Second Quarter 2026
Filed Aug 13, 2026REalloys Reports Second Quarter 2026 Results; SRC Rare Earth Processing Facility upgrade and Metallization Facility fully funded; $122.4 million of cash at quarter-end.
Net revenues increased to $0.8 million from $0.4 million, while net loss widened to $36.8 million from $2.2 million, primarily reflecting $32.1 million of non-cash stock-based compensation. The Company ended the quarter with $122.4 million in cash after closing a $100.0 million private placement and stated that committed capital fully funds its planned SRC upgrade and Heavy Rare Earth Metallization Facility projects through commissioning.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net revenues, three months ended June 30GAAP | $ 804 | – | – |
| Cost of sales, three months ended June 30GAAP | 329 | – | – |
| Software development costs, three months ended June 30GAAP | 34 | – | – |
| General and administrative expense, three months ended June 30GAAP | 36,031 | – | – |
| Advertising and marketing expense, three months ended June 30GAAP | 1,310 | – | – |
| Depreciation and amortization, three months ended June 30GAAP | (96) | – | – |
| Total operating expenses, three months ended June 30GAAP | 37,608 | – | – |
| Loss from operations, three months ended June 30GAAP | (36,804) | – | – |
| Interest expense, three months ended June 30GAAP | 14 | – | – |
| Change in fair value of contingent consideration, three months ended June 30GAAP | – | – | – |
| Deferred cash consideration late payment penalties, three months ended June 30GAAP | – | – | – |
| Impairment expense, three months ended June 30GAAP | – | – | – |
| Accretion of discount on issuance of Series C Preferred Stock, three months ended June 30GAAP | – | – | – |
| Total other expense, three months ended June 30GAAP | 14 | – | – |
| Net loss, three months ended June 30GAAP | $ (36,818) | – | – |
| Basic and diluted net loss per share, three months ended June 30GAAP | $ (0.59) | – | – |
| Weighted-average shares outstanding, basic and diluted, three months ended June 30GAAP | 62,142,617 | – | – |
| Adjusted General and Administrative Expense, three months ended June 30non-GAAP | $3,900 | – | – |
| Net revenues, six months ended June 30GAAP | $ 1,510 | – | – |
| Cost of sales, six months ended June 30GAAP | 628 | – | – |
| Software development costs, six months ended June 30GAAP | 68 | – | – |
| General and administrative expense, six months ended June 30GAAP | 121,432 | – | – |
| Advertising and marketing expense, six months ended June 30GAAP | 3,851 | – | – |
| Depreciation and amortization, six months ended June 30GAAP | (8) | – | – |
| Total operating expenses, six months ended June 30GAAP | 125,971 | – | – |
| Loss from operations, six months ended June 30GAAP | (124,461) | – | – |
| Interest expense, six months ended June 30GAAP | 22 | – | – |
| Change in fair value of contingent consideration, six months ended June 30GAAP | 3,439 | – | – |
| Impairment expense, six months ended June 30GAAP | 6,394 | – | – |
| Accretion of discount on issuance of Series C Preferred Stock, six months ended June 30GAAP | 9,220 | – | – |
| Total other expense, six months ended June 30GAAP | 19,075 | – | – |
| Net loss, six months ended June 30GAAP | $ (143,536) | – | – |
| Basic and diluted net loss per share, six months ended June 30GAAP | $ (2.49) | – | – |
| Weighted-average shares outstanding, basic and diluted, six months ended June 30GAAP | 57,704,321 | – | – |
Strategic Projects Update and Outlook outlook
- NoteSRC is expected to commence upgrade activity in the third quarter of 2026.
- NoteTargeting increased annual production capacity of approximately 525 tonnes of NdPr metal, 30 tonnes of dysprosium oxide and 15 tonnes of terbium oxide.
- NoteREalloys has secured supply rights to approximately 80% of the expanded facility’s output.
- NoteThe Company plans to advance separation trials using recycled mixed rare earth oxide feedstock in the second half of 2026.
- NoteTargeting separated material for potential customer qualification as early as the fourth quarter of 2026.
- NoteCommercial intake of NdPr metal and dysprosium/terbium oxides from SRC expected to commence in the third quarter of 2027.
- NoteHeavy Rare Earth Metallization Facility is targeted for commissioning in the first quarter of 2028 and initial operations in the first half of 2028.
