| Disaggregation of Revenue |
The following table disaggregates the Company’s revenue from contracts with customers by segment and by types of goods sold, which are transferred to customers at a point in time: | | | | | | | | | | | | | | | | | | | | | | | | | For the three months ended June 30, | | For the six months ended June 30, | | (in thousands) | 2026 | | 2025 | | 2026 | | 2025 | Revenue category by segment | | | | | | | | Materials segment | | | | | | | | | NdPr oxide and metal | $ | 94,434 | | | $ | 25,045 | | | $ | 165,570 | | | $ | 49,366 | | Rare earth concentrate | — | | | 11,877 | | | — | | | 41,992 | | Other revenue | 1,195 | | | 610 | | | 2,236 | | | 1,793 | | Total Materials segment revenue | 95,629 | | | 37,532 | | | 167,806 | | | 93,151 | | | | | | | | | | Magnetics segment | | | | | | | | Magnetic precursor products | 16,524 | | | 19,861 | | | 37,602 | | | 25,052 | | Intersegment eliminations(1) | (3,663) | | | — | | | (6,269) | | | — | | Total revenue | $ | 108,490 | | | $ | 57,393 | | | $ | 199,139 | | | $ | 118,203 | |
(1)Represents the elimination of intersegment revenues associated with NdPr oxide sales made by the Materials segment to the Magnetics segment.
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| Contract with Customer, Contract Asset, Contract Liability, and Receivable |
The following table summarizes the Company’s deferred revenue activity: | | | | | | | | | | | | | | | For the six months ended June 30, | | | | (in thousands) | 2026 | | 2025 | | | Beginning balance(1) | $ | 158,190 | | | $ | 100,000 | | | | Additions to deferred revenue(2) | 5,810 | | | 50,000 | | | | Revenue recognized during the period(3) | (37,592) | | | (25,052) | | | | Ending balance(1) | $ | 126,408 | | | $ | 124,948 | | | | | | | | | | (1) Contract liabilities are included as current and non-current deferred revenue in the Company’s unaudited Condensed Consolidated Balance Sheets based on the Company’s expectation of when the performance obligations will be satisfied. | | | (2) For the six months ended June 30, 2026, the amount related to reimbursable costs from the DoW under the DoW Offtake Agreement (see Note 9, “Operating Leases,” for details) as well as a significant financing component associated with the Apple long-term supply agreement discussed below. For the six months ended June 30, 2025, the amount related to the final prepayment for magnetic precursor products under the long-term agreement with GM. | (3) All the revenue recognized during the period was included in the beginning deferred revenue balance. For the three months ended June 30, 2026, and 2025, the Company recognized $16.5 million and $19.9 million, respectively, of revenue that was included in the deferred revenue balance at the beginning of the period. |
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