C

USA Rare Earth, Inc. — Earnings Quality Grade C

USAR · Basic Materials

Some red flags

Revenue
$2M
2025
Net Income
-$298M
2025
Gross Margin
11.9%
Free Cash Flow
-$86M
01

Screening Summary

3
Passed
5
Watch
1
Failed
M-Score

Management Signals

No recent CEO, CFO, board, or accounting leadership signals found in SEC 8-K filings.
02

Financial Trends

Revenue & Net Income ($B)

Margins (%)

03

18-Point Screening

01

Revenue Quality

A1DSO Change

Insufficient data

A2AR vs Revenue Growth

Insufficient data

A3Revenue vs CFFO

Insufficient data

02

Expense Quality

B1Inventory vs COGS

Insufficient data

B2CapEx vs Revenue

Insufficient data

!
B3SG&A Ratio

SG&A/Gross Profit = 22120.5%, exceeds 70%

B4Gross Margin

Insufficient data

03

Cash Flow Quality

!
C1CFFO vs Net Income

CFFO/NI = 0.16. Below 1.0

!
C2Free Cash Flow

FCF is negative ($-0.1B)

C3Accruals Ratio

Accruals ratio = -35.8%. Low accruals

C4Cash vs Debt

Cash $0.4B covers debt $0.0B

04

Balance Sheet Health

!
D1Goodwill + Intangibles

Goodwill+Intangibles $0.2B = 41% of equity

!
D2Leverage

Interest coverage = -428.1x (<2x). Financial stress

D3Soft Asset Growth

Insufficient data

D4Asset Impairment

Write-offs normal

05

Acquisition Risk

E1Serial Acquirer FCF

FCF after acquisitions negative for 3 years

E2Goodwill Surge

Insufficient data

06

Manipulation Score

F1Beneish M-Score

Calculation error: float division by zero

Portfolio monitoring

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05

Altman Z-Score

1.15
Grey Zone
0 Distress1.102.605.0+ Safe
0.4999
Liquidity
-0.5574
Cumulative profit
-0.4296
Operating efficiency
2.4544
Leverage

Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-25