MP Materials Reports Second Quarter 2026 Results

For the three months ended
June 30,

2026 vs. 2025

(in thousands, except per share data, unaudited)

2026

2025

$ Change

% Change

Financial Measures:

Revenue

$

108,490

$

57,393

$

51,097

89

%

Price protection agreement income

$

17,580

$

—

$

17,580

N/M

Net loss

$

(20,296

)

$

(30,872

)

$

10,576

34

%

Adjusted EBITDA²

$

28,493

$

(12,535

)

$

41,028

N/M

Adjusted Net Loss²

$

(2,089

)

$

(21,374

)

$

19,285

90

%

Diluted loss per common share

$

(0.11

)

$

(0.19

)

$

0.08

42

%

Adjusted Diluted EPS²

$

(0.01

)

$

(0.13

)

$

0.12

92

%

N/M = Not meaningful.

1 Includes sales volumes, revenue, and profits recognized in the Materials Segment on intercompany transactions with the Magnetics Segment.

2 See “Use of Non-GAAP Financial Measures” below for the definitions. See tables below for reconciliations of non-GAAP financial measures to their most directly comparable GAAP financial measures.

Second Quarter 2026 Segment Financial Highlights

For the three months ended
June 30,

2026 vs. 2025

(in thousands, unaudited)

2026

2025

$ Change

% Change

Segment Financials:

Revenue

Materials Segment

$

95,629

$

37,532

$

58,097

155

%

Magnetics Segment

16,524

19,861

(3,337

)

(17

)%

Intercompany eliminations⁽¹⁾

(3,663

)

—

(3,663

)

N/M

Total revenue

$

108,490

$

57,393

$

51,097

89

%

Segment Adjusted EBITDA

Materials Segment

$

32,505

$

(12,678

)

$

45,183

N/M

Magnetics Segment

7,532

8,089

(557

)

(7

)%

Total Segment Adjusted EBITDA

$

40,037

$

(4,589

)

$

44,626

N/M

Corporate and other⁽²⁾

(10,983

)

(7,946

)

(3,037

)

(38

)%

Intercompany eliminations⁽¹⁾

(561

)

—

(561

)

N/M

Adjusted EBITDA⁽³⁾

$

28,493

$

(12,535

)

$

41,028

N/M

Represents the elimination of intercompany revenues and Segment Adjusted EBITDA associated with NdPr oxide sales made by the Materials Segment to the Magnetics Segment.

Corporate and other is not considered a reportable segment, and is presented solely to reconcile the total of Segment Adjusted EBITDA to Adjusted EBITDA on a consolidated basis.

See “Use of Non-GAAP Financial Measures” below for definition. See table below for a reconciliation of Adjusted EBITDA to its most directly comparable GAAP financial measure, net income or loss.

Second Quarter 2026 Materials Segment Financial and Operational Results

For the three months ended
June 30,

2026 vs. 2025

(unaudited)

2026

2025

Amount Change

% Change

Revenue:

(in thousands)

NdPr oxide and metal

$

94,434

$

25,045

$

69,389

277

%

Rare earth concentrate

—

11,877

(11,877

)

N/M

Other revenue

1,195

610

585

96

%

Total Materials Segment revenue

$

95,629

$

37,532

$

58,097

155

%

Price protection agreement income

$

17,580

$

—

$

17,580

N/M

Segment Adjusted EBITDA⁽¹⁾

$

32,505

$

(12,678

)

$

45,183

N/M

Key Performance Indicators⁽²⁾:

(in whole units)

Separated NdPr products

NdPr Production Volume (MTs)

840

597

243

41

%

NdPr Sales Volume (MTs)

1,006

443

563

127

%

Rare earth concentrate

REO Production Volume (MTs)

11,072

13,145

(2,073

)

(16

)%

See “Segment Information” below for further information.

See “Key Performance Indicators” below for definitions and further information.

Second Quarter 2026 Magnetics Segment Financial Results

For the three months ended
June 30,

2026 vs. 2025

(in thousands, unaudited)

2026

2025

$ Change

% Change

Magnetic precursor products revenue

$

16,524

$

19,861

$

(3,337

)

(17

)%

Segment Adjusted EBITDA⁽¹⁾

$

7,532

$

8,089

$

(557

)

(7

)%

See “Segment Information” below for further information.

