REalloys Inc. (ALOY) Q2 2026 Earnings: Revenue $804K (+82.7%)
ALOY — Q2 2026 Financial Report Analysis
Q2 · Fiscal year 2026 · Published by Pham Hop
Rare earth developer REalloys (formerly Blackboxstocks) posted $0.8M revenue and a $36.8M net loss, mostly stock awards, but ended Q2 with $122.4M cash after a $100M placement to fund its SRC processing projects.
Revenue
$804K
+82.7% YoY
Net income
-$37M
Diluted EPS
$-0.59
This period vs a year ago
Same period last year
This period
Revenue▲+82.7%
≈$440K
$804K
Year-ago figures (≈) are worked out from the growth rate the company reported. Each row has its own scale.
Overview
REalloys Inc. is not the company that used to trade under this Nasdaq listing. Until February 24, 2026 the shell was Blackboxstocks, a retail trading-analytics app; on that date privately held REalloys merged into it in a reverse recapitalization (an accounting treatment where the private company is treated as the buyer, so the financial history shown is REalloys', not Blackbox's), renamed it and began trading as ALOY on February 25. On May 5 the old Blackbox app business was handed back to its former CEO and deconsolidated. What remains is a development-stage rare earth company: an exploration property in Saskatchewan (Hoidas Lake), a small metals plant in Euclid, Ohio that makes rare earth metals and magnet alloys for the U.S. Defense Logistics Agency and the Department of Energy's Ames lab, and funding agreements with the Saskatchewan Research Council (SRC) to expand a separation plant and build a heavy rare earth metallization facility.
The second quarter of 2026 (ended June 30) therefore reads less like an operating report and more like a funding-and-construction update. Revenue was $0.8 million. The $36.8 million net loss was almost entirely non-cash stock awards. The number that actually moved the company's prospects is cash: $122.4 million at quarter-end after a $100 million private placement in June, against $2.8 million at the end of 2025.
At a glance
$122.4 million in cash, no meaningful debt. Up from $2.8 million at December 31, raised through a $50 million public offering in March and a $100 million private placement in June. This is what pays for the SRC projects.
$32.1 million of the $36.0 million in general and administrative costs was stock-based compensation (pay in shares rather than cash). Strip it out and cash G&A was about $3.9 million, per the company.
$0.8 million of revenue (+82.7% year on year) from the Euclid plant plus 56 days of the now-departed Blackbox app. The business that will matter, separated rare earth metal from SRC, is not expected to deliver until Q3 2027.
Key metrics
Metric
Q2 2026
Q2 2025
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YoY Change
Net revenues
$0.80M
$0.44M
+82.7%
Gross margin
59.1%
50.2%
+8.9 pts
General & administrative
$36.0M
$1.1M
+3,312%
of which stock-based compensation
$32.1M
—
n/m
Loss from operations
-$36.8M
-$0.9M
n/m
Net loss
-$36.8M
-$2.2M
n/m
Net loss per share (basic and diluted)
-$0.59
-$0.05
n/m
Operating cash flow (quarter)
-$8.2M
-$0.4M
n/m
Cash at period end
$122.4M
$0.5M
n/m
Weighted-average shares
62.1M
41.3M
+50.5%
n/m = not meaningful: percentage changes on a loss that grew from near zero, or on a cash balance that was almost empty a year ago, say nothing useful. Operating margin is likewise not meaningful here: the operating loss was about 46 times revenue.
Takeaway: Judge ALOY on its cash and its construction timeline, not its income statement. It now holds $122.4 million against roughly $58.3 million it has committed to the SRC separation-plant upgrade and metallization facility through 2028, which covers the funded projects on paper. But no meaningful revenue is expected before SRC material starts arriving in Q3 2027, and the much larger "Phase 2" plant will need capital the company says is "materially in excess" of what it has.
What the business actually is right now
REalloys calls its plan "mine-to-magnet": dig rare earths up, separate them into individual oxides, turn those into metal, and make alloys for the permanent magnets used in missiles, EV motors, wind turbines and robots. Today it does only a small slice of that:
Euclid, Ohio (PMT Critical Metals, bought March 31, 2025) is the only revenue source going forward. The 10-Q says its contracts are "short term in nature, often less than six months" and include a Defense Logistics Agency contract awarded March 2, 2026. The company has paused its plan to expand Euclid's magnet-material capacity, which had been estimated to reach 1,000 tonnes a year by Q2 2027, "while we evaluate other opportunities."
SRC in Saskatoon is the near-term growth plan. REalloys is paying to upgrade SRC's Rare Earth Processing Facility to about 525 tonnes a year of NdPr (neodymium-praseodymium) metal, 30 tonnes of dysprosium oxide and 15 tonnes of terbium oxide, and has rights to about 80% of that output on a cost-plus basis. It is also funding a heavy rare earth metallization facility (about 50 tonnes a year of dysprosium/terbium oxide feed), targeted for commissioning in Q1 2028. Dysprosium and terbium are the "heavy" rare earths that keep magnets working at high temperature, and the 10-Q says separation capacity for them outside China is "effectively negligible."
