Shares of Microvast Holdings, Inc. (NASDAQ: MVST) plummeted 5.62% in Monday's trading session following the release of the company's third-quarter 2025 financial results. The electric vehicle battery maker reported mixed results, with record revenue growth offset by a surprise loss and an earnings miss that disappointed investors.

Microvast announced Q3 revenue of $123.3 million, marking a 21.6% increase year-over-year and beating analyst expectations. The company also reported an improved gross margin of 37.6%, up from 33.2% in the same quarter last year. However, these positive developments were overshadowed by a net loss of $1.5 million, compared to a net profit of $13.2 million in Q3 2024. Adjusted earnings per share came in at $0.04, falling short of the FactSet consensus estimate of $0.05.

The market's negative reaction appears to be driven primarily by the earnings miss and the swing to a net loss despite strong revenue growth. Investors seem concerned about Microvast's profitability and ability to translate top-line growth into bottom-line results. The company's shift from profit to loss year-over-year, even with significant revenue growth, raised questions about cost management and operational efficiency. While Microvast maintained its full-year 2025 revenue growth target of 18% to 25%, the earnings shortfall has clearly dampened investor sentiment, leading to the sharp decline in stock price.