MP MATERIALS CORP. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

June 30, 2026

December 31, 2025

(U.S. dollars in thousands, except share and per share data, unaudited)

Assets

Current assets

Cash and cash equivalents

$

429,075

$

1,166,011

Short-term investments

1,023,564

664,275

Total cash, cash equivalents and short-term investments

1,452,639

1,830,286

Trade accounts receivable

40,436

14,642

Other receivables

56,281

132,042

Inventories

173,428

171,560

Prepaid expenses and other current assets

22,624

17,271

Total current assets

1,745,408

2,165,801

Non-current assets

Property, plant and equipment, net

1,608,625

1,369,817

Inventories

106,082

80,539

Price protection agreement upfront asset, net

187,544

209,668

Other non-current assets

79,081

38,335

Total non-current assets

1,981,332

1,698,359

Total assets

$

3,726,740

$

3,864,160

Liabilities, redeemable preferred stock and stockholders’ equity

Current liabilities

Accounts and construction payable

$

46,024

$

36,655

Accrued liabilities

60,329

95,086

Current portion of long-term debt

—

67,411

Deferred revenue

45,547

74,301

Other current liabilities

31,638

25,596

Total current liabilities

183,538

299,049

Non-current liabilities

Long-term debt, net of current portion

934,583

931,330

Deferred revenue

80,861

83,889

Deferred government grant

26,134

22,101

Deferred investment tax credit

35,285

26,860

Deferred income taxes

27,021

51,558

Other non-current liabilities

68,371

57,005

Total non-current liabilities

1,172,255

1,172,743

Total liabilities

1,355,793

1,471,792

Commitments and contingencies

Redeemable preferred stock:

Series A cumulative perpetual convertible preferred stock ($0.0001 par value, 400,000 shares authorized, issued and outstanding as of June 30, 2026, and December 31, 2025, respectively; aggregate liquidation preference of $428,088 and $413,489 as of June 30, 2026 and December 31, 2025, respectively)

413,611

413,611

Stockholders’ equity:

Preferred stock, undesignated ($0.0001 par value, 49,600,000 shares authorized as of June 30, 2026, and December 31, 2025, respectively, zero issued and outstanding in either period)

—

—

Common stock ($0.0001 par value, 450,000,000 shares authorized, 193,301,058 and 192,607,429 shares issued, and 178,051,276 and 177,357,647 shares outstanding, as of June 30, 2026, and December 31, 2025, respectively)

19

19

Additional paid-in capital

1,978,458

1,970,970

Retained earnings

206,164

234,428

Accumulated other comprehensive income (loss)

(258

)

387

Treasury stock, at cost, 15,249,782 shares for both periods

(227,047

)

(227,047

)

Total stockholders’ equity

1,957,336

1,978,757

Total liabilities, redeemable preferred stock and stockholders’ equity

$

3,726,740

$

3,864,160

MP MATERIALS CORP. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(U.S. dollars in thousands, except share and per share data, unaudited)

For the three months
ended June 30,

For the six months
ended June 30,

2026

2025

2026

2025

Revenue

$

108,490

$

57,393

$

199,139

$

118,203

Price protection agreement income

17,580

—

59,853

—

Operating costs and expenses:

Cost of sales (excluding depreciation, depletion and amortization)

72,292

50,431

146,537

99,262

Selling, general and administrative

35,164

27,429

68,804

51,595

Depreciation, depletion and amortization

35,379

20,777

67,516

42,161

Start-up costs

14,428

761

20,317

1,737

Advanced projects and development

1,283

2,496

3,188

2,970

Other operating costs and expenses (income), net

(447

)

(619

)

8,781

(862

)

Total operating costs and expenses, net

158,099

101,275

315,143

196,863

Operating loss

(32,029

)

(43,882

)

(56,151

)

(78,660

)

Interest expense, net

(9,703

)

(5,414

)

(19,549

)

(13,029

)

Other income, net

12,397

6,572

32,723

21,790

Loss before income taxes

(29,335

)

(42,724

)

(42,977

)

(69,899

)

Income tax benefit

9,039

11,852

14,713

16,379

Net loss

$

(20,296

)

$

(30,872

)

$

(28,264

)

$

(53,520

)

Loss per common share:

Basic

$

(0.11

)

$

(0.19

)

$

(0.16

)

$

(0.33

)

Diluted

$

(0.11

)

$

(0.19

)

$

(0.16

)

$

(0.33

)

Weighted-average shares outstanding:

Basic

178,409,085

163,834,693

178,215,393

163,799,713

Diluted

178,409,085

163,834,693

178,215,393

163,799,713

MP MATERIALS CORP. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

For the six months ended
June 30,

(U.S. dollars in thousands, unaudited)

2026

2025

Operating activities:

Net loss

$

(28,264

)

$

(53,520

)

Adjustments to reconcile net loss to net cash provided by (used in) operating activities:

Depreciation, depletion and amortization

67,516

42,161

Accretion of discount on short-term investments

(12,956

)

(11,462

)

