically generated revenue from sales of rare earth concentrate into the Chinese market.
The Magnetics segment includes (i) the Independence Facility, where the Company produces and sells magnetic precursor products and, beginning in December 2025, commenced manufacturing NdFeB permanent magnets, and (ii) the 10X Facility. The initial sales from the Independence Facility of magnetic precursor products, including NdPr metal, were made to GM and began in the first quarter of 2025.
The chief operating decision maker (“CODM”) uses Segment Adjusted EBITDA as management’s primary segment measure of profit or loss in assessing segment performance and deciding how to allocate the Company’s resources. Segment Adjusted EBITDA is calculated as segment revenues and price protection agreement income less significant segment expenses, specifically, cost of sales (excluding depreciation, depletion and amortization and stock-based compensation expense) and selling, general and administrative expenses (excluding stock-based compensation expense), as well as certain other operating expenses (referred to as “other segment items”). Significant segment expenses and other segment items also exclude certain costs that are non-recurring, non-cash or are not related to the segments’ underlying business performance. A reconciliation of total Segment Adjusted EBITDA to consolidated loss before income taxes for the three and six months ended June 30, 2026 and 2025, is included in the tables below.
As the Company’s CODM manages the Company’s assets on a consolidated basis, the CODM is not regularly provided asset information for the reportable segments.
The following tables present the Company’s reportable segment information:
For the three months ended June 30, 2026
(in thousands)MaterialsMagneticsTotal
Revenue from external customers
$91,966 $16,524 $108,490 
Intersegment revenues(1)
3,663 — 3,663 
95,629 16,524 112,153 
Elimination of intersegment revenues(1)
(3,663)
Total consolidated revenues$108,490 
Price protection agreement income
17,580 — 
Significant segment expenses:
Cost of sales (excluding depreciation, depletion and amortization and stock-based compensation expense)(2)
69,325 4,349 
Selling, general and administrative (excluding stock-based compensation expense)(3)
10,522 4,048 
Other segment items(4)
857 595 
Segment Adjusted EBITDA
$32,505 $7,532 40,037 
Reconciling items to consolidated loss before income taxes
Corporate expenses and other(5)
(10,983)
Elimination of intersegment Adjusted EBITDA(1)
(561)
Depreciation, depletion and amortization(35,379)
Interest expense, net(9,703)
Stock-based compensation expense(11,287)
Initial start-up costs
(13,588)
Transaction-related and other costs285 
Accretion of asset retirement and environmental obligations(385)
Loss on disposals of long-lived assets, net(168)
Other income, net12,397 
Loss before income taxes$(29,335)
Segment capital expenditures$85,773 $144,257 $230,030 
Other capital expenditures(6)
305 
Total capital expenditures for the three months ended June 30, 2026
$230,335 
(1)Relates to NdPr oxide sales made by the Materials segment to the Magnetics segment.
(2)The primary difference between this significant segment expense and “Cost of sales (excluding depreciation, depletion and amortization) (including related party)” within the Company’s unaudited Condensed Consolidated Statements of Operations relates to stock-based compensation, which as disclosed in Note 16, “Stockholders’ Equity and Stock-Based Compensation,” was $1.8 million for the three months ended June 30, 2026. Other differences are the result of excluding certain other costs because they are non-recurring, non-cash or are not related to the segments’ underlying business performance.
(3)The primary differences between this significant segment expense and “Selling, general and administrative” within the Company’s unaudited Condensed Consolidated Statements of Operations relates to stock-based compensation and unallocated corporate costs, which are included in “Corporate expenses and other” in the table above. As disclosed in Note 16, “Stockholders’ Equity and Stock-Based Compensation,” the total stock-based compensation expense included in “Selling, general and administrative” within the Company’s unaudited Condensed Consolidated Statements of Operations for the three months ended June 30, 2026, was $9.0 million. Other differences are the result of excluding certain other costs because they are non-recurring, non-cash or are not related to the segments’ underlying business performance.
(4)Principally relates to expenses included in “Advanced projects and development” within the Company’s unaudited Condensed Consolidated Statements of Operations.
(5)Corporate expenses and other represents costs incurred at the corporate level that are not allocated to the operating segments, specifically relating to executive compensation, investor relations, other corporate costs, and unallocated shared service functions such as legal, information technology, human resources, finance and accounting and supply chain. “Corporate expenses and other” is included in the table above to reconcile the total of Segment Adjusted EBITDA to the Company’s consolidated loss before income taxes.
(6)Includes amounts not allocated to the reportable segments (related to corporate).
