v3.26.3
SEGMENT REPORTING (Tables)
 9 Months Ended
Sep. 30, 2026
Segment Reporting [Abstract]  
Segment Reporting
The following tables present the Company’s reportable segment information:
For the three months ended September 30, 2026
(in thousands)MaterialsMagneticsTotal
Revenue from external customers
$129,032 $18,623 $147,655 
Intersegment revenues(1)
4,507 — 4,507 
133,539 18,623 152,162 
Elimination of intersegment revenues(1)
(4,507)
Total consolidated revenues$147,655 
Price protection agreement income
8,109 — 
Significant segment expenses:
Cost of sales (excluding depreciation, depletion and amortization and stock-based compensation expense)(2)
80,191 7,745 
Selling, general and administrative (excluding stock-based compensation expense)(3)
12,132 4,506 
Other segment items(4)
1,497 1,024 
Segment Adjusted EBITDA
$47,828 $5,348 53,176 
Reconciling items to consolidated loss before income taxes
Corporate expenses and other(5)
(11,282)
Elimination of intersegment Adjusted EBITDA(1)
(756)
Depreciation, depletion and amortization(36,131)
Interest expense, net(9,409)
Stock-based compensation expense(11,321)
Initial start-up costs
(12,591)
Transaction-related and other costs(1,133)
Accretion of asset retirement and environmental obligations(386)
Loss on disposals of long-lived assets, net(1,634)
Other income, net4,217 
Loss before income taxes$(27,250)
Segment capital expenditures$56,059 $56,170 $112,229 
Other capital expenditures(6)
310 
Total capital expenditures for the three months ended September 30, 2026
$112,539 
(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 $1.6 million for the three months ended September 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 September 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” and “Start-up costs” 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 September 30, 2025
(in thousands)MaterialsMagneticsTotal
Revenue from external customers
$31,641 $21,912 $53,553 
Total consolidated revenues$53,553 
Significant segment expenses:
Cost of sales (excluding depreciation, depletion and amortization and stock-based compensation expense)(1)
36,877 9,352 
Selling, general and administrative (excluding stock-based compensation expense)(2)
8,628 2,947 
Other segment items(3)
658 132 
Segment Adjusted EBITDA$(14,522)$9,481 (5,041)
Reconciling items to consolidated loss before income taxes
Corporate expenses and other(4)
(7,529)
Depreciation, depletion and amortization(22,497)
Interest expense, net(8,566)
Stock-based compensation expense(7,654)
Initial start-up costs(1,180)
Transaction-related and other costs(5)
(22,364)
Accretion of asset retirement and environmental obligations(373)
Loss on disposals of long-lived assets, net(385)
Other income, net17,157 
Loss before income taxes$(58,432)
Segment capital expenditures$31,939 $18,325 $50,264 
Other capital expenditures(6)
232 
Total capital expenditures for the three months ended September 30, 2025
$50,496 
(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 $2.3 million for the three months ended September 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 September 30, 2025, was $5.1 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)Pertains to legal, consulting, and advisory services, and other costs associated with specific matters or transactions, including $10.6 million of costs incurred in association with the DoW Transactions and $7.4 million of costs incurred to secure financing.
(6)Includes amounts not allocated to the reportable segments (related to corporate).
For the nine months ended September 30, 2026
(in thousands)MaterialsMagneticsTotal
Revenue from external customers
$290,569 $56,225 $346,794 
Intersegment revenues(1)
10,776 — 10,776 
301,345 56,225 357,570 
Elimination of intersegment revenues(1)
(10,776)
Total consolidated revenues$346,794 
Price protection agreement income
67,962 — 
Significant segment expenses:
Cost of sales (excluding depreciation, depletion and amortization and stock-based compensation expense)(2)
216,296 19,622 
Selling, general and administrative (excluding stock-based compensation expense)(3)
32,756 12,027 
Other segment items(4)
3,190 2,104 
Segment Adjusted EBITDA
$117,065 $22,472 139,537 
Reconciling items to consolidated loss before income taxes
Corporate expenses and other(5)
(31,852)
Elimination of intersegment Adjusted EBITDA(1)
(1,444)
Depreciation, depletion and amortization(103,647)
Interest expense, net(28,958)
Stock-based compensation expense(35,475)
Initial start-up costs
(31,032)
Transaction-related and other costs(6)
(11,337)
Accretion of asset retirement and environmental obligations(1,157)
Loss on disposals of long-lived assets, net(1,802)
Other income, net36,940 
Loss before income taxes$(70,227)
Segment capital expenditures$172,378 $247,038 $419,416 
Other capital expenditures(7)
834 
Total capital expenditures for the nine months ended September 30, 2026
$420,250 
(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 $5.9 million for the nine months ended September 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 nine months ended September 30, 2026, was $27.6 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” and “Start-up costs” 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 nine months ended September 30, 2025
(in thousands)MaterialsMagneticsTotal
Revenue from external customers
$124,792 $46,964 $171,756 
Total consolidated revenues$171,756 
Significant segment expenses:
Cost of sales (excluding depreciation, depletion and amortization and stock-based compensation expense)(1)
121,618 20,646 
Selling, general and administrative (excluding stock-based compensation expense)(2)
25,179 7,918 
Other segment items(3)
1,437 337 
Segment Adjusted EBITDA$(23,442)$18,063 (5,379)
Reconciling items to consolidated loss before income taxes
Corporate expenses and other(4)
(22,422)
Depreciation, depletion and amortization(64,658)
Interest expense, net(21,595)
Stock-based compensation expense(20,434)
Initial start-up costs(2,586)
Transaction-related and other costs(5)
(30,308)
Accretion of asset retirement and environmental obligations(1,118)
Gain on disposals of long-lived assets, net1,222 
Other income, net38,947 
Loss before income taxes$(128,331)
Segment capital expenditures$59,863 $49,866 $109,729 
Other capital expenditures(6)
240 
Total capital expenditures for the nine months ended September 30, 2025
$109,969 
(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 $5.1 million for the nine months ended September 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 nine months ended September 30, 2025, was $14.8 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)Pertains to legal, consulting, and advisory services, and other costs associated with specific matters or transactions, including $12.4 million of costs incurred in association with the DoW Transactions and $7.4 million of costs incurred to secure financing.
(6)Includes amounts not allocated to the reportable segments (related to corporate).