Stock-based compensation expense

24,217

12,905

Amortization of debt discount and debt issuance costs

3,621

2,074

Lower of cost or net realizable value reserve

—

6,736

Deferred income taxes

(13,444

)

(17,936

)

Other

154

(5,919

)

Decrease (increase) in operating assets:

Trade accounts receivable

(25,794

)

(2,686

)

Other receivables

58,677

(10,951

)

Inventories

(20,809

)

(52,441

)

Prepaid expenses, other current and non-current assets

(13,694

)

(4,481

)

Increase (decrease) in operating liabilities:

Accounts payable and accrued liabilities

(4,108

)

1,201

Deferred revenue

(33,872

)

24,948

Deferred government grant

5,857

3,313

Other current and non-current liabilities

(2,162

)

(795

)

Net cash provided by (used in) operating activities

4,939

(66,853

)

Investing activities:

Additions to property, plant and equipment

(307,711

)

(59,473

)

Purchases of short-term investments

(1,236,482

)

(683,815

)

Proceeds from sales of short-term investments

15,840

80,387

Proceeds from maturities of short-term investments

873,593

690,942

Proceeds from return of investment in equity method investee

—

9,673

Proceeds from sale of property, plant and equipment

—

4,063

Proceeds from government awards used for construction

—

12,200

Net cash provided by (used in) investing activities

(654,760

)

53,977

Financing activities:

Payments to retire long-term debt

(67,499

)

—

Principal payments on debt obligations

(2,177

)

(3,857

)

Tax withholding on stock-based awards

(18,246

)

(3,877

)

Net cash used in financing activities

(87,922

)

(7,734

)

Net change in cash, cash equivalents and restricted cash

(737,743

)

(20,610

)

Cash, cash equivalents and restricted cash beginning balance

1,167,359

283,603

Cash, cash equivalents and restricted cash ending balance

$

429,616

$

262,993

Reconciliation of cash, cash equivalents and restricted cash:

Cash and cash equivalents

$

429,075

$

261,535

Restricted cash, current

541

918

Restricted cash, non-current

—

540

Total cash, cash equivalents and restricted cash

$

429,616

$

262,993

Reconciliation of GAAP Net Loss to

Non-GAAP Adjusted EBITDA

For the three months
ended June 30,

For the six months
ended June 30,

(in thousands, unaudited)

2026

2025

2026

2025

Net loss

$

(20,296

)

$

(30,872

)

$

(28,264

)

$

(53,520

)

Adjusted for:

Depreciation, depletion and amortization

35,379

20,777

67,516

42,161

Interest expense, net

9,703

5,414

19,549

13,029

Income tax benefit

(9,039

)

(11,852

)

(14,713

)

(16,379

)

Stock-based compensation expense⁽¹⁾

11,287

5,427

24,154

12,780

Initial start-up costs⁽²⁾

13,588

634

18,441

1,406

Transaction-related and other costs⁽³⁾

(285

)

5,128

10,204

7,944

Accretion of asset retirement and environmental obligations⁽⁴⁾

385

372

771

745

Loss (gain) on disposals of long-lived assets, net⁽⁴⁾

168

(991

)

168

(1,607

)

Other income, net⁽⁵⁾

(12,397

)

(6,572

)

(32,723

)

(21,790

)

Adjusted EBITDA

$

28,493

$

(12,535

)

$

65,103

$

(15,231

)

Principally included in “Selling, general and administrative” within our unaudited Condensed Consolidated Statements of Operations.

Included in “Start-up costs” within our unaudited Condensed Consolidated Statements of Operations and excludes any applicable stock-based compensation, which is included in the “Stock-based compensation expense” line above. Primarily relates to certain costs incurred in connection with the commissioning and starting up of our initial magnet-making capabilities at the Independence Facility prior to the achievement of commercial production.

Pertains to legal, consulting, and advisory services, and other costs associated with specific matters or transactions, including litigation matters, potential acquisitions, mergers, or other investments. For the three and six months ended June 30, 2026, amount is principally included in “Other operating costs and expenses (income), net” within our unaudited Condensed Consolidated Statements of Operations. The six months ended June 30, 2026, includes $8.8 million related to the settlement of a construction-related litigation matter. For the three and six months ended June 30, 2025, amount is principally included in “Selling, general and administrative” within our unaudited Condensed Consolidated Statements of Operations. The three and six months ended June 30, 2025, includes $1.8 million of transaction costs to establish our partnership with the DoW.

Included in “Other operating costs and expenses (income), net” within our unaudited Condensed Consolidated Statements of Operations.

Principally comprised of interest and investment income.

