Shares of The Metals Company (TMC) tumbled 6.10% on Thursday following the release of its second quarter 2025 financial results, which fell significantly short of analyst expectations.

The deep-sea mining company reported a net loss of $74.3 million for the quarter ended June 30, 2025, substantially wider than the $20.2 million loss reported in the same period last year. Earnings per share came in at -$0.20, missing the analyst consensus estimate of -$0.05 by a wide margin. The company's operating loss also increased to $22 million, up from $20.3 million in Q2 2024.

TMC Chairman and CEO Gerard Barron attempted to highlight positive developments, including a strategic investment from Korea Zinc and progress on regulatory approvals. However, investors seemed to focus on the disappointing financial performance. The sharp decline compounds an earlier drop of 3.14% immediately following the earnings release.

The expanded loss was primarily attributed to two factors: 1. A non-recurring charge of $33 million for the fair value of warrants issued to the Republic of Nauru 2. A $16.2 million charge due to an increase in the fair value of warrant liability, reflecting a significant rise in share price during the quarter

Despite reporting a cash position of $115.8 million, which the company believes is sufficient for at least the next twelve months of operations, the wider-than-expected loss has clearly shaken investor confidence in the near term. The Metals Company's shares had gained 385.7% year-to-date prior to this earnings release, potentially setting the stage for a significant pullback on disappointing results.