Shares of Kodiak Robotics (KDK), a leader in autonomous trucking technology, plunged 10% in pre-market trading on Thursday following the release of its disappointing third-quarter 2025 financial results. The significant drop comes as investors digest the company's wider-than-expected losses and revenue shortfall, raising concerns about its path to profitability in the competitive self-driving vehicle sector.

Kodiak, which completed its SPAC merger in September, reported a staggering quarterly loss of $3.89 per share, far exceeding analyst expectations of a $0.16 loss. Revenue for the quarter came in at a mere $770,000, falling dramatically short of Wall Street forecasts. The company's net loss expanded to $269.9 million, compared to $19.1 million in the same period last year. While some of this loss was attributed to one-time merger-related charges, the adjusted loss of about $34 million still raised eyebrows among investors.

Despite the financial setbacks, Kodiak reported some operational progress, including the deployment of 10 fully driverless trucks and over 5,200 hours of paid driverless operations. However, investors seem more focused on the company's substantial cash burn rate, estimated at $35 million to $40 million per quarter. With a current cash balance of $146 million, analysts suggest the company has about 12 months of funding at the current burn rate, prompting questions about future capital needs. As Kodiak aims to deploy 100 autonomous trucks and launch long-haul driverless operations in the second half of 2026, the market appears to be reassessing the company's near-term financial prospects and its ability to monetize its technology at scale.