Reconciliation of GAAP Net Loss to

Non-GAAP Adjusted Net Income (Loss)

For the three months
ended June 30,

For the six months
ended June 30,

(in thousands, unaudited)

2026

2025

2026

2025

Net loss

$

(20,296

)

$

(30,872

)

$

(28,264

)

$

(53,520

)

Adjusted for:

Stock-based compensation expense⁽¹⁾

11,287

5,427

24,154

12,780

Initial start-up costs⁽²⁾

13,588

634

18,441

1,406

Transaction-related and other costs⁽³⁾

(285

)

5,128

10,204

7,944

Loss (gain) on disposals of long-lived assets, net⁽⁴⁾

168

(991

)

168

(1,607

)

Change in fair value of derivative instrument⁽⁵⁾

1,223

2,529

(2,875

)

(4,468

)

Tax impact of adjustments above⁽⁶⁾

(7,774

)

(3,229

)

(17,265

)

(3,807

)

Adjusted Net Income (Loss)

$

(2,089

)

$

(21,374

)

$

4,563

$

(41,272

)

Principally included in “Selling, general and administrative” within our unaudited Condensed Consolidated Statements of Operations.

Included in “Start-up costs” within our unaudited Condensed Consolidated Statements of Operations and excludes any applicable stock-based compensation, which is included in the “Stock-based compensation expense” line above. Primarily relates to certain costs incurred in connection with the commissioning and starting up of our initial magnet-making capabilities at the Independence Facility prior to the achievement of commercial production.

Pertains to legal, consulting, and advisory services, and other costs associated with specific matters or transactions, including litigation matters, potential acquisitions, mergers, or other investments. For the three and six months ended June 30, 2026, amount is principally included in “Other operating costs and expenses (income), net” within our unaudited Condensed Consolidated Statements of Operations. The six months ended June 30, 2026, includes $8.8 million related to the settlement of a construction-related litigation matter. For the three and six months ended June 30, 2025, amount is principally included in “Selling, general and administrative” within our unaudited Condensed Consolidated Statements of Operations. The three and six months ended June 30, 2025, includes $1.8 million of transaction costs to establish our partnership with the DoW.

Included in “Other operating costs and expenses (income), net” within our unaudited Condensed Consolidated Statements of Operations.

Included in “Other income, net” within our unaudited Condensed Consolidated Statements of Operations.

Tax impact of adjustments is calculated using an adjusted effective tax rate, which excludes the impact of discrete tax costs and benefits, applied to each adjustment. The adjusted effective tax rates were 29.9%, 34.5%, 25.4% and 23.7% for the three and six months ended June 30, 2026 and 2025, respectively.

MP MATERIALS CORP. AND SUBSIDIARIES

Reconciliation of GAAP Diluted Loss per Common Share to

Non-GAAP Adjusted Diluted EPS

For the three months
ended June 30,

For the six months
ended June 30,

(unaudited)

2026

2025

2026

2025

Diluted loss per common share

$

(0.11

)

$

(0.19

)

$

(0.16

)

$

(0.33

)

Adjusted for:

Stock-based compensation expense

0.06

0.04

0.13

0.08

Initial start-up costs

0.08

—

0.10

0.01

Transaction-related and other costs

—

0.03

0.05

0.05

Loss (gain) on disposals of long-lived assets, net

—

(0.01

)

—

(0.01

)

Change in fair value of derivative instrument

0.01

0.02

(0.01

)

(0.03

)

Tax impact of adjustments above⁽¹⁾

(0.05

)

(0.02

)

(0.09

)

(0.02

)

Adjusted Diluted EPS

$

(0.01

)

$

(0.13

)

$

0.02

$

(0.25

)

Diluted weighted-average shares outstanding

178,409,085

163,834,693

178,215,393

163,799,713

Assumed conversion of Series A Preferred Stock⁽²⁾

—

—

13,320,013

—

Assumed conversion of Warrant⁽²⁾

—

—

5,625,340

—

Assumed conversion of 2026 Notes⁽²⁾

—

—

201,759

—

Assumed conversion of restricted stock units⁽²⁾

—

—

1,034,255

—

Assumed conversion of performance stock units⁽²⁾

—

—

513,241

—

Adjusted diluted weighted-average shares outstanding

178,409,085

163,834,693

198,910,001

163,799,713

Tax impact of adjustments is calculated using an adjusted effective tax rate, which excludes the impact of discrete tax costs and benefits, applied to each adjustment. The adjusted effective tax rates were 29.9%, 34.5%, 25.4% and 23.7% for the three and six months ended June 30, 2026 and 2025, respectively.

For the six months ended June 30, 2026, these shares were antidilutive for GAAP purposes. For purposes of calculating Adjusted Diluted EPS, we have added back the assumed conversion of these shares since they would not be antidilutive when using Adjusted Net Income as the numerator in the calculation of Adjusted Diluted EPS.