For the three months ended June 30, 2025
(in thousands)MaterialsMagneticsTotal
Revenue from external customers
$37,532 $19,861 $57,393 
Total consolidated revenues$57,393 
Significant segment expenses:
Cost of sales (excluding depreciation, depletion and amortization and stock-based compensation expense)(1)
40,264 8,918 
Selling, general and administrative (excluding stock-based compensation expense)(2)
9,542 2,686 
Other segment items(3)
404 168 
Segment Adjusted EBITDA$(12,678)$8,089 (4,589)
Reconciling items to consolidated loss before income taxes
Corporate expenses and other(4)
(7,946)
Depreciation, depletion and amortization(20,777)
Interest expense, net(5,414)
Stock-based compensation expense(5,427)
Initial start-up costs(634)
Transaction-related and other costs(5,128)
Accretion of asset retirement and environmental obligations(372)
Gain on disposals of long-lived assets, net991 
Other income, net6,572 
Loss before income taxes$(42,724)
Segment capital expenditures$12,581 $16,417 $28,998 
Other capital expenditures(5)
8 
Total capital expenditures for the three months ended June 30, 2025
$29,006 
(1)The primary difference between this significant segment expense and “Cost of sales (excluding depreciation, depletion and amortization) (including related party)” within the Company’s unaudited Condensed Consolidated Statements of Operations relates to stock-based compensation, which as disclosed in Note 16, “Stockholders’ Equity and Stock-Based Compensation,” was $0.7 million for the three months ended June 30, 2025. Other differences are the result of excluding certain other costs because they are non-recurring, non-cash or are not related to the segments’ underlying business performance.
(2)The primary differences between this significant segment expense and “Selling, general and administrative” within the Company’s unaudited Condensed Consolidated Statements of Operations relates to stock-based compensation and unallocated corporate costs, which are included in “Corporate expenses and other” in the table above. As disclosed in Note 16, “Stockholders’ Equity and Stock-Based Compensation,” the total stock-based compensation expense included in “Selling, general and administrative” within the Company’s unaudited Condensed Consolidated Statements of Operations for the three months ended June 30, 2025, was $4.6 million. Other differences are the result of excluding certain other costs because they are non-recurring, non-cash or are not related to the segments’ underlying business performance.
(3)Principally relates to expenses included in “Advanced projects and development” within the Company’s unaudited Condensed Consolidated Statements of Operations.
(4)Corporate expenses and other represents costs incurred at the corporate level that are not allocated to the operating segments, specifically relating to executive compensation, investor relations, other corporate costs, and unallocated shared service functions such as legal, information technology, human resources, finance and accounting and supply chain. “Corporate expenses and other” is included in the table above to reconcile the total of Segment Adjusted EBITDA to the Company’s consolidated loss before income taxes.
(5)Includes amounts not allocated to the reportable segments (related to corporate).
For the six months ended June 30, 2026
(in thousands)MaterialsMagneticsTotal
Revenue from external customers
$161,537 $37,602 $199,139 
Intersegment revenues(1)
6,269 — 6,269 
167,806 37,602 205,408 
Elimination of intersegment revenues(1)
(6,269)
Total consolidated revenues$199,139 
Price protection agreement income
59,853 — 
Significant segment expenses:
Cost of sales (excluding depreciation, depletion and amortization and stock-based compensation expense)(2)
136,105 11,877 
Selling, general and administrative (excluding stock-based compensation expense)(3)
20,624 7,521 
Other segment items(4)
1,693 1,080 
Segment Adjusted EBITDA
$69,237 $17,124 86,361 
Reconciling items to consolidated loss before income taxes
Corporate expenses and other(5)
(20,570)
Elimination of intersegment Adjusted EBITDA(688)
Depreciation, depletion and amortization(67,516)
Interest expense, net(19,549)
Stock-based compensation expense(24,154)
Initial start-up costs
(18,441)
Transaction-related and other costs(6)
(10,204)
Accretion of asset retirement and environmental obligations(771)
Loss on disposals of long-lived assets, net(168)
Other income, net32,723 
Loss before income taxes$(42,977)
Segment capital expenditures$116,319 $190,868 $307,187 
Other capital expenditures(7)
524 
Total capital expenditures for the six months ended June 30, 2026
$307,711 
(1)Relates to NdPr oxide sales made by the Materials segment to the Magnetics segment.
