| 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 September 30, | | For the nine months ended September 30, | | (in thousands) | 2026 | | 2025 | | 2026 | | 2025 | 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.
|
| Contract with Customer, Contract Asset, Contract Liability, and Receivable |
The following table summarizes the Company’s deferred revenue activity: | | | | | | | | | | | | | | | For the nine months ended September 30, | | | | (in thousands) | 2026 | | 2025 | | | 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. |
|