USA Rare Earth Inc. (USAR) saw its stock price plummet 6.45% in after-hours trading on Thursday, following the release of disappointing third-quarter financial results and amid ongoing volatility in the rare earth sector. The significant drop comes as investors grapple with the company's wider-than-expected losses and broader market uncertainties affecting rare earth stocks.

USA Rare Earth reported a staggering net loss of $156.7 million for the third quarter of 2025, a dramatic increase from the $1.9 million loss in the same period last year. The company's adjusted earnings per share (EPS) came in at $(0.25), significantly missing the analyst consensus estimate of $(0.10). This represents a 155.1% negative surprise and a 733.33% decrease compared to the $(0.03) per share loss reported in the previous year.

The sharp decline in USA Rare Earth's stock price is part of a broader trend of volatility that has plagued rare earth stocks in recent weeks. Threats of Chinese export controls, ongoing trade negotiations, and geopolitical tensions have contributed to substantial price swings in the sector. Despite the recent setback, industry experts note that the long-term outlook for domestic rare earth producers remains positive, supported by U.S. government efforts to reduce dependence on Chinese supplies. As the market awaits more clarity on trade policies and corporate performance, USA Rare Earth investors may need to brace for further fluctuations in the coming days.