Will Heavy Expansion Costs Slow USAR's Growth Momentum?

USA Rare Earth, Inc. USAR is still in the early phases of commercialization and continues to incur losses as it scales its operations. Though the company started generating revenues following the acquisition of Less Common Metals, higher operating expenses related to expansion, acquisitions and workforce growth are pressuring its profitability. USAR's cost of product revenues was $13 million in the first half of 2026, exceeding total revenues of $11.5 million. In the same period, its selling, general and administrative expenses surged to $53.8 million from $13.3 million in the year-ago period owing to increasing legal and consulting costs, higher headcount, recruiting fees and other growth-related expenses.