Hoidas Lake, Saskatchewan is an exploration-stage deposit carried at $50.5 million (about a quarter of total assets). No mineral reserves have been established.
Paper pipeline: a binding offtake for 15% of Phase 1 output from Critical Metals Corp.'s Tanbreez project in Greenland (not yet in production; nothing delivered), non-binding feedstock arrangements with U.S. Critical Materials, Ramaco Resources and Patriot Exploration & Mining, a non-binding $200 million Export-Import Bank letter of interest open through October 14, 2026, and selection for exclusive negotiations on a U.S. Army lease at Tooele Army Depot, Utah. The 10-Q stresses that none of the non-binding items had any financial effect.
The demand argument is policy-driven: from January 1, 2027, the U.S. Department of Defense may not buy covered magnets containing rare earths from adversarial nations (Section 857 of the FY2023 defense authorization act). The 10-Q itself says winning qualification and contracts before that date "remains subject to significant uncertainty."
Revenue and costs
Revenue of $804 thousand was up from $440 thousand, which the company attributes to Euclid sales under the DLA and Ames contracts plus Blackbox app subscriptions for the 56 days before May 5. The 10-Q doesn't split revenue between the two, so the underlying growth of the rare earth business alone can't be measured. Gross margin (revenue left after the direct cost of producing it) rose to 59.1% from 50.2%, but on less than $1 million of sales this tells you little about future plant economics.
G&A of $36.0 million breaks down as $19.5 million of restricted and performance stock units for directors and executives, $12.6 million of shares-for-services consulting awards, and about $3.9 million of cash costs (professional fees, legal, audit). Advertising and marketing was another $1.3 million, which the company says went to "increasing retail investor awareness" after the listing and won't continue at this level.
What the headline numbers hide
The loss is mostly non-cash, but the dilution is real. Stock-based compensation was $32.1 million in Q2 and $113.9 million in the first half. It doesn't use cash, but it is paid in shares: shares outstanding rose from 49.3 million at December 31 to 68.8 million at June 30 (about 40% more in six months) through awards, the two offerings and conversions. A further $16.1 million of prepaid shares-for-services consulting is still on the balance sheet and will be expensed in coming quarters.
Cash burn excluding project spending is about $5 million a quarter. Operating cash outflow was $8.2 million in Q2. The MD&A attributes about $3.0 million of that to SRC deposits and pilot costs and about $4.8 million to running the newly public company. Investing outflow added $7.5 million, mostly SRC deposits for the metallization facility.
The first half had several merger one-offs that won't recur: a $9.2 million accretion charge on converting Series C preferred stock, a $6.4 million write-down of the EVTEC stake inherited from Blackbox (carried at $8.4 million, marked to about $2.0 million), and a $3.4 million fair-value change on contingent consideration. None hit Q2 itself; Q2 "other expense" was only $14 thousand.
Year-ago comparisons are distorted. Q2 2025 was private REalloys plus Euclid only; Q2 2026 includes listing costs and part of the Blackbox app. The company itself says the 3,312% G&A increase "principally reflect[s] the change in the level of activity."
Governance and controls deserve attention. Disclosure controls were judged not effective at June 30, with three material weaknesses (too few staff with U.S. GAAP/SEC experience, poor segregation of duties, no formal period-end close). The CFO changed on June 24; the new CFO serves as a contractor. After the May 5 transactions, CEO Leonard Sternheim controls "a substantial majority" of the voting power through super-voting Series A preferred stock, making ALOY a Nasdaq "controlled company."
The going-concern question was resolved by raising money, not by operations. Management concluded there is no substantial doubt about the company's ability to keep operating, but the analysis treats SRC spending as discretionary and excludes it from baseline obligations.
Outlook
There is no revenue or earnings guidance. The milestones management gives:
SRC upgrade work starting Q3 2026; separation trials using recycled feedstock in H2 2026, with material for customer qualification "as early as Q4 2026."
Commercial intake of NdPr metal and dysprosium/terbium oxides from SRC from Q3 2027.
Heavy rare earth metallization facility commissioning in Q1 2028, initial operations in H1 2028.
Phase 2 integrated separation and metallization plant (design targets of about 3,000 tonnes a year of NdPr metal, 200 tonnes of dysprosium and 45 tonnes of terbium) by no later than 2030, with capital "materially in excess of our current cash resources" and feedstock not yet secured.
Our read: the June raise moved ALOY from a company that might not survive the year to one that can pay for its committed SRC projects, which is a real change. Everything else is still ahead of it. For the next few quarters, the things to watch are cash rather than earnings: whether quarterly operating burn outside SRC stays near $5 million, whether the Tooele lease and the EXIM loan become binding, whether any of the non-binding feedstock arrangements become contracts, and whether SRC hits its Q4 2026 qualification-material target. Expect large stock-compensation charges and more share issuance to continue. With revenue under $1 million a quarter and the Euclid expansion paused, the income statement will tell you little until SRC material arrives in late 2027.