Second Quarter 2026
Filed Aug 6, 2026MP Materials reported second-quarter revenue of $108,490 (in thousands), price protection agreement income of $17,580 (in thousands), and Adjusted EBITDA of $28,493 (in thousands), while NdPr production rose 41% year over year.
Revenue increased 89% year over year, Adjusted EBITDA improved to $28,493 (in thousands) from $(12,535) (in thousands), and NdPr sales volume increased 127% year over year. Net loss remained $(20,296) (in thousands), while Magnetics Segment revenue declined 17% year over year and start-up costs increased.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| RevenueGAAP | $108,490 | – | 89% |
| Price protection agreement incomeGAAP | $17,580 | – | N/M |
| Net lossGAAP | $(20,296) | – | 34% |
| Adjusted EBITDAnon-GAAP | $28,493 | – | N/M |
| Adjusted Net Lossnon-GAAP | $(2,089) | – | 90% |
| Basic loss per common shareGAAP | $(0.11) | – | – |
| Diluted loss per common shareGAAP | $(0.11) | – | 42% |
| Adjusted Diluted EPSnon-GAAP | $(0.01) | – | 92% |
| Cost of sales (excluding depreciation, depletion and amortization)GAAP | $72,292 | – | – |
| Selling, general and administrativeGAAP | $35,164 | – | – |
| Depreciation, depletion and amortizationGAAP | $35,379 | – | – |
| Start-up costsGAAP | $14,428 | – | – |
| Advanced projects and developmentGAAP | $1,283 | – | – |
| Other operating costs and expenses (income), netGAAP | $(447) | – | – |
| Total operating costs and expenses, netGAAP | $158,099 | – | – |
| Operating lossGAAP | $(32,029) | – | – |
| Interest expense, netGAAP | $(9,703) | – | – |
| Other income, netGAAP | $12,397 | – | – |
| Loss before income taxesGAAP | $(29,335) | – | – |
| Income tax benefitGAAP | $9,039 | – | – |
| Revenue, six months ended June 30GAAP | $199,139 | – | – |
| Price protection agreement income, six months ended June 30GAAP | $59,853 | – | – |
| Operating loss, six months ended June 30GAAP | $(56,151) | – | – |
| Net loss, six months ended June 30GAAP | $(28,264) | – | – |
| Diluted loss per common share, six months ended June 30GAAP | $(0.16) | – | – |
| NdPr Production Volumeother | 840 MTs | – | 41% |
| NdPr Sales Volumeother | 1,006 MTs | – | 127% |
| REO Production Volumeother | 11,072 MTs | – | (16)% |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Materials SegmentNdPr oxide and metal revenue increased 277% to $94,434, while rare earth concentrate revenue was — following the cessation of concentrate sales beginning in July 2025. | $95,629 | – | 155% |
| Magnetics SegmentMagnetic precursor products revenue declined to $16,524 due to the start-up of magnetics production at Independence. | $16,524 | – | (17)% |
What drove it
- Consolidated revenue growth was driven by higher sales of NdPr oxide and metal and stronger market pricing.
- Materials Segment generated $17,580 of price protection agreement income.
- NdPr sales volume increased 127% year over year to 1,006 MTs.
- The Company signed a significant long-term agreement to supply separated gadolinium to a new U.S. aerospace and defense customer.
- Magnet qualification at Independence advanced through additional deliveries for customer qualification and regulatory testing.
- The Company launched Project Swarm and executed subscription agreements with multiple leading U.S. and allied customers.
Concerns
- Net loss was $(20,296).
- Magnetics Segment revenue decreased 17% year over year to $16,524.
- REO Production Volume decreased 16% year over year to 11,072 MTs.
- Start-up costs increased to $14,428 from $761 due to ramp-up activities for initial magnet production ahead of commercial production.
- Interest expense, net increased to $(9,703) from $(5,414), mainly due to the July 2025 Department of War loan supporting the buildout of samarium oxide production.
- Cash and cash equivalents declined to $429,075 from $1,166,011.
What to watch
- NdPr production and sales-volume ramp.
- The timing of commercial magnet production at Independence.
- Additional deliveries supporting customer qualification and regulatory testing.
- Construction progress for the 10X facility.
- Execution of the separated gadolinium offtake agreement and expansion of the heavy rare earth product portfolio.
- The effect of price protection agreement income and amortization of the price protection agreement upfront asset.
Balance sheet and cash flow
- Cash and cash equivalents were $429,075 as of June 30, 2026, compared with $1,166,011 as of December 31, 2025.
- Short-term investments were $1,023,564 as of June 30, 2026, compared with $664,275 as of December 31, 2025.
- Total cash, cash equivalents and short-term investments were $1,452,639 as of June 30, 2026, compared with $1,830,286 as of December 31, 2025.
- Property, plant and equipment, net was $1,608,625 as of June 30, 2026, compared with $1,369,817 as of December 31, 2025.
- Current portion of long-term debt was — as of June 30, 2026, compared with $67,411 as of December 31, 2025.
- Long-term debt, net of current portion was $934,583 as of June 30, 2026, compared with $931,330 as of December 31, 2025.
- Net loss for the six months ended June 30, 2026 was $(28,264), compared with $(53,520) for the six months ended June 30, 2025.
Analysis
MP Materials delivered a substantial year-over-year improvement in the second quarter. Revenue increased 89% to $108,490 (in thousands), while price protection agreement income was $17,580 (in thousands). Adjusted EBITDA improved to $28,493 (in thousands) from $(12,535) (in thousands), and Adjusted Net Loss improved to $(2,089) (in thousands) from $(21,374) (in thousands). The GAAP net loss also narrowed to $(20,296) (in thousands) from $(30,872) (in thousands).
Management, verbatim
MP Materials built on its strong start to the year, ramping NdPr production and sales volumes while generating solid Adjusted EBITDA.
James Litinsky, Founder, Chairman and CEO of MP Materials
We also signed a significant long-term agreement to supply gadolinium to a new U.S. aerospace and defense customer at attractive economics, expanding both our customer base and our heavy rare earth product portfolio.
James Litinsky, Founder, Chairman and CEO of MP Materials
As we expand our commercial relationships, scale domestic manufacturing capacity, and deepen our vertical integration, we are strengthening MP's competitive position and building a differentiated industrial platform that we believe will drive long-term shareholder value.
James Litinsky, Founder, Chairman and CEO of MP Materials
Not in the filing
stated, not guessed- Forward financial guidance
- Previous-release outlook for comparison with actual results
- Gross margin
- Gross profit
- Operating cash flow result
- Free cash flow
- Capital expenditure result
- Share repurchases
- Dividends
- Prior-quarter comparisons for reported quarterly metrics
- Full cash-flow statement was not included in the supplied filing text
- CFO commentary
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.