(2)The primary difference between this significant segment expense and “Cost of sales (excluding depreciation, depletion and amortization) (including related party)” within the Company’s unaudited Condensed Consolidated Statements of Operations relates to stock-based compensation, which as disclosed in Note 16, “Stockholders’ Equity and Stock-Based Compensation,” was $4.4 million for the six months ended June 30, 2026. Other differences are the result of excluding certain other costs because they are non-recurring, non-cash or are not related to the segments’ underlying business performance.
(3)The primary differences between this significant segment expense and “Selling, general and administrative” within the Company’s unaudited Condensed Consolidated Statements of Operations relates to stock-based compensation and unallocated corporate costs, which are included in “Corporate expenses and other” in the table above. As disclosed in Note 16, “Stockholders’ Equity and Stock-Based Compensation,” the total stock-based compensation expense included in “Selling, general and administrative” within the Company’s unaudited Condensed Consolidated Statements of Operations for the six months ended June 30, 2026, was $18.6 million. Other differences are the result of excluding certain other costs because they are non-recurring, non-cash or are not related to the segments’ underlying business performance.
(4)Principally relates to expenses included in “Advanced projects and development” within the Company’s unaudited Condensed Consolidated Statements of Operations.
(5)Corporate expenses and other represents costs incurred at the corporate level that are not allocated to the operating segments, specifically relating to executive compensation, investor relations, other corporate costs, and unallocated shared service functions such as legal, information technology, human resources, finance and accounting and supply chain. “Corporate expenses and other” is included in the table above to reconcile the total of Segment Adjusted EBITDA to the Company’s consolidated loss before income taxes.
(6)Pertains to legal, consulting, and advisory services, and other costs associated with specific matters or transactions, including $8.8 million related to the settlement of a construction-related litigation matter. See Note 11, “Commitments and Contingencies,” for additional details.
(7)Includes amounts not allocated to the reportable segments (related to corporate).
For the six months ended June 30, 2025
(in thousands)MaterialsMagneticsTotal
Revenue from external customers
$93,151 $25,052 $118,203 
Total consolidated revenues$118,203 
Significant segment expenses:
Cost of sales (excluding depreciation, depletion and amortization and stock-based compensation expense)(1)
84,741 11,294 
Selling, general and administrative (excluding stock-based compensation expense)(2)
16,551 4,971 
Other segment items(3)
779 205 
Segment Adjusted EBITDA$(8,920)$8,582 (338)
Reconciling items to consolidated loss before income taxes
Corporate expenses and other(4)
(14,893)
Depreciation, depletion and amortization(42,161)
Interest expense, net(13,029)
Stock-based compensation expense(12,780)
Initial start-up costs(1,406)
Transaction-related and other costs(7,944)
Accretion of asset retirement and environmental obligations(745)
Gain on disposals of long-lived assets, net1,607 
Other income, net21,790 
Loss before income taxes$(69,899)
Segment capital expenditures$27,924 $31,541 $59,465 
Other capital expenditures(5)
8 
Total capital expenditures for the six months ended June 30, 2025
$59,473 
(1)The primary difference between this significant segment expense and “Cost of sales (excluding depreciation, depletion and amortization) (including related party)” within the Company’s unaudited Condensed Consolidated Statements of Operations relates to stock-based compensation, which as disclosed in Note 16, “Stockholders’ Equity and Stock-Based Compensation,” was $2.7 million for the six months ended June 30, 2025. Other differences are the result of excluding certain other costs because they are non-recurring, non-cash or are not related to the segments’ underlying business performance.
(2)The primary differences between this significant segment expense and “Selling, general and administrative” within the Company’s unaudited Condensed Consolidated Statements of Operations relates to stock-based compensation and unallocated corporate costs, which are included in “Corporate expenses and other” in the table above. As disclosed in Note 16, “Stockholders’ Equity and Stock-Based Compensation,” the total stock-based compensation expense included in “Selling, general and administrative” within the Company’s unaudited Condensed Consolidated Statements of Operations for the six months ended June 30, 2025, was $9.7 million. Other differences are the result of excluding certain other costs because they are non-recurring, non-cash or are not related to the segments’ underlying business performance.
(3)Principally relates to expenses included in “Advanced projects and development” within the Company’s unaudited Condensed Consolidated Statements of Operations.
(4)Corporate expenses and other represents costs incurred at the corporate level that are not allocated to the operating segments, specifically relating to executive compensation, investor relations, other corporate costs, and unallocated shared service functions such as legal, information technology, human resources, finance and accounting and supply chain. “Corporate expenses and other” is included in the table above to reconcile the total of Segment Adjusted EBITDA to the Company’s consolidated loss before income taxes.
(5)Includes amounts not allocated to the reportable segments (related to corporate).