v3.26.3
REVENUE RECOGNITION
 9 Months Ended
Sep. 30, 2026
Revenue from Contract with Customer [Abstract]  
REVENUE RECOGNITION REVENUE RECOGNITION
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 September 30,For the nine months ended September 30,
(in thousands)2026202520262025
Revenue category by segment
Materials segment
NdPr oxide and metal$100,961 $30,911 $266,531 $80,277 
Rare earth concentrate
— — — 41,992 
Other revenue
32,578 730 34,814 2,523 
Total Materials segment revenue
133,539 31,641 301,345 124,792 
Magnetics segment
Magnetic precursor products
18,623 21,912 56,225 46,964 
Intersegment eliminations(1)
(4,507)— (10,776)— 
Total revenue
$147,655 $53,553 $346,794 $171,756 
(1)Represents the elimination of intersegment revenues associated with NdPr oxide sales made by the Materials segment to the Magnetics segment.
NdPr oxide and metal revenue was primarily generated from sales made under the Company’s distribution agreement with Sumitomo Corporation of Americas as well as an offtake agreement with a leading U.S. technology and industrial company entered into during the first quarter of 2026.
Rare earth concentrate revenue was primarily generated from sales under the Shenghe Offtake Agreement (as defined in Note 19, “Related-Party Transactions”).
Other revenue for the three and nine months ended September 30, 2026, was primarily generated from a $31.6 million bill-and-hold sale of a mixed heavy rare earth product containing samarium, europium, gadolinium and other heavy rare earths to a U.S. aerospace and defense customer in September 2026.
Magnetic precursor products revenue commenced in the first quarter of 2025 and was generated from sales of NdPr metal produced at the Independence Facility under the long-term supply agreement with GM.
Bill-and-Hold Arrangements: During the three and nine months ended September 30, 2026, the Company recognized revenue under bill-and-hold arrangements of $82.8 million and $177.4 million, respectively, as compared to $21.9 million and $47.0 million for the three and nine months ended September 30, 2025, respectively, under which control of the product transfers to the customer, but the product remains in the custody of the Company. For bill-and-hold arrangements, the Company’s performance obligations are satisfied at the point in time the finished product is either (i) delivered to a third party’s storage warehouse or (ii) segregated from inventory at the Company’s facilities and ready for shipment to the customer.
Contract Balances: Contract liabilities, commonly referred to as deferred revenue, represent the Company’s obligation to transfer goods or services to a customer for which the Company has received consideration in advance of such transfer. Deferred revenue decreases as revenue is recognized from the satisfaction of the related performance obligations.
The following table summarizes the Company’s deferred revenue activity:
For the nine months ended September 30,
(in thousands)20262025
Beginning balance(1)
$158,190 $100,000 
Additions to deferred revenue(2)
18,020 91,700 
Revenue recognized during the period(3)
(55,785)(46,964)
Ending balance(1)
$120,425 $144,736 
(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 nine months ended September 30, 2026 and 2025, the amounts primarily related to reimbursable costs from the DoW under the DoW Offtake Agreement (see Note 9, “Operating Leases,” for details) as well as prepayments and a significant financing component associated with the Apple long-term supply agreement discussed below. For the nine months ended September 30, 2025, the amount also included the final prepayment for magnetic precursor products under the long-term agreement with GM.
(3) For the three and nine months ended September 30, 2026, the Company recognized revenue of $18.0 million and $55.6 million, respectively, that was included in the December 31, 2025, deferred revenue balance. For the three and nine months ended September 30, 2025, the Company recognized revenue of $21.9 million and $47.0 million, respectively, that was included in the December 31, 2024, deferred revenue balance.
As of September 30, 2026, the Company classified the full amount of the remaining prepayment from GM of $27.6 million as current deferred revenue within its unaudited Condensed Consolidated Balance Sheets based on the Company’s expectation that the related performance obligations will be satisfied within one year after this date. The Company’s estimate of when the performance obligations will be satisfied and revenue will be recognized is dependent upon various operational decisions that could impact the production levels of NdPr metal at the Independence Facility.
In July 2025, the Company entered into a definitive, long-term supply agreement with Apple Inc. (“Apple”) for the development, manufacture, and supply of magnets from the Company’s Independence Facility, as well as the development and installation of scaled recycling capabilities at Mountain Pass to produce the contained rare earths from post-industrial and post-consumer recycled rare earth feedstocks. In connection with the agreement, and subject to achieving specified milestones, Apple agreed to make prepayments in the aggregate amount of $200.0 million for the purchase of magnets from the Company.
As of September 30, 2026, the Company had received, or was entitled to collect, cumulative prepayments from Apple of $80.0 million. The Company has not yet recognized any of this amount as revenue. As of September 30, 2026, the Company recorded this amount as deferred revenue within its unaudited Condensed Consolidated Balance Sheets, of which $4.2 million was classified as current and $75.8 million as non-current based on when the Company expects to satisfy the associated performance obligations. Due to the extended timing difference between when Apple makes a prepayment for magnets and when the Company expects to transfer control of those magnets to Apple, the Company identified a significant financing component. The significant financing component is accreted to interest expense using the Company’s incremental borrowing rate over the period in which the prepayments are outstanding with an accrual to increase deferred revenue.
Remaining Performance Obligations: Remaining performance obligations represent contracted revenue that will be recognized in future periods. As of September 30, 2026, the aggregate transaction price allocated to the Company’s remaining performance obligations was $179.5 million. The Company expects to recognize substantially all of this amount as revenue on approximately a ratable basis between two and eight years from September 30, 2026. This amount excludes variable consideration that is allocated entirely to wholly unsatisfied performance obligations, as well as contracts with an original expected duration of one year or less. The remaining performance obligations relate primarily to long-term fixed-price rare earth product supply arrangements. Actual amounts and timing of revenue recognition may differ from these estimates due to changes in production capacity, contractual delivery schedules, contract modifications, and other factors.