- NoteHeavy Rare Earth Metallization Facility targeted annual capacity of approximately 50 tonnes of combined dysprosium and terbium oxide feedstock.
- NoteThe negotiation phase for the U.S. Army Enhanced Use Lease opportunity is scheduled to complete by mid-September 2026.
- NoteREalloys has committed approximately $58.3 million of capital funding for the SRC facility upgrade and Heavy Rare Earth Metallization projects through to commissioning.
- NoteThe Company believes its existing cash resources are sufficient to fund these projects without reliance on any additional financing transaction.
What drove it
- Revenue growth was driven by PMTCM’s sales of rare earth metals and materials from the Euclid facility, including under a Defense Logistics Agency contract.
- Revenue growth was also driven by subscription revenue from the Blackbox trading analytics platform prior to its deconsolidation on May 5, 2026.
- The quarterly net-loss increase was driven primarily by $32.1 million of non-cash stock-based compensation associated with director, officer, and consultant equity awards primarily granted in connection with the Company’s February 2026 transition to a Nasdaq-listed public company.
- The Company fully funded the planned SRC Rare Earth Processing Facility upgrade and the Heavy Rare Earth Metallization Facility.
- The Company was selected by the U.S. Army for exclusive negotiations toward a long-term Enhanced Use Lease at Tooele Army Depot, Utah.
- The Company entered non-binding arrangements to explore feedstock supply with U.S. Critical Materials Corp., Ramaco Resources, Inc. and Patriot Exploration & Mining.
Concerns
- Quarterly net loss was $36.8 million, compared with a net loss of $2.2 million in the prior-year quarter.
- General and administrative expense included $32.1 million of non-cash stock-based compensation, including $19.5 million related to RSU and RPSU awards and $12.6 million related to shares-for-services consulting awards.
- The six-month net loss included $113.9 million of non-cash stock-based compensation, a $9.2 million non-cash accretion charge, a $6.4 million non-cash impairment charge related to the EVTEC investment, and a $3.4 million non-cash change in the fair value of contingent consideration.
- Feedstock supply arrangements with U.S. Critical Materials Corp., Ramaco Resources, Inc. and Patriot Exploration & Mining are non-binding.
- The SRC upgrade, metallization facility timeline, commercial intake, U.S. Army lease negotiations, and capital-resource sufficiency are forward-looking statements subject to significant risks and uncertainties.
What to watch
- Commencement of SRC upgrade activity in the third quarter of 2026.
- Separation trials using recycled mixed rare earth oxide feedstock in the second half of 2026.
- Potential customer qualification of separated material as early as the fourth quarter of 2026.
- Scheduled completion by mid-September 2026 of negotiations for the U.S. Army Enhanced Use Lease opportunity.
- Expected commercial intake of NdPr metal and dysprosium/terbium oxides from SRC in the third quarter of 2027.
- Targeted commissioning of the Heavy Rare Earth Metallization Facility in the first quarter of 2028 and initial operations in the first half of 2028.
- Leadership transitions effective September 1, 2026, including Anupam Ghildyal’s transition to Chief Growth Officer and Dr. Muhammad Imran joining as Chief Operating Officer.
Balance sheet and cash flow
- Cash as of June 30, 2026: $ 122,357; December 31, 2025: $ 2,824. (In thousands)
- Total current assets as of June 30, 2026: 154,095; December 31, 2025: 38,541. (In thousands)
- Total assets as of June 30, 2026: 209,772; December 31, 2025: 93,389. (In thousands)
- Total current liabilities as of June 30, 2026: 5,023; December 31, 2025: 7,154. (In thousands)
- Total liabilities as of June 30, 2026: 19,168; December 31, 2025: 56,049. (In thousands)
- Total stockholders’ equity as of June 30, 2026: 190,604; December 31, 2025: 35,834. (In thousands)
- Working capital as of June 30, 2026: 149,072; December 31, 2025: 31,387. (In thousands)
- Accumulated deficit as of June 30, 2026: (224,661); December 31, 2025: (81,125). (In thousands)
- Net cash used in operating activities for the six months ended June 30, 2026: $ (17,720); six months ended June 30, 2025: $ (702). (In thousands)
- Net cash used in investing activities for the six months ended June 30, 2026: (8,064); six months ended June 30, 2025: (10). (In thousands)
- Net cash provided by financing activities for the six months ended June 30, 2026: 145,317; six months ended June 30, 2025: 1,077. (In thousands)
- Net change in cash and cash equivalents for the six months ended June 30, 2026: $ 119,533; six months ended June 30, 2025: $ 365. (In thousands)
- Closed a $100.0 million private placement of common stock in June 2026.
Analysis
REalloys reported $0.8 million of second-quarter net revenues, compared with $0.4 million in the second quarter of 2025. The Company attributed revenue growth to PMTCM sales of rare earth metals and materials from the Euclid facility, including under a Defense Logistics Agency contract, and to Blackbox trading analytics subscription revenue before Blackbox was deconsolidated on May 5, 2026. No segment revenue amounts, gross-profit figure, gross-margin figure, or prior-quarter revenue comparison were reported.
The GAAP loss profile was dominated by equity compensation. Net loss was $36.8 million, or $0.59 per diluted share, compared with net loss of $2.2 million, or $0.05 per diluted share, in the prior-year quarter. General and administrative expense was $36,031 in the condensed consolidated statement of operations, including $32.1 million of non-cash stock-based compensation. The Company reported Adjusted General and Administrative Expense of $3,900, excluding that non-cash stock-based compensation. For the six months ended June 30, 2026, net loss was $143.5 million and included $113.9 million of non-cash stock-based compensation, a $9.2 million non-cash accretion charge, a $6.4 million non-cash impairment charge related to the EVTEC investment, and a $3.4 million non-cash change in the fair value of contingent consideration.
Liquidity changed materially following the $100.0 million private placement of common stock closed in June 2026. Cash was $122.4 million at June 30, 2026, while net cash provided by financing activities was 145,317 for the six months ended June 30, 2026, in thousands. Net cash used in operating activities was $ (17,720) and net cash used in investing activities was (8,064) for the same six-month period, in thousands. The Company reported total assets of 209,772 and total liabilities of 19,168 as of June 30, 2026, in thousands, and described the balance sheet as virtually debt-free.
Management’s outlook is primarily project-based rather than financial. The Company has committed approximately $58.3 million to fund the SRC upgrade and Heavy Rare Earth Metallization projects through commissioning and stated that existing cash resources are sufficient without an additional financing transaction. SRC upgrade activity is expected to commence in the third quarter of 2026, with commercial intake expected to commence in the third quarter of 2027. The Heavy Rare Earth Metallization Facility is targeted for commissioning in the first quarter of 2028. The near-term operating milestones are separation trials in the second half of 2026, potential customer qualification as early as the fourth quarter of 2026, and the U.S. Army Enhanced Use Lease negotiation phase scheduled to complete by mid-September 2026.
There were no prior-quarter financial figures or previous-quarter outlook supplied for comparison. The reported quarter therefore centers on early revenue activity, equity-financed liquidity, and execution against facility, feedstock, customer-qualification, and U.S. Army negotiation milestones. The Company’s entered feedstock arrangements are non-binding, and the facility timing, commercial intake, lease negotiations, and capital sufficiency are identified by the Company as forward-looking statements subject to risks and uncertainties.
Management, verbatim
This quarter we fully funded the upgrade of the SRC Rare Earth Processing Facility and our planned Pilot and Commercial Metallization Facility, advanced our selection by the U.S. Army for exclusive Enhanced Use Lease negotiations at Tooele Army Depot, and continued to build the leadership team needed to execute our mine-to-magnet strategy. Committing the capital to fully fund the SRC upgrade and expansion, as well as our Metallization Facility, puts our flagship strategic projects on a clear path to commissioning, and reflects the same trend behind our discussions with the U.S. Army: North America’s need for secure, traceable, non-Chinese sources of rare earth and magnet materials has never been greater, and we intend to be that source.
Leonard Sternheim, Chief Executive Officer of REalloys
Rare earth magnets are foundational to the defense platforms, systems and advanced technologies that underpin the security of the United States and its allies, and we believe building a resilient, non-Chinese supply chain for these materials is one of the most consequential industrial challenges of our time. We have significantly deepened our leadership bench, adding public-company financial discipline, hands-on expertise in rare earth processing and metallization, and a sharpened focus on strategic partnerships. All this reflects the seriousness and technical depth we are bringing to this mission
Stephen S. duMont, Non-Executive Chairman of the Board of REalloys
Not in the